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1 How to sell more groceries by focusing on trip missions By Bill Bishop Chief Architect, Brick Meets Click November 10, 2015 We help make sense of what's happening in grocery retail today and provide guidance on what to do about it. Visit us at brickmeeetsclick.com

How to sell more groceries by focusing on trip mission

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Page 1: How to sell more groceries by focusing on trip mission

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How to sell more groceries by

focusing on trip missions

By Bill Bishop Chief Architect, Brick Meets Click

November 10, 2015

We help make sense of what's happening in grocery retail today and provide guidance on what to do about it. Visit us at brickmeeetsclick.com

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How to best define shopping occasions?

Based on $ spent • Stock up • Routine • Fill-in

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And it’s important to see that digital is changing whole experience

©2015 BRICK MEETS CLICKNOV 2015

Today the focus is online grocery

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Time for a new equation

Total experience

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Digital & online expand the possibilities

> More information

> More services

UNLOCKS MORE OPTIONS

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To win todayYou have to compete for each trip

• Just 1 approach to building sales won’t work

• Serve the “WHY” (that drives a specific shopping occasion)

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Six new “digitally enhanced” trip missions

What’s different Build w/new tools Often more

efficient Can start the

occasion outside the store

Stick to my list/budget Take my order

Need it “just in time” Help me host

Help me find better options

Shop when I want/can

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Mission #1

> Stick to my list/budgetCustomer wants control and a planned shopping trip

• Wants to minimize impulse purchases; doesn't want to spend/buy more than they have to.

• Focus is on planned/long-list shopping.

< OpportunityKeep the cost of the basket competitive and fees low, accept coupons, and make it simple to shop from previous trips.

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Mission #2

> Take my orderCustomer wants to get prepared food

• Rapidly shifting online, led by many food service players.

• Changes the nature of ordering – order on the go, take the time I need, or just my M.O.

• Usually for limited # of items, but with opportunities to bundle.

< OpportunityMake it convenient for them to pick-up and pay, often by skipping the normal line.

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Mission #3

> Need it “just in time”

>Opportunity Decide how you’ll compete for this occasion.Will you partner w/ a 3rd party?

Customer has an urgent requirement and doesn’t want to wait longer than they have to

• Used to a C-store purchase, but quickly moving to delivery.

• Want the items in < 2 hours and speed trumps cost.

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Mission #4

> Help me hostCustomer is planning an event: could be big or small

• Typically requires 2 trips.• Online planning/ordering eliminates first trip.• Typically, larger rings and chance to cross sell

with other departments.

< OpportunityMakes it easy to plan, customize, place an order, and know it will be ready when promised.

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Mission #5

> Help me find better optionsCustomer is in problem solving mode

• Looking for specific products, services, or information that are “better for me and my family”.

• Includes: meal kits, subscriptions/auto-replenishment, etc.

< OpportunityMake it easier for this customer to find the products/services that fit their lifestyle, priorities, or dietary needs.

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Mission #6

> Shop when I want Customer wants to time shift

• Attracted to the ability to order online where and when they want/can.

• Focus is on making shopping fit into their lifestyle.

• Typically includes full range of HH needs.

< OpportunityProvide mobile-friendly ways to order online and schedule a convenient pick-up or delivery.

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What’s next?Execute trip mission centric

marketing/merchandising

1. Identify core customers’ top trip missions.

2. Build shopper value proposition around those trip missions.

3. Develop a blended offline/online shopping experience. Wins more business done in top trip mission occasions. Delivers parity experience for other important trip missions Plays down occasions where not practical to compete.