Getting Inside The Mind of the Shopper

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Getting Inside The Mind of the Shopper
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Whats driving the shopper

• Unemployment still a problem
• Housing prices remain weak
• Foreclosures, foreclosures
• Consumer lack-of-confidence
• The impact on shopping patterns

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Where we are

• The new age of frugality
• The new age of simplicity
• The importance of differentiation

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The questions we face

• How are lifestyle and other pressures affecting
  store selection and shopping
• How do todays consumers describe their needs and
  how do those needs influence behavior
• How do supermarkets meet todaysshoppers needs
• How can understanding need states translate into
  competitive advantage

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Who is the shopper?
Time
Money
Family
Personal
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State of mind
I am the KEEPERCare for FamilyI consider
grocery shopping to be a very important job and
take it seriously. I want to do a good job for my
family. I buy what people ask for and what I
think will please them, but I always make a
decision that ensures its good for them.
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State of mind
I am the QUARTERMASTER Efficient Stock-Up I
dont like to grocery shop, so on my major trips
I buy everything I can. I like to have a lot of
things on hand, so I can avoid making an
additional trip to the store.
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State of mind
I am the BANKERSmart Budget ShopperI have a
planned grocery budget that I dont want to
exceed. Ill stock-up on bargains and I want the
store to make it easy for me to find for savings.
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State of mind
I am the SEEKER DiscoveryI like to browse
during my grocery shopping trips. Every trip is a
little different. I look for new ideas, new
recipes, new foodsand even some non-grocery
products, like clothes.
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State of mind
I am DESPERATESpecific ItemI need something
right away a specific food, ingredient,
prescription medicine, or alcoholic beverage. If
its not on the shelf, Im likely to go to the
next store.
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State of mind
I am RELUCTANT ReluctanceIf I could, Id
rather have somebody else do my shopping or do it
online anything to avoid going to the store.
Right now, I put little time or effort into my
shopping trips.
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State of mind
I am the HUNTER Bargain-Hunting Among
StoresOn my grocery trips, I am looking for
bargains on a limited number of specific products
that I want to buy. I go to the store that is
offering the best deals on these products.
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State of mind
I am the COURIERSmall-Basket Grab Go Bread,
milk, bananas, and beer. In and out in a few
minutes. Thats what Im here for.
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State of mind
I am HUNGRYImmediate ConsumptionIm thirsty,
Im hungry, or I am out of cigarettes.
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Polarized views rule
36 get real accomplishment from shopping
25 say shopping is an unpleasant necessity
30 say I cook because my family needs to eat
55 find cooking a source of satisfaction
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Polarized views rule
Moderation Kills
36 get real accomplishment from shopping
25 say shopping is an unpleasant necessity
30 say I cook because my family needs to eat
55 find cooking a source of satisfaction
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Supermarkets are facing strong competition
Consumer Commitment Across Competition(TRIM
Index, by Channel)
106
Limited Assortment
101
Warehouse Club
100
Dollar
93
Mass Merchandiser
93
Supercenter
91
Total Supermarkets
87
Drug Stores
Convenience Stores
80
TRIM Index 70 100 Strong Relationship
Over 100 Very Strong Relationship
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Clear positioning produces stronger commitment
Consumer Commitment Within Supermarkets(TRIM
Index by Type of Supermarket)
Natural/Organic
109
100
Upscale Supermarkets
96
Price Oriented
89
Supermarket Main Tier
TRIM Index 70 100 Strong Relationship
Over 100 Very Strong Relationship
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Overview of the Tool
Step4
Step1
Step2
Step3
Step5
StoreExperience
Need StatePrioritization
Need State Opportunity
Need StateSelection
Need State Overview
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Step 1
Overview of the nine shopping-occasion-based need
states
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Step 2
How do you compare to your competition?
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Your store experience vs. (insert competitor here)

• Atmosphere
• Product
• Price/Promotion
• Store Service
• Convenience

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Step 3
How well are you satisfying the needs of shoppers?
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Assessing your overall ability to serve
Dominant vs. Competition(166)
136
127
123
114
Small BasketGrab Go
ImmediateConsumption
101
Equal to Competition(100)
Reluctance
Discovery
Smart Budget - Shopping
Care forFamily
EfficientStock-up
Bargain-HuntingAmong Stores
Specific Item
96
75
67
Competition is Dominant(33)
55
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Step 4
Which need states fit you best?
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Care for family
What is the size of the need state?
of Total Supermarket Spending
AverageTransaction Size
ofSupermarket Trips
Need States
Care for Family
110
20
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Step 5
Which need state do you want to own?
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Beginning to position and brand your store(s)

• Select your primary need state
• Review the details in this tool to be sure you
  have a comprehensive understanding of all the
  information related to this need state

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From more information visit
www.CCRRC.org