Imperial Tobacco The Imperialist 1 Engl | Page 6

#Workshop WORKSHOP: SHOPPER BEHAVIOR PRINCIPLES I n spring our colleagues from Global headquarters visited the central office in Moscow where they facil- itated a workshop on Shopper Behavior Principles. The team from the Shopper and Trade Research team from the Strategy & Insight department conducted a workshop with Sales and Marketing Operations (SMO), Insight & Intelligence department (I&I) and Sales (Mar- ket) of the Central Moscow Office, where they presented the results of the Eyes Wide Shut project – merchandis- ing and brand activation principles for Imperial Tobacco and our main competitors. The Eyes Wide Shut program was launched in FY16 and five markets (Poland, Russia, Ger- many, Italy and UK) are involved with various regulatory restrictions (EUTPD II, display ban, plain packaging). For each research project the team collaborates with the creative agency Proximity, the Activation Centre of Excellence and the local cluster market teams to develop new POS mate- rials and test them in retail outlets using eye-tracking and exit interview methodology. Jamie Rayner, Senior Manager for Shopper and Trade Research: “We have to take into account the unavoidable regulation which is in existence to a greater or lesser extent in absolutely all of our markets, and we have structured the program so as to study and later compare research results in markets with different product placement and health warning requirements.” Ben Manzi, Senior Manager for Activa- tion Centre of Excellence: “We categorized RUSSIAN SHOPPERS SPEND VERY LITTLE TIME ON PURCHASING CIGARETTES AND ARE AMONG THE MOST LOYAL SHOPPERS IN THE WORLD markets by product placement and health warning requirements. After that we developed five main reg- ulatory archetypes in order to systematize research re- sults and develop ways to improve our merchandising, activation and ultimately the sales of the Imperial Tobacco cigarettes in all countries where our company operates.” Russia was selected to participate in the proj- ect as an example of a market where a display ban is in effect. However, the area for health warnings is less than 50% and on one side of the pack. The research was carried out in December 2016 and looked at the position of our products on shelves versus our competitors' positions, whether the type of equipment used was open or closed (some tobacco- nists still leave retail outlets equipment open), as well as the use of a disruptive display (illuminated or non-il- luminated). Helen Garforth, Shopper Research Manager: “Our task is to identify what preferences our shoppers have, how their behavior changes depending on the particular environment (reg- ulatory conditions) in which we work, as well as how we can use that knowledge in order to enhance brand activation and increase our market share.” The research was conducted in Nizhny Novgorod in eight outlets with different product placement (top shelf and eyelevel) and with various types of disruptive dis- plays (illuminated and non-illuminated) in different types of equipment (Norma and Premium). More than 1,000 shoppers took part in the research with exit interviews, as well as 160 shoppers for the eye-tracking part. A key objective of the research was to study a range of factors influencing shopper choice: e.g. efficiency of POS equipment and its usage, as well as the time spent by a shopper on visiting a POS and making their choice. The survey method involved work with both salespersons and shoppers – therefore, it can be divided into two blocks. Shopper behavior research “We used eye-tracking technology: special glasses were put on a shopper – they recorded where a shopper's gaze rests and how long they spend looking at a certain item or a particular section of the POS equipment. Eye movements are subconscious; therefore, we can confidently say that The Империалист |  | 6