Grab­bing the pulse of the Shop­per

Point of Purchase - - CONTENTS -

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

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