Mission Possible:                 Profiling Shopping Occasions for                   Retail and Channel PartnersJeffrey Ma...
Who Am I?Jeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting & ResearchLeading our CPG practiceFormer Direct...
SWAG!            Get and Share ideas for            developing a transformational            shopper marketing strategy…. ...
The Importance of Shopper Marketing“Shopper marketing’s potential is rooted in itsfocus on gathering insights about shoppe...
Multiple Stakeholders use – and benefit from – Shopper Insights:                                                          ...
Consumers and Shoppers are often different groups, requiring different marketingstrategies.                        Consume...
Three Things You Can Do     Identify the most profitable shoppers                                                ? ?     ...
Identify the Most Profitable Shopper             Develop a Meaningful, Actionable Shopper Segmentation                    ...
Identify the Most Profitable Shopper           In a Television Study, Five Unique Shopper Segments Emerged…          Techi...
Identify the Most Profitable Shopper  Shopper segments are distinct in terms of their “value” to manufacturer and retailer...
Identify the Most Profitable Shopper               Shopper segments also are different in the ways to capture this “value”...
Three Things You Can Do     Identify the most profitable shoppers                                                ? ?     ...
Why focus on Shopping Occasions?       People are busier than ever       Pre-trip planning is up                     62%  ...
The key dimensions in defining a shopping occasion:       Mission     Why they shop?       Location    Where they shop?   ...
Understand the Occasions When They Buy  The Shopping  “Diary”                                  15
When probing on occasions, be very thorough in your line-of-inquiryWhen:                               Pre-Trip:          ...
Then use this data to develop an insightful, actionable segmentation ofoccasions  Collect data on severalrecent shopping o...
Shoppers experience many different types of shopping occasions      Frequent                                              ...
The occasion will be different in terms of sizing and opportunity   It is imperative for Shopper Marketing to understand t...
The different types of occasions will cater to different shopper missions MISSION             Just In          Weekly     ...
The different types of occasions will occur in different channelsL O C AT I O N      Just In       Weekly         Dash for...
The occasions also will be distinct in terms of the way shoppers  navigate the Path-to-PurchaseN AV I G AT I O        Pre-...
By understanding what shoppers do inside the store, you’ll know what in-storecommunications vehicles are optimal during ea...
Specifically, it is important to understand the shopper marketing tactics and/orprograms that are influential during each ...
Mobile devices have changed the path-to-purchase                                 30% of US adults now have a         50% o...
As a result, nowadays, mobile devices are being utilized throughout the path-to-purchase             Pre-Trip             ...
The “Shopper Landscape”Overlaying the Shopping Occasions onto the Shopper Segmentation provides a“shopper landscape”… and ...
The “Shopper Landscape”Importantly, we can analyze each retailers’ opportunities using the “Shopper Landscape”           ...
Three Things You Can Do     Identify the most profitable shoppers                                                ? ?     ...
Two Ways to Identify the “Moments of Truth”Ethnographies and shop-alongs are the most common way to understand the “Shoppe...
Isolate the Moments of Truth                               31
Three Things You Can Do     Identify the most profitable shoppers     ? ?                                                ...
Enlightened clients understand the “link” between shopping occasionsand consumption occasions                  Shopping   ...
You should try to connect the consumption occasion and shopping mission                     Size the “cells” in grid below...
By understanding the underlying need and “market basket” during these occasions,retailers and manufacturers can develop po...
ConclusionsShopper Marketing is increasingly complex: there are so many optionsTo develop an effective and efficient strat...
Conclusions                                                                          The Key to Success                   ...
Understanding shopper occasions benefits all key stakeholders: a win-win-win                                              ...
Jeffrey Maloy, Senior Vice President     (203) 831-2375       Jeff.Maloy@copernicusmarketing.com
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.

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Mission Possible: Profiling Shopping Occasions for Retail and Channel Partners

  1. 1. Mission Possible: Profiling Shopping Occasions for Retail and Channel PartnersJeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting and ResearchMarch 21, 2013
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. The key dimensions in defining a shopping occasion: Mission Why they shop? Location Where they shop? Navigation How they shop? 14
  15. 15. Understand the Occasions When They Buy The Shopping “Diary” 15
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. 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 $ $$ 28
  29. 29. Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey 29
  30. 30. Two Ways to Identify the “Moments of Truth”Ethnographies and shop-alongs are the most common way to understand the “Shopper Journey.”A more novel approach:Co-Creation Sessions: Ethnographies, ShopalongsBring together in a “workshop”shoppers and marketers/agencies: To further flesh-out the Shopper Journey “Co-Creation Sessions” To enlighten marketers as to how I REALLY shoppers really talk and how they HATE IT WHEN… really feel. I REALLY WISH THAT… To brainstorm ways to better align the brand and experience with shopper needs, lifestyles, etc. COULD YOU MAKE IT SO THAT… 30
  31. 31. Isolate the Moments of Truth 31
  32. 32. Three Things You Can Do  Identify the most profitable shoppers ? ? Sunday Monday Tuesday Wednesday Thursday Friday Saturday  Understand the occasions when they buy  Isolate the “moments of truth” in their Shopper Journey  Integrate Shopping and Consumption Occasions 33
  33. 33. Enlightened clients understand the “link” between shopping occasionsand consumption occasions Shopping Consumption Missions Occasions (why they (why they use) shop) Need to understand the intersection 34
  34. 34. You should try to connect the consumption occasion and shopping mission Size the “cells” in grid below, and identify key products purchased/consumed Consumption Occasions Breakfast Lunch Snack Dinner Winddown Immediate Need $ $ $$ $$$$ ReplenishmentShopping Occasions Regular $$ $$ $ $$$ $ 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
  35. 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
  36. 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
  37. 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
  38. 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
  39. 39. Jeffrey Maloy, Senior Vice President (203) 831-2375 Jeff.Maloy@copernicusmarketing.com
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