Mission Possible: Profiling Shopping Occasions for Retail and Channel Partners
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Mission Possible: Profiling Shopping Occasions for Retail and Channel Partners

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In a webseminar for the Path to Purchase Institute, Copernicus' Jeff Maloy illustrated how to develop an actionable shopping occasion framework and activate against it to improve sales.

In a webseminar for the Path to Purchase Institute, Copernicus' Jeff Maloy illustrated how to develop an actionable shopping occasion framework and activate against it to improve sales.

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Mission Possible: Profiling Shopping Occasions for Retail and Channel Partners Mission Possible: Profiling Shopping Occasions for Retail and Channel Partners Presentation Transcript

  • Mission Possible: Profiling Shopping Occasions for Retail and Channel PartnersJeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting and ResearchMarch 21, 2013
  • Who Am I?Jeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting & ResearchLeading our CPG practiceFormer Director of Marketing, with multiple brand and shopper marketing assignments.Developing relationships with clients such as Kraft, P&G, Nestlé, and Hershey’s.Helping my clients develop and execute transformational shopper marketing strategies
  • SWAG! Get and Share ideas for developing a transformational shopper marketing strategy…. • Request this presentation and our white paper • Send an email to: ami.bowen@copernicusmarketing.com 3
  • The Importance of Shopper Marketing“Shopper marketing’s potential is rooted in itsfocus on gathering insights about shopperswhen they are in the shopping mode andapplying these insights to influence theirpurchase decision.” 4
  • Multiple Stakeholders use – and benefit from – Shopper Insights:  Assortment Strategy  Merchandising Retailer/ Customer Distribution Strategy  Category Account-Specific Brand Shopper Sales/ Account Management Marketing IMC Marketing Insights Team  Selling Stories  Promotional Strategy Agencies  Marketing Mix (incl. Shopper Marketing)  Creative Development 5
  • Consumers and Shoppers are often different groups, requiring different marketingstrategies. Consumers Shoppers How, when, where, why How, when, where, why shoppers Focus: consumers use/consume the shop/buy the category category Consumer Insights Shopper Insights Primary Brand Marketing Shopper Marketing End User: R&D Sales/Account Teams In-store, Key Marcomm Path-to-Purchase influencers/ End Uses: Innovation tactics 6
  • Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey 7 7
  • Identify the Most Profitable Shopper Develop a Meaningful, Actionable Shopper Segmentation CREATE Hundreds of Variables TEST 1. Decision-Making To identify Power characteristics of 2. Attributes Desired in shoppers who Store Experience, offer high PRODUCE Product Category 3. Purchase Process/ opportunity: Optimal Channel Preference  Decision-making Shopper 4. Shopping Habits Power Segmentation 5. Demographics/  Market Basket: Framework Psychographics Currently and 6. Links to Household Potentially Panels 7. Links to Shopper Card  “Openness” to Databases Brand, Retailer 8. Links to Marketing Databases 8
  • Identify the Most Profitable Shopper In a Television Study, Five Unique Shopper Segments Emerged… Techies Impulsives Sponges Settled Aspirers Different Decision-Making Power Different Economic Value Different Demographically Different Attitudinally and Psychographically Different Attributes Desired Different Media Habits Very Different in Shopping Process Very Different in Channel Preferences 9
  • Identify the Most Profitable Shopper Shopper segments are distinct in terms of their “value” to manufacturer and retailer… Likelihood to Buy Potential ROI 27% % of Buyers % of Revenues 21% 16% 22% 11% 44% 9% 19% 16% 27% 18% 15% 25% 9% 7% Techies Impulsives Sponges Settled Aspirers 10
  • Identify the Most Profitable Shopper Shopper segments also are different in the ways to capture this “value” Techies Impulsives Sponges Settled AspirersSearch Involved In & Out (Instant Involved Uninvolved UninvolvedProcess: (DIY) Gratification) (Fact-Finding) (Simple) (Deal Seeker) Online,Channels: High-End Big Box Stores Big Box Stores Mass Merch. Mass Merch. Electronics Specs,Touchpoints/ Displays, Salespeople “Push,” WOM, Deals/ Promotions, Ratings &Influencers: Demos Collateral Materials EDLP Payment Terms Reviews 11
  • Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey 12
  • Why focus on Shopping Occasions? People are busier than ever Pre-trip planning is up 62% Of shopping trips are occasions-based (buying with occasion in mind) 13
  • The key dimensions in defining a shopping occasion: Mission Why they shop? Location Where they shop? Navigation How they shop? 14
  • Understand the Occasions When They Buy The Shopping “Diary” 15
  • When probing on occasions, be very thorough in your line-of-inquiryWhen: Pre-Trip: In-Trip: Post-Trip: Day of week?  What “drivers” started the  Where did you go first,  Did you register any shopping process? second, third, etc.? products? Time of day?  What sources did you  What did you consider  Did you tell anyone (face- consult? buying, at each stop? to-face and/or via socialWho: networks)?  Did you make a list?  How long did you spend in Who were you with? each section?  Did/will you review the  Did you talk to friends, product?Why: family, colleagues, about  Key in-store influencers it? during trip? What attributes and benefits  Touchpoints most receptive are you looking for from the to? store and/or specific products?  Decision-making processWhere: at shelf? Channels, Retailers, Websites 16
  • Then use this data to develop an insightful, actionable segmentation ofoccasions Collect data on severalrecent shopping occasions X ~2,000 respondents = ~6,000 shopping occasions via diary (or mobile app) Occasi Occasi on 1 on 2 Occasi on 3 Who? Who? What? Who? What? What? When? When? Etc… When? Etc… Etc… Segment into 5-10 shopping “typologies” based on trip mission, location, and navigation. 17
  • Shoppers experience many different types of shopping occasions Frequent InfrequentJust In Weekly Dash for Treasure Stock Up Special Treat Time Replenishment Deals Hunt Different on:  Sizing (opportunity)  Trip mission (needs/drivers)  Location (channels)  Navigation (shopping behaviors/process) 18
  • The occasion will be different in terms of sizing and opportunity It is imperative for Shopper Marketing to understand these occasions: Frequent Infrequent Just In Weekly Dash for Treasure Stock Up Special Treat Time Replenishment Deals Hunt% of Trips 28% 24% 20% 9% 11% 8% % Spent 17% 33% 12% 17% 8% 13% High Frequency Low Frequency High Frequency High Frequency Low Frequency Low Frequency Moderate Moderate Low Spending High Spending High Spending High Spending Spending Spending 19
  • The different types of occasions will cater to different shopper missions MISSION Just In Weekly Dash for Stock Treasure Special Time Replenishment Deals Up Hunt Treat Infrequent: No Infrequent:When: Last Minute Weekly Weekly Monthly Set Pattern Quarterly Why: • Immediate • Fill cupboard/ • Take • Stock-Up on • Browsing for • Treat self to need due to cabinet for advantage of key staples entertainment special out-of-stock week, get hot deals value products items on listNeeds: • Store located • Product variety • Special • Staple goods • Enjoyable • Prestige close to home • Reasonable promotions • Bulk sizes shopping brands • Easy-to-find prices • Accepts experience/ • Personal • Low prices/ environment item(s) • One-stop manufacturers Value selling • Get in/out shopping coupons • Unique, hard- • Ability to quickly to-find items sample/try • Convenient store layout 20
  • The different types of occasions will occur in different channelsL O C AT I O N Just In Weekly Dash for Stock Treasure Special Time Replenishment Deals Up Hunt Treat Drugstore Grocery Grocery Club Store Mass Merch Department C-Store Supercenter Dollar Store Online Store Specialty Retailer 21
  • The occasions also will be distinct in terms of the way shoppers navigate the Path-to-PurchaseN AV I G AT I O Pre-Trip In-Trip Post-TripN (Before shopping) (In-store) (After shopping) Perimeter and in-aisle Make List Weekly Shopper card Review circularsReplenishment Online research (product Loyalty programs specs, prices, etc.) Coupons Features, displays, TPRs, sampling Oh shit! In and Out Just In Time 22
  • By understanding what shoppers do inside the store, you’ll know what in-storecommunications vehicles are optimal during each occasionNavigation What In-Store Communications Work? The “Last 3 Feet”  = Shelf talkers  = In-store TV  = Circulars  = Displays  = In-cart ad  = QR Codes  = Sales Associates 23
  • Specifically, it is important to understand the shopper marketing tactics and/orprograms that are influential during each step of the path-to purchase. Pre-Trip: In-Trip: Post-Trip:  Advertising  Displays  Check-Out/Bounce-Back Coupons  Circulars  Signage  Rebate Programs  Digital  Sampling  Product Registration  Direct Mail  Manufacturers Coupons  Loyalty/Shopper Card Programs  Packaging/On-Pack  Customer Ratings and Reviews  Promotions  In-Pack Offers  Retail-tainment  Sales Associates 24
  • Mobile devices have changed the path-to-purchase 30% of US adults now have a 50% of US adults now tablet. Of these, 75% say have a smart phone. 70% they use it to “browse and shop for products.” Of these, 38% say they use it “to compare prices while in a store.”Have used a smart phone while shopping in store:77% at beginning of trip It isn’t about cardboard displays anymore – you need to61% in the middle of trip accommodate the way shoppers behave now, and that means in stores and on-line. Dina Howell43% at the end of trip CEO Saatchi & Saatchi 25
  • As a result, nowadays, mobile devices are being utilized throughout the path-to-purchase Pre-Trip In-Trip Post-Trip Mobile Advertising Mobile Coupons Entertainment Registration and Search QR Codes Loyalty Price Comparison Location-Based Apps, such as: Social Media Store Locator Shopkick Deals and Offers Foursquare 26
  • The “Shopper Landscape”Overlaying the Shopping Occasions onto the Shopper Segmentation provides a“shopper landscape”… and insights into specific shopper marketing opportunities. Shopper Segment Just in Time Weekly In each “cell”: ReplenishmentShopping  Category $Occasions Dash for Deals  Channels Used Stock up  Key Influencers/ Touchpoints Treasure Hunt Special Treat 27
  • The “Shopper Landscape”Importantly, we can analyze each retailers’ opportunities using the “Shopper Landscape”  Where are they getting a good share of the buying?  Where are the growth opportunities?  What product portfolio/assortment is needed?  And, by omission, which products/brands are less needed?  What shopper marketing tactics should be employed? Retailer X’s Current Sales Dollars Movable to Retailer X Shopper Segmentation Shopper Segmentation Seg 1 Seg 2 Seg 3 Seg 4 Seg 1 Seg 2 Seg 3 Seg 4 Just in Time $$$ $$$$ $ Just in Time $$$ $$$$ $ Shopping Occasions Weekly $ Shopping Occasions Weekly $ Replenishment Replenishment Dash for Deals $$ $ Dash for Deals $$ $ Stockup $$$ $ Stockup $$$ $ Treasure Hunt $ $$$ Treasure Hunt $ $$$ Special Treat $ $$ Special Treat $ $$ 28
  • Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey 29
  • Two Ways to Identify the “Moments of Truth”Ethnographies and shop-alongs are the most common way to understand the “Shopper Journey.”A more novel approach:Co-Creation Sessions: Ethnographies, ShopalongsBring together in a “workshop”shoppers and marketers/agencies: To further flesh-out the Shopper Journey “Co-Creation Sessions” To enlighten marketers as to how I REALLY shoppers really talk and how they HATE IT WHEN… really feel. I REALLY WISH THAT… To brainstorm ways to better align the brand and experience with shopper needs, lifestyles, etc. COULD YOU MAKE IT SO THAT… 30
  • Isolate the Moments of Truth 31
  • Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey  Integrate Shopping and Consumption Occasions 33
  • Enlightened clients understand the “link” between shopping occasionsand consumption occasions Shopping Consumption Missions Occasions (why they (why they use) shop) Need to understand the intersection 34
  • You should try to connect the consumption occasion and shopping mission Size the “cells” in grid below, and identify key products purchased/consumed Consumption Occasions Breakfast Lunch Snack Dinner Winddown Immediate Need $ $ $$ $$$$ ReplenishmentShopping Occasions Regular $$ $$ $ $$$ $ Immediate Need Dinner = Easy Meal Solution:  Mom shopping for products for tonight’s Long-term family dinner. Stock-up $ $$$ $ $  Low/no preparation required.  Meal whole family enjoys.  Total meal solution Browsing $ $$ 35
  • By understanding the underlying need and “market basket” during these occasions,retailers and manufacturers can develop powerful shopper marketing tactics andprograms (e.g., cross-promotions) Identify Need: Conduct Market Basket Deliver Shopper-Centric Analysis: Solution Easy Meal Solution Buy Frozen Pizza or Rotisserie Chicken, Get Free 2-Liter Soda Sources:  Retail POS  Homescan Panel Data  Shopper Card Data  Survey Data 36
  • ConclusionsShopper Marketing is increasingly complex: there are so many optionsTo develop an effective and efficient strategy:  Have a clear – and profitable -- target shopper in mind  Identify -- and value -- the different occasions on which they shop and buy  Understand the shopper “journey” and key “moments of truth”  Leverage the right touchpoints throughout the shopping process 1. Who? 2. When? 3. Where 4. How? 5. For What? 37
  • Conclusions The Key to Success Shopper Segment Just in Time Weekly In each “cell”: ReplenishmentShopping  Category $Occasions Dash for Deals  Channels Used Stock up  Key Influencers/ Touchpoints Treasure Hunt Special Treat Understand the + Offer a relevant + At key “Moments = Increased foot “Shopper solution to of Truth” in traffic and market Landscape” shoppers their Journey baskets 38
  • Understanding shopper occasions benefits all key stakeholders: a win-win-win Better shopping Shopper experience Increased brand Manufacturer/ Increased foot trafficpurchase and loyalty Brand Retailer and market baskets 39
  • Jeffrey Maloy, Senior Vice President (203) 831-2375 Jeff.Maloy@copernicusmarketing.com