ECR/V360 Shopper Symposium Series - April to August 2018
Second shopping symposium - 22 June 2018
‘DRIVING GROWTH THROUGH 3-WAY INSIGHT’
V360°, in conjunction with ECR, ran the 2nd of their 2018 Shopper Symposium Series ‘Preparing for the future while thriving in the Now’, at The Crowne Plaza Hotel, in Blanchardstown, on Friday 22nd June.
The symposium is an opportunity for friendly, collegial discussion around the future direction of retail in Ireland.
This theme for the talk was ‘Driving growth through 3-way Insight’. The first presentation was delivered by Stephen Rust, joint MD at V360°, followed by Olga Mulvey, category controller at Kerry Foods.
V360° is a multidisciplinary shopper agency that provides a full service from insight to execution. Their mission is to help clients solve business challenges through creating positive enduring change in shopper behaviour.
Kerry Foods is one of the leading suppliers of added-value branded and customer branded chilled food products supplying UK, Ireland and selected international markets. Included in the Kerry Foods portfolio are brands such as Denny, Galtee, Dairygold, Low Low, Cheestrings, Charleville, Richmond, Walls, Shaws, Golden Olive and Easi Singles.
Contents of the morning:
Profitable Growth in FMCG is hard
Achieving significant profitable growth, or even protecting current sales and profits, has become increasingly challenging in the FMCG market, globally and especially in Ireland.
As Nielsen outlined in a study of over 60,000 SKUs and 12,000 new product launches that 76% of new products failed within the first year of trading. While our associates, engage consultants, through their global analysis have identified that 70% of trade and promotion activity fails to achieve a positive ROI for suppliers.
To add to the challenges above Kantar Worldpanel recently highlighted that the Irish Grocery market is one of the most competitive and concentrated retail grocery markets in Europe with the top 5 retailers accounting for 89% of grocery sales in Ireland. This percentage is far above our European neighbours where the average figure when you add in UK, France and Spain combined is only at 74%. This high level of concentration in a relatively small market only lowers the chances of achieving significant growth.
Deeper 3-way Insight will help unlock more profitable growth
The challenges above emphasise that a deeper understanding of consumer, shopper and retailer is now essential for suppliers and retailers to achieve profitable growth. V360° develop this 3-way rounded insight to support their clients in building a foundation of understanding for growing brands and categories. Typically, the fundamental questions they help better understand are…
1 Consumer - who is the consumer, or potential consumer, of the relevant brands or categories, and what is the consumer’s needs, occasions and perceptions?
2 Shopper – Is the shopper buying for themselves only, everyone in the household or for others, and what is the shopping behaviour we need to influence?
3 Retailer – What are the needs and perspective of the retailers, and any other relevant operators, along the supply chain to shopper?
Establishing this rounded understanding is an iterative process, often requiring a hybrid of research methodologies. However, the benefit of deeper rounded insight is that it can lead to better consumption or usage experiences, driving value with shoppers, increased trade support, enhanced ROI on marketing activity, and improvements in brand equity and preference.
A case example
As part of the 2nd shopper symposium session, V360° and Kerry Foods presented how together they established deeper 3 way insight into the deli meats category, and how they have embedded these insight as a foundation for a significant re-growth strategy, and are beginning to experience a turn in results.
3-way research was conducted by V360° including consumer groups, accompanied shops, in-store research and retailer in-depth interviews. The learnings from this research helped identified 4 platforms to increase future long-term consumption and spend in the category.
Along with identifying how to develop more consumption and spend for the category, a better understanding of shopper behaviour was also able to establish 5 components that will help engage and motivate more shoppers to purchase and increase conversion levels for the category in-store.
Workstreams have been formed to capitalise on these insights, and ensure there is effective execution in the trade, and a lot of these insights and tools to drive growth can be viewed on Kerry’s newly formed website www.deliexperts.ie
The process so far has led to a positive cycle of benefits in terms of…
-Increased rate of sale for deli counters where changes identified from the insights are implemented in-store.
-Increased orders for a product range solution that is relevant to retailers, shoppers and consumers.
-A relevant and effective Insight-led tool for field sales team.
-Positive endorsements coming back from store managers and owners.
-A growing website hit rate after only 3 months of been live as both retailers and internal field sales team access the tool to help grow the category.
Overall the symposium provided a guide, case example and rich discussion on what Insight is needed to drive growth in today’s market, and the learnings in the execution of the insights.
The 3rd session of the V360° and ECR Shopper Symposium is on the 24th August in Airfield Estate Dundrum from 07:30-09:00 and will focus on ‘winning at the moment of choice’, presented by V360° and Unilever.
ECR/V360 Shopper Symposium Series - April to August 2018
The 1st of 3 shopper symposium took place on 20th April in Dean Hotel.
Theme: Leveraging the Power of Technology and Social Media to meet shoppers’ evolving needs.
PREPARING FOR THE FUTURE WHILE THRIVING IN THE NOW
V360° launched the 2018 Shopper Symposium Series at The Dean Hotel, in Dublin on Friday 20th April in conjunction with ECR. The symposium is an opportunity for friendly, collegial discussion around the future direction of retail in Ireland. Our opening event focused on the ‘The Future’.
The first presentation ‘The Future Is Now’ was delivered by Robert Flavin, Director, Strategic Planning at V360° followed by Keith O’Reilly, co-founder of Bionic with ‘The Future, are we there yet?’.
V360° is a multidisciplinary shopper agency that provides a full service from insight to execution. We aim to help our clients solve business challenges through creating positive enduring change in shopper behaviour.
Bionic – Bionic is an innovative, award winning next generation Facebook Marketing Partner (FMP) who work with brand owners and retailers in automotive, financial services and retail at the intersection of offline and online.
THE FUTURE IS NOW
We are living through a time of unprecedented technological advancement, bringing the future closer every day. While shoppers’ fundamental needs remain constant in terms of cost, convenience, choice and customer service, their expectations as to how those needs should be meet have been utterly transformed.
Retailers and brand owners are embracing technology as an enabler to enhance the shoppers purchase journey primarily in terms of fulfilment but increasingly earlier in the path to purchase as well as enhancing the usage occasion. It is no longer good enough to passively wait and expect shoppers to seek you out. Proactively seek out ways to nudge shoppers at key points on their purchasing and usage experience.
“Our vision is to be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online” – Amazon.
While Amazon will continue to grab headlines, Alibaba shows that the future is already here, with their New Retail.
The future of shopping will continue to be people centric. We must provide engaging experiences while empowering people to buy better. But don’t forget the fundamentals of ease of shop and delivering economic value.
‘THE FUTURE, ARE WE THERE YET?’
“Any sufficiently advanced technology is indistinguishable from magic” Arthur C. Clarke.
The business of predicting the future is notoriously challenging. So where will the future take companies like Bionic? Augmented reality, personalised retail and autonomous driving have been heralded in popular culture for some time. However the democratisation of technology through Open Technology, Simple Tools (wizards/sdks) for example means that this future world of development is available to marketers, today.
Innovation and progress has exploded. While some of the opportunities are more obvious; Amazon, Google, Facebook, Twitter, Snapchat and Pinterest, others are equalling intriguing nonetheless; Uber, Spotify (just announced), Airbnb, Westfield Malls, Zalando.
The democratization of the technology is empowering individuals to build right now:
• Bot Assited Retail – Everlane Messenger Bot, built using free Facebook toolkit and conversational workflow.
• Automotive VR – Built by one amateur developer using a free SDK (software development kit) called ARKit which was released by Apple to stimulate Augmented Reality software development.
• Retail AR – built by one amateur developer, Andrew Hart, also using ARKit, allowing shoppers to navigate supermarkets, find products on shelves and receive recipe suggestions, offers and products based on shopping list.
A “real world” BIONIC case study with Mothercare. Bionic was recently awarded the Facebook Innovation Spotlight Award for Omni-channel Online & Offline Sales for their work with UK retailer Mothercare. Mothercare’s objective was to direct people in-store and achieve the best possible Return On Ad Spend. Bionic used personalised creatives to target each store to improve user experience and the Return On Ad Spend.
Daniel has worked with the ECR Community since its inception and is an expert on consumer goods brands and retail.
His most recent research calls for brands to stop shrinking to glory and start managing for growth.
Daniel presented at the recent ECR Ireland Leaders Congress where he presented examples of brands across the globe that have grown exponentially by radically changing their strategy to win mind and market share in the digital economy.
Daniel is also the co-presenter on the ECR Community "Future of Online Category Management" webinar series.