Bob Samples
Director of Category Planning and Support
Hormel Foods
October 12, 2010
Activating Shopper Insights
How the right adjacencies canimprove shopper satisfaction
Hormel Foods
• Based on Austin, Minnesota
• 19,000+ employees globally
• 34 brands that are either No. 1 or No. 2 in their category
Category Leadership
• Fresh Deli
• Heat & Eat
• Authentic Mexican Foods
• Center Store
“Our mission is to be considered by the trade to be the leading sales company in those categories in which we
choose to compete.”
Center Store
• 77% of sales
• 82% of profits
Focus of Discussion
Activation
Results
Insights
Insight 1: Understand How Organize
• 68% Awareness of convenience products
35% knew where to find
• Convenience Shoppers want convenience items together
Insight 2: Understand the Shopper
26 live-alongs 5 retailers across 5 markets Interbrand Design Forum
InterbrandDesignForum research found that
shoppers don’t know the category,
in live-alongs many didn’t know they had in panty
“By the time I get home from work after
working late, the last thing I want is a big meal
before going to bed.” – Stacy, Denver
“I keep another pantry in my
trunk. I need to have something
they can eat on the way to
practice.” – Florence, San
Francisco
Insight 2: Understand the Shopper
Insight 3: Understand the Destination
Objective: Create an experiential center
store shopper destination for
Quick and Easy meals that
attracts new consumers to the category and
enables a deeper relationshipwith existing purchasers.
Real Meals. Real Fast.
Less Space. Less Time. More Options!
Control Set
Shopper Preference
Control set performed as well as prototypes
Key Takeaways
• Adjacencies trump signage
• Shoppers purchase more when products are grouped by occasion
• Brand/Color blocking is key
• Vertical blocking performs better
• Merchandizing systems allow packaging to work harder
Key Takeaways
• Best PracticesBi-Lo Example
Key Takeaways
Insight:• Shoppers want a 10 minute meal solution• Shopper who want convenience don’t want to search
Activation:• Convenient Meal Displays
Shopper Results:• Unit sales +30% • $ sales +24% • Number of Households purchasing +40%
Wins• >3X unit lift on display• >100% sell thru
Simple Meals – Microwave Program
• Learn your shopper– Organization
– Shopper Mindset Messages
• Help them shop– Occasion based
– Brand Emphasis
– Engaging Imagery
• Drive Results– Shopper Marketing
– Target high-potential stores
53% purchased an item they didn’t intend to purchase
Building on Success
Questions?
Thank you
Bob SamplesDirector Category Planning
and Support
Hormel FoodsPhone: 507-434-6671
Email: [email protected]
