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]