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Digital Shopping - Customer Decision Journey

Digital Shopping - Customer Decision Journey
Shoppers prefer different touchpoints for different categories

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    Nielsen digital shopper_final_optimized_oc12 Nielsen digital shopper_final_optimized_oc12 Document Transcript

    • digitalshoppINGWHAT YOU NEED TO CONSIDEROCTOBER 2012
    • 2Success in the digital shopping environment requires a deepunderstanding of shopper needs, how a product category gets shoppedand the ability to cost effectively deliver a product to the consumer.The digital revolution has transformed industries like music, books andtravel almost entirely because e-commerce solutions delivered shopperneeds in ways that traditional channels couldn’t match. Gone are the dayswhere we had to buy an entire album because of a particular track. WithiTunes, it is so much easier and economical to customize a personal musiclibrary and deliver it digitally. It is much more convenient to visit travelsites like Expedia or Travelocity to research, compare and make purchases,rather than visiting a travel agency. In publishing, Amazon’s endless bookselections, authentic reader reviews, personalized book recommendationsand e-book options are hard for brick-and-mortar bookstores to match.Amazon’s edge in giving shoppers tailored and relevant choices as well ashighly competitive prices has forced traditional booksellers like Bordersto close, and has set Amazon on pace to own more than half of the booksbusiness in the United States across all formats by the end of 2012.iSo are consumer packaged goods (CPG) next in line? Is technology afriend or a foe to retailing in CPG? What does it take for CPG marketersto be shopper centric in a digital world? This paper provides a thoroughassessment of the impact of digital on the CPG industry, and outlines keyprinciples for marketing success in a world where digital is a new normal.While we acknowledge that both shopper understanding and economicconsiderations dictate success in the digital world, this paper focusesprimarily on the former: the shopper, their category needs and the digitaltouchpoints that influence their behavior.Meet thedigitalshopperconnected, savvy and activelyseeking choice, convenienceand value for their dollar.DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
    • 3DRIVERS OF SUCCESSWHAT CATEGORIES MATTERHOW Touchpoints matterWHO SHOPPERS MATTERCopyright © 2012 The Nielsen Company
    • 4Digital technology is widely pervasive today and will only continue to growat a rapid pace into the future. Over 274 million Americans have accessto the Internet. iiAs of March 2012, 117 million people had smartphones,iiiand approximately 80 percent of them were using smartphones forshopping activities like finding stores, making lists, checking prices,researching products, sharing content and purchasing.ivAmidst these activities, people continue to want to satisfy threefundamental needs when they shop: convenience, choice and value fortheir money. Convenience is the ability to deliver a shopping solutionthat requires less time and effort. Choice is simply more variety to caterto a broader set of consumer needs. Price-value is the level of qualitydelivered at a certain price point. For nearly two centuries now, retailformats have evolved to better address these needs.shopperNEEDSFundamental truthsabout shoppingCHOICEconvenience storesdollar storeswarehouseclub storeshypermarkets/mass merchandisersnatural/specialtyfood storespharmaciessupermarkets PRICE - VALUECONVENIENCERETAIL FORMATS EVOLVED AROUND FUNDAMENTAL SHOPPER NEEDSDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
    • 5Ample evidence suggests that these needs have beenresponsible for retail evolution. Shoppers who foundthe need to visit multiple stores to buy consumablesand household products inconvenient, migrated tosupercenters introduced by Meijer for a ‘one-stop-shopping’ experience. Convenience stores also offeredan alternative to supermarkets for shoppers on ‘grab andgo’ trips. In recognition of shoppers’ desire to economize,Walmart focused on lowering supply chain costs, increasingefficiency and providing value to shoppers in terms ofeveryday low prices. More recently, shopper needs fornatural or ethnic products have emerged. Retailers likeTrader Joe’s recognized this need for choice early on, andimplemented a culturally-tailored approach to offer uniqueproduct selections to a fast growing multicultural groupin the population. They have grown into a $9.5 billioncompany in a relatively saturated retailing environmentand have managed to transform a trip to a Trader Joe’sstore into an experience. vAre clicks, then, destined to replace bricks in CPG as theyhave in other industries? E-commerce has undoubtedlygrown at an impressive rate, but in 2011, it accounted forShopper Needs and Retail Advantagesjust two percent of total CPG sales. We believe that whiledigital will continue to play an increasingly important rolein the CPG industry, online shopping will not completelyreplace trips to stores any time soon. E-commerce doesoffer a few benefits and has enjoyed some success,particularly with shoppers in densely populated urbansettings that are seeking convenience. However, brick-and-mortar stores also enjoy key advantages overe-commerce and have prevented e-commerce fromgaining widespread adoption. As illustrated below, bothvirtual and physical stores deliver convenience, choice andprice-value to shoppers in their own way.While e-commerce may not replace traditional groceryshopping in the immediate future, the reality is that inan industry with modest growth like packaged goods,e-commerce will likely grow at the expense of moretraditional channels. More broadly, digital also providesan opportunity for marketers to engage with shoppers‘everywhere and exactly where’ in order to influenceshopping decisions in their favor. Let’s evaluate how youcan unlock this opportunity in CPG through the lens ofwhere people buy and how people shop.• No Travel• Available 24x7• Features like automaticreplenishment• Avoid crowded stores/checkout• Easy price comparison• Access to deals and coupons• Broader product range• Access to more retailers• Ease of research• Ability to seek help or give advice• No waiting for delivery• Easy to address immediate or specialneeds• No shipping fees or stringent returnpolicies• Ability to inspect products for quality• Exposure to promotions, sampling andsignage• Easy to interact with, evaluate andselect products• Experience through tailoredassortment, layout or prices• Interaction with store associatesONLINE STOREADVANTAGESBRICK-AND-MORTARSTORE ADVANTAGESneedconvenienceShopping solutions thatrequires less time and effortprice-valueHigher quality for acertain pricecHOICEVariety to address moreconsumer needsCopyright © 2012 The Nielsen Company
    • 6While e-commerce may not account for a dominant share of CPG salestoday, it is still the fastest growing retail channel. Less than four percent ofpeople in America buy CPG products online in any given monthii, but weproject e-commerce to grow at a 25 percent annual rate through 2015 andmore than double its current share of total CPG sales.WHEREPEOPLEBUYThe role that categoryplays in e-commerceSource: Nielsen NetView Panel and Nielsen Analysis, 20121214162025322010 2011 2012 2013 2014 201525%CompoundAnnualGrowthRate5% of CPG sales2% of CPG salesOnline CPG sales will continueto grow at a robust rateUS online CPG sales ($Billions)DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
    • 7Here’s an interesting fact: the mix of product sales in e-commerceis 60 percent non-food to 40 percent food, the exact reverseof the CPG picture in total, which is 60 percent food and 40percent non-food. Looking ahead, we expect that the accelerationwill greatly differ by product category. If CPG marketers want toinfluence shopper’s decisions on where to buy, the reality is thatcategory matters.Some categories are better candidates for selling online than others.Categories in the lead are diapers, diet aids, vitamins and skin carewith online sales significantly above the average for CPG products.Many of these categories are relatively expensive non-food productswith a steady usage rate. In contrast, categories like carbonatedbeverages, dairy, liquor, beer, produce and frozen food have a verysmall proportion of sales online. These categories encounter physicalbarriers to e-commerce due to factors like refrigeration, perishableconcerns and weight that are cost-prohibitive for shipping.In Q2 2012, Nielsen conducted extensive research across 36,000shoppers of CPG products spanning 18 categories, including bothfood and non-food items. Based on this research and analysis ofonline purchase data, we identified two barriers and two enablersthat translate into convenience, price-value and choice for ashopper, and collectively determine how successful a category canbe in e-commerce.$8B$6BUS ONLINECPG SALES($ BILLIONS)NON-FOODFOODTHE majority of online salesare for non-food productsSource: Nielsen NetView Panel and Nielsen Analysis, 2012Copyright © 2012 The Nielsen Company
    • 8Barriers and Enablersto E-CommerceSome categories face a pronounced urgency barrier, theoverwhelming shopper desire to buy and use at once, without waitingto have the product delivered. For confections, the consumptionneed is often immediate. Convenience can be paramount and thenearest store suffices for that shopper mission.This barrier is especially relevant to perishable food such as freshproduce and food requiring refrigeration. Concerns about spoilagecan discourage online purchasing because they negatively affect theproduct value proposition if items get discarded. The need to inspectcertain products drives people to a store and they tend to buyother products that they need while they are there. Therefore theinspection barrier has a secondary effect on the entire basket.Products with predictable consumption rates and a long shelf lifesuch as diapers or dog food lend themselves to online purchasingprograms such as Amazon’s Subscribe and Save. Shoppers enrolledin such programs are automatically shipped specific productson a periodic basis, and also provided with other incentives suchas preferred customer discounts, coupons and new productinformation. Meanwhile, retailers and manufacturers enjoy theancillary benefit of building brand loyalty via these automaticreplenishment systems.As for price factors, online retailers enjoy several cost advantagesover brick-and-mortar operations, particularly related to overhead.Lower costs of doing business often convert directly into lowerconsumer prices or steeper discounts for digital shoppers, whichallows marketers to retain price sensitive shoppers in a moreprofitable way. Considerations affecting the digital investmentdecision for retailers include how online delivery charges and overallpricing align with offline retail alternatives.urgent needsimmediate consumptionlow delay tolerancecheck quality in storedifficult to returnsensory product choice(e.g. smell)steady use-up ratewilling to stock uphigh price to weight ratio(low shipping costs)product margin(room for discounting)DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERUrgency BarrierInspection BarrierStock-Up EnablerPrice Enablerseeking choiceseeking CONVENIENCEseeking CONVENIENCEseeking price-value
    • 9Copyright © 2012 The Nielsen CompanyKeeping the barriers and enablers in mind, we expect personal carecategories like vitamins, skin, hair, feminine and baby care; pantry stapleslike coffee and cereal; and paper products like bath tissue and kitchentowels to win in e-commerce if manufacturers and retailers collaborateto deliver price-value, choice and convenience. Conversely, e-commercegrowth in snacks, frozen foods, condiments and beverage will be relativelyslow.It is clear that consumersare beginning to embrace theidea of buying some packagedgoods online.In response, brick-and-mortar retailers, who were skeptical ofe-commerce, are increasingly making it a strategic goal. Savvy retailers areexpanding their online offerings and experimenting with new ordering anddelivery options. They are developing strategies to cater to shoppers thatdon’t have time to make grocery trips, or prefer to avoid long checkoutlines or crowded parking lots. For example, some retailers are allowingshoppers to order online or from an app on a connected device and pickup the products in-store at a convenient time. Others are including‘did you forget’ style reminders for online shoppers to promote cross-merchandising and build baskets, while performing a service for customers.Walmart, for instance, stands at the forefront of a vanguard of progressiveretailers actively addressing the digital shopping opportunity. The retailinggiant is leveraging the advantages of being a multi-channel player,enhancing the benefits of physical store locations with those of the digitalenvironment, and integrating efforts across e-commerce, mobile andin-store initiatives. Retailers have also partnered with manufacturers todrive win-win with key shoppers. For example, Dollar General has recentlyworked with P&G to offer free samples of Tide Pods to shoppers for apurchase of anything at dollargeneral.com. Several brands, including largeones like Axe and Dove use social networking sites like Facebook as anearly medium to distribute product samples, obtain product feedback,optimize their marketing strategy, and use these results as valuableinformation to collaborate with retailers.While the vast majority will continue to do a bulk of their grocery shoppingin a store, the multi-channel shopping era that combines offline andonline shopping is here. There will not be a massive or sudden flight frombrick-and-mortar stores to online grocery shopping in the next few years,akin to what has occurred in other industries. However, some categorieswill experience faster e-commerce growth than others, and if these aretrip driver or basket builder categories, then retailers definitely needto find ways to mitigate the loss. We contend the winners will be thosewho quickly recognize how shopper demand is evolving due to changingdemographics and rapid advances in technology, and are able to alignformats, assortment, promotions and communication to deliver against thecore shopping needs of choice, convenience and value for their dollar.
    • 10 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERI love researchingnew products onlinebut I don’t buy myBODY LOTION onlinebecause I like tosmell it in the store.inspection barrier
    • 11I SHOP ONLINEBECAUSE THEPRICES CAN’T BEBEAT. I CAN FINDTHE BEST DEALSON MY FAVORITERAZORS.Copyright © 2012 The Nielsen Companyprice enabler
    • 12 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERI buy aspirinat my localdrugstorebecause whenI have aheadacheI need itright away.URGENCY BARRIER
    • I NEVER HAVE TOWORRY ABOUTBATH TISSUEBECAUSE I HAVEMY ACCOUNTSET TO AUTOREPLENISHEVERY MONTH.13Copyright © 2012 The Nielsen CompanySTOCK-UP ENABLER
    • 14E-commerce in the CPG industry is in its nascent stages. However, digitaltechnology does present significant potential for timely and personalizedmarketing. Shoppers do engage in other activities like checking prices andresearching products online. Moreover, rapid proliferation of technologycertainly provides marketers with a myriad of ways to interact withshoppers.Amidst this increasingly complicated marketing landscape, where shouldyou invest in digital? Are websites more effective than coupon sites?Should you prioritize social media engagement over developing mobileapps? These are indeed difficult questions to answer.Nielsen’s recent research in Q2 2012 set out to answer these questionsin the CPG industry. Our results illuminated the role that various digitaltouchpoints (websites, social media sites, blogs and coupon sites) play ininfluencing shoppers’ purchase decisions for various CPG products. Wediscovered that shoppers often default to only using certain touchpointsdepending on what they are purchasing. It is important for marketers tounderstand what the relevant touchpoints are for their products, and thespecific shopping decisions they influence.There are interesting differences across categories and people in termsof whether emails, blogs or websites work best. Based upon our analysis,several key principles emerged:• People utilize a variety of media and sources of information, andthese vary by category and demographics.• An integrated approach, leveraging traditional and digitaltouchpoints, is most effective. Focusing solely on a social or mobilestrategy is not prudent.• Strategies must recognize which digital touchpoints are effective.Using them judiciously in concert with traditional marketing efforts iskey to success.HOWPEOPLESHOPThe importance of touchpointsin digital shopper marketingDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
    • RankingMost Used DigitalTouchpoints FORCPG CATEGORIESAllShoppersHispanicShoppersAfrican AmericanShoppers1 Coupon Website 1 1 22 Social Network 2 1 13 Brand Email 3 3 44 Store Website 4 5 25 Store Email 5 6 56 Blogs 6 3 87 Brand Website 7 7 98 Mobile Apps 8 8 59 Media Website 9 9 710 Online Retailers 10 10 10Preference forDigital TouchpointsVaries Across Shoppers15Copyright © 2012 The Nielsen CompanyHighlighed touchpoints indicate a disparity between shoppers.Source: Nielsen Digital Shopping Study, Q2 2012
    • 16Shoppers preferdifferenttouchpoints fordifferent categories% shoppersutilizing DIGITALfor category shoppingTop 3 DigitalTouchpointsfor High Digital Usage CategoriesDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERCarbonated BeveragesSource: Nielsen Digital Shopping Study, Q2 2012
    • 17Intuitively, one may think that categories more suited fore-commerce also do a better job of marketing digitally toshoppers. We, however, uncovered a different reality. Categoriesare currently at very different stages of establishing and engagingan online audience. The level of e-commerce development is notalways a good indicator of how effective these categories are indigital shopper marketing.Marketers that are able to prioritize the right touchpoints acrossdigital platforms to reach, engage and influence shoppers havesignificant upside. Effective digital shopper marketing requiresthat marketers identify decisions shoppers make along the pathto purchase when they intend to buy specific products, and thendetermine the right mix of digital touchpoints to influence thosedecisions.DIGITAL ENGAGEMENT ALIGNS WITH E-COMmERCE FOR MOST,BUT NOT ALL CATEGORIESDIGITAL ENGAGEMENTONLINEPURCHASELOWHIGHHIGHBaby FoodSmall AppliancesDiet AidsVitaminsDiapersSkin CarePain RemediesCereal,Hair Care,Oral HygieneCarbonated BeveragesLaundry DetergentCopyright © 2012 The Nielsen CompanySource: Nielsen Digital Shopping Study, Q2 2012
    • 1818 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERWhen planninga trip tothe store,convenience,choice andprice-value arealways topof mind.PLACEPURCHASEPLANPATH TO PURCHASE
    • 19Use media to influence shopping at key decision pointsalong the Path to PurchaseMakepurchaseAccess deals/bargainsPlanshopping tripAccessfeedback/reviewsGather productinformationObtain ideason usageDiscover a newbrand or product/reconfirmprior purchaseCopyright © 2012 The Nielsen CompanyBUYPLANPURCHASEPLACEEVALUATEDEMANDTRADITIONAL AND DIGITAL INFLUENCESTRADITIONAL AND DIGITAL INFLUENCESCONSUMEENGAGETRIPS&MISSIONSCHOICE DRIVERSPURCHASE DRIVERSMEDIA&SOCIALSATISFACTION DRIVERSUSAGE & OCCASIONS
    • 2020An examination of the path to purchase for diapers versus babyfood provides an interesting perspective into the different roleof digital technology for two seemingly related categories. Atfirst glance, more shoppers use digital media when shopping fordiapers (62%) compared to baby food (54%). This suggests thatdiapers are more successful in digital shopper marketing.However, a closer look reveals baby food utilizes multiple digitaltouchpoints more effectively compared to diapers. It suggeststhat marketers of diapers have room to further optimize theirdigital strategy, either by trying to make certain touchpoints,e.g. websites and social networks, work better for their products,or by focusing on a smaller set of more influential touchpoints,e.g. blogs. Similarly, baby food marketers that have evidentlyenjoyed some success in digital shopper marketing mighthave even more opportunity to influence certain decisions oractivities along the path to purchase, e.g. planning trips andaccessing deals.Diapers vs. Baby FoodMORE SHOPPERS USE DIGITAL WHEN SHOPPING FOR DIAPERS, BUT BABYFOOD UTILIZES MULTIPLE DIGITAL TOUCHPOINTS MORE EFFECTIVELY62% 54%ofcategoryshoppers thatuse digitalDIAPERS BABY FOODDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERSource: Nielsen Digital Shopping Study, Q2 2012
    • 21PATH TOPURCHASEDECISIONPOINTSPATHTO PURCHASEDECISION POINTSEMAIL WEBSITESSOCIALNETWORK BLOGSDiscovernew brand/productReconfirmpriorpurchaseObtain ideason usageGatherproduct informationAccessfeedback/reviewsPlan shoppingtripAccessdeals/bargains ▲▲▼▼▼▼PATHTO PURCHASEDECISION POINTSEMAIL WEBSITESSOCIALNETWORK BLOGSDiscovernew brand/product ▲ReconfirmpriorpurchaseObtain ideason usageGatherproduct information ▲Accessfeedback/reviews ▲Plan shoppingtripAccessdeals/bargainsDIAPERSBABY FOODCopyright © 2012 The Nielsen Company*Shoppers acknowledge the role of a digital media in the helping them on aspecific path to purchase decision points (index vs. other CPG categories)▼ ▼ Index <50, ▼ Index 51-79 , Index 80-119, ▲ Index 120-149, ▲ ▲ Index 150+Source: Nielsen Digital Shopping Study, Q2 2012
    • 22A similar analysis of the diet aid and skin care categoriessuggests that a good barometer of success in digital shoppermarketing is the extent to which marketers influence keydecisions along the path to purchase, rather than penetrationalone.Diet aids (53%) trump skin care (42%) in terms of thepercentage of overall shoppers that use digital touchpointswhile shopping for these products. However, skin care productsutilize digital touchpoints more effectively to engage shoppers.Marketers of diet aids can potentially learn how to makewebsites more influential by analyzing how skin care marketersuse websites to engage with shoppers. They could also improveon helping shoppers to make better decisions earlier along thepath to purchase, e.g. discovering new products.We live in a digital world and digital marketing can providesignificant opportunities to connect with shoppers on a personaland relevant level. However, the increasingly complex multi-platform retail environment requires mastery of online, mobile,social, traditional and in-store media vehicles and the abilityto assemble the right tactical mix. Marketers tuned-in to thedigital advantage will bolster consumer engagement and involveshoppers in a more vital, authentic way at every decision pointalong the path to purchase. In the future as shoppers begin towant continuity between the online and offline experience, theywill exercise their online expectations in offline environments.Diet Aids vs. Skin CareTHOUGH DIET AIDS HAS MORE DIGITALLY ENGAGED SHOPPERS, SOMETOUCHPOINTS ARE NOT AS USEFUL TO SHOPPERS2253% 42%ofcategoryshoppers thatuse digitalDIet aids skin careDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDERSource: Nielsen Digital Shopping Study, Q2 2012
    • 23PATH TOPURCHASEDECISIONPOINTSPATHTO PURCHASEDECISION POINTSEMAIL WEBSITESSOCIALNETWORK BLOGSDiscovernew brand/productReconfirmpriorpurchaseObtain ideason usageGatherproduct informationAccessfeedback/reviewsPlan shoppingtripAccessdeals/bargains▲▲▼▲▼▼▼▼▼▼▼▼▼▼PATHTO PURCHASEDECISION POINTSEMAIL WEBSITESSOCIALNETWORK BLOGSDiscovernew brand/product ▲ ▲ ▲Reconfirmpriorpurchase ▲Obtain ideason usageGatherproduct information ▲Accessfeedback/reviews ▲Plan shoppingtripAccessdeals/bargainsDIet aidsskin care*Shoppers acknowledge the role of a digital media in the helping them on aspecific path to purchase decision points (index vs. other CPG categories)▼ ▼ Index <50, ▼ Index 51-79 , Index 80-119, ▲ Index 120-149, ▲ ▲ Index 150+Copyright © 2012 The Nielsen CompanySource: Nielsen Digital Shopping Study, Q2 2012
    • 24How tobe asdigitallysavvyas yourshoppersDIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
    • 25The message to retailers with regard toe-commerce and digital shopper marketing isclear—embrace the trend and make digital acore element of your overall strategy. In order tosucceed, retailers should: Recognize shopper needs:Online shopping and digital shopper marketing arechanging shoppers’ expectations and behaviors.Keep in mind that shoppers will continue to seekconvenience, choice and price-value, and theywill find the channel that best delivers againstthese needs. Don’t let the fear of cannibalizationdissuade digital shopper marketing efforts as yourshoppers may switch to competitors if you do notoffer a complete shopping experience. Understand the role of categories in the digital era:Online shopping provides opportunities to up-selland grow the basket. Free of physical or temporalbarriers, online shopping environments can providean expansive product assortment and unexpecteditems (treasure hunt), incentivizing shoppers tocheck-in and check-out the merchandise on theirown time. Protect categories that drive trip countand basket size by unlocking the barriers andenablers of e-commerce success:• Urgency Barrier• Inspection Barrier• Stock-Up Enabler• Price Enabler Optimize digital touchpoints:Digital affords new opportunities for personalizedshopper communications enabling special offersappealing to unique interests via relevant, resonantmessaging. Enjoy a boost in ROI on promotionalspending by extending offers to price-sensitiveshoppers only, avoiding unnecessary subsidies andprecisely calibrating offers to shopper needs andwants.Retailers25Manufacturers can benefit from joining thedigital vanguard as well, developing a loyalfollowing among key constituencies throughfrequent communication and feedback withshoppers that helps shape and tailor offerings.Factors influencing digital marketing success formanufacturers include: Improve engagement with your shoppers:Understand evolving consumer trends and theoptimal way to reach your most valuable shoppers,leveraging personalization afforded throughdigital platforms. Shape offers that reflect theusage patterns and product preferences of yourshoppers, like automatic replenishment programs,in order to influence purchase decisions and drivelong-term brand loyalty. Create a multi-platformcampaign that influences the consumer alongthe path to purchase by offering more value thanstrictly promotional offers. Innovate to drive growth:Leverage e-commerce as a channel suitedto certain shopper segments, niche productassortment and new product introductions.Understand the new rules of engagement asthis channel introduces new competition, butaffords the opportunity to maximize new productinnovation. Solicit immediate feedback on newformulas and programs, tweaking winners andcutting losses on unsuccessful products; querycustomers as to pack size and form preferences tocreate virtually customized offerings. Digital shopper marketing:Leverage digital to proactively tackle the mostimportant issues of your key retail partners.Online engagement with brands can trigger newtrips, expand baskets and influence store choice.Ideas include ‘buy it now’ links in digital ads,digital shopping lists pre-populated with commonpurchases, and pop-up stores driving product orretail trial.Manufacturers123123Copyright © 2012 The Nielsen Company
    • For the CPG industry, digital shopping represents an evolutionary, not arevolutionary development, that will bring manufacturers and retailers closerto the consumer. Success in the digital shopping environment requires a deepunderstanding of decisions that different shoppers make along the path topurchase at both the trip and product level, the types of information theyseek to inform those decisions, and where they choose to purchase.Manufacturers and retailers should measure the impact of digital shoppermarketing programs, understand the drivers of success or causes of failure,and continuously adjust these programs to better align with core shopperneeds.By leveraging digital and its distinct characteristics, retailers can complementbrick-and-mortar operations rather than replace them, building sales on bothfronts. Stores will thrive because of technology, not in spite of it.For manufacturers, digital is no longer optional. Know your shopper. Engageher through digital media to influence relevant decisions on the path topurchase. Drive her to purchase—wherever that purchase might be.About NielsenNielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company withleading market positions in marketing and consumer information, television and other mediameasurement, online intelligence, mobile measurement, trade shows and related properties.Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA andDiemen, the Netherlands.For more information, visit www.nielsen.com.Copyright © 2012 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo aretrademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and servicenames are trademarks or registered trademarks of their respective companies. 12/545526CONCLUSIONi“Amazon Positioned for 50% Overall Market Share by End of 2012”, Seeking Alpha, February 2011.http://seekingalpha.com/article/250507-amazon-positioned-for-50-overall-market-share-by-end-of-2012iiNielsen NetView, 2012iiiNielsen Mobile Panel, 2012ivNielsen Mobile Shopping Report, Q1 2012v“2012 Power 50: No. 23 Dan Bane”, Supermarket News, July 2012.http://supermarketnews.com/trader-joe039s-market/2012-power-50-no-23-dan-baneREFERENCES