Shopper Trends

SHOPPER TRENDS
2013 - INDIA
PRESENTATION OF FINDINGS
Client Logo
September 2013
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CONTENTS
INTRODUCTION
• Research objectives
• Research design
STUDY RESULTS
• Market context
Shopping Behavior
• Channel shopping behavior
• Category shopping behavior
• The ‘Cross’ over shopper
Retail banner performance
• The strength of retailer brands (SEI)
• Retail banner Performance and Positioning
• Key Conclusions
2
CONFIDENTIALITY CLAUSE
The client shall not be entitled, without the written permission of Nielsen, to publish the research report
or any adaptation there of or any extract there from, whether through the medium of newspaper,
periodical, radio, television, leaflet distribution, data retrieval system, legal proceeding or otherwise.
The written permission of Nielsen must be obtained separately for each intended publication.
ShopperTrends is the currency in shopper research: an annual study that offers the most comprehensive
analysis of the changing behaviour and attitudes of shoppers in the Asia-Pacific region. It focuses on the
modern trade and outlines the key drivers of customer loyalty and resulting retailer equity within the
country
ShopperTrends contains confidential and proprietary Nielsen information that we provide to you for your
internal use.
3
RESEARCH OBJECTIVES
Retailer
Channel Shopping Shopping performance
shopping behaviour modes and
behaviour
perceptions
The ShopperTrends study
• Retail scene changes year on • Are they Promo sensitive? • Which retailer has the strongest
year? (RMS, Confidence index, • How open are shoppers on Experimentation Store Equity?
other official statistics) • Which retailers have the

• What are the Shopping Missions across
• Where and How often do channels? strongest relationship with
shoppers shop? shoppers’, thus areas to focus?

• Impact of increasing Inflation
• In Which Channel do they • What are the key factors that

• The “Cross-over“ shopper
spend most? differentiate one retailer from
• Key category Channel shopping behavior
another?
• Shopping modes by category 4
A CUP FULL OF SYNERGY TO GET A COMPLETE
PICTURE OF THE SHOPPING ENVIRONMENT
SHOPPER TRENDS
RETAIL PANEL
OFFICIAL STATISTICS
GLOBAL STUDIES
5
RESEARCH DESIGN
DESIGN TO ACCOUNT FOR DIVERSITY
Target Group:
Top 8 Metros: Mumbai, • Main grocery buyers
Delhi, Chennai, Kolkata, and key influencers
• Males / Females
Pune, Ahmedabad, • Aged 18-65 years
Hyderabad, Bangalore • SEC A/B/C
Approx. 3800
Six 20 lac+ cities: Nagpur,
Jaipur, Indore, Gurgaon, respondents across 14
Noida, Lucknow
key markets Field work dates:
June-July 2013
Methodology
Random Sampling with Via face-to-face
boosters for MT shoppers Structured interviews at
respondent home
Consideration
The Shopper Trends study is based on in-home interviewing of the target respondents; hence the findings presented in the report
8
are based on claimed behaviour, habits and spends.
SHOPPER PROFILE: STRUCTURE OF THE SHOPPER
SAMPLE
ROLE IN SHOPPING GENDER SOCIO ECONOMIC CLSSIFICATION
31%
34%
31%
69% 35%
FEMALES MALES SEC A SEC B SEC C
9
Base: All random shoppers(n=3758)
CONTD.. STRUCTURE OF THE SHOPPER SAMPLE
HOUSEHOLD INCOME HOUSEHOLD SIZE

HOUSEHOLD TYPE
22% 11%
14% 1%
8%
15% 27%
19%
54% 32%
63%
34%
HOUSEHOLD WITH YOUNGEST CHILD UNDER 5

'1-3 '4-5 MORE THAN 6
LOW MEDIUM HIGH HOUSEHOLD WITH YOUNGEST CHILD AGED 5-15
HOUSEHOLD WITH YOUNGEST CHILD AT HOME OVER 15
SINGLE/ONE PERSON HOUSEHOLD
HOUSEHOLD - NO CHILDREN/NONE AT HOME
HOUSEHOLD - WITH PARENTS
Grocery shoppers MOSTLY females, skewed to Medium income HH

10
Base: All random shoppers(n=3758)
MARKET CONTEXT
INDIA 2013: CONSUMER INSTINCTS ON INFLATION ARE

DRIVEN BY SLOWER ECONOMY AND RISING FUEL PRICES
May 2013: 10.68% FY 2011-12: 6.2% Aug 2013: INR 71.2 Jan 2012: 131
Consumer Confidence Index

Consumers Inflation
India GDP
Fuel prices
Jan 2012: 5.32% projected FY 2013-14: 5.7% Jan 2012: INR 66 Jan 2013: 120
12
CONSUMERS HAVE THEIR OWN WAYS TO ADAPT TO
INFLATION
Cutting nonessen- How do I How do I How do I
survive? Feeling the pinch
tials, some curb on Balance essentials balance? on lifestyle sustain?
essentials too vs. luxury
“My son works in a mobile show-room

“If vegetables are Rs.10, then we part-time after college and makes “We have to maintain a status. Also,
would make bhaji of channa instead of money, he uses that for his mobile what were luxuries yesterday, have
paying for vegetables that day” recharge and movie outings” become habits today”
Consumer behavior and response are different across

social class.
13
Source: Qualitative consumer understanding
EXECUTIVE SUMMARY
Shoppers continue to spend confidently in MT more so

in Super markets
Deal seeking behavior on rise; 1 in 10 shoppers shop at

MT due to Promotions as their key Mission
2 in 5 shoppers are Cross-over shoppers more for Home

care and Cooking ingredients category
Manufacturers and retailers need to work together by

having an aligned understanding of category dynamics
and shopping modes
MT sector starts to differentiate with Pricing, Range and

Service gaining importance
14
SHOPPING ACROSS TRADE CHANNELS
INDIA FMCG MARKET SHOWS A SLOW DOWN IN
GROWTH IN FIRST HALF OF 2013

Traditional Trade & Modern Trade Food Driving FMCG annual Growth
Value share
INR 2,103 BN Foods Non-Foods OTC
All India (U+R)
6%
Growth
15% FMCG 42% 52%
FY’12 : 18%
All India (U+R)

8.4 Mn Foods INR 1090 BN
stores
Growth
TT: 17% MT: 22% TT+MT: 17%
Urban: 15.6
13.2% %
Growth
Non-Food INR 876 BN

Growth
14.5 17.2
Rural: %
Growth
%
18.7%
TT: 12% MT: 19% TT+MT: 13%
12.9
%
Source: Nielsen RMS, MAT June, 2013 Source: Nielsen RMS, MAT June, 2013
16
KEY TRENDS: FOOD AND NON-FOOD
1.Impulse Food and Cooking Medium driving growth

Food
Growth 17%
Salty Snacks (31%), Non Refined Oil (26%), Chocolate (25%)
2. Price led growth of Mass Categories

Non Food
Growth 13% Toilet Soaps (16%) , Washing P. (17%), Det. Cakes (15%)
Toilet Soap, Washing Powder and Det. Cakes are growing at less than 4% by Volume
Source: Nielsen RMS Period: Year Ending June 2013 17

BIG CATEGORIES, HIGH GROWTH RATE
(4 out of 6 higher than Segment Growth)
1. Biscuits (Rs. 20,811 Cr., 10%, Growth 14%)

2. Refined Oil (Rs. 13,959 Cr., 7%, Growth 16%)
Largest 3. Toilet Soap (Rs. 12,965 Cr., 6%, Growth 16%)
Six 4. Washing Powd.(Rs.11,959 Cr.,6%, Growth 17%)
5. Salty Snacks (Rs. 11,495 Cr., 5%, Growth 31%)
6. Packaged Tea (Rs. 10,159 Cr., 5%, 11%)
Fig. in brackets : Size, Contribution%, Growth%
Green Font : Higher than FMCG Growth of 15%

STRONG COMMODITY TO BRANDING TREND FOR
GROCERY/OIL
1. Branded Rice (Rs. 1,044 Crores, Growth 38%)

2. Salty Snacks (11,495 Crores, Growth 31%) ,
Fastest 3. Non Refined Oil (Rs 9,831 Crores, 26%)
Growing 4. Palmolein Oil (Rs. 3,819 Crores, 26%)

(Threshold > Rs. 500 Crores)
5. Diaper (Rs 1,408 Crores, 25%)
6. Chocolate (Rs. 6,197 Crores, 25%)

ORGANISED RETAIL SEES FASTER GROWTH VS GT

SALES VALUE (RS. BN) OF MT AND GT
MT GT 12%
1135 1276
18%
122 144
MAT Jun'12 MAT Jun '13
Source: Nielsen RMS, MAT June, 2013 Growth SPLY
MAT JUN’13 MAT JUN’12

% SOT OF MT
10.2 9.7
# OF MT STORES 9148 9230

All India (Urban)
20
SHOPPER CONTINUE TO SPEND CONFIDENTLY IN MT

CHANNEL REPERTOIRE IN PAST 4 WEEKS
Where shopped in past 4 weeks? Channel spend most in?
2013 2012 % 2011 2010 2013 2012

Change
(+/-)
Hypermarket 75 14% 14% 0 14% 7% 5% 4%

0.93 1.25
Supermarket 35% 30% +5 29% 28% 22% 17%

1.25 2.44
44% 36% 37%

Modern Trade +8 30% 27% 21%
(Any Hypermarket/Supermarket)
Traditional 97% 95%

Grocer +2 97% 97% 69% 67%
8.91 7.91
DIP in Frequency of visits to MT stores

21
Base: All shoppers(n=3758) Fig in Red: Avg frequency of shopping /month
SHOPPER'S PREFER TO STICK TO TRIED-TESTED

BRANDS/PRODUCTS
ADOPTIVENESS: PROPENSITY TO EXPERIMENT
I seldom try new things - I find it is far

30% 29% better to know what you want rather than
34%
risk buying something that may not work
out
I sometimes buy new brands or products -

but usually I stick to my favourites
63% 65% 59%
I love trying new things - I'm always on the

lookout for new brands and new products
7% 6% 7%
(2011 n=3367) (2012 n=3770) (2013 n=3758)
Only 7% of shoppers are early adopters, but we have approx 60% of shoppers
that can be influenced through a strong new product launch concept
23
Base: All Shoppers (3758)
MT SHOPPERS SLOWLY LOOSING ON BEING
EXPERIMENTATION
ADOPTIVENESS: PROPENSITY TO EXPERIMENT
I seldom try new things - I find it is far better to

34% 37% (33) 32% (28) know what you want rather than risk buying
something that may not work out
I sometimes buynew brands or products - but

usually I stick to my favourites
59% 55% (62) 61% (67)
I love trying new things - I'm always on the

lookout for new brands and new products
7% 9% (4) 6% (7)
2013 MT Shopper TT Shopper
Base:All shoppers (n=3758) (n=1315) (n=2443)

(% figs of 2012) 24
GROCERY SHOPPING ATTITUDE
PSST…. ITS ON PROMOTION !
GROCERY SHOPPERS TEND TO BE HABITUAL

CHOOSING MY GROCERY STORES
Habitual
2012 2013
The decision on which store to shop at for
71
household groceries is an important decision and
73
it pays you to put effort into getting it right.
48
Grocery stores are all the same.
56
77
I just to go to the same store all the time.
72
When a new store opens in my area, i will always 56

go and check it out. 57
I often change stores because of interesting 17

advertising or promotions. 22
Experimental
Shoppers go to the same store most of the time; however there are 20% of
shoppers that switch stores just for promotion 27
DEALS CONTINUE TO BE ‘BIG DEALS’!

Loyalist
SENSITIVITY TO PROMOTIONS
5% 5%
Promotions rarely make me buy other brands
11% 14%
5%
11%
10%
11% I buy brands on promotion only when I like
such brands
11%
I regularly switch brands because of

54% 49% promotions
39%
I rarely switch stores but I actively seek
promotions when shopping
19% 22% I switch stores, depending on promotions they

18%
offer
2011 2012 2013
Interesting to note shoppers are now beginning to change stores for deals Promotion
Lovers
28
MT SHOPPERS MORE LIKELY TO SWITCH STORE TO
GET THE BEST DEAL

Loyalist
5% 4% 4%
Promotion rarely changes my brand choice
14% 13%
15%
10% 8% 12%
Only buy promotions when I already like the
brand
Regularly buy different brands because of

49% 48% 50% promotions
Seldom change stores but when shopping,

actively search for promotions
22% 24% 21% Change stores based on best promotions

offered
Total Shoppers MT Shoppers TT Shoppers
Promotion
Lovers
29
SWITCHING IS DRIVING BY THE NORTH AND WEST
SHOPPERS
Loyalist
5% 4% 8% 6%
13% Promotion rarely changes my brand choice
14% 20% 13%
14% 4%
10% 14% 7%
4% Only buy promotions when I already like the
18% brand
42% 43% Regularly buy different brands because of

49% promotions
55%
50%
Seldom change stores but when shopping,
actively search for promotions
29% 30%
22% Change stores based on best promotions
10% 15% offered
Total North South East West

Shoppers
Promotion
Lovers
30
MISSIONS DEFINITIONS
Daily Shop, non meal Urgent Item shopping
Fill-in / regular re-stocking Regular Stock-up
preparation - essential or emergency
Mainly to buy a items which

have got over. I come for this Mainly come to buy one or
Every day needs, non meal To buy a wide variety of items
shopping when grocery items two item which I urgently
preparation in bulk
get over before the next bulk needed
grocery shopping
Take advantage of a Buy to eat, drink, use on-the-
Daily Shop, Meal Preparation Leisure shopping
special offer or promotion go
Mainly come to take Mainly come to eat /buy l am visiting this store or
Buy grocery for Meal
advantage of special offer snack/ drink /lunch / dinner have come shopping to pass
preparation
or promotion now time / kill boredom
Special Occasion
Mainly come to buy items

for a special occasion or
celebration at home / office
(like a party or celebration)
32
TT: MIX OF LARGE AND SMALL BASKETS

MT: MAINLY LARGE BASKETS
REASON FOR VISITING THE STORE: SHOPPING MISSIONS
ALL MT TT
MT 2012
SHOPPERS SHOPPERS SHOPPERS
Fill-in / regular restocking 26 31 29% 20
Daily Shop, non meal preparation 22 18 17% 25
Urgent Item shopping

- essential or emergency
16 11 12% 22
Regular Stock Up 16 17 15% 14
Daily Shop, Meal preparation 8 5 7% 11
Take advantage of a special offer or

promotion
6 10 11% 1
Buy to eat, drink, use on-the-go 3 1 4% 5
Leisure shopping 3 5 2% 1
Shop for a special occasions 2 3 3% 1

(n=1315) (n=2443)

1 in 10 shopper shop at MT for Deals 33
PROXIMITY TO HOME, CONVENIENCE & PERCEIVED
LOW PRICE DRIVE SHOPPING IN TT

REASONS FOR SHOPPING AT TRADITIONAL TRADE 2012
The kirana store is located closer to home 87%

Visit kirana stores as it more convenient for small shopping trips 56%
Kirana stores offer low prices 56%
They offer better quality products 47%
I have been visiting the same kirana store since long 28%
Products bought from kirana stores are generally more fresh 46%
Supermarkets have greater stock outs 41%
Kirana store delivers to my home 36%
There is no supermarket close to my house 31%
Kirana store offers credit 35%
Supermarkets are more premium compared to kirana stores 38%
Kirana shopkeeper knows what I want, I just need to give the list 26%
Other
34
Base : All Traditional trade shoppers (n= 2443)
DISTANCE AND PERCEIVED HIGH PRICES ARE KEY
BARRIERS TO MT SHOPPING
REASONS FOR NOT SHOPPING IN MT STORES
2012
Distance from my home 82 75
Going to MT is not convenient to make small shopping trips 62 55
MT charge high prices 58 55
MT don't offer better quality products 35 44
Products bought from MT are generally not fresh 33
35
MT have greater stock outs 29
35
MT don't provide home delivery 36
32
MT don't offer credit facility 32
31
I don't get my community related products at MT 24
29
There are longer queues at MT 34
There is lots of rush at MT 42 28
Amount spend in travelling to MT, eats up the savings offered by it 32 27

MT has Air Conditioner/AC, that's why they charge more 28 22
When I go to MT for shopping I end-up spending more than the budget 27 19
35
Base : All Traditional trade shoppers (n= 2443)
IN SUM: CHANNEL OVERVIEW
Footfalls in MT continue to increase, along with higher

proportion of Spends, yet avg number of visits dip
Bargain seeking behavior on the rise, Shoppers more open

2 to switch stores to get the best Deal.
Shopper exhibit lower Experimentation and continue to stick

3 to tried-tested brands/products
MT caters to larger baskets while TT caters to both larger

4 and smaller baskets. 1 in 10 shoppers shop at MT to take
advantage of Deals
36
RISING FOOD PRICES
WITH INCREASING FOOD PRICE, SHOPPERS STICK TO

BUYING ESSENTIALS OR BUYING IN BULK
RESPONSE TO GROWING INFLATION
. Average total monthly spend on food Response to food price increase

grocery and personal care items
Buy only the essentials we 48

INR 5500 (2013) need/cut down on luxuries 39
10%
INR 5000 (2012) Buy in bulk to get lower prices 37
35
Buy less in total 33
32
Perception of food prices
Actively look for and buy 16
products on… 17
93% of Indian shoppers
Switch to cheaper brands 9
perceive food prices to 10 2013
be increasing Does not affect me 8 2012
8
38
Base: All shoppers (n = 3758)
7 IN 10 SHOPPERS HAVE CHANGED THE WAY
THEY SHOP, MORE SO IN IMPULSE CATEGORIES

INFLATION IMPACT ON SHOPPING BEHAVIOR CHANGE FOR KEY CATEGORIES
Home &
Fresh
Personal care
Fresh Fruits & Vegetables Shampoo, Laundry detergents
82%
75%
73%
claim to have Impulse food Beverages
changed the way items
they shop
Chocolates, Salty snack & Biscuits Fruit Juices, Soft Drink, Mineral
water
83%
81% 64%
77%
74%
81% 39
SHOPPERS TODDLE B/W BULK AND BUYING

ESSENTIALS FOR KEY GROCERY CATEGORIES
RESPONSE TO RISING FOOD PRICES ON CATEGORY PURCHASES
3.5
3 Does not influence

Value packs,
Promotions 2.5
Beers, Wine and Spirits

2
Buy in bulk
1.5
Staples
Look for discounts, coupons
1
Coffee/Tea
Laundry Detergents & HH
Cleaners Buy less imported products
0.5
Sanitary Protection
Shampoo & Hair Conditioner Bottled Mineral Water Which Price bands
Buy only essentials
Shop
0
often for needs only0 are important
-3 -2 -1 1 2 3 4
Buy Store brands Carbonated Soft Drinks here?
Discounts Shop at lower price stores
-0.5
Salty snacks
Chocolate & Biscuits
& value Packs Fruit Juices
-1
Fresh fruit & vegetables Buy less Fresh fish or seafood

-1.5 Fresh meat or poultry
Lower quantity
& stick to essentials
-2
40
Base: All shoppers whose category purchasing is affected by food price increases
TWO IN FIVE SHOPPERS ARE ‘CROSS-OVER’
SHOPPERS
CHANNEL USUALLY SHOP CATEGORY
Modern Trade
Traditional Trade
Chocolate
Biscuit Laundry Detergent Milk based drink
Hair oils Shampoo Packaged juices
Skin cream /lotions Branded Atta Toiletries
Staples Cooking medium oil Sanitary napkins
Fruits & Vegetable
Meat & Chicken
Fresh fish or sea food
*Cross over shopper defined as those who shop at both MT & TT for the category 41
TWO IN FIVE SHOPPERS ARE ‘CROSS-OVER’
SHOPPERS
CHANNEL USUALLY SHOP CATEGORY
8 7
15
25 26 23
26
33
27 31 30 27 28 30 7 6
35 39 39
29
19
40
39 38
44
61 57 56 48 49
53 47 37 37 58 59
56
51
34 37
31 28
21 21 23 23
15 15 15 18 18
Total Cooking Laundry Shampoo Toiletries Branded Packaged Milk Hair oils Skin care Sanitary Biscuit Chocolate Staples Fruits & Meat & Fresh
Oil atta juices based napkins Vegetable Chicken fish/sea
drinks food
Only TT TT+ MT Only MT
*Cross over shopper defined as those who shop at both MT & TT for the category 42
HOW DO SHOPPER SHOP OF THE CATEGORY?
Could you please tell when you most recently bought _________(MENTION CATEGORIES ) which of which of these things do you
recall happening during your last shopping trip at the store?
8. Price/ Promotion
1. Habitual : I just bought the same brand I
• Checked prices: I chose product after checking Price on the pack
always do • Bought on promotion: I chose a product that was on
promotion(for eg 1+1, freebee), in-store
2. Advertising : I chose a brand I’d seen • Discounted price: I bought a product that had a price off
advertised recently • Special display: I chose product from a special display on
discount
3. Voucher / free Coupon: I used a discount
9. Pack induced browsing
coupon (from manufacturer / retailer flyer) • Read pack description : I chose product after checking
information on the pack / packs
4. Family Preference: I bought one that family • Saw Shelf: I chose a new product that looked interesting, on
member/s prefer shelf
• Attractive pack: I was attracted to the product by its packaging
5. Accompanied/ Friend recommendation : I
10. Signage/poster: A sign, some graphics, a poster on the shelf, or
bought the one which someone an in-store TV advertisement, caught my attention
recommended 11. Saw near checkout : I just picked it up when I saw it at the
checkout
6. Accompanied person saw and bought: 12. Tested it in-store: I tried / tested / tasted the product in the
Accompanied me to buy that one store
13. Sales staff recommended: I chose the product a sales promoter
in-store recommended
7. Bought a New product/brand
The next 5 slide will analyze this Shopping behavior across categories 43
ESSENTIALS USUALLY BOUGHT IN AUTO-PILOT

HABITUAL INDEX - THOSE SAYING “I JUST BOUGHT THE SAME BRAND I ALWAYS DO “
95 Shampoo
Fish or Seafood 136
95 Biscuit
Meat / Chicken 133

93 Hair oils
Staples 120
90 Chocolates
Habitual
Fruit & Veg 107
or Auto- Skin
89 creams/lotions Browsers
Pilot Branded
100 Laundry
Atta/ Flour 88
Detergents
87 Personal
Milk based 99 Toiletries
products
86 Sanitary
Napkins
Cooking 98
oils/ghee 85 Packaged
Juice
(Index Vs Total)
>97:Above Norm
<97:Below Norm 44
WHEN WE KNOW MORE ABOUT HOW SHOPPERS
BROWSE, WE CAN ADJUST TACTICAL STRATEGIES

HOW SELECTED CATEGORY DURING THE LAST SHOPPING TRIP
IN-STORE BARGAIN- ADVERTISING

HUNTERS ACTIVATED
BROWSING
Chocolate Toiletries Chocolate

Juices Sanitary napkin Milk based drinks
Shampoo Shampoos Atta
Milk based drinks Biscuits
Biscuits Laundry
Skin creams/lotions Oil/Ghee
CREATE CALL-TO Index vs Total
MAKE IS EASY TO >110:Above Norm
DISPLAY TO ENGAGE ACTION POSM TO
COMPARE PRICE <90:Below Norm
REMIND SHOPPERS
45
Base: All shoppers (n = 3758) * See notes for attribute clubbed in In-store, Bargain hunter & Advertising activated
KNOWNING WHEN TO ‘PUSH’ OR “PULL” THE SO
THAT THE SHOPPER RESPONDS?

Which categories are ‘pushed’ by in-store activity and which are ‘pulled’ in market/s?
PRE-STORE INDEX pull push-pull
Brand choice is influenced before

 Category
going C
into store.  ActivateLpurchases using a
Category 
Category D
combination of pre- & in-store
 Advertising,
Category I
generating buzz &
being the preferred brand
triggers
arekeyCategory J  Category F
 Category E
 Category G  Category A  Category M

 Category 0 In-store influences rule.
Opportunities to activate
 Category H
purchasing are low
Think promos, price,
 Categorypackaging
K
merchandising,
 Category N
 Category B
low activation push
IN-STORE INDEX
46
* See notes for attribute clubbed under Pre-store and In-store
MOST CATEGORIES PRESENT AN OPPORTUNITY FOR
BETTER ACTIVATION IN THE TT CHANNEL

Purchase Activation (TT shoppers)

Pull Fresh fish and Sea Food
Pre-Store Index
Push-Pull
Meat and Chicken
Staples - rice , wheat
Cooking mediums-oil , ghee

Milk based products-
Fruits and Vegetables Butter,Cheese etc
Biscuit Hair Oils

Shampoo
Opportunity to Toiletries Chocolate
activate better Branded atta flour
Skin creams & lotions
Low Activation Laundry detergent
Sanitary napkin Push
In-Store Index
47
Base: All TT shoppers (n = 2443) * See notes for attribute clubbed under Pre-store and In-store
OPPORTUNITY TO ENGAGE WITH LAUNDRY AND
BISCUIT SHOPPERS IN MT
Purchase Activation (Modern Trade shoppers)

Pull Push-Pull
Pre-Store Index
Staples - rice , wheat
Meat and Chicken

Fruits and Vegetables Milk based products-
Laundry Detergent
ghee,cheese
Chocolate
Biscuit
Hair Oils
Branded atta flour
Personel Toiletries Shampoo
Cooking mediums-oil , ghee
sanitary napkins
Skin creams and lotions

Push driven in MT
Opportunity to activate better

Low Activation Push
In-Store Index
48
Base: All MT shoppers (n = 1513) * See notes for attribute clubbed under Pre-store and In-store
SUMMARY
Shoppers combact inflation differently across categories: Either Stick to

essentials or Buy in Bulk
2 in 5 shopper the same categotory from from both MT & TT, higher
2 proportion for categories like Laundry, Shampoo, Atta & Cooking oil
For Auto-pilot categires like Branded Atta/Oil, Fresh: Ensure Availablility &
3 making it Easy-to-find in the store
Impulse categories, Skincare and MFD‘s exhibit high In-store browsing

4 behavior:- Continue to highlight Range and Engage instore
Categories like Personal care exhibit high Bargain hunting behavior:

5 Ensure pricing comparision are easy to make
Most categories present an opportunity for better activation in the TT

6 channel
49
PRIVATE LABEL ON THE RISE
Store-own brands are widely accepted across the globe as
a lower priced alternative.
Top 5 categories (n23,658)

Across 17 categories in 12
countries (n23,658) 52% Diapers
46% Beer
41% 45%
43%
Breakfast cereal
Carbonated Soft
Of shoppers bought Store- Drinks
Owned brands in the past 4
42% Coffee
weeks*
Source: Category Shopping Fundamentals

Nielsen Syndicated study across 30 countries
51
Q: Have you bought a store brand in <category> in the past 4 weeks?
PRIVATE LABELS HAVE MUCH HIGHER SHARE THAN
MORE DEVELOPED MT MARKETS

PRIVATE LABEL SHARE IN MODERN TRADE
STORE FORMAT DEVELOPMENT 24.5%
13.6%
8.6%
6.8%
5%
3.3%
1.7%
0.8%
CHINA INDONESIA THAILAND INDIA HONG KONG SINGAPORE NZ AUSTRALIA
52
PL HAS GROWN BY 22% OVER LAST YEAR AND
ACCOUNTS 5% TO TOTAL FMCG SALES IN MT

PRIVATE LABEL SHARE IN MODERN TRADE INDIA
145456.00
117609.25
23.7%
% GROWTH
22.0%
5691.6 6946.5
MAT DEC'11 MAT DEC '12
All India - PL All India - MT
RS. MN. Growth over previous year
6 Base Metros : Delhi NCR, Kolkata, Mumbai, Chennai, Bangalore, Hyderabad

Source : Nielsen RI (FMCG + MT Exclsv Audit) & Secondary Research 53
FOOD CATEGORIES CONTRIBUTE AROUND 76% TO THE TOTAL

PL SALES IN MT
Non-Food Product – Sub-Groups Modern Trade product Food Product – Sub-Groups

mix
BABY CARE
4% 19%
24% PRODUCTS
0% 40% COOKING
4% 14% 16%
1% 1% MEDIUM
9% OTHER FOOD
8% PRODUCTS
19% HOT
35% 17%
BEVERAGES
IMPULSE FOOD
12% 59%
42% PRODUCT
24% PACKAGED
GROCERY
BABY CARE PRODUCTS
FABRIC CARE OTC PRODUCTS
GENERAL
HAIR CARE FOOD PRODUCTS
HOUSEHOLD CLEANING
PERSONAL CARE - GENERAL NON-FOOD PRODUCTS
PERSONAL CARE - MEN
COOKING
21% MEDIUM
17% 0% 24% OTHER FOOD
3% 52%
3% 0% PRODUCTS
11% 15% HOT
47% BEVERAGES
IMPULSE FOOD
19% 20%
5% 8% PRODUCT
0% 76%
22% PACKAGED
GROCERY
Private Labels product mix

Non Food + OTC growth over MAT Dec‘11 Food growth over MAT Dec11
54
FOR MOST OF THE CATEGORIES THE PL GROWTH IS
HIGHER THAN MT GROWTH

TOP PL FOOD CATEGORIES BY VALUE SALES
PACKAGED RICE 1,168 21% 1% 68%
PACKAGED ATTA 1,063 21% 16% 26%
PACKAGED PURE GHEE 604 12% 9% 27%
PACKAGED TEA 377 7% 46% 22%

PL VALUE OFFTAKE IN RS. MN
SALTY SNACKS 277 6% 24% 32% VALUE OFFTAKE PERIOD MAT DEC‘12
SPICES 273 10% 12% 9% PL PENETRATION IN THE CATEGORY MT SALES
REFINED EDIBLE OILS 231 2% 420% 25% PL VALUE GROWTH (MAT DEC‘12 OVER MAT DEC‘11)
BISCUITS 181 2% 64% 26%
MT VALUE GROWTH (MAT DEC‘12 OVER MAT DEC‘11)
VERMICELLI & NOODLE 152 4% 9% 20%
KETCHUPS/SAUCES 129 8% 55% 22%
BREADS 110 17% -6% 7%
NON-REFINED OILS 99 3% 2476% 10%
PICKLES 88 14% 84% 13%
JAMS/JELLY/MARMALADES 85 11% 15% 16%
BREAKFAST CEREALS 83 3% 41% 23%
55
Source : Nielsen RI (FMCG + MT Exclsv Audit)
FOR MOST OF THE CATEGORIES THE PL GROWTH IS
HIGHER THAN MT GROWTH

TOP PL NON-FOOD CATEGORIES BY VALUE SALES
CLEANERS - FLOOR 272 24% 7% 21%
TISSUE PAPERS 225 28% 45% 32%
CLEANERS - TOILET 199 16% 34% 31%
CLEANERS - UTENSIL 175 9% 16% 27%

PL VALUE OFFTAKE IN RS. MN
WASHING POWDERS/LIQUIDS 153 2% 55% 26%
LIQUID TOILET SOAPS 116 8% 18% 32%
ALL AIR FRESHNERS 86 10% 32% 40% VALUE OFFTAKE PERIOD MAT DEC‘12
CLEANERS - GLASS 56 28% 49% 36%

PL PENETRATION IN THE CATEGORY MT SALES
DIAPERS 55 2% -16% 18% PL VALUE GROWTH (MAT DEC‘12 OVER MAT DEC‘11)
TOOTH BRUSH 54 5% -18% 24% MT VALUE GROWTH (MAT DEC‘12 OVER MAT DEC‘11)
PHENYLS 53 25% 23% 15%
SCOURING PADS/SCRUBS 53 15% 87% 58%
FRAGRANCE-PERFUM,DEO & COLOGNE 43 1% -7% 19%
DETERGENT CAKES/BARS 38 3% 4% 21%
TOILET SOAPS 26 0.4% 5% 32%
Source : Nielsen RI (FMCG + MT Exclsv Audit)
56
PRICE AND NO PERCEIVED DIFFERENCE IN QUALITY
ARE THE KEY DRIVERS FOR PRIVATE LABEL PURCHASE

REASONS FOR PURCHASE OF STORE BRANDS
Quality just as good as named

25
brands
Quality of store brand is improving 21
Less expensive than name brands 19
Good value for money 27
Word of mouth 13
Products I want are only available in

12
store brands
57
Base: All MT shoppers who know private label
EVEN EMOTIONALLY-LADEN CATEGORIES SUCH AS DIAPERS (IN

INDIA) ENJOY LITTLE PERCEIVED QUALITY DIFFERENCES
Store Brand Known brand
77 79 78 78
75 76 75 75 75 74 75 75 75 74 74
71 70 69 72 70 71 72 70
68 68 67 67 68 68 68 66 67
64 65
Total
CSD
Chocolate bars
Salty Snacks
Coffee
Toothpaste
Beer
Deodorant
Baby diapers / nappies
Breakfast cereal
Hair shampoo
Ice cream
Laundry detergent
Tea
Toilet cleaner
Tomato ketchup/ sauce
Yoghurt
Source: Category Shopping Fundamentals
Nielsen Syndicated study across 30 countries
Figures expressed in mean score;

1 = very low quality perception
100= very high quality perception
Q. Quality Perception of Manufacturer vs Store Own Brands 58
(Mean on a 100 score scale)
BIG BAZAAR, RELIANCE LEAD WITH STORE
BRAND/OWN BRAND AWARENESS

AWARESNESS OF STORE BRANDSA
2013
45
20
15
12
8
5 5
Big Bazaar/ Reliance Metro Spencers Easy Day D-mart Star bazaar
Pantaloons
59
BIG BAZAAR AND D-MART LEAD ON STORE BRANDS
BEING BOUGHT
PURCHASERS OF STORE BRANDS IN PAST 4 WEEKS
Big Bazaar 26
Buyers
Non- of Spencers 3
Buyers Private
of Label in
Private P4W, 48
Label, 52
Easy day 3
D-mart 7
Star
bazaar 2
60
PERSONAL CARE, HOUSEHOLD PRODUCTS & STAPLE

FOODS ARE BEING BOUGHT
CATEGORIES OF STOER BRANDS PURCAHASED
Personal Care include Shampoo, soap or other hair and… 51
Household products, like cleaners 42
Staple foods (rice, flour, pasta, etc) 38
Any paper products like tissue paper, paper towels, or… 33
Canned and package groceries 29
Noodles/Pasta 20
Dairy Products (milk, butter, ) 19
Carbonated Soft Drinks 16
Frozen and chilled foods 15
Non Carbonated Soft Drink & Juice 15
Snacks 13
Confectionary 12
Baby Food 6
61
UNDERSTAND THE QUALITY GAP DIFFERENCE TO
DEVELOP TAILORED CATEGORY STRATEGY AND
TACTICS
Manufacturer Retailer
Strategic implication Strategic implication
(Quality perception gap = close) (Quality perception gap = distant)
Claim your ground: Brand build to tell the ‘quality’ story:
Range  Focus on innovation  Introduce tiers (value, mid-range, premium)

Pack  New and improved /cater for occasion  Aesthetically improve to differentiate
Price  Differentiate to defend price premium  Use price to reflect positioning
Promotions  Testimonials: enhance point of difference  Free samples (confirm quality) & trial
Touchpoints  Reinforce image/positioning via traditional  Leverage brand messages through “owned
/ digital means (TV, Sponsorship, websites) assets” (pre/in-store/at shelf) consistently
62
RETAIL BANNER PERFORMANCE
WINNING BRANDS™
The Winning Brands™ model is Nielsen’s proprietary approach to monitor brand equity and brand
condition. In the Shopper Trends study this methodology is used to understand the complexity of
retailer choice and to identify the brand equity of retailer chains.
This methodology was Regular benchmarking

developed jointly with against market data in
award winners and brand order to ensure a
equity experts: Prof. Kevin significant correlation
L. Keller and Prof. John
Roberts. ‘Winning with the brand’s market
share.
Brands’
A huge benchmarking
Brand Equity database for various
Model sectors and categories.
64
BRAND EQUITY MODEL
Brand equity results from consumer response.

What do consumers know? What do consumers do?
SOURCES OF BRAND EQUITY OUTCOMES
Are they aware of it? Symbols and Is this one of my Am I willing to

Does it deliver? emotions favourite brands? recommend it to
evoked others?
Would they Rumours and

consider it? concerns about the
brand
Is it popular? What are Am I ready to pay

other people’s more for it?
opinions?
We identify the image of the brand and other We measure brand equity by analysing consumer
sources of value in order to get a better response evoked by the brand, associations around it
understanding of the source of brand equity. and brand consideration. This gives us reliable information
This helps to build a hierarchy of importance in concerning the market position of the brand.
marketing efforts.
65
STORE EQUITY INDEX (SEI) – WHAT IS IT BUILT
UPON
What is brand equity and what are its key elements?
The Store Equity Index is determined

The Store Equity Model allows us to by the outcomes reflecting the high
deconstruct the sources of brand brand equity in reality: the emotional
equity in order to understand its key value as well as motivation to pay a
components. higher price and to travel to the store.
SOURCE OUTCOMES
Awareness (%)
Preferences
Loyalty
Recommendations
Consideration (%) Store Equity
Index
Connotations (%) Higher price Readiness to pay more
(SEI-Store Equity
Connotations (%) Index)
Store location Readiness to travel further
Connotations (%)
66
STORE EQUITY INDEX (SEI)
STRENGTH OF RETAIL BANNERS
IN SUM: DRIVERS TO MT STORE CHOICE
Sector starts to see differentiation with Range, Price &

Service
Opportunity to engage shoppers with Reward programs &

2 Store brands. With growing foot fall to appear ‘Spacious’ is
key
Shopper at Reliance & More are more likely to switch stores
3 depending on promotion. Easy day is not the key store
among its shoppers
71
IN SUM: BANNER WISE PERFORMANCE

Key Take out Take-outs
Leader needs to lead the way in the sector
• Maintains on leadership position with slight erode in Conversion
Big Bazaar
• Mission: Stock-up & Fill-in, 13% visit store to take advance of Promotion
• Endorses Fresh imagery & provides a great shopping experience
• Maintained status quo on SEI but dips on Retention

Reliance • Missions: large basket missions
• Key Strengths: Wide range of products
• Maintain overall Brand picture. Need to strengthen Retention
• Missions: Stock-up
More
• Strong on Reward programs and Customer experience.. Positive endorsement
for Organic
• Spencer gains in SEI in 2013
Spencer’s • Missions: Stock-up
• Seen as a One-stop shop and Efficient in billing
• Slips on Conversions but maintain on Retention Key missions: Everyday needs
(non-grocery)
Easy day • Most shopper have 2 stores in the repertoire
• Opportunity to capitalize on Store brands to build positive perception on low
price
72
THANK YOU

Shopper Trends

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SHOPPER TRENDS

The ShopperTrends study

other official statistics) • Which retailers have the

• Where and How often do channels? strongest relationship with

shoppers shop? shoppers’, thus areas to focus?

• In Which Channel do they • What are the key factors that

PICTURE OF THE SHOPPING ENVIRONMENT

DESIGN TO ACCOUNT FOR DIVERSITY

ROLE IN SHOPPING GENDER SOCIO ECONOMIC CLSSIFICATION

FEMALES MALES SEC A SEC B SEC C

CONTD.. STRUCTURE OF THE SHOPPER SAMPLE

HOUSEHOLD INCOME HOUSEHOLD SIZE

HOUSEHOLD WITH YOUNGEST CHILD UNDER 5

Grocery shoppers MOSTLY females, skewed to Medium income HH

INDIA 2013: CONSUMER INSTINCTS ON INFLATION ARE

Consumer Confidence Index

“My son works in a mobile show-room

Consumer behavior and response are different across

Shoppers continue to spend confidently in MT more so

Deal seeking behavior on rise; 1 in 10 shoppers shop at

2 in 5 shoppers are Cross-over shoppers more for Home

Manufacturers and retailers need to work together by

MT sector starts to differentiate with Pricing, Range and

GROWTH IN FIRST HALF OF 2013

All India (U+R)

Non-Food INR 876 BN

KEY TRENDS: FOOD AND NON-FOOD

1.Impulse Food and Cooking Medium driving growth

2. Price led growth of Mass Categories

Source: Nielsen RMS Period: Year Ending June 2013 17

BIG CATEGORIES, HIGH GROWTH RATE

(4 out of 6 higher than Segment Growth)

1. Biscuits (Rs. 20,811 Cr., 10%, Growth 14%)

Source: Nielsen RMS Period: Year Ending June 2013 18

1. Branded Rice (Rs. 1,044 Crores, Growth 38%)

Growing 4. Palmolein Oil (Rs. 3,819 Crores, 26%)

5. Diaper (Rs 1,408 Crores, 25%)

6. Chocolate (Rs. 6,197 Crores, 25%)

Source: Nielsen RMS Period: Year Ending June 2013 19

ORGANISED RETAIL SEES FASTER GROWTH VS GT

MAT Jun'12 MAT Jun '13

Source: Nielsen RMS, MAT June, 2013 Growth SPLY

MAT JUN’13 MAT JUN’12

# OF MT STORES 9148 9230

SHOPPER CONTINUE TO SPEND CONFIDENTLY IN MT

Where shopped in past 4 weeks? Channel spend most in?

2013 2012 % 2011 2010 2013 2012

Hypermarket 75 14% 14% 0 14% 7% 5% 4%

Supermarket 35% 30% +5 29% 28% 22% 17%

44% 36% 37%

Traditional 97% 95%

DIP in Frequency of visits to MT stores

SHOPPER'S PREFER TO STICK TO TRIED-TESTED

I seldom try new things - I find it is far

I sometimes buy new brands or products -

63% 65% 59%

I love trying new things - I'm always on the

(2011 n=3367) (2012 n=3770) (2013 n=3758)

I seldom try new things - I find it is far better to

I sometimes buynew brands or products - but

59% 55% (62) 61% (67)

I love trying new things - I'm always on the

Base:All shoppers (n=3758) (n=1315) (n=2443)