Trade Marketing: frammentazione del mercato e dei media

TRADE MARKETING

DAY 1 (June 10th) DAY 2 (June 11th) DAY 3 (June 17th) DAY 4 (June 18th) DAY 5 (July 4th)

MASTER IN FOOD CULTURE COMMUNICATION AND MARKETING

ANDREA ORDANINI UNIVERSITÀ DEGLI SI STRON GAST University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche STUDI DI SCIENIS - POLLENZO

Agenda: Course Program

Day Time Topic 10 jun 13.30 15.00 Course intro + Key concepts 10 jun 15.15 16.45 Channel strategies 11 jun 8.00 9.30 Trade Mktg challenges 11 jun 9.45 11.15 Teamwork + Q&A 17 jun 13.30 15.00 Category Mgmt & Mktg mix 17 jun 15.15 16.45 Teamwork + Q&A 18 jun 8.00 9.30 Private labels + E-tailing 18 jun 9.45 11.15 Teamwork + Q&A 4-jul 8.45 9.45 Skills in Trade Mktg 4-jul 10.00 12.00 Final exam

University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI

TRADE MARKETING KEY CHALLENGES

University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche POLLENTO

Retail Power

To achieve market share, manufacturers have had to ensure that their products are adopted by the key retailers and that they are displayed properly there. Yet this led to channel concentration: for an average FMCG (fast moving consumer goods) organization 50% of European sales come from only 24 accounts. Many markets are characterized by this type of structure. https://time.com/4828082/why-amazon-bought-whole-foods/ University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI

Retailer's Marketing Mix

Market share of the leading grocery retailers in Italy as of October 2024 Market share of leading grocery retailers in Italy 2024 Market shares 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Selex 15.4% Conad 15% Coop Italia 11.3%; VéGé Group 8.1% Eurospin 7.5% : Esselunga 7.4% Lidl Italia 5.9% Agorà 4.4% Carrefour Group 3.8% MD 3.2% Gruppo Pam 2.6% Finiper 2.3% Aspiag 2.1% Despar Servizi 2% C3 1.8% Description: Conad was the second leading food retailer in Italy in 2024, with a 15 percent of market share, just under Selex Gruppo Commerciale, which had a share of 15.4 percent. Among the top ten retailers with the highest market share were also leading supermarket chains such as Coop Italia, Esselunga, Eurospin, and Lidl. Read more Note(s): Italy; October 2024 Source(s): Distribuzione moderna; issuu ; Nielsen

Top Stores by Net Sales in Selected Countries in 2023

Top Stores by Net Sales in Selected Countries in 2023, in Million US$ a 5,781 a 3,876 5,658 amazon.it S 1,239 shein.com shein.com shein.com a 1,387 elcorteingles.es 719 apple.com 1,463 auchan.fr mercadona.es 4 1,417 697 boulanger.com carrefour.es 585 unieuro.it 5 TRADE MARKETING - ANDREA ORDANINI 5 a amazon.es S 2,446 S 1,595 X Cropped Version Double click to open exce file with complete data statista! 1,477 veepee.fr 7 4 703 588 zalando.it University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche 5 . . 1 1 amazon.fr 2 3

Retail Power by Region

Africa/Middle East US$66.8 billion 98.9% 1.1% 9.7% 9 Asia Pacific US$831.0 billion 86.2% 13.8% 2.0% 54 = Europe US$2,025.8 billion 33.6% 4.7% 66.4% 89 KEY: US$ FY2023 Retail Revenue Region share of Top 250 Retail Revenue Year-on-year % change in retail revenue Number of companies Latin America US$140.8 billion 2.3% 6.6% 97.7% 13 North America US$2,962.8 billion 49.2% 3.1% 50.8% 85 VERSTTA DIGANS University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI

Information Technology and E-Tailing

Developments in IT also mean that manufacturers no longer hold all the intelligence on how and when the market buys. For example, electronic scanning systems, linked to inventory control, have meant that many retailers have instant granular market information. Something similar occurs for customer tracking in e-stores. Special Price Special Special Price University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI

Loyalty Card Usage in Italy

Share of consumers having a physical or digital grocery loyalty card in Italy in 2024 Physical or digital grocery loyalty card consumer share in Italy 2024 60% 53% 50% 40% Share of consumers 35% More Shoppers are Making GenAI Part of Their Shopping Experience 13% of shoppers have used GenAI in their shopping experience 25% are planning to use it for the upcoming events 20% 12% 10% 0% Physical card Digital card Both Description: According to a survey carried out in 2024, over half of consumers enrolled in loyalty programs in Italy used only the digital loyalty card when grocery shopping. Another 35 percent only possessed a physical card, while 12 percent utilized both. Read more Note(s): Italy, 2024; 18 years and older Source(s): Nielsen; Osservatorio Fedeltà statista 3 2 5 8 4 4 Università degli Studi di Scienze Gastronomiche 0 TRADE MARKETING - ANDREA ORDANINI 8 5 23 30%

Marketplaces and E-commerce GMV

Marketplaces Move Huge Volumes of Goods That Are Comparable to the GDP of Large Sovereign States eCommerce GMV of the 10 Leading Marketplaces Compared to the GDP of Selected Countries in 2023, in US$ Million 728,761 589,824 550,410 534,858 509,762 Belgium 627,511 Austria 526,182 147,875 136,407 78,500 71,263 49,666 Amazon Pinduoduo Taobao Tmall JD.com Kwai Shop Walmart Shopee eBay Coupang 10 Notes: (1) Forecast. Market revenue represents B2C sales of physical goods including VAT. It exdudes B2B sales, C2C sales, returns, compensation for damaged or missing goods, any discounts granted and services. Data shown is using current exchange rates. Sources: ECDB, as of April 2024, IMF

Online Fresh Food and Beverages Purchases in Italy

Share of online shoppers in Italy purchasing fresh food and beverages in selected years from 2017 to 2023 Share of e-shoppers purchasing fresh food & beverages online in Italy 2023 30% 26% 25% 21% 19% £ 20% Share of respondents 15% 13% 12% 0% 5% 0% 2017 2018 2019 2021 2022 2023 Description: in Italy, the share of regular e-shoppers purchasing fresh food and/or beverages online increased by 14 percent from 2017 to 2021. In 2022, 24 percent of the respondents reported that they purchased said items online, a significant jump from the 12 percent reported in 2017. In 2023, the figure decreased to 21 percent. Read more Note(s): Italy; May 31 to July 19, 2023; 1,504 regular e-shoppers; 18 years and older; purchases made starting from January 2023 Source(s): DPD; Geopost 9 statista · POLLERPO University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI ECDB ... 24%. ....

Restaurant or Food Delivery Usage

Share of consumers who use restaurant or food delivery over time 41% 40% 39% 38% 2024 Q1 2024 Q2 2024 Q3 2024 Q4 University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche

Top Online Restaurant Delivery Providers in Italy

Top online restaurant delivery providers in Italy JUST EAT 66% Deliveroo 56% Glovo 49% Uber Eats 12% Foodracers 4% My Menu 2% Cosaordino 2% Zushi 2% Foodys 2% TRADE MARKETING - ANDREA ORDANINI

Brand Parity

The phenomenon whereby consumers find it increasingly difficult to differentiate between major brands. They perceive that some brands are equivalent and that only minor quality differences exist. The result of this lack of differentiation is that consumers tend not to choose a specific brand but purchase on price and availability within their chosen brand set (a group of brands they find acceptable). ALL AROUND PROTECTION Oral-B PRO-EXPERT Colgate® SUPER Cavity Protectich SENSODYNE JJ/ FRESH IMPACT BATANJAIL DANT KANTI SENSODYNE Fon Whier, Strong Terk & Games Regular Fresh Flowers Dabur RED Torahzasto AytIrveDls Closeup DEEP ACTION RED HOT Aquafresh Aquafresh FRESH & MINTY VICCO VICCO Would you change supermarket/grocery store for your favorite toothpaste? University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI 11 Babool Dabur® Colgate® Pepsodent Pepsodent Ương hương gerne promoción Que you only

Promoted Products Sales Share in Italy

Percentage share of promoted products on grocery retail channels' total sales in Italy in 2024, by channel Sales share of promoted products by grocery channel in Italy 2024 In-store communication Price reduction 40% 35% 30% $ 25% Share of sales 24.6% 20% 23.4% 17.4% 18.3% 15% 13.5% 10% 13.2% 5% 9.1% 8.3% 9.1% 7% 5% 3.4% 0% Hypermarkets with Hypermarkets with surface area of 4500 sq m surface area between and over Drug stores Supermarkets Convenience stores Discount stores 2500-4499 sq m University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche 9 Description: In Italy in 2024, products that were marketed either through in-store communication or by price reduction were particularly significant for hypermarkets' sales. Indeed, they represented close to 34 percent of total sales in large hypermarkets whose surface area equaled or exceeded 4500 square meters. In discount stores, promoted products made up only 16.6 percent of total sales. Read more Note(s): Italy; 2024 Source(s): Distribuzione moderna; NielsenIQ statista TRADE MARKETING - ANDREA ORDANINI

Market Fragmentation

A situation in which there are many different types of customers for a particular product/service or many different companies providing a particular product/service. The fragmentation of markets is making it increasingly difficult to use mass advertising campaigns. Instead, it becomes easier to see the results of trade promotions, which may persuade: a) Intermediate clients to increase stock at a particular point in time b) Final customers to choose a product over another University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI

E-shoppers of Beauty Products in Italy by Generation

Distribution of e-shoppers of beauty products in Italy in 2024, by generation and merchant type E-shoppers of beauty products in Italy 2024, by generation and merchant type Pure player Beauty specialist Pharmacies 60% 56% 50% 44% Share of respondents 40% 36% 33% 30% 20% .18%. ... .. .. .... 12% 10% 2% 1% 2% 0% Gen B (-1959) Gen X (1960-1979) Gen Y (1980-1994) Gen Z (1995-) 25 Description: A survey conducted in Italy in 2024, showed that younger generations, particularly Gen Z and Millennials (Gen Y), dominate online beauty shopping, with Gen Z showing the highest interest. The most popular merchant types among younger consumers are beauty specialists at around 56 percent of Gen Z and pure players around 44 percent, while pharmacies are also significant, particularly for Gen Y. In contrast, older generations such as Gen X and Baby Boomers have much lower [ ... ] Read more Note(s): Italy; 2024; 18 years and older Source(s): IQVIA; Nielsen; Noiza statista University of Gastronomic Sciences Università degli Studi di Scienze Gastronomiche TRADE MARKETING - ANDREA ORDANINI 14 39% 29% .... 20%