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Comparing Prices and the use of
Comparison Sites by Grocery
Shoppers in the UK

SAMPLE EXTRACT


                                                    Evolution Insights Ltd
                                                          Prospect House
                                                      32 Sovereign Street
                                                                     Leeds
                                                                   LS1 4BJ
                                                      Tel: 0113 389 1038
                                        http://www.evolution-insights.com
           www.evolution-insights.com                                  1
About Evolution Insights

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke
research for manufacturers, retailers and agencies.


                                                    Our research and analysis helps           Evolution offer a range of products & services for
                                                    clients develop targeted shopper          clients in the field of shopper research:-
                                                    marketing initiatives designed to
                                                                                              •   Off-the-shelf research
                                                    influence shoppers at the point of
                                                    purchase.                                          –     Evolution’s off the shelf research
                                                                                                             publications deliver affordable insight
                                                                                                             into shopper motivation and
                                                                                                             behaviours in UK food, drink and
                                                                                                             grocery

                                                                                              •   Insight Plus

                                                                                                       –     Insight Plus offers your business the
                                                                                                             opportunity to engage in any of our
     We use a range of research                                                                              regular shopper research projects in
                                                                                                             advance of publication, tailoring the
     methodologies to discover genuine                                                                       scope to suit your needs
     insights. Our research incorporates
     a broad spectrum of robust                                                               •   Bespoke Consulting
     qualitative     and     quantitative
     research techniques.                                                                              –     As publishers of research, we are able
                                                                                                             to draw upon a wealth of existing
                                                                                                             proprietary data for consulting projects
                                                    As a leading publisher of shopper                        – helping to better inform and shape
                                                    research, we are ideally placed to                       any further research requirements.
                                                    offer your business actionable
                                                    shopper insight.
                                                                                                  Further information is available at our
                                                                                                  website http://www.evolution-
                                                                                                  insights.com
                                                                                                  Visit and sign up for Reflections, our free
                                                                                                  quarterly newsletter offering analysis and
                                                                                                  commentary on topical issues
                                                          www.evolution-insights.com                                                                 2
Contents
Figures and graphs                                 5 Health & Beauty and Wines                                         43
                                                      Companion feature                                                44
Key findings and executive summary                 8
What this report will do for you                   9 MySupermarket: Perceptions and usage                              45
Gender indices and Likert scales                   13 Introduction                                                     46
                                                      Awareness and usage                                              47
Food and grocery shopping online: Overview         14 Shoppers opinions                                                49
The UK market                                      15 Purchasing behaviour                                             51
Size, growth and forecast                          16 Summary                                                          53
Retailer shares                                    17
The Rise of Generation Y                           18 MySupermarket: Test                                              54
                                                      Introduction                                                     55
Price comparisons                                  19 Outline                                                          56
Introduction                                       20 Differences                                                      57
Income                                             21 Examples of Common Product Issues                                59
Time vs. Savings                                   22 Summary                                                          62
What shoppers compare                              23
When shoppers compare                              26 Supermarkets’ Own Comparison Systems                             63
How shoppers compare                               29 Introduction                                                     64
Summary                                            32 General shopping behaviour in-store                              65
                                                      General shopping behaviour online                                66
MySupermarket: Overview                            33 Price as a driver to supermarket choice                          67
Introduction                                       34 Driver to store choice apart from location                       68
Comparison features                                36 How do shoppers know their supermarket offers cheaper prices?    69
Split Basket                                       37 How do shoppers know their supermarket offers better value for
                                                      money?                                                           70
Brand Stores                                       38 How do shoppers know their supermarket offers better quality
                                                      products?                                                        71
Cashback                                           39 Tesco Price Check                                                72
Recipes                                            40 Asda Price Guarantee                                             73
Multi-media                                        41 Sainsbury’s Brand Match                                          74
Health Checker                                     42 Waitrose’s Brand Price Match                                     75
                                             www.evolution-insights.com                                                3
Contents

Ocado’s Tesco Price Match                                    76
Supermarkets’ Own Systems Summary                            77
Tesco Price Check Usage                                      78
Asda Price Guarantee Usage                                   79
Sainsbury’s Brand Match Usage                                80
Waitrose and Ocado Usage                                     81
Summary                                                      82

Comparison Apps                                              83
Introduction                                                 84
MySupermarket                                                85
RedLaser                                                     86
Supermarket Own Apps                                         87
Penetration of food and grocery apps for smartphone owners   88
Penetration of mySupermarket app for smartphone owners       89
Use of smartphones for general price comparison              90
Use of smartphones for price comparison for food and
grocery                                                      91
Use of internet for price comparison for food and grocery    93
Shopping lists                                               94
Summary                                                      95

Methodology                                                  96

Glossary                                                     100




                                                      www.evolution-insights.com   4
Figures and graphs


www.evolution-insights.com           5
Figures and graphs

Page     Type      Title

16       Graph     UK online food, drink and grocery market expenditure estimates (2006-2015f)
17       Graph     Online retailer usage penetration
18       Graph     UK population age profile, 2011 estimate and 2015 projection
21       Graph     Average UK Household Income Tracker
23       Graph     I compare the prices of each food or grocery item I buy
24       Graph     I only compare the prices of larger value food and grocery items
25       Graph     I compare the total final price of my shop rather than individual items
26       Graph     I compare the cost of my shopping when I shop in-store
27       Graph     I compare the cost of my shopping when I shop online
28       Graph     Demographic split of ‘I compare the cost of my shopping when I shop in-store’
28       Graph     Demographic split of ‘I compare the cost of my shopping when I shop online’
29       Graph     I compare the cost of my shopping without using mySupermarket
30       Graph     I have a general idea how much items should cost, and compare prices against this
31       Graph     I trust price comparison systems to be correct
47       Graph     Awareness and usage of mySupermarket.com
47       Graph     Demographic profile of those who use mySupermarket often
48       Graph     Online site most frequently used
48       Graph     Demographic profile of those who use mySupermarket as their most frequent online site
49/50    Graph     MySupermarket shoppers opinions
51       Graph     Shoppers reasons for not using mySupermarket.co.uk to purchase items
57       Figure    Test – Differences
59       Figure    Test – Examples of Common Product Issues
65       Graph     Retailer share of main shop in the last month
66       Graph     Retailer share of online shop in the last month
67       Figure    Price as a driver to supermarket choice
68       Graph     Driver to store choice apart from location
69       Graph     How do shoppers know their supermarket offers cheaper prices?
70       Graph     How do shoppers know their supermarket offers better value for money?
71       Graph     How do shoppers know their supermarket offers better quality products?
                                               www.evolution-insights.com                                  6
Figures and graphs

77         Figure    Supermarkets’ Own Systems Summary
78         Figure    Tesco Price Check Usage
79         Figure    Asda Price Guarantee Usage
80         Figure    Sainsbury’s Brand Match Usage
81         Figure    Waitrose Brand Price Match Usage
81         Figure    Ocado Tesco Price Match Usage
88         Graph     Penetration of food and grocery apps for smartphone owners
89         Graph     Penetration of mySupermarket app for smartphone owners
90         Figure    Use of smartphones for general price comparison
91         Graph     Compare the price of a product to other supermarkets
92         Figure    Compare the price of a product to other supermarkets while you are actually in the supermarket
93         Graph     Compare the price of a product to other supermarkets at any time using the internet
94         Graph     Smartphone owners awareness of using their phones to scan items to create a shopping list
94         Graph     Demographic split of those who use their smartphone to scan items to create a shopping list




                                                 www.evolution-insights.com                                           7
Key findings and executive summary – What this report will do for you

This report will:

Give you an understanding of what, when and how shoppers
   compare prices whilst shopping for food and groceries.


Provide a overview of mySupermarket’s current proposition,
           including its newest and beta features.

     Consider the usage of mySupermarket, including
 penetration and the attitudes and behaviours of shoppers
               whilst they are using the site.

       Highlight issues found from first hand tests of
                      mySupermarket.

Outline the relationship between price, quality and value for
money. Which of these is the biggest driver for retailers and
             how shoppers know they offer this?

   Give a detailed overview of supermarket’s own price
 comparison systems and how these are used by shoppers.

   Give a summary of price comparison apps available for
    smartphones and the usage of food and grocery apps
                       specifically.
                                                 www.evolution-insights.com   8
Price comparisons – Time vs. Savings



Is the time spent comparing prices worth the potential savings?

  Time               Vs.          Savings
                                                               It is important that the shopper feels that
                                                               the time they invest in comparing prices is
                                                               worth the potential savings that they
                                                               could make. This is especially true for
                                                               online shopping, as shoppers who choose
                                                               this method of shopping primarily do so
                                                               for its convenience. For some shoppers,
                                                               any wasted time spent comparing prices
                                                               negates the benefits of savings made. This
                                                               is especially true for shoppers who, when
                                                               shopping in-store, choose to travel further
                                                               in order to take advantage of the best
                                                               deals for them.

                                                                    I don’t use my nearest supermarket, I go
                                                                      to another one because of their offers

                                       www.evolution-insights.com                                              9
Price comparisons – When shoppers compare


          I compare the cost of my shopping when I shop in-store


         27.0                                                        Agree
                                          40.0
                                                                     Neither agree nor
                                                                     disagree

                                                                     Disagree


                33.0




                                                     Shoppers are far more likely to compare the cost
                                                    of their food and grocery shopping whilst shopping
                                                                                  in-store than online.

n=1007

                                        www.evolution-insights.com                                    10
Price comparisons – Summary

What?
Shoppers are slightly more likely to compare the
cost of individual food and grocery
items, although some shoppers also report
comparing large value items only or the total cost
of a shopping trip. There is no general behaviour
when it comes to what food and grocery prices
shoppers compare.

When?
Price comparisons are, however, most likely to
occur when shopping in-store rather than online.
Online shopping is chosen for its
convenience, and taking time to compare prices
goes against this key driver.

How?
Experienced primary food and grocery shoppers
are most likely to have a general idea of the
average price they expect to pay for items. They
compare prices they are faced with against this
knowledge, rather than actively seeking out
current prices across different retailers, as this is
quicker and easier for shoppers.
                                                www.evolution-insights.com   11
MySupermarket: Overview – Introduction

    Two thirds of shoppers think that online
shopping enables them to maintain control
    of what they put in their basket, helping
 them keep track of what they spend. 60%
 of online shoppers agree that they are less
    likely to make impulse purchases online
   than when in-store. And with nearly half
     (47%) admitting to visiting two or more
 supermarkets a week in their quest for the
     best value, mySupermarket offers both
 value in comparisons and control of online
                         shopping in one go.

                                                                         MySupermarket.co.uk was
                                                                         launched in 2006 allowing shoppers
                                                                         to compare prices across the largest
                                                                         grocery and health and beauty sites
                                                                         in the UK, ensuring that they get the
                                                                         best possible value.
                                                                         Importantly, mySupermarket is
                                                                         completely independent from the
                                                                         retailers featured on the site.

                                            www.evolution-insights.com                                     12
MySupermarket: Perception and usage – Purchasing behaviour (2)

Shoppers reasons for not using mySupermarket.com to purchase items.

                                                      I forget that you
        I always use my own                         can, and sometimes              I don’t think that they
             supermarket                           have problems logging               deliver in my area
                                                              in


        I like a range of own                                                       I’m not sure if I can still
                 brand                                                                get my Loyalty points
       products, particularly
           Marks & Spencer
                                                                                    I find it very difficult to
                                                                                                use
        They do not appear
        to stock all items at                       They don't list prices
       various supermarkets                                                          It does not cover the
                                                    for Morrison's, and I
       on their website. It is                                                       supermarket which I
                                                     would never order
           limited I find.                                                                 use most.
                                                    from Tesco or Asda.

      A lack of understanding of the site appears to be the main barrier to its widespread use. For
    example, shoppers do not know who will deliver their products, or if they can still get their loyalty
   points. mySupermarket would find great benefit in making sure that shoppers are fully aware of their
                          full range of services and the workings of their site.

                                                       www.evolution-insights.com                                 13
Supermarkets’ Comparison Systems – Price as a driver to supermarket choice


Excluding location, price is the biggest driver to supermarket choice. Looking at the breakdown of
shoppers at their preferred supermarket, Asda is clearly ahead when it comes to cheapest prices, in
the minds of their shoppers.
                                                Prices                          Grocer 33
                                                                          average price position
                                               28.9%                              1.2/5

                                               19.2%                              2.5/5

                                               13.5%                              2.8/5

                                                 6.5%                             3.8/5

                                                 3.1%                             4.8/5

Average ranking by price has been calculated across 12 weeks from
The Grocer 33. In comparing these to shoppers opinions it is clear that
                                                                                 Tesco is my nearest
shoppers are aware of the differences in pricing between
                                                                              supermarket but I shop at
supermarkets.
                                                                              Asda because it is cheaper



                                         www.evolution-insights.com                                        14
Supermarkets’ Comparison Systems – Waitrose and Ocado Usage

Waitrose                                                Ocado




 Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match
 systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More
 effective advertising needs to be done to raise awareness and create trust for these systems.
                                                                                              n=1007
                                        www.evolution-insights.com                              15
Comparison Apps – Use of internet for price comparison for food and grocery


Compare the price of a product to other supermarkets at any time using the internet

            108              45.0                                                                       41.1
                             40.0               34.6
    92                       35.0
                                                         27.5                                                    29.1
                             30.0
                             25.0
                        %

                             20.0                                 17.0      15.0                                           17.2
                             15.0                                                                                                   12.6
                             10.0      5.9
                              5.0                                                     0.0
                              0.0
                                    18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and                  AB       C1        C2       DE
                                                                                  over




    Women are more likely than men to compare prices across supermarkets using the internet, as
                                 they are more cost-conscious.

     Younger shoppers and higher social classes are also more likely to use the internet to compare
       supermarket prices, as these shoppers are the most technologically savvy and aware of the
                                        opportunity to do this.

           Those who answer ‘Aware and use occasionally’ or ‘Aware and use often’ to ‘Compare the price of a product to other supermarkets at any
                                                                                                                          time using the internet.’
                                                                                                                                            n=280
                                                                                                                                               16
Methodology


www.evolution-insights.com             17
Methodology

                                                        • Evolution carried out a preliminary survey of
Evolution’s methodology                                   around 100 shoppers to test questions for the
                                                          main survey.

                                                        • Detailed secondary and desk research is
  Secondary and              Preliminary                  conducted to define the topic area, macro drivers
  desk research           quantitative survey             and trends, scope and examples within the
                                                          research topic.

                                                        • Initial insights gained are used to help further
                                                          design the main survey.

                                                        • A main survey is completed by at least 1,000 UK
                                                          adults who are the primary household shopper for
                          Main quantitative               food & grocery.
   Focus groups
                               survey
                                                        • Focus groups are carried out to further enhance
                                                          the secondary research and main quantitative
                                                          survey.

                                                        • Comprehensive and detailed assessment of all the
                                                          data received was then used to uncover insights.

   Insights                                             • Throughout this process, primary research was
                                                          supported by secondary research drawing on
                                                          Evolution’s proprietary databases, national
                                                          statistics, news and industry resources.
                                       www.evolution-insights.com                                       18
Methodology: quantitative research - survey

Topics of questions in quantitative survey
                           Demographic profiling                                    • Detailed shopper insights were
                                                                                      gained from a survey of 1,007
                          Preferred retailer offline                                  primary shoppers. The samples
                                                                                      were fully representative of the UK
                         Drivers of retailer choice                                   population including teenagers
                                                                                      aged 13-17.
       Online retailer usage in terms of frequency and most regular                 • The survey contained 20 questions
                                                                                      relating to topics outlined to the
           Awareness of supermarkets own comparison systems                           left – in addition to standard
                                                                                      demographic profiling questions
   Usage of supermarkets own comparison systems in terms of checking
               receipts, receiving and redeeming vouchers                           • The questions were designed to
                                                                                      give   maximum    insight  into
             Trust of supermarkets own comparison systems.                            shopper’s    motivation    and
                                                                                      behaviour
                 Awareness and usage of mySupermarket                               • Additional questions were asked to
                                                                                      give further insights into general
                   Opinions of mySupermarket shoppers                                 behaviour and attitudes into price
                                                                                      comparisons.
     Usage of food and grocery apps, including price comparison apps                • The survey was carried out during
                                                                                      the week commencing 18th June
          Price comparisons using smartphones and the internet.                       2012.


                                                       www.evolution-insights.com                                     19
Methodology: qualitative research – focus groups




List of focus group participants
Focus Group Participants                                                   • 2 focus groups was conducted
                                   Socio-     Number of children             on the 12th June 2012 with
Gender           Age               economic   in household
                                                                             primary shoppers to gain
Female           20-29             C2         2
                                                                             further insight into comparison
Female           30-39             D          3
                                                                             behaviour.
Female           30-39             C1         2
Female           40-49             D          1                            • The subjects covered were:-
Female           20-29             C2         1
                                                                                – Price comparison usage
                                                                                – Different price
                                                                                  comparison behaviours
Focus Group Participants
                                   Socio-      Number of children
                                                                                – Supermarkets price
Gender            Age              economic    in household                       comparison systems
Female            20-29            AB          0                                – MySupermarket
Female            30-39            AB          0
Female            30-39            C1          0
Male              30-39            AB          0
Female            20-29            C2          0



                                              www.evolution-insights.com                                   20
Contact us


                    Evolution Insights Ltd

                          Prospect House
                        32 Sovereign Street
                               Leeds
                              LS1 4BJ

                    Telephone: 0113 336 6000

             e-mail: insights@evolution-insights.com

             Web: http://www.evolution-insights.com
                          Company No. 07006001
                  Country of Incorporation: United Kingdom




                        © Evolution Insights Ltd. All rights reserved   21

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Comparing Prices and Comparison Sites 2012

  • 1. Comparing Prices and the use of Comparison Sites by Grocery Shoppers in the UK SAMPLE EXTRACT Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com www.evolution-insights.com 1
  • 2. About Evolution Insights Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies. Our research and analysis helps Evolution offer a range of products & services for clients develop targeted shopper clients in the field of shopper research:- marketing initiatives designed to • Off-the-shelf research influence shoppers at the point of purchase. – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our We use a range of research regular shopper research projects in advance of publication, tailoring the methodologies to discover genuine scope to suit your needs insights. Our research incorporates a broad spectrum of robust • Bespoke Consulting qualitative and quantitative research techniques. – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects As a leading publisher of shopper – helping to better inform and shape research, we are ideally placed to any further research requirements. offer your business actionable shopper insight. Further information is available at our website http://www.evolution- insights.com Visit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues www.evolution-insights.com 2
  • 3. Contents Figures and graphs 5 Health & Beauty and Wines 43 Companion feature 44 Key findings and executive summary 8 What this report will do for you 9 MySupermarket: Perceptions and usage 45 Gender indices and Likert scales 13 Introduction 46 Awareness and usage 47 Food and grocery shopping online: Overview 14 Shoppers opinions 49 The UK market 15 Purchasing behaviour 51 Size, growth and forecast 16 Summary 53 Retailer shares 17 The Rise of Generation Y 18 MySupermarket: Test 54 Introduction 55 Price comparisons 19 Outline 56 Introduction 20 Differences 57 Income 21 Examples of Common Product Issues 59 Time vs. Savings 22 Summary 62 What shoppers compare 23 When shoppers compare 26 Supermarkets’ Own Comparison Systems 63 How shoppers compare 29 Introduction 64 Summary 32 General shopping behaviour in-store 65 General shopping behaviour online 66 MySupermarket: Overview 33 Price as a driver to supermarket choice 67 Introduction 34 Driver to store choice apart from location 68 Comparison features 36 How do shoppers know their supermarket offers cheaper prices? 69 Split Basket 37 How do shoppers know their supermarket offers better value for money? 70 Brand Stores 38 How do shoppers know their supermarket offers better quality products? 71 Cashback 39 Tesco Price Check 72 Recipes 40 Asda Price Guarantee 73 Multi-media 41 Sainsbury’s Brand Match 74 Health Checker 42 Waitrose’s Brand Price Match 75 www.evolution-insights.com 3
  • 4. Contents Ocado’s Tesco Price Match 76 Supermarkets’ Own Systems Summary 77 Tesco Price Check Usage 78 Asda Price Guarantee Usage 79 Sainsbury’s Brand Match Usage 80 Waitrose and Ocado Usage 81 Summary 82 Comparison Apps 83 Introduction 84 MySupermarket 85 RedLaser 86 Supermarket Own Apps 87 Penetration of food and grocery apps for smartphone owners 88 Penetration of mySupermarket app for smartphone owners 89 Use of smartphones for general price comparison 90 Use of smartphones for price comparison for food and grocery 91 Use of internet for price comparison for food and grocery 93 Shopping lists 94 Summary 95 Methodology 96 Glossary 100 www.evolution-insights.com 4
  • 6. Figures and graphs Page Type Title 16 Graph UK online food, drink and grocery market expenditure estimates (2006-2015f) 17 Graph Online retailer usage penetration 18 Graph UK population age profile, 2011 estimate and 2015 projection 21 Graph Average UK Household Income Tracker 23 Graph I compare the prices of each food or grocery item I buy 24 Graph I only compare the prices of larger value food and grocery items 25 Graph I compare the total final price of my shop rather than individual items 26 Graph I compare the cost of my shopping when I shop in-store 27 Graph I compare the cost of my shopping when I shop online 28 Graph Demographic split of ‘I compare the cost of my shopping when I shop in-store’ 28 Graph Demographic split of ‘I compare the cost of my shopping when I shop online’ 29 Graph I compare the cost of my shopping without using mySupermarket 30 Graph I have a general idea how much items should cost, and compare prices against this 31 Graph I trust price comparison systems to be correct 47 Graph Awareness and usage of mySupermarket.com 47 Graph Demographic profile of those who use mySupermarket often 48 Graph Online site most frequently used 48 Graph Demographic profile of those who use mySupermarket as their most frequent online site 49/50 Graph MySupermarket shoppers opinions 51 Graph Shoppers reasons for not using mySupermarket.co.uk to purchase items 57 Figure Test – Differences 59 Figure Test – Examples of Common Product Issues 65 Graph Retailer share of main shop in the last month 66 Graph Retailer share of online shop in the last month 67 Figure Price as a driver to supermarket choice 68 Graph Driver to store choice apart from location 69 Graph How do shoppers know their supermarket offers cheaper prices? 70 Graph How do shoppers know their supermarket offers better value for money? 71 Graph How do shoppers know their supermarket offers better quality products? www.evolution-insights.com 6
  • 7. Figures and graphs 77 Figure Supermarkets’ Own Systems Summary 78 Figure Tesco Price Check Usage 79 Figure Asda Price Guarantee Usage 80 Figure Sainsbury’s Brand Match Usage 81 Figure Waitrose Brand Price Match Usage 81 Figure Ocado Tesco Price Match Usage 88 Graph Penetration of food and grocery apps for smartphone owners 89 Graph Penetration of mySupermarket app for smartphone owners 90 Figure Use of smartphones for general price comparison 91 Graph Compare the price of a product to other supermarkets 92 Figure Compare the price of a product to other supermarkets while you are actually in the supermarket 93 Graph Compare the price of a product to other supermarkets at any time using the internet 94 Graph Smartphone owners awareness of using their phones to scan items to create a shopping list 94 Graph Demographic split of those who use their smartphone to scan items to create a shopping list www.evolution-insights.com 7
  • 8. Key findings and executive summary – What this report will do for you This report will: Give you an understanding of what, when and how shoppers compare prices whilst shopping for food and groceries. Provide a overview of mySupermarket’s current proposition, including its newest and beta features. Consider the usage of mySupermarket, including penetration and the attitudes and behaviours of shoppers whilst they are using the site. Highlight issues found from first hand tests of mySupermarket. Outline the relationship between price, quality and value for money. Which of these is the biggest driver for retailers and how shoppers know they offer this? Give a detailed overview of supermarket’s own price comparison systems and how these are used by shoppers. Give a summary of price comparison apps available for smartphones and the usage of food and grocery apps specifically. www.evolution-insights.com 8
  • 9. Price comparisons – Time vs. Savings Is the time spent comparing prices worth the potential savings? Time Vs. Savings It is important that the shopper feels that the time they invest in comparing prices is worth the potential savings that they could make. This is especially true for online shopping, as shoppers who choose this method of shopping primarily do so for its convenience. For some shoppers, any wasted time spent comparing prices negates the benefits of savings made. This is especially true for shoppers who, when shopping in-store, choose to travel further in order to take advantage of the best deals for them. I don’t use my nearest supermarket, I go to another one because of their offers www.evolution-insights.com 9
  • 10. Price comparisons – When shoppers compare I compare the cost of my shopping when I shop in-store 27.0 Agree 40.0 Neither agree nor disagree Disagree 33.0 Shoppers are far more likely to compare the cost of their food and grocery shopping whilst shopping in-store than online. n=1007 www.evolution-insights.com 10
  • 11. Price comparisons – Summary What? Shoppers are slightly more likely to compare the cost of individual food and grocery items, although some shoppers also report comparing large value items only or the total cost of a shopping trip. There is no general behaviour when it comes to what food and grocery prices shoppers compare. When? Price comparisons are, however, most likely to occur when shopping in-store rather than online. Online shopping is chosen for its convenience, and taking time to compare prices goes against this key driver. How? Experienced primary food and grocery shoppers are most likely to have a general idea of the average price they expect to pay for items. They compare prices they are faced with against this knowledge, rather than actively seeking out current prices across different retailers, as this is quicker and easier for shoppers. www.evolution-insights.com 11
  • 12. MySupermarket: Overview – Introduction Two thirds of shoppers think that online shopping enables them to maintain control of what they put in their basket, helping them keep track of what they spend. 60% of online shoppers agree that they are less likely to make impulse purchases online than when in-store. And with nearly half (47%) admitting to visiting two or more supermarkets a week in their quest for the best value, mySupermarket offers both value in comparisons and control of online shopping in one go. MySupermarket.co.uk was launched in 2006 allowing shoppers to compare prices across the largest grocery and health and beauty sites in the UK, ensuring that they get the best possible value. Importantly, mySupermarket is completely independent from the retailers featured on the site. www.evolution-insights.com 12
  • 13. MySupermarket: Perception and usage – Purchasing behaviour (2) Shoppers reasons for not using mySupermarket.com to purchase items. I forget that you I always use my own can, and sometimes I don’t think that they supermarket have problems logging deliver in my area in I like a range of own I’m not sure if I can still brand get my Loyalty points products, particularly Marks & Spencer I find it very difficult to use They do not appear to stock all items at They don't list prices various supermarkets It does not cover the for Morrison's, and I on their website. It is supermarket which I would never order limited I find. use most. from Tesco or Asda. A lack of understanding of the site appears to be the main barrier to its widespread use. For example, shoppers do not know who will deliver their products, or if they can still get their loyalty points. mySupermarket would find great benefit in making sure that shoppers are fully aware of their full range of services and the workings of their site. www.evolution-insights.com 13
  • 14. Supermarkets’ Comparison Systems – Price as a driver to supermarket choice Excluding location, price is the biggest driver to supermarket choice. Looking at the breakdown of shoppers at their preferred supermarket, Asda is clearly ahead when it comes to cheapest prices, in the minds of their shoppers. Prices Grocer 33 average price position 28.9% 1.2/5 19.2% 2.5/5 13.5% 2.8/5 6.5% 3.8/5 3.1% 4.8/5 Average ranking by price has been calculated across 12 weeks from The Grocer 33. In comparing these to shoppers opinions it is clear that Tesco is my nearest shoppers are aware of the differences in pricing between supermarket but I shop at supermarkets. Asda because it is cheaper www.evolution-insights.com 14
  • 15. Supermarkets’ Comparison Systems – Waitrose and Ocado Usage Waitrose Ocado Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More effective advertising needs to be done to raise awareness and create trust for these systems. n=1007 www.evolution-insights.com 15
  • 16. Comparison Apps – Use of internet for price comparison for food and grocery Compare the price of a product to other supermarkets at any time using the internet 108 45.0 41.1 40.0 34.6 92 35.0 27.5 29.1 30.0 25.0 % 20.0 17.0 15.0 17.2 15.0 12.6 10.0 5.9 5.0 0.0 0.0 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 and AB C1 C2 DE over Women are more likely than men to compare prices across supermarkets using the internet, as they are more cost-conscious. Younger shoppers and higher social classes are also more likely to use the internet to compare supermarket prices, as these shoppers are the most technologically savvy and aware of the opportunity to do this. Those who answer ‘Aware and use occasionally’ or ‘Aware and use often’ to ‘Compare the price of a product to other supermarkets at any time using the internet.’ n=280 16
  • 18. Methodology • Evolution carried out a preliminary survey of Evolution’s methodology around 100 shoppers to test questions for the main survey. • Detailed secondary and desk research is Secondary and Preliminary conducted to define the topic area, macro drivers desk research quantitative survey and trends, scope and examples within the research topic. • Initial insights gained are used to help further design the main survey. • A main survey is completed by at least 1,000 UK adults who are the primary household shopper for Main quantitative food & grocery. Focus groups survey • Focus groups are carried out to further enhance the secondary research and main quantitative survey. • Comprehensive and detailed assessment of all the data received was then used to uncover insights. Insights • Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. www.evolution-insights.com 18
  • 19. Methodology: quantitative research - survey Topics of questions in quantitative survey Demographic profiling • Detailed shopper insights were gained from a survey of 1,007 Preferred retailer offline primary shoppers. The samples were fully representative of the UK Drivers of retailer choice population including teenagers aged 13-17. Online retailer usage in terms of frequency and most regular • The survey contained 20 questions relating to topics outlined to the Awareness of supermarkets own comparison systems left – in addition to standard demographic profiling questions Usage of supermarkets own comparison systems in terms of checking receipts, receiving and redeeming vouchers • The questions were designed to give maximum insight into Trust of supermarkets own comparison systems. shopper’s motivation and behaviour Awareness and usage of mySupermarket • Additional questions were asked to give further insights into general Opinions of mySupermarket shoppers behaviour and attitudes into price comparisons. Usage of food and grocery apps, including price comparison apps • The survey was carried out during the week commencing 18th June Price comparisons using smartphones and the internet. 2012. www.evolution-insights.com 19
  • 20. Methodology: qualitative research – focus groups List of focus group participants Focus Group Participants • 2 focus groups was conducted Socio- Number of children on the 12th June 2012 with Gender Age economic in household primary shoppers to gain Female 20-29 C2 2 further insight into comparison Female 30-39 D 3 behaviour. Female 30-39 C1 2 Female 40-49 D 1 • The subjects covered were:- Female 20-29 C2 1 – Price comparison usage – Different price comparison behaviours Focus Group Participants Socio- Number of children – Supermarkets price Gender Age economic in household comparison systems Female 20-29 AB 0 – MySupermarket Female 30-39 AB 0 Female 30-39 C1 0 Male 30-39 AB 0 Female 20-29 C2 0 www.evolution-insights.com 20
  • 21. Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6000 e-mail: insights@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom © Evolution Insights Ltd. All rights reserved 21