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Transformational Shopper Marketing Strategy
 

Transformational Shopper Marketing Strategy

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In this presentation, Peter Krieg offers five ideas to shopper marketers for improving the effectiveness of their shopper marketing programs.

In this presentation, Peter Krieg offers five ideas to shopper marketers for improving the effectiveness of their shopper marketing programs.

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    Transformational Shopper Marketing Strategy Transformational Shopper Marketing Strategy Presentation Transcript

    • TransformationalShopper Marketing Strategy March 13, 2012
    • Who Am I Peter Krieg President & CEO Copernicus Marketing Consulting and Research President & CEO Copernicus Marketing Consulting and Research Author 3 books and numerous articles on marketing and improving business performance. Obsession Helping clients achieve transformational results 2
    • PETER KRIEG, President & CEO (203) 831-2373 Peter.Krieg@copernicusmarketing.com
    • The New Marketing Landscape  Off-line Media  Multiple devices  Digital Campaigns  Multiple Channels  Social Media  Digital Out-of Home  Mobile Strategies  In-Store networks  Websites/Micro-sites All converging into single “Cloud” All changing daily Producing Thousands of Ways to Make (and Squander) Money 4
    • What are “Shopper Insights”? Field Guide 1. Who is “the Shopper”? 2. Where is his/her nest and territory? 3. How does s/he roam in her territory and when is she vulnerable? 4. When and Where does s/he go when she’s ready to eat? 5. What traps will ultimately snare him/her? 5
    • What are “Shopper Insights”? Field Weaponry  Media Strategy  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy 6
    • 1. Who is the Shopper? Many studies segment users More studies should be done among purchasers  Certainly the right approach for product  Certainly better for marketing and and portfolio planning communications planning 7
    • 1. Who is the Shopper? Develop a Meaningful, Profit-Directed and Actionable Segmentation CREATE Hundreds of Variables 1. Category TEST Involvement 2. Attributes Desired in To identify Product Category characteristics PRODUCE 3. Purchase Process/ Optimal Channel Preference of people who are profitable Segmentation 4. Demographics 5. Links to Media Habit for your Panels BRAND 6. Links to Household Panels 7. Links to Marketing Databases 8
    • 1. Who is the Shopper? In TV Study, Five Segments Emerged… Scientific Impulsive Calculating Accommodating Frustrating Different Demographically Different Attributes Desired Very Different in Shopping Process 9
    • 1. Who is the Shopper? Using “predictive” characteristics to define segments leads to clear targeting. Likelihood to Buy Client Brand Potential ROI % of Client’s 17% % of Buyers Potential Business 22% 11% 44% 19% 6% 4% 16% 3% 27% 18% 10% 25% 9% 10% 10
    • 1. Who is the Shopper? Identifying an actionable, and financially-optimal target affects everything you do.  Media Strategy  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy 11
    • 2. Where is his/her nest and territory? By having “links” to databases, can easily track down the Shopper Media Marketing Customer Sales Households & Panels Databases Databases Prospecting Neighborhoods BEST BUY # 204 American X Idol ................ Y The Office….. X Y Dancing with Stars…... X Y Etc. • Algorithms to • Algorithm to • Algorithms to • Easy-to-use  Algorithms to identify classify every classify client’s classification identify high segments in household in customers tools (and density zip U.S.A. “scripts”) for codes MRI, Simmons and Carat’s CCS sales associates to use. 12
    • 2. Where is his/her nest and territory? Proper linkage to databases affects:  Media Strategy  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy 13
    • 3. How does s/he hunt and when is s/he most vulnerable? The Shopper “Journey” 1. What triggered the search/shopping? The Inspiration 2. Marketing “Touch points” Experienced – Other “Influencers” consulted? The Exploration 3. Receptivity Analysis – “Moments and Mindset”? (“Learning”) – Underlying motivations? 4. Is the “Journey” ever aborted? When? Why? The Execution 5. Which brands “survive” each step? (“Shopping”) – When is brand decision made? – Before store or at store? The Post Mortem 6. “Advocacy” at the end? (“Post-tailing”) – For which brands? 14
    • 3. How does s/he hunt and when is s/he most vulnerable? Qualitative Approach Quantitative Approach (Ethnography) (Diary) Pros Pros  Deeper understanding  Can quantify ROI of specific information  Effective to show to marketers  Validity Cons Cons  Validity?  May need qualitative is pre-requisite 15
    • 3. How does s/he hunt and when is s/he most vulnerable? Ethnography Example: Paint Study Catalyst Talk to friends Info Search… See TV show If plan to for a “look,” style, etc. Read magazine Web search use same contractor/d ecorator/ Consult Visit ANY Store: designer Decorator/Designer First Pass at Color Choice Screen/Select Contractor Review fan decks from Visit paint store - contractor Contractor/decorator of desire may/may not suggest • Get color samples • May be same decks as earlier • Talk to sales associate Wait for job to start. During this time: • Show color preferences to friends and spouse • Match color to drapes, rug, etc. (or visa versa) • Possibly, expand project Back to store • Get more samples • Talk to SA again Do painting 16
    • 3. How does s/he hunt and when is s/he most vulnerable? Diary/Survey Example: TV’s % Single Exposure Looked at Client Brand in stores only 24 Saw/Heard/Read Advertising only 6 Visited website only 3 Double Exposure Different Saw/Heard/Read Ad + Looked in stores 19 Types of Saw/Heard/Read Ad + Visited website 3 Exposure Looked in stores + Visited website 6 Triple Exposure Saw/Heard/Read Ad + Looked in stores + Visited website 15 17
    • 3. How does s/he hunt and when is s/he most vulnerable? Diary/Survey Example: TV’s Effect of Type of Exposure on Probability of Purchasing 47%Store exposure = Big Impact 44%Web exposure = Modest Impact 34%Ad exposure = Small Impact 27% 6% Ad only Store only Store + Ad Store + Web Store + Web + Ad Level of Exposure to Client Brand 18
    • 3. How does s/he hunt and when is s/he most vulnerable? Ability of Advertising to Drive People to Web/Store Saw Client Ad Total Yes No (100%) (34%) (66%)  Ads DO drive people to look more closely Visited Client Website 24 34 17  But, does it drive enough Saw Client Product in people to pay out? Store 43 54 34 19
    • 3. How does s/he hunt and when is s/he most vulnerable? Don’t forget to enlist some Shoppers to be Sellers/”Advocates” “Brand Advocates” are a small, but highly engaged and influential, group of customers  Typically representing 5-10% of the customer base  A strong emotional connection with—and affinity for—your brand. Like they work for you. Yesterday Today Yesterday Today They have always been valuable because they are influential. But they are much more so today because of their reach, the speed with which they can influence, and the tools at their disposal to influence.  Can “drive” for 20% to 30% of total sales 20
    • 3. How does s/he hunt and when is s/he most vulnerable? Understanding of Shopper’s Journey affects:  Media Strategy  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy 21
    • 4. Where does s/he go when she’s ready to eat? So many products can now be purchased in so many different places! Share of Purchases at Retail Channels Supermarket 21% 27% 46% 41% Mass Merchandiser 60% 17% 63% 12% 77% 75% 1% 1% 3% Super Center 8% 14% 14% 1% Warehouse/Club 2% 13% 42% 11% 11% 13% 1% 43% 1% Drug Store 2% 1% 6% 1% 6% 1% 20% 25% 0% 11% 14% 26% Specialty Store/Other 14% 4% 5% 5% 16% 6% 9% 3% 3% Food Beverages Cleaning Paper Pet Food Personal Care Health Care Beauty Care Products Products Products 22
    • 4. Where does s/he go when she’s ready to eat? You’re P&G: You WANT him/her to buy everything! 23
    • 4. Where does s/he go when she’s ready to eat? Inputs to Occasion Segmentation 24
    • 4. Where does s/he go when she’s ready to eat? Segmentation of Shopping Occasions 4 Recent Occasion #1 Occasion #2 When: _________ Occasions Where: ________ Occasion #3 When: _________ Needs: ________ Occasion #4 when bought Where: ________ When: _________ WithNeeds: ________ who:_______ Where: ________ personal care When: _________ Buy With who:_______ Personal Care:_______ Needs: ________ Where: ________ X 2,000 Respondents = 8,000 Total “Occasions” What brand:________ Buy WithNeeds: ________ Personal Care:_______ who:_______ products What brand:________ Buy With who:_______ Personal Care:_______ What brand:________ Personal Care Prod:_______ What brand:________ Cluster Analysis of Occasions 2. “Social Splurge 3. “Spontaneous 4. “Great Sale 5. “The Drug 6. “Personal Care 1. “Weekly Shop” & Spoil” Browse” Trip” Stop” Trip”       25
    • 4. Where does s/he go when she’s ready to eat? % of All Key Categories Personal Care % of All Purchase Personal Key Skin Oral Occasions Care $ Channels Shampoo Care Care Fragrance Etc.Weekly Shop 30% 14% Supermarkets  Social Splurge &Spoil 13% 19% Mass/Club SpontaneousBrowse 9% 9% Mass  “Great Sale!” Trip 9% 9% Supermarkets The Drug Stop 16% 20% Drug  Personal Care Trip 23% 29% Mass/Drug   26
    • 4. Where does s/he go when she’s ready to eat? Understanding of purchase occasions affects:  Media Strategy  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy 27
    • 5. What traps will ultimately snare him/her? What In-Store Communications Work? The “Last 3 Feet”  = Shelf talkers  = In-store TV  = Circulars  = End-aisle dump  = In-cart ad The “First Moment of Truth” 28
    • 5. What traps will ultimately snare him/her? Another kind of “store” to Navigate 29
    • 5. What traps will ultimately snare her? Illustrative Case The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers High Low Spend Spend On-Line On-LineFeatured “Deals”   New Product Features  “Compare” Tool Return Policy  Store Locator/Interaction Customer Service Hotline  Breadth of Selection  Customer Reviews 
    • 5. What traps will ultimately snare her? Deep understanding of the “last few feet” will affect:  Media Strategy (In-Store)  “Scale”/Cross-Selling Programs  Website  Promotion Strategy  Assortment  Packaging Strategy  Messaging Strategy  Shelf Sets  Sales/Customer Strategy
    • In Sum Marketing is increasingly complex. The best approach is to follow—and continually entice—the consumer. It all starts with identifying financially-optimal, and actionable, target.1. Who? 2. Where? 3. How? 4. When? 5. What? 32
    • Mark Your Calendars! Wednesday, April 25, 2012 On-Line Shopper Typologies: Segmenting Your Web Channel UsersEric PaquetteSenior Vice PresidentCopernicus Marketing Consulting and ResearchRegister Now: copernicusmarketing.com/webcastsWednesday, April 25, 2012
    • Call or Write If You….. • Would like a PDF of this presentation • Our white paper on the topic • Have questions about this presentation or Copernicus Send an email to: ami.bowen@copernicusmarketing.com 34
    • PETER KRIEG, President & CEO (203) 831-2373 Peter.Krieg@copernicusmarketing.com