Intro presentation about marketing in the convenience channel

1. Planning The Path to Purchase
Introductory
Mee-ng:
Shopper
engagement
in
the
Convenience
Channel
Presented
to:
Richard
Tyler
Monday, 8 July 13

2. • Neon
Marcomms
team
worked
with
Sue
McVie
at
CCE
for
several
years
• Known
for
channel
experBse,
parBcularly
out
of
home
• We
helped
to
turn
channel
plans
into
customer
plans
across
all
channels
• Successful
acBviBes
run
in
convenience
mulBples,
Symbols,
Delivered
wholesale,
C&C,
Roadside
and
Independents
for
naBonal
promoBons
like
Coke
Olympics
or
Bud
World
Cup
or
smaller
customer
markeBng
iniBaBves
• Many
of
the
principles
that
work
in
one
channel
can
be
adapted
and
applied
successfully
to
another
• Our
team
first
applied
an
Occasion-­‐based
strategy
to
the
on
trade,
but
have
since
related
this
approach
to
shopper
acBvaBon
in
grocery,
and
now
the
convenience
channel
Introduc-on
Planning The Path to Purchase
Monday, 8 July 13

3. • Category
leaders
in
delivered
wholesale
of
chilled
food
brands
• Unique
‘Sale
or
return’
policy,
and
low
minimum
order
quanBBes
for
small
stores
• 400
Kerry
Fresh
vans,
26
depots
supply
14,000
customers
• MulBple
convenience
supplied
via
their
own
distribuBon
depots?
• Providing
customers
with
experBse
and
quality
markeBng
support
Kerry
Foods
Planning The Path to Purchase
Monday, 8 July 13

4. • Neon
Marcomms
was
born
from
top
10
BTL
agency
Dynamo
(now
Wax
CommunicaBons)
We
specialise
in
big
promoBonal
campaigns
for
big
brands,
always
with
a
strong
consumer
insight
at
the
heart.
We
always
ensure
while
Planning
The
Path
to
Purchase
(our
agency
mantra
)
that
people
are
moved
enough
to
buy
the
brands
we
acBvate.
• Our
thinking
became
Shopper
–
orientated
in
the
1990’s
as
retailer
power
in
the
UK
increased.
Clients
relied
on
us
to
develop
strategies
that
would
make
it
more
likely
that
their
acBvity
would
be
supported
in
store.
• We
like
to
apply
the
same
rigorous
approach
to
all
channels
of
distribuBon
• Our
experience
covers
14
out
the
top
20
grocery
brands
• We’ve
worked
on
Cheese
Strings,
and
pitched
on
Rustlers!
Who
we
are
Planning The Path to Purchase
Monday, 8 July 13

5. Planning The Path to Purchase
Some
of
our
work
Monday, 8 July 13

6. 6
Monday, 8 July 13

7. Planning The Path to
Purchase
• Channel
will
conBnue
to
outperform
the
wider
UK
grocery
market,
and
will
be
worth
£42.6bn
in
2015
and
£46.2bn
by
2018,
up
nearly
£11bn
from
2013.
• Convenience
mulBples
were
the
fastest
growing
segment
in
the
12
months
to
April
2013,
with
sales
up
8.4%.
Given
the
opportuniBes
in
the
channel,
big
supermarket
chains
are
expanding
their
convenience
store
estates
and
using
their
scale
to
provide
shoppers
with
afracBve
product
ranges
and
consistent
in-­‐store
service.
Some
key
recent
developments
include:
• Sainsbury’s
announced
it
will
operate
more
convenience
stores
than
supermarkets
next
year
and
is
planning
to
open
around
100
new
convenience
stores
per
year
• Tesco’s
key
trading
priority
is
to
reach
the
shopper
by
becoming
the
best
mulB-­‐channel
retailer
and
to
tailor
ranges
accordingly.
Tesco
recently
announced
that
One
Stop,
a
wholly-­‐owned
subsidiary
of
Tesco,
is
to
begin
trialling
a
franchise
model
with
independent
retailers
• Morrisons
is
opening
its
first
M
Local
stores
(see
our
recent
store
visit)
and
is
planning
to
have
100
M
local
convenience
stores
open
by
January
2014,
primarily
in
London
• Asda
is
commifed
to
building
a
world
class
mulB-­‐
channel
business.
Since
its
acquisiBon
of
Nefo's
UK
business,
Asda
has
been
learning
how
to
get
the
most
out
of
its
expanding
porjolio
of
small
format
stores
-­‐
stores
are
now
organised
to
meet
the
needs
of
convenience,
'top-­‐up'
and
'stock-­‐up'
shoppers
The
opportunity
in
Convenience
Planning The Path to Purchase
Monday, 8 July 13

8. There
are
2
main
opportuniBes
outside
of
Grocery
Main non-grocery
opportunities
30% c-store
Monday, 8 July 13

9. • In
the
US
57%
of
shopping
trips
are
occasion-­‐based
• Important
to
understand
the
difference
between
consumers
and
shoppers
• Research
helps
idenBfy
TRIP
MISSION
and
CONSUMPTION
• IdenBfy
Need
-­‐>
Basket
Analysis
-­‐>
Deliver
Shopper-­‐centric
soluBon
Consumer:
How, where, why do
they consume / use?
Consumer insights
Brand Mkting
R&D
Marcomms
Innovation
Shopper:
How, where, why do
they shop?
Shopper insights
Shopper Mkting
Account Teams
In-store
Path 2 Purchase
Influencers / tacticsTRIP
MISSION
CONSUMER
OCCASION
Activation
Opportunity
Key
to
Success:
Understand
Shopping
Occasions
+
Offer
relevant
soluBon
+
Engage
along
P2P
=
Increased
traffic
and
Basket
Shop
Monday, 8 July 13

10. 10
Trends
driving
growth
• Our
lives
keep
gepng
busier
• Grazing
/
snacking
replacing
tradiBonal
meals
• Snacking
in
convenience
set
to
grow
by
29%
in
next
5
years
• 75%
of
consumers
say
that
they
aspire
to
healthy
eaBng
• ReducBon
in
disposable
incomes
has
increased
adult
lunch
boxes
• Purchases
are
impulse-­‐led,
(though
visits
are
osen
driven
by
a
primary
purchase
need)
• Retailers
stock
ranges
that
meet
consumer
occasions;
lunch
box,
aser
school,
at
work,
post-­‐work,
on
the
move,
sharing
with
family
/
friends
• Recognised
quality
brands
outperform
the
rest
• Shopper
acBvaBons
also
linked
to
key
occasions
Monday, 8 July 13

11. 11
• ConBnue
to
enhance
and
support
Kerry
Foods’
Category
leadership
in
Chilled
by
providing
retailers
with
insights,
experBse
and
partner
with
them
to
acBvely
grow
their
business
• We
have
done
this
in
the
on-­‐trade
for
S&N
Retail,
and
in
workplace
contract
catering
for
The
opportunity
in
Convenience
CORE
OCCASIONS
-­‐>
KEY
CONSUMER
GROUPS
WORK
WITH
STORES
TO
BUSINESS
PLAN
AROUND
THEIR
STORE’S
KEY
GROUPS
ACTIVATION
PLAN
TAILORED
TO
STORE
Monday, 8 July 13

12. 12
Our
Approach
To
understand:
• What
your
vision
is
• Where
you
have
got
to
• How
you
work
with
your
customers
/
structure
/
resource
• Where
you
believe
that
you
can
make
a
difference
• What
role
technology
can
play
Monday, 8 July 13

13. 13
Occasion
led
à Ac-va-on
• Work
with
retail
partners
to
give
store
managers
the
right
tools
/
templates
to
grow
their
sales
of
chilled
foods
• They
work
with
your
sales
team
and
their
line
management
to
select
the
core
occasion-­‐based
consumer
groups
from
your
definiBve
list
• We
create
business
planning
templates
that
can
be
adapted
to
every
store
• Plans
show
how
to
set
targets
for
a
realisBc
incremental
sales
uplis,
which
is
agreed
• The
plan
helps
them
to
create
the
right
ac8va8on
plan
for
those
key
consumer
groups
/
occasions
• AcBvity
to
a
certain
value
(depending
on
that
customer’s
budget,
and
the
size
/
opportunity)
is
then
selected
/
adapted
from
a
generic
matrix
• Gives
you
control
and
economies
of
scale
Monday, 8 July 13

14. 14
Business
planning
tools
Retailer
Compliance
• IncenBves
and
rewards
for
performance
versus
targets
• Regular
review
of
performance
/
results
to
date
• Plan
to
cover:
Merchandising
&
Display;
planograms,
signage,
Hotspots,
occasion
drivers,
ease
of
shop
Quality;
Freshness,
Cleanliness,
Equipment
Price;
VFM
PromoBon;
Occasions,
seasonal,
support
naBonal
on-­‐packs
• Measured
/
monitored
by
merchandisers
or
mystery
customers
where
possible
Monday, 8 July 13

15. Contact details:
Neon Marcomms Ltd
12 Melcombe Place
Marylebone
London NW1 6JJ
Tel 0203 4273232
email
nick@neonmarcomms.com
Planning The Path to Purchase
Monday, 8 July 13