Ld & Co

Hoe van trade marketing een positieve hefboom maken in deze crisistijd? Comment faire du trade marketing un levier positif en ces temps de crise? Dinsdag 24 maart 2009, om 13u Pullman Brussels Airport Hotel, Diegem Mardi 24 mars 2009, à 13 heures Pullman Brussels Airport Hotel, Diegem

Trade Marketing in tijden van crisis

Trade Marketing en temps de crise

2

Economic recession and consumer strategies

Consumer Strategies Basket - size

Buy different ?

Volume per occasion Purchase frequency

Different mix ? Shift to discounters ? Shift to private label ?

Consumer response # 1: Buy different ? Yes, but… FMCG+Fresh € growth +6.05%

More Households +0.95%

Calendar effect +0.84%

Value growth +5.1

Price effect +5.32%

Basket volume per trip -5.2%

Volume effect -1.1%

Shopping trips +4.12%

Consumer response # 1: Buy different ? Yes, but… One need shop (fresh)

6,5 6,7 7,0 7,3

More small trips 10,4 10,1 10,6 11,4 9,9 10,1 10,3 10

One need shop (general) Top up shop (fresh)

18,3 18,5 18,6 19

Top up shop (general)

28,7 29,4 28,1 28

Mainstream 18,8 19 18,3 17,5

Stock up shops All round stock up shop % baskets CY 06

7,3 7,2 7,0 6,8 % baskets Mat jun 07

% baskets CY 07

Less big trips stock-up all round stock-up % baskets Mat jun 08

Consumer response # 1: Buy different ? Yes, but… FMCG+Fresh € growth +6.05%

More Households +0.95%

Calendar effect +0.84%

Value growth +5.1

Price effect +5.32%

Basket volume per trip -5.2%

Volume effect -1.1%

Shopping trips +4.12%

Consumer response # 1: Buy different ? Yes, but…

Basket volume per trip -5.2%

Average basket size # categories in basket

Volume of category per purchase occasion

# purchase occasions per category

136 categories analyzed

136 categories analyzed

From caddy to basket ? Volume + ? Increase frequency ?

Consumer response # 1: Buy different ? Yes, but…

The average number of unique SKU's in the basket 2007 9 8,5

8,7 8,6 8,4 8,1

8,2 8,2

2008 s Price

8,9 8,7

8,7

8,4

8,7 8,3

8,6 8,3

8,4 8,2

au jul gu i se stu pt s em be ok r to no b e ve r m de be ce r m be r

ja nu ar fe i br ua ri m aa rt ap ril m ei ju ni

8

8,3

Consumer response # 1: Buy different ? Yes, but…

Volume per trip -5.2%

Average basket size # categories in basket

Volume of category per purchase occasion

# purchase occasions per category

136 categories analyzed

136 categories analyzed

Stockpiling

Increased volume per purchase occasion categories

Decreased volume per purchase occasions categories

85 (62%)

51 (38%)

Consumer response # 1: Buy different ? Yes, but…

Basket volume per trip -5.2%

Average basket size # categories in basket

Volume of category per purchase occasion

# purchase occasions per category

136 categories analyzed

136 categories analyzed

Increased purchase occasions categories

Decreased purchase occasions categories

49 (36%)

87 (64%)

Consumer response # 2: Different Mix in the basket ? Gain & Loss between categories YTD Aug 2007 versus YTD Aug 2008

Frozen food +++ Fresh Food ++ -

Home & Personal care --Dry Food & beverages --+

Consumer response # 3: Shift to Discounters ?

Points marketshare % € lost or gained 08 vs 07 Points market share lost or gained

Hypermarkets Supermarkets Full Range Discount Hard Discount Proximity

-1,5 -1,6 0,8 1,6 0,2

Consumer response # 3: Shift to Discounters ?

Evolution of retailer shares ( % value) 100% Base : All Channels

Aug-Sept-Oct Colruyt Group Aldi Lidl

HH w. children limited income Aug Sept Oct 07 19,8% 13,6% 7,5%

HH w. children limited income Aug Sept Oct 08 18,9% 16,0% 10,0%

Lower Income HH w. children 16% of FMCG

HH w. children HH w. children high income high income Aug Sept Oct 07 Aug Sept Oct 08 22,3% 22,0% 11,6% 11,8% 6,8% 6,8%

Higher Income HH w. Children 31% of FMCG

Consumer response # 4: Switch to private label ?

PLB share in % value and %volume % value % volume

Aug-Sept-Oct

Aug Sept Aug Sept Oct 07 Oct 08

Aug Sept Aug Sept Oct 07 Oct 08

Hyperm/Supermarkets/Full range +HD/prox

32,4% 34,1%

45,5% 46,9%

Hyperm/Supermarkets/Full range/prox

18,4% 18,9%

27,1% 27,4%

Relative price increases are higher for PLB than for A Brands

Consumer response # 4: Switch to private label ?

PLB share in % volume Aug-Sept-Oct All channels Hyperm/Supermarkets/Full range +HD/prox Hyperm/Supermarkets/Full range/prox /Lidl

All HH All HH Aug Sept Aug Sept Oct 07 Oct 08 41,2% 42,6% 45,5% 46,9% 33,3% 34,3%

HH w. HH w. children children limited limited income income Aug Sept Aug Sept Oct 07 Oct 08 48,1% 51,6% 51,5% 55,2% 37,6% 41,0%

HH w. HH w. children children high high income income Aug Sept Aug Sept Oct 07 Oct 08 42,1% 42,5% 46,0% 46,2% 33,5% 33,5%

Hyperm/Supermarkets/Full range/prox

27,1%

27,4%

28,6%

31,0%

27,3%

26,7%

Full range discounter

29,7%

30,5%

32,1%

34,2%

29,8%

29,9%

Lower Income HH w. children 16% of FMCG

Higher Income HH w. Children 31% of FMCG

The added value of Trade Marketing

3

1

2

Retailer

Retailer objectives & strategy

Shopper insights

4

6

Manufacturer

5

Manufacturer objectives & strategy

Common category vision

price

promotion

assortment

in-store presentation

in-store communication

co-marketing

trade communication

7 18

Implementation & evaluation

Step 2 – Determine what to do where

low

high

Economic Value

low

high

low

Target Group Value high

Collaborative Opportunities ©

Small Groceries Large Groceries

Cafetaria,TeaShop

Self Service

Sport Centers Restaurants Wholesalers SuperMarkets Caterers

Schools Hypermarkets

Copyright © 2007 - 2009 Equazion N.V.

p.20

Reveal true cost and net pocket price Price Leakages Volume Payment discounts terms

Freight Promotions Bonuses Allowance

Gross Sales price Pocket price waterfall

Net Sales price (= Pocket price)

PROFIT Cost-to-Serve waterfall

COGS

Order admin

Pickings Transport Account operations mgt

Supply Chain

Sales rep visits

Marketing & Sales

Copyright © 2007 - 2009 Equazion N.V.

© Copyright, Nexum — confidential

Selling ideas Internal

Negotiations Needs Analysis

Preparation

THE NEGOTIATION PENDULUM

The influencing

Presenting a solution

Preparation Information

• Argumentation • Objections

Cycle Client

Conclusion

YES

IRRATIONAL

RATIONAL

NO

Concessions &

Strategic issues

Techniques

Final Decision

Selling Influencing

Specific skills & behaviors

Negotiating

Specific skills & behaviors

Tactics

Shopper segmentation

Shopper segmentation Target groups

Retailer C ALL HOUSEHOLDS Spend per household

Frequency of purchase

50,1 27,2 49,8 34,0 21,2 14,7 38,2 20,5 86,6 51,1 274,4 17,7 23,9 129,1 164,9 41,6 26,2 53,9 15,5 18,2 20,5 39,3 33,7 121,2 89,3 73,4 68,5 74,7 19,1 35,0 65,4 53,5 86,3 91,4

10,7 7,9 7,9 10,5 5,0 6,2 6,4 6,7 14,6 7,0 14,1 6,2 4,2 13,0 9,5 10,8 5,7 10,8 3,3 7,1 5,7 7,6 6,7 13,6 14,3 12,0 7,0 9,9 5,2 5,1 10,0 5,0 8,5 6,2

Category Retailer C eatable oil and fat sandwich filling hot drinks seasoning & flavouring soup, bouillons rice and pastas breakfast products baking and dessert products dairy meals meat & poultry eggs ice cream non alcoholic drinks alcoholic drinks bread and bread substitutes groceries biscuits and cookies snacks salted snacks confectionary chocolate products potatoes fruit vegetables cheese fish and seafood animal food and products nutritional meal non food categories home care products detergents (aids) personal care others

Shopper segmentation

Shopper segmentation Retailer HML for total FMCG

Target groups Heavy FMCG

Light

Medium Shoppers

Heavy

Medium

Light

Heavy Shoppers

Light FMCG

At retailer

Elsewhere

At retailer

Elsewhere

At retailer

Elsewhere

Value

0,0

763.252,9

0,0

948.406,9

0,0

1.436.805,0

Penetration

0,0

1,8

0,0

3,8

0,0

8,0

Occassions

0,0

17.852,6

0,0

25.482,6

0,0

44.982,9 171.096,1

HML for retailer Non Buyers

Medium FMCG

1.255.972,0

1.367.853,0

1.089.093,0

672.886,0

1.089.093,0

Penetration

Value

6,2

6,2

6,6

6,6

4,5

4,5

Occassions

1.089.093,0

50.475,0

1.089.093,0

28.405,8

1.089.093,0

8.003,3 1.331.891,0

Value

242.487,0

1.513.599,0

449.385,6

1.680.198,4

449.385,6

Penetration

4,4

4,4

8,2

8,2

13,3

13,3

Occassions

449.385,6

46.658,8

449.385,6

67.604,8

449.385,6

62.051,2

Value Penetration Occassions

51.038,2 7,5 83.397,7

3.072.706,8 7,5 92.954,2

83.397,7 11,3 83.397,7

2.799.985,3 11,3 99.302,9

83.397,7 24,3 83.397,7

3.600.291,4 24,3 144.602,9

Category

Heavy Category buyers

Medium category

Light

The added value of Trade Marketing

Grondig uitgevoerde TM activiteiten

(Trade marketing audit –2008)

Niveau van Trade Marketing STRATEGICAL HIGH

TACTICAL LOW

TACTICAL HIGH

(Trade marketing audit –2008)

STRATEGICAL LOW

“Trade marketing, category management, key-account management, shopper marketing… Geef het beestje een naam. Uiteindelijk komt het allemaal op hetzelfde neer: hoe slagen fabrikanten en retailers er in maximale groei te realiseren, gecombineerd met maximaal rendement. Waar zijn de overeenkomsten, waar liggen de meningsverschillen, zoek de gemene deler om die maximale resultaten te behalen”

(Dirk Depoorter – Colruyt) (Trade marketing audit –2005)

Thanks!

www.ld-co.com

Luc Desmedt De Cauwerstraat 47 9100 Sint-Niklaas e- [email protected] t- +32 478 42 40 13 f- +32 15 28 39 50 w- http://www.ld-co.com 32