Unrolling Success: The Impact of Shopper-Centricity on Toilet Paper Sales
By Concept Sauce
- article
- Virtual Reality Research
- Shopper Research
In any retail setting, every aisle tells a story, and the strategy store managers use to organize products serves as a guide for navigating consumers through a purchasing journey to decisions. However, today’s shoppers are savvier than ever—and with a plethora of options and new purchase expectations at their disposal. They are more discerning in seeking out products that align with their values and offer them an experience. Thus, strategies that once were used to enhance the shopper journey and drive sales are lingering behind in the age of newer technologies.
5 Challenges and Strategies for Improving the Shopper Journey
What Happens When a Traditional Shelf Layout No Longer Resonates With Consumer Preferences?
Concept Sauce collaborated with a retailer to introduce technology to uncover consumer insights and enhance the shopping experience for toilet paper products in a retail environment. By conducting exit interviews and comprehensive market research exemplified in this case study, the retailer discovered that their conventional approach to organizing toilet paper products based on ply (ranging from 2 to 4 plies) and roll size stagnated.
With the right technology and insights, the retailer found that brand and price were the most influential factors in shopper decisions for toilet paper, and these characteristics significantly influenced the shopper journey.
In this article, we explore what used to be a straightforward (if not somewhat neglected) aisle in the supermarket and how it has transformed into a competitive arena for consumer loyalty.
The Limitations of Shelf Layouts Based on Product Features
While the retail client’s traditional approach to organizing its toilet paper aisle by product features alone was easy to follow, this method failed to account for shoppers’ preferences and needs. Ultimately, it was product-centric and efficient, but at what cost?
A personalized shopping experience requires a deeper understanding of the customer, user experience, and shopper segments, not just product information.
Need-Based Product Segmentation
Taking preliminary steps to improve the shopper journey, the case study subject sourced research assistance and conducted exit interviews with shoppers to survey the current market terrain. Through this process, they unearthed that consumer preference for toilet paper products goes beyond mere functional attributes—consumers want to feel like their unique needs are being met by specific products.
After examining what shoppers wanted, the retailer updated the store layouts to better match consumer preferences by organizing products to cater to specific shopper needs.
The research identified four distinct brand segments—Performance, Comfort, Naturality, and Sensory benefits—enabling a more tailored product arrangement to accommodate individual shopper preferences.
Shopper Segmentation Discoveries
By analyzing shoppers’ diverse product needs, Concept Sauce identified four distinct segments within the consumer base: hedonistic, constrained, spontaneous, and smart.
Hedonistic consumers are shoppers who prioritize pleasure and indulgence in their purchases, seeking products that offer luxury experiences.
Constrained consumers are budget- and time-conscious shoppers, prioritizing practicality and affordability in their choices.
Spontaneous consumers represent shoppers who make impulse purchases and enjoy exploring new products and experiences on a whim.
Smart consumers encompass savvy shoppers who carefully consider value, quality, and functionality before making a purchase, seeking products that offer long-term benefits and align with their lifestyle.
Recognizing these differences in segment prevalence across channels became crucial for tailoring marketing strategies and product assortments to engage each target audience within their preferred retail environment effectively.
Hypermarkets (Constrained Shoppers)
In hypermarkets, where time- and budget-conscious constrained shoppers are prevalent, the planogram was reorganized to group brands based on their similarity in meeting shopper needs. Namely, shoppers in hypermarkets look to get the ‘best bang for their buck’ when making purchase decisions, walking the tightrope between budget and quality. This efficient layout aimed to simplify the shopping experience for this segment.
Standard and Premium Supermarkets (Smart, Hedonistic, Spontaneous Shoppers)
Similarly, smart shoppers tend to gravitate towards standard supermarkets, drawn by the balance of quality and affordability offered in this setting. Meanwhile, hedonistic and spontaneous shoppers are often found frequenting premium supermarkets, where they can indulge in luxury products and discover unique, impulse-driven offerings.
Brands were strategically arranged to facilitate comparison and discovery, aligning with each segment’s unique browsing shopping tendencies.
The Outcome of This Shopper Segmentation
The new planogram proposed by Concept Sauce reflects the segmentation based on shopper needs, such as Performance, Comfort, Naturality, and Sensory needs. This reorganization aligns the product arrangement with the identified shopper segments, aiming to enhance the shopping experience and product discovery.
For instance, based on Concept Sauce’s research, the retail client is encouraged to cluster high-performance or quality items for shoppers prioritizing efficiency, while comfort-focused products are easily accessible for those seeking ease and convenience. The Naturality section features eco-friendly and organic options, appealing to environmentally conscious shoppers. Similarly, sensory-rich products like scented paper options are grouped together to entice shoppers looking to indulge their senses.
Outcomes & Impact
Transformed by a shopper-centric planogram, the retailer implemented a much-improved shopping experience and a clear trade marketing strategy that enabled tailored approaches per channel and shopper segment.
Enhanced Shopper Experience: The new shopper-centric planogram resulted in a more satisfying shopping experience, with customers finding products that aligned closely with their preferences and needs.
Increased Sales and Category Growth: This strategic realignment led to increased sales in the toilet paper category. Shoppers were more engaged and likely to purchase when the product selection was tailored to their needs and behaviors.
Feedback and Continuous Improvement: Post-implementation, the retailer continued to gather shopper feedback and monitor sales data, allowing for ongoing refinements and adaptations to the planogram based on evolving shopper preferences and market trends.
A better basis for category development both on the supplier and customer side: Identifying clear shopper segment needs allows suppliers to check their presence by segment. Tracking segment size and growth trends helps suppliers decide with customers where to play to drive category growth.
On the supplier side, creating a planogram based on shopper needs enables more in-store shopper-relevant activities. Activating the category around shopper needs is easier, offers more leverage, and is more impactful than activating around product features.
Successful planogramming hinges on acknowledging the fluid nature of consumer behavior and emphasizing the need for continuous adaptation. Retailers should perceive planogramming as a dynamic process that helps them delve into the psychology driving consumer decisions, cultivating a nuanced comprehension of consumer behavior.
The Shopper-Centric Approach for Category Growth: Revolutionizing Planogramming
For deeper insights into how shopper-centric planograms drive category growth and enhance customer satisfaction, download our complimentary ebook above today.
Author
Abs Chamali
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