Trade Marketing Flashcards

Approaches in Consumer-Shopper Behavior

• Behavioral models and research are used.

• Markets are quantified using retail panels.

Sample, Population, and Data Collection

• Categories: Fast-moving consumer goods (FMCG). Virtually any supermarket product.

• Population: 47 million consumers (in-store purchases).

• Sample:

  • Almost all stores of main supermarket chains.

  • A consumer-shopper panel.

• Incentives: Supermarkets share info for aggregated data, sold to manufacturers.

• Results: Accurate market share information for each brand by product category in each supermarket.

Audience Panels

• Measures media consumption to inform advertisers, agencies, and media about each platform's advantages to optimize communication strategies.

Data Collection

• Audiometer: Device that intercepts TV signal to determine the tuned channel.

  • Indicates household members present.

  • Since 2017, admits "guests" to the home.

• Results: Daily audience data.

  • Process endorsed by the AIMC (Association for Media Research).

  • Challenges: TV through the Internet.

• Sample and Population:

  • Population: 44.6 million viewers.

  • Sample: 4,700 households / 12,000 people.

  • Commitment to anonymity.

  • Sampling: random stratified by municipalities.

  • Margin of error: 1%-5%.

  • Incentives: points system.

In-Home Panels

• Categories: Food, drugstore, perfumery, textile, telecom, fuels, pet food.

• Population: 47 million consumer-shoppers.

• Sample: 4,000 households / 10,500 individuals.

• Incentives: Points system.

Data Collection

• Product barcode scanner.

• 8,000 questionnaires a year to collect consumption habits.

• Results Detailed information on:

  • WHO consumes.

  • WHAT do you consume.

  • WHEN do you consume.

  • HOW do you consume.

  • WHY do you consume.

Measurement with In-Home Panel

• Key questions addressed:

  • How many households buy?

  • What is the average purchase per household?

  • What is the frequency of purchase?

  • Where do households buy different references?

  • What is the loyalty of households that buy my brands?

  • What is the average purchase per act of purchase?

  • What is the market importance of the brand and its main segments?

  • What is the retailers market share?

Quarterly Delivery with Information in 4 Dimensions

• Channels, chains, and profiles variables.

• Category item list.

• Periods.

Relating to Households

• Penetration, % households in promo, average purchase per household.

Relating to the Act of Purchase

Relating to Fidelity

• Repeat purchase and net participation.

Relative to the Chain

• Loyalty to the retailer, average number of stores.

Other Variables

• Main channels.

• Main retailers.

• Sociodemographic profiles.

• Life stages.

• Same product detail as retailer bases.

• Quarterly & Annual.

• 3 years of history.

Sociodemographic Variables to Identify Buyer Groups

• Social class, age of the housewife, number of household members.

• Activity of the housewife.

• Presence of children in the home.

• Size of the municipality.

• Nielsen Geographies.

• Life Stages: Young singles, young couples, young families, young people >18 at home, established families, mature families, older couples, older singles.

Parfitt-Collins Model

• Explains market share behavior in terms of penetration, loyalty, and consumption rate.

  • \text{Market share} = \text{Relative penetration} \cdot \text{Net share} \cdot \text{Consumption index}

  • Relative penetration: Percentage of households that bought the brand in relation to households that bought the product.

  • Net share: Percentage of purchases of brand A made by buyers of that brand = Loyalty.

  • Consumption index: Spending of households buying the brand relative to the average spending of all households; measures whether the brand attracts strong consumer-shoppers.

Spanish FMCG and Mercadona Key Market Trends 2010-19

• Mercadona has achieved sustained growth by increasing the frequency of purchase of its shoppers, thanks to the remodeling of all categories of fresh products.

Consumer-Shopper Insights

• Implications of consumer-shopper behavior in defining marketing/trade strategy.

• Consumer-shopper insights as a marketing base and source of business.

• Trade & marketing mix.

Aspects/Triggers of Behavior

• Obtained after analyzing the way of thinking or acting of consumer-shoppers that generates business opportunities (products, strategies, communication, etc.).

• Obtain acceptable empirical generalizations that support a broad view, extrapolated to a specific group or population.
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Data, Information, Insights

• Qualitative, quantitative, and observational studies.

• Big Data.

Big Data

• Big Data alone is just numbers; the key is to derive insights and find good market opportunities.

Insights - Associated Purchases

• Walmart in the mid-80s used early databases to store customer shopping lists to decipher consumption patterns.