1. Maximising NPD through Understanding Shoppers Prepared By: Emilie Coles - Director, TNS Magasin March 2009

2. © Copyright TNS 2007 create the idea ATL experience CONSUME As an industry, we excel at creating and building great brands!

3. © Copyright TNS 2007 86% of npd fails within one year Source: ac nielsen I don’t need to tell you……

4. © Copyright TNS 2007 create the idea ATL find and buy ! STORE experience CONSUME We don’t always take into account the store……

5. © Copyright TNS 2007 Shoppers do not always find what they are looking for, let alone what they are not looking for!……

6. © Copyright TNS 2007 Getting new products to stand out is a challenge!

7. © Copyright TNS 2007 If life wasn’t difficult enough, we are in a recession!

8. © Copyright TNS 2007 What impact is this having on Food and Drink?

9. © Copyright TNS 2007 consumer confidence and sentiment already heavily affected… Source: TNS / Nationwide Consumer Confidence Index *Since May 2004 (Not seasonally adjusted) Consumer Confidence Index

10. © Copyright TNS 2007 …but the sentiment is not hitting food yet…. We asked: ‘How would you cut back on spending?’

11. © Copyright TNS 2007 ‘High St convenience’ = indpendents, symbols, Wilkinsons, chemists, greengrocers etc. High street convenience is losing out...

12. © Copyright TNS 2007 As shoppers switch to Hypermarkets

13. © Copyright TNS 2007 And Hypers lose to discounters…

14. © Copyright TNS 2007 The ‘Budget’ price band sees greatest growth rate this year – signs of shoppers trading down… Growth in RST sales (Packs)

15. © Copyright TNS 2007 Private brands and exclusive products generate between ¼ to almost ½ of sales for some leading retailers And are growing more than 2x as fast as all food sales in recent years Estimated Share of Sales from Private Label Sources: Company reports, PLMA, Private Label magazine, and other trade press research. Loblaws (Canada) SafewayAlbert- sons KrogerMeijerA&PFood Lion 35% 29% 17% 25% 23% 17% TargetTesco 46% 45% 37% Wal-Mart Private label share is growing…and will be a threat

16. © Copyright TNS 2007 fmcg total 2) recession What is the reaction of industry and trade on advertising spend ? market leaders are cyclical and retailers anti-cyclical advertising spend 2001=100 2001 2002 2003 2004 2005 2006 2007 2008 source: Thomson Media Control; Nielsen Media Research 1) 21 market leaders from groups, only TV 2) only TV3) trade for fmcg, all media without dailies, leaflets 4) REWE campaign5) Plus campaign6) REAL-TV-campaign, Lidl TV-campaign 7) 32 premium brands only TV 6/ premium brand 7) 5) market leader 1) retailers 3) IIIIIIIV 108999587 market leaders reduce advertising spend – especially in the 2 nd half of the year 4)

17. © Copyright TNS 2007 what does this mean? Need to prove role of brands in-store & maximise our spend! Trading down to private label O.L Grows Home Purchase Less brand power ATL store Understand Shoppers!

18. © Copyright TNS 2007 what are we dealing with in-store?

19. © Copyright TNS 2007 80% shopping is done in beta mode… sub conscious low involvement

20. © Copyright TNS 2007 this makes it difficult for NPD to have real cut though

21. © Copyright TNS 2007 Shopper principles for successful NPD 1.Use a consistent visual cue TTL 2.Launch in the right place in-store and on shelf 3.Activate using the right mechanics at the right time 4.Ensure pack stands out/is recognisable

22. © Copyright TNS 2007 1. Create a visual cue that can be communicated TTL

23. © Copyright TNS 2007 a visual cue could could be….. logo shape icon colour

24. © Copyright TNS 2007 a visual cue links short term and long term memory

25. © Copyright TNS 2007 Establish what the visual cue is for the brand and communicate this in the entire campaign Need Purchase Home Purchase Visual Cue

26. © Copyright TNS 2007 Gillette Fusion: visual trigger – orange & blue = stand out TTL Press (lads mag) TV in-store on-pack

27. © Copyright TNS 2007 create the idea Find and buy ! Experience

28. © Copyright TNS 2007 create the idea Find and buy ! Experience

29. © Copyright TNS 2007 2. Launch NPD in the right place in-store

30. © Copyright TNS 2007 There are hot and cold spots in stores Store penetration should influence where we launch new products COLD

31. © Copyright TNS 2007 Taking into account mindset as well… Great traffic Great location?

32. © Copyright TNS 2007 Two thirds of passing traffic will not interact Gondola ends offer a prime location for new product launches This space could be better utilised

33. © Copyright TNS 2007 Doesn’t have to be so complicated Shopper flow

34. © Copyright TNS 2007 Launch NPD in the right place on shelf

35. © Copyright TNS 2007 Most categories have a visual hot spot on the fixture known as the “diamond”

36. © Copyright TNS 2007 This is driven by eye movement ……. We look 15-30 degrees downwards, search Horizontally, in a 1-2 m vision cone 1-2 metres SEARCH HORIZONTALLY 15-30 degrees

37. © Copyright TNS 2007 37 The diamond occurs around signpost brands…… signpost

38. © Copyright TNS 2007 38 Locate NPD in the diamond hot spot to gain visibility signpost NPD

39. © Copyright TNS 2007 39 Support further with on shelf highlighters – e.g picture framing signpost NPD

40. © Copyright TNS 2007 3. Activate NPD in the right place at the right time

41. © Copyright TNS 2007 Is this the right place?

42. © Copyright TNS 2007 Eye Level??

43. © Copyright TNS 2007 Content relative to time …

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47. © Copyright TNS 2007 Right format right content? Babylicous 12345

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51. © Copyright TNS 2007 Right format, right content?

52. © Copyright TNS 2007 Right format, right content?

53. © Copyright TNS 2007 Visit/Purchase on Impulse Planned to SKU High Engagement/Time Spend Low Engagement/Time Spend Confusion/ Complex Decision Auto Pilot Milk Semi- Impulse Cleaning Involving/ Engaging Skincare NPD execution needs to take account of category roles Yoghurts

54. © Copyright TNS 2007 Need Purchase Home Purchase Role of the touchpoints for new product launch will change depending on the category ….. T.V & Press Door Drops Coupons Engaged Audience Dis- Engaged Audience Simple visual cues Linking to ATL Clear signposting Product Stand Out Pre-store shop the store shop the category Functional Benefits

55. © Copyright TNS 2007 Need Purchase Home Purchase Role of the touchpoints for new product launch will change depending on the category ….. T.V & Press Door Drops Coupons Engaged Audience Linking to ATL Theatre Communication Education Pre-store shop the store shop the category Emotional Benefits skin

56. © Copyright TNS 2007 4. Ensure pack has stand out through strong colourshape & matches shopping style

57. © Copyright TNS 2007 Shoppers recognise products using colour and shape Over 2/3rds fixations are on colour General Learning

58. © Copyright TNS 2007 Simple, Ownable Colourshape – has stand out

59. © Copyright TNS 2007 Engaging Searching for on pack information/education Staple Commodities Packaging acts as a signpost

60. © Copyright TNS 2007 In Summary… To maximise the success of new products, we must consider the role of the store as a touchpoint and how people shop our categories There are some clear actions we can take to maximise the success of our launches: 1. Use a consistent visual cue TTL – simple and clear 2.Launch in the right place in-store and on shelf Gondola end execution Eye level & signposting 3.Activate using the right mechanics at the right time Format, content and location 4. Ensure pack stands out Colourshape Right cues, right category!

61. © Copyright TNS 2007 ….Shopper Behaviour Properly Explained TNS Magasin Kings Head Place Market Harborough LEICS email: emilie.coles@tns-global.com