Zmot dazza

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Zmot dazza

  1. 1. FMOT ZMOT …WTF 1
  2. 2. What we’ll cover… Start with technology, and end with people! What Google has uncovered about ZMOT Compare Google’s findings about ZMOT in US to ours in China Why FMOT remains critical An end! 2
  3. 3. Why all the hullaballo? 3
  4. 4. It’s never been easy to understand media consumption, let alone manage its placement, in China Source: Synovate Media Atlas China Dec 2009-Feb 2010 4 Yesterday: TV, newspaper, internet and radio
  5. 5. Considerable effort, expense and delays to get timely measures of things important for decisionmaking 5 Source: China Mosaic, Synovate, 2006
  6. 6. China has been in a perpetual state of change for years…ZMOT could actually make things easier Past 3 month purchasers of respective model 20% 40% 60% 6 Source: China Mosaic, Synovate, 2006
  7. 7. Let’s learn from Google! 7
  8. 8. How many have read this? zeromomentoftruth.com 8
  9. 9. And what is the Zero Moment of Truth? “That instant when they open their laptop, pick up their smart phones, or grab their tablets, and search to see if you meet their needs. They may read a review, look for a coupon, watch a video, or read a blog or social network discussion of your brand [on-line]. We are officially living in a post-Akerlof* world – any trace of information assymetry tipping the balance in favour of the seller is officially gone” Jim Lecinski, MD Sales Google. * Ackerlof’s principle: adverse selection ….where the seller has more information than the buyer. 9
  10. 10. Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 Researching ZMOT In the US…. Google & Shopper Science In China…. WIMI & Viewstap 10 Online shopper survey Past 6 mth buyers sports shoes, past 12 month buyers auto, luxury brands Fielded Aug 2013
  11. 11. Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 Researching ZMOT In the US…. Google & Shopper Science In China…. WIMI & Viewstap 11 Online shopper survey Past 6 mth buyers, sports shoes, past 12 month buyers auto, luxury brands Fielded Aug 2013
  12. 12. The top ten – the most commonly used information sources when making a purchase decision…which is China, which is the US? Searched online with a search engine 1 Read product reviews online Traditional WOM 2 Comparison shopped products online Looked at product in-store 3 Searched online with a search engine Comparison shopped products online 4 Traditional WOM Saw ads on TV 5 Talked with a salesperson at channel Read brochures 6 Looked at product in-store Sought information from a brand website 7 Sought information from a brand website Talked with a salesperson at channel 8 Noticed ads online Received DM/mail shot 9 Sought information from a retailer website Read product reviews online 10 Saw ads on TV Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 China ZMOT Study, WIMI/Viewstap, Aug 2013 12
  13. 13. Some similarities wrt purchase journey … interestingly, commonalities with the borderless internet 60 50 40 30 20 10 0 Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 13 China ZMOT Study, WIMI/Viewstap, Aug 2013
  14. 14. But significant differences elsewhere, especially importance of traditional media…old world still likes old media. Suggest China will blaze forward 60 50 40 30 20 10 0 Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 14 China ZMOT Study, WIMI/Viewstap, Aug 2013
  15. 15. How many brands have their adspend allocations reflecting this dominance of on-line? Still not too late to buy shares in Tencent! 60 50 40 30 20 10 0 Source: ZMOT Macro Study, Google/Shopper Sciences, 2011 15 China ZMOT Study, WIMI/Viewstap, Aug 2013
  16. 16. A deeper dive into ZMOT in China 16
  17. 17. The ZMOT bible talks about individual journeys….so of course categories are different Percent who strongly agreed to statement If a brand on-line has good support, I find out more about it in the store I ignore other brands, go to the brand that was well-represented on-line I trust what I read from general consumers on-line I trust what I read from KOL's on-line It is important to consider a wide range of options before narrowing down Price promotions have a significant influence on my end buying decision I trust what the sales assistant says if it supports the messages on-line I am persuaded by instore POSM if the brand has good on-line elements It is important that the messages, images in store matches on-line 0 5 10 Sports shoes 15 20 25 Luxury items Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 17 30 Auto 35 40 45
  18. 18. Clicks are as important as pricing to your business strategy Percent who strongly agreed to statement If a brand on-line has good support, I find out more about it in the store I ignore other brands, go to the brand that was well-represented on-line I trust what I read from general consumers on-line I trust what I read from KOL's on-line It is important to consider a wide range of options before narrowing down Price promotions have a significant influence on my end buying decision I trust what the sales assistant says if it supports the messages on-line I am persuaded by instore POSM if the brand has good on-line elements It is important that the messages, images in store matches on-line 0 5 10 Sports shoes 15 20 25 Luxury items Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 18 30 Auto 35 40 45
  19. 19. A pertinent on-line strategy will help the brand instore…if they work in harmony If a brand on-line has good support, I find out more about it in the store I ignore other brands, go to the brand that was well-represented on-line I trust what I read from general consumers on-line I trust what I read from KOL's on-line It is important to consider a wide range of options before narrowing down Price promotions have a significant influence on my end buying decision I trust what the sales assistant says if it supports the messages on-line I am persuaded by instore POSM if the brand has good on-line elements It is important that the messages, images in store matches on-line 0 5 10 Sports shoes 15 20 25 Luxury items Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 19 30 Auto 35 40 45
  20. 20. A pertinent on-line strategy will also reduce competitive pressures, and focus the shopper If a brand on-line has good support, I find out more about it in the store I ignore other brands, go to the brand that was well-represented on-line I trust what I read from general consumers on-line I trust what I read from KOL's on-line It is important to consider a wide range of options before narrowing down Price promotions have a significant influence on my end buying decision I trust what the sales assistant says if it supports the messages on-line I am persuaded by instore POSM if the brand has good on-line elements It is important that the messages, images in store matches on-line 0 5 10 Sports shoes 15 20 25 Luxury items Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 20 30 Auto 35 40 45
  21. 21. Poor sports shoes…mid term Olympic blues perhaps. But also…a potential warning sign KOL’s might be getting close to their “sell-by-date”! If a brand on-line has good support, I find out more about it in the store I ignore other brands, go to the brand that was well-represented on-line I trust what I read from general consumers on-line I trust what I read from KOL's on-line It is important to consider a wide range of options before narrowing down Price promotions have a significant influence on my end buying decision I trust what the sales assistant says if it supports the messages on-line I am persuaded by instore POSM if the brand has good on-line elements It is important that the messages, images in store matches on-line 0 5 10 Sports shoes 15 20 25 Luxury items Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 21 30 Auto 35 40 45
  22. 22. Good on-line a good life-line Index to category average 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 Auto 2 Luxury 3 Sports Shoe If your customers liked your on-line messaging a lot they are far more likely to be brand ambassadors on-line after purchase. Source: China ZMOT Study, WIMI/Viewstap, Aug 2013 22
  23. 23. And who are the “stronger” brands on-line…we can learn from them Auto Luxury Sports shoes 23
  24. 24. Great ZMOT means FA without Good FMOT 24
  25. 25. In the past 6 – 9 mths…. Category Evaluation of product and concept Grades for the MOT’s Soup Amazing product, great concept. FMOT – D ZMOT – C minus, although it prompted very good WOM, no one knew where to find it in the store Toothpaste Great concept, very good product ZMOT – C minus, failed to link mother brand to product line, or provide visual cues for intuitive shopping FMOT – E, wonderfully creative, but by-passed instore Luxury brand Of course, perfect product and concept ZMOT – A FMOT – C. Remember who you are selling to. 25 25
  26. 26. In the past 6 – 9 mths…. Category Evaluation of product and concept Grades for the MOT’s Soup Amazing product, great concept. FMOT – D ZMOT – C minus, although it prompted very good WOM, no one knew where to find it in the store Toothpaste Great concept, very good product ZMOT – C minus, failed to link mother brand to product line, or provide visual cues for intuitive shopping FMOT – E, wonderfully creative, but by-passed instore Luxury brand Of course, perfect product and concept ZMOT – A FMOT – C. Remember who you are selling to. 26 26
  27. 27. In the past 6 – 9 mths…. Category Evaluation of product and concept Grades for the MOT’s Soup Amazing product, great concept. FMOT – D ZMOT – C minus, although it prompted very good WOM, no one knew where to find it in the store Toothpaste Great concept, very good product ZMOT – C minus, failed to link mother brand to product line, or provide visual cues for intuitive shopping FMOT – E, wonderfully creative, but by-passed instore Luxury brand Of course, perfect product and concept ZMOT – A FMOT – C. Remember who you are selling to. 27 27
  28. 28. Shoppers are spending more time making decisions in-store than previously expected • Grocery shopping isn’t always a time pressured activity. • Shoppers can spend more time studying POSM and reading pack information than they do watching a TVC. • Potentially, marketers can use this time devotion to communicate more information about the product. • Remember, in China, studying pack is #6 in terms of importance. 17 minutes Time spent at ONE luxury skin care brand’s counter in BJ 4 minutes 50 seconds Average time spent in toothpaste aisle in Hangzhou superstores 1 min 52 seconds Average time spent in crisps aisle in HK 28 28
  29. 29. UNDERSTAND INTUITIVE SHOPPING….eg Shoppers’ line-of-sight is above shoulder height when navigating around supermarket aisles • • • Supermarket shoppers have been trained by hypermarket retailers to look up, to spot the big red/yellow posters that symbolize the bargain that the shoppers are seeking. Therefore, design elements or messaging on major POSM should not be lower than waist height (shoulder height is even better) to capture attention in main aisles. Creative design effects or messaging below the waist is more-or-less wasted…as it will not be noticed. But at the actual shelf, lower levels are not losing positions, because the bargainseeking shopper also gives close scrutiny here to ensure the best value is not missed. 29 29
  30. 30. POSM that clusters all the brands’ products is an important way to draw shoppers’ attention • To display all the products under the master brand together within a ‘special shelf’ captures interest. • The variety of the product reinforces the brand’s credibility. 30
  31. 31. Careful consideration of the purpose of promotions/premiums • First time trialists seek reassurance of product efficacy; especially for skin care products, promotions may not always work. • Promotions/gifts are likely to be appreciated by repeat purchasers. – At best, make them select our product from a shortlist. – Perhaps not needed in our own stores, but in competitive environments. Role of promotions Post shopping interview: Mod: “ Why are you not interested in the gift items”? Shopper: “ I only care for the product quality 31
  32. 32. It is important to get the right balance for product displays to avoid physical barriers being created for the shopper • A common retail design feature used in premium skin care brands has counters surrounding a central column. This is like building mini castles. • These display counters work like an “unconscious” wall, or barrier, between the assistants and the shoppers that they have to engage with. • Engagement is more difficult to achieve when there is a fence that divides you. CASTLE Style Hiding behind the counter 32 32
  33. 33. Promoters can be very effective, but performance can be very mixed • Promoters can be very helpful to the shopper, especially when there is uncertainty in their mind. But there is quite a lot of cynicism towards promoters, because of poor experiences. • Promoters should be constantly diligent to assist and support the shopper who needs it. • Shoppers want them for facts – to fill information gaps. • Given their importance, auditing is recommended. 34
  34. 34. Sales assistants, and promoters, in general….are we training them the way we should be? • The BA is commended for her attitude, but the experienced skin care shopper needs reassurance about why she should switch to “XXX”. – Nor are her explanations very compelling – few end benefits explained when introducing 3 different lines. • We had a mystery shopper compelled to buy a product because the BA told a story – linked benefits to her own personal experiences. – The BA’s complexion is criticized. It is not a positive endorsement of the products she is selling. Insufficient explanation 35
  35. 35. Pride is fine – arrogance is not • Having pride in your brand is important, as it will mean our pitch to shoppers will be made with genuine earnestness. • But don’t take it too far, as some luxury BA’s have done. This results in aloofness: you don’t have to even say anything…your body will do your talking. 36
  36. 36. Either I’m really ugly, or, he is very inexperienced, or, he’s well short of his sales target! • What message are we sending shoppers when we bring out a lot of products to try? • It simply is not credible. • Immediately, the shopper goes on the defensive to prepare for a hard sell. 37
  37. 37. Golden rules of shopper engagement etiquette broken • Whilst the BA was struggling, the interruption from the experienced staff was not appreciated. • Although the senior BA did compliment the shopper, and offer advice, the experience was far from a positive one. It was construed as hard sell: – – – – – No introduction Interrupted Did not prove herself as a skin care expert Did not listen to the shoppers needs Recommended products that the shopper did not want 38 Ambush
  38. 38. An ending 39
  39. 39. THE PURCHASE PARADOX Counter tension creates a purchase paradox Will the sales assistant think I am a genuine buyer; will they respect me? Will the product be worth what it’s costing me? I want the product, but… Will the sales assistant know what I need? Trust combats the tension Tension must be overcome before a purchase is made. Trust is the antidote, but is more difficult in new purchase occasions. 40 Am I going to be pitched products I don’t need? I actually know a reasonable amount already.
  40. 40. •The small golden bottle (Dior product) given by my friend is very good to use. After that, I Ibuy it myself. I Ifeel the effect is excellent even I Ionly use this product. So I Istick to it. •The small golden bottle (Dior product) given by my friend is very good to use. After that, buy it myself. feel the effect is excellent even only use this product. So stick to it. Overcoming purchase tension: repurchase occasions TENSION “The small golden bottle (Dior product) given by my friend is very good to use. After that, I buy it myself. I feel the effect is excellent even I only use this product. So I stick to it.” 41 A quality product experience is irrefutable proof of trust. Repeat purchase is virtually re-assured if efficacy is delivered. Counter experience and public opinion forums play an important supporting role: - Counter: brand and luxury experience – a special treat. - Public opinion forums: cursory review as a disaster check. Product trial and free samples an absolute must given the key role product experience plays with purchase decisions.
  41. 41. Overcoming purchase tension: new purchase occasions Reducing tension Removing tension is much harder without prior product experience. Surrogates for trust are looked for. Brand halo Brand pedigree and reputation in skin care and advertising care, Positive WOM Is WOM/online forums reporting positive news about product efficacy and/or no side effects? SALES STAFF REASSURANCES COUNTER DISPLAY POSITIVE WOM REPUTABLE BRAND Counter display Is the counter environment aesthetically pleasing, tidy and inviting? Sales staff: pleasant & professional Is the salesperson someone the customer wants to deal with? 42 TENSION
  42. 42. Overcoming purchase tension: new purchase occasions Removing tension is much harder without prior product experience. Surrogates for trust are looked for. Brand halo Brand pedigree and reputation in skin care and advertising care, Positive WOM Is WOM/online forums reporting positive news about product efficacy and/or no side effects? ZMOT Counter display Is the counter environment aesthetically pleasing, tidy and inviting? Sales staff: pleasant & professional Is the salesperson someone the customer wants to deal with? 43 TENSION
  43. 43. Thank You Darryl.andrew@wimirsh.com 44

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