The Strategic Role Of The Shopper Versus The Consumer

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One of the biggest challenges shopper marketers face today is selling to their organization the very idea of addressing the shopper. Brand marketers struggle with understanding the differences between …

One of the biggest challenges shopper marketers face today is selling to their organization the very idea of addressing the shopper. Brand marketers struggle with understanding the differences between the consumer and the shopper. Brands have been successful for decades by only addressing the consumer, so now why must we address the shopper?

This presentation explains the strategic differences between the consumer and shopper and the role each plays in a brand's go-to-market strategies.

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  • 1. ©2013 by Shopper Intelligence The Strategic Role Of The Shopper Adding A New Strategic Target
  • 2. ©2013 by Shopper Intelligence 2 ©2014 by Shopper Intelligence (SI). All rights reserved. No part of this presentation may be reprinted or reproduced in any way, electronically or hard copy, without written consent from SI.
  • 3. ©2013 by Shopper Intelligence 3 The Future Of Marketing Brands need to bring “meaning through emotion” to the lives of their consumers and shoppers as a way to accomplish the following. 1. Deliver sustainable organic growth. 2. Build emotional and behavioral loyalty. 3. Bring storytelling to brand communications. 4. Create real innovation. 5. Develop sustainable competitive advantages.
  • 4. ©2013 by Shopper Intelligence 4 • The strategic role of the shopper. • Shopper planning’s role in a brand’s go-to-market strategies. What We Want You To Learn
  • 5. ©2013 by Shopper Intelligence The Strategic Role Of The Shopper
  • 6. ©2013 by Shopper Intelligence 6 Discussion What are we as marketers ultimately responsible for doing?
  • 7. ©2013 by Shopper Intelligence 7 Answer Ultimately, we’re responsible for affecting behavior. We don’t build brand equity solely for the sake of equity, we build brand equity so people will purchase and consume the brand. So if we’re responsible for affecting behavior…. Then shouldn’t everything we do (consumer, shopper, trade, and innovation) be geared towards influencing a specific behavior?
  • 8. ©2013 by Shopper Intelligence 8 How Do We Do This? We need to change our focus from purely consumer to consumer and shopper… But we must start with the shopper in order to identify the behavior we need to affect so we can accomplish our growth strategy.
  • 9. ©2013 by Shopper Intelligence 9 Strategies & Behaviors Strategies 1. Get new users: • KPIs: HHP, Trial/Repeat, Conversion. 2. Increase purchase occasions: • KPIs: Purchase frequency. 3. Increase skus/purchase: • KPIs: Skus/Purchase, Basket Ring. Buy me Buy me more often Buy more of me Behaviors There are only three growth strategies possible with each linked to a specific shopper behavior.
  • 10. ©2013 by Shopper Intelligence 10 Terminology Store First: Start with in-store execution to vet the retail power of any campaign or new product idea.
  • 11. ©2013 by Shopper Intelligence 11 Store First: Swiffer (Before)
  • 12. ©2013 by Shopper Intelligence 12 Store First: Swiffer (After)
  • 13. ©2013 by Shopper Intelligence 13 Terminology Store First: Start with in-store execution to vet the retail power of any campaign or new product idea. Shopper First: Start with the shopper to vet the behavior needed for insight connectivity and integrated strategies.
  • 14. ©2013 by Shopper Intelligence 14 Who Is The Shopper? Consumer: Consumes the product or service. Shopper: Purchases the product or service.
  • 15. ©2013 by Shopper Intelligence 15 Consumer vs. Shopper • The consumer mindset absorbs information that builds the perception of and relationship with the brand. • The shopper mindset absorbs any information that is involved with how we shop for a particular product. • The shopper mindset is always influenced by the consumer mindset. • The consumer can shift into the shopper mindset anywhere and at anytime - not just in-store. CONSUMER (Predisposition: Emotional) SHOPPER (Decision: Behavioral)
  • 16. ©2013 by Shopper Intelligence 16 One Person Or Two? For some brands, the shopper and consumer are different people, while for other brands they’re the same person. Either way, the principles are exactly the same.
  • 17. ©2013 by Shopper Intelligence 17 Expanded Definitions Consumer: Builds the perception of and emotional relationship with the brand which includes consuming the product/service. Shopper: Leverages the perception of and relationship with the brand while going through the decision making process.
  • 18. ©2013 by Shopper Intelligence 18 Shopper As New Strategic Target The shopper is now an additional strategic target - the behavioral role: Consumer (Emotional) Shopper (Behavioral) +
  • 19. ©2013 by Shopper Intelligence 19 Marketing Formulas Consumer + Shopper = Go-to-market Strategy Emotional Loyalty + Behavioral Loyalty = Brand Loyalty (Sustainable) Consumption + Purchase = Growth
  • 20. ©2013 by Shopper Intelligence Brand Plan ConsumerC O N S U M E R U N D E R S T A N D I N G Traditional Media Consumer Promotion Digital Social Event In-store Brand Annual Plan Integrated Marketing Communications: Past One Strategic Target Trade Marketing Category Management
  • 21. ©2013 by Shopper Intelligence Consumer Planning C O N S U M E R U N D E R S T A N D Traditional Media Consumer Promotion Digital Social Event Etc. Brand Annual Plan Shopper Planning S H O P P E R U N D E R S T A N D Brand Plan Integrated Marketing Communications: Future Two Strategic Targets Trade Planning Category Management
  • 22. ©2013 by Shopper Intelligence 22 Consumer Planning vs. Shopper Planning Shopper Planning Leverages the relationship with the brand by: • Triggering the core beliefs and attitudes that drive their behavior in the category along the shopper journey. (CONNECT) • Triggering the stories they have about the brand that most relate to driving purchase. (ENGAGE & INSPIRE) Consumer Planning Builds the emotional relationship with the consumer/shopper by: • Reflecting the core beliefs and attitudes that drive their behavior in the category, solidifying them as behavioral triggers. (CONNECT) • Telling them the brand story, allowing them to create or deepen their own stories about the brand.(ENGAGE & INSPIRE)
  • 23. ©2013 by Shopper Intelligence CONSUMER PLANNING Builds the emotional relationship with the consumer/shopper by: • Reflecting the core beliefs and attitudes that drive their behavior in the category, solidifying them as behavioral triggers. (CONNECT) • Telling them the brand story, allowing them to create or deepen their own stories about the brand.(ENGAGE & INSPIRE) Consumer, Shopper, Trade SHOPPER PLANNING Leverages the consumer/shopper’s relationship with the brand by: • Triggering the core beliefs and attitudes that drive their behavior in the category along the shopper journey. (CONNECT) • Triggering the stories they have about the brand that most relate to driving purchase. (ENGAGE & INSPIRE) 23 TRADE PLANNING Meet the needs of the brand and retail partners by leveraging the shopper insight to: • Give the trade plan the same behavior-driving purpose as consumer and shopper plans. • Align the trade plan with the retailer’s and brand’s category strategies.
  • 24. ©2013 by Shopper Intelligence 24 Do I Need A Shopper Planning Department? Shopper planning does not need to be a separate silo, but can be fully executed within the brand teams. But in order for the brand teams to do this effectively, there must be a fully integrated process resulting in a seamless brand experience.
  • 25. ©2013 by Shopper Intelligence 25 Consumer-Brand Relationship Cycle© Shopper Intelligence Model ©2011 by Shopper Intelligence (SI) Consumer Shopper Loyalty Leg Consumer Communication Plan (Consumer Touch-points) Ongoing Consumer Engagement (Consumer Touch-points) The Need (Trigger) Usage (SMOT) Shopper Journey (ZMOT & FMOT)
  • 26. ©2013 by Shopper Intelligence 26 How To Make This Actionable 1. Establish a framework for building shopper programs: • Vision: what you want shopper planning to accomplish as a discipline • Definition: how your organization defines shopper planning • Barriers & Implications: the organizational hurdles to accomplishing your vision • Clearly defined roles, responsibilities, and process: the cross-functional process 2. Be prepared to make mistakes, learn, and adjust: • No one gets it right immediately, there is a learning curve to becoming great (3-5 years)
  • 27. ©2013 by Shopper Intelligence Thank You!
  • 28. ©2013 by Shopper Intelligence Christopher Brace - Founder & CEO Christopher is a classically trained strategic consultant with shopper planning, brand management, traditional advertising, and promotions experience. What makes him unique is his ability to draw from this diverse background to integrate consumer, shopper, and trade planning through insight and strategy so brands deliver a seamless brand experience. As CEO of Shopper Intelligence, he has helped companies like Pfizer, Sara Lee, and Abbott Nutrition build their shopper planning framework and companies like MillerCoors, Tyson Foods, and HJ Heinz to build fully integrated plans. He is on the forefront of reshaping how brands build their go-to-market strategies so they deliver sustainable organic growth. He is a sought after thought leader having spoken around the world (China, Russia, Colombia, Brazil, Caribbean, and US) on integration, insights, and shopper planning. He has a BS in Corporate Finance and an MBA in Marketing and Management from Michigan State University.
  • 29. ©2013 by Shopper Intelligence CONTACT US Christopher Brace • Shopper Intelligence 101 West End Avenue #33B • New York, NY 10023 212.679.4170 •brace@shopperagency.com LinkedIn Group • The Shopper Intelligence Group