Shopper Marketing; Context, trends and issues - Moscow 2013


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Shopper marketing has been around for thousands of years. But in modern times it has emerged from the disciplines of retail marketing and trade marketing. It is about understanding how your target consumers behave as shoppers, in different channels and formats, and leveraging this knowledge for the benefit of shoppers, consumers, retailers and brand owners. Sub-titled ‘Insights from a Small Island’ (the UK), this presentation was delivered at Marketing One’s Shopper Marketing Conference in Moscow on 13 February 2013. The presentation notes accompanying each slide are shown below.

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  • Good afternoon ladies and gentlemen. Thankyou for inviting me to soeak to you here in Moscow today. I’m Guy Tomlinson and from the United Kingdom. I run a research and marketing consultancy, called The Marketing Directors and I’m also a Course Director (teacher) for The Chartered Institute of Marketing/Marketing One. With the UK being having one of the most competitive retail marketplaces in the world, I would like to put shopper marketing into a little context, and share some insights on trends and issues and the thinking processes to help you maximise the sales of your products, services and brands.
  • First shopper marketing is not new. It has been around for over two thousand years. It involves customers or shoppers buying from market traders, some of whom have evolved into major retail businesses that we know today (eg Marks and Spencer). So as a maker or supplier of produce to market traders, you really have to think about satisfying the needs of two customers.
  • When I started in marketing over three decades ago, I worked for Boots (UK’s biggest chemist/pharmacy retailer) and we undertook retail marketing to market our products to consumers. And in my second job, at Procter & Gamble, we sold our goods to customer via retailers like Boots. And to help sell our goods to Boots we did two things. We invested in consumer marketing, ie heavyweight advertising campaigns to pull-through consumer sales from Boots and other stores. We also invested in trade marketing to help sell-in and sell-through stock. Shopper marketing today, embraces retail and trade marketing. Both are a form of consumer marketing.
  • Successful marketing has always been about understanding customers, their needs and meeting them. This is sometimes called being ‘insight’ driven – uncovering consumer needs or beliefs to uncover new business or brand opportunities.
  • Shopper marketing just means the scope of ‘insight’ required must be broader. So instead of just asking questions about how to make your brand stand-out and increase in sales and profitability…..
  • You also need to ask and help answer the questions that keep retailers awake at night . These questions include: How to grow the category? How to maximise retailer share? How to maximise retailer profitability/ margin? How to deliver a relevant, distinctive and appealing ‘retail’ consumer experience?
  • You can start by understanding some of the macro-social trends and how they influence the retail world…. On one hand consumers seek products and deals, or some form of added value such as help or advice ….. And on the other hand consumers are time-poor and seek convenience or a fast solutions to their problems or they are time-rich and seeking something else as well such as a good time ….….. Which leads us to conjecture four worlds ….
  • In the first world, consumers seek great deals and convenience. It is a world where it is easy to find information, and compare deals. This is a world dominated by online retailers. There are specialists in many markets including financial services, utilities, telephony, media products, and even groceries.
  • This screen grab is of a website called It allows the consumer to compare the prices of everyday grocery items from the comfort of their homes. Most retailers have developed online propositions in the UK, most offer lower prices than their retail stores. There are even diversified retailers such as Amazon – who list almost everything available.
  • In the second world consumers seek convenience and added value …. Most out of town or large grocery multiples have now launched ‘C’ store formats on UK High Streets.
  • This photograph shows Sainsbury’s Local on Marlow High Street. Typically ‘C’ stores open later, and charge a premium for the extra convenience.
  • Many grocery stores have also established home delivery services. Ocado is a home delivery service established by Waitrose (part of the John Lewis Group), though it is now a quoted company.
  • In the third world, consumers are time rich, those who view shopping as a leisure or pleasure activity. This has spawned a range of luxury retail malls and a diverse range of shopping experiences.
  • John Lewis is also a well known destination store for its service. Its staff are recognised to be highly knowledgeable about the goods they sell such as televisions shown in this photograph.
  • One example is so called University outfitter, Jack Wills. All their stores are fitted out like a quirky home. Here you see an old pool table with a mannequin on it. Typically you’ll find rooms decorated as a bedroom, with bed, reading rooms with old books. The scientific and education charity, National Geographic, has recently opened a store in Regent Street, London. It is a fascinating place to shop; it contains art, such as these horses made from driftwood and a cold room with temperatures typical of a Moscow winter day, where adventurers can test their outdoor clothing!
  • In the fourth world consumers seek a deal and have lots of time on their hands.
  • It has spawned outlet villages such as Bicester Village which is inhabited by the ‘seconds’ shops of some of the world’s most luxurious brands such as Burberry and Ralph Lauren…
  • In order to unearth insights to increase your sales and profitability and the retailer’s sales and profitability you need to understand the shopper’s journey. As we have seen some will be online and some will be offline. Increasingly both the online and offline journeys will overlap
  • But let’s assume it is in-store. Your initial challenge will be to raise awareness of your brand in-store, because the customer needs to be aware of it as a precursor to buying it. This is an example of a display piece in many department stores or luxury good shops. It features an image of Brad Pitt from the recent Chanel No5 advertising to rekindle brand awareness in-store.
  • Here’s another example of an awareness gaining device. This sign says ‘one shade of grey’ and draws attention to this grey coloured book series produced by Persephone. This is a play on words that would emotionally engage book readers familiar with the #1 best-seller called ’50 shades of grey’.
  • This sign is illustrates the need for clarity and power in communication. This sign featured in a liquor store in Phoenix, Arizona. The sign originally said ’don’t forget the ice’ but the liquor store owner complained of poor sales. Now if I asked what would you forget, you would most probably say the ice. When changed to ‘remember the ice’ sales went up considerably.
  • You also have to make product selection as easy as possible at point of sale. Suncare is a great example. The bright and light signage draws the eye. Product choice is also made easier by the use of sun protection factors and the use of colour to distinguish sun protection and tanning products from aftersun. Boots has around 50% of the UK suncare market.
  • An early challenge for your brand is to get your product on a shelf….. or maximize your shelf space. The way space is allocated is usually a function of sales and profitability, and is usually a task undertaken by retailers. But manufacturers are becoming increasingly influential. So try and obtain sales and profitability information from your retail customers so you can influence planogram design. If you are a new or small brand seeking more space offering more margin may help you get more facings ….
  • To help your products gain more space help the retailer grow the category. And remember that categories grow by adding new segments. Taking the men’s shaving market as an example, the market has grown by adding extra blades. First there were one blade razors, then two, three and now four blade razors. This is where new product development or repositioning your brand has a role to play. This slide shows five of some two dozen (24) packaging designs that we researched to create a new food brand. Our aim was to help grow the pie category and perhaps displace some /commodity pies with chilled or frozen Cornish pasties. As part of this process we researched packaging ideas on mock-up shelf displays to determine what was most distinctive and appealing.
  • Work with the retailer to create new product promotions or shopping events. Halloween is the third largest retail spending event in the USA. Consumers spend on average £34 each. In the UK, consumers spend less than a third of this amount. The development of Halloween has been led in the UK by Asda Walmart (the UK subsidiary of the US owned Walmart group.). This photograph shows just some of their enormous range. Orange and black are colours most commonly associated with Halloween (Autumn, death). Though because Asda felt these colours scared children, green, yellow and other colourways have been introduced to make the areas fun and inviting. Asda are the UK’s Halloween destination store and have a 50% market share.
  • Once in the store you can increase the likelihood of the customer buying your product by giving them a free trial experience. Costco are a US wholesaler, they sell food, drink and lots of other products. Their stores are always filled with demonstrators offering food and drink samples. Last time I was in, they even trialled their toilet tissue!
  • You should also think about opportunities for link selling and maximising the amount consumers spend on one transaction. A meal deal involves a triple sale. Here a sandwich, drink and bag of crisps for the price of £3.79. Many retailers run ‘meal deals’ in the UK, what’s particularly distinctive about this example is the clear labeling on the top of the display and also how the merchandising of the crisps below the drinks makes it easier to select rather than forget the third product. In the UK, Pepsico, makes both drinks and crisps.
  • Finally you should also think about opportunities to minimise the risk in making a purchase or how you might provide after sales care in order to engender loyalty and repeat purchase. This is how one or two Uk retailers are now doing this. Once you’ve paid for your groceries you go home, as my wife does, and check the price of the groceries you’ve bought online. And if you shop at Asda they promise to beat or match every other store, so if you find something cheaper elsewhere they give you a voucher for that amount to spend in store next time you visit. Which partially undermines all the extra sales and margin you’ve been trying to achieve and puts in context that if you achieve 2-3% through shopper marketing you have done well! Thankyou. Spasiba!
  • Shopper Marketing; Context, trends and issues - Moscow 2013

    1. 1. Shopper Marketing: Context, trends and issuesViews from a small islandFebruary 2013
    2. 2. Guy TomlinsonManaging Director – The Marketing Directors
    3. 3. Shopper marketing Product/ service brand Co i ng ns um k et er ar m d em ar ke Tra tin g Shopper marketing Retail Retail marketing Consumer trade
    4. 4. Insight = a customer need or belief that points to a business opportunity
    5. 5. Questions for product brands ….• How to enhance brand stand-out, sales and profitability?• How to deliver the best value/quality product?
    6. 6. Questions for retailers….• How to grow the category?• How to maximise retail share?• How to maximise retailer profitability/ margin?• How to deliver a relevant, distinctive and appealing ‘retail’ consumer experience?
    7. 7. Understand theretail world…… Busyness/ convenience Added A deal/no value/help/ frills advice Time rich/ Indulgence
    8. 8. Understand theretail world…… Busyness/ convenience Added A deal/no value/help/ frills advice Time rich/ Indulgence
    9. 9. Understand theretail world…… Busyness/ convenience Added A deal/no value/help/ frills advice Time rich/ Indulgence
    10. 10. Busyness/Understand the convenienceretail world…… Added A deal/no value/help/ frills advice Time rich/ Indulgence
    11. 11. Busyness/Understand the convenienceretail world…… Added A deal/no value/help/ frills advice Time rich/ Indulgence
    12. 12. The Shopper Journey After Awareness Sourcing/ Selection Purchasing Usage Sales/ Shopping Experience Service
    13. 13. Planogram ££££ £££££ £££ ££ £
    14. 14. Guy TomlinsonThe Marketing DirectorsThe Old Barrel StoreDraymans LaneMarlow SL7 2FFTel: +44 (0) 01628 400699E:© The Marketing Directors 2013