1. “ Improving the portfolio to gain
in the market”
Fernanda Accorsi
Retail Expert
FA Retail - www.fernandaaccorsi.com
Neighborhood stores:
space

2. Neighborhood stores:
©FA Retail - Content & Solutions/2015

3. ©FA Retail - Content & Solutions/2015
WHY THE NEIGHBORHOOD STORES ?

4. They are 50 - 60%* of the market for the 2 main
categories: Toilet Paper and Kitchen Towel.
1-4 cks:
5-9 cks:
Traditional:
* Source: Share Volume / Nielsen Retail Index - 2013
(Grocery)
21% 20%
10% 6%
28% 21%

5. • the market penetration (for
categories that can still be
developed)
• the offer/ demand for
premium versions - add
SKUs with higher value
©FA Retail - Content & Solutions/2015
Good opportunity to increase:

6. WHAT
CHANGED
CONSUMPTION
PATTERNS
©FA Retail - Content & Solutions/2015

7. ©FA Retail - Content & Solutions/2015
Location
73% want to save time
during the purchase:
FAST
SIMPLE
ENJOYABLE
* Source: Kantar World Panel - 2015

8. ©FA Retail - Content & Solutions/2015
Convenience
It is not based on size
anymore, but on the need.

9. ©FA Retail - Content & Solutions/2015
The BIG
want to be
small
The dispute for the Neighborhood
location & convenience

10. ©FA Retail - Content & Solutions/2015
Technology
Many stores are already
automated and also
prepared with modern
systems and softwares:
Supply Chain
Store Management
Shopper Data

11. Atention
52% expect better
service and complain for
not receiving help from
the staff.
* Source: Kantar World Panel - 2015
©FA Retail - Content & Solutions/2015

12. The SPACE is
reducing
The
PORTFOLIO
is
increasing
Dynamic
MSP

13. ©FA Retail - Content & Solutions/2015
SHOPPER
BEHAVIOR

14. Understanding the Shopper
- Throughout the generations -
X
GENERATION
BABY
BOOMERS
Y
GENERATION
Z
GENERATION
1960’s – 1980’s 1980’s – 2000’s 2000’s - Now1940’s – 1960’s
©FA Retail - Content & Solutions/2015

15. BB X
ZY
BABY BOOMERS X GENERATION
Y GENERATION Z GENERATION
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household income
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption BB
BABY BOOMERS

16. BB X
ZY
BABY BOOMERS X GENERATION
Y GENERATION Z GENERATION
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household income
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household incomeX
X GENERATION

17. BB X
ZY
BABY BOOMERS X GENERATION
Y GENERATION Z GENERATION
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household income
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing
Y
Y GENERATION
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later

18. BB X
ZY
BABY BOOMERS X GENERATION
Y GENERATION Z GENERATION
• Loyal shoppers & consumer
• Resistant to change + quality oriented
• New social media members
• Downsizing house
consumption
• Brand loyalty once they trust
• Consume several media channels
• Seek product information
(specially online) – 1st gen online
• Less money individually
Higher household income
• No brand loyalty – TRY IT!
• Aspirational, intuitive
performance, customized products
• Omnipresent connectivity – reviews
• Rooming with parents until later
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing
Z
Z GENERATION
• Reality x Perfect life
• Products: more important
than brands (customer service)
• Digital Natives (overconnected)
• Research before purchasing

19. BB X
ZY
They are all purchansing together.

20. new Purchase Experience
client’s revolutionThe:
Marketing 1.0 / 2.0
Marketing 3.0
Engagement!

21. REVIEWING THE
PORTFOLIO
©FA Retail - Content & Solutions/2015

22. ©FA Retail - Content & Solutions/2015
Let’s think about how many active SKU’s
we have in our PORTFOLIO.
Are we negotiating them on the right
channels?

23. ©FA Retail - Content & Solutions/2015
If Small stores
want to offer the
same SKUs that
the BIGones…

24. ©FA Retail - Content & Solutions/2015
…Reduce your mix, improve the shopping experience.
Help the shopper to find what they are looking for.
Reduce the ‘out of stock’ of
popular products

25. ©FA Retail - Content & Solutions/2015
Don’t wait for the client to
reduce the range.
Focus on the Corebusiness.

26. Develop the market choosing
more profitable SKUs :
1
2
3
PLY
50
75
100
COUNT
? ?

27. Develop the market choosing
more sustainable options :

28. ©FA Retail - Content & Solutions/2015
Advantage of small retail:
Private labels are not present in
all of them.
Less can be better.
Make your portfolio
Stronger.

29. Challenge
Stop wasting:
- Costs
- Time
- Efforts
…and paper!

30. Fernanda Accorsi
Retail Expert
FA Retail - www.fernandaaccorsi.com
Thank you!