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The materials herein are proprietary to Willard Bishop may not be copied, reproduced or disclosed in any manner without prior written permission from Willard Bishop. Copyright © Willard Bishop, 2013. All rights reserved. Any logos, design marks, company names or product names contained herein are the sole property of their respective owners.
Craig RosenblumPartner
DATA PRODUCTS AND OPTIMZATION TOOLS
Activity Based Costing Retail Pricing/Promotion Strategies
Localization Strategies Shopper Relevancy
eCommerce Channel Development
Collaborative Performance Product Positioning
Willard Bishop | Practice Areas and Productssample list only
How to Differentiate
eCommerce
Service Levels
Quality
Assortment
Offers
Pricing
Formats Targeting
Prepared Foods
Change in Behaviors
• Less brand loyal
• Very price-conscious…but willing to pay up sometimes
• Convenience-driven and very social/connected
• Fresh, N&O and Specialty appeal
• Still like their brick-and-mortar, traditional supermarkets
• Down-sizing households
• Eating less, but eating healthier
• Local products and community’s importance grow
Shifting Formats Non-Traditional is the Only Growth Segment
Supercenter45%
Warehouse Club22%
Drug14%
Mass12%
Dollar6%
Military 1% +5.1%
Traditional Convenience Non-Traditional
90% 50% 48% 47%
8%
16% 15% 14%
2%
34% 37% 39%
Dollar Share by Channel*(Rounded)
+5.7%
+4.5%
+9.6%
+2.7%
+3.1%
Breakout of Non-Traditional with Growth Percentages
* Excludes eCommerceSource: Willard Bishop, The Future of Food Retailing; June 2013
Shopper Driven Merchandising Current Focus is on the How
Loyalty CardEmail
Snail Mail
In-Store
Personalized
Coupons
Mobile InternetCirculars
The Value of SDM is in the “What”
• Pricing and Promotion
• Product Assortment
• Format
• Space Allocations
Household-Oriented Merchandising
Leading Change Agents
• Understanding the Digital Consumer
• Social Media
• Responsive eCommerce
• Prepared foods
• Fresh, natural and organic
• Less brand loyal
• Limited assortment
• Extreme value formats
The Millennial’s BFF
It takes 26 hours for the average person to report a lost or stolen wallet.
It takes 68 minutes for them to report a lost phone.
Did you know?
Source: Unisys
Going Mobile
There are 6.8 billion people on the planet.
5.1 billion of them own a cell phone.
Did you know?
Source: Mobile Marketing Association Asia
4.2 billion own a toothbrush.
Speed Counts
of all mobile searches result in action within one hour
The average person responds
to email in 90 minutes
The average person responds
to a text in 90 seconds
Source: CTIA.OrgSource: Mobile Marketer
70%
Reach. Reward. Retain.
Mobile coupons get 10 times the redemption rate of traditional coupons
Source: Borrell
eCommerce is Getting Its Grove On
Worldwide eCommercebusiness will double to $1.5 billion
In 2 years….
Other eCommerce Notables
100 Orders per WeekHigh Volume Stores
Filling 500+ Orders per Week
Offers Home Delivery
eCommerce we continue to evolve and be the price of poker for many retailers. It will put huge pressures on stores with large square footages.
Without Confusion there is No Growth
Growth appears on the periphery
LimitedAssortment
EndlessAisle
TRADITIONAL SUPERMARKETS
Growth is Still Viable, Provided….
LimitedAssortment
EndlessAisle
TRADITIONAL SUPERMARKETS
• You know where to look for opportunities
• You take the appropriate action once discovered
Top 7 Growth Opportunities
+3.4% Traditional Grocery
88%Disruptive New Products
17%
11%
10%
10%
7%
5%
eCommerce
Fresh Format
N&O Non-Foods
Extreme Value
Prepared Foods
Limited Assortment
Sources: Willard Bishop 2013 Future of Food Retailing, eMarketer.com, Packaged Facts,Organic Trade Association, Store Brands Decisions, & Information Resources
Omni Channel
Integrate your path-to-market to capture sales
everywhere.
1
Disruptive NewProducts
Streamline your product
development process and
focus on truly disruptive offerings
3
Shopper Driven Merchandising
Use BI and shopper
insights to improve
merchandising decisions and
agility
52
ValueEquation
Define your competitive pillars; then pursue and
promote them relentlessly
4
Growth in Traditional Channels
Prepared foods, private label and new formats will
continue to capture growth
5 Focus Areas for 2014
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