Memasarkan snack tradisional di modern outlet

Memasarkan snack tradisional di modern outlet
Oleh : Slamet Rahardjo

Materi ini saya sampaikan pada pelatihan PENGEMBANGAN KEMITRAAN UNTUK UKM KERAJINAN DI JAWA TENGAN pada 27 November 2008 di Semarang acara tersebut diselenggarakan oleh DEPPERINDAGKOP Propinsi Jateng bekerja sama dengan Jateng Ventura.

1. Toko Modern
Toko Modern adalah toko dengan sistem pelayanan mandiri, menjual berbagai jenis barang secara eceran yang berbentuk Minimarket, Supermarket, Departemen Store, Hypermarket ataupun grosir yang berbentuk perkulakan.

2. Jenis Bisnis Ritel Modern atau modern outlet
• Minimarket kurang dari 400 m2;
• Supermarket 400 m2 s/d 5.000 m2;
• Hypermarket diatas 5.000 m2;
• Departemen Store diatas 400 m2;
• Perkulakan diatas5 .000 m2.
• BATASAN LUAS LANTAI PENJUALAN TOKO MODERN (PERPRES 112/2007)(2007)

minimarket

supermarket

departement store

hypermarket

pusat perkulakan

3. Kenapa outlet modern lebih menarik dan berkembang
• Pasarmodern yang banyak tumbuh dan berkembang di tempat yang strategis mudah dijangkau oleh sarana transportasi
• Banyak pilihan barang
• Ada kepastian harga
• Kualitas lebih terjamin
• Tempat sejuk,bersih,nyaman.
• Pelayanan lebih baik
• Bisa rekreasi atau Window shoping
• dll

4. Kenapa pasar tradisional makin kecil market sharenya
• Pasar modern terus tumbuh bahkan sampai ke kota kecamatan.
• Pasar tradisional mempunyai kesan kumuh.
• Dagangan yang bersifat makanan siap saji mempunyai kesan kurang higienis.
• Kurang ada kepastian harga.
• Kurang bergengsi
• Kurang nyaman

 

5. Snack di modern outlet
• Memiliki kontribusi omzet maupun profit yang baik bagi toko
• Salah satu kelompok barang yang dicari konsumen (masuk kategori fast moving dan sedang)
• Mudah dijual dan mudah di cari sumbernya
• Di outlet modern biasanya terdiri dari
snack pabrikan (modern)
Snack tradisional kemasan
Snack tradisional curah

6. Snack selalu dibutuhkan
• Sejak dulu camilan atau snack menjadi alternatif makanan bagi masyarakat di segala jenjang usia.
• Mulai dari manisan, dodol, bakpia hingga beragam jenis keripik yang enak dan asyik dinikmati setiap saat.
• Ditambah dengan kebiasaan masyarakat kita menyantap camilan saat santai sambil menonton televisi, atau pada acara-acara resmi seperti jamuan penting, menu camilan tak pernah ketinggalan.
• Tak heran jika banyak orang tertarik menggeluti bidang bisnis yang satu ini. Keuntungannya yang besar sangat menggiurkan terutama mudahnya mendapatkan bahan baku.
• Selain itu ketrampilan proses pembuatannya juga dapat dipelajari dengan cepat.

7. Prospek
• Prospek bisnis makanan camilan atau snack tetap prospek sepanjang waktu selama dibarengi dengan inovasi baru, baik dalam hal citarasa, penampilan, pencitraan (image), serta trik-trik pemasaran yang selalu segar dan kreatif.

8. Peluangnya
• Bisnis ini peluangnya masih cukup menjanjikan tetapi tingkat persaingannya juga sudah sangat ketat,hanya produk yang memiliki kelebihan kelebihan yang akan mendapat tempat di tempat yang strategis maupun hati konsumen.
• Snack tradisional sebagian besar belum dikelola dengan baik. Padahal snack tradisional merupakan satu diantara produk makanan yang menjanjikan.
• Berbisnis berskala home industry memang menarik kita simak. Terutama yang berfokus pada bisnis makanan. Melihat prospek kedepan, peluang bisnis makanan nampak terus bergeliat dan terus bergulir. Kenyataannya memang demikian,pada perkembangannya bisnis dari rumahan malah bisa berkembang di wilayah bisnis kelas menengah.

9. Latar belakang
• Banyak pengusaha kecil yang bergerak di bidang makanan ringan tradisional belum bisa memasarkan produknya secara optimal.
• Sangat sedikit yang telah menggunakan management professional kebanyakan belum terkelola dengan baik.
• Jumlah toko baik tradisional maupun modern sebagai saluran distribusi terus bertambah,menjadikan peluang bisnis ini tetap memiliki prospek bagus.
• Belum banyak pemasok snack tradisional yang professional.
• Mayoritas pengusaha snack tradisional produknya masih kurang dapat dipertanggungjawabkan dari segi kesehatan,mutu,hygienes,serta perlindungan konsumen atas produk yang dikonsumsinya.
• Pengusaha snack tradisional lebih berorientasi pada kepentingan jangka pendek yaitu cari untung sebanyak banyaknya dengan biaya semurah murahnya sehingga kurang memperhatikan keselamatan dan kepentingan konsumen.

10. Pertimbangan toko modern dalam membeli barang
• Produk yang Tepat
• Waktu yang Tepat
• Tempat yang Tepat
• Harga yang Tepat
• Kuantitas yang Tepat
• Kualitas yang Tepat
• Dijual dengan cara yang Tepat

11. 7 t
• 1.Produk yang Tepat
Jenis,Ukuran,Model,Merk,Warna,Ukuran
dan lainnya yang ingin dibeli konsumen
• 2.Waktu yang Tepat
Keberadaan barang di toko tersebut
adalah pada saat konsumenmembutuhkannya
• 3.Tempat yang Tepat
Merujuk pada lokasi toko Barang apa yang selayaknya
ada di suatu toko Pemajangan di dalam toko secara
baik dan benar
• 4.Harga yang Tepat
Tingkat harga barang yang pantas
dapat bersaing dengan kompetitor
Masih memberikan keuntungan yang optimal
bagi toko

• 5.Kuantitas yang Tepat
Jumlah barang disesuaikan dengan tingkat
kebutuhan konsumen (penjualan)
Toko tidak ingin sampai memiliki spout out
(di display) dan spout in (di toilet toko).
Spout out (kekosongan stock) di display
mengkomunikasikan seolah-olah toko sedang
MERANA, tidak sanggup membeli stock!
• 6.Kualitas yang Tepat
Kualitas barang harus disesuaikan dengan
mayoritas segmen konsumen tingkat daya
beli konsumen dan selera konsumen
• 7.Dijual dengan cara yang Tepat
Pemajangan bagus,Ada Label harga dan
benar,Tidak ada unsur penipuan,Mematui
aturan pemerintah/UU Perlindungan
Konsumen,Tidak memaksa konsumen untuk
Beli,Memiliki penunjang product knowledge
yang baik

12. Tips1
• Membuat desain kemasan yang bagus sebaiknya menggunakan jasa professional.
• Dalam mendesain packaging, fungsi juga merupakan salah satu pertimbangan utama yang menentukan bentuk yang spesifik dari kemasan produk. Fungsi packaging seringkali juga dapat dijadikan Unique Selling Point, karena berpengaruh langsung terhadap pemakaian produk. Misalnya seperti tutup yang lebih mudah dibuka, botol yang lebih enak digenggam, dan lain sebagainya.
• perancangan kemasan
• perancangan kemasan yang baik dan dapat mengangkat citra makanan tsb.
• Desain kemasan yang disesuaikan dengan karakteristik makanan tsb.
• Penempatan pesan secara efektif dalam perancangan kemasan

13. Tips2
• Membuat produk yang disesuaikan dengan standar balai POM,DEPKES,YLKI dan lain lain.
• Mengurus legalitas produk di pemerintah (PIRT)
• Di kalangan ibu rumah tangga, ternyata banyak yang benar-benar mencoba membaca keterangan produk di kemasannya ,kemudian membandingkannya satu dengan yang lain, untuk kemudian mereka memilih produk yang menurut mereka paling banyak mengandung bahan-bahan yang ramah lingkungan sehat serta bermanfaat.

14. Tips 3
• Mengekspos keunggulan produk pada media yang bisa di baca oleh masyarakat ,majalah,Koran,website,brosur,foster,leaflat,se,radio,lebaran dll
• Ikut pameran pada event event tertentu

15. Tips 4
• Mutu barang dan hygienes harus ditonjolkan,karena mayoritas masyarakat sudah sadar akan nilai kesehatan.

16. Tips5
• Jika memungkinkan menyewa space di mall atau supermarket atau toko toko yang potensial untuk sarana promosi sekaligus outlet penjualan

17. Tips6
• Melakukan kerja sama dengan toko dalam hal penjualan barang. Misalnya sewa gondola,floor display,parcel,program diskon event tertentu.

18. Tips7
• Jika belum memungkinkan jangan masuk dulu pada toko toko yang besar seperti hypermarket ,supermarket nasional ,karena bagi pengusaha kecil terlalu banyak syarat yang memberatkan contoh ada toko yang memberlakuan syarat seperti : listing fee, minus margin, fixed rebate, payment term, regular discount, common assortment cost, opening cost/new store, penalty dll.

19. Tips7 Perhatikan aturan pemerintah

• UNDANG-UNDANG REPUBLIK INDONESIANOMOR 7 TAHUN 1996TENTANG PANGAN
• UNDANG-UNDANG REPUBLIK INDONESIA NOMOR 8 TAHUN 1999 TENTANG PERLINDUNGAN KONSUMEN
• KEPUTUSAN MENTERI KESEHATAN REPUBLIK INDONESIA NOMOR 942/MENKES/SK/VII/2003
TENTANG PEDOMAN PERSYARATAN HYGIENE SANITASI MAKANAN JAJANAN
• DLL

20. Yang diinginkan peritel modern
• Intinya toko tidak mau menanggungg resiko kerugian
• Ada jaminan stock barang tidak sampai kosong karena pengiriman telat atau karena tidak bisa produksi
• Adanya kerjasama program pendorong penjualan.
• Toko sangat memperhatikan space manajemen.
• Supliyer menyewa gondola/space.
• Toko berorientasi mana yang lebih menguntungkan

21. pertimbangan2
• Sebagian besar pemasok retail modern saat ini bertahan menyuplai barang ke supermarket besar hanya dengan satu tujuan yaitu promosi produk.
• “Untuk hypermarket besar, seperti Carefour dalam sehari saja dikunjungi 5.000 orang dan kalau akhir pekan bisa dua kali lipat, jadi kalau bisa pasang barang di sana seperti pasang iklan di televisi,” katanya.
• Pengelola ritel sering melakukan pemotongan tagihan pemasok tanpa persetujuan dan tidak segan-segan mengembalikan barang yang sudah dibeli tanpa kesepakatan kedua pihak.
• Sejumlah pemasok kerap mengeluhkan adanya pengelola hypermarket yang memberlakukan denda service level. Padahal service level sebenarnya ditawarkan pemasok jika ada hambatan distribusi atau pun produksi.
• Begitu banyaknya produk makanan ringan yang ada di pasaran. Produsennya mulai dari industri rumah tangga hingga produsen besar. Bahkan beberapa supermarket pun mulai marak memproduksi snack food dengan merek mereka sendiri (house brand).
• Hasil Survei Jurnal Halal LP POM MUI yang dilakukan beberapa kali, menunjukkan bahwa banyak sekali makanan ringan yang mencantumkan label halal tanpa sertifikat halal. Hal ini tentunya melanggar ketentuan yang telah ada, bahwa pencantuman label halal harus melalui pemeriksaan LP POM MUI.

22. Administratif
• Masing-masing supermarket, punya prosedur sendiri dalam menerima pemasok. Secara umum, anda akan diminta untuk menyiapkan surat penawaran atau proposal dilampiri
• akte pendirian badan usaha,
• Surat Izin Usaha Perdagangan (SIUP),
• surat-surat lainnya (NPWP, PKP, domisili dll),
• sampel barang,
• serta penawaran harga dan sistem pembayaran.
• Setelah itu, anda akan diminta menunggu persetujuan dari pihak supermarket.

23. Cara menjadi supliyer
• Bila ingin menitipkan dagangan ke pusat perbelanjaan terlebih dahulu hubungi Divisi yang menangani supplier di supermarket tersebut.
• Mintalah detail dan sejelas jelasnya tentang skema kerja sama yang ditawarkan supermarket tersebut karena tiap supermarket mempunyai sistem yang berbeda-beda.
• Beberapa hal yang perlu dipertimbangkan adalah kualitas dan kuantitas barang yang diminta.
• Masalah harga yang disepakati apakah sudah menutupi semua ongkos produksi dan memberi keuntungan.
• Perhatikan bagaimana sistem pembayarannya agar tidak menganggu arus kas perusahaan.
• Kemudian bagaimana pengiriman produknya apakah sesuai dengan kemampuan produksi perusahaan
• Standart pengemasan, isi perkarton dll
• perhatikan juga soal retur (pengembalian bila tidak laku terjual).
• Biasanya supermarket besar menggunakan sistem konsinyasi (titip jual) bagi para pemasoknya, dengan margin yang didapat sekitar 10 – 30 %.
• Margin ini diperoleh dari selisih antara harga dari pemasok dengan harga penjualan.
• Beberapa supermarket yang menerapkan sistem ini dalam tempo 2 – 3 bulan.. Kondisi ini menyebabkan pemasok harus siap permodalan yang besar untuk menutupi ongkos produksi berikutnya.
• Faktor lain yang perlu diperhatikan bila memasok barang ke supermarket adalah sistem minus margin, artinya pemasok tak boleh menjual produk ke peritel lain dengan harga lebih rendah. Tetapi praktek seperti ini sudah jarang karena dianggap kurang fair.

24. Listing fee

• Listing fee adalah biaya yang disyaratkan peritel bagi pemasok sebelum memasukkan produknya ke pasar atau toko tradisional. Sementara minus margin adalah ketentuan yang mengharuskan pemasok untuk membayar kerugian pada peritel jika pemasok terbukti menjual barang dengan harga lebih murah kepada peritel lain.

25. Batasan listing fee untuk produk baru di toko modern
• Hipermarket: < 500.000 – 5.000.000
• Supermarket: 1.000, toko: < 1.000.000
• Minimarket yang punya: 501-1.000, toko: < 500.000
• Minimarket yang punya: 1-500, toko: < 150.000
• Minimarket lainnya: < Rp 10.000
Sumber:
Draf Permendag Pedoman Penataan dan Pembinaan Pasar Tradisional Pusat Perbelanjaan, dan Toko Modern versi Agustus 2008

26. Biaya pasok dan promosi produk baru di ritel modern (Rp/produk
• Merek toko jumlah toko Listing (Rp)*

• Minimarket Alfamart 2.505 26 juta
• Super.Foodmart+hiper. Hypermart 29+39 16,5 juta
• Hipermarket Giant 22 10 juta
• Supermarket Naga 8 5,5 juta
• Supermarket Yogya 53 5,5 juta
• Supermarket Lion Superindo 61 5 juta
• Supermarket Hero/Giant 94 4 juta
• Supermarket Hari Hari 7 3,5 juta
• Minimarket Yomart 150 3,5 juta
• Supermarrket D’Best 6 3 juta
• Ramayana 100 3 juta
• Tip Top 7 1,375 juta
• Supermarket Sabar Subur 4 1,25 juta
• Supermarket Ada Swalayan 1 0,5 juta
• Hipermarket Carrefour+Alfa 41+29 0,5 juta
• Supermarket Asia SM 4 -
• Supermarket Borma 12 -

* Listing fee untuk seluruh gerai Dari berbagai sumber, 2008

27. Bagaimana memulai

• 1.Untuk mengawali tidak harus masuk toko yang besar lebih dahulu, bisa diawali dengan masuk ke minimarket lokal ,kantin kampus,toko kelontong,warung,rumah makan dll.
• 2.Manfaatkan toko2 yang belum menerapkan listing fee yang besar. Atau bahkan tidak memberlakukan hal tsb.
• 3.Yang penting omzetnya bukan dimana barang kita di jual
• Sama dengan yang lain untuk sukses di bisnis snack tidak bisa instant perlu niat yang sungguh sungguh,ulet ,telaten dan konsisten.

• 7. Lakukan efisiensi
• 8. Pelajari lagi apa yang diinginkan konsumen
• 9. Butuh banyak referensi

• 10. Optimis jangan takut ditolak
• 11. Lakukan perbaikan terus menerus
• 12.Jika masuk pasar modern harus cermat dan hati hati dalam melakukan negosiasi kesalahan memahami kalimat bisa membuat kerugian di kemudian hari

• 13.Sudah banyak pengusaha kecil yang sukses anda juga memiliki kesempatan yang sama.
• 14.Yang menentukan akhirnya adalah konsumen maka makin baik produk yang kita jual makin besar kemungkinan dipilih konsumen.

28. Selesai
• Selamat memasuki modern outlet
• Selamat mencoba
• Semoga sukses
• amin

vandy afgant

college store

desain interior toko sepatu merk ternama

The Value of Personalization From Melody Vargas,Part 4 in a Series on Loyalty Retailing

The Value of Personalization From Melody Vargas, Part 4 in a Series on Loyalty Retailing The concept is simple, recognizing a customer when they walk through the door or sign-on to a Web site allows the retailer to tailor the shopping experience for each customer. By recognizing each shopper as an unique individual with their own tastes, needs and desires, retailers can establish friendships and create customer loyalty.  Where does the information come from to personalize the shopping experience? Are retailers using it wisely? Is there any need for consumers to be concerned about being known as a unique individual instead of one of countless, and nameless, purchasers?  The information to personalize can come from different sources. When customers become members or order from Web sites, or when they sign-up for frequent shopper cards, information is collected.  It frequently includes name and address. Sometimes salary history, social security, driver’s license, marital and family data is collected. Then, as the customers make purchases, their purchase history is added to the database.  Even Web sites that may not directly ask for personal data, might track the “clickstream” — clicks, time spent per page, items selected, but abandoned, and similar information — all in order to find out more about their customers and their behavior. The clickstream data becomes a useful resource for data mining tools that predict gender, age, income, preferences, and a customer’s willingness to purchase.  It isn’t necessarily a bad thing for a retailer to know a lot about their customers. Being seen as an individual, with certain habits and preferences can save time. Just think about the donut shop that knows you like an apple fritter and a large coffee with cream for breakfast. The person behind the counter sees you get out of your car and before you make it to the register, they have your order bagged, poured and waiting. Likely you’d consider this great service, not an invasion of your privacy. Let’s say you like variety and always try something different. In this case, the clerk suggests the new chocolate-cherry crunch donut fresh out of the oven. The service is still made-to-order, highly personalized, and assuming you like chocolate and cherries, valuable.  Are retailers walking a fine line between providing a valuable service and invading customers’ privacy when they use their data? Of course retailers want an edge in knowing what product to pitch while you’re at their site or in their store. Of course they want to learn the elasticity in the price of an item. If it allows retailers deliver to you the right offer at the right time, is it worth it? Many customers believe so.  There is great value in having drug interactions recognized and corrected in the pharmacy instead of after an incident. There is value in being informed of a sale on your favorite items so that you can stock up. The best description of this type of personalization comes from Accelerating1to1, “Enlightened companies remember information for customers, not about them.”  And that is the key to personalization and it’s best practice. Remember for the customer, not about them. If you visit Amazon.com, you can pick a favorite book and see what other customers who have that book purchased. It gives customers an insight into what might be a good read for them. From prior purchases, Amazon will recommend new selections. General Nutrition Center’s format GNC Live Well provides customized vitamin packs based on their customers’ lifestyle and needs. The VitaPaks are then assembled and sealed into individual packages in front of the customer and automatic refills via UPS are offered to complete the personalized service.  Personalized service best comes from retailers listening to their customers, learning their needs, finding out what they like and how they like it. Every retailer can personalize some portion of their customer interaction. The best part of it for retailers is that it doesn’t have to take buckets of money to get started. Just remember your best customers’ names. And by the way, if you own a donut shop, I like mine with hot chocolate, not coffee.  

In the remaining parts of our series, we will continue to explore the pros, the cons, the alternatives, and the best practices of loyalty programs.

Source: retailindustry.about.com  

The Value of Information Part 3 From Melody Vargas,Part 3 in a Series on Loyalty Retailing

The Value of Information Part 3From Melody Vargas,  Part 3 in a Series on Loyalty RetailingIt seems innocent. Retailers offer frequent shopper cards to their customers so that they can better understand them. Understanding their customers allows retailers to make better assortment decisions and improve the efficiency of the supply chain.  A more efficient supply chain and better assortment allow retailers to target their customers with goods and services that meet the customers’ needs. Meeting needs creates loyal customers and drives retail sales.  Everyone wins, right? It depends.  When the data is used strictly to aid in category management, it can be a tremendous asset. If the retailer shows a lack of respect for customer privacy (as we examined in part 2 of this series) or customer intelligence, it won’t inspire loyalty and may become an annoyance.  How many frequent shopper cards do you have in your wallet right now? Chances are if you live in an area with more than one supermarket, you have several.  The consumers are not showing loyalty to the store by signing up for their cards. They are showing that they will do what they have to in order to get the discounts. They are submitting to being tracked and are willing to present their cards in order to keep their food bills within budget.  Active anti-card privacy group, No-Cards Shoppers, believes frequent shopper cards insult shoppers and do not really save anyone money. More and more customers are beginning to agree. Several local news stations around the country have run tests in response to disgruntled shoppers’ claims that retailers inflate prices only to offer savings equal to the old price.  It’s hard to argue when the price of a gallon of milk is raised a $1.00 the week before a frequent shopper card is instituted, only to be discounted a $1.00 for customers who use the new card a week later. There is no actual savings over the old method, only now, the individual customer’s milk purchases can be tracked. This is hardly a way to win friends and create loyal customers.  Other retailers may not increase prices prior to implementing a frequent shopper program, but they almost all significantly decrease the number of non-card discounted items they offer their customers. The items that would have been offered to anyone at the discount before the cards were implemented, now cost non-card holders the regular price.  These retailers haven’t anticipated each specific customers’ need for milk. But now, they know who is buying milk, in what quantities, and at what price, and especially, in conjunction with what other other products.  The grocery retailer armed with the information that this customer buys two gallons of whole milk a week and 1 mega-pack of diapers, but does not purchase baby food, would be able to assume that this family has at least one child at home between 1 and 2 years old. Now the retailer can begin to target and use the data to anticipate this particular shopper’s needs.  Anticipating needs is the holy grail of loyalty marketing. When retailers can anticipate their customers’ needs they begin to win loyalty. Retailers who match products to their customers’ behavior are focused on their shoppers.  Using collected data to target their product categories and give customers what they need, when they need it is what these programs are supposed to be about. The best category management has always focused on the customer, even before the advent of loyalty programs.  Smart retailers combine their targeting with their category management and learn how to use their data in collaboration with manufacturers. Both retailers and manufacturers bring unique knowledge and insights to the table. Combining business knowledge of both with a customer purchase history database makes it much easier to target specific offers to specific customers.  Using the data from loyalty programs to determine that shoppers prefer traditional red, white and green Christmas decorations in contrast to fashion colors and making those the largest part of your assortment is good.  Using data from loyalty programs to determine order quantities for a special promotion of new line of pantyhose is good. Using the same data to notify customers who typically buy several pairs of pantyhose a month that there is a sale this week on a new line in her preferred brand is great.  Determining quantities, deciding if a new product fits in a particular store, and selecting colors for spring fashions are excellent uses for data that help the customer. So is using frequent shopper data to personalize the shopping experience for the customer.  

Is personalization being used wisely by retailers? We’ll cover this and more in the remainder of our series, as we continue to explore the pros, the cons, the alternatives, and the best practices of loyalty programs. 

Source: retailindustry.about.com 

Value / Variety / Convenience – Which is Winning?:

This information is forwarded to Nielsen KAM BASE Member and collected from any publications sources, such as : newspapers, magazines, internet, and tabloids to support retail industry.Value / Variety / Convenience – Which is Winning?:Bringing Clarity to Channel Choice  By: Todd Hale, SVP, Consumer & Shopper Insights, Nielsen Consumer Panel Services  Like petulant children who want what they want when they want it, consumers realize that they hold the power. With abundant choices available, they can – and they will – shop where they want, when they want and how they want. While it is near impossible to be all things to all consumers, a keen understanding of your most important customers can deliver the insight needed to keep them happy and spending – in your stores or for your brands.  The hourglass economy

Today, grocery represents just one-third of all purchases. The complexity of channel choice and the emergence of “premium” retail channels (such as upscale grocers and natural stores), “value” channels (such as warehouse club, dollar, and limited assortment chains), and “convenient” channels (such as drug and convenience/gas outlets) have funneled sales away from traditional grocery stores, forming a virtual hourglass that has created lucrative opportunities for alternative channels and a plethora of choices for the consumer.

As consumer’s demand for choice continues to accelerate, finding opportunities for growth will come – as always – from innovation and the ability for retailers and manufacturers to adapt to an environment that is in constant flux. Consumer behavior is the driving force behind all this change and the ability to understand how much of that behavior is driven by their demand for value as they seek the best prices, or variety as they look for the best assortment options, or convenience as they search for quick solutions, will shed new light on how shoppers buy categories and brands.  Format frenzy Today, non-grocery retailers are leveraging the power of food and beverage categories to drive store traffic, build larger baskets and drive shopper loyalty. Grocery retailers have been looking to new store formats, on-site gas pumps, Rx departments, and increased assortment and merchandising support from health & beauty and non-food categories in a similar manner. Opportunities abound, but knowing what strategies to deploy is a matter of how well you understand consumer shopping preferences and how adept you are at appealing to them. Store expansion has come from outside traditional food, drug and mass merchandise channels. Over the past 10 years, store expansion has come from outside traditional food, drug and mass merchandise channels. Looking at U.S. store counts since 1996, warehouse clubs have increased their presence by 394 stores, supercenters upped their store tally by 2,000, dollar stores have risen by 13,900 and convenience stores have increased dramatically by more than a quarter – growing store count by a whopping 32,209 stores. While store count in grocery, mass and drug channels have grown moderately or declined, there are retailers within each that have expanded store count (such as Target, Walgreens, CVS, Publix, etc.) and others who have invested dollars to make existing stores work better (such as, Kroger, Safeway, Delhaize, etc.).  In addition, alternative retail channels such as hardware/home improvement, electronics, office supply, book, pet, auto and liquor stores are enjoying healthy penetration levels. As these channels increase their offerings of food, beverage, health & beauty aids, non-food and general merchandise, they are adding to the competitive set of traditional retailers. At the same time, this is offering wider distribution opportunities for consumer packaged goods manufacturers and more variety for consumers who have changed the way they shop.  For the vast majority of shopping trips, consumers just don’t spend much time shopping.

How consumers shop Time strapped, on-the-go and frazzled can sum up the sentiment of today’s busy consumers – and is evidenced by the way in which they shop. For the vast majority of shopping trips, consumers just don’t spend much time shopping, as almost 70% of all-outlet shopping trips are small or considered “immediate need” trips. These low-value trips average a basket ring of just $17.  Slightly less than one-fifth or 18% of all shopping trips are considered “fill-in”, bringing in slightly higher-value baskets that average $64 per trip. Accounting for 10% of all shopping activity, high-value “routine” weekly shopping trips average $106 and extra large, “stock-up” trips comprise 4% of all trips and total an average of $256 per spend. Even though consumers are pressed for time, it is interesting to note that the heavy buyers of categories opt to purchase in multiple retail channels. Value, variety and Convenience – so which is winning? With so much choice available to meet the demands of the busy consumer, the question begs – how important are value, variety and convenience in the business model for both retailers and manufacturers? While it is clear that all three are essential to the marketing mix, understanding how retailers should compete when new formats move into trading areas or how manufacturers can provide solutions to help retailer partners grow through brands is critical. A detailed look at consumer behavior has the best potential of unlocking the secrets of success.  Looking at the behavior of the average shopper with basic buying metrics is just not good enough anymore.

Slicing the pie All consumers are not alike. Looking at the behavior of the average shopper with basic buying metrics is just not good enough anymore. In order to properly understand how consumers cluster in terms of shopping habits, segmentations schemes are necessary to help understand what types of consumers drive sales or where opportunities to improve marketplace position are missed.  While manufacturers have been using category-based segmentation schemes to understand the attitudinal and behavioral drivers of buying and consumption for many years, this wealth of experience needs to be shared with retail partners in order to build collaborative efforts that ultimately drive manufacturer and retailer sales success. A clear understanding of shopper and consumer behavior and how they are influenced by attitudinal drivers, media messaging, pricing and promotion is the foundation for building and maintaining marketplace success at the store level.  Piecing the parts A multi-channel shopper segmentation scheme illustrates how different sets of consumers look at value, variety and convenience in establishing shopping patterns. Consumers were classified into ten unique shopper segments that looked at where they shop, how they shop, what they look for in a store, who they are and where they can be reached. For this model, all retail formats were reviewed, including department-level buying, all-category deal versus non-deal buying and all-category branded versus private label buying.  Deal and variety drivers Five of the ten segments are Mainstream Grocery shoppers who place varying emphasis on the importance of variety and value – however, it is interesting to note that Mainstream Non-Deal shoppers – the largest segment overall, accounting for about 21% of U.S. households and 22% of all-outlet shopping dollars – is not deal prone, making them a highly lucrative segment to target.  The Mainstream Heavy Deal and Mainstream Extreme Deal shopper segments – the ones receiving the greatest promotion support – exhibited low relative loyalty within mainstream grocers. These consumers hop across retailers in search of the best value and as a result, are very frequent shoppers, but are low per-trip spenders. Mainstream Variety Seekers spread their all-outlet dollars over a wide range of retail channels including mass merchandisers, supercenters, limited assortment grocers, dollar stores and convenience/gas outlets. Value driversFour of the five remaining segments are defined along the lines of retail channel formats, but value comes into play given the pricing strategy for retailers within some of the formats. The second largest shopper segment of this group, Supercenter Savvy Shoppers, devoted a whopping 49% of their total all-outlet spending within this format. Taking advantage of the “all-in-one” appeal, these shoppers make fewer overall trips, but spend high on a per-trip basis.  The other shopper segments include Warehouse Club-Centric, Limited Assortment Grocery and Small Format shoppers – each exhibiting differences in either where they shopped or in their behavior. For example, while Limited Assortment Grocery shoppers overspend on private label and frequent other value-oriented formats like supercenters and dollar stores, they also over-spend in upscale grocers and drug stores.  Frequency and format drive basket ring differential. Sharing the wealth Frequency and format drive basket ring differential, and those shopper segments that make fewer trips generally spend more per trip. While the Mainstream Grocer Non-Deal shopper makes 142 trips per year spending $50 per trip, the Small Format shopper spends an average of $28 per trip, but makes 218 trips per year.  It is important to note that mainstream grocers play a much smaller role among other format shoppers. For example, the Supercenter Savvy shoppers only make 30 annual trips to a mainstream grocer – less than half the trips made by the five Mainstream Grocer shopper segments that average about 70 trips each per year. Similarly, Warehouse-Centric and Limited Assortment shoppers make just 37 and 38 trips to mainstream grocers, respectively. As these formats get closer in proximity to mainstream grocers, mainstream grocers will see increased competition and a negative impact on their shopping frequency.  Sourcing the volumeCompetition is fierce, with each format vying for a larger share of the market. Account-level sourcing creates a road map of where the opportunities – and weaknesses are evident. A side-by-side view of Wal-Mart Supercenter and Kroger Corporation illustrate how market position can lead to advantage. Wal-Mart sources about 63% of sales from Supercenter Savvy shoppers, while Kroger sources 77% of their sales from Mainstream Grocery shoppers. Who is more vulnerable to competitive pressures or other factors like fluctuations in gas prices? While Wal-Mart has so much investment coming from a single source, Kroger’s shopper portfolio is more diverse.  Factors collide The beauty of consumer behavior is that just when you think you’ve nailed it, you realize that you have simply scratched the surface. The more you reveal, the more there is to uncover. A thorough and in-depth review will expose shopping differences at the department and category level; it will determine how store proximity factors into how far from home consumers will travel, and it will reveal how important consumer’s attitudes are when it comes to their overall shopping experience.  Retailers in a position to win will:  stay on top of key consumer trends; segment shoppers to uncover opportunities in and outside their store; expand products and services to capture a greater share of spending; understand what products and services can differentiate. Manufacturers in a position to win will:  align category segmentation schemes with the most important retail customers; capitalize on channel shopping diversity of top-spend category buyers through expanded distribution; expand through tailored product offerings that match with channel demographics – not through increased distribution of existing offerings. Success will come to retailers who define themselves by who they sell to and how they sell to them, rather than by what they sell. Likewise, for manufacturers who define themselves by who they sell to and the solutions they solve for their consumers and retail partners – not by what they sell.    

‘Looking Good’ trend led by Metrosexuals

 

‘Looking Good’ trend led by Metrosexuals  The world’s embrace of metrosexual males has raised pressure on everyone to look good. If the likes of George Clooney, Bono and Brad Pitt have the masculinity and confidence to groom, moisturize and more, so can the Average Joe, Jacques or Jose. Regardless of continent, culture, age or gender, looking good is a heightened societal expectation, believe the vast majority of 26,486 consumers surveyed online by Nielsen Customized Research on their attitudes towards and buying habits of health and beauty. Women have long felt this pressure, but men no longer get a free pass by saying they have little interest, time or resources to make the effort, expressed consumers from 46 markets extending across the Americas, Europe, Asia and the Middle East. Eight out of 10 agreed (78% globally/84% in U.S.) that it’s okay for men to invest in their appearance. Indeed, “these days, the pressure to look good is much greater than it was in our parents’ generation,” agreed 72 percent of the global survey respondents. Corroboration ranged from 66 percent in the United States to 69% in Canada, 72 percent in the Asia-Pacific region, 75 percent in Europe and 81 percent in Latin America. Behind these feelings is a momentum-building context, which the study doesn’t specifically address: People are fed up with obesity and now celebrate weight loss; they’re in tune with wellness and pro-environment themes; and they’re focused on fashion. Though few males will ever approach the Clooney appearance standard, the look-good trend bodes well for makers of many personal care and beauty products. Globally, 30 percent of consumers said they “spend more than they used to” on beauty products and treatments; in the U.S., 23 percent said the same. The most personal grooming dollars in the U.S. go to hair care (81%), skin care (61%) and facial treatments (47%). Less popular are hair removal (21%), tanning (23%) and eyebrow/eyelash tinting and shaping (29%), the study showed. If money were no object, respondents told Nielsen, they’d spend the most on body massages, teeth whitening, hair care, facial treatments and manicures/pedicures.  “Pressure to look good is felt worldwide,” said Shuchi Sethi, vice president, consumer products, Nielsen Customized Research. “That doesn’t necessarily mean consumers are compelled to spend more on beauty products and treatments. It seems the older you get, the less you spend, as teens and consumers in their 20s spend more in this category.” Relationships can affect spending even more than age, suggested study findings: 62 percent of Americans spend on beauty to look good for their current partner, while 34 percent spend to help attract a partner. “More important…is that many U.S. consumers…invest in beauty products simply because it makes them feel good (64%),” added Sethi. Latin-Americans (84%) lead the world in this beauty motivation, followed by consumers in Asia-Pacific (62%), North America (62%) and Europe (60%). Upscale brands don’t always sway purchase decisions. Eight out of 10 (80%) U.S. consumers agreed very much/somewhat that mass-market hair, skin and cosmetics products are just as good. Price (63%) and brand (47%) are the two leading purchase factors in the U.S., where consumers buy these items primarily in supermarkets (53%), followed by department stores (47%), drug stores (40%) and other out  Danang Widiasurya Retailer Service ExecutiveTCS Indonesiawww.nielsen.com    

Retailers Say U.S. Sales May Slow Through Holidays

 

Retailers Say U.S. Sales May Slow Through Holidays

By Lauren Coleman-Lochner

U.S. retailers are poised for a sales slowdown that may last through the holidays and into 2008. Target Corp., the second-biggest U.S. discounter, reported today its first profit decline in two years. Home improvement chain Lowe’s Cos. yesterday cut its earnings forecast for the second time in two months, and a survey of consumers showed the biggest portion of Americans in eight years plan to spend less money on holiday items. Rising gasoline prices and the worst housing recession in 16 years have caused shoppers to make fewer trips to stores. Retailers, which count on November and December for 20 percent of their revenue, are making holiday price cuts earlier and more aggressively than last year. “All these factors continue to pressure consumers, and it looks like that pressure isn’t easing,” said Steven Baumgarten, an analyst at PNC Wealth Management in Philadelphia, with $77 billion in assets including Wal-Mart Stores Inc. and Target shares. Target, which trails Wal-Mart in sales, said today that third-quarter profit fell to $483 million, or 56 cents a share, trailing analysts estimates, after demand for its profitable clothing and home goods slowed. Borders, the second-largest U.S. discount chain, may report a loss of 62 cents, the seventh straight quarter without a profit, after selling its U.K. and Ireland stores, analysts estimated. The Ann Arbor, Michigan-based retailer reports results later today.   Worst Since 2005 Clothing chain Limited Brands Inc., based in Columbus , Ohio , will probably show that it broke even in its third quarter, according to 19 analysts surveyed. That would be the company’s worst earnings performance in two years. Merchants including Kohl’s Corp. said they’re planning conservatively next year after third-quarter sales trailed predictions. Lowe’s, based in Mooresville , North Carolina , lowered its earnings forecast for the rest of the year ending Feb. 1 as it reported a 10 percent drop in third-quarter profit amid the worst U.S. housing recession since 1991. Last week J.C. Penney Co., the third-largest U.S. department-store company, and Seattle-based Starbucks Inc., the world’s largest coffee-shop chain, also reduced their profit outlooks, as did Atlanta ’s FedEx Corp., the second-largest U.S. package-shipping company. “A weakening housing market continues to take a toll,” Brian Nagel, an analyst with UBS Securities LLC, wrote in a note yesterday.     Cost of Heat So are consumer debt levels, rising gasoline prices and higher home-heating costs, according to a survey released yesterday. The research, by the Consumer Federation of America and the Credit Union National Association, found that 35 percent of Americans polled said they intend to lower their holiday spending this year, the most in eight years and up from 32 percent last year. “By a wide margin, the strongest negative influence is the high cost of gasoline and home heating,” the credit union group’s chief economist, Bill Hampel, said at a news conference. Besides pressured consumers, the two largest booksellers are grappling with competition from Bentonville, Arkansas-based Wal-Mart and online retailer Amazon.com. New York-based Barnes & Noble and Borders have slashed prices by as much as 40 percent to drive sales.  Barnes & Noble Barnes & Noble, the world’s largest bookstore chain, today reported a third-quarter profit on higher Internet sales. The New York-based chain posted profit of $4.38 million, or 7 cents a share. Five analysts surveyed by Bloomberg forecast a loss of 9 cents a share. Kohl’s and J.C. Penney, two retailers catering to middle- income shoppers, cut their fourth-quarter forecasts last week. “We’re being very conservative in our sales planning for 2008,” Wes McDonald, chief financial officer at Menomonee Falls, Wisconsin-based Kohl’s, said on the company’s third- quarter earnings call last week. Shares of retailers have been plunging since the holiday sales season started Nov. 1. The Standard & Poor’s 500 Retailing Index is down 12 percent this month, including a 27 percent drop by Plano, Texas-based J.C. Penney.  Holiday Discounts Wal-Mart, the world’s biggest retailer, started its holiday discounts in October, and unveiled sale prices for the day after the U.S. Thanksgiving holiday. The chain offered a 42-inch liquid-crystal display television set for $798 and a Tonka dump truck for $10 in a circular on its Web site. Sales in November and December represent 20 percent of retailers’ annual revenue, according to the National Retail Federation, a Washington-based trade group. The NRF has predicted a 4 percent sales gain to $475.5 billion for the two months combined, the smallest increase since a 1.3 percent rise in 2002. Lowered expectations for the current quarter bode poorly for 2008, said Lauri Brunner, an analyst at Thrivent Investment Management in Minneapolis , with $70.6 billion in assets. “If that happens in your best quarter in the year, it doesn’t mean it’s going to stop in the first quarter of next year,” she said. The International Council of Shopping Centers, a New York- based trade group, projects November and December comparable sales at about 70 chains it tracks to climb 2.5 percent, the least in three years. “People are going to be tighter than normal with their spending,” said Baumgarten of PNC Wealth Management. “All indications are, it’s going to be a tough period.”  Source: www.bloomberg.com Eric Chandra
Merchandising and Retailer Service
The Nielsen C om pany
www.nielsen.com