Shopper marketing for retail net group feb 17, 2011

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will Digital cause a revolution in Shopper Marketing?

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Shopper marketing for retail net group feb 17, 2011

  1. 1. The DigitalShopperMarketingREVOLUTIONJIM HOLBROOK FEBRUARY 16 DALLAS
  2. 2. Are you a revolutionary?
  3. 3. Are you a revolutionary? Should you be?
  4. 4. ↑  Retail designWe know that all of ↑  Retail learning labs ↑  Shopper marketing this is GOING ↑  In-store media ↑  Selling in and executing UP ↑  Shopper insights ↑  Retailer intelligence UP ↑  ROI/analytics ↑  Digital apps UP ↑  Geo-locating ↑  Augmented reality
  5. 5. CPG companies spent about $38 billion on Shopper Marketing in 2010 (In-Store Marketing Institute)Between 15% and 20% of CPG marketing dollars are earmarked for Shopper Marketing83% of CPG companies will increase shopper marketing budgets55% will boost spending 15% or more by 2013 (Booz & Co.)
  6. 6. WE ARE INTHE MIDST OF ARETAILREVOLUTION 6 
  7. 7. Here’s Why: The 10 WaysDigital Changes Everything 7 
  8. 8. 1There is no more ‘IMPULSE’…every purchase is considered 8 
  9. 9. Marc Pritchard, P&G’s CMO, Jim Lecinski of Google,calls for thinking refers to a "zero“store back”, moment of truth"meaning that if it where consumersdoes not work at BUT do research andthe store, it’s a make decisionsmiss (FMOT) during search prior to shopping 9 
  10. 10. of shoppers conduct research before they shop, typically for an hour of more.Source: GMA, Booz & Company, and SheSpeaks Shopper Marketing 3.0 Survey; n = 3,600 respondentsSource: Google ‘Path to Purchase Presentation’
  11. 11. More Purchase Decisions Being Influenced Pre-Store Where Purchase Decisions Are Made, % of Shoppers 100% 90% 80% 70% 60% 75% 60% 83% 50% 40% 30% 20% 40% 10% 25% 17% 0% 2007 2008 2009 In-Store Before Entering StoreSource: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.Source: Google ‘Path to Purchase Presentation’
  12. 12. “Kraft recognized that shoppers were goingonline prior to their trip to the store to findinformation and that we needed to leverageThe digital space as part of a robust 360degree marketing plan.”-  Microsites-  Online coupons-  Recipes-  Online promotions-  Shopping lists-  QR codesAs the prevalence of smartphones grows, more tools willbecome available to connect with the shopper in the pre-trip,in-store and post-purchase phases. The future opportunitiesto market in the moment through digital will betransformational. emarketer 12 
  13. 13. •  73% of shoppers make a rough/mental shopping list (Booz & Co. GMA 2009)•  24% of purchases are unplanned … and 75% of shoppers plan to make unplanned purchases (Journal of Consumer Research, “Planning to Make Unplanned Purchases?” 2010)•  When she makes decisions at shelf, she’s already done her homework ... or she’ll do it in the aisle   66% of smartphone owners use them in the grocery store   (49% for recipe searches, 38% for shopping lists)
  14. 14. 2There is no more‘pushing’ productsat shoppers;“I’ll get what I needwhen I need it” 14 
  15. 15. 2/3of touchpoints during active consideration are consumer initiated - McKinsey 15 
  16. 16. new ways to get a second opinion
  17. 17. 3Brand ‘image’ doesn’t count anymore; ‘just the facts’ 17 
  18. 18. 90% 70% 84% of consumers completely or claim that trust somewhat trust the online customerrecommendations recommendations of evaluations influence from people they consumer opinions their purchase know posted online  decisions  18 
  19. 19. Online Research has Changed the Game +188% ReviewsSource: Google ‘Path to Purchase Presentation’ 19
  20. 20. Any Category can be Reviewed – even Cream Cheese
  21. 21. 4 Shoppers are more LOYAL to deals and offers 23 
  22. 22. The elasticity for existing brandsof sales to ad spend averages 0.10100% increase in ad spendgenerates10% increase in sales - ARF 24 
  23. 23. 288% Online Deals: COUPONS - search for deals up +288% - over $1B via coupons.comSource: Google ‘Path to Purchase Presentation’
  24. 24. CPG’s Leveraging Paid Search to Drive to Key Accounts
  25. 25. Brand-centric marketing doesn’t resonate anymore…‘I don’t care about your features & benefits’ 27 
  26. 26. 5Marketer-Retailer collaboration is HARDER 28 
  27. 27. Retailer Practices =Problematic for Brands  Clean store  Proprietary programs  Contracted end aisle display space  Private label  No sharing of loyalty card data
  28. 28. Retailer Mobile Apps 30 
  29. 29. … so P&G goes direct 32 
  30. 30. 34 
  31. 31. 6National doesn’t workit’s all about LOCAL 35 
  32. 32. This UK service lets you upload and compare the cost of your weekly shopping list at four grocery stores, ultimately delivering which retailer offers the best deals overall.
  33. 33. Hyper Location, Hyper Location, Hyper Location
  34. 34. 7 There is no more captive audience –communities & conversations   
  35. 35. 42 
  36. 36. 43 
  37. 37. CPG Leveraging Social Sharing
  38. 38. 45 
  39. 39. 46 
  40. 40. Does your definition of “shopper marketing” fit digitally- enabled shoppers’ behavior – in and out of the store? Data-driven Connected Social shoppers: shoppers: shoppers: Researching WOM, Groupon, anytime, reviews location check-ins anywhere … across all channels … usually for price
  41. 41. 8 Merchandising is irrelevant –it’s all about the experience  48 
  42. 42. Experiences are Inspiring 49 
  43. 43. “Shared” Experiences are Compelling 50 
  44. 44. 9 Campaigns don’t work to analways-on community   
  45. 45. “The Purchase Funnel has been replace by the Decision Ecosystem, a cloud of information from all sources, available anytime” (McKinsey, “The Consumer Decision Journey,” 2009)
  46. 46. 53 
  47. 47. new ways to get a second opinion
  48. 48. Her Mindset – over time, in manyplaces – shapes her shopping trip “While most grocery shoppers shop for their food items around once a week, consumers decide what to eat, drink, or serve many times a day. It’s these daily activities, and the needs behind them, that drive their purchase decisions.” – Ann Hanson, NPD Group
  49. 49. eBay sold over $2Bvia smartphones in 2010,triple 2009 56 
  50. 50. 10 It’s Not About The Store AnymoreGet On The Shopping List!   
  51. 51. of U.S. households prepare a written or digital grocery shopping list prior to shopping Source: Survey of 3,600 shoppers for Shopper Marketing 3.0 study conducted Fall 2009 by Booz & Company In collaboration with Grocery Manufacturers Association 58Source: Google ‘Path to Purchase Presentation’
  52. 52. 59Source: Google ‘Path to Purchase Presentation’
  53. 53. IT’S A REVOLUTION! It’s a whole new way of doing things  
  54. 54. BENEFITS •  Reach shoppers who don’t consume traditional mediaof the revolution: •  Tailor/target offers – moredigital shopping relevance, less waste •  Real time research and feedbacktools– •  More helpful, less disruptive •  Easier to measure •  Increase engagement •  Facilitate follow-up, real loyalty •  Influence decisions upstream (before the store) 61 
  55. 55. REVOLUTION? NOT SO FAST 62 
  56. 56. Been here… Done this10 Reasons to Not Freak Out 63 
  57. 57. 1Remember? 64 
  58. 58. 2 In the end,its just more couponing 65 
  59. 59. Online Coupons 82% 25%of consumers use of those are usingcoupons (up from online coupons 63% in 2007) (over 36 million shoppers) 66 
  60. 60. evolution-insights.com 67 
  61. 61. 3 We’re justextending our media reach/ frequency 68 
  62. 62. It’s justanother screen
  63. 63. 4Digital shopping, digitally enabled shopping? Way, way too complex 70 
  64. 64. Huh? 72 
  65. 65. TOOLS• SMS and MMS• Downloadable Apps• Mobile Websites• Check-in Features• Barcode Scanners• Augmented Reality• Digital Out of Home• Payment Peripherals 73 
  66. 66. 5 Digital or analog,the ‘journey’ is the same 74 
  67. 67. 75 
  68. 68. 6Most of this digital stuff is just ‘novelty’ 76 
  69. 69. Popular iPhone Apps 77 
  70. 70. 7 Never going to get pastthe significant privacy issues 78 
  71. 71. •  “Harm” beyond just economic•  Compliance•  Liability•  Transparency•  Security•  Data retention limited•  Affirmative consent•  Profiling•  Disclosures•  Children protections•  ‘Do not track’•  Accuracy 79 
  72. 72. 8Most of it is direct marketing without the postage 80 
  73. 73. 90%+of total emailvolume is junk 81 
  74. 74. 9 “Deep shopper insights”?It has ALWAYS been about insights! 82 
  75. 75. “The consumer is not amoron, she is your wife” - David Ogilvy, 1960’s 83 
  76. 76. 10Mass still works – hello Super Bowl ads 84 
  77. 77. 85 
  78. 78. So… 86 
  79. 79. WE ARE INTHE MIDST OF ARETAILREVOLUTION 87 
  80. 80. The Top 10 Reasons for a Digitally-Enabled 1= strongly diasagree 5= strongly agree  Shopper Marketing Revolution 1. No more impulse – every decision is informed2. No more push – “I’ll get it when I need it”3. No more image – “just the facts”4. No more loyalty- heightened ‘deal’ sensitivity5. No more collaboration- brands and retailers chasing consumers6. No more ‘national’- it’s all about local interests7. No more audience – it’s all about the community/conversation8. No more merchandising – it’s all about navigating9. No more campaigns – I’m “always on”10. No more in-store – get on the shopping list 88 
  81. 81. REVOLUTION? NOT SO FAST 89 
  82. 82. 1= strongly diasagree The Top 10 Reasons Why It’s Not Really a Revolution  5= strongly agree 1. Already tried – webvan, pets.com etc2. Just a better way to distribute coupons3. Just another media channel4. Way too complex for the casual user5. The journey is the same (awareness, intention etc)6. It’s mostly ‘novelty’ (Angry Birds)7. Faces HUGE privacy issues8. Just direct marketing9. It’s always been about ‘insights’ and still is10. Mass still works 90 
  83. 83. Revolution?TOTAL from the Yes/Revolution = minusTOTAL from the No/Not = =Systemic Change Evolve/Adapt (50 pts) (-50 pts) 91 
  84. 84. Your Company’s Approach?DIFFERENTIATING: OPTIMIZING:- Investing - Spending- Discriminating - In-store performance- Experimenting - Measurable ROI- Aligning - Category mgmt- Messaging - Transactions- Equity-building - Data arms race- Insights/solutions - Channel mgmt - Trade relations 92 
  85. 85. SYSTEMIC CHANGEDIFFERENTIATE OPTIMIZE company landscape EVOLUTIONARY 93 
  86. 86. Who Are You?1.  Disrupter: changing the game, reinventing the rules, creating the future2.  Leader: knowledgeable about all of the changes, embarking on many, with a clear strategy of experimentation, skill-building, tool-building, investing3.  Focused: fast follower, jumping on the proven tactics, tactics form the strategies, responding to outside requests4.  Planning/preparing: getting organized, allocating budget, embarking 94 
  87. 87. Thank Youjim.holbrook@ emak.comslideshare.net jimholbrook 95 
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