1. Briefing notes and sales support for news media sales teams
Retail: supermarkets
Briefing notes and sales support
for news media sales teams

2. What’s in this deck?
This deck is split into two sections: Section 1 An overview of the Australian retail market The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category.
Section 2 Focus on supermarkets This report will focus on supermarkets. Additional reports will discuss other key retail sectors. Section 3 Support slides for sales presentations Every great sales presentation is tailored for each client, but there some points fit most clients within a category. Section 3 contains research about how consumers make supermarket purchases, and the contribution news media makes in the decision process.

3. Section 1 Retail: an overview

4. Retail: core of the consumer economy
Turnover: $24.9bn per month
Over 134,819 retail businesses employing 1.3m people
Sources: Australian Bureau of Statistics:
Retail Trade, Australia, March 2016.
Labour Force, Australia, Detailed, Quarterly,
81650 Counts of Australian Businesses, including Entries and Exits, Jun 2015.

5. Retail growth prospects for 2016
Retail growth was strong for most of 2015 despite less than expected growth for the Christmas/post-Christmas sales period.
Forecasts for the remainder of 2016 are for continued growth albeit at a reduced rate.
Source: economics.com/australia/retail-sales-annual/forecast; ABS

6. Retail: key sectors $24.9 billion/month Retail $10.1bn Food
Household goods
$4.4bn
Cafes, restaurants & takeaway food
$3.4bn
Clothing, footwear & accessories
$2.0bn
Department stores
$1.6bn
Other retail
Household goods (furniture, housewares, electrical/ electronic goods, hardware): 17%
Cafes, restaurants & takeaway: 14%
Clothing, footwear, accessories: 7%
Department stores: 6%
Food dominates retail (supermarket/grocery, liquor, specialty food): 43% of all retail spend
Source: Australian Bureau of Statistics Retail Trade, Australia, March 2016.

7. Retailers: big spenders on main media
Brand
Total Adex
Rank
Woolworths
$102m
2nd
Coles
$101m
3rd
Harvey Norman
$87m
4th
McDonald’s
$83m
5th
Bunnings
$50m
11th
Target
$46m
13th
Myer
$45m
14th
Hungry Jack’s
$42m
17th
Dan Murphy’s
$41m
21st
KFC
$38m
24th
Domayne
$37m
25th
Retailers made up 4 of the top 5 advertisers in 2014, and 11 of the top 25.
Retail accounts for 47% of total adspend for the top 25 advertisers.
Across all their brands
Wesfarmers Limited spent $248m
Woolworths Group $203m
Harvey Norman Holdings $126m
Suncorp Metway $86m
Source: Ebiquity, 2014 Advertisers Report

8. Retail: big spenders on news media
Retailers make up almost half of the top 25 news media advertisers.
Brand
News media
Rank
Dan Murphy’s
$40m
1st
Coles Group
$32m
3rd
Harvey Norman
4th
Woolworths
$29m
6th
Myer
7th
Target
$26m
8th
Brand
News media
Rank
Domayne
$22m
10th
Bunnings
$19m
11th
David Jones
$17m
12th
Liquorland
$13m
17th
IGA
$10m
22nd
BWS
$9.3m
25th
Source: Ebiquity, 2014 Advertisers Report

9. Section 2 Supermarkets

10. Supermarkets: #1 retail sector
Turnover $8.4bn each month
84% of food retail spend
34% of total retail spend
The average Grocery Buyer spends $139 p.w. at the supermarket 
Sources: Australian Bureau of Statistics Retail Trade, Australia, March 2016; emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

11. Where do shoppers shop most often?
Woolworths and Coles remain the dominant supermarkets, with Coles closing the gap on Woolworths.
Aldi is building its base, and has overtaken IGA as most shoppers’ main supermarket.
Smaller stores are falling behind in the main-usage stakes.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2014, 2015, 2016.

12. Buyers have repertoires of brands
Most shoppers buy from a range of supermarkets.
The average shopper buys from 3.8 different supermarket brands/month.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

13. Main Grocery Buyers: who are they?
Primarily (but not exclusively) female
Female 73%
Male 27%
Slightly older than average
Main Grocery Buyer 51
Population
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

14. Section 3 Support slides for sales presentations

15. About these slides
The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive supermarket sales, and to show how news media can help to influence the sales process.
These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements.
Recap client/agency brief
Supermarket industry support slides
Client specific analysis
Recommendations

16. 2.7% annual growth forecast.
The good news first
Expectations for continued growth in supermarket retailing for :
2.7% annual growth forecast.
Source: IBIS World: Supermarkets and Grocery Stores Market Research Report , June 2016.

17. Unprecedented competition in supermarkets
“The ­competitive landscape is changing…
While the sector has been dominated by the big two [Woolworths and Coles], Aldi and Costco are creeping in.
Metcash has been hit the hardest, but Coles and Woolworths are feeling it.”
Woolworths and Coles still dominate, but discounters are making gains. Good news for consumers. But tough for retailers.
Hugh Dive, Head of Equity
Philo Capital Advisers
Source:

18. 63% How loyal are shoppers?
of grocery buyers claim to be loyal to their preferred supermarket.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

19. In practice, brand loyalty is weak
Most Woolworths customers are also Coles customers (and vice versa).
Large brands aren’t large brands because they have more loyal shoppers. They’re large brands because they have more shoppers.
Woolworths
shoppers
13.1m
Coles
shoppers
12.7m
Shop at both
9.5m
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

20. Which media do grocery buyers turn to?
Word-of-mouth is effective with Grocery Buyers (36%), and catalogues are popular (25%).
But in main media TV and newspapers are the most important media used when making buying decisions.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

21. News media excels at reaching grocery buyers
7 million
Main Grocery Buyers
in Australia.
6.6 million
read news media each month.
Sources: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

22. The combined reach of print and digital news media:
In print and digital
Print
79%
Digital
74%
The combined reach of print and digital news media:
94%
of grocery buyers.
Sources: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

23. TV and newspapers complement each other
TV builds awareness and brand linkage, priming viewers.
Newspapers reinforce and remind to prompt retail action.

24. Newspaper ads provide high tactical flexibility
Conventional product and price ads… …and to promote competitions, promotions, and special offers

25. ADvance Creative Benchmarking
Few companies produce more effective tactical print advertising than Coles and Woolworths. We road-tested their approach using Advance creative benchmarking to see how consumers reacted to the above print ads.
1:3 shoppers say they’d buy after viewing fresh produce ads for Coles and Woolworths
1:4 WA respondents say the Coles ad gave them new information about the brand
2:5 say the Woolworths ad improved their familiarity with the brand

26. Client specific analysis & recommendations
This is the point to bridge to a client specific discussion.
Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to
Analyses that address the client’s specific situation, challenges and opportunities.
Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.