Shopper marketing for retail net group feb 17, 2011
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Shopper marketing for retail net group feb 17, 2011



will Digital cause a revolution in Shopper Marketing?

will Digital cause a revolution in Shopper Marketing?



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Shopper marketing for retail net group feb 17, 2011 Shopper marketing for retail net group feb 17, 2011 Presentation Transcript

  • Are you a revolutionary?
  • Are you a revolutionary? Should you be?
  • ↑  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
  • 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.)
  • Here’s Why: The 10 WaysDigital Changes Everything 7 
  • 1There is no more ‘IMPULSE’…every purchase is considered 8 
  • 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 
  • 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’
  • 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’
  • “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 
  • •  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)
  • 2There is no more‘pushing’ productsat shoppers;“I’ll get what I needwhen I need it” 14 
  • 2/3of touchpoints during active consideration are consumer initiated - McKinsey 15 
  • new ways to get a second opinion
  • 3Brand ‘image’ doesn’t count anymore; ‘just the facts’ 17 
  • 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 
  • Online Research has Changed the Game +188% ReviewsSource: Google ‘Path to Purchase Presentation’ 19
  • Any Category can be Reviewed – even Cream Cheese
  • 4 Shoppers are more LOYAL to deals and offers 23 
  • The elasticity for existing brandsof sales to ad spend averages 0.10100% increase in ad spendgenerates10% increase in sales - ARF 24 
  • 288% Online Deals: COUPONS - search for deals up +288% - over $1B via coupons.comSource: Google ‘Path to Purchase Presentation’
  • CPG’s Leveraging Paid Search to Drive to Key Accounts
  • Brand-centric marketing doesn’t resonate anymore…‘I don’t care about your features & benefits’ 27 
  • 5Marketer-Retailer collaboration is HARDER 28 
  • Retailer Practices =Problematic for Brands  Clean store  Proprietary programs  Contracted end aisle display space  Private label  No sharing of loyalty card data
  • Retailer Mobile Apps 30 
  • … so P&G goes direct 32 
  • 34 
  • 6National doesn’t workit’s all about LOCAL 35 
  • 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.
  • Hyper Location, Hyper Location, Hyper Location
  • 7 There is no more captive audience –communities & conversations   
  • 42 
  • 43 
  • CPG Leveraging Social Sharing
  • 45 
  • 46 
  • 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
  • 8 Merchandising is irrelevant –it’s all about the experience  48 
  • Experiences are Inspiring 49 
  • “Shared” Experiences are Compelling 50 
  • 9 Campaigns don’t work to analways-on community   
  • “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)
  • 53 
  • new ways to get a second opinion
  • 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
  • eBay sold over $2Bvia smartphones in 2010,triple 2009 56 
  • 10 It’s Not About The Store AnymoreGet On The Shopping List!   
  • 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’
  • 59Source: Google ‘Path to Purchase Presentation’
  • IT’S A REVOLUTION! It’s a whole new way of doing things  
  • 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 
  • Been here… Done this10 Reasons to Not Freak Out 63 
  • 1Remember? 64 
  • 2 In the end,its just more couponing 65 
  • Online Coupons 82% 25%of consumers use of those are usingcoupons (up from online coupons 63% in 2007) (over 36 million shoppers) 66 
  • 67 
  • 3 We’re justextending our media reach/ frequency 68 
  • It’s justanother screen
  • 4Digital shopping, digitally enabled shopping? Way, way too complex 70 
  • Huh? 72 
  • TOOLS• SMS and MMS• Downloadable Apps• Mobile Websites• Check-in Features• Barcode Scanners• Augmented Reality• Digital Out of Home• Payment Peripherals 73 
  • 5 Digital or analog,the ‘journey’ is the same 74 
  • 75 
  • 6Most of this digital stuff is just ‘novelty’ 76 
  • Popular iPhone Apps 77 
  • 7 Never going to get pastthe significant privacy issues 78 
  • •  “Harm” beyond just economic•  Compliance•  Liability•  Transparency•  Security•  Data retention limited•  Affirmative consent•  Profiling•  Disclosures•  Children protections•  ‘Do not track’•  Accuracy 79 
  • 8Most of it is direct marketing without the postage 80 
  • 90%+of total emailvolume is junk 81 
  • 9 “Deep shopper insights”?It has ALWAYS been about insights! 82 
  • “The consumer is not amoron, she is your wife” - David Ogilvy, 1960’s 83 
  • 10Mass still works – hello Super Bowl ads 84 
  • 85 
  • So… 86 
  • 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 
  • 1= strongly diasagree The Top 10 Reasons Why It’s Not Really a Revolution  5= strongly agree 1. Already tried – webvan, 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 
  • Revolution?TOTAL from the Yes/Revolution = minusTOTAL from the No/Not = =Systemic Change Evolve/Adapt (50 pts) (-50 pts) 91 
  • 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 
  • 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 
  • Thank Youjim.holbrook@ jimholbrook 95