Which retailer decided to invest more in regional promo operations? Who is decreasing the average virtual price in leaflets? Which are the top promo mechanisms in 2012? Find much more

S1 2012 vs 2011

PROMOReview

Promo Review of food retailers in 20’topS1 2012 vs 2011

RETAILERS SUMMARY

QUANTITATIV KPI Slides

1- LEAFLETS & PROMO OPERATIONS 4-10

32-44

4- PROMO MECHANISMS 21-27

3- PROMO PRESSURE & SHARE OF VOICE

17-20

2- TRADE STRATEGY 11-16

QUALITY KPI 28-31

CONTENT :



VOCABULARY•Promo Pressure: index of promo visibility for a retailer, a category a brand or a format

•Share of Voice: index of promo visibility for a retailer, a category a brand or a format in relative value versus competitors. The Share of Voice index of Hipercom shows the promo activity of the Retailers in the most exhaustive way, taking into consideration the quantity of promotional operations, SKU’s or WU in Promo, the commercial space (in m2) when the promotion was valid and the number of days of the validity days of that specific promotion.

•Weighted Unit ( WU): One or more SKU from the same family, being on the same promotion (many flavors for juice, many colors for shampoo, many sizes for textile)

•Consumer advantages: All additional trade mechanisms supporting the promo price and mentioned on the promo leaflet.•Promo price: Price on the leaflet (should be different from the shelf price) •Virtual Price: Promo price – (minus) all consumers advantages •ND: National distribution For one retailer = number of stores participating in a promotion/ Total number of that retailer’s stores. •Negative Promo: (Index)= Qty of promo cheaper somewhere else ( at the same date) / total qty of promo (for the concerned retailer)

•Perimeter of analysis: Russia: CC, Hyper, Super, Discounters (Analysis for the Top 10 Retailers of this category)

http://www.hiper-com.com/en/share-of-voice/

http://www.hiper-com.com/en/share-of-voice/


PROMOReview

Promo Review of food retailers in 20’top

1- LEAFLETS & PROMO OPERATIONS

S1 2012 vs 2011


LEAFLETS & PROMO OPERATION

NATIONALS PO

REGIONAL PO

S1 2012 Evolution

496 465

1618 1437

- 1,1 %

+6,0%

+0,21 % +12,6%

S1 2011 PressurePromo Op*

*A Promo Operation is a set of leaflets issued by a store network. This set could consist of one leaflet till 25 or more regional variations

We see that retailers prefer to invest more in regional PO in 2012



Pressure

21

13

7

7

4

( Nationals PO) S1 2012(evol) HM SM ( Nationals PO) S1 2012(evol)

+2

+3

+1

+1624

10

14

3

S1 2012 Evolution S1 2011Promo Op*


+2

+8

+14

NATIONALS PO

REGIONAL PO

496 465

1618 1437

- 1,1 %

+6,0%

+0,21 % +12,6%

-1-8



C&C HD30

15

10

3

2

( Nationals PO) S1 2012(evol) ( Nationals PO) S1 2012(evol)

S1 2012 Evolution S1 2011Promo Op*


Pressure

-2

-16

+4

+2

NATIONALS PO

REGIONAL PO

496 465

1618 1437

- 1,1 %

+6,0%

+0,21 % +12,6%

-7


5 TOP TRAFFIC LEAFLET (by PO Share of Voice)

Number of WU 806 795 769 690 682Stores 38 73 40 76 73Days 14 6 14 6 6


MAXIMUM AVERAGE OF PAGES/PROMO OP

28 pag

25 pag

25 pag

23 pag

20 pag

0 p

+16 p

-24 p

+24 p

+16 p

+2 p

+12 p

-8 p

0 p

0 p

The number of pages per PO is decreasing or increasing. Only 2 are decreasing. We can see the most significant increase in Metro and Selgros.

+4 p

-8 p

0 p


NUMBER OF PROMO OPERATIONSIn 2012 most of the retailers decreased their quantity of leaflet edition. The exception of the rule here is Perekrestok, with an increase of 50 pages.

+50 p

+1 p

+22 p

-14 p

+23 p

-18 p

-5 p

-6 p

-6 p

-1 p

-4 p

-5 p

-6 p


S1 2012 vs 2011

PROMOReview


2 - TRADE STRATEGY


WU TYPOLOGY (Brands, Private Labels, Unbranded )Within CASH&CARRY, HIPERMARKET, SUPERMAKET, DISCOUNTERS

We can observe that the Unbranded and Private Labels are loosing share in favor of Brands. This shows that the strategy of the retailers is to reduce the space for the promotions without budget.

* WU = one ore more SKU from the same family, visible on one picture (e.g. various flavors)


WU TYPOLOGY NumberWU/OP National Brands Private Label Unbranded

11961 ref 74,9% (4,6 pts)

5077 ref 82,2% (1,1 pts)

4699 ref 80,1% (1,4 pts)

8728 ref 69,9% (3,4 pts)

7266 ref 94,8% (-0,6pt)

12855 ref 77,4% (-3,1 pts)

743 ref 76,4% (-9,1 pts)

10898 ref 62,3% (-0,9 pt)

3977 ref 82,1% (3,2 pts)

11688 ref 60,6% (-5,2 pts)

2695 ref 66,3% (12,6 pt)

1827 ref 94,8% (-0,6 pt)



WU TYPOLOGY NumberWU/OP

National Brands Private Label Unbranded

11961 ref 74,9% (4,6 pts) 12,8% (-0,4 pt)

5077 ref 82,2% (1,1 pts) 5,5% (-2,9 pts)

4699 ref 80,1% (1,4 pts) 5,4% (0,6 pt)

8728 ref 69,9% (3,4 pts) 7,7% (-0,7 pt)

7266 ref 94,8% (-0,6 pt) 0,3% (-0,2 pt)

12855 ref 77,4% (-3,1 pts) 4,3% (0,7 pts)

743 ref 76,4% (-9,1 pts) 17,5% (9,7 pts)

10898 ref 62,3% (-0,9 pt) 16,8% (-0,6 pts)

3977 ref 82,1% (3,2 pts) 6,9% (1 pts)

11688 ref 60,6% (-5,2 pts) 17,1% (1 pt)

2695 ref 66,3% (12,6 pt) 9,5% (1,5 pts)

1827 ref 94,8% (-0,6 pt) 0,3% (-0,2 pt)



WU TYPOLOGY NumberWU/OP National Brands Private Label Unbranded

11961 ref 74,9% (4,6 pts) 12,8% (-0,4 pts) 12,3% (-4,2 pts)

5077 ref 82,2% (1,1 pts) 5,5% (-2,9 pts) 12,3% (1,8 pts)

4699 ref 80,1% (1,4 pts) 5,4% (0,6 pt) 4,5% (-2 pts)

8728 ref 69,9% (3,4 pts) 7,7% (-0,7 pt) 22,4% (-2,7 pts)

7266 ref 94,8% (-0,6 pt) 0,3% (-0,2 pt) 4,9% (0,8 pt)

12855 ref 77,4% (-3,1 pts) 4,3% (0,7 pt) 18,2% (2,4 pts)

743 ref 76,4% (-9,1 pts) 17,5% (9,7 pts) 6,1% (-0,6 pt)

10898 ref 62,3% (-0,9 pt) 16,8% (-0,6 pt) 20,9% (-0,3 pt)

3977 ref 82,1% (3,2 pts) 6,9% (1 pts) 22,3% (4,2 pts)

11688 ref 60,6% (-5,2 pts) 17,1% (1 pt) 22,3% (4,2 pts)

2695 ref 66,3% (12,6 pts) 9,5% (1,5 pts) 24,1% (-14,1 pts)

1827 ref 94,8% (-0,6 pt) 0,3% (-0,2 pt) 4,9% (0,8 pt)


AVERAGE VIRTUAL PRICE (all leaflets)

Metro had a severe reduction of the virtual price by 72%, meanwhile MegaMart increased the virtual prince by 3,5%.

-675 -539 -271 -511 -67 -11 -145 +4 -5 -8 -10

рублей


S1 2012 vs 2011

PROMOReview

3 – PROMO PRESSURE & SHARE OF VOICE


PROMO PRESSURE GROWTH* (WU)

PROMO PRESSURE

FOOD

NON - FOOD

+23,05 %

+10,01 %

HIPERMARKET

SUPERMARKET

CASH&CARRY

DISCOUNTERS

+10,55%

+ 7,88%

+ 6,77%

The Promo Pressure (PP) имеет позитивный тренд в первом семестре 2012 по сравнению с первым семестром 2011 года т.е. (Y-1). В рамках развития всего like-for-like ритейлерского рынка (+25%), оба FOOD и NON-FOOD прибавили в весе.PP вырос по всем сегментам, больше всего у Гипермаркет-ов. Похоже что вместе с Супермаркет-ами и Дискаунтер-ами, они задают тренд всего рынка.

*Promo Pressure рассчитан в WU . Использованы данные Гиперком http://www.hiper-com.com

Growth v/s Y-1

+25,6 %

+ 0,83%


PROMO PRESSURE GROWTH* (WU)

The detailed promo pressure growth by player shows the correlation between number of pages downsize and promo pressure reduction.


SHARE OF VOICE (WU)

-2,8 pts

-0,8 pts

-0,3 pts

+0,1 pts

+0,7 pts

+0,3 pts

+1,2 pts

+0,1 pts

-0,9 pts

-1,2 pts

0 pts

The most important player remain Metro even with a decrease of his Promo Pressure (PP).Look how О’Кей & Карусель are fighting for the 3rd rank on the podium!




S1 2012 vs 2011

PROMOReview

4 – PROMO MECHANISMS



PROMO MECHANISMS(WU)

Regarding the consumer benefits an important increasing was in HYPERMARKETS with 3.25 pts while CASH&CARRY registered a negative evolution -0,26 pts versus 2011.

Products with consumer benefits by retailer format



PROMO MECHANISMS(WU)Products with consumer benefits per retailer

HIPERMARKET SUPERMARKET

Analyzing the consumer benefits by retailer, we have a clear picture of the evolution of these. In Hypermarkets О’Кей increased with 0,3 pts, while in Supermarkets Perekrestek is leading, although it has registered a increase of only 1,4 pts. Lenta and Billa both decreased with 6%.



PROMO MECHANISMS(WU)Products with consumer benefits per retailer

DISCOUNTERCASH&CARRY

In Cash&Carry METRO registered a slight negative evolution of -5 pts vs. previous year. Within Discounters, Pyaterochka made a big jump of +16 pts.



PROMO MECHANISMS

73.66

%

+2,78 pt

Products with consumer benefits

S1 2012 Growth vs Y-1

What kind of Promo Mechanismsretailers are using, and their evolutionvs last year

-45 pts

-0,41 pts

-0,29 pts



PROMO MECHANISMSProducts with consumer benefits

73.66

%

+2,78 pt


1+1 gratis 11,38% (-0,27 pt)

2+1 gratis 48,92% (+9,58 pt)

Other VL 10,58% (+1,5 pt)

X% From the 2nd product (identical or not) 39,62% (+1,5 pt)

Crossed price 49,2% (+11,4 pt)

Cupon 0,0%Loyalty points 2,7% (-2,3 pt)

Money ticket 0,0%

Price discount (loyalty card or not)

47,37% (-3,4 pt)

Special price 1,06% (-0,6 pt)

Happy Hours 0,89% (-1,1 pt)

Gifts on pack 4,0% (-0,29 pt)

-45 pts

-0,41 pts

-0,29 pts



Products with consumer benefits

PROMO MECHANISMS

73.66

%

+2,78 pt


+2,2 pts

+1,3 pts

-4,4 pts

+1 pts

+1,3 pts

-0,4 ptsFrom total articles promoted in Food category, on more than 50% at least 1 Consumer Advantage was used, And on Non-food promotions, only 14% of the articles were promoted with a Consumer Advantage.

-0,9 pts

-11 pts

-0,8 pts

-4,6 pts



S1 2012 vs 2011

PROMOReview

3 – QUALITY KPI



VISIBILITY INDICATOR

Maximum number of SKU/page

The most readable is Selgros



COMPLEXITY INDICATOR

We can easily see that LENTA is using at least 1 Consumer Advantage on almost 100% of the promoted articles, while SELGROS is using Consumer Advantages only on 6% of the promoted articles.

+15,6%

-1,3%

-15,4

%-

25,5%

-13,2

%-2,7%

-1,8%

+30,6%

-1,5%

+1,5%



COMPLEXITY INDICATOR

Number of Promo mechanisms / item

(HM,HDD, SM & CC, on Food &Non Food)

The most complex or less complex(classified by the number of products with 2 or more mechanisms)

The indicator of complexity is to indicate the level of complexity of the offers of the retailers. As a retailer will have several mechanisms on a promoted item, it will be poorly ranked.


S1 2012 vs 2011

PROMOReview


RETAILERS SUMMARY


71.90%3.30%

24.80%

BrandsPrivate labelUnbranded

MetroPressure Offer

Consumer advantagesBrands Share

Market

C&C

Quantity of WU

Quantity of WU

+6,5%

Quantity of WU

-4,5%

-1,8%

Quantity of WU


+ 0,8 pts

65.30%17.50%

17.20%


+2 pts

- 1,7 pts

63.40%

39.60%FOODNON FOOD

- 0,5 pts

Виртуальный лот 7,72%Немедленная скидка 2,21%акции по бонусной системе 0,19%Шоковая цена 5,78%Подарок 0,17%Бесплатно 0,71%Перечеркнутая цена 1,39%


SelgrosPressure Offer

Brands Share

Quantity of WU

Quantity of POQuantity of WU

Quantity of WU

Consumer advantages


Market

C&C +6,5%

+35,8%

-1,8%

71.90%3.30%

24.80%


+0,9 pts

-1,7 pts

+ 0,8 pts

56.80%

43.20% FOODNON FOOD

+3,5pts

Виртуальный лот 0,05%Немедленная скидка 4,01%акции по бонусной системе Шоковая цена 0,22%Подарок 0,25%Бесплатно 0,70%Перечеркнутая цена 1,21%


VesterPressure Offer

Brands Share

Market

Hypermarket

-0,6pt

Quantity of WU

Quantity of WU

+27,9%

Quantity of WU

+92,9%

+1%

Quantity of WU

Consumer advantages


59.90%

7.60%

32.50%BrandsPrivate labelUnbranded

+ 14,6 pts+ 1,9

pts

-16,4 pts

78.2

21.8

FOODNON FOOD

+9,1pts

Виртуальный лот 0,09%

Немедленная скидка 68,27%

акции по бонусной системе

Шоковая цена 1,61%

Подарок 0,17%

Бесплатно 0,58%

Перечеркнутая цена 8,63%


KarouselyPressure Offer

Brands Share

Market

Hypermarket

Quantity of WU

Quantity of PO

+27,9%

Quantity of WU

+26,6%

+1%

Quantity of WU

Consumer advantages


59.60%15.20%

25.30%BrandsPrivate labelUnbranded

-3,6 pts

+ 1,2 pts

+ 2,4 pts

88.6

11.4

FOODNON FOOD

+1,5pts









LentaPressure Offer

Brands Share

Quantity of WU

Quantity of WUQuantity of WU

Quantity of WU

Consumer advantages


Market

Hypermarket +27,9%

+10,3%

+1%

63.70%11.80%

24.50%


- 0,1 pts- 0,1 pts

+0,3 pts

+3,6pts

55.7

44.3 FOODNON FOOD



акции по бонусной системе 0,14%






MegamartPressure Offer

Brands Share

Quantity of WU


Quantity of WU

Consumer advantages


Market

Hypermarket +27,9%

+27%

+1%

76.90%

0.20%

22.90%


- 3,4 pts

- 0,2 pts

+ 3,6 pts

74.8

25.2

FOODNON FOOD

- 0,4 pts




Шоковая цена





O’keyPressure Offer

Brands Share

Quantity of WU


Quantity of WU

Consumer advantages


Market

Hypermarket +27,9%

+25%

+1%

58.60%

5.70%

35.70% BrandsPrivate labelUnbranded

- 0,7 pts

- 1,9 pts

+ 2,5 pts

72.3

27.7

FOODNON FOOD

+ 0,9 pts









7th ContinentPressure Offer

Brands Share

Quantity of WU


Quantity of WU

Consumer advantages


Market

Supermarket +27,3%

+10,3%

+0,7%

81.10%

6.40%

12.40%


- 3,2 pts

+ 2,5 pts

+ 0,7 pts

92.1

7.9

FOODNON FOOD

- 4,8 pts









BillaPressure Offer

Brands Share

Quantity of WU


Quantity of WU

Consumer advantages


Market

Supermarket +27,3%

+10,3%

+0,7%

76.80%

5.20%

18.00%


+ 0,8 pts

+ 0,6 pts

- 1,4 pts

92.1

7.9

FOODNON FOOD

- 0,3 pts



акции по бонусной системе 0,23%






PerekrestokPressure Offer

Brands Share

Quantity of WU


Quantity of WU

Consumer advantages


Market

Supermarket +27,3%

+10,3%

+0,7%

61.40%16.00%

22.50%


+ 0,6 pts

+ 0,1 pts

- 0,7 pts

95.60%

4.40%

FOODNON FOOD

+ 1,7 pts









DixiPressure Offer

Brands Share

Market

Discounter

Quantity of WU


+1,9%

Quantity of WU

Consumer advantages


+41,6%

+114%

84.40%

1.90% 13.70%


+ 3,7 pts

+ 0,6 pts

- 4,2 pts

90.8

9.2

FOODNON FOOD

+ 0,7 pts









MagnitPressure Offer

Brands Share

Market

Discounter

Quantity of WU


+1,9%

Quantity of WU

Consumer advantages


+41,6%

+18,9%

74.50%

16.70%

8.80%


- 13,5 pts

+ 3,3 pts

+ 10,3 pts

96.40%

3.40%

FOODNON FOOD

+ 16,9 pts








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Business

Which retailer decided to invest more in regional promo operations? Who is decreasing the average virtual price in leaflets? Which are the top promo mechanisms in 2012? Find much more