Microsoft

HANG NGUYEN – MSC MBA MARKETING & BRAND MANAGEMENT

COURSE: COMPLEX SALES IN A GLOBAL ENVIRONMENT

PROFESSOR: LAURENT DELALEX

EXERCISE : Connecting shopper insights to  category growth drivers to develop store solutions.

CONTEXT : we are in a TESCO Hypermarket in the UK

TESCO is the #1 UK retailer.

The Nestlé Purina (NP) Team has collected shopper insights on dog and catfood.

A short video has been produced to explain to customers how these insights are linked

to the category drivers identified by Nestlé Purina and how they can be activated in store.

YOUR TASK Watch the video right to end (aprox. 6 minutes) and then concentrate only on the first part: Dog Food (up to 3’40’’) to answer the following questions :

1. What are the 4 category growth drivers? Please mention the names given by Nestlé Purina

They are: Right Animal Right Foods, Trade up, Treat more, Easy to shop

1. Give in max. 2 sentences the description of each driver

• Right Animal Right Foods: Puppy foods plus accessories, they provide new puppy checklist and caring for your puppy. They also provide special dietary food for older dogs
• Trade up: they create 1.2kg large cans sections and more trade up in wet dog food. They give more stocks, better availability to increase loyalty. They also increase space to 70:30 split vs. single cans
• Treat more:  They put additional treats to make impulse purchase, highlight the usage to drive frequency and trial and provide super premium food with nutritional ingredients.  They also provide promotions (free dental chew) to change long-term behaviors
• Easy to shop: They give more space on selves for large bags products and with a carry to car service so that consumers don’t need to carry themselves. They also put large bag products at the center of the Tesco to capture more shopping occasions.

1. Which product segments are proposed to activate «Right Animal /Right Food»

They proposed associated products for puppy such as collar, lead, nametag, water bowls, training equipment, toys, cleaning supplies,…

They also propose “senior plus special diet”, which are products with special dietary ingredients for old dogs to activate “Right Animal, Right Food”

1. Based on selected shopper insights mentioned in the video :

• Against which channel does TESCO compete in Petcare?

Tesco wants to compete against pet stores, petcare centers, pet supermarkets, pet pharmacy

• What is the risk of out-of-stock?

Shoppers will feel disappointed and be less loyal to Tesco, they won’t consider about Tesco anymore when they want to buy pet products and they would go other places to find their product.

1. What is the strategic importance to stock Puppy food and accessories for a store?

They make “right animal, right food” in order to build trust and loyalty and long-term relationship with their consumers, because shoppers will find it easier and faster to buy pet food and pet accessories in Tesco, which would improve their shopping experience, make them feel happier and avoid frustration and irritation if they have to spend too much time on finding some items.

...