Shopper Marketing An Revolutionary Approach

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We\'ve applied Jobs Theory to create a new model for approaching Shopper Marketing by understanding the Shopping Moment in terms of the "jobs to be done" at the shelf. Different than understanding Needs, Jobs are insights into the Shopper\'s motivation to achieve progress in their lives.

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Shopper Marketing An Revolutionary Approach

  1. 1. Shopper Marketing: A Revolutionary Approach Using Job Theory and Disruptive Innovation to Expand Category, Brand, & Product Demand Generation at the Shelf A Collaboration of Research Consortium · Innomedia · One Vision
  2. 2. What Drives Shopper Marketing “We are moving beyond a transactional relationship into a strategic collaboration to improve shopper experiences and drive category and cross-category growth.” – Kimberly-Clark “When economic times get tough, the tough go in-store. The vague proposition of building brand equity through media advertising doesn’t hold a candle to actually selling more through better merchandising.” – Stephen Hoch, PhD Wharton School University of Pennsylvania “Shopper marketing will grow dramatically over the next few years. The big question is – are we making the best decisions?” – Health & Beauty Manufacturer 2 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  3. 3. Why the Store Matters Above All • Although still large, the effectiveness of mass media continues to decline • Result: In-store is what’s important since it is where the consumer becomes the shopper 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 American Weekly Super Bowl Weekly Weekly Idol Finale network TV viewers Walmart TV Viewers Shoppers Finale Weekly Viewers News viewers news shoppers Viewers viewers 3 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  4. 4. Evolution of Category Leadership Must Now Include Demand Generation Category Management Shopper Marketing Demand Generation 1990 1995 2009 Category Analysis 2000 2005 Management Paralysis Shopper- Retailer Shopper Driven • FMI: Category • Move from Customization Insights Solutions management templates to white paper consumer insights 4 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  5. 5. Demand Generation • The new approach to shopper marketing-driven Category Leadership is the Demand Generation process that influences traffic and transaction by shoppers • Focuses on shaping the future by understanding the “job of shopping” (i.e. Shopper Jobs Marketing) • Places emphasis on “discovery of shopper motivation” that includes not only the in-store environment but the consumer triggers in how they choose and select an outlet 5 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  6. 6. Shopper Jobs Marketing Provides The Platform To Drive Demand Generation For Shoppers For Retailers • • A place to learn about new items Where shoppers have enjoyable experiences • Where she can be sparked to try • something different A place of engaging ‘hot spots’ • • A place full of pleasant surprises With proven concepts, stores will improve sales and profits • Where shoppers can fulfill their job • requirements Where retailers can link in-home and in-store communications 6 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  7. 7. Shopper Jobs Are Part of a Comprehensive Solution to Demand Generation Step 3: Collaborate with Step 1: Opportunity Step 2: Demand Retailers Assessment generating shopper job labs •Strategy for upgrading shopper •Market landscape engagement •Forces for change •Co-design concept development •Leverage value of the store •Retailer input – objectives, •Simulation-based data collection •Sales plan priorities, barriers, opportunities •Creative and prototype •Preliminary demand creation model development Step 4: Activating Store- Step 5: Upgrading Client Ready Solutions Processes •In-market retail execution •Workshops & training 7 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  8. 8. Four Steps of Shopper Job Marketing 1. Job as Shopper Motivation • Why shop? • What do I feel is missing in the historical category equation? • What’s the reason to move forward & progress? e.g. – Upcoming situation challenges old choices 1 2. Job as Shopping Strategy 4. Job as New Outcome • How do I engage the shopping experience? • How will it work? • What is my shopping strategy? • Will I be satisfied? • What should I be looking for? • Do I need it now? 4 2 • How should I engage the shopping e.g. – Play time forward – visualize experience? consequences with “me” in the e.g. – Begin to narrow the choice set - based picture on historical beliefs 3 3. Job as Choice Decision • Which is best value? • Which one to choose? e.g. – Comparison-shop across adjacent price-tiers, based on “decision hierarchy” 8 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  9. 9. Shopper Job Labs Discovery Is Key to Developing Solutions that will Generate New Demand • Shopper job labs are micro simulators (one shopper at a time) that uncover concepts and the information necessary to reveal shopper motivations. Goal is to find concepts that have the greatest pull for change. • The figure below depicts the challenge of appreciating conflicting forces before finding new shopper concepts that will generate demand. Dynamics of New Shopper Choices Old New Habit Shopping Shopping Behavior 2 Forces Block Change 2 Forces Promote Change 1. Anxiety about how a new choice will 1. Magnetism of a new choice solution • Attraction of culturally relevant news work for me • Uncertainty surrounding a new choice 2. Push for a better situation through 2. The habit of the present shopping • The tug of historical allegiances • Problem solving to make it better 9 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  10. 10. Shopper Job Labs Are an Iterative Process of Continuously Improving a Solution to Effect Change in Shopper Behavior •Based on how shoppers actually make 1. Expose Shopper choices and is simulated in a research Concept setting ENVISION making it •Diagram depicts our process for work for me uncovering concepts in an iterative 2. Formulate My Job- manner that will create a step To-Be-Done Requirements & improvement in shopper engagement Information Gaps THINK to reduce 6. Refine & Innovate Shopper Job Labs Will Reveal: uncertainty Concept 3. Gather Information To support a •Concepts with greatest attraction and to Reduce Risk behavior change likelihood of effecting engagement FEEL Is it right for and new choice behavior me? •Shopper segments to focus on 4. Decide Whether to Buy •Information content that is necessary DESIRE to to effect change – educate and reduce Change 5. Commit and uncertainties Purchase •Media for effecting change – in-store ACT now and in-home and their connection 10 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  11. 11. Application of Shopper Jobs Approach 11 The contents of this presentation are the exclusive property of Research Consortium , Innomedia, Inc. and One Vision and may not be reproduced or used without their consent.
  12. 12. CASE 1: BABY PRODUCTS Project Mission: Create a New Store Hot Spot Situation Company’s infant toys were “lost in the toy department”. Could a case be made for co-locating the line of products in the Baby Department? Shopper Job Goals Develop a merchandising concept to change shopper behavior in 2 ways: 1. Build traffic in the Baby Department by giving target shoppers another reason to shop there 2. Build basket size by getting shoppers to add a toy to their purchases Method 1. Develop concept in Job Labs with shoppers (co-creation) 2. Use Job labs to simulate uplift in the value of the new shopping experience 3. Make the business case with a quantitative concept test. Measure how many shoppers would have changed the outcome of their last shopping trip, if “this store” had changed their “Baby Department” from “that “ (before) to “this” (after) 12
  13. 13. CASE 1: BABY PRODUCTS Job Labs Revealed Key Insights Which Led to Unique Demand Creation Concept 1. Desire/Motivation 2. Shopping Strategy 3. Point of Purchase Decision • Discovered 3 “very large” emotional • Target shoppers wanted to connect • While the toy brand was a powerful shopper job concepts: ‘Connecting’, the emotions surrounding one of endorser, the store had to stand up ‘Social Expression’, and ‘Nurturing’. these jobs to the store’s Baby and speak for the idea of putting toys Department and items sold there. in the department. The concept • Each was a significant opportunity for This called for “use segmentation”. needed a “merchant-dizing generating new demand from infant interface”. toys. • The Baby Department could use the toy introduction to signal a • Assortment strategies and layout • Over time, each had the potential to “department makeover”, so shoppers needed to be guided by a “solution be developed for incremental sales. would be attracted to something selling” mentality. Shoppers had to new in the store, not the same old be guided in how to assemble Baby Department. compelling job solutions. • The assortment needed to be continually refreshed, so shoppers would want to look it over “on every trip”. 13
  14. 14. CASE 1: BABY PRODUCTS New Job Labs Concept Validated in Quantitative Test by Demonstrating Incrementality 4. Commitment Results from subsequent Concept Test • 92% of target shoppers, who visited the baby department on their last trip, would consider the toys and not simply do what they did last time • 86% of shoppers could think of an upcoming use situation for toys that would give purpose to their shopping • 52% could assemble a “job solution” that included a toy • 38% increase in incremental sales versus what was spent last time by target shoppers in the baby department • 4.7 times a year – the number of times shoppers said they would be likely to make toy purchases in the store’s baby department on average • Implication • New toy sales would be incremental in both departments since the baby department calls for different demand creation “jobs” 14
  15. 15. CASE 2: DETERGENT Project Mission: To Maximize Success Of New Form Changeover Situation Company wanted to get a jump on its competition by collaborating with a key account to introduce a new form. The new form used a more concentrated formula. The new packaging would be much smaller but would have the same unit price. The lead account would distribute the new form ahead of competing stores. Shopper Job Goals Develop a merchandising concept to change shopper behavior in 3 ways: 1. Switch current buyers to the new form 2. Switch competitive buyers to the new form 3. Because the old form would still be available in other stores, get buyers of the new form to concentrate their category purchases in the lead off retailer Method 1. Develop concept in Job Labs with shoppers (co-creation) 2. Use Job labs to simulate uplift in the value of the new shopping experience 3. Make the business case with a quantitative concept test. Measure how many shoppers would have changed the outcome of their last shopping trip, if “this store” had changed their “product aisle” from “that “ (before) to “this” (after) 15
  16. 16. CASE 2: DETERGENT Job Labs Revealed Skepticism and Distrust; Concept Needed to Answer Questions 1. Desire/Motivation 2. Shopping Strategy 3. Point of Purchase Decision • Discovered that shoppers were on • Shoppers wanted to see the new • The aisle had to signal “something their guard about new forms that form side by side with the old form new has arrived” shrank the packaging, concentrated • Shoppers needed to get questions • Multiple “sources” of in-store the contents, and raised the unit answered: communications would be needed: price: “They’ve tricked us before” not just brand messaging (on shelf • Why the change is relevant for • Shoppers would need a way to build and on pack), but the retailer had to today’s consumers? up their trust in the new form play a role too • How to use the new form in ways • Job labs revealed the questions • Pricing was a critical variable that do not disrupt established blocking trial of the new form systems of use? • The concept used testimonials from users in the store’s community • How to be sure the results will be (people the shopper could identify as good as with the old form? with) – testimonials that illustrated • The benefits of switching to the very satisfying outcomes new form – rational and emotional? 16
  17. 17. CASE 2: DETERGENT New Job Labs Concept Validated in Quantitative Test 4. Commitment Results from subsequent Concept Test • 86% of target shoppers would look over the new section and not simply grab their usual brands from the old section of the aisle • 74% of shoppers would take the new package from the shelf and examine it • 62% would form a favorable opinion of the new form • 44% would prefer the new form to the old form at the stated price • 18% would only buy it only if it had a special offer as well • 78% of those who would purchase it said that “the innovation in the aisle would make me change where I usually shop for this category” Implication Without overcoming uncertainties, shoppers wouldn’t switch. Combating uncertainties could only be dealt with in the store. 17
  18. 18. Future Innovation Will Be Created Using New Processes 18

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