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Retail dynamics shape shopper loyalty: Coca Cola study

28-August-2012
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Retail dynamics shape shopper loyalty: Coca Cola study

While retailers and manufacturers largely follow a supply driven segmentation, shoppers view channels from a convenience point of view. There are different kinds of shopping trips at different times of the month. Thus, the relative convenience that a store or channel can provide during the course of a monthly pay cycle determines how a shopper looks at the channel.

This insight has been revealed by a report by the Coca Cola Retailing Research Council for Eurasia and Africa, titled ‘Understanding Shopper Loyalty within different retail formats in Eurasia and Africa’.

Throwing more light on the research, Carlos Olmos, Group Director, Customer Leadership, Coca-Cola, Eurasia & Africa, said that the research focuses on understanding how shoppers arbitrate their choice in two significant points of change in the retail landscape. It also looks at different emerging formats of modern trade and has special emphasis on India.

The Council focused on three main questions while drafting the study: Shoppers’ view of grocery channels, shoppers’ loyalty at these channels, and evolution of these channels (food retail) over the next few years.

The Eurasia and Africa region comprises 92 markets. These markets are divided into two segments – Cluster one and Cluster two countries. Cluster one consists of markets such as India, Pakistan, Kenya, Egypt, etc., the focus being primarily on India. Cluster two countries consist of South Africa Russia, etc.

Consumer loyalty plays a very important role in the success of any brand. However, shopper loyalty is bound to get affected as the wealth of the consumer increases. A consumer with a larger shopping budget has the freedom to explore wider catchment areas, thus decreasing loyalty towards one specific store. The wealthy shoppers also have the liberty of purchasing various quantities at a point of time in the month, affecting shopper loyalty tremendously.

Olmos remarked that all the facts and figures drawn in research indicate that retail dynamics will shape shopper loyalty in catchment areas in the coming years. Market drivers such as spending power, socio-demographic and investment convergence, which are closely correlated with catchment areas, will determine continuous growth opportunities for different channels in different geographies.

The study not only covers demand and loyalty drivers for retail, but goes into projections up to the year 2028. The study was presented at the 12th CII Marketing Summit, held on August 27 in Mumbai.
 

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