1.
A SYNOPSIS OF THE TORONTOSHOPPER MARKETING FORUMMARCH 2-3, 2011

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AS SHOPPER MARKETING CONTINUES TO GAINA FOOTHOLD IN CANADA, CONFERENCES LIKETHIS ONE ARE BECOMING MORE AND MOREVALUABLE. AGENCIES, RETAILERS, ANDMARKETERS ALL NEED TO UNDERSTANDNOT ONLY THE UNDERPINNINGS OF THE DIS-CIPLINE, BUT PERHAPS MORE IMPORTANTLY,HOW THE DISCIPLINE IS AFFECTED BY THENUANCES OF THE CANADIAN RETAIL LAND-SCAPE. THIS DECK IS AN ENCAPSULATIONOF WHAT WE HEARD OVER THE TWO DAYSOF PRESENTATIONS AND DISCUSSIONS.

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KEYNOTE 1NEALE MARTIN

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THE CURRENT UNDERSTANDING OFCONSUMER BEHAVIOUR IS THIS:WE ARE RATIONAL AGENTS MAKINGCONSCIOUS DECISIONS.BUT THIS THINKING IS FLAWED.

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AS IT TURNS OUT, RESEARCH HASALWAYS BEEN BASED ON THE PREMISETHAT PEOPLE KNOW WHY THEY DOTHINGS. BUT MOST PEOPLE ARE ACTINGSUBCONSCIOUSLY, AND OUT OF HABIT.

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CONSUMERS HAVE ONEBRAIN BUT TWO MINDS.THE UNCONSCIOUS BRAINMOVES OR WORKS FIRST.

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PEOPLE ARE NOT PRESENTIN THE MOMENT.THINGS GET DONE ONAUTOPILOT.

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WHEN PEOPLE SHOP ACHAOTIC ENVIRONMENT(THE GROCERY STORE) THEYALL LEAVE WITH THE SAME20-30 ITEMS OF THE SAMESIzE, BRAND AND TYPE.OF THE PEOPLE WHO SAYTHEY WILL PROBABLY BUYA NEW PRODUCT AT RETAIL,ONLY 3% ACTUALLY BUY.

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1. AUTOPILOT MODE: UNCONSCIOUS2. HEURISTIC MODE: COPILOT- BASED SHOPPING. THEY LOOK FOR SALES. SOME ITEMS CAN BE SWAPPED FOR OTHERS3. PILOT: CONSCIOUS AWARE- NESS WHILE SHOPPING.I FEEL. I DO. I THINK.

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SHOPPERS WANT TO MAKE AMAP OF THEIR STORE. SO THEAPPLE STORE IS AN EASIERENVIRONMENT BECAUSE OFTHE LOW SHELVES AND EASYLAYOUT. WHEN SHELVES ARETOO HIGH IT’S DIFFICULT FORSHOPPERS TO UNDERSTANDTHEIR ENVIRONMENT. THEN TOOMUCH ENERGY IS SPENT TRYINGTO FIGURE OUT THE STORE.

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iDRIVE iPOD VSA SYSTEM SO COMPLEX NO NEED TO EVEN READTHAT DEALERSHIPS GIVE THE MANUAL THATCOURSES ON HOW TO USE COMES WITH IT.IT. THINK MICROSOFT.

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THE POINT IS THIS:DON’T MAKE SHOPPERSSHOP THE WAY YOUWANT THEM TO. LETTHEM TELL YOU HOWTHEY WANT TO SHOPAND INNOVATE ANDDESIGN AROUND THAT.

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COUPONS ARE BRIBERY, NOTLEARNED BEHAVIOUR. BY AS-SUMING SHOPPER MARKETINGIS ABOUT THE DISTRIBUTION OFCOUPONS WE ARE NOT TRAIN-ING SHOPPERS TO BE LOYAL, WEARE TRAINING THEM TO EXPECTA REWARD OR MORE COUPONS.

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UNDERSTANDING SHOPPER ANDCONSUMER HABITS ARE THE BESTWAY TO COMMUNICATE, AND TO DOSO MOST EFFECTIVELY WE SHOULDDO FOUR THINGS:CREATE CONTEXTTRAIN BEHAVIOURREINFORCEUSE CUES TO TRIGGER BEHAVIOUR

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WHAT’S THE TAKEAWAY?IF THE UNCONSCIOUSMIND CONTROLS 95% OFBEHAVIOUR, THEN MOSTOF WHAT WE WANT TOCOMMUNICATE IS BEINGLOST. BECOMING A HABITFOR YOUR SHOPPERS ISTHE GOAL. IT’S TIME TOCHANGE THE WAY WE TALKTO SHOPPERS.

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INdUSTRy REPoRT PRESENT: Shopper Marketing Best Practices:KEYNOTE 2 A Collaborative Model for Retailers and ManufacturersFUTURE OF SHOPPER A report from the Retail Commission on Shopper Marketing SPoNSoREd By:MARKETING.DR. BRIAN HARRISAND JULIE BECK A supplement to Shopper MarketingHTTP://WWW.PHILTERRETAIL.COM/LEARN/SHOPPER-MARKETING-BEST-PRACTICES

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COLLABORATION IS KEY.IF THE RETAILER AND THEMANUFACTURER DON’T WORKTOGETHER THEN IT’S NEVERGOING TO BE SUCCESSFULSHOPPER MARKETING.

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ASK YOURSELF:HOW DO WE ACTIVATEINSIGHTS AGAINSTBUSINESS CHALLENGES?THESE ARE CHALLENGESFOR THE RETAILER ANDTHE MANUFACTURER.

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BUILD A SHOPPER MARKETINGSTRATEGIC PLAN FIRST:1. TAKE A MULTI-CHANNEL APPROACH AND GET ALL OF YOUR AGENCIES AT THE TABLE2. INCORPORATE THE LARGER GOALS OF THE BUSINESS3. MAKE IT SCALABLE TO ALLOW ALL SIzES OF RETAILERS TO PARTICIPATE4. ENSURE THAT IT CAN BE EXECUTED WELL AND THAT IT’S NOT JUST THEORETICAL5. CREATE EFFICIENCIES IN THE PLAN SO THAT AS THE PROGRAM MATURES, RESULTS WILL IMPROVE

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THE KEY TO ANYSTRATEGIC SHOPPERMARKETING PLAN ISTO DELIVER REALSHOPPER VALUE.THIS IS ABOUTBUILDING LONG-TERMLOYALTY, NOT SHORT-TERM PRICE CUTS.

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DEVELOPING A STRONGSHOPPER MARKETINGPLAN MEANS:1. BUILDING A STRATEGIC FRAMEWORK2. DEVELOPING COMPELLING CONTENT3. DEFINING WHAT WINNING MEANS FOR BOTH THE PLATFORM AND THE PROGRAM4. GETTING RETAIL ALIGNMENT AND BUY-IN

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WANT TO GET ARETAILER EXCITEDABOUT YOUR SHOPPERMARKETING PLANS?PROVE CONSUMERAND SHOPPER INSIGHTALIGNMENT. MAKE ITWORK TO ACHIEVE ARETAILER’S GOALS.

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LOOK AT THE CONSUMERBRIEF – WHO IS THE KEYCONSUMER?LOOK AT THE SHOPPER DATA–WHAT DO WE KNOW ABOUTTHIS KEY CONSUMER?DEVELOP THE INSIGHT THATTIES THE TWO TOGETHER.

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THIS KEY INSIGHT THENALLOWS THE CREATIVEAGENCY TO DEVELOP THEBIG IDEA FOR THE SHOPPERMARKETING PLATFORM. ANDSHOPPER DOESN’T MEANHEADER CARDS. ENGAGE-MENT WITH THE SHOPPERCAN HAPPEN IN-HOME,ONLINE AND IN-STORE.

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AFTER THE PROGRAMLAUNCHES, GO BACK TOTHE PLAN AND REMEMBERWHAT SUCCESS WAS GOINGTO LOOK LIKE. MEASUREBEHAVIOUR SHIFTS,ATTITUDINAL SHIFTSAND SALES LIFTS.

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TAKE AWAY:CONSUMER AND SHOPPER INSIGHTS MUSTBE LOOKED AT TOGETHERTHERE SHOULD BE A SHARED VISION BE-TWEEN RETAILERS AND MANUFACTURERSTHE PLAN SHOULD OUTLINE ALIGNMENT ONTARGET AND MEASURESCREATIVE SHOULD ALLOW FOR CROSSFUNCTION ENGAGEMENT

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RIGHT NOW, THEREARE THREE LEVELS OFSHOPPER MARKETINGGOING ON IN THEMARKETPLACE.

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LEVEL 1: FOUNDATIONTHIS IS ESSENTIALLY APROMOTIONAL PROGRAM,AND IT’S WHERE TOO MANYRETAILERS AND MANUFAC-TURERS ARE PLAYING NOW.

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LEVEL 2: ADVANCEDAT THIS LEVEL, PROGRAMSARE BEING BUILT. THEY GOBEYOND PRICE AND COUPONSTO OFFER ONGOING VALUETO SHOPPERS.

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LEVEL 3: LEADERSHIPAT THIS LEVEL, LARGERPLATFORMS ARE BEING BUILT,THAT LEAD TO GREATERSHOPPER LOYALTY. THEYREqUIRE HIGHER RETAILERCOLLABORATION ANDGREATER REWARDS FORPARTICIPANTS.

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ANDREW ASSADMICROSOFT CHIEF STORYTELLER.THE NEW SHOPPER’S JOURNEY.

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THE NEW SHOPPERSJOURNEY:IMPULSE RESEARCH HABIT

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THE GROCERY IN-DUSTRY BREAKSDOWN LIKE THIS:12% OF THE CATEGORY ISSHOPPED BY RESEARCH16% BY IMPULSE72% BY HABIT

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HOW DOES ADIGITAL STRATEGYFIT INTO THIS?PEOPLE ARE USINGDIGITAL (MOBILE ANDDESKTOP) TO BOTHRESEARCH PURCHASESAND CONFIRM THEM.

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DIGITAL PLAYS A ROLE INTRIGGERING A PURCHASE25% OF THE TIME.57% USE IT FOR RESEARCHBEFORE THEY BUY, BUTMANY USE IT FOR FORPOST-TAILING – AFTERTHE ITEMS HAVE BEENPURCHASED.

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HOME ELECTRONICSPURCHASES LOOK LIKE THIS:14% USED THEIR MOBILEPHONE TO CONFIRM THEIRPURCHASE IN STORE, PRIORTO BUYING.11% THEN USED DIGITALAFTER BUYING A PRODUCTTO UPDATED THEIR SOCIALMEDIA STATUS, LEAVE AREVIEW, OR COMMENT ONTHEIR PURCHASE.

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The Evolving Path to PurchaseCATHERINE ROE Catherine Roe Google Head of CPG USGOOGLE HEAD OF CPG US Chantal Rossi Badia Google Head of CPG, Retail Canada Feb 2011 Google Confidential and Proprietary 1CHANTAL ROSSI BADIAGOOGLE HEAD OF CPG, RETAIL CANADAGOOGLE SHOWCASES DIGITALINTEGRATION IN THE PATH TO PURCHASEDOWNLOAD THE FULL PRESENTATION AT:HTTP://WWW.PHILTERRETAIL.COM/LEARN/DIGITAL-INTEGRATION-IN-THE-PATH-TO-PURCHASE

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SHOPPERS ARE BEING INFLUENCEDDIFFERENTLY THAN THEY HAVE INTHE PAST.NOW 83% ARE MAKING A DECISIONBEFORE ENTERING THE STORE.THERE IS 34% SMART PHONEPENETRATION IN THE US AND THENUMBER WILL RISE TO 50% BY 2015.55% HAVE A PROFILE ON SOCIALNETWORKS.CANADIAN DATA:86% RESEARCH PRODUCTS BEFORETHEY PURCHASE.

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TOP RESOURCESFOR SHOPPERS:INTERNET 81%FLYERS 62%IN-STORE 50%TV 37%

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MORE STATS:COUPON SEARCHES UP 250% OVERTHE LAST YEAR.197% INCREASE ON LOCAL SEARCHES.187% GROWTH IN RECIPE SEARCHES.REVIEW SITES INCREASED BY 97%.THIS IS THE SECOND MOMENT OFTRUTH THAT HAPPENS AFTER THEBUYING DECISION.

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CANADIAN MOMS RESEARCHMANY PRODUCTS ONLINE:76% NON PRESCRIPTION70% HOME ITEMS60% HYGIENE60% GROCERY

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THIS IS actually THEYEAR OF MOBILE.GLOBAL STAT SHOWS 4XGROWTH FOR MOBILE IN THELAST YEAR.1IN 3 MOBILE SEARCHES ISLOCAL AND 59% OF THOSEPEOPLE WENT INTO THE STORE.79% ARE USING MOBILE TOHELP THEM SHOP.

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NOVEMBER 2010: 10%OF SHOPPING SEARCHqUERIES WERE DONEVIA MOBILE SITEYET, 79% OF RETAILERSAND BRANDS DON’THAVE A MOBILE SITE.

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KRISTEN NOSTRANDP&GSTORE BACK: BRINGING BRANDSTO LIFE THROUGH INTEGRATEDCOMMUNICATIONS.

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P&G HAS BEEN DEVELOPINGSHOPPER MARKETING PROGRAMSFOR JUST UNDER 10 YEARS BUTTHEY STILL SEE THEMSELVES ASBEING ON THE JOURNEY TO UNDER-STANDING THE POTENTIAL OF THISELEMENT OF MARKETING.

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THE FIVE RULES P&G FOLLOWS:1. THINK BIG IN-STORE2. FANTASTIC JOURNEY3. BRANDING BALANCE4. VALUE FOR RETAIL PARTNERS5. BRAND KARMA

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THINK BIG IN-STORE:THEY SEE BIG IDEAS STARTINGIN-STORE AND WORKING OUT FROMTHERE. THINGS THAT WERE ONCESEEN AS TACTICS ARE NOW DRIVINGLARGER PROGRAMS. THINK GAIN –IT’S AN EXPERIENTIAL BRAND SOTHE PURCHASE SHOULD ALSO FEELTHAT WAY.

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FANTASTIC JOURNEY:ENGAGE THE SHOPPERTHROUGHOUT ENTIRE PATH TOPURCHASE AND UNDERSTANDWHO HE OR SHE IS THROUGHOUTTHE JOURNEY.

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BRAND BALANCE:MANUFACTURERS MUST LEARNTO STRIKE A BALANCE BETWEENICONIC BRANDING AND SHOP-ABILITY. EACH SHOULD ENHANCETHE OTHER.

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VALUE FOR RETAILPARTNERS:THIS CAN HAPPEN WHEN:• There is a sTraTegic fiT wiTh RETAILERS• when The reTailer knows WHAT’S IN IT FOR THEM• as manufacTurers innovaTe • as we uncover new ways of WORKING TOGETHER

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BRAND KARMA:BEING PROFITABLE AND DOINGGOOD AREN’T MUTUALLYEXCLUSIVE. YOU ARE PROFIT-ABLE BECAUSE YOU DO GOOD.

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SHOPPER PRINCIPLESTO FOLLOW:MAKE IT SIMPLE.GUIDE THE SHOPPER.DELIGHT THEM EVERY STEP OFTHE WAY.

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ULTIMATELY, WHAT WE HEARDSEEMED TO REVOLVE AROUND ACOUPLE OF CONSISTENT THREADS.PERHAPS MOST IMPORTANTLY,THERE IS THE RELATIONSHIPBETWEEN THE RETAILER ANDTHE MANUFACTURER. WITHOUTALIGNING INTERESTS, SHOPPERMARKETING CANNOT BE ASEFFECTIVE IN CANADA AS IT IS INOTHER COUNTRIES. ONE OF THEBIGGEST CHALLENGES IS CANADA’SCONSOLIDATED RETAIL LANDSCAPE,WHICH MAKES THE DEVELOPMENTOF TRULY DIFFERENTIATING CAM-PAIGNS MORE OF A CHALLENGETHAN IN THE UNITED STATES.

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THE INTEGRATION OF DIGITAL ISALSO A LINGERING qUESTION,BUT THE IDEAS ARE FLOWING. ANDWHILE THE UNDERSTANDING OFTHE VIRTUES OF THE DISCIPLINE ISBECOMING MORE MAINSTREAM,IT’S CLEAR THAT THERE IS WORK TOBE DONE TO MAKE THE PRACTICEOF SHOPPER MARKETING MORESEAMLESSLY INTEGRATED INTO THEMARKETING MIX.

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