Global Shop 2010 Destination + Impulse

1,290 views

Published on

In this period of increasing commoditization, organizations are under enormous pressure to do more with less. As customer expectations continue to raise and budgets are squeezed, the quality of the customer experience has emerged as one of the most important factors in a shopper\'s purchasing decision. This session will explore powerful tactics and tools to strengthen your brand proposition in a way that is relevant and meaningful to your shoppers.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,290
On SlideShare
0
From Embeds
0
Number of Embeds
15
Actions
Shares
0
Downloads
47
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Title Page
  • Title Page
  • InStore Marketing Institute: Published: October 2008, Source: 2008 GMA/Deloitte Shopper Marketing Survey According to a GMA/Deliotte Shopper Marketing Survey of 88 Retailers/ Manufacturers, In-store activities represent the majority of “Marketing Mix Growth” over the next three years.
  • Promoted in flyers and on website.
  • Cleanwell offers liquid soap dispensers with removable labels giving consumers the option to re-fill them, with a pleasing design and convenience as incentive.
  • Holisters video wall, showing a live feed from the beach in California. They also have a juke box that allows their youthful customers pick the music to play in the store.
  • Whole Foods Market, who entered the market with a focused, “retail-push” approach to their target market is continually re-adapting their offering beyond the core to suit the demands and needs of the customers and their lifestyles in a “consumer-pull” market. Staff at Whole Foods are hired to specialize in categories of the store with superior knowledge of products, saving consumers time As a solution to consumer economic pressures, Whole Foods “ value gurus ” are offering bargain tours of its stores.
  • Although graphically ‘challenged’, this wine identification system helps the neophyte connoisseur get the most out of their selections. A great service to their hypermarket customers.
  • Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
  • Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
  • Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
  • Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
  • Consumer centric solutions involve creating experiences that respond to the immediate and anticipated needs of the consumer In the retail environment In the product experience In the holistic presentation of your brand By looking at trends and opportunities in the marketplace today we can learn how the retail space, the product and the brand as a whole can adapt to inspire the consumer to continue their patronage and cement loyalty, or even to shop in new ways. Some of the trends that are making a big impact on consumer-centric solutions today are:
  • http://www.fastcompany.com/magazine/115/features-who-do-you-love.html
  •   General Mills Cereal Boxes Go Retro   Feb 12, 2010 http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i5ea0ca8b29bfaf1c5c4ed7a1e4f766e4 - Elaine Wong   General Mills is evoking childhood nostalgia by launching five of its best-selling cereals in retro boxes.   The cereals—which are part of General Mills' "Big G" moniker—include Trix, Honey Nut Cheerios, Cheerios, Cinnamon Toast Crunch and Lucky Charms. The limited edition versions will start appearing on shelves at Target stores this weekend as part of a month long promotion. This marks the third year the food maker has partnered with Target to strengthen the manufacturer-retailer relationship.   General Mills is selling the cereals for a suggested retail price of $2.75 a box. They feature “fun, ‘retro’ package designs and premium offers from the 60s and 80s,” said David Oehler, Big G promotion marketing rep. A retro box of Lucky Charms, for instance, shows an older, more storybook-like version of Lucky the Leprechaun, the brand’s mascot.   Last year, General Mills rewarded consumers who submitted proof-of-purchase labels from five retro cereal boxes with T-shirts sporting similar designs. This year, however, the promotion includes games and prizes that evoke childhood memories, such as an Atari Flashback 2 game console.   “ Retro is so in right now—whether it’s clothing, cars, apparel [or] packaging. Many folks remember some of the fun prizes and games as a child growing up,” Oehler said of how General Mills selected the prizes.   Matt Britton, CEO and founder of Mr. Youth, a New York-based social marketing agency, said General Mills’ promotion with Target is just one example of how packaged goods companies are trying to cozy up to their retail partners. In choosing Target as its sole sponsor for the launch, General Mills is aiming to “show its point of differentiation and value to its key merchants,” Britton said, and therefore, the retailer “is able to offer something to consumers that no one else can.”   The retro trend is not exclusive to cereals. Pepsi, for example, launched “throwback” versions of its Mtn Dew and flagship, Pepsi cola products. It also used social networks like Facebook to spread the “throwback” concept. “If you look on Facebook, there’s a trend where people are posting their throwback and nostalgic pictures . . . Retro is something that will continue to evolve. It won’t go away,” said Britton.   Similar to Pepsi, consumers who manage to snag the limited edition General Mills cereals will likely post pictures on Facebook and will spread the word among friends, Britton added.   General Mills spent $262 million advertising its Big G cereals in 2008, and $279 million through the first 11 months of last year, excluding online, per the Nielsen Co.  
  • “Support your local” appears as the home page on the Nike Skateboarding site and creates authenticity (for Nike) by paying tribute to the skateboarding retailers who have been in the industry from the beginning (since Nike has not). By taking "deep dives" into various sports tribes and using the resulting insights to become more relevant--and therefore more authentic--Nike has maintained a renegade edge. As Parker tells it, not so long ago the company believed it was "too big, too corporate" to be accepted by the skateboarding culture. But as the market grew to 15 million skaters who generate $3 billion in annual sales, Nike plunged in. Parker assembled a Nike Skateboarding team that lived and breathed skate. It worked with hard-core skaters to develop a shoe, dubbed the Dunk, customized for skateboarding. It signed hot young skaters to represent the new Nike SB division. And it brought in maverick graphic artists to tell their stories on the canvas of Dunk shoes. To some die-hard skaters, Nike may still be a wannabe, but it has managed to pick off a sizable chunk of customers. The antidote to size and ubiquity--for Nike, at least--has been to go vertical. "As we get bigger," Parker says, "we get deeper."
  • 3. Spending for Food Gas and other consumables during the recession, May 25, 2009, 8 Sages (Survival and Growth Enterprises)
  • Global Shop 2010 Destination + Impulse

    1. 1. Destination + Impulse How to Influence and Guide Shopper Behavior Patrick Rodmell President + CEO [email_address] www.wattintl.com
    2. 2. <ul><ul><ul><li>Patrick Rodmell </li></ul></ul></ul><ul><ul><ul><li>President + CEO </li></ul></ul></ul><ul><ul><ul><li>Watt International </li></ul></ul></ul><ul><ul><ul><li>[email_address] </li></ul></ul></ul>Thanks for letting me share some ideas with you about “Destination + Impulse” at GlobalShop 2010. The following is a condensed version of the presentation that I hope will inspire you to a “ Big Idea ”. Please feel free to drop me a note if you want to discus the presentation further. And good luck in your quest to develop more compelling brands and retail experiences. Let me know if we can help in any way. Sincerely, <ul><ul><ul><li>Research + Insights </li></ul></ul></ul><ul><ul><ul><li>Consulting + Strategy </li></ul></ul></ul><ul><ul><ul><li>Brand Strategy + Positioning </li></ul></ul></ul><ul><ul><ul><li>Design + Marketing </li></ul></ul></ul>Building Brands. Building Business.
    3. 3. From insight to integrated, creative execution www.wattintl.com Research + Consulting practices Creative Agencies “ (watt international is) a unique group of talent people, encouraged to think beyond their specialty”…
    4. 4. … and lots of examples for inspiration! THE IDEA
    5. 5. What NOT to do!
    6. 6. What NOT to do! “ I’d rather die of pneumonia than deal with the headache of choosing the right medicine!”
    7. 7. Is it Destination or Impulse?
    8. 8. Whatever the case, the package still rules !
    9. 9. <ul><li>Some fresh thinking to consider… </li></ul><ul><li>The changing world of Insight Development at Retail </li></ul><ul><li>A look at strategies that drive Destination and Impulse Behavior </li></ul><ul><li>Integration is the key to doing more with less - Integration of input sources </li></ul><ul><li>- Integration of output strategies </li></ul>
    10. 10. Source: 2008 GMA/Deloitte Shopper Marketing Survey www.wattintl.com
    11. 11. <ul><li>Insight Development is radically changing at retail </li></ul><ul><li>Significant growth in internal resources – hiring their own CPGs! </li></ul>www.wattintl.com
    12. 12. Insight Development is radically changing at retail - Depth of insights into Hispanic consumer and shopper insights were profound www.wattintl.com Launched in June 2009, the Supermercado de Walmart is already exceeding expectations. ( Source: Wal-Mart press release)
    13. 13. And they’re getting more more innovative about how they apply insights to marketing strategies
    14. 14. <ul><li>Insight Development is radically changing at retail </li></ul><ul><li>Significant growth in internal resources – hiring their own CPGs! </li></ul><ul><li>Tapping into the value of loyalty data </li></ul>www.wattintl.com
    15. 15. <ul><li>Insight Development is radically changing at retail </li></ul><ul><li>Significant growth in internal resources – hiring their own CPGs! </li></ul><ul><li>Tapping into the value of loyalty data </li></ul><ul><li>Scrutinizing their data to optimize category mix, with a focus on private brands </li></ul>Walmart’s Project Impact: 15% less skus (optimal sku selection) www.wattintl.com What will happen with the extra shelf space? Fewer skus = smaller stores Walmart is planning to reduce the square footage of its stores by 8% or the equivalent of 260 Supercenters
    16. 16. vs. What can you do that will enhance the experience and build loyalty with your customers? www.wattintl.com Merchandise ($/sq. foot) Experience (Customer satisfaction)
    17. 17. <ul><li>Insight Development is radically changing at retail </li></ul><ul><li>Significant growth in internal resources – hiring their own CPGs! </li></ul><ul><li>Tapping into the value of loyalty data </li></ul><ul><li>Scrutinizing their data to optimize category mix </li></ul><ul><li>What does this mean for CPGs? </li></ul><ul><li>More pressure to deliver meaningful insights for the category (not just your brand) </li></ul><ul><li>More pressure to demonstrate the value of your brand to the retailer </li></ul>www.wattintl.com
    18. 18. This just isn’t going to cut it anymore www.wattintl.com
    19. 19. Insights Strategy Insights Insights Insights Strategy Strategy Strategy The old retail model... www.wattintl.com Marketing + Advertising Store Planning + Design Merchandising (PB + CPG) Operations A place that sells products
    20. 20. Insights Where retailers are heading www.wattintl.com Marketing + Advertising Store Planning + Design Merchandising (PB + CPG) Operations Customer loyalty An integrated, well-oiled, branded customer experience Strategy
    21. 21. <ul><li>Some fresh thinking to consider… </li></ul><ul><li>The changing world of Insight Development at Retail </li></ul><ul><li>A look at strategies that drive Destination and Impulse Behavior </li></ul><ul><li>Integration is the key to doing more with less - Integration of input sources </li></ul><ul><li>- Integration of output strategies </li></ul>
    22. 22. Destination + Impulse What drives a “Destination”? What motivates “Impulse”? Most importantly, how are they connected in our new Mobile World? www.wattintl.com
    23. 23. Imagine: An application that sources the best overall price for anything you want to buy…in your local market How does a retail environment remain relevant ?
    24. 24. What can a retail experience deliver that can’t be realized virtually?
    25. 25. Sensory engagement (touch and try)
    26. 26. For CPGs , it’s about generating the need/want, then getting on the shopping list For Retailers , it’s about getting customers to drive past the competition Primarily driven by understanding the “needs” behind the Needs States Destination www.wattintl.com
    27. 27. Creating destination through consumer insights www.wattintl.com
    28. 28. 7. Packaging that works in the store, and looks great at home! Creating destination through consumer insights
    29. 29. Swivel Saucer Tray for meals on the go Juice box holder to allow for mess-free sipping French Fries holder with ketchup container Consumer insights that have the potential to ‘drive’ destination behavior
    30. 30. Nike - Pioneers in Need State Merchandising (“Don’t just Do It; Look Great while you’re doing it!”)
    31. 31. Gatorade running shoes? Nike sports drink? Understanding “the need behind the need” creates broader brand appeal
    32. 32. Understanding the needs states behind fashion
    33. 33. Creating destination through consumer insights www.wattintl.com
    34. 34. What type of store is this?
    35. 35. Creating destination through a unique value proposition - “Value Gurus”
    36. 36. Whole Foods offers recipes and lists for shoppers’ smart phones The company has teamed up with Apple to provide the applications for the phones
    37. 37. The Store as a Media: What is your “ Refresh Frequency ”?
    38. 38. 9. …but Clorets perfected it! For CPGs, it’s about creating interest in the category, then being first for consideration For Retailers, it’s about a clear offering and a compelling retail experience Driven by shopper insights and in-store activities Impulse www.wattintl.com
    39. 39. Digital signage strategies that drive impulse
    40. 40. Digital signage strategies that drive impulse
    41. 41. Because for most people, it’s not the grape , it’s the taste ! Tesco understands Needs States and delivers packaging and communications solutions that drive behavior
    42. 42. Driving impulse through strategic cross promotion 45% 32% 23% 38% 28% 34% Insight: The flavor combination changed the participants ranking of the CSD beverage, suggesting that a consumer’s enjoyment of a CSD beverage is effected by the food it’s paired with. Question: Which beverage do you prefer? Question: Which combination of beverage and chip do you prefer?
    43. 43. The Shopper-centric reality Intuitive shopping at Piggly Wiggly Branded merchandising that helps get more out of meals
    44. 44. The ultimate ‘Solution Sell’!
    45. 45. <ul><li>Some fresh thinking to consider… </li></ul><ul><li>The changing world of Insight Development at Retail </li></ul><ul><li>A look at strategies that drive Destination and Impulse Behavior </li></ul><ul><li>Integration is the key to doing more with less - Integration of input sources </li></ul><ul><li>- Integration of output strategies </li></ul>
    46. 46. 9. …but Clorets perfected it! For CPGs , it’s about generating the need/want, then getting on the shopping list For Retailers , it’s about getting customers to drive past the competition Consumer Insights and Media For CPGs, it’s about creating interest in the category, then being the preferred choice For Retailers, it’s about a clear offering and a compelling retail experience Shopper Insights and In-store Activities Destination + Impulse The Mobile Connection is driving the need for greater integration www.wattintl.com Integrating Insights: Integrating Execution
    47. 47. Integrated Solution www.wattintl.com Set the Strategy brand strategy merchandise strategy experience map creative brief ActionPlan TM Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Analyze synthesize inputs distil conclusions insights Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends Execute brand identity packaging communications retail environment advertising web social media promotions events/p.r. Measure share revenue customer attitudes customer behavior margin profit traffic
    48. 48. Integrated Solution www.wattintl.com Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends ROI (Return on Inputs): What combination will deliver optimal insights?
    49. 49. Circular Study
    50. 50. Proprietary Customer Perception Study Perception vs. Reality www.wattintl.com <ul><li>Quality – perimeter products </li></ul><ul><li>Quality – private brand products </li></ul><ul><li>Price – CPG basket – perception vs. actual </li></ul><ul><li>Price – PB Basket – perception vs. actual </li></ul><ul><li>Out of Stock – perceived # items/trip </li></ul><ul><li>Out of Stock – which brands </li></ul>(price parody) 100 Q1 Q2 Q3 Q4 Q1 Q2 Customer Perception Index: Pricing 105 110 95 90 85 Competitor Actual Price Competitor Perceived Price Opportunity Gap
    51. 51. Experience Mapping: the RIGHT message, in the RIGHT place, delivered in the RIGHT way www.wattintl.com
    52. 52. www.wattintl.com Experience Mapping: the RIGHT message, in the RIGHT place, delivered in the RIGHT way
    53. 53. Integrated Solution www.wattintl.com Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends ROI (Return on Inputs): What combination will deliver optimal insights? Integrate insights Rationalize conflicting inputs
    54. 54. The Key: Consolidation of Inputs www.wattintl.com 360 Retail Insight Management TM
    55. 55. Integrated Solution How do you integrate execution ? www.wattintl.com Set the Strategy Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Analyze Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends Execute brand identity packaging communications retail environment advertising web social media promotions events/p.r. Measure
    56. 56. Our Philosophy: Brand Council to ensure Synergy of Activities www.wattintl.com Creative Strategy Tactical Strategies Business Objectives Marketing Advertising / Website / Brochures / Catalogues / Flyers / In-store signage HR Recruitment/Retention Training Incentives & Rewards Business Planning Store Formats Store Operations Price Programs Supply Chain Strategic Partnerships Offering National brands Private label Services Brand Name Identity Colors, Fonts Internal Communications Public Relations Sponsorships Events Launches Environment Architecture Décor Layout
    57. 57. Integration of Destination and Impulse www.wattintl.com
    58. 58. Apple: A business that gets it right www.wattintl.com
    59. 59. Apple: A business that gets it right www.wattintl.com
    60. 60. The end of the “Abundance Era”; the beginning of
    61. 61. <ul><li>Born +- 1990: The coming consumer generation </li></ul><ul><li>Don’t know life without the internet </li></ul><ul><li>Short attention spans </li></ul><ul><li>Don’t trust advertising – look to their social network </li></ul><ul><li>Mobile technology is a commodity </li></ul><ul><li>Sensitive to our environment </li></ul><ul><li>Developing their consumer DNA during the global recession. </li></ul>Generation M
    62. 62. “ Authenticity is the benchmark against which all brands are now judged…” John Grant in The New Marketing Manifesto
    63. 63. Authenticity Today’s consumer is skeptical about marketing messages, looking for products and experiences that have a closer connection with a true human element.
    64. 64. Juan Valdez has been used to promote Colombian coffee since 1959. “ humble but uncompromising, dedicated to the hard work of raising coffee by hand.” Authenticity: Juan Valdez
    65. 65. General Mills offered limited time retro packaging from the 1960s and 80s in February 2010 The company was responding in part to the trend on Facebook of members sharing pictures of their favorite retro brands Authenticity: General Mills Nostalgia
    66. 66. Nike assembled a Skateboarding team that “lives and breathes” skate. It worked with hard-core skaters to develop a shoe customized for skateboarding, and signed hot young skaters to represent the new Nike SB division. Nike is also building “street cred” with their “Support Your Local” campaign – building authenticity by paying tribute to skateboard retailers who are pioneers in the industry. Authenticity: Nike
    67. 67. <ul><li>Sensory engagement is key – demos, sampling, motion, touching, etc. will all support destination AND impulse behavior </li></ul><ul><li>Treat the Store as a Media – responsive, effective integration of external messaging with in-store communications and activities will help you do more with less </li></ul><ul><li>When looking at consumer need states, explore “the need behind the need” and where it makes sense, develop Need State Merchandising (vs. product categories) </li></ul><ul><li>Experience Mapping will help you understand shopper behavior and lead to more impactful, cost-effective in-store solutions </li></ul><ul><li>“ Authenticity ” is a core brand value of the M-Powered Generation. </li></ul>Winning at Retail
    68. 68. Destination + Impulse Comments or Questions? President + CEO [email_address] www.wattintl.com

    ×