Grabbing the pulse of the Shopper
Shopper Pulse is the new study undertaken by IIM-Ahmedabad TNS and Ogilvy Action to gauge the influencing factors that make shoppers buy. This study also shows up the fact that as shoppers face an array of choices, brands have no option but to focus strongly on shopper marketing. POP magazine gives you more details on the study.
To understand the motivating tools and the needs that inf luence the shopper to finetune their antennas while shopping, IIM-Ahmedabad TNS and Ogilvy Action have collaborated to conduct a research based study known as Shopper Pulse. The study aims to explore major inf luences that drive the shopper to buy in Hypermarket formats.
The study also aims to provide a direction for engaging the shopper in an improved fashion where the shopper can be comparatively more active while assisting in-store levers. These in-store levers would ultimately help strategically feed into determining more effective in-store conversion strategies for specific food & personal care categories.
The study was carried out in three cities and six stores during September- October. Big Bazaar and HyperCITY were chosen as two ends of the Hypermarket experience - the former an example of a Discounted Hypermarket, the latter of a Premium Hypermarket.
Five types of methodology or techniques were used to gauge the shopper’s quantitative and qualitative and behavior.
Under quantitative behavior, (1) exit interviews were conducted to intercept them and invite them to participate in an interview. (2)Observations were carried out and based on the data collection, a structure observation sheet would be created (3) Shopper behavior would be recorded live with the help of Filming/Videography.
Under quantitative behavior, (1) Shopnography methodology was used for a 3 stage of assessment, (a) Pre-store interviews (b) In store observations(c) and Post store interviews and (2) Focus Group Discussions, where 6 to 8 respondents attend a facilitated 3 hour long focus group which covers brands, channels, retailer choice and the motivations and state of mind that drive shopping.
The study also helps in reiterating the fact that brands would need to spend more time and resources on understanding the shopper as different from the customer.
Some of the key features of the study:
1. Shopping and Communing: 70% of shoppers visiting hypermarkets are accompanied
2. Democratization of Shopping: Hypermarkets attract more than just ‘SEC A’ shoppers. The percentage of non-Sec A shoppers increases. As the age of shoppers drops it was observed the percentage of non-Sec A shoppers increases.
3. The Ubiquity of Loss: At any given point of time, there is a risk of 12% of lost sales for a retailer (or brand) if the experience is not shopper-centric. Comparatively, the risk of such loss is as low as 2% in traditional trade (with sale being lost most often on account of stock-outs). This is due to the major chunk of shopping is 70% while the Impulse and emergency is 12%.
4. Personal Care – The Pied Piper: Conversion in personal care is as high as 48%.
5. Hypermarkets cater to Niche India: There is a huge opportunity for hypermarkets to attract a wider shopper base by targeting businessmen and traders and consequently increasing overall footfalls at their stores.
6. Shoppers are Trip Shy: Shoppers who shop at hypermarkets only once or twice a month is 62%. The reason is that mostly these shoppers consider these trips as up’ destination. By introducing trip based loyalty programs casual hypermarket visit would be a lot more worthwhile for the top up/emergency or even impulse shopper. This will also encourage other shopping missions by increasing shopping visits by making it more fun based activity for the shoppers.
7. Engage and Entertain the Youth: 40% of all co-shoppers who accompanied the primary shopper were his/her friends. Nearly 40% of all students spent less than `500 on their shopping trip. Greater proportion of students visit the hypermarket on an impulse, compared to mature/ veteran householders. And hence Hypermarkets are fast becoming entertainment destinations for the youth.
This study obviously gives many leads regarding what makes a product/ brand tick among shoppers and why they buy a particular product. The study shows us that shoppers and consumers are very different and hence the approach taken by the companies need to change in order to have a deep understanding and psyche of the shopper