56. WHAT ARE WE SELLING?
@ GlacierIE #shopperdna KEN HUGHES
57. BRAND AS AN ‘EXPERIENCE CONDUIT’
HOW DO WE USE OUR BRANDS TO DELIVER THE KIND
OF LIFE EXPERIENCES THIS GENERATION EXPECT?
EXPERIENTIAL VALUE
@ GlacierIE #shopperdna KEN HUGHES
118. n=
164
Shopper Marketing is less resourced
than Category Management
How many Full
Time Equivalents?
%
29
119. n=
164
Category Management role still mostly
traditional functions of space
planning, planograms and research.
What functions
does Category
Management
conduct?
21% of Manufacturers,
31% of Retailers
not doing Space &
Range planning.
%
92
92
63
75
63
33
46
38
12
46
42
8
25
120. n=
164
Category Management is rated to be
more mature in organisations than
Shopper Marketing
Rate the maturity
of CM / SM in your
organisation?
CM 7
32
18
10
33
40
41
SM
16
Shopper
Marketin
g
Category
Manageme
nt
%
121. n=
164
Analysis & Evaluation is the biggest
training gap
Does your
company have
need for training?
122. n=
164
No Big Problems!
But Problems in Shopper Marketing are
biggest.
Not a Rate your Problem Big Problem
Company on
Scale 1-7
“Skills gap in
Leading &
Driving”
integration
“International
, not local”
123. n=
164
More problems in Shopper Marketing in
Ireland also. Number of Staff however
biggest problem with Implementation 2nd.
Rate your Ireland
Not a Problem Big Problem
Company on
Scale 1-7
124. n=
164
Category Management gets measured
more.
Which of the
following does your
company use to
evaluate?
%
Only 30% CM
projects
measure Ease
of Shop /
Shopper
Satisfaction and
31% of SM
projects do.
125. n=
164
Category Management also gets measured
more than Shopper Marketing in Ireland
but most criteria measured less than Europe.
Which of the
following does your
company use to
evaluate?
Ireland
Lower
than
Europe Only 25% CM
projects
measure Ease
of Shop /
Shopper
Satisfaction and
22% of SM
projects do.
126. n=
164
Success of Projects rated average
- regardless of size of company or if
retailer/manufacturer.
Below Expectations Overall, how Above Expectations
would you rate
your success?
127. n=
164
We’re not yet geared up
for the growth in Online…
• 1 in 5 Category Managers
conduct Online Shelf Management.
• 19.3% of Manufacturers
• 22.2% of Retailers
• Below average scores :
Strongly
Disagree
Strongly
Agree
Kantar predicts global
FMCG Online will be
5.2% of sales by 2016
from 3.7% currently
Kantar press release
2.3
3.0
2.6 June 2014
Ireland
1
in
4
128. n=
164
A degree of optimism that things are
improving… and both Manufacturers and
Retailers agree.
Strongly Disagree Strongly Agree
129. n=
164
Irish less optimistic than Europe
- and Manufacturers and Retailers* differ
Strongly Disagree Strongly Agree
Ireland
*Low Base
Retailers
130. n=
164
Mostly, Irish findings same as Europe
though numbers differ.
Vs
• We’re less optimistic that things are improving.
• We’re lower resourced in both SM and CM
- hence it is a bigger problem than Retailer
Implementation which is top European problem.
(no 2 in Ireland)
• Irish Category Managers do less Macro space
planning, Promotion planning, Forecasting.
• We’re more confident about out project success.
131. n=
164
Number of Staff biggest problem now in
Ireland, ahead of Retailer Implementation
Ireland
2012
Ireland
2013
Ireland
2014
Europe
2014
Category Management:
FTE’s 0 - 2 - 43% 79% 47%
Biggest Problem Retailer
Imp.
Retailer
Imp.
Number of
Staff
(R. Imp. #2)
Retailer
Implementation
Optimised 27% 19% 8% 10%
Shopper Marketing:
FTE’s 0 - 2 - 62% 79% 55%
% not doing 16% 16% 21% 15%
Biggest Problem Retailer
Imp.
Retailer
Imp.
Number of
Staff
(R. Imp. #2)
Retailer
Implementation
Optimised - - 8% 7%
132. n=
164
Category
Management &
Shopper Marketing
Benchmark Survey
2014
Only 1 in 5
Category
Managers conduct
Online Shelf
Management.
70% of
CM and SM
Projects
don’t
measure
Customer
Satisfaction/
Ease of Shop.
7% of FMCG
companies don’t
have a Full Time
Equivalent in CM
and 15% don’t
have a SM FTE.
Only 10% say CM
is optimised in
their Company
and 7% say SM is.
Success of CM/SM
projects rated
average –
regardless of size
of company or if
retailer/
manufacturer.
133. n=
164
And Finally…
Aitäh
Cпасибо
Danke
Děkuji
Dziękujemy
Ευχαριστούμε
Go raibh máith agat
Grazie
Merci
Multumesc
Paldies
Teşekkür ederim
Thank You
A big Thank You to all those
who completed this survey for
ECR Europe.
We hope you’ll agree it
provides useful insights on
Category Management and
Shopper Marketing in Europe
and it is of benefit to you and
your Company.
We plan to do this survey
annually to monitor trends.
Editor's Notes
DNA represents the building blocks of who we are, genetically. Its what makes us work and what makes us an individual
I am interested in how the consumer and shopper of tomorrow are going to have a fundamentally different DNA blue-print from any that have come before
This new consumer blue-print results in a consumer and shopper who think differently, act differently and expect different things, from both retailers and manufacturers
People keep asking what impact will technology have on our industry? People talk about omnichannel strategy and enabling technologies
The technology is just a catalyst to the change. An enabler. The actual changes are in the social and cultural norm shifts and consumer expectations
By focusing on the technology we perhaps are taking or eyes off the main attraction, these social and cultural shifts? (hump-back whale breaches off the shore in Baltimore Co Cork - 2012)
So today I want to talk about a few interesting trends that I think are going to effect the consumer and shopper expectations from our industry
So todays talk is going to look at the ‘Digital Native Advance’ and try and predict some fundamental changes and challenges this consumer and shopper of tomorrow may bring our industry
A Digital Immigrant is someone who was born in the 1970s or before, and has ADOPTED new technology. They have integrated it into their lives as opposed to being hardwired with it
A Digital Native is someone who has been born into this new world –a world where technology enables and connects. They were born in the 1980s and their real ‘core’ are currently becoming 30
While the theory states that a digital native is anyone born from 1980 onwards …
The sweet-spot in terms of real ‘digital native credentials’ for me are those born after 1985
This is because they were 12 in 1997, when Google was launched (by Larry Page & Sergey Brin).
Pictured Googles 1st production server
If Google was a Guy
There are a number of significant events that we mark with BEFORE and AFTER moments…
The effect Google has had culturally is one of them
Those born in 1997 and after are the AFTER GOOGLE generation, even more hyper connected than the original digital natives we know today. They are about to turn 18 and become a global consumer force
Today we rear an entire generation whose world is fundamentally different. How they interact with that world and what they expect from it
The world of tomorrow is theirs, but if we are to survive in it, if we are to future-proof our businesses, we need to have an understanding of what their expectations of this world will be
And don’t think for a minute that this is about future-gazing and predicting…
These changes are already happening now, not only for this next generation of shoppers and consumers, but also impacting on our current consumer franchise
But there are always step jumps and tipping points and I think the Digital Native onslaught is about to be one of those. Connection Step Jump >
Access Step Jump
Cultural Expectations Step Jump
So first let’s talk about CONNECTIVITY.
The internet has evolved what it stands for in terms of ‘connectivity’. First we had the INFORMATION SUPER-HIGHWAY. Internet 1.0 was really a one-way street of information
It was mostly brochure websites. eCommerce wasn’t a reality for most. Internet access was limited and sounded like this (play modem dial-up). It was desk-top based. It was a digital library
Then we moved to Internet 2.0
This moved us from a mainly one-directional ‘information flow’ to a two-directional ‘conversation’. But we are past that now too. What is Web 3.0?
The INTERNET is no longer a network of pages or sites. Its no longer something that you DO
Once the technology went mobile, this was the catalyst to behavioural change
Interestingly recent research has shown a drop in visibility at checkout due to smartphones
China – 1st mobile phone sidewalks in Chongqing
This hyper-connectivity and continuous connection brings about social and cultural changes and impacts on expectations – in their lives and loves to what brands they buy and where
Steve Jobs introducing WiFi to the world in 1999
This digital eco-system (as opposed to a ‘network’) present us with some challenges
Digital immigrants see these as two different things, natives see them as one reality, just different perspectives
Skype Sex predicament > Digital natives use it as standard. The connection is normal for them. Blurring of off-line and on-line realities > as satisfying for them as ‘intimacy’ – the ultimate litmus test?
It means that PATH TO PURCHASE no longer exists in a pure form. There is no PATH. The linear touch-points we once relied on are no longer as valid
It is becoming less and less about what you say about yourself (TV, radio, press, online, outdoor) and more and more about what others say about you
Their connectivity is absolute, permanent and trusted. Their perception of the world is seen through the lens of their digital interactions, not necessarily their physical ones
You have to plug yourself into the Eco-System. Be part of it not a ‘broadcaster’ within it
Just because a brand has a Facebook and Twitter page doesn’t mean it has a ‘connectivity’ strategy. It is just like the people who think having the tool for the job means you know how to use it – FB and TW are just connectivitiy tools – they are not connectivity strategies
Just because a brand has a Facebook and Twitter page doesn’t mean it has a ‘connectivity’ strategy. It is just like the people who think having the tool for the job means you know how to use it – FB and TW are just connectivitiy tools – they are not connectivity strategies
Play Clip – posted on You Tube
Nowhere is that more evident that in the You Tube tag line – “Broadcast Yourself”. An entire generation reared on the belief that the world is genuinely interested in what they have to say, about everything
The cultural phenomenon that is the “Haul Video” – buying so that you can tell others about the experience. Shopping as an experiential activity as opposed to a functional ‘purchase of items’
Over 2 million followers on Twitter and 12m views a month on You Tube
This generation seem to put more value on EXPERIENCES than material possessions. There has definitely been a shift away from absolute materialism and the new ‘status’ is what you’ve DONE not what you OWN
Their world has become more about People and Experiences, not ‘stuff’
This has implications for retailers and brands. It is the shopping EXPERIENCE they want, not necessarily the ‘stuff’ – our brands need to act as ‘experience conduits’
Generation me – its all about me – high expectations of themselves, others, products, retailers, employers
This generation believe the world revolves around them – personally. Map Metaphor: Do you remember when we all used to use these (roadmap). What was the first thing you had to do to be able to use it? (find where you were). Now the whole world revolves around them. THEY are at the centre. They no longer see themselves as ‘part of this world’. They see themselves as HEAD OF STATE
This is also seen in the ‘Selfie’ trend – It is ALL about ME
This is also seen in the ‘Selfie’ trend – It is ALL about ME
This generation want personalisation > They DEMAND it
This generation want personalisation > They DEMAND it
Our industry to date has not got its head around this enough. I think we need to do better. The same circulars in general. The same layouts. The same aisles.
You have to plug yourself into the Eco-System. Be part of it not a ‘broadcaster’ within it
The millennial generation shopper expects everything now – connection, information, delivery, a response, relationships. They don’t wait. PERIOD.
Ebay Now – delivery within an hour (cities). Google Shopping Express (San Francisco)
Amazon Drone
Amazon Drone
This has significant implications on the Supply Chains of the future
Low attention span – and lowering (primary school teachers). They don’t WAIT
This is not a sign that will be acceptable to the new shopper
The probability to disappoint these consumers is higher than normal – if it doesn’t work for them 1st time they won’t try again, they won’t wait ... Remember they want it NOW
Low attention span – and lowering (primary school teachers). They don’t WAIT
Culture changing from a TEXT based one to a VISUAL one. This has implications for our industry in terms of in-store and POS
However, the majority of POS is still cardboard. The majority of in-store communication still static. This needs to change
So this is too wordy and not visual enough as packaging for the next generation
While these new Dorito concept packs are simple, clear and are a strong visual on shelf
This world of hyper connected relationships also has brought about a bring us a culture of sharing - sharing my story, my experiences - this opens up an interesting attitude to material ownership
A generation into sharing – not only content but also products. Share their homes, rent their clothes, share their cars, their goods . The invisible sharing economy
The need to OWN stuff seems less strong for these consumers (from owning to ‘using when I need it’)
They seem not to really value content creation anymore – they believe they can have what they want when they want -
They value content less also as now everyone is a content PRODUCER as well – everyone is a photographer, a movie director, a song-writer > UJAM Make your own music, VINE 6 second movies ...
3D printing - they can not only create content, movies, songs, blogs but also physical products. Will this generation value PRODUCTS as much as the previous generations?
It seems to be that we have a break-down in the value chain. They don’t VALUE those MAKING and they don’t value the Supply Chain in terms of distribution or retailing. They don’t value ‘Marketing/Sales’ as they inherently only trust their collective consciousness … so where is the Value Creation?
It seems to be that we have a break-down in the value chain. They don’t VALUE those MAKING and they don’t value the Supply Chain in terms of distribution or retailing. They don’t value ‘Marketing/Sales’ as they inherently only trust their collective consciousness … so where is the Value Creation?
Brand I buy is important – 41% down to 35%
Like to buy all in one store – 73% down to 69%
Promo levels up by 1.5% to 33%, with TPR up from 17% to 22%
Combined share of 17%
Diet is Important to me – 71% up to 76%
Health – low sugar variants & government focus & free from etc.
