Culling from a rich pool of proprietary research, Tyson Foods Inc.’s Eric LeBlanc illustrates the importance of connecting with consumers before they enter the grocery store – and while they’re deciding what to have for dinner. As important as the pre-shop connecting is, however, it’s execution in the store that determines success or failure. LeBlanc reveals the real cost of failing to address three key grocerant elements: product issues, staffing issues, and general issues, such as cleanliness, wait or product readiness.
3. A light-hearted romp through
our worst fears and nightmares
• Why it’s critical to get things right: surely this
is obvious, right? Right?
• Don’t try this at home—though the data
suggests you already may
• The morning after—I’m never doing THAT
again!
5. Dinner without a plan
70% of shoppers
decide TODAY what’s
for dinner TONIGHT
27% only decide what’s
for dinner when
hungry or prompted
The decision to purchase PF is typically made
before the shopper enters the store (67%)
Source: Tyson On the Go Foodservice Study, 2014
6. The battle is won or lost before the
consumer ever crosses the threshold
• Supermarket Prepared Foods is NOT top of
mind in the 4:00 dilemma
• It ranks third in the consideration set, behind
QSR and pizza
• In most cases, Supermarket Prepared Foods is
not driving awareness outside of the store
• And…
Source: Tyson On the Go Foodservice Study, 2014
7. The battle is won or lost before the
consumer ever crosses the threshold
The single biggest
driver to future
visitation is
satisfaction with
the previous
experience
How should we feel
about that?
Source: Tyson On the Go Foodservice Study, 2014
8. What failure looks like:
• 41% of shoppers report
a problem in their
prepared foods
shopping experience in
the past 90 days
• Of these, 53% will stop
shopping the retailers
for a period of time
Source: Consequence of Failure Study, 2015
9. Incidence of Problems
General Deli Issues 42.9%
Product Issues 46.7%
Staffing Issues 22.2%
• General Deli Issues: long wait
time, products weren’t ready,
products weren’t available or
were difficult to find, deli wasn’t
sanitary
• Product Issues: product didn’t
appear fresh, wasn’t tasty, wasn’t
of good quality, was
overcooked/dry, was
undercooked
• Staffing Issues: staff wasn’t
knowledgeable, helpful, or
friendly; staff was rude
Source: Consequence of Failure Study, 2015
10. Impact of a problem on satisfaction:
55.3%
82.4%
47.9%
65.1%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Prepared Foods Shopping Experience
Overall shopping experience
% of Shoppers Reporting (Top three box)
Problem No problem
10
Source: Tyson Consequence of Failure Study, 2015
Satisfaction with the prepared foods shopping experience AMONG DELI PREPARED
FOODS SHOPPERS lags their satisfaction with the whole store shopping experience!
11. Impact of a problem on
likely to recommend:
80.9%
77.4%
56.6%
50.6%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Likely to shop
Likely to recommend
% of Shoppers Reporting (Top three box)
Problem No problem
11
Source: Tyson Consequence of Failure Study, 2015
Given that the consumer has so many choices for convenience meals, retailers
cannot afford this negative impact on the pre-shop decision-making process
12. How satisfied are you with:
32.2%
43.8%
46.6%
57.4%
22.2%
34.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Prepared Foods Shopping Experience
Overall shopping experience
% of Shoppers Reporting (Top two box)
Worst Best Industry
12
Source: Tyson Consequence of Failure Study, 2015
14. Drivers of purchase intent:
Problem vs no problem
78.9%
50.7%
75.0%
61.6%
70.2%
66.4%
58.9%
37.2%
45.6%
43.7%
45.0%
41.4%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
% of Shoppers Reporting (Top three box)
Problem No problem
14
#1 driver of
purchase intent
Source: Tyson Consequence of Failure Study, 2015
Deli prepared foods shoppers who have experienced a problem show drastic
reductions on all drivers of purchase intent: This reduction is a strong negative
impact on pre-shop attitudes and behaviors
15. Drivers of purchase intent:
By type of problem
78.9%
50.7%
75.0%
61.6%
70.2%
66.4%
53.7%
41.3%
42.6%
41.7%
42.3%
40.2%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
% of Shoppers Reporting (Top three box)
General Deli Product Staffing No problem
15
#1 driver of
purchase intent
Source: Tyson Consequence of Failure Study, 2015
While generally speaking, all types of problem negatively impact purchase intent,
the most pronounced effect is a result of product problems; deli shoppers appear to
be somewhat more tolerant of “general deli issues”
17. Change in store visitation
as a result of staffing issues
6.8%
9.4%
38.5%
3.6%
2.2%
14.3%
14.3%
28.0%
69.2%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Permanently
For a long period of time
For a short period of time
% of Shoppers Reporting
Worst Best Industry
17
Source: Tyson Consequence of Failure Study, 2015
19. Product Issues
7.4%
7.5%
10.5%
12.4%
12.6%
2.6%
2.9%
5.3%
4.9%
4.9%
14.9%
16.3%
18.4%
20.3%
21.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Product quality was poor
Product taste was poor
Breading was not crispy
Product was overcooked
Product did not appear fresh
% of Shoppers Reporting
Worst Best Industry
19
Source: Tyson Consequence of Failure Study, 2015
Cook to proper temperature and
follow holding procedures to
eliminate major product issues
20. Considering product issues,
how likely are you to:
45.2%
40.0%
61.9%
68.4%
26.2%
22.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Visit
Recommend
% of Shoppers Reporting (Top three box)
Worst Best Industry
20
No product issue : 48.5%
No product issue : 51.6%
Source: Tyson Consequence of Failure Study, 2015
As with staffing issues, the greater negative impact is on likelihood to recommend
22. Change in store visitation
as a result of product issues
3.5%
6.9%
25.5%
1.6%
2.3%
6.1%
5.7%
19.7%
35.1%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Permanently
For a long period of time
For a short period of time
% of Shoppers Reporting
Worst Best Industry
22
Source: Tyson Consequence of Failure Study, 2015
24. Considering general deli issues,
how likely are you to:
51.1%
47.1%
78.8%
75.8%
36.2%
29.8%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
Visit
Recommend
% of Shoppers Reporting (Top three box)
Worst Best Industry
24
Source: Tyson Consequence of Failure Study, 2015
The shopper appears to be somewhat more forgiving of general deli issues, suggesting issues like
long lines are an un pleasant though expected feature of the shopping experience
25. Considering general deli issues…
50.8%
37.4%
43.8%
41.4%
44.2%
40.4%
63.6%
55.6%
57.6%
58.1%
62.9%
56.5%
33.3%
28.3%
23.6%
35.8%
32.1%
28.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Like the convenience
Frequently purchase
I like the quality
Likely to purchase next time
My friends and family enjoy
I am proud to serve
% of Shoppers Reporting (Top three box)
Worst Best Industry
25
#1 driver of
purchase intent
Source: Tyson Consequence of Failure Study, 2015
26. Change in store visitation
as a result of general deli issues
3.3%
4.4%
22.4%
1.6%
3.8%
8.5%
4.4%
8.1%
42.9%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Permanently
For a long period of time
For a short period of time
% of Shoppers Reporting
Worst Best Industry
26
Source: Tyson Consequence of Failure Study, 2015
27. Conclusions
• The battle for the prepared foods visit is won
or lost OUTSIDE of the store
• Problems happen FAR too frequently and the
consequences can be severe far beyond the
prepared foods area of the store
• The ability to execute may be the single most
greatest competitive point of difference
28. Implications
• Drive awareness
– Elevate your place in the 4:00 consideration set
• Train store associates for:
– Product knowledge
– Customer service principles
• Control product
– Availability
– Cooking time/hold time
The decrease in satisfaction between those who have had a problem and those who have not is obvious. Also obvious is that the satisfaction with the prepared foods shopping experience AMONG DELI PREPARED FOODS SHOPPERS lags their satisfaction with the whole store shopping experience!
Total Kroger staffing issues =20% of Kroger respondents. With 49% reporting staff not friendly and 20% staff was rude, that means of all Kroger shoppers, 13.8% have experienced staff not friendly/rude in the past three months!
