Commercial Update 2017/09

Posted by europanel on Aug 30, 2017

September 2017: Strategy Update

In early 2014, we developed a vision statement to guide us as a business. Our vision is ‘Global Consumer Simply Delivered’. We are our clients’ lens to understanding Global Consumer Behaviour to enable them to change strategy and grow.

To enable each of us to bring this vision to life, as a day to day reality, we have set out our longer term aspirations and will measure our progress through a set of goals. We set these up in 2016 with the theme of Future Focus.

Those were developed through a combination of feedback from our Clients and People.

This year we want to socialise our vision, mission and goals with you our countries and at the same time share our 2017 Workstreams. Our Workstreams are refreshed every year and each member of Europanel will be working across at least one which link into their objectives.

We will significantly increase our chance of success if our people live and breathe our values every day. With that in mind I really like this quote from Netflix “The actual company values, as opposed to the nice-sounding values, are shown by who gets rewarded, promoted, or let go.”

When we look at our aspirations there are many examples within our business of growing connections and I would like to share the following:

Simple delivery is a critical component to being our client lens into consumer behaviour. GCD Next, our delivery system, allows our client to understand their consumer behaviour globally. It is very difficult for our clients to work out a strategy if the data isn’t harmonised and is in different systems. This is a starting point…

The speed of set up (most recently for J&J, RB and Colgate) is impressive, has reduced significantly over the years and has led to winning new clients (Danone, Nestlé Waters). What has changed in recent years is the quoting tool. In a recent meeting with Nestlé Waters, we could do ‘what if scenarios’ with the tool at the meeting to change the price to reflect revision in the spec… and we won the business! It is that sort of change that enables us to grow and help our clients at the same time! Our countries are critical we develop these improvements in our service so thank you for you continued support for GCD Next.

The inclusion of LIDL has challenged us as a company into shaping our data to meet their needs. However, this has given us a fantastic new revenue opportunity, not only with other retailers but also with new KPIs. We are delighted that Stefano Giusti has joined us to build and develop these connections.

Another one of my highlights was how we helped Mondelez to understand the Omnichannel global consumer behaviour in China, UK and France across their categories. This will help them grow through understanding the quantification against each opportunity.

We also helped Coke to understand shopper motivations, using trip replay to understand everything about the in-store experience and to link it back to the panel (via weighting). We therefore understood what was purchased and consumed where and by whom in order for them to change the way they activate in store and to help them develop strong retail stories. This project also grew our Client connections giving us access to new, more senior, client contacts where we are competing with many research/consultancy approaches. Internally many people supported us and we are very grateful, particularly to the ROC, whose support was outstanding!

P&G wanted to understand how people rate their products. We stretched the use of LinkQ by creating a new global capability, opening new connections to the R&D team within P&G. The reasons behind this success were:

  • Our new methodology was cost eective (50% less than last year)
  • It delivered faster insights that will accelerate ROI

 

For Unilever over the last year one of the most exciting developments has been the new WOW chart and it really is! For every piece of strategic work we do for Unilever we develop a one pager, or WOW chart, which contains the client business issue, the insight, recommendation, size of opportunity, transformational action (which we can only do with client input) and the killer slide.

Whilst Unilever is a Kantar led account Europanel and our behavioural data plays a significant role and is at the heart of many of the decisions Unilever take.

My final highlight was the work the BG20 team did for Unilever around Consistent Growth, a massive and detailed project that got to the heart of what drivers Unilever need to push in order to get consistent growth in penetration. Stan Sthanunathan, Unilever Global CMI head, landed this in his key note address to the top 100 most senior leaders within Unilever and most importantly gave them very actionable recommendations. Something our Industry needs to do more of!

These 7 highlights already demonstrate many of the aspirations we have set out as Europanel. Please let us know if you would like more details.

So a massive thank you to all the people within Europanel and within our Country networks that have contributed to the amazing work shared in the highlights above.

When we look forward into September we are hugely excited to share something we have been pro-actively working on within the BG20 team. This follows our video a few years ago ‘Only one way to win’ – demonstrating that driving buyers/growing penetration was the key driver of growth and establishing golden rules of buyer behaviour.

The next instalment is in the form of a playbook and is titled ‘Once is not enough’ and this takes the concept of driving growth, by attracting buyers, to the next level including the importance of attracting buyers at every occasion/situation.

We are looking to launch this in September, to all clients that have a full BG20 membership – this includes Unilever, P&G, Coke and many more. As a broader thought piece, the work is not client specific but does contain some case study examples.

Look out for more communication around this from Rob Wade and the BG20 team.

Helen

 

2017 both now and in the future is critical for our growth path and personally and for the business this is a very exciting time for Europanel.

 

Key Accounts

The progression to new ways of working and organisation structures continues at Unilever. On the Unilever side, the Centres of Excellence are now up and running and working in partnership with the BPI CMI. On our side, the Spock communities for Global Category and CCD have been launched.

In June, we promoted our Drivers of Trial solution through the successful Kantar Infuse event at Sea Containers House in London – there was great feedback on the solution and John Truelove will be leading a sales push in this area to maximise the interest we have generated.

2018 contract discussions are ongoing with Alex Hardy, BV Pradeep and Unilever procurement. Our lead team is Helen Passingham-Hughes, Kat Castro, Andy Parkinson and Raj Halabi.

Personal Care

Unilever continue to work on portfolio optimisation within the small C categories. In the second half of the year the focus will shift to other pillars of the PC Strategy including innovation, channels (especially drugstores and e-commerce) and how to target Gen S. We have some big proposals in play which bring together the panel with other key strategic understanding pieces into a demand framework, and help Unilever monitor opportunities in a more agile way.

Homecare

After a successful H1 with a strong emphasis on value creation, Homecare is starting to refocus on longer term growth opportunities and portfolio fit for the future.

Key focus areas are Fabric Conditioner Strategy and role of stretch brands across Fab Clean and Con; Following a strategic innovation review, Homecare is also addressing key pillars across their innovation strategy in the coming months

Foods

The first half of 2017 was focused on short-term performance in response to the Kraft/Heinz takeover bid but second half focus of 2017 will now revert to medium to long-term strategic objectives which should unlock revenue opportunities.

Strategic priorities for second half of 2017 are:

  • Pan-Foods – Long-term sustainable pricing strategies through a better NRM process, a scientific understanding of the drivers of growth and growth hunting through de-averaging
  • Dressings – Project Franklin evaluation (On the side of food ATL campaign and new ketchup skus), shopping and e-commerce target of creating a €45m on-line business, reversing / slowing decline in Brazil, driving NRM process and restaging the Maille brand through innovation and content
  • Savoury – Deconstruct penetration growth drivers to make learnings more actionable, understand the strategic role of the 100% naturalness proposition and differentiated pricing strategy

 

Refreshment

The Refreshments team is working on short term wins to find pockets of growth in new channels with quick activation, especially OOH and ecommerce. There is a strong focus on portfolio management and brand communication, with the aim to recover and strengthen the Core and understand and inform the innovation strategy, as well as unlocking opportunities in Kids both for tea and ice cream.

Shopper/CCD

After launching the Worldpanel CD Toolkit, Andy Parkinson & Thomas Spony & Kantar representatives are now partnering with BV Pradeep to release a Kantar CD Toolkit to the CCD CMI Community in August 2017.

Thomas Spony & Stephane Roger have also delivered eCommerce insights (London vs UK) to Keith Higgins (Global VP) and team, with options to investigate cities in China and the USA.

Global Update:

The situation to end of June has been challenging with regard to budgets at P&G for their fiscal year end, despite some good conversations and some interest in our solutions, which we are looking to push for H2.

We have however had some good success in other areas such as thought leadership (we produced a Discounter global perspective, some top line insight summaries within categories), pushing our relationships forward through our Joint Action Plan at local level for European countries, building stronger network and solid presence in Geneva across all the categories.

The new Fiscal Year is starting, the Purchase Plan has been finalised, and we have started receiving POs. The main change has been some reduction in paid for resources, which will challenge and stretch the team more, but also free some time for more revenue push.

We are recruiting in the team if you know people interested in either Servicing or Commercial roles.

 

R&D

R&D side of the P&G business has been a good source of money generation for us, via the Survey programme which Christelle set up, and via generating insight from the purchase link to the survey programme, pushing their usage and awareness of HHP data.

 

Hair Care:

Within Hair care, we are in the process of collecting P&G ROCKS – their objectives for the new fiscal year.

One of their key aims will be to grow in Conditioners. We’ve just delivered a cross-country overview of where the opportunities are, following additional sales at the end of the Fiscal year.

 

SPC:

In the past month we have been discussing Life Moments with the SPC team in Geneva, following successful roll out of the analysis: identifying the key moments when category engagement changes.

We have also been discussing protecting Olay from the major grocers drive to sell cheaper products.

In China and Asia we have wrapped up the last P&G fiscal and started working toward a new year and new objectives, with catch ups booked for the coming weeks to set out the plan for the future.

Within the US, we are working on a couple of Usage proposals around specific demographics, older shoppers for skin care and Millennials for APDO. Although we have not broken the US market yet, we are having more conversations than in previous years.

 

Baby&Fem

We are currently identifying the business priorities on Baby and Femcare for FY1718 with our key contacts and try to intensify the relationships with BFO people in order to tap additional budgets.

In Femcare and especially in AI, POME trackers are in place and need to be expanded in FY1718. An upcoming business review will provide new revenue opportunities (sample effectiveness and TV correlation analysis) in Spain. The team is pushing for proposals, which were postponed to FY1718 and there is good LinkQ opportunity for Tampons in France (lost reasons hierarchy). We have received excellent client feedback for a trade up analysis on Ivory done in China.

The business priorities on Babycare were roughly identified and need to be finalized in the upcoming weeks. POME, purchase behaviour of non-baby households and how to grow the pants business seem to be the most important topics. We are currently working on a proposal for the UK, how the maternity leave impacts the purchase behaviour of mothers and pushing proposals on media, which were declined for budget reasons last fiscal.

 

Fabric & Home:

We have been busy this month with a few exciting projects and associated opportunities.

There are a lot of questions on pack sizes : on both hand dish and fabric care, they wonder how pack sizes impact loyalty and the switches to other brands, and which size will convert buyers. On Autodish the issue with pack size is more to understand to what extend it influences the consumption (expandability).

On air care there are a few projects in UK and FR to understand the category decline (LinkQ react) and go further in the UK to finally run a CDH that we are trying to propose together with a ranging scenario modelling.

The category movements are also a hot topic for HSC in FR (Link React) and in the UK (Category volume change drivers).

 

Grooming & Oral:

On P&G Shave Care our discussions have revolved around two broad subjects: how to drive shopper numbers in a declining category, and how to maximize the value of shoppers through trading them up the product tiers.

On the first topic the Usage team have done some great work on understanding which ‘Life Moments’ drive a change in shaving behaviour thus helping the client to target their activity better. We have also helped them identify key opportunity gaps by demographic, price bracket and channel. Related to this we are working to better understand the POME in both Male & Female shaving to help P&G win with this key group.

On the second topic of premiumisation we have been re-visiting a Brazilian Chains Analysis to help the LATAM team refine their ‘Disposables to Systems’ strategy through profiling the specific moment of change in the purchase behaviour. We are also in ongoing discussions as to how we can utilize the disaggregated panel data to help P&G ensure they convert their Razor shoppers into Blade Refill shoppers. Most recently we have been investigating the decline in Female Shave Care, particularly among younger women as some are apparently simplifying their beauty regimes and shaving less often.

On P&G Oral Care, there has been a lot of focus this year on understanding and reversing the poor performance of Blend-a-med toothpaste in Russia and particularly Germany where the brand was recently re-launched but has so far failed to drive growth. The price positioning of each of their tiers relative to one another and the competition looks to be of crucial importance here alongside potential issues with in-store recognition.

More globally, P&G continues to focus on driving its Power Brush products which they see as having significant headroom in most regions. Understanding the impact of sampling & recommendations remains an ongoing challenge here.


Strategic Accounts

We received positive results in the latest satisfaction survey with satisfaction levels improving vs. last quarter. Spain especially saw a big improvement.

HH Panel+ project is still being worked on. This was the LinkQ/panel recontact project across 7 countries that asked panellists to replay trips to understand path to purchase.

  • Coke have a big focus on showcasing their category management capabilities and the data is being used as part of this e.g. taking groups of FMCG shoppers in that retailer and identifying which occasions/missions they over and underindex on.
  • Coke are also integrating the findings with TNS data from Drinking Moments (aka demand spaces) as both project include occasions.

With CCEP (the bottler) our focus is moving to more strategic analysis.

With TCCC (the company) our focus is improving basic ways of working to prioritise requests better.

There is a new open opportunity across WEBU countries to measure the concern about sweeteners and its impact on soft drinks purchasing.

The global contract has (finally!) been signed and we have been meetings teams at the global level to start building stronger relationship with the client across all segments (consumer beauty, professional and luxury). We are currently supporting teams by delivering training and showcasing the importance of panel data to drive growth.

Although still at early stages, discussions on GCD and global servicing are still on the table.

We have delivered a presentation to support Kiko in their 5-year strategy plan in Austria, France, Germany, Italy, Portugal, Spain and the UK. The board of directors were present and we received fantastic feedback which should lead to further collaboration this year and potentially open  new geographies.

One of their key questions remains on innovation and understanding whether they are currently delivering the right balance of innovation to increase ROI. We are hoping to support them on this point.

We have been working with Diageo closely over the last few years, and our relationship has grown from strength to strength. They have recently commissioned a multi-country project where we will help Diageo unlock growth across the alcohol category, with a specific focus on spirits. Diageo are also keen to understand what opportunities they have across key retailers, channels and core demographic groups.

With a visit planned for early September this year, we will be meeting Pink Lady’s global team and will be presenting the recent findings/developments that we have experienced across the apple market in a handful of European markets. We will also have the opportunity to speak to them about subscription for next year.

We have worked on strategic account plan to 2020. This will be shared with the client in August and will help to deliver our joint goal of increased ROI. This will put us in a good place to retain the client when the current contract expires at the end of 2019.

The client ambition is to take advantage of growing channels, with specific focus on e-commerce. We have created an ad-hoc report for SCA that will provide understanding on which retailers they should focus on and benchmark vs competitors.

The pitch process for the Global contract 2018-2020 is starting in August.  We have had positive feedback on the GCD  which was launched earlier this year and which will give us a competitive strength against the competition

Contract 2018-2020 renewal will start from August. The client has informed us of some budget restrictions and we are currently discussing with the country teams the best offer we can provide. NSC are looking to cut their current contract by about 25%.

The contract is currently under renewal discussion with the client considering a 2+ year deal. The contract covers UK, France, Germany, Spain and Italy.

We recently delivered a report on the discounter channel in Europe together with the shoppers’ loyalty to Lidl and Aldi.  Commissioned by the Shopper and Snacking Insights team (Europe), it was well received, with positive feedback for the Europanel team (Esther Codina and Sophie Abboud).

We are expecting the imminent arrival of a global pitch for the panel business.

Initial introductions sessions based on the Q1 deliveries received very positive feedback from the regional and local teams.  Alice Stagg has done a number of training sessions for the GCD and the data the teams subscribe to, showing strong examples to the client.

Data quality discussions continue (in both Kenya) and we are waiting for further feedback on the repercussions of the closure of the panel in Turkey.

Europanel has started building relationship with Sanofi Global Consumer Health teams based in Paris. Sanofi would like to leverage the Consumer centricity within their organization and we are discussing closely with the Global CMI Team to design a panel service in 7 priority countries, focusing on 5 priority categories: Allergy, Cough & Cold, Digestive, Nutritionals and Pain Care. As part of this project, we are currently working on feasibility & pricing for setting-up an OTC panel in France


Pitches

As a global pitch team our aim is to maximise the total value to the group, and to ensure the client has maximum benefit from our data and services.  Our global pitch team has expertise in negotiations, dealing with procurement, and contract/legal questions.  We have recently made behind-the-scenes improvements in how we run our major pitches which is now resulting in even more impactful, more aligned and more efficient pitches.

Live Pitches

Global pitch underway for a renewal of our global MSA.  Nestle’s current business with us covers 51 countries and over $17m per year, all of which is realised at country level.

Following some recent organisational changes, Nestle global procurement are forcing contracts to be signed at the regional, rather than country level.  This is good news for our partnership as it will allow panel data to invest into the relationship and gain more visibility within their headquarters.

We are currently in discussion to renew their long-term global MSA that will cover all business we have with Nestle in markets.  This will be enforced from Jan 2018 onwards and will guide all renewals across our business for Nestle (also including Cereal Partners, Nespresso).

We are in active discussion with Unilever to renew the existing contract and to ensure it is fit for the next 3-5 years of our strong relationship.

Following several collaborative sessions with our senior clients to re-design the panel service we offer to Unilever, we will be entering into a commercial pricing and negotiation stage which will extend through September and October.

We expect to have the new agreement signed by December.

A Global Pitch for harmonised panel solution is under way.  First stage costs were submitted end of August and we have a pitch presentation in Geneva w/c 11th September.

We are pitching competitively against Nielsen for a 7 country pan European service.  The quality of our offer features strongly on this pitch which is being run in collaboration with our teams in GB and FR.

Discussions have started for a global agreement with J&J.  We are proactively preparing models to help guide our future working relationship and value adding relationship to the J&J business.

Submission of a proposal to renew our 3-country contract for 2018 onwards

We are currently discussing 2 international proposals with ALDI Nord. The first proposal aims at an on-going data cooperation, delivering Shopper Insights for 8 countries. The second proposal is a one-off assessment of Personal Care categories and will help ALDI to understand market dynamics, opportunities and target groups across its markets.


Completed Pitches

3-year, 20-country contract signed thanks to the extensive support and collaboration of the GfK Germany team.  This is Europanel’s first significant contract with a global retailer and is allowing Lidl to maximise its growth across Europe.

3-year, 17-country agreement, marking Friesland Campina’s first truly global agreement and instrumental in realising their global ambitions.  Global minimum client investment target of €2.5m/year stimulates further growth.

Renewal covering 2018-21, across 9 markets.  Revenue for the group is down following Kellogg’s recent poor financial performance and subsequent budget pressures.

2 year contract covering Kenya, Russia, Saudi Arabia, South Africa and Turkey


Expected Pitches


All about Italy

What’s new?

After a long period of crisis beginning in 2008 and reaching its peak in 2013 – 2014 (with decline in FMCG spend for 2 years in a row for the first time ever), Italy is now back to a slow but regular growth that signals of further improvement in the first half of 2017.

Although Consumer Confidence Index and Income expectations for next year remain rather weak, new opportunities seem to be arising.

More educated (individuals with a degree have almost doubled in 15 years) and attentive Shopper s are opening the way to new trends that are radically different compared to past consolidated habits, starting with Foods , also impacting Home and Personal Care.

The FMCG basket of Italians is therefore changing substantially.

Lactose free, Gluten Free, Organic, Soy and Protein alternatives, Ethnic or Regional Foods, Cosmetics with no parabens/ alcohol, Disinfectants with a “professional” image – are all new trends, often associated with a premium price and with strong growth.

Global companies see their sales further at risk, as often they are not present in these segments or have not found a credible way to use their global brands in these emerging categories, with a progressively more threatening competition made of smaller (often local) companies that grow a lot and are more and more listed in major retailers in Modern Trade.

 

Interesting fact!

Fragmentation is still the rule in Italy and generates even more complexity

  • More than 50 Retailers in the marketplace and retailers with highest loyalty reach a maximum 30% Loyalty overall.
  • Aldi entered our market officially two years ago but they have yet to open any stores. Complexity and legislative constraints generate slow time to market.
  • Traditional channels still play a relevant role, but Modern Trade has spread its presence on the national territory:
  • Leader Brands in Italy have lost on average almost 10% buyers over the latest 5 years.

8 out of 10 top brands ranked by Penetration in Italy are Italian brands (some of them are globally distributed) and the first non-Italian brand is #5!

 

Our Panel

Our Panel is made of 10,000 Households, nationally representative and collecting information with a Home Scanning device. Apart from FMCG purchases for domestic consumption, we track OOH Channels for Beverage and Ice Cream and have special tracking for other categories (e.g. Beauty Care, Pharma, Coffee Capsules etc.).

We track media exposure with a passive meter-based method

Our solutions include ABS models on promotion effectiveness, Decision Trees, Attitudinal profiling and Segmentations, Category Management and Media ROI analyses (covering also web)

 

Where we are looking next…

Relying on our solid relationship with the clients, we are more and more developing new solutions on OOH or peculiar categories (Beauty Care, Pharma, Entertainment, Confectionary) with the perspective of having a 360° view on Shoppers and Consumers.