Shopper Diary India 2009

Family First

Shoppers in India have a family first mind-set that supersedes health, financial security, personal success, spiritual/religion or lifestyle. Women are the primary shopper, and where men do play a role, the purchase decision is still often driven by the housewife.

Shoppers do almost 60 trips on average a month. This is largely driven by the need for daily essentials. They also shop regularly to fulfil an immediate consumption need (i.e. drink or meal mission). This shows they are more likely to buy on a needs basis, and only a third of shoppers stock up their cupboards as a result of this behaviour. The biggest occasions shopped for are: Snacking for kids, Treating, Tea with friends/family, In-home snacking.

Most households prepare home-cooked meals and the incidence of take away meals and eating out is low compared to other markets. Since the purchase of partially prepared and ready prepared food is low, this gives insight that the women feel the need to succeed in the kitchen, and in doing so she is taking care of her family. There is a low incidence of ordering groceries via the phone, with shoppers preferring to make their own selections.

The Role of Innovation

Brand Innovations have high appeal (and shoppers are likely to try something new if they see it on shelf)
This suggests that the range availability in the Modern Trade could encourage shoppers to be more experimental (this poses a risk for brands that are historically strong in the Traditional Trade and opportunity for new entrants or line extensions to current brands)
Indications are that increasing economic pressure is driving an increased attention to pricing, bulk buying, and prioritisation of items

How do we engage her?

Shoppers claim to be more organised and buying more on each trip (bulk shopping), which has possibly been driven by the Modern Trade.
On average, half the shoppers will write a list and plan what they need to buy.
This appears to be a function of who they are, rather than the category they are buying.
Despite high levels of planning they admit to buying more than planned (and promotions are likely to influence this behaviour)

• More than 80% of shoppers will consider the price when making their purchase decision.
  • There is a mix of shoppers who are price aware (they know what they should be paying and evaluate the price based on that);
    
  • Those who are price conscious (who will get the best value for money by looking at different pack sizes);
    
  • Those who are price sensitive (they compare the prices of brands in their repertoire).
    
  • Only 5% of shoppers will buy the cheapest brand on shelf.
• Shoppers are promotionally responsive (they like the excitement of the deal) and are most likely to stimulate incremental purchases than encourage brand switching.
  • Value-added offerings (such as extra % free, buy three get one free) have high appeal.
• Pester power will influence her to buy!
  
• In most cases they would expect to find promoted items at the main shelf although they look around when they enter the store for specials/good deals. Displays in this area are likely to catch their attention
  
• Advertising in newspaper leaflets would be effective in driving traffic to the store amongst a 3rd of shoppers

Quick Facts

1. Traditional trade accounts for 95% of share of trips, yet modern trade accounts for 12% share of spend.
   • Distribution is critical to brand success, with 88% share of spend within the traditional trade channel
2. Shoppers spend between Rs2500(R 367) and Rs4000(R587) over a six week period on groceries for the household
   • Price and pack size are key category drivers with limited spend
3. More than half of Indian households have milk delivered to their homes.
   • RTM opportunity for other categories with such high penetration of direct delivery
4. 60% of shoppers will either buy from a repertoire or are available to buy any brand. (Dealer own brands have relatively low appeal, with only 20% of Shoppers taking this into their consideration when purchasing)
   • It is important to engage and attract shoppers with relevant communication to drive conversion at the shelf as brand loyalty stretches across a repertoire.

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