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SHOPPER MARKETING
April 19, 2012
2
Agenda
•   Shopper Marketing definition
•   OgilvyAction’s Approach to Shopper Marketing
•   Why Shopper Marketing is More Important Than Ever
•   Best in Class case studies




                                                        3
SHOPPER MARKETING
DEFINITION
Industry Definition of Shopper Marketing

All marketing stimuli, developed based on a deep
understanding of shopper behavior, designed to build brand
equity, engage the shopper and lead him / her to make a
purchase.




                                                             5
OgilvyAction’s View of Shopper Marketing

                Brand affinity = awareness and interest




               Brand transaction = intent and purchase




The goal of shopper marketing is to be present with an activation voice at
 all relevant points of contact along the shopper’s journey, to drive intent
               and purchase all the way to the final second.


                                                                               6
                                                                                   6
Brand Affinity becomes Brand Transaction by
triggering Action Points along the path to purchase.




                                                       7
We believe consumer and shopper mindsets are interwoven.



               Consumer Mode                        Shopper Mode
Audience          Who she is                        How she shops
    Task        Get in her mind                     Get in her cart
    Story       Reason to buy                   Reason to buy right now
  Content   Emotion leads, practical            Practical leads, emotion
              benefits support                         validates




And that the role of communication differs based on what mindset she’s in


                                                                            8
                                                                                8
Some think about the path this way




           Pat h t o Purchase




And while a linear path to purchase helps us organize…

                                                         9
…We understand that today’s journey to purchase is more
               complex and dynamic.




                                                          10
                                                               10
We know our target is in Shopper mode
     anywhere and everywhere.




                                        11
                                             11
And while much of in-store behavior is ‘auto-pilot’, shoppers
    are becoming more engaged outside of the store.




                                                                12
                                                                     12
Because the shopper’s journey is more dynamic, where and
    how we intercept her is more important than ever.




                                                           13
That’s why we believe that store back is really shopper back.




 Understanding shopper’s behavior beyond the store and
activating at the right interception point is critical to shopper
                      marketing success.

                                                                    14
                                                                         14
WHY SHOPPER MARKETING
IS MORE IMPORTANT THAN
EVER
Shoppers Have Become More Savvy
• During the economic downturn shoppers learned to be less impulsive
 and more frugal and these behaviors have persisted over time
   – In 2010,  78.3% of consumers said they used coupons regularly in
       2010, up 14.7% from pre-recession levels

   – Digital coupon usage grew      41% in 2010
• Shoppers are doing their homework before they go shopping

   – More than    81% of shoppers conduct research before they go
       shopping, typically for an hour or longer

   –   4 out of 5 smartphone owners use their phones to check
       inventory, look up product info and find special offers




                                                                        16
The Shopper Makes a Majority of Her
 Decisions in Store
• 59% of brand selections are made in store

   - Shoppers typically enter the store with a set of products and brands in
     their consideration set and then make their final decision at shelf

• 85%    of shoppers perceive in-store factors as more influential than
 out-of-store marketing

• 77%    of shoppers enter the store without a detailed shopping list




                                                                               17
Q&A




      18
THANK YOU

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"Shopper Marketing - Consumer Packaged Goods" Presentation 041912

  • 2. 2
  • 3. Agenda • Shopper Marketing definition • OgilvyAction’s Approach to Shopper Marketing • Why Shopper Marketing is More Important Than Ever • Best in Class case studies 3
  • 5. Industry Definition of Shopper Marketing All marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper and lead him / her to make a purchase. 5
  • 6. OgilvyAction’s View of Shopper Marketing Brand affinity = awareness and interest Brand transaction = intent and purchase The goal of shopper marketing is to be present with an activation voice at all relevant points of contact along the shopper’s journey, to drive intent and purchase all the way to the final second. 6 6
  • 7. Brand Affinity becomes Brand Transaction by triggering Action Points along the path to purchase. 7
  • 8. We believe consumer and shopper mindsets are interwoven. Consumer Mode Shopper Mode Audience Who she is How she shops Task Get in her mind Get in her cart Story Reason to buy Reason to buy right now Content Emotion leads, practical Practical leads, emotion benefits support validates And that the role of communication differs based on what mindset she’s in 8 8
  • 9. Some think about the path this way Pat h t o Purchase And while a linear path to purchase helps us organize… 9
  • 10. …We understand that today’s journey to purchase is more complex and dynamic. 10 10
  • 11. We know our target is in Shopper mode anywhere and everywhere. 11 11
  • 12. And while much of in-store behavior is ‘auto-pilot’, shoppers are becoming more engaged outside of the store. 12 12
  • 13. Because the shopper’s journey is more dynamic, where and how we intercept her is more important than ever. 13
  • 14. That’s why we believe that store back is really shopper back. Understanding shopper’s behavior beyond the store and activating at the right interception point is critical to shopper marketing success. 14 14
  • 15. WHY SHOPPER MARKETING IS MORE IMPORTANT THAN EVER
  • 16. Shoppers Have Become More Savvy • During the economic downturn shoppers learned to be less impulsive and more frugal and these behaviors have persisted over time – In 2010, 78.3% of consumers said they used coupons regularly in 2010, up 14.7% from pre-recession levels – Digital coupon usage grew 41% in 2010 • Shoppers are doing their homework before they go shopping – More than 81% of shoppers conduct research before they go shopping, typically for an hour or longer – 4 out of 5 smartphone owners use their phones to check inventory, look up product info and find special offers 16
  • 17. The Shopper Makes a Majority of Her Decisions in Store • 59% of brand selections are made in store - Shoppers typically enter the store with a set of products and brands in their consideration set and then make their final decision at shelf • 85% of shoppers perceive in-store factors as more influential than out-of-store marketing • 77% of shoppers enter the store without a detailed shopping list 17
  • 18. Q&A 18

Editor's Notes

  1. Centralise content on template horizontally
  2. Sources: adage.com/article/special-report-couponing/coupons-hot-a-bargain-brands/228611/, “Shopper Marketing 3.0: Unleashing the Next Wave of Value”, Grocery Manufacturers Association, She Speaks and Booz & Co., “Shopper Marketing Breaks out of The Store”, Forrester, 10/19/2011
  3. Sources: business2community.com/consumer-marketing/why-retail-marketers-need-to-be-practicing-shopper-marketing-052699, “Shopper Marketing 3.0: Unleashing the Next Wave of Value”, Grocery Manufacturers Association, She Speaks and Booz & Co.