New Metrics of Shopper Marketing

TM Confidential

© 2012 VideoMining Corporation The power to see more ®

GSI-1

New Metrics of Shopper Marketing: Understanding Impact of In-Store Decisions

Chicago, Illinois October 3, 2012

Tom Sullivan President

Kyle Reynolds Former Director

Category Management & Insights

TM Confidential


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Shopper Marketing 101

If you don’t pass it,

you won’t see it,

you can’t buy it!

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Shopper Marketing: New Metrics

Tracking the

Path to Purchase

PATH

Measuring the

Moment of Truth

TIME

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Capturing Video of Shopper Behavior

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On-site servers convert video to data

Unobtrusive ceiling-mounted cameras

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GSI-1 Step 2: From Video to Data Software converts video into precise data on shopper behavior by segments

Demographic Segmentation Behavior Tracking

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From Data to Metrics and Insights

BY PRIMARY or SECONDARY LOCATION; Zone, Aisle, Department, Category

BY TRIP TYPE, MARKET SEGMENTATION, DAY TIME, BASKET SIZE

Traffic (Path)

Shopper (Path)

Shopping Time (Time)

Navigation Time (Time)

Conversion (Path, POS)

Shopper Leakage (Path, POS)

Share of Shopper (Path)

Traffic Flow/Direction (Path)

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The power to see more ® © 2012 VideoMining Corporation

VideoMining Store Panel

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PANEL

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Center Store

Department

Category

Brand

Total Store

Center Store MegaStudy™

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Center Store: Your New Priority?

75% of Total Store Sales

79% of Total Store Profit

9 Source : Re-Think the Center Store Jan 2011, Willard Bishop

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Time Is Money!

Perimeter Shopping,

5min 5 secs, 39%

Center Store

Shopping 2min 16

secs, 18%

Navigation2min, 39

secs 21%

Check-Out,

2 min 55 secs 23%

Total Trip Time (12 min 56 secs)

CS Basket $18.80

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100 Store Customers

75 Center Store Shoppers

79 Center Store Traffic

48 Center Store Buyers

27% of Customers SHOP but DON’T BUY

from Center Store

The Center Store Opportunity

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Beer/Wine: Path to Purchase

299,406 11% Share of SHOPPER

144,765 7 % Shopper Conversion

2,102,295 100 % Store Traffic

Dept. Shoppers

Aisle Traffic

Dept. Buyers

Department Traffic 712,871 42% Share of TRAFFIC

712,871 42% Share of TRAFFIC

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Moment of Truth

Beer/Wine: Navigation & Shopping Time

54.5 Seconds

21.4 Seconds

35 Minute Trip Total Shopping Trip

Dept. Shopping Time

Total Department Time

Dept. Buyers

Dept. Navigation Time

33.1 Seconds

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Traffic: The First Step to Sales

15

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25

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27

30

32

32

36

42

Personal Care

Pet Care

Health Care

Beauty Care

Baby Care

Coffee/Tea

Home Care

Breakfast

Natural/Organic

Paper Products

Bread/Roll

Soup

Snacks

Shelf Stable Beverages

Frozen

Beer & Wine

Traffic Count per 100 Store Customers

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Shoppers: The next step, engagement

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22

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20

31

0 5 10 15 20 25 30 35 40 45

Personal Care

Pet Care

Health Care

Beauty Care

Baby Care

Coffee & Tea

Home Care

Breakfast

Natural/Organic

Paper Products

Bread/Roll

Soup

Snacks


Frozen

Beer & Wine

Shoppers (engaged) Traffic (did not engage)

Counts based on per 100 customers

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2

1

1

1

3

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7

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11

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14

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0 2 4 6 8 10 12 14 16 18

Baby Care

Pet Care

Natural/Organic

Personal Care

Beauty Care

Coffee & Tea

Health Care

Home Care

Paper Products

Soup

Breakfast

Beer & Wine

Bread/Roll

Snacks

Frozen


Buyer Count Shopper Leakage

Shopper Leakage: The #1 Opportunity!

Counts based on per 100 customers

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Shopper Leakage

Two Types of Leakage:

Channel/Competitive Leakage (Traditional): Your Shopper is a category buyer, but neither shops the

category nor buys it in your store

Shopper Leakage (New): Your Shopper shopped your category but did not buy

anything on that trip

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21%

50%

14%

20%

20%

60%

50%

57%

71%

38%

50%

64%

69%

69%

75%

82%

79%

50%

86%

80%

80%

40%

50%

43%

29%

63%

50%

36%

31%

31%

25%

18%

Baby Care

Pet Care

Natural/Organic

Personal Care

Beauty Care

Coffee & Tea

Health Care

Home Care

Paper Products

Soup

Breakfast

Beer & Wine

Bread/Roll

Snacks

Frozen


Buyer Conversion % Shopper Leakage %

Shopper Leakage: The #1 Opportunity

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Shopper Conversion: The Payoff!

3.45

5.97

7.33

10.48

12.87

20.04

22.95

24.96

28.25

32.20

33.15

36.18

62.92

79.94

106.08

120.26

Natural/Organic

Personal Care

Beauty Care

Baby Care

Soup

Pet Care

Coffee & Tea

Health Care

Breakfast

Home Care

Paper Products

Bread/Roll

Snacks

SS Beverages

Frozen

Beer & Wine

Shopper Conversion $ per 100 Store Traffic

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Shopper Leakage: Follow the Money

13.26

15.30

16.08

17.13

20.04

21.45

22.12

23.88

24.15

24.96

28.25

28.60

29.32

35.36

37.56

68.72

Paper Products

Coffee & Tea

Bread/Roll

SS Beverages

Pet Care

Soup

Natural/Organic

Personal Care

Home Care

Health Care

Breakfast

Snacks

Beauty Care

Frozen

Baby Care

Beer & Wine

Shopper Leakage $ per 100 Store traffic

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20

28 30

34 34 34 35 36 36 37 39 40

44

48

55 56

0

10

20

30

40

50

60

Total Shopping Time: Time is Valuable

Total Time In Department (sec)

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

10

20

30

40

50

60

Tim

e i

n D

ep

art

men

t

Total Time in Dept (sec) Leakage pct

Shopping Time vs Leakage: Make it Count

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Bakery Shopper metric indices are strong

Department

Traffic Response Index

($/Department Traffic)

Shopper Response Index ($/Department

Shopper)

Shopper Penetration Index

Time Efficiency Index ($/minute)

Space Productivity Index ($/ft)

Baby Care 74 130 39 132 67

Baking 110 101 131 106 207

Beauty Care 55 83 67 86 67

Books/Magazines/Cards 145 84 73 41 46

Bread/Roll 445 126 126 111 228

Breakfast 174 127 88 104 108

Canned Food 103 96 132 105 99

Cocoa/Coffee/Tea 74 111 93 145 126

Condiments/Gravies/Sauces 113 101 150 105 152

Ethnic Food 32 48 56 54 78

Frozen 148 130 149 129 106

Health Care 87 110 120 103 89

Home Care 77 97 115 103 85

Natural/Organic 16 30 25 50 82

Shelf Stable Beverages 190 121 148 114 125

Paper Products 129 120 135 124 110

Personal Care 84 94 64 90 71

Pet Care 97 153 90 145 73

Snacks 106 89 134 90 103

Soup 84 75 83 75 106

Total Alcoholic Beverages 555 400 124 362 342

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Center Store Shopper Behavior Scorecard

The index has been generated based on center store average excluding Total Alcoholic Beverages and Bread due to high basket size and frequent purchases, respectively.

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Center Store

Department

Category

Brand

Total Store

Center Store MegaStudy™

Actionable Insights: Bakery Department

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Fresh Bakery Category Metrics

# 1 Household Penetration

# 2 Purchase Frequency

Most Frequently Consumed

# 3 Dollar Sales

# 2 Profit Generator (#1 Center Store)

An Efficient Use of Real Estate

Heavily concentrated in Grocery Channel

Sandwiches

Valuable Transaction Builder

# 1 Meal Solution at both Lunch and Dinner

Before we partnered with VideoMining, we had some great information about the Bakery Category, but it wasn’t very actionable

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The addition of VideoMining to our insights toolbox unlocked a world of new possibilities to help us build our category story

Store Traffic 338,329

Buyers 40,170

Category Traffic 112,351

Shoppers 52,469

33%

47%

76%

Face Recognition Software Identifies and Tracks Shoppers

Records when

people stop and

face the shelf and

if they buy.

purchase

Yields Heat Maps of Shopper Behavior Robust Conversion Analytics

Sales Advantage (IRI)

Assortment Drivers (IRI)

Open Panel Access (IRI)

Featurevision

dunnhumby

TNS Shopper 360

Spectra

(IRI + Nielsen data)

VideoMining

Dechert-Hampe

Decision Insights

Miller Zell

Kantar

Symphony IRI

Willard Bishop

NPD

Mintel

Yankelovich

N’L Grocery Assc.

Synovate

Nielsen

Smart Revenue

Research Partners Tools

Insight Providers

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29%

37%

41%

42%

45%

50%

55%

58%

63%

68%

79%

Jam/Jelly

Water

RTE Soup

Hot Cereal

Condensed Soup

Salty Snacks

Breakfast Bars

RTE Breakfast

Chilled Juice

SS Juice

Bread

Source: Video Mining 2010, Major West Coast Retailer

Bakery has the highest Shopper to Buyer Conversion rate*

Shopper-to-Buyer Conversion: Benchmark Categories

*“Shoppers” refers to the store patrons who actively interacted with the category, including those who had visual as well as physical interaction.

“Buyers” refers to the shoppers who made a purchase from the category, and is tied to POS data.

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Source: Video Mining East Coast Retailer December 2010, Center Store

But only 55% of Shoppers who enter the store enter the Bread Aisle

45% of store

traffic

not exposed

to Bakery

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Store Traffic

41%

27%

Bread Aisle Traffic

Retailer A

Bakery

on Perimeter

Bakery aisle traffic 52% higher when located on the perimeter

+ 52%

Retailer B

Bakery

on Interior

Source: Video Mining 2010

Store Traffic

Bread Aisle Traffic

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71% Shoppers enter from BACK…

Beer Snacks

Charcoal,

Summer Picnic Bread/Rolls

Sweet

Goods

Front of Store Back of Store

25%

46%

7%

22%

Direction of Entry

Beer Snacks

Charcoal,

Summer Picnic Bread/Rolls

Sweet

Goods

40%

29%

8%

24%

Direction of Exit

69% Shoppers

exit to BACK.

Shopping patterns have changed

Source: Video Mining East Coast Retailer December 2009

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228 231 229212

315

72

Sara Lee Keebler Nabisco Lays Pepsi Coke

Buyers

End Cap Performance Comparison

Source: Video Mining End Cap Study July 2010

Routine Categories can drive units on end-caps

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Shoppers

Store Traffic

Buyers

Bread/Rolls Traffic

Baseline (no endcap)

Bread Aisle Performance

11%

Shoppers

Store Traffic

Buyers

Bread/Roll Traffic

Test (with endcap)

11%

And it’s all incremental to the Bread Aisle

In other words, the Bakery End Cap was INCREMENTAL to the Bread Aisle

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34 34 34 35 36 36 37 39 40

44

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55 56

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20

30

40

50

60

Bakery Category taking too long to shop

Total Time In Department (sec)

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Our Recommendation: Aisle Reinvention

Phase I - Organize

Organize the aisle based on how consumers shop

Segment sets preferred to vendor sets

Correct segment flow

Phase II - Optimize

Optimize assortment

Duplication reduction

D.O.S. driven space allocations

Phase III - Innovate

Occasion based merchandising

Innovative fixtures / Signage and visual cues

Aisle End caps

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Impact of Category Reset

Significant drop off following reset from type to vendor set

Weekly shopper-buyer

conversion average = 61% Reset period: significantly lower

shoppers and buyers (weeks 48-51)

Weekly Path to Purchase Trend: Bread

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41.9%

37.1%

27.0% 26.9%

19.1%

10.8% 9.6% 8.4% 7.2% 6.6% 6.6% 6.6%

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VideoMining was instrumental in helping Sara Lee catapult into the top 10 for Insights and CatMan

Source: Kantar Retail PowerRanking 2010

Which manufacturers provide you with the most helpful

consumer/shopper insights and category management? (% Retailers Rating Among Top 3 Manufacturers)

-6.1 +0.8 -1.9 +1.6 +0.8 -8.5 +3.7 +4.3 +2.0 -5.9 +1.3 +1.5

Sara Lee moved from 16th place in ’09 to 8th place in ‘10

2010 PoweRanking®

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GSI-1

New Metrics of Shopper Marketing: Understanding Impact of In-Store Decisions

Chicago, Illinois October 3, 2012

Tom Sullivan President

Kyle Reynolds Former Director

Category Management & Insights

Documents

New Metrics of Shopper Marketing