Home' National Liquor News : NLN MAR 2016 Contents NATIONAL LIQUOR NEWS MARCH 2016 | 27
ABOUT NORRELLE GOLDRING & GFK: Norrelle Goldring is Shopper Lead APAC at global consumer
research and retail datahouse GfK. She has 20 years’ experience in retail research and marketing across
manufacturer, retailer and agency roles with companies ranging from Diageo to Coca-Cola to Vodafone
Stores. Norrelle helps improve shopping experiences by understanding how and why people buy things.
Call Norrelle on 0437 335 686 or email firstname.lastname@example.org.
somewhere. But just because it’s in the household
doesn’t mean it’s in the basket for a given shopping
trip, because the household might not need any of
the item right now. An example is breakfast cereal,
which has a household penetration of around 90
per cent. Breakfast cereal is a non-expandable
category, just because you buy a bigger box, doesn’t
mean you pour more in the bowl each morning.
Trying to increase the number of baskets that
include breakfast cereal is a tough ask because
more than 90 per cent of households already buy
it. There might be bigger wins in breakfast cereal in
frequency or spend.
Conversely, just because it’s in the household
doesn’t mean it is not needed. Two examples spring
to mind – consumer electronics replacement items,
and on the go beverage and snack items. More than
90 per cent of Australian households have a television
of some sort. This doesn’t mean they are not in the
market for a new one, as a percentage of consumers
will be needing to replace their television at any point
in time due to poor picture, changes in technology etc.
So if they’re in the market for a television, the game
is about getting the item into the basket in your store
not someone else’s store.
Likewise for single serve beverages and snacks
or chocolate bars, just because these items may be
stocked at home doesn’t mean there is no need. There
is a need, for on-the-go occasions. So here the game
is about channel choice – getting them to your store
to buy, but also getting basket penetration of the
additional often co-purchased item (which increases
your – you guessed it – AWOP).
And then there are categories with low household
penetration at any one time. Specialty cheese is an
example because it tends to be occasion (entertaining)
based. Categories with low household penetration
are likely to have low basket incidence. The job with
categories that have low household penetration is to
increase the incidence and purchase frequency of the
entire category, over time. This can be a longer term
job, often requiring quite a lot of education based
advertising around relevance and specific occasions.
WHY BASKET PENETRATION?
Basket penetration is often misunderstood by both
retailers and manufacturers because it can be an
outcome or result of pulling another lever (such as
AWOP or Frequency) to get the item in the basket.
Mechanics that are purely about basket incidence on
this particular shopping trip are traditionally things like
price-off discounts, win-in-store or other competition-
based promotions. Be careful with price-off discounts
though, because depending on the category, price-
off just simply rotates shoppers around brands they
already buy and you risk trading them down.
Getting an item in the basket on this particular
shopping trip will depend on the category, the
shopper’s level of involvement in and purchase
frequency of the category (are they a high, medium
or low purchase frequency shopper of the category?),
and how strong the offer is.
HOW TO INCREASE
Secondary/off location displays based on occasion
• Not just the highest traffic locations, but locations
where your product logically should have adjacency
• Use the secondary display to communicate to a
particular occasion, for example co-merchandise
crackers next to dips and cheese, or the phone
accessories positioned right next to the phones.
Consumer promotions and sampling:
• Encourage trial and the conversion of new
shoppers to a product through strong sampling and
• Price promotion is a short-term solution to
increasing basket incidence and can train shoppers
to look for whichever of their favourite items is on
special. This strategy is best used sparingly – make it
relevant to specific retail occasions.
New product and pack/format development:
• New product initiatives applied to product but
also communication of relevant format and
pack type/size for a specific occasion, based on
what shoppers and consumers need and what
the category is not currently providing. Support
with sampling and trial packs. Increase your
pack size range to increase relevance for different
Visibility, display and theatre:
• Make the category more exciting to shop. Add
theatrical elements, and an experience. Gamify
it and make it fun. Surprise and delight, even in
categories that could be considered ‘boring staples’.
To increase your basket penetration you need to
understand your current basket incidence levels by
category and subcategory, and ideally cross reference
this with household penetration numbers. Simple
basket analysis can facilitate this to ensure that the
basket penetration activities you run will actually
increase incidence rather than simply reward those
who already planned to buy.
is how many
an item on
it’s in the
it’s in the
basket for any
Links Archive NLN FEB 2016 NLN APRIL 2016 Navigation Previous Page Next Page