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ShopperTrends Food & Grocery Shopping. Case Study Analyse the research findings for the 2006 Singapore Shopper Trends study, and recommend the course.

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Presentation on theme: "ShopperTrends Food & Grocery Shopping. Case Study Analyse the research findings for the 2006 Singapore Shopper Trends study, and recommend the course."— Presentation transcript:

1 ShopperTrends Food & Grocery Shopping

2 Case Study Analyse the research findings for the 2006 Singapore Shopper Trends study, and recommend the course of action for each of the following retail chains: – Sheng Siong – Shop n Save – FairPrice Your recommendations should be supported by the relevant research findings.

3 Research Methodology City Coverage: Singapore Target Respondent: Males/females grocery shoppers aged years Interview methodology: Face-to-face interviews Sampling method: Random sampling with quotas for age, gender and race Sample size : 1,300 Fieldwork Period: 20 th January to 3 rd February 2006 Questionnaire length: 45 mins Weighting variables: Data weighted proportional to national ‘main grocery shopper’ statistics based on age / gender / location

4 Food & Grocery Shopping

5 > The ACNielsen Brand Equity Index produces scores in range of 0 to 10; the higher the better. > Zero on this scale represents the lowest Index, meaning that a brand has no loyal customers, and nobody would pay any more than the cheapest price on the market. > Ten would be the highest Index, where everybody in the market is a loyal customer, and would willingly pay a significant price premium. > In competitive markets a score of 3+ is very strong No-one’s favorite No-one recommends No price premium None willing to travel to store Everyone’s favorite Everyone recommends Price acceptable to all All willing to travel to store Store Equity Index

6 Base: All Supermarket / Hypermarket shoppers (n=905) Supermarket / Hypermarket Store Equity Indices vs 2006 Store equity of key chains

7 % All Respondents Race Chinese Malay Others Occupation: PMEBs Other White Collar Student Blue Collar Housewives Not working Marital Status: Single Married/Others No of people in HH: % 14% 17% 25% 19% 4% 23% 21% 7% 16% 84% 33% 51% 17% Base: Those who visit store most often. FairPrice (n=563), Sheng Shiong (n=121), Shop n Save (n=98), Cold Storage (n=43), Giant (n=44) Demographic profile of Shoppers Sheng Siong FairPrice Cold Storage Shop n Save Giant Carrefour Numbers represent difference from profile of all respondents

8 44% 56% 8% 22% 13% 29% 28% 17% 57% 23% 3% % All Respondents Numbers represent difference from profile of all respondents Base: Those who visit store most often. FairPrice (n=563), Sheng Siong (n=121), Shop n Save (n=98), Cold Storage (n=43), Giant (n=44) Sheng Siong FairPrice Cold Storage Shop n Save Gender: Male Female Age: Age 24 or less years old years old years old years old Household Income Low (up to S$2K) Middle (S$2~6K) High (above S$6K) Not disclosed Demographic profile of Shoppers Giant Carrefour 63% of shoppers at Cold Storage are High Income shoppers; i.e., 40% points above the respondent population proportion (23%)

9 Recommenders Preferrers Dependables Regulars Considerers Trialists Aware In customers repertoire Use most often The loyalty pyramid - FairPrice achieving presence providing relevance ensuring performance ensuring loyalty % of respondents who are … Salience Relevance Behavioural Loyalty Emotional Loyalty Unaided Aided P4W (Past 4 weeks) +1: The proportion of respondents who recommend the store has increased by 1% points versus prior year

10 Recommenders (%) Preferrers (%) Dependables (%) Regulars (%) Considerers (%) Trialists (%) Aware (%) Non considerers (%) Too Hard to Get to (%) Base: All Supermarket shoppers (n=905) FairPrice Cold StorageSheng SiongShop n Save Food & Grocery Store Leverage Loyalty pyramid Unaided, Aided +1

11 Banner Image rating top 2 boxes (agree/strongly agree) rating for supermarket banners FairPriceSheng SiongShop n SaveCold StorageGiantCarrefour Convenient to get to Close to home Value for money Attractive and Interesting promotion Low prices for most items Own brands as a good alternative Always have what I want in stock One stop shop Well presented product display Modern and comfortable store Better selection of quality products Wide product range and variety Spacious Easy to find what I need Staff provide good service Loyalty program Ease of parking Efficient checkout counter Good range and fresh products High quality fresh food Clean and hygienic store Good quality instant cooked food

12 Regular FairPrice shoppers who also shop regularly at other chains 2003 Past 4 Weeks Used Stores 2006 FairPrice shoppers – Store repertoire

13 FairPrice Faced with hyperinflation during the 1973 oil crisis, the National Trades Union Congress launched NTUC Welcome, a supermarket co-operative to contain prices of essential food products. This initiative was strongly supported by the government and the then Prime Minister Lee Kuan Yew officially opened NTUC Welcome NTUC Welcome was later renamed FairPrice FairPrice continues with its original social mission to help moderate cost of living for low income households FairPrice has been experiencing rapid growth as shoppers migrate from lower to the upper trade. (Share of Singapore’s lower trade had shrunk from over 60% in 1996 to about 20% in 2006) Large base of members (50% of homes) who benefit from loyalty programs

14 FairPrice – Image Associations. Percent Points change in rating versus 2005 Improve Maintain Decline FairPrice – Image Associations SCORE CARD Change Vs Last Year Base: All shoppers who shop regularly at FairPrice

15 Shop n Save Acquired by Dairy Farm International (DFI) in 2003 G-Value, another DFI chain, re-branded Shop n Save in 2005, taking the store count of the newly acquired chain from 35 to 46 stores SnS stores located at high traffic locations SnS not as profitable as some of DFI’s other assets

16 Recommenders (%) Preferrers (%) Dependables (%) Regulars (%) Considerers (%) Trialists (%) Aware (%) Non considerers (%) Too Hard to Get to (%) Shop n Save – loyalty pyramid – 2002 to Shop n Save: Store Interaction measures and store count Stores G-Value NOTE: Eleven G-Value stores were re-branded as Shop n Save in 2005 Unaided, Aided

17 Base: All shoppers who shop regularly at Shop n Save Shop n Save – Image Associations Percent Points change in rating versus 2005 Improve Maintain Decline Shop n Save – Image Associations SCORE CARD Change Vs Last Year

18 Performance = % top two boxes out of 5 scale Image Profile Analysis - Key Food & Grocery Retailers Shop n Save and FairPrice: Image ratings MostLeast Relative Importance Base: Respondents who shop regularly at store

19 Image Profile Analysis - Key Food & Grocery Retailers Performance = % top two boxes out of 5 scale Cold Storage, Sheng Siong and FairPrice – Image Ratings MostLeast Relative Importance Base: Respondents who shop regularly at store

20 Sheng Siong Founded in 1985 Lim Hock Chee was the key thinker, strategist and showman at Sheng Siong Low price strategy through cost control 1.Lowest cost structure 2.Low overheads 3.Low rent locations 4.Low wage structure 5.Sourcing from lowest cost suppliers 6.No frills merchandising / shop environment In 2005, operated 16 supermarkets and 1 hypermarket located mainly in neighbourhood suburbs Invests in logistics and IT. Robust electronic procurement system

21 Sheng Siong – Image Associations. Percent Points change in rating versus 2005 Improve Maintain Decline Sheng Siong – Image Associations SCORE CARD Change Vs Last Year Base: All shoppers who shop regularly at Sheng Siong

22 Lowest Priced Supermarket / Hypermarket Stores (Perceived) % of respondents Base: All supermarket/Hypermarket Respondents (N=866) Perception on lowest price Q: Which store offers lowest price for your favourite food and grocery brands?

23 Sheng Siong

24 Shop n Save

25 FairPrice

26


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