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Evolution Insights Ltd 2010
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Off-the-shelf research
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Bespoke Consulting
Contents
SLIDES INCLUDED IN THIS EXTRACT ARE HIGHLIGHTED IN RED
Key findings and summary
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General dislikes
Dislikes as barriers to increased frequency
Barriers to online grocery shopping
Barriers to online grocery shopping, by retailer used offline
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Contents (2)
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Tesco.com
Shopper share and demographic profiles
Frequency and channel use
Drivers of choice and reasons shoppers like Tesco.com
Dislikes of online food and grocery shopping
Factors likely to make Tesco.com shoppers shop for food and
grocery more frequently online
Tesco.com shopper attitudes
Journey start point and touch points
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Asda.com
Shopper share and demographic profiles
Frequency and channel use
Drivers of choice and reasons shoppers like Asda.com
Dislikes of online food and grocery shopping
Factors likely to make Asda.com shoppers shop grocery more frequently online
Asda.com shopper attitudes
Journey start point and touch points
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Sainsburys.co.uk
Shopper share and demographic profiles
Frequency and channel use
Drivers of choice and reasons shoppers like Sainsburys.co.uk
Dislikes of online food and grocery shopping
Factors likely to make Sainsburys.co.uk shoppers buy grocery more frequently online
Sainsburys.co.uk shopper attitudes
Journey start point and touch points
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Ocado.com
Shopper share and demographic profiles
Drivers of choice
Dislikes of online food and grocery shopping
Journey start point and touch points
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Methodology
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Glossary
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Contents (3)
List of figures and graphs
UK online food and grocery market expenditure estimates (2006-2015f)
Online retailer usage penetration
Drivers and trends in UK online grocery shopping
UK household Internet penetration 2006-2010
Home internet access, by demographic, 2009 and 2010
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Contents (4)
The online grocery shopper journey: examples weekly shop
The online grocery shopper journey: examples weekly shop (2)
The online grocery shopper journey: examples larger stock-up shop
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Factors grocery shoppers say are likely to make them shop online more frequently,
Tesco.com vs average
Shopper perspective on potential shopper marketing initiatives, Tesco.com vs
average
How Tesco.com shoppers typically start their online shop
Touch points typically interacted with by Tesco.com shoppers
Online grocery shoppers use of Asda.com
Proportion of online shoppers who say Asda is the online retailer they use most
regularly, by demographic
How frequently do Asda.com shoppers typically shop online, compared to all online
food and grocery shoppers?
Channel use of Asda.com shoppers
Factors grocery shoppers say are likely to make them shop online more frequently,
Asda.com vs average
Shopper perspective on potential shopper marketing initiatives, Asda.com vs.
average
How Asda.com shoppers typically start their online shop
Touch points typically interacted with by Asda.com shoppers
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Contents (5)
Proportion of online shoppers who say Sainsbury's is the online retailer
they use most regularly, by demographic
How frequently do Sainsburys.co.uk shoppers typically shop online,
compared to all online food and grocery shoppers?
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List of tables
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Penetration of online shoppers who say they each of the following missions is
their most regular, by demographic
The online grocery shopper journey: touch points summary
Shopper perspective on initiatives designed to encourage more frequent online
grocery shopping
Drivers of store choice mentioned by Tesco.com shoppers, versus average
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Proportion of online shoppers who say Ocado.com the online retailer they
use most regularly, by demographic
How Ocado.com shoppers typically start their online shop
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In scope
Evolution defines the online food and grocery shopping channel primarily in
terms of the major e-retailers. There are a variety of different formats to consider:
On the one hand, there are the Big 4 supermarket retailers, three of which already
have an existing online grocery shopping proposition and for which, between
them, account for the lions share of the online grocery market in the UK.
Secondly, there are online only e-retailers such as Ocado and - much more
recently Amazon; who seek to drive market share in online grocery despite the
absence of physical bricks and mortar stores. Ocado in particular enjoys notable
success due to its early entry into the market and reputation for quality and
innovation, and its partnership with Waitrose.
Third, there are major high street retail names such as Boots and Holland & Barrett
who offer online shopping and delivery, albeit for a restricted range of categories
that reflect their core proposition. We also note that while retailers such as Marks
& Spencer and Iceland offer home delivery and online order for collection, they do
not offer a full online grocery proposition at the time of writing.
Finally, there is a wide range of niche e-retailers who specialise in specific themes
such as organic, clearance, and even category specialisms. Examples of these
include Abel & Cole, Goodness Direct and Naked, just to mention a few.
NB. food and grocery includes categories such as drink, personal care and
household cleaning yet excludes those major non food items such as clothing and
electricals that are sold online by some of the major grocery e-retailers.
Out of scope
The online grocery shopper: at a glance online retailer penetration, by offline retailer
Tescos universal proposition, focus on value and leadership in innovation positions it particularly well to attract the loyalty of shoppers who otherwise
shop elsewhere offline. Many consider Tesco ideal for typical online shops, where the focus is often greater on bulkier branded and commodity goods.
In essence, we are able to measure the extent of crosschannel store loyalty among grocery shoppers. Tesco
shoppers are particularly loyal when it comes to
shopping online, while Sainsburys shoppers are much
less so. Notably, Sainsburys loses the majority of those
who go elsewhere online to Tesco.com. Our qualitative
research suggests many shoppers whose nearest
supermarket is Sainsburys consider Tesco of a similar
quality and yet lower price. Others justify the trade
down to Tesco as sensible since they use online
primarily for branded and commodity goods where
price is the most important factor.
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Tesco.com
Sainsburys.co.uk
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Ocado.com
Waitrose.com
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Amazon.co.uk Grocery
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1 1
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Tesco
Asda
Sainsbury's
Morrisons
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Newspapers
Tobacco
Pet care
Baby products
Bathroom toiletries (e.g. soap, toothpaste)
Personal care (e.g. shampoo, deodorant)
Health and beauty (e.g. cosmetics, slimming aids)
Dry goods (e.g. pasta, rice)
Canned goods, sauces and condiments
Frozen food
Household cleaning (e.g. laundry detergent, dishwashing)
Breakfast cereals
Soft or carbonated drinks
Chilled juice
Tea, coffee, drinking chocolate and malted drinks
Alcohol
Biscuits and crackers
Crisps and snacks
Chocolate and sweets
Chilled convenience food (e.g. pizzas, ready meals)
Fresh meat, poultry and fish
Fresh fruit and veg inc. salad
Dairy, milk and eggs
Bakery and bread
Bought more often
when shopping offline
Base = UK adults who say they shop for food & grocery both offline and online at least occasionally, n = 955.
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Tesco.com
Sainsburys.co.uk
Asda.co.uk
Ocado.com*
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Front page
Favourites
Department
navigation
AND
Keyword search
Special offers
Checkout
OR
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Touch point
Common assumptions
This is the best place for your top offers, shoppers expect to
see them at this stage. FMCGs must support with their
strongest promotions of the year.
Page footfall does not necessarily equate to interaction with marketing initiatives
shoppers are very focussed on logging in, booking their delivery slot and starting their shop.
Favourites
The most likely to engage are frequent weekly shoppers who use it primarily as a shortcut
to buy the regular staples. They often move away from the favourites after this, and
complain about the length and lack of personalisation. 1 in 3 dont use favourites at all.
General special
offers pages
Its more about the relevance than the depth of the cut! The majority of shoppers visit very
briefly at the end of their journey to see if they have missed anything. Most give up very
quickly if the offers are not relevant to them. Stock-up shoppers are more likely than others
to use these pages.
Product
information pages
The majority of shoppers who visit product information pages do so just to quickly check if
the product is what they think it is, primarily using the larger picture to assess the product.
Department
navigation
Issues here relate to ability to interrupt, with many shoppers exhibiting incredibly rapid and
focused range editing through use of product pictures, price and retailer offers graphics.
We find department navigation is particularly relevant to Sainsburys and Asda shoppers.
Keyword search
Shoppers often search for specific brands by keyword, or use keyword search as a quicker
way just to find the right department. Those who recalled marketing and offers complained
about low relevance. We suggest there is a significant opportunity to improve here.
Interrupts
(banners)
Awareness in general is very high but recall of specific offers and interaction is very low.
Nevertheless, where relevant we suggest they are particularly effective.
Recipes
The majority of online shoppers are focused and have already planned their shop. Use of
recipes is high but use while actually shopping is very low. Only 5% use this page while
shopping! Opportunities here for greater education and synergy with above the line.
Checkout
Better used as a reminder - have you forgotten ?. Shoppers are focused on reviewing
their basket and entering financial details. Relevance is key. We find impulse purchasing is
very low.
Source: Evolution Insights
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I wouldnt rely on it
completely [my usuals]
though because I might
miss something
[Female, 20-39, C1, Sainsburys]
It [favourites] reminds of
the things I need to break
the back of the shop
Our accompanied shops find that many shoppers use the favourites as a prompt and to
break the back of the shop by following the lists in this order they often carried a written
(paper) list too and used this and keyword search/department navigation for later nonperishable and non-food categories.
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Average
%
46.1
47.2
32.0
34.0
21.5
29.3
9.9
25.0
15.6
23.4
25.0
22.4
17.9
20.2
7.6
16.0
36.9
15.0
19.0
12.3
14.8
10.5
Other
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10.1
I also like the fact when my order arrives with Tesco that
they tell me if they have substituted things or if anything has
a shorter shelf life than they would like and they give me an
option to refuse it. Sainsbury's don't do this and annoyed
me as a result giving me produce close to best before date.
[Female, 30-39, AB, FT, Tesco]
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Methodology
13 detailed accompanied shops including in-depth preand post-shop interview were then carried out to
further explore interesting findings relating to the
quantitative research, and to address in more detail
topics such as journey, interaction with touch points,
interaction with marketing, impulse purchasing, brand
switching, managing budget and price comparison.
Evolutions methodology
Detailed accompanied
shops, including pre- and
post-shop in-depth
interviews
Store audits
Insights
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Age
Number of children in
household
Retailer
Female
40-49
Married
Ocado
Female
50-59
C2
Divorced
Asda
Female
20-29
C1
Single
Tesco
Female
30-39
Divorced
Tesco
Male
30-39
C1
Sainsburys
Male
20-29
Single
Asda
Female
20-29
Married
Tesco
Female
40-49
C1
Married
Ocado
Female
20-29
Asda
Female
30-39
C1
Engaged
Tesco
Female
50-59
C1
Married
Tesco
Female
30-39
C1
Married
Sainsburys
Female
20-29
C1
Married
Sainsburys
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