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Evolution Insights: Shopper Insight Series

Online Food & Grocery:


The Shopper Perspective
Essential insight into shopper motivation and
behaviour in UK food and grocery online
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

Disclaimer

Please note
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic,
mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd.
The content of this report is based on information gathered in good faith from both primary and secondary sources and is
believed to be correct at the time of publication. Evolution Insights can however provide no guarantee regarding the accuracy
of this content and therefore accepts no liability whatsoever for any actions taken that subsequently prove incorrect.
Evolution Insights Ltd 2010

www.evolution-insights.com

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 clients


develop targeted shopper marketing
initiatives designed to influence
shoppers at the point of purchase.

Evolution offer a range of products & services for


clients in the field of shopper research:-

Off-the-shelf research

Insight Plus

We use a range of research


methodologies to discover genuine
insights. Our research incorporates a
broad spectrum of robust qualitative
and quantitative research techniques.

Insight Plus offers your business the


opportunity to engage in any of our regular
shopper research projects in advance of
publication, tailoring the scope to suit your
needs

Bespoke Consulting

As a leading publisher of shopper


research, we are ideally placed to
offer your business actionable
shopper insight.

Evolutions off the shelf research


publications deliver affordable insight into
shopper motivation and behaviours in UK
food, drink and grocery

As publishers of research, we are able to


draw upon a wealth of existing proprietary
data for consulting projects helping to
better inform and shape any further
research requirements.

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

Contents
SLIDES INCLUDED IN THIS EXTRACT ARE HIGHLIGHTED IN RED
Key findings and summary

Online grocery shopping: definition

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Online grocery shopping: the market


The market size, growth and forecast to 2015
The market retailer shares

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Online grocery shopping drivers and trends


Overview of drivers and trends
Growth in UK internet use
Future trends personalisation
Future trends inspirations and ideas
Future trends rise of generation Y
Future trends digital media and smartphones
Future trends mobile commerce
Future trends rise of social media
Future trends multi-media

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The online grocery shopper: at a glance


Shopper penetration and frequency
Demographic profile and penetration
Penetration and frequency, by retailer used offline
Penetration and frequency, by retailer used online
Online retailer penetration, by retailer used offline
Frequency (detailed)
Frequency (detailed), by retailer used online
Expenditure, by average frequency
Expenditure, online versus offline
Drivers of online grocery shopping
Drivers of store choice
Drivers of store choice, by retailer
Category performance

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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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The online grocery shopper context


A framework
Circumstances (location and time of shop)
Approach to online grocery shopping
Extent of planning and shopper modality
Shopper missions
Shopper missions, by demographic
Shopper missions, by average spend
Shopper missions, by frequency

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The online grocery shopper journey


Journey definition
Journey starting point
Journey starting point, by retailer
Journey starting point, by mission
Touch points
Touch points, by retailer
Touch points, by mission
Shopper journey: examples

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The online grocery shopper journey: touch points


Touch points - summary
Front page and login
Favourites
General special offers pages
Product information
Department navigation
Interrupts
Recipes

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www.evolution-insights.com

Contents (2)

Payment and checkout

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The online grocery shopper: key behavioural themes


Managing budget
Impulse purchasing
Price comparison
Brand loyalty and switching
Range editing
Multi-buys and pack sizes

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Shoppers ideas for improvement


Overview
More flexible/improved delivery
Ability to specify further detail for pickers/drivers
Better search, sort and product display
Search, sort and product display: special offers
Improved product information
Appeal of shopper marketing initiatives

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Online grocery shopping: retailer profiles

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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

145

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www.evolution-insights.com

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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UK adults using the Internet every day, 2006 - 2010


UK population age profile, 2010 estimate and 2015 projection
Number of smartphone users and penetration of smartphones in the UK,
2008 Q1 to 2010 Q2
Penetration of UK adults who say they regularly shop for grocery and own a
smartphone, by demographic
Penetration of online grocery shopping
Penetration of online grocery shopping, by frequency
Demographic profile of online food & grocery shoppers
Penetration of online food & grocery shoppers, by demographic
Penetration of online grocery shopping, by offline retailer
Penetration of online grocery shopping, by offline retailer and frequency
Penetration of online grocery shopping, by online retailer and frequency

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Drivers of store choice


Drivers of store choice by retailer, versus average.
Relative frequency of category purchasing when shopping offline versus online
Dislikes of online grocery shopping among online grocery shoppers
Shopper appeal of initiatives designed to increase frequency of online grocery
shopping
Barriers to online food and grocery shopping
Barriers to online grocery shopping by shoppers offline retailer
Factors influencing the online grocery shoppers context

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Location and time where shoppers do their online grocery shopping

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Online grocery retailer used by multi-channel shoppers, by offline retailer


Frequency of online grocery shopping
Frequency of online grocery shopping, by online retailer
Average spend of online grocery shopper, by typical frequency
Typical spend online versus offline
Reasons for online grocery shopping
Drivers of store choice
Drivers of store choice by retailer, versus average.
Relative frequency of category purchasing when shopping offline vs online
Dislikes of online grocery shopping among online grocery shoppers

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Shoppers approach to conducting online grocery shopping


Online grocery shopping modalities
Shopper perspective on planning lists and meals in advance
How do the four different categories of shopper missions translate online?
Penetration of missions by frequency
Penetration of missions by frequency (most regular only)
Penetration of online shoppers who say they each of the following missions is
their most regular, by demographic
Missions by retailer
Average spend by most regular online shopping mission
Frequency of online grocery shopping by mission
Factors influencing the online grocery shoppers journey
Online grocery shopper journey starting point
Online grocery shopping journey starting point, by retailer
Online grocery shopping journey starting point, by mission
Online grocery shopping journey touch points
Online grocery shopping journey touch points, by retailer
Online grocery shopping journey touch points, by mission

www.evolution-insights.com

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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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Penetration of favourites, by retailer

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Shopper appeal of favourites list related initiatives

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Example of a typical weekly online shopper journey by touch point


interaction
Penetration of favourites, by mission

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Penetration of general special offers pages, by retailer


Shopper appeal of general special offers page
Shopper appeal of special offers related initiatives
Shopper appeal of product information related initiatives

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Penetration of recipe pages while shopping, by retailer

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Shopper perspective on overall spend online versus in supermarket


Shopper perspective on impulse spend online versus in supermarket

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98

Shopper perspective on pack sizes and bulky items online versus in


supermarket

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Percentage of online grocery shoppers who say an improvement in the


freshness and quality of products delivered by being able to specify the
best before date is likely to make them shop online more frequently, by
retailer
Percentage of online grocery shoppers who say Improvements to how
easy the website is to use and find what you want is likely to make them
shop online more frequently, by retailer

Shopper perspective on a variety of potential shopper marketing initiatives online


Online grocery shoppers use of Tesco.com
Proportion of online shoppers who say Tesco is the online retailer they use most
regularly, by demographic
How frequently do Tesco.com shoppers typically shop online, compared to all
online food and grocery shoppers?
Channel use of Tesco.com shoppers

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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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Online grocery shoppers use of Sainsburys.co.uk

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www.evolution-insights.com

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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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Drivers of store choice by retailer, versus average

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Channel use of Sainsburys.co.uk shoppers


Factors grocery shoppers say are likely to make them shop online more
frequently, Sainsburys.co.uk vs average
Shopper perspective on potential shopper marketing initiatives,
Sainsburys.co.uk vs. average
How Sainsburys.co.uk shoppers typically start their online shop

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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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Touch points typically interacted with by Sainsburys.co.uk shoppers


Online grocery shoppers use of Ocado.com

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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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Dislikes of online food and grocery shopping mentioned by Tesco.com shoppers,


versus average
Drivers of store choice mentioned by Asda.com shoppers, versus average
Dislikes of online food and grocery shopping mentioned by Asda.com shoppers,
versus average
Drivers of store choice mentioned by Sainsburys.co.uk shoppers, versus average

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Touch points typically interacted with by Ocado.com shoppers


Evolutions methodology

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Topics of questions in quantitative survey


List of accompanied shop participants

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Dislikes of online food and grocery shopping mentioned by Sainsburys.co.uk


shoppers, versus average
Drivers of store choice mentioned by Ocado.com shoppers, versus average
Dislikes of online food and grocery shopping mentioned by Ocado.com shoppers,
versus average
List of accompanied shop participants

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www.evolution-insights.com

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Online food and grocery shopping: definition


Online food and grocery is a broad field in the UK, comprising some of the largest supermarket retailers alongside e-commerce specialists and even
category specific e-retailers.

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

Evolution defines the online grocery shopping channel in relation to


e-retailer formats considered and relative market share.
Major non food categories such as clothing and electricals, in
addition to niche e-retailers specialising in certain themes or
categories, fall out of the scope of this report.
www.evolution-insights.com

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.

Online grocery retailer used by multi-channel shoppers, by offline retailer

Here we consider online retailer penetration by offline


retailer. In other words, we look at multi-channel
shoppers who use both online and offline, and
compare where they shop online to where they shop
offline.

For example, an overwhelming 86% of Tesco shoppers


who also shop online at least occasionally, use
Tesco.com. In contrast, only 52% of Sainsburys
shoppers who also shop online use Sainsburys.co.uk.

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.

100
90

86

80

73

70

Tesco.com
Sainsburys.co.uk

60

53

52

Asda.co.uk

50

Ocado.com
Waitrose.com

40

Amazon.co.uk Grocery

28

30

Another online retailer

21
20
10

16
9
3 5 3 2
1 1

0 0 1

7
1 1 2

6 6

5
0

0
Tesco

Asda

Sainsbury's

Morrisons

Source: Evolution Insights

Perhaps of most interest is the destination of Morrisons shoppers who also


shop online. At the time of writing Morrisons are yet to launch their online
offering, and over half (53%) of those who do shop online are using Tesco.com
instead. We suggest that Morrisons may struggle at launch to regain the loyalty
of its shoppers whom have already established comfort and routine with a
different online retailer.

www.evolution-insights.com

Tesco.com has been particularly successful at


not only driving high levels of store loyalty
among Tesco shoppers, but attracting
significant proportions of other Big 4
shoppers through its universal appeal and
leadership in online grocery.
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The online grocery shopper: at a glance category selection


Household cleaning, dry and canned goods over index online, while fresh foods over-index offline. While this largely reflects the difference in underlying
mission mix between the two channels, we note that sin categories under-index online despite their non perishable and sometimes bulky nature.
Relative frequency of category purchasing when shopping offline versus online

Here we consider how frequently shoppers purchase


each category online versus offline. Shoppers were
asked to rate how frequently they buy each category
when shopping online, and then how frequently when
shopping offline. The graph highlights the relative
difference in average score achieved by each category.

For example, household cleaning products are bought


more frequently when shopping online than when
shopping offline, while dairy and bakery are bought
more frequently when shopping offline.

The graph highlights the effect of underlying


differences in mission and frequency between online
and offline shopping trips. For example, multi-channel
shoppers who shop online occasionally to stock-up (the
most common online mission) are more likely to
purchase laundry detergent on these missions, due to
its long lasting, non perishable and bulky nature.

It is interesting to note however that alcohol, crisps


and confectionery under-index online despite sharing
some similar attributes.

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

Bought same frequency whether


shopping online or offline

Base = UK adults who say they shop for food & grocery both offline and online at least occasionally, n = 955.

Bought more often


when shopping online
Source: Evolution Insights

www.evolution-insights.com

Our research suggests that many shoppers


are less likely to purchase sin categories
online, despite their non perishable and
sometimes bulky nature. Shoppers find it
easier to see and control their spend online,
often sacrificing big ticket luxuries like alcohol
as a result.
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The online grocery shopper journey: touch points, by retailer


Here we consider how the different touch points of an online grocery shoppers journey varies by retailer. While differences are relatively small, there are
nevertheless some interesting variances to consider.
Online grocery shopping journey touch points, by retailer (excluding booking of delivery slot)

Special offers in particular are the forte of both Tesco


and Ocado and less so with Asda. We also note the
particularly high penetration of personalised special
offers for Ocado, reflecting their leadership in this
space. Ocado also boast the greatest engagement in
recipes and suggestions in part due to the
demographic of its shoppers but also in part due to its
focus on features, functionality and innovation.

As expected, Sainsburys also sees a higher level of


engagement in recipes although perhaps not as high as
might be expected considering its shopper
demographic and celebrity endorsement. Furthermore
it sees the lowest engagement in favourites and
highest penetration in keyword search (and indeed
shoppers who use none of these features). This
supports the findings from our accompanied shops
where, many prefer to use simple department
navigation as the main touch-point during their
journey.

Interestingly, Asda falls short of the rest when it comes


to personalised offers, something reinforced by our
accompanied shops where many complained about
the lack of relevance of multi-buy deals in particular.
Asda also has the highest level of shoppers not using
any of the website features beyond basic department
navigation.

80

68

70

60

58
56

57

55

The favourites list (for example previous


orders, last order, previous bought, user
created lists)

58

52

The keyword search

52
48

50

The general special offers pages


40
The 'special offers relevant to you' pages
30

29

30

30

28
25

25

The recipes and meal suggestions pages

23
18

20

10

I don't use any of the above

7
4

0
Tesco.com

* Very low sample size n = 60

Sainsburys.co.uk

Asda.co.uk

Ocado.com*

Source: Evolution Insights

www.evolution-insights.com

12

The online grocery shopper journey: examples


While every shopper journey is different, we are able to consider some high level examples of typical shopper journeys observed from our accompanied
shops and supported by our quantitative research. Here we present the typical journey of a regular online grocery shopper.

Front page

Many shoppers visit the general special offers at


the end of their shop for less than 30 seconds,
just to check they havent missed anything
46% use this feature

Shoppers often move on to department


navigation for later categories and
specific items they have written down
e.g. non perishables and non food

The vast majority of shoppers focus


entirely on logging in, booking a
delivery slot and getting started

Favourites

Department
navigation

AND

Keyword search

Special offers

Checkout

OR

Weekly shoppers often use


favourites to rapidly shortcut
buying regular staples and to
break the back of their shop
55% of weekly shoppers start
here, 68% use at some point
.

Keyword search is used either instead of


department navigation (as a shortcut), or
in addition (to search for specific
products, brands or forgotten items)
Roughly 1 in 4 use this feature

www.evolution-insights.com

The majority of shoppers spend a good


amount of time carefully reviewing
their basket, removing and adding
items. Opportunities for personalised
reminders are strong.

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The online grocery shopper journey: summary

Touch point

Common assumptions

Our research suggests

Front page and


login

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

This section is used by most shoppers to purchase regular


items. It is a good place to position initiatives and alternatives
to influence decision making.

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

Shoppers expect to the biggest discounts in this section, so it


is best used for fiercest promotions.

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

Shoppers want detailed information about ingredients,


nutritional content, provenance, suggested complements and
alternatives.

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

Good place for promotional activity as this replicates


shopping by aisle, where traditional shoppers are the most
open to offers.

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

Very powerful position for shopper marketing as shoppers


typically search for specific items they already intend to
purchase.

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)

Effective means to capture attention and influence


purchasing behaviour.

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

Great place to feature products, as recipe ingredients can be


added directly to the basket.

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

Best area for impulse purchases and new products.

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

www.evolution-insights.com

14

The online grocery shopper journey: touch points favourites (3)

Many of our accompanied


shoppers complained about
the length of favourites pages
saying they mainly use them
to quickly buy the regular
staples such as fresh fruit &
veg, bakery, dairy and meat.

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

Because its [the favourites list] laid


out the same way the supermarket is
laid out, I use it to shop the staples. I
dont have these on my written list

[Female, 30-39, AB, FT, Tesco]

[Female, 20-39, C1, Sainsburys]

I use the favourites as a prompt


but then I shop the website for
offers and alternatives before
deciding whether I want to buy
the usual or not

I always start with my favourites,


and shop the fresh grocery items
mainly, but then I get bored and
think oh, I better stick to my
[written] list and not go off-piste.
[Female, 30-39, C1, FT, Tesco]

For me the last order feature is about


helping me shortcut and save time
rather than being about ordering the
same list every time.
[Female, 40-49, B, FT, Ocado]

Online grocery retailers present favourites as a single list or by department. In either


scenario, favourites are presented in a similar order to aisles in the supermarket.

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.

[Female, 50-59, C2, PT, Asda]

www.evolution-insights.com

15

Tesco.com drivers of stores choice and reasons shoppers like Tesco.com


Here we look at reasons why shoppers choose Tesco.com. We also present what shoppers who did accompanied shops said they like about Tesco.com.
The qualitative research highlights the important role Clubcard plays in driving loyalty for Tesco.com
Drivers of store choice mentioned by Tesco.com shoppers, versus average.
Tesco.com
%

Average
%

They offer the best value for me

46.1

47.2

They have the best promotions

32.0

34.0

They have the most suitable delivery times for me

21.5

29.3

They have the cheapest delivery

9.9

25.0

Their produce tends to be the freshest/best quality

15.6

23.4

Their website is the easiest to use and understand

25.0

22.4

Their range is better than the rest

17.9

20.2

They don't send product substitutes as much as their competitors

7.6

16.0

Because they are the same company as the supermarket I usually


use

36.9

15.0

They have my favourites list

19.0

12.3

It's the only one I've ever considered

14.8

10.5

Other

11.8

10.1

I get more out of Tescos


loyalty scheme than
Sainsburys they send me
obvious money off vouchers in
the post.
[Female, 30-39, AB, FT, Tesco]

There isnt an Asda near enough to


me. If there was then I would use
it. But I can use them when I shop
online. However, I will use Tescos
online too because their Clubcard
points are good.
[Female, 20-29, DE, Tesco]

Tescos Clubcard scheme is


the most generous of the
different offers, and they
also send me vouchers by
email for using online which
makes it even better
[Female, 30-39, DE, Tesco]

Source: Evolution Insights

The reason I only use


Tesco.com is their Clubcard
point scheme. I have looked
at the others but never used
even once. I like collecting
points from the Clubcard
scheme
[Female, 20-29, C1, FT, Tesco]

I also think their Clubcard points are the best.


[Female, 20-29, DE, Tesco]

If Tesco do substitute they do so


generally for a more expensive item but
charge me the price of that I requested
so i feel special!
[Female, 30-39, AB, FT, Tesco]

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]

www.evolution-insights.com

Tesco has a good variety of products,


particularly products that have features
like gluten free, and vegetarian Quorn
products.
[Female, 20-29, DE, Tesco]

16

Methodology

Evolution carried out a preliminary survey of 100


shoppers, to test questions for the main survey and
establish an initial view of market penetration.
Detailed online store audits were also completed, to
facilitate awareness and commentary of online grocery
retailer features, functionality and initiatives. Initial
insights gained were used to help further design the
main survey.

Two quantitative surveys were utilised in this report.


The first was part of a wider research programme and
had a sample of 1,546 UK adults who said they
regularly shop for food & grocery. This survey was
used to determine overall penetration rates, barriers
to online food and grocery retailing and offline
retailers used. The second survey included only
shoppers who shop for food and grocery online at
lease occasionally. This sample of 1,002 completed all
questions relating to their online shopping behaviour.

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.

Comprehensive and detailed assessment of all the data


received was then used to discover insights.
Throughout this process, primary research was
supported by secondary research drawing on
Evolutions proprietary databases, national statistics,
news and industry resources. Evolutions consultants
also maintained close relationships with industry
figures across retailers and manufacturers.

Evolutions methodology

Secondary and desk


research

Main quantitative surveys

Detailed accompanied
shops, including pre- and
post-shop in-depth
interviews

Preliminary qualitative and


quantitative research

Store audits

Insights

Source: Evolution Insights

www.evolution-insights.com

17

Methodology: quantitative research - survey

Topics of questions in quantitative survey


Demographic profiling

Detailed shopper insights were gained from two


surveys - one of 1,546 UK adults who say they regularly
shop for food and grocery, the other of 1,002 UK
adults said they shopped online at least occasionally.
The first sample was fully representative of the UK
population who regularly shop for food & grocery,
while the second was fully representative of the online
grocery shopper population in the UK.

The survey contained 18 questions relating to topics


outlined to the left in addition to standard
demographic profiling questions.

The questions were designed to give maximum insight


into shoppers motivation and behaviour before,
during and after online grocery shopping.

The survey was undertaken by PCP Market Research


Consultants on behalf of Evolution Insights. PCP is a
company partner of the MRS and is therefore bound
by the MRS code of conduct.

The survey was carried out online during the week


commencing 9th August 2010.

Frequency of online grocery shopping


Reasons / barriers for online grocery shopping
Online retailer usage in terms of frequency and most regular
Drivers of store choice
Offline retailer usage in terms of frequency and most regular
Missions in terms of frequency and most regular
Category purchasing online and offline

Spend online and offline


Circumstances, approach and modality while shopping online
Dislikes with online grocery shopping
Barriers to increased frequency
Behavioural themes including impulse, range editing, spend, pack sizes
Perspective on shopper marketing initiatives and potential improvements to online grocery shopping
Source: Evolution Insights

www.evolution-insights.com

18

Methodology: qualitative research accompanied shops


Accompanied shops were chosen as the primary method of qualitative research. This allowed for detailed investigation into themes such as journey,
interaction with touch points, interaction with marketing, impulse purchasing, brand switching, managing budget and price comparison.

List of accompanied shop participants

13 accompanied shops were carried out during


September 2010 in order to provide in depth
qualitative research for analysis.

The format of the accompanied shops consisted of an


initial briefing and basic structured questions to
establish the shoppers online grocery context;
observation and recording of the accompanied shop
itself; and post shop questions (both unstructured
based on their behaviour during the shop, and
structured to establish their thoughts on topics such as
likes, dislikes and ideas for improvement).

All participants were confirmed to be existing online


grocery shoppers whom had a genuine need to
conduct an online grocery shop at the time of their
involvement. All reasonable efforts were made to
provide an environment conducive to natural
behaviour. Shoppers were observed and their actions
digitally recorded during the shop, but importantly
there was no interruption from or interaction with the
facilitator during this time.

Participants were recruited by PCP Market Research


Consultants on behalf of Evolution Insights. PCP is a
company partner of the MRS and is therefore bound
by the MRS code of conduct.

Accompanied Shop Participants


Gender

Age

Social Class Marital Status

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

Living with partner

Sainsburys

Male

20-29

Single

Asda

Female

20-29

Married

Tesco

Female

40-49

C1

Married

Ocado

Female

20-29

Living with partner

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

Source: Evolution Insights

www.evolution-insights.com

19

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