Global Powers Of The Consumer Products Industry 2010

Article by Deloitte LLP

The Coca-Cola Retailing Research Council Europe

The Coca-Cola Retailing Research Council Europe (CCRRCE) was formed in 1987.

The CCRRCE is dedicated to the development of a better understanding of the food retailing and allied merchandise distribution business in Europe. The focus of its energies is to identify and then to study selected critical issues and problems and, when appropriate, to publish their findings and present them in a suitable forum, so that full advantage of the information can be taken to further develop and enhance the effectiveness of the food retailing distribution business.

Previous studies published by the Coca-Cola Retailing Research Council Europe

1989 Staffing Supermarkets in the 90's.

1992 Grocery Distribution in the 90's.

1993 Building Customer Loyalty in Grocery Retailing.

1994 Supplier-Retailer Collaboration in Supply Chain Management.

1996 The Future for the Food Store.

1997 Knowing Your Customer.

1998 From Ingredient Shopping to Meal Solutions.

2001 The Store of the Future.

2003 A Leadership People Strategy for Food Retailers. 2005 Responding to Discount "A New Business Model for Food Retailers".

2007 The Inflection Point "Critical Pathways in Food Retailing".

Copies of these studies along with copies of this study, Informing Shoppers: "Relevant and Timely Information to Empower Shopper Choice," and all previous studies conducted by the other Coca-Cola Retailing Research Councils, world wide, may be obtained by visiting the Council website: www.ccrrc.org

The Coca-Cola Retailing Research Council Europe is one of five active Coca-Cola Retailing Research Councils worldwide (Asia, Europe, Latin America, North America and N. America//NACS).

The Coca-Cola Retailing Research Council concept was initiated in 1978 with the creation of the N. American Council. In subsequent years the Retailing Research Council concept was expanded to Europe, Latin America and Asia. These Councils have produced more than 30 studies and reports on issues impacting food retailing; all of these studies were directed by the retailer members of the Councils.

Additionally, in 2008 at a global meeting of the current and past Coca-Cola Retailing Councils, a study on Global Retailing Sustainability was produced ("Sustainability in Retailing: responding to a growing concern for the environment"). This sustainability study has been added to the complete body of work published by the Councils and is available for review and download on the CCRRC website: www.ccrrc.org

The current Coca-Cola Retailing Research Council Europe

The CCRRCE is sponsored and facilitated by The Coca-Cola Company, and is populated with senior executives of food retailing companies. The membership of this Council is as follows:

Preface

Researching the information needs and wants of European food shoppers is timely. Advancing technologies and accelerating lifestyle demands are revolutionising how consumers buy and how products are sold.

The barriers to information about product, price, competition and people are disappearing and informed consumers are claiming a powerful role that is shifting the retail business model.

Shoppers in Europe are economically and ethnically diverse. They live in a range of markets, some developed and some developing, which vary in their levels of consumer sophistication, the state of their organised retail marketplace and their regulatory environment. The extension of European Union (EU) membership to new markets has contributed to this.

Shoppers have a growing desire to know whether products are 'safe' and 'good for them'; now more and more of them also want to know if they are 'good for the planet'.

All of this is against a backdrop of governmental and other third-party interest in regulating labelling and other forms of consumer communication to ensure the integrity of the information provided and to encourage citizens to lead healthier lives.

The grocery industry aims to be transparent in the communication of information to shoppers, partly due to a desire to inform and partly due to such regulation. There are shoppers who are actively looking for information, yet there are many who are not engaged and require very little information. The challenge, as is clear from this research, is to understand and meet the information needs of those individuals who have specific requirements while maintaining an easy and quick shopping experience for all.

About this report

The CCRRCE commissioned Deloitte to carry out a study into the information needs of European grocery shoppers. The research involved interviews with leading retailers, manufacturers and other industry stakeholders across Europe, as well as primary consumer/shopper research in six countries representing a spread of developed and developing markets, and embracing the largest markets in Europe. This report summarises the conclusions of the study and sets out recommendations to help retailers and manufacturers understand and respond to evolving shopper information needs outside the store and at the point of sale.

Methodology

The overall objective of the study was to identify the information needs and wants of European food shoppers. The research also aimed to identify the best methods for communicating with shoppers regarding their information needs and desires.

The study has involved three work streams designed to generate the depth and breadth of insight required to inform strategies to empower shopper choice.

1. Primary industry research

   This involved 65 qualitative interviews with senior individuals across the industry in Europe. They included retailers, manufacturers and other industry stakeholders such as regulatory bodies and technology providers to develop a thorough and balanced view of the industry opinions surrounding this subject.

2. Primary consumer and shopper research

   The consumer and shopper research was carried out with the help of TNS, experts in shopper research and insight.

   Qualitative research

   The qualitative research involved 24 accompanied shopping trips – 'Shopper Journey Reflections' – of which 12 were in a representative developed market (United Kingdom) and 12 were in a representative developing market (Romania). Each trip lasted three hours and consisted of an in-home interview before the store visit to understand influences and information sources used by the individual before shopping. This was followed by an accompanied store visit and a subsequent interview to review and discuss the in-store observations.

   Quantitative research

   This phase of research involved over 6,300 individual surveys, comprising online...