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: 20th January to 3rd 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. Store Equity Index 0 10 3 No-one’s favorite No-one recommends
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.
0 10 3
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

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

7. Demographic profile of Shoppers
Numbers represent difference from profile of all respondents
% All Respondents
Sheng
Siong
Shop
n Save
Cold
Storage
FairPrice
Carrefour
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:
1 - 3
4 - 5
6 +
Giant
69%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)

8. Demographic profile of Shoppers
Numbers represent difference from profile of all respondents
Sheng
Siong
Shop
n Save
Cold
Storage
% All Respondents
FairPrice
Giant
Carrefour
Gender:
Male
Female
Age:
Age 24 or less
25-34 years old
35-39 years old
40-49 years old
50-65 years old
Household Income
Low (up to S$2K)
Middle (S$2~6K)
High (above S$6K)
Not disclosed
44%
56% 8%
22%
13%
29%
28%
17%
57%
23% 3%
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)
63% of shoppers at Cold Storage are High Income shoppers; i.e., 40% points above the respondent population proportion (23%)

9. The loyalty pyramid - FairPrice
+1: The proportion of respondents who recommend the store has increased by 1% points versus prior year
% of respondents who are …
Recommenders
Preferrers
Dependables
Regulars
Considerers
Trialists
Aware
ensuring loyalty
Salience
Relevance
Behavioural Loyalty
Emotional Loyalty +1 -1
ensuring performance -2
Use most often +1
P4W (Past 4 weeks)
providing relevance
In customers repertoire +1
achieving presence
Unaided Aided

10. Food & Grocery Store Leverage
Loyalty pyramid
Food & Grocery Store Leverage
FairPrice
Sheng Siong
Shop n Save
Cold Storage
Recommenders (%)
Preferrers (%)
Dependables (%)
Regulars (%)
Considerers (%)
Trialists (%)
Aware (%)
Non considerers (%)
Too Hard to Get to (%) +1 +4 +1 -1 +3 +1 -1 -2 +2 +2 -2 +1 +7 +8 +5
+12 +2 +6 +1 +6 +1
Unaided, Aided
Unaided, Aided
Unaided, Aided
Unaided, Aided
-12 -2 -6 -2
Base: All Supermarket shoppers (n=905)

11. Banner Image rating top 2 boxes (agree/strongly agree) rating for supermarket banners
FairPrice
Sheng Siong
Shop n Save
Cold Storage
Giant
Carrefour
Convenient to get to
83.4
42.3
63.8
43.7
26.1
19.2
Close to home
83.8
42.5
64.1
43.8
26.4
16.8
Value for money
72.3
68.7
53.5
35.8
52.0
28.0
Attractive and Interesting promotion
77.3
69.1
60.8
36.7
55.5
21.2
Low prices for most items
70.7
76.9
19.4
55.8
10.4
Own brands as a good alternative
75.4
27.6
44.9
46.8
49.3
25.6
Always have what I want in stock
59.7
44.7
44.0
46.2
76.7
One stop shop
60.9
50.7
43.0
48.5
46.3
Well presented product display
58.4
34.3
56.4
45.2
80.8
Modern and comfortable store
59.5
29.8
39.1
60.7
46.6
76.0
Better selection of quality products
53.1
36.4
54.9
41.9
74.8
Wide product range and variety
56.5
45.6
40.2
52.4
58.9
Spacious
51.7
32.3
34.6
51.3
52.7
Easy to find what I need
62.3
46.5
50.4
52.5
48.9
Staff provide good service
64.5
39.6
44.1
59.2
40.5
58.8
Loyalty program
82.4
31.4
49.9
39.4
46.0
26.6
Ease of parking
54.1
36.2
48.0
54.7
Efficient checkout counter
51.8
43.5
Good range and fresh products
65.9
40.1
46.1
57.3
45.3
58.1
High quality fresh food
63.9
36.0
44.2
61.2
43.2
60.5
Clean and hygienic store
61.5
31.3
42.2
56.2
82.3
Good quality instant cooked food
54.5
39.8

12. FairPrice shoppers – Store repertoire
Regular FairPrice shoppers who also shop regularly at other chains
Past 4 Weeks Used Stores
2003
2004
2005
2006

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 SCORE CARD Change Vs Last Year
FairPrice – Image Associations. Percent Points change in rating versus 2005
FairPrice – Image Associations SCORE CARD Change Vs Last Year
Improve
Maintain
Decline
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. Shop n Save: Store Interaction measures and store count
Shop n Save – loyalty pyramid – 2002 to 2006
2003
2004
2005
2006
Recommenders (%)
Preferrers (%)
Dependables (%)
Regulars (%)
Considerers (%)
Trialists (%)
Aware (%)
Non considerers (%)
Too Hard to Get to (%)
Unaided, Aided
Unaided, Aided
Unaided, Aided
Unaided, Aided
Stores
G-Value
NOTE: Eleven G-Value stores were re-branded as Shop n Save in 2005

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

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

19. Cold Storage, Sheng Siong and FairPrice – Image Ratings
Image Profile Analysis - Key Food & Grocery Retailers
Relative Importance
Most Least
Performance = % top two boxes out of 5 scale
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
Lowest cost structure
Low overheads
Low rent locations
Low wage structure
Sourcing from lowest cost suppliers
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 SCORE CARD Change Vs Last Year
Sheng Siong – Image Associations. Percent Points change in rating versus 2005
Sheng Siong – Image Associations SCORE CARD Change Vs Last Year
Improve
Maintain
Decline
Base: All shoppers who shop regularly at Sheng Siong

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

23. Sheng Siong

24. Shop n Save

25. FairPrice