Understanding The Category X Shopper P2P Study

The
Category X
Shopper
A path to purchase
case study
Martin Baptie
Shopper and Category Development Director
Shopper Intelligence UK
martin.baptie@shopperintelligence.com
07714 422491
Background to this case study
– Our client wanted to get a initial view of shopper needs, motivations and behaviours within one of their
categories in which they had limited insight previously
– They requested an initial Total Market understanding of these shopper (this deck)
– Subsequent requests for channel and retailer specific analysis were delivered, all of which were possible to a
similar breadth and depth
What’s covered in this presentation…
1. How the analysis is conducted; Methodology & Benchmarks
2. Path to Purchase and Category Role
3. Shopper Priorities, Satisfaction and Improvement areas
4. Recommendations
5. Example of Satisfaction and Planning priorities at Individual retailer level

Our Survey Programme Methodology…
Mult Grocers coverage as 170+ categories measured >10 years of trend Annual tracking
standard with scope for across the store, at least 50 data across the store fieldwork, conducted
almost any retailer/channel shoppers per category per on all major April-August every year
retailer categories
We get insight in the areas that make a difference to you…
CATEGORY DNA SATISFACTION PATH TO PURCHASE SHOPPER

PROFILING
What makes the What do shoppers want How are purchases Analytical toolkit – Slice
category ‘tick’ – helps to and think – understand made and what and Dice by a wide
define category strategy priorities and retailer influences them – range of shopper
performance triggers to pull in store dynamics
Engagement @ fixture Importance Path to Purchase Full Demographics
Grab & Go/Browse Retailer shopped

Key Shopper Priorities Planned vs. Unplanned
Brand and Segment bought
Category Mindsets Performance Purchase Triggers Who bought for & intended
Ability to drive Traffic and/or usage
Spend Satisfaction levels What Planned
Loyalty to store
Risk of poor execution & Desired Improvements Where bought from (fixture or
display) Expandability
decision hierarchy
Shopper requested fixes Category Spend
Switch or Walk (range and execution incl Promotional Impact
pack size) Trip Mission
Category Role Was there a promotion
Online usage
Intentionality/Engagement What difference did it make What Quality & Sustainability
means
How can you easily draw insights & implications?
The Numbers themselves:

% of shoppers ; Net Agreement ; mean importance
Multiple Response and Single Response questions
How does the category

Rank = Relativity 200 rank vs. all other
categories on this metric
Significantly under indexes Significantly over indexes

Colour = Significance vs.
Benchmark
Benchmarks used:
Majority of analysis uses All Category Average/Total Market ; n = 50,000, Average of 200 categories
Retailer comparisons use Category X /Total Market; n = 900
Individual Retailer analysis uses All Category Average/Retailer; n = 12,000
Path to Purchase
and Category Role
Category X is a strong traffic driver with promotions and premiumisation important to drive
spend. Shoppers are driven to make trips to buy via shopper marketing and need to have in
home but will also choose retailer based on their delivery of the category…
Agreement Statements (Net Agree) on shopping for CATEGORY in RETAILER
13 154
TRAFFIC 47% 32% SPEND
101 24 8 66 6 42 146 43 187
Main reason Don't want Promotions Price Retailer does Often New & Don't mind Buy because
I go to run out encourage Beacon well (loyalty) buy extra Different paying more I feel like it
shopping shopping
77%
62% 59%
54% 55% 52%
38%
All Categories (Total Market)
-12% Department level

Category X -20%
Net Agreement
NF: % Agree 4,5 minus Benchmark:
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
% Disagree 1,2 All Categories (Total Market)
These high traffic driving capabilities are more relevant for the High St channel. Shopper
Marketing and Retailer execution is less likely to influence trip and store choice in the
Mults whilst shoppers are also less likely to buy extra on promotion…
TRAFFIC SPEND
Agreement
Statements
(Net Agree) on
shopping for
CATEGORY in Main reason Don't want Promotions Price Retailer does
RETAILER Often New & Don't mind Buy because
I go to run out encourage Beacon well (loyalty) buy extra Different: Buy paying more I feel like it
shopping shopping More
Category
X -12% 77% 54% 55% 62% 52% 38% 59% -20%
Mult
Grocers
-31% 72% 28% 52% 31% 35% 40% 60% -17%
High St -10% 77% 56% 55% 64% 53% 38% 59% -20%
Net Agreement
NF: % Agree 4,5 minus Benchmark:
% Disagree 1,2 99% 90% < 90% 90% 99% >N Category X (Total Market)
The vast majority of Category X purchases are planned pre-store and very small amounts
are bought on impulse…
Did you specially plan to buy CATEGORY before you went to the store?
PLANNED UNPLANNED
All Categories 77% 23%

(Total Market)
Department 79% 21%

level
Category X 83% 17%

54 147
% of Shoppers Benchmark:
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
Planning behaviour is driven by particular use and Shopper marketing activity. Price,
promotions and display are much less likely that average to influence impulsive behaviour in
store…
Did you specially plan to buy CATEGORY before you went to the store? What were the main reasons you planned / decided to buy CATEGORY on this occasion?
54 73% 76 51% 111 13% 20 15% 123 4% 106 9% 130

77%
75% 47% 27% 13% 3% 7%
To use/consume
PLANNED No promo trigger Regular purchase Particular use Requested Try for a change
immediately
83%
80%
10% Magazine 5% Advert 4% Internet info 2% Coupon 3%

11
20% 10% 7% 5% 5%
9 32 28 11
Promo trigger
147 23%
10% 160
7%
UNPLANNED No promo trigger
17%
20%
To use/consume
Price/ Specials Display Info in store New immediately
15% 5% 10% 1% 2% 2%
144
10% 3% 7% 0% 2% 0%
Promo trigger
166 165 72 108 148
Benchmark:
XX%
% of Shoppers Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
All Categories (Total Market) All Categories (Total Market)
At fixture, shoppers are more likely to spend time browsing…
Thinking about your intention – how you’d wanted or intended to shop for CATEGORY at RETAILER.
Which of these was more important to you on this trip?
GRAB & GO BROWSE

(Total Market)
Department 61% 34%

level
Category X 63% 30%

151 74
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
This higher level of browsing is driven by searching for the best deals rather than interest.
For faster shoppers, there is also a higher level of deal grab & go behaviour whilst just
over half of shoppers knew what they wanted…
Which of these was more important to you when shopping for CATEGORY at RETAILER on this trip - Make your choice quickly Or Wanted to spend some time
looking. Why?
151 74
GRAB & GO 63% 30% BROWSE
Category X
108 168 35 136 96 12
56% 53%
18%
13% 19% 16% 11%
6% 11% 10%
4% 5%
Knew what I wanted Time pressure Buy best daily deal Interested Uncertain Buy best deal on day
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
Much more is likely to be bought on promotion in Category X, however much higher
numbers of promotional purchases are made regardless of the promotion which suggests
category profitability is being reduced un-necessarily, shoppers will buy anyway…
Was the CATEGORY you bought at a reduced Which of the following would you say best applies?
price or on another promotion? - Yes
Bought 56%
regardless of 63%
promotion
44%
28%
Bought only 44%
because of 37%
promotion
All
All categories / Big Category
SuncareX All Category X
All categories / Big Suncare
Categories/Total
4 and HS Categories/Total
4 and HS
Market Market
99% 90% < 90% 90% 99% <N
It does look as if promotions are driving significantly more stockpiling and are subsidising
base sales more than average with lower incrementality…
Was the CATEGORY you bought at a reduced price or on another promotion? If so, which of the following
would you say best applies?
28%
4
BOUGHT
ON PROMO
44%
45%
40% 26% 32%

170 64 43
STOCKPILING SUBSIDISED
INCREMENTAL BASE SALES
30% 31% 37%

45%
45%
Would have Would have bought the

bought soon category & bought same
N.B. Category promotional anyway as usual
incrementality is calculated by
summing those who “Hadn’t intended
to buy now or in near future” +
“Would have bought but bought Benchmark:
more” + “Was waiting for the right % of Shoppers Rank (of 200) 99% 90% < 90% 90% 99% <N
promotion to come along”
Brand switching due to promotion is no different to average…
If bought only because of the promotion: Bought same brand / Bought different brand?
43%
39% This 20% equates to 7% of those that bought on
promotion
27%
24%
18%
16%
4%
2%
I bought the same brand as usual, and I bought the same brand as usual, and I bought a different brand than I would I bought a different brand than I would
bought the same amount as I usually do bought more than I usually do usually buy, but the same amount usually buy, and bought more than I
usually do
AllAll
categories / Big 4 and
Categories/Total HS
Market Category X
Suncare
99% 90% < 90% 90% 99% <N
High
Engagement
More likely to Browse + Willing to
Pay More
PROFIT BOOSTER HERO
“Tempt me to spend a bit more on the little extras” “Give me a reason to choose this store”
Determining
Low High
Intentionality the Intentionality
Category Main reason for shop + More
Role Planning
BASKET BUILDER TRIP DRIVER

“Cover all the bases so I don’t have to go elsewhere” “Get it right on the basics”
Low
Engagement
Category X has a different category role in each channel. In High St it is a “Hero”
category whilst in the Mult Grocers it is a “Profit Booster” due to lower intentionality…
PROFIT BOOSTER HERO

“Tempt me to spend a bit more on the little extras”
High Engagement “Give me a reason to choose this store”
Category X (High St)

Category X (Mults)
Low Intentionality High Intentionality

“Cover all the bases so I don’t have to go elsewhere” Low Engagement “Get it right on the basics”
Benchmark:
High
Engagement
PROFIT BOOSTER HERO
PRICE: Mix of value and premium focus

PRICE: Focus on premium over price
PRODUCT: Lead on innovation
PRODUCT: Rotate range and focus on New
PLACE: Use layout and theatre to create
PLACE: Use display/theatre to attract
destination
PROMOTION: Use high/low strategy to attract
PROMOTION: Promote pre-store to drive trip
Low High
Intentionality Intentionality
PRICE: Use price to attract shoppers PRICE: High Market Competitiveness
PRODUCT: Avoid obvious range gaps PRODUCT: Optimised range, high availability
PLACE: Focus on clear standout and navigation PLACE: Easy to find and easy to shop
PROMOTION: Regular feature to build basket PROMOTION: Keep promotions low level

Low
Engagement
Nearly half of Category purchases are from secondary display…
Where in store did you buy CATEGORY from?
All Categories
Place in store bought from Department level Category X
(Total Market)
In the main section in the usual
67% 60% 46% 90
186
shelf/place
From the in store pharmacy 1% 1% 0%
Total Main Aisle 68% 61% 46% 191

94
All Categories
Place in store bought from Department level Category X
(Total Market)
Seasonal Section 3% 5% 16% 2
Separate display at the front or
7% 8% 11% 55
17
back end of an aisle
Separate display/ chilled cabinet
9% 11% 8% 139
109
elsewhere in the store
A display of promoted items near
4% 5% 8% 122
22
the entrance
At or near the checkout 3% 5% 4% 67
51
Fridge/chiller near store entrance 2% 0% 0% -

49
Total Secondary Display 29% 35% 48% 100

14
Benchmark:
If a shoppers preferred product is unavailable 57% will switch and 43% will not buy,
in line with the category average…
Think about the size/amount and type/flavour of (brand bought on last trip) you bought. If this had not been available, which of these would you have most
likely done? And which would you have least likely done?
SWITCH WALK AWAY

(Total Market)
Department 54% 46%

level
Category X
57% 43%
98 103
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
Whilst Walk Away in total is in line with the category average, a significantly higher number of
shoppers will go to a competitor if they cannot get what they want…a clear risk of lost retailer share.
For those that switch, the highest numbers will switch brand, followed by size the type
Think about the size/amount and type/flavour of (brand bought on last trip) you bought. If this had not been available, which of these would you have most
likely done? And which would you have least likely done?
44 151 89 165 30 83 138

98 103
Switch Walk Away
57% 43%
49% 51%
18% 14% 25% 7% 16% 14% 6%

Bought another Bought another Bought another Bought something Gone to another Would have bought Bought nothing
size/amount type/flavour brand else instead of store it on my next trip
CATEGORY
Benchmark:
Shopper Priorities,
Satisfaction and
Improvement areas
The top 5 priorities for Category X shoppers are Quality, Price, Range, Offers and Layout. 3 of
those have higher importance than average. In addition, it is more important than average to
ensure clear value identification and offer products that communicate Health and
Sustainability…
Premium, Innovation, Enjoy and Navigation are
How important is each statement to you when shopping for CATEGORY in RETAILER? significantly more important in the Mults
PRICE PRODUCT ASSORTMENT EXECUTION
3.8
3.6 3.6 3.5 3.6 3.6
3.5 3.5 3.4
3.1 3.2 3.2
3.0 3.0
2.8
105 62 26 20 116 33 51 51 156 121 91 31 59 127 119
Ave Out of 5 Benchmark:

Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
Quality for Category X shoppers means efficacy and the highest quality ingredients.
High animal welfare and product awards/endorsements also help demonstrate quality…
Now, thinking about your answers to 'Great quality in CATEGORY' in the previous questions – which one most accurately describes what you meant?
33%
19%
14%
11% 11% 12%
7% 8%
6% 5%
3% 4% 4% 4%
1% 2%
Best product The product works Responsibly Product has High Product looks Authentic, e.g. Packaging, e.g. Product is award
ingredients/is or delivers better sourced or Welfare standards good through the traditionally made, innovative or winning / or has an
made to a than expected produced packaging or from a specific appealing endorsement
consistent high region or country packaging
standard etc.
All
All categories / Big
Categories/Total 4 and HS
Market Suncare
Category X
Benchmark:
% shoppers n=900 99% 90% < 90% 90% 99% <N
Recyclable packaging, sustainable sourcing, high animal welfare and clear
communication on sourcing & ingredients are the most important ways to communicate
sustainability…
Thinking about your answers to does minimal environmental harm and is ethically produced in the previous questions which one most accurately describes what you meant?
20%
16% 16%
15% 14%
14%
11% 11% 11%
7% 7%
6% 6%
5% 5%
4% 5%
3% 4%
2% 3%
2%
AllAllcategories / Big 4Market

Categories/Total and HS Category X
Suncare
Benchmark:
% shoppers n=900 99% 90% < 90% 90% 99% <N
Overall satisfaction for Category X is in line with average at market level although
execution and product are not seen as positively …
The Overall Satisfaction Score is the average of satisfaction ratings on the various statements,
weighted by their importance.
93 40 128 69 132
OVERALL
SATISFACTION
64% 67%
69% 62% 65% 71%
Price Product Assortment Execution
66% 56% 68% 64%

All Categories 60% 59% 64% 68%
(Total Market)
N.B. - Satisfaction scores are the average of satisfaction ratings on the various statements,
weighted by their importance
– Price = combination of Price, Fixed Low Price, Offers & Identify Value Benchmark:
Rank (of 200) n=900 99% 90% < 90% 90% 99% <N
– Product = Quality, Premium, Healthy Options, Sustainability, British Made All Categories (Total Market)
– Assortment = Range, Innovation
– Execution = Availability, Layout, Navigation, Enjoy
Being able to find the category instore and then being able to shop the category at fixture
should be prioritised in category planning…
How is the CATEGORY in the RETAILER performing against what is most important to shoppers?
High Importance, Good Performance

URGENT ACTION Low Performance for Importance APPROPRIATE
3.90
Quality
3.70
Range
Price
Layout Offers
3.50 Identify value Healthy Options
Navigation Fixed low price
3.30
Availability Sustainability
3.10 Premium
Enjoy Innovation
2.90
British made
2.70
-15% -10% -5% 0% 5% 10% 15%
Poor performance Low Importance,

IMPROVE for Importance High Performance
EXCESS
Benchmark:
Asda has the lowest overall category satisfaction of all retailers measured. Sainsburys and
Morrisons are also lower than average whilst Boots leads the way…
How much you agree or disagree when shopping for CATEGORY in RETAILER?
Overall
Satisfaction
Category X/
Total Market 64% 66% 56% 68% 64%
64% 66% 60% 65% 66%
61% 65% 60% 57% 59%
59% 61% 51% 59% 64%
62% 62% 59% 61% 65%
65% 65% 56% 69% 67%
64% 68% 56% 68% 62%
– Price = combination of Price, Fixed Low Price, Offers & Identify Value
– Product = Quality, Premium, Healthy Options, Sustainability, British Made
– Execution = Availability, Layout, Navigation, Enjoy Net Agreement
Benchmark:
NF: % Agree 4,5 minus n=900 99% 90% < 90% 90% 99% <N
Category X (Total Market)
% Disagree 1,2
Shoppers are asking for improved information, signage and less choice significantly more than
average in Category X…
Ease of shop much more important in the Mults

If you had to improve CATEGORY in RETAILER, which ones would you choose?
More Ideas/ Stock Better Improve how

Change Pack Improve Fewer choices
inspiration Brands/Products explanation and products are
Sizes, i.e., signage at so its less
about I like that aren’t Information at laid out on the
bigger/smaller shelf confusing
CATEGORY sold in RETAILER the shelf shelf
41%
37% 36%
34%
29% 29%
25% 24%
22% 23%
21% 20%
18% 17%
15%
11%
190 89 108 99 9 155 24 36
Innovation Pack Sizes Theatre Range Gap Information Ease of Shop Navigation Less Choice
AllAllcategories / Big
Categories/Total 4 and HS
Market Suncare
Category X
Red colour indicates MORE

improvement desired.
Green colour indicates LESS
Improvement desired. Benchmark:
% shoppers Rank (of 200) n=900 99% 90% < 90% 90% 99% <N All Categories (Total Market)
Of those shoppers who want different Pack sizes, around half want bigger packs but this
is no different to the average category…
You mentioned you would like the packaging improved. Which of the following is the main reasons for wanting improvement?
Smaller Packs Required Bigger Packs Required

The pack size is too big The pack size is too big The pack size is too small and I
and therefore too and therefore has more don’t have enough for what I
expensive than what I want or need want or need
All categories /
18% 24% 55%
Total Market
Category X 21% 24% 51%
99% 90% < 90% 90% 99% <N Benchmark:

% shoppers
Category growth opportunities for Category X…
Three priorities for action…
1. Less should be sold on promotion, give focus to other sales driving levers, e.g., shopper
marketing to drive planning and range premiumisation instore. Promotional efficiency should
also be analysed further to improve.
2. Range should be reduced and a higher percentage given to premium sku’s that demonstrate
Quality, Health and Sustainability to shoppers. Brands that do this will win.
3. Fixture execution should focus on improved layouts with POS to assist navigation and provide
information to assist purchase decision
Example of Satisfaction
and Planning priorities for
Category X in Sainsburys
– Just
one small part of what can be used to drive
change at retailer level
Overall satisfaction for Category X in Sainsburys is in line with the average category in
Sainsburys although execution satisfaction is significantly lower. Assortment is also lower
and low ranked…
The Overall Satisfaction Score is the average of satisfaction ratings on the various statements,
weighted by their importance.
89 22 78 122 128
OVERALL
SATISFACTION
61% 67%
69% 62% 65% 71%
65% 60% 57% 59%

All Categories 54% 59% 63% 67%
(Sainsburys)
Rank (of 158) n=150 99% 90% < 90% 90% 99% <N
– Product = Quality, Premium, Healthy Options, Sustainability, British Made All Categories (Sainsburys)
Mapping importance to satisfaction levels and comparing the rest of Sainsburys categories
highlights priorities for category planning – In Category X, Fixture Layout, Navigation (being
able to find the category instore) and Range (having a great range that meets shopper
needs) are the immediate priorities…

3.90
Price
3.70 Quality
Layout Identify value
Range Healthy Options
3.50
Navigation
Fixed low price
Offers
3.30
Availability Premium
Sustainability
3.10
Innovation
2.90 British made Enjoy
2.70
-20% -15% -10% -5% 0% 5% 10% 15% 20%

EXCESS
Benchmark:
All Categories (Sainsburys)
Sainsburys satisfaction is lower than other retailers for Assortment and Execution. This is
dragging overall satisfaction down below the market average…
How much you agree or disagree when shopping for CATEGORY in RETAILER?
Overall
Satisfaction
Category X /
Total Market 64% 66% 56% 68% 64%
61% 65% 60% 57% 59%
64% 66% 60% 65% 66%
59% 61% 51% 59% 64%
62% 62% 59% 61% 65%
65% 65% 56% 69% 67%
64% 68% 56% 68% 62%
Net Agreement weighted by their importance
NF: % Agree 4,5 minus – Product = Quality, Premium, Healthy Options, Sustainability, British Made
% Disagree 1,2 Category X (Total Market)
Comparing Sainsburys to the market in detail, highlights the same need for improvement in
Layout, Range and Navigation plus the visibility of Fixed Low Price products and Offers…

3.80
Price
Quality
Layout
3.60 Range Identify value
Navigation
Healthy Options
3.40
Fixed low price Offers
Availability Premium
3.20 Sustainability
3.00 Innovation
British made Enjoy
2.80
-20% -15% -10% -5% 0% 5% 10% 15% 20%

EXCESS
Benchmark:
Category X (Total Market)
The
Category X
Shopper
A path to purchase
case study
Martin Baptie
Shopper and Category Development Director
Shopper Intelligence UK
martin.baptie@shopperintelligence.com
07714 422491

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The

1. How the analysis is conducted; Methodology & Benchmarks

2. Path to Purchase and Category Role

3. Shopper Priorities, Satisfaction and Improvement areas

5. Example of Satisfaction and Planning priorities at Individual retailer level

CATEGORY DNA SATISFACTION PATH TO PURCHASE SHOPPER

Engagement @ fixture Importance Path to Purchase Full Demographics

Grab & Go/Browse Retailer shopped

The Numbers themselves:

How does the category

Significantly under indexes Significantly over indexes

101 24 8 66 6 42 146 43 187

All Categories (Total Market)

-12% Department level

All Categories 77% 23%

Department 79% 21%

Category X 83% 17%

54 73% 76 51% 111 13% 20 15% 123 4% 106 9% 130

10% Magazine 5% Advert 4% Internet info 2% Coupon 3%

GRAB & GO BROWSE

All Categories 69% 27%

Department 61% 34%

Category X 63% 30%

108 168 35 136 96 12

40% 26% 32%

30% 31% 37%

Would have Would have bought the

BASKET BUILDER TRIP DRIVER

PROFIT BOOSTER HERO

Category X (High St)

Low Intentionality High Intentionality

BASKET BUILDER TRIP DRIVER

PRICE: Mix of value and premium focus

BASKET BUILDER TRIP DRIVER

Total Main Aisle 68% 61% 46% 191

Fridge/chiller near store entrance 2% 0% 0% -

Total Secondary Display 29% 35% 48% 100

SWITCH WALK AWAY

All Categories 57% 43%

Department 54% 46%

44 151 89 165 30 83 138

18% 14% 25% 7% 16% 14% 6%

PRICE PRODUCT ASSORTMENT EXECUTION

105 62 26 20 116 33 51 51 156 121 91 31 59 127 119

Ave Out of 5 Benchmark:

11% 11% 11%

AllAllcategories / Big 4Market

Price Product Assortment Execution

66% 56% 68% 64%

High Importance, Good Performance

Poor performance Low Importance,

61% 65% 60% 57% 59%

59% 61% 51% 59% 64%

62% 62% 59% 61% 65%

65% 65% 56% 69% 67%

64% 68% 56% 68% 62%

Ease of shop much more important in the Mults

More Ideas/ Stock Better Improve how

190 89 108 99 9 155 24 36

Red colour indicates MORE

Smaller Packs Required Bigger Packs Required

Category X 21% 24% 51%

99% 90% < 90% 90% 99% <N Benchmark: