First we look at the % change in category sales for the current year vs. a year ago within three shopper groups that we segmented for this purpose.
The figure indicates that Shopper Group A is driving the volume decline for the category.
2. How?
Then we look at which consumer purchase behaviors are driving this volume decline within Shopper Group A.
The figure reveals that declines in frequency and transaction size are driving the negative trends for Shopper Group A. They are buying less frequently and in smaller amounts.
3. Why?
Finally, we look at other possible drivers of frequency and transaction size decreases.
The figure Illustrates that these changes can be traced to shifts in promotional practices:
A key segment has had reduced support
The retailer moved away from multiple unit pricing, thereby lowering transaction size.
CONCLUSION
Shopper Group A is driving the volume decline for category, and frequency and transaction size are driving the negative trends for Shopper Group A due to inappropriate promotional strategies.
POSSIBLE ACTION
Increase support for key product segment, and move back to multiple unit pricing.
