OPPORTUNITIES FOR FMCG INDUSTRY AND RETAIL IN BELGIUM

CHALLENGES/OPPORTUNITIES FOR FMCG INDUSTRY AND RETAIL IN BELGIUM SALES TEAM AWARDS 2015 STORECHECK M A G A Z I N E CHALLENGES OPPORTUNITIES THE C...
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CHALLENGES/OPPORTUNITIES

FOR FMCG INDUSTRY AND RETAIL IN BELGIUM SALES TEAM AWARDS 2015 STORECHECK M A G A Z I N E

CHALLENGES OPPORTUNITIES

THE CHANGING RETAIL ENVIRONMENT

Retailer trends

SLOW GROWING FMCG MARKET

Retailer trends

OMNI -CHANNEL • Omni-channel strategy & e-commerce

• Social media • Online marketing • Store experience & online experience

Retailer trends

MORE COMPETITION more shops deep promotions on the traffic building brands that influence price perception.

Retailer trends

BLURRING OF CHANNELS NON – PERISHABLE BASIC FMCG increased shift to discounts, non food channels and e-commerce.

Retailer trends

BLURRING OF CHANNELS Fresh categories will become even more important for supermarkets as a source of differentiation

demographic trends

URBAN FORMATS In 2050 2/3 of the global population will live in urban centers City Formats needed Ethnic assortments

Retailer trends

VARIOUS cost control Regulation & compliance Shifting consumer behavior Sourcing Utilizing big data, business intelligence

Demographic trends

INCOME DISPARITY

2011 Flanders 30.1 , Brussels 36,5, Wallonia 31,1

Source / Eurostat 2014

Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line.

Demographic trends

INCOME DISPARITY ( Gini index Brussels 36,5 , Belgium 31 )

Retail Formats needed for UPMARKET Brands / concepts needed for UPMARKET

Retail Formats needed for DOWNMARKET Brands / concepts needed for DOWNMARKET

Retailer trends

SHOPPER DATA LOYALTY CARD loyalty cards and basket analysis combined with supplier category expertise and predictive analytics allows to develop the holistic customer view we need to create highly relevant offerings for the distinct target groups.

HOW TO CREATE VALUE

1. CO - OPTITION The theory of co-optition which aims to combine competition and cooperation Barry Nalebuff of Yale school of management and Adam Brandenburger of Harvard Business School ,1996

COOPERATION IS HOW WE CREATE VALUE , HOW WE CREATE THE PIE

COMPETITION IS HOW WE CAPTURE VALUE , HOW WE GRAB OUR SLICE OF THE PIE

Category Management

Brand

Assortment Category

Innovations and line extensions

CATEGORY

consumerprice in line with

tactical use of consumerprice

positioning

NB NB+PL PL SUPPLIER

image communication and LT marketing

KAM Buyer

MANUFACTURER

limited shelf space

deep promotions for traffic

RETAIL INTEGRATED SUPERMARKETS DISCCOUNTERS

short term action communication

focussed on one brand

many categories and brands

SHOPPER Best place in the shop

only brands that are best for the revenu, margin and shopformat

Full distribution

Exclusivity

Shopper Marketing

FRANCHISE AND AFFILIATES

Category Management

Brand

Assortment Category

Innovations and line extensions

MANUFACTURER NB NB+PL PL SUPPLIER

limited shelf space

CATEGORY

consumerprice in line with

tactical use of consumerprice

positioning

deep promotions for traffic

image communication and LT marketing

short term action communication

focussed on one brand

many categories and brands

RETAIL INTEGRATED SUPERMARKETS DISCCOUNTERS

SHOPPER Best place in the shop

FRANCHISE AND AFFILIATES

only brands that are best for the revenu, margin and shopformat

Full distribution

Exclusivity

Shopper Marketing

Read ‘From selling to co-creating’ , Regis Lemmens, Bill Donaldson, Javier marcos

CO-OPTITION MIRROR CUSTOMER

Source /GROCERY MANUFACTURERS ASSOCIATION, Nielsen, McKinsey & company, 2010 customer and channel management survey

CO-OPTITION COLLABORATION IS NOT ENOUGH

Source /GROCERY MANUFACTURERS ASSOCIATION, Nielsen, McKinsey & company, 2010 customer and channel management survey

CO-OPTITION STRATEGIC ACCOUNT MANAGEMENT

Source /GROCERY MANUFACTURERS ASSOCIATION, Nielsen, McKinsey & company, 2010 customer and channel management survey

2. PREDICTIVE ANALYTICS Most retailers’ perceptions of their customers are incomplete. They rely on such rudimentary demographic data as loyalty cards and basket analysis, ad hoc qualitative assessments or generalized secondary market research—not enough to develop the holistic customer view they need to create highly relevant offerings. But by supplementing their point-of-sale data with primary research and predictive analytics, they would be able to segment customers into more robust behavioral profiles, incorporating not only today’s core customer base but also the shoppers who will drive tomorrow’s growth.

PREDICTIVE ANALYTICS



PREDICTIVE ANALYTICS analytics to deliver hard savings and/or increase the effectiveness of your marketing investment.

PREDICTIVE ANALYTICS Where to invest your marketing € ?

3. MEET THE CHANGING NEEDS OF CHANGING SHOPPERS

Shopper needs

INSPIRE Need for information Need for inspiration More qualified staff

Shopper needs

SIMPLIFY Easily find what I want Never forget what I need to buy Comfort when shopping Relaxing shopping experience

Shopper needs

TIME & COST Spend less time cooking Make fewer food shopping trips Shop whenever it suits me Get shopping delivered when I want Informed about promos, optimize spending, real rewards, lowest price guarantee

Shopper needs

VALUES Local sourcing Reduce carbon footprint More social responsibility Fair trade and fair production Animal welfare Authentic products trust

Shopper needs

ME

AND MY FAMILY

Healthy and tasty food Advice on what to eat Healthy food for kids Functional benefits Stay young and alert Ethnic Customized for me

Shopper needs

ME

AND MY FAMILY

Healthy and tasty food Advice on what to eat Healthy food for kids Functional benefits Stay young and alert Ethnic Customized for me

CREATE VALUE

INSPIRE ME

N E E D S

SIMPLIFY

TIME

Retailer •Format Category •Mission objectives roles

ME

MY VALUES

opportunity

Target group opportunity • MVShopper • MVCategory

Business plan Concept, Marketing mix Execution Follow -up

JOINING FORCES TO CREATE VALUE

IMPORTANCE OF NEED FOR KEY TARGET GROUP

FIT WITH THE RETAIL STRATEGY

POTENTIAL SOURCE OF DIFFERENTIATION

COMPLEXITY OF IMPLEMENTATION

QUANTIFY (€) THE OPPPORTUNITY

Join forces

SUCCESS FOR RETAIL AND MANUFACTURERS DEPENDS ON HOW WELL THEY CAN EXPAND THEIR COMPETENCIES, AND ON THEIR ABILITY TO JOIN FORCES Symbiotic Branding, Samar Birwadker, Landor associates

Dirk Vanderveken Managing Consultant 0032 (0) 470 10 25 17 [email protected]