2Methodology Entry Interviews/Pre-Shop 2,991 shoppers ages 18 years or older were screened for living in a household without members in the advertising, market research, grocery or mass merchandising industries.Interview included questions about planned category and brand purchases which were documented from shopping lists or shopper recall. General shopping information was captured as well.Shoppers were asked to return at the conclusion of their shopping trip for a follow-up exit interview with a team member.Exit Interviews/Post-ShopPost-shopping exit interviews probed on items purchased and gathered shopper perceptions of the store’s shopability and attitudes towards the shopping experience.Register receipts were scanned in order to capture and code all purchase information down to the brand level. A comparison of reported pre-store planned items and actual purchases is at the core of this study. Over 21,000 purchases were recorded.Demographic and profiling information were captured as well.Eye-TrackingA sub-set of 219 shoppers from the 2,955 who passed the screening criteria and agreed to wear eye-tracking headwear were directed to the eye-tracking team who set up each shopper prior to entering the store. Shoppers were asked to embark on their trip and shop the store as they normally would.
3Display AuditPrior to conducting the shopper intercept interviews, ethnographers logged andaudited every characteristic in each storeThe purpose was to evaluate channel trends and the overall influence of displaysThe audit also included a photo of each displays and was coded for the following:DISPLAY TYPES: -END-CAP IN-LINE POWERWING/SIDEKICK FLOOR STAND DEMO DISPLAYSLOCATION OF EACH DISPLAY:END OF AISLEBack-of-StoreCenter-of-StoreFront-of-StoreIN-AISLERACETRACKSidePLACEMENTSecondaryPrimaryCHARACTERISTICSStaticIntegratedMotionFreestandingInteractive
4EYE TRACKING METHODOLOGY To compliment the interview data, POPAI also used eye-tracking to provide additionalinsight into the shopper journeyEye tracking was done in 2 store for each Mass Merchant chain (total of 6 stores)Objectives for eye tracking were:Understand shopper behavior, in particular their reaction and interactions to/withthe displays in-storeMeasure shopper behavior as shopper naturally shopObserve and measure shopping behavior providing measurements at:Shopper PathCategory/ShelfDisplay EngagementIntegrate shopper behavior results with self-reported pre-and-post surveys
5Shopper Trip Planning: List Type Nearly half of all mass merchant shopper have some sort of a mental list, supporting the opportunity for visual in-store marketing cues to “remind” shoppers34% of all mass shoppers enter the store with no list at all, a significant difference from grocery shoppersMental ListWritten ListDigital ListNo List47% vs. 48%15% vs. 36%5% vs. 3%34% vs. 13%AE2012-Grocery2014-Mass MerchantSig. differences noted using 95% confidenceA: Total Mass E: GroceryPL3. What kind of shopping list did you prepare today?
6Television Advertising Info received in mail/newspaper Shopper Trip Planning: Pre-Store Media UseShoppers within the Mass Merchant channel do less pre-store planning and research than grocery shoppers suggesting there is more opportunity for in-store purchase decisionsTelevision Advertising2% vs. 2%Info received in mail/newspaper18% vs. 23%Info from any coupon14% vs. 25%2 for 1Info via electronic sources9% vs. 30%Store circular/Print advertising21% vs. 30%None62% vs. 55%2012-Grocery2014-Mass MerchantPL4. Which of the following did you use to plan your shopping trip today?
7Shopper Trip Planning: Category Planning TOP SPECIFICALLY MASS MERCHANT PLANNED SUB-CATEGORIES:Mass Merchant shoppers plan for a mix of both grocery and non-grocery items, howeverthe top three-planned sub-categories are within the grocery product mixInsight: Brands within these categories may potentially have to try harder to win thepurchase conversion at the shelf as they are most planned product categoriesEntrée Shelf Stable75%Fresh Fruit74%Fresh Vegetable73%2014-Mass MerchantPP1. For the first planned product mentioned did the shopper purchase the:
8Packaged Sweet Baked Goods Shopper Trip Planning: Category PlanningTOP LEAST MASS MERCHANT PLANNED CATEGORIES:A mix of both grocery and non-grocery items fall within the top least planned categoriesin the Mass channelInsight: Many of these categories are considered “non-essential” and are considered tobe “fun” categories which stress the importance of placing them on displays to call outeasily influenced shoppersPackaged Sweet Baked Goods83%Magazines97%Energy Drinks85%2014-Mass MerchantPP1. For the first planned product mentioned did the shopper purchase the:
9Shopper Trip Planning: Trip Type Prior to the shopping trip shoppers were asked to distinguish their shopping trip between the following trip types:If there were there research products with no specific purchases planned: 12%If there were at the store to pick up one or two specifically planned items: 58%If there were at the store to pick up several items: 30%Additionally shoppers were asked if they were planning to buy ANY groceries and to classify the tripStock Up15% vs. 26%Quick Trip62% vs. NAFill-In23% vs. 74%2012-Grocery2014-Mass MerchantS6. Which one of the following statements best describes the primary purpose of your overall shopping trip today?S7b. Which one of the following statements best describes the purpose of your GROCERY shopping trip today?
10Average Basket Size For Mass Trips Due to the nature of the Mass Merchant channel a variety of trips were accounted forNotably even shoppers who had no intention to purchase any products emerge fromMass stores with an average of at least 4 productsHere to browse or research products-no specific purchases planned4615Here to pick up just one or two specifically planned itemsHere to pick up several or many items that you planned to buy
11Average Basket Size Grocery Shoppers Overall Mass Merchant shoppers a larger basket size compared to their 2012 GrocerycounterpartsFill-In Trips of more than just a few items that I need before my next stock-upN/AQuick trip to get a few items that I need nowRoutine stock-up trip1119171024Average Basket Size For Grocery Shoppers2012-Grocery2014-Mass Merchant
12Trip Length & Accompanying Shoppers The fact that mean spend more time in the grocery store than mass retailers is likely not due to the greater difficult in the store, as both men and women give significantly higher ease of shopping scores to grocery store categories. Rather, the greater amount of time is probably due to the greater number of purchases made in grocery.Sig. differences noted using 95% confidenceA: Mass; E: GroceryOB2. Ethnographer: Indicate Shoppers GenderOB3. Is the shopper alone or accompanied by others? ((Single Select))OB4/5. Ethnographer, please indicate the gender/age range of the persons accompanying the shopper.CS6.1. How easy or difficult was it for you to shop the <<CS1a>> section?
13In-Store Decision Rate The In-Store Decision Rate for the Mass Merchant Channel is 82%Although the in-store decision rate continues to climb to a high of 82% the difference inchannel should be accounted for the difference. Since mass merchant shoppers spend lesstime conducting pre-store research and frequently walk in without a list it is not surprising thein-store rate is so high66%70%76%82%In-Store Decision Rate
14In-Store Decision Rate: Gender Implication: Although the gender gap is not large, women are more likely than men to make some or all of their purchase decision in the Mass Merchant Store2014 Mass Merchant24%76%2012 Grocery71%29%82%18%72%28%2014 Planned Purchase2014-In-Store Decision2012-In-Store Decision2012 Planned PurchaseSig. differences noted using 95% confidenceA: Male; B: FemalePP1. For the first planned product mentioned did the shopper purchase the:
15In-Store Decision Rate: Age Although there is not a strong correlation between age in the Mass Merchant channel, a strong correlationexists with in-store decision rates declining with age in the 2012 Grocery dataThis should be kept in mind when promoting and display products for older adultsIn-StorePlanned
162014 Top 10 Brand Mentions and Conversion Brand ConversionDespite the large variety of product choice shoppers have in the store many of today’s brandsreceived over 50% for in-store conversionHowever the absence of full conversion suggests the power of in-store marketing and the importanceof placing products on display in the store to motivate easily swayed shoppers2014 Top 10 Brand Mentions and ConversionBRANDCOMPLETED PURCHASEKraft90%Pepsi76%Kellogg’s85%Dove71%PurinaPampers68%Colgate78%Tide67%Charmin77%Coca-Cola65%
17Shopper Segments: The Formation Shoppers are clustered into segments to understand the attributes and characteristics that are mostimportant as they decide where to shop through the following steps:Shoppers were asked to rate their level of agreement with a broad set of lifestyle and shoppingcharacteristics on a five-point scaleFactor analysis was used to create shopper groups based on these lifestyle and shopping statementsThese factor groupings form the basis of the creation of shopper segments, which can be analyzedfor shopping behavior patterns, price sensitivity, retailer preferences, retailer loyalty, demographicdifferences, and opportunities for conversionThe factor analysis yielded four unique segments, each defined by their purchase driversThese segments have unique attitudes and behaviors as they relate to their shopping patterns andretailer selection
18Shopper Segments: Breakout TIME STRESSED29% vs. 27%Average Basket: $5483% In-Store Decision RateDescribe themselves as easily temptedEXPLORER23% vs. 23%Average Basket: $4482% In-Store Decision RateDescribe themselves as impulsiveTRIP PLANNER22% vs. 24%Average Basket: $4881% In-Store Decision RateDescribe themselves as controlled and restrainedBARGAIN HUNTER26% vs. 26%Average Basket: $3981% In-Store Decision RateDescribe themselves as controlled and planner2012-Grocery2014-Mass Merchant
19Display Placement Location of Display Compared to the 2012 study, one immediate difference can be seen in the placement of displaysIn 2012 over half of all displays were found in secondary locations, however in the 2014 study anoverwhelming amount are placed in the primary aisleLocation of Display
20Location In-Store of Display Display PlacementSimilar to the 2012 Grocery study, displays placed at the end of aisle remain popular withalmost half of all 2014 Mass Merchant displaysLocation In-Store of Display
21Type of Display Display Type 2012 Grocery 2014 Mass End Cap 31% 77% The 2012 Study found that Floor stands were favored more than any other type of display,however in the 2014 Mass Merchant study it was seen that end caps are overwhelming used bybrandsDisplay Type2012 Grocery2014 MassEnd Cap31%77%In-Line13%10%Powerwing/Sidekick2%6%Floor Stand52%4%Demo DisplayN/A3%In-Store Media
22Top Display Lift Categories Display Lift IndexThe average display lift for the Mass Merchant Channel is 1.5Battery17.4Makeup14.7Toothpaste7.1Candy4.1Top Display Lift Categories
23Demographics: Household Income The annual household income has decreased from the 2012 Grocery sampleWithin the Mass Merchant Channel 70% have a household income of $35,000 ormore compared to 75% in 2012Household Income
24Demographic: Education Level A shift in the education profile of shoppers can be seen with 49% of Mass Merchantshoppers holding a college degree or higher, compared to the 54% in 2012Education Level
25Demographic: Employment The full-time workforce has increased from 50% in 2012 to 54% in 2014Employment
26Demographic: Ethnicity The 2014 sample is more ethnically diverse than the 1995 and 2012 study, with65% White/Caucasian compared to 75% in 2012 and 85% in 1995