Yellowwood Engager 2012

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Taking a closer look at the role of brand engagement in driving purchase decisions among South African female household shoppers

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  • Shopper Marketing is a relatively new and rapidly growing specialist area within the marketing & communications category.Within the SA context, this category is still being shaped and formed to local market conditions and as such, best practice is not yet fully established.It would be remiss for anyone to presume to know everything about this category in the local context today. This survey was undertaken to provide context and foundation thoughts – an opportunity to share insights and collaboratively consider the implications for marketing implementation going forward.
  • Conventions are being challenged:Campbell’s soup research challenges the “70% of all decisions made at shop shelf” conventional thinking – taking into consideration a wider set of influencers and paths to purchase than previously acknowledged.A post-recession generation:Longitudinal surveys such as that of Symphony demonstrate the longer term effect of recessions on shopper behaviour. The sheer magnitude of the latest recessionary period forced shoppers to adopt new behaviours and re-evaluate their decision making processes. We now see that many of the habits formed during this period have prevailed. This is not unlike the behaviours observed amongst previous great recession generations, where the newly learnt behaviours outlived the shorter-term financial crises.From a shopper marketing perspective, this has significant impact on how we approach the category – it is no longer just what happens at the POP, but rather requires an in-depth understanding of shopper behaviour along the protracted path to purchase.
  • Conventions are being challenged:Campbell’s soup research challenges the “70% of all decisions made at shop shelf” conventional thinking – taking into consideration a wider set of influencers and paths to purchase than previously acknowledged.A post-recession generation:Longitudinal surveys such as that of Symphony demonstrate the longer term effect of recessions on shopper behaviour. The sheer magnitude of the latest recessionary period forced shoppers to adopt new behaviours and re-evaluate their decision making processes. We now see that many of the habits formed during this period have prevailed. This is not unlike the behaviours observed amongst previous great recession generations, where the newly learnt behaviours outlived the shorter-term financial crises.From a shopper marketing perspective, this has significant impact on how we approach the category – it is no longer just what happens at the POP, but rather requires an in-depth understanding of shopper behaviour along the protracted path to purchase.
  • This example demonstrates the opportunity and power of a brand playing a role along the entire path to purchase. The focus is on not on the products themselves, but rather on solving a common shopper dilemma… what to cook tonight?Through the clever use of technology, Kraft Foods is able to:Demonstrate their understanding of the shopper’s worldEnsure that their products have wider relevance and top of mind considerationTest pricing propositions through their coupon serviceEnhance retailer relationships through their location serviceGather detailed behavioural information to support their insights-based initiativesA win-win situation for all.Shopper Solution Of The Month (August) – Kraft Foods’ iFood AssistantPosted on August 8, 2012 by shoppernewsblogAugust’s Shopper Solution Of The Month goes to Kraft Foods for its outstandingiFood Assistant. The app solves one of shoppers’ most common problems: What to cook for dinner tonight? With a library of more than 7,000 easy-to-prepare recipes, Kraft Foods created one of the most succesful lifestyle apps.But rather than being a mere digital recipe book, the app actually accompanies shoppers along the entire path to purchase.Since its initial launch in 2008, Kraft Foods constantly improved the iFood Assistant application which is currently available for free for iPhone, Blackberry, Android and Windows7. The integrated tools provide guidance for shoppers along the entire path to purchase and are geared towards solving a common shopper problem: What to cook for my family tonight?.At home & on-the-goShoppers can browse iFood Assistant´s vast library of 7,000+ recipes for inspiration.Recipes are ordered into categories and according to their difficulty of preparation which allows shoppers to navigate easily among options in order to find the right dish for any occasion. Alternatively, users can look for ideas based on what’s still in their fridge thus, positively contributing to reducing wastage of perishable food. Real enthusiasts can also purchase special recipe collections from professional chefs.Once a shopper found a recipe, the app helps him/ her to prepare a shopping list not to forget any essential ingredients. Based on the shopping list, the iFood Assistant also shows shoppers any coupons available for the products to purchase. They can be saved using the app, send via email to family and friends, or be printed at home.Shoppers on-the-go can use Kraft Foods’ app to locate the nearest store stocking exactly the ingredients and products they are looking for..In-storeIn-store, shoppers can check off items from their shopping lists while adding these to their cart. Hence, the app provides a powerful reminder of all the necessary products and helps shoppers to avoid the common annoyance of missing an essential ingredient. Scanning the bar code of certain items automatically completes this step and shows alternative recipes using this very same product.At the cashier then, customers can make use of the coupons they stored previously and this way benefit also in financial terms from using iFood Assistant as a shopper assistant..PostpurchaseReturning from the grocery store, shoppers can now access how-to videos or 1-2-3 push cards with step-by-step instructions for preparing the specific dish they have chosen. After enjoying the meal, customers are encouraged to review and comment on recipes or upload their very own ideas to win prizes thus, further increasing shopper engagement. The next day then, they can return once more to their iFoodAssistant app to find in the Recipe of the Day category the next inspiration..Benefits for Kraft FoodsApart from being a really helpful tool for shoppers by solving one of their everyday intriguing puzzles,iFood Assistant also provides enormous benefits to Kraft Foods. Users are encouraged to register online entering their personal data to get full access to all available tools. This way, Kraft Foods gets access to data on millions of shoppers which allows the food giant to analyze behaviour, preferences and effectiveness of price promotions (i.e. coupon retention). Moreover, the store locator provides a powerful tool to drive traffic to retail partners and hence, contributes positively to fostering bonds with retail partners..In our previous Chapter “Clash Of The Titans – How FMCG Can Compensate For Retailers’ Head Start In Shopper Marketing” we discussed the importance of manufacturers access to unique shopper insights. Also developing a platform just like Kraft Foods’ iFood Assistant helps manufacturers to raise their bargaining power with retailers..ConclusionKraft Foods’ holistic approach to solving shoppers’ real-life problems by providing them with a consistent set of tools along the entire path to purchase convinced shoppernewsblog to award them the Shopper Solution Of The Month.Kraft Foods achieved to develop one of the most succesful apps developed by a manufacturer so far by paying close attention to their shopper needs. Although their products take a backseat in the application to not ward of customers, there is no doubt the app positively affects sales, brand indicators and customer loyalty. According to the food giant, “after six months, 60% of users are still using the app regularly“¹.Congratulations to Kraft Foods for developing an outstanding tool which makes optimal use of technology to drive real world sales by helping shoppers to solve concrete problems!
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Rise of the private label:During the recession, many manufacturer brands focused on extended deals to counter the switch to cheaper DOBs (the value pack that has become the norm), rather than giving shoppers enhanced reasons to believe to drive loyalty. In many instances, this has eroded brand value:The increase in innovation and formulation efficacy has raised the bar for DOB performanceShoppers are smart – they know that the DOB is manufactured by the same people who make the branded goodsUsing a DOB is now a sign of “smart shopping” rather than purely an affordability issue as it may have been in the past.Rise of the convenience shop:More frequent, shorter shopping trips that are purpose-driven means that shoppers spend less time at the shop shelf – dashing in and out to fulfil a specific need, less browsing & comparison time means that they have made their purchase decisions before setting foot in the store.Marketing to these shoppers is far more difficult and requires engagement long before the retail environment is reached. In store activity in this context provides reminders and affirmation, rather than POP behaviour changes.Shopper solutions:Although not new in a global context, this is an emerging trend in SA. Two examples of this:Cashbuild – creating “solution baskets” for common home improvement projects (Renovate Your Bathroom promo) and have gone as far as including finance to purchase this as wellWW – eat in for four for R150 meal deals as well as using their magazine to prompt trail of new products within appetising recipesPick n Pay – using their magazine to demonstrate meal solutions, with convenient shopping listsOnline shopping:Although still relatively limited reach and new to South Africans, it won’t be long before the typical first world pattern of “research online, evaluate in retail, buy online” becomes a reality… the first two actions are already being established, with purchases showing exponential growth.E.g. Pricecheck.co.za have extended their reach from just being a “research tool” to driving purchases with their Savemedeals.com group buying serviceOnline sourcing:If you are considering jumping on the app band wagon, give careful consideration to the role and content of it. Aps need to add real value to the shopper experience (as demonstrated by Kraft Foods) – gimmicks and over product-pushes are not going to be sufficient to get shoppers to engage with you. Rather, we need to identify the relevant shopper insights and build aps that support a need, not aps that try to sell products.
  • Taobao = online, Chinese “eBay” shopping siteBaidu = chinese language search engineQQ = (Tencent QQ) most popular China mainland instant messaging service
  • We evaluated a total of sixty leading brands across the six categories representing the repertoire of products, which average South African women have in their baskets on a weekly basis. Brands within those categories were selected based on market share, marketing activity and the regularity of their appearance in brand surveys, etc. As the aim of the survey is to understand leading shopper brand dynamics, it was necessary to choose established brands
  • Implications:This doesn’t mean that low engagement categories don’t require brand investment nor that high engagement categories require high investment. Rather, we need to find the most effective way of building brands and influencing behaviour, within the context of high or low category engagement.
  • What does this mean for shopper marketing?Whilst traditional measures are important when evaluating past activity and looking for learnings, we need to adopt more comprehensive shopper measurements that provide greater future behavioural indicators. We can then start to leverage key drivers to influence future behaviour.
  • Making the decision to buy something different to the leader brand requires strong conviction and may be attributed to specific consumer-product needs fit. E.g. Fair Cape – dairy with a conscienceSkip – intelligence & science in the laundry processThe importance to brand owners is:If you are a challenger brand, you need to demonstrate leadership – not claim it. (an Avis proposition… we try harder)
  • The following three examples demonstrate how these brands effectively work their way into shoppers’ communities, rather than expecting shoppers to engage in the brand’s community.This is a critical learning for enhancing engagement with brands – be that in the form of social media, CSI or other participatory platforms.
  • Low engagement brands:Are low engagement brands wasting cash in store? Should your focus rather be on enhancing brand engagement and affect decisions pre-purchase, than try and fight it out at the shop shelf?High engagement brands:If you are a high engagement brand, you need to carefully consider what you are saying in-store. The messaging needs to include shopper affirmation and not only promotional/deal information.
  • Participation has become one of those generic terms we throw around without really understanding what it means or how to use it effectively.Participation = active, consumer-driven engagement with your brand by choosing to use /engage with or contribute to your brand in their worlds.
  • Social media provides an opportunity to enhance brand participation – but it is important to remember that when shoppers reach out, you are ready to listen & respond.Enabling shoppers to share the brand in a meaningful (and expressive) manner, is more powerful than driving a message into the social media space e.g. Clover’s peer rating option
  • Coupons and competitions are part of the expected deal environment and are not considered differentiating participation platforms.Rather, websites and in-store promoters offer the greatest opportunity to start the participation process.Therefore, it is critical that you:Give due consideration and apply suitable screening criteria to the people you select to represent your brand in-store. Its not just a pretty face, but an avid passion for the brand that turns the promoter into an in-store ambassador. They need to be equipped with brand information beyond the deal/promotion and be encouraged to actively engage with shoppers.Rather than focusing on the social media trend, your website can (and should) be your anchor brand asset, designed around shopper needs and it enabling sharing.
  • Low engagement brands in low engagement category (e.g. Dr Oetker, Rhodes, Fair Cape):Dealing creates momentary ambivalence, rather than sustainable long term behaviour changeYou need to look for ways to enhance your overall brand engagement within the category, before POP, to help entrench behaviour/brand preferenceHigh engagement brands in low engagement category (e.g. McCain, Clover, Koo):Need to support purchase decisions with tangible, relevant innovation that links to defined shopper needsDon’t fall into the trap of permanent dealing as you will eventually erode your brand equity and further open the door to competitor trial
  • Low engagement brands in a high engagement category (e.g. Skip):Demonstrate efficacy pre-purchase and reinforce/remind in storeUse deals to attract attention in-store, to induce trial amongst ambivalent/curious shoppersHigh engagement brands in high engagement category (e.g. Vaseline):In-store messaging should focus on affirmation, supported by strong reasons to believe and cyclical deals (not discounting for the sake of it… link it to seasonality or other cause)Maintain brand building pre/post purchase
  • Yellowwood Engager 2012

    1. 1. A closer look at the role of brandengagement in driving purchase decisionamongst SA female household shoppersEngager™ Shopper Deep-dive: August 2012 1
    2. 2. Shopper marketing is rapidly encroachingon traditional media budgets With an estimated 5% annual growth rate in advertising spend globally, digital and shopper marketing are rapidly encroaching on the budgets of traditional media … and within this, shopper marketing is rapidly closing the gap at an estimated 21% annual growth rate expected in 2012 2Source: Global Advertising Forecast from Strategy Analytics, February 2012
    3. 3. With this shift in investment in mind, we need to ensure that ourmarketers are well-equipped for success Shopper marketing shifts the focus from product- to shopper- led marketing - decisions need to be driven by shopper-specific insight and behaviours.We have used the power of Engager and the collective insight of Yellowwood to demonstrate the needfor marketers to critically evaluate their approach to shopper marketing. One size does not fit all and ashotgun approach will not yield the desired results. 3
    4. 4. There is more thought and preparation going into shoppingtoday than ever before A convention-challenging finding by A longitudinal study of shopper attitudes Campbell’s research suggests that 80% and behaviours in the USA indicates that of grocery brand decisions are made recessionary behaviour has stuck… more before shoppers even get to the store. consumers pre-plan purchases, stick to Their research identified the importance their lists and compare prices before they of purpose, context and proximity to reach the store than ever before. And consumption all being critical influencers even though the recession is formally of the purchase decision. over, this behaviour continues to drive much of mainstream shopper behaviour www.retailwire.com, 8 August 2011 in 2012. Symphony IRI MarketPulse Surveys 2011/2012 4
    5. 5. There is more thought and preparation going into shoppingtoday than ever before A convention-challenging finding by A longitudinal study of shopper attitudes Campbell’s research suggests that 80% and behaviours in the USA indicates that of grocery brand decisions are made recessionary behaviour has stuck… more before shoppers even get to the store. consumers pre-plan purchases, stick to Their research identified the importance their lists and compare prices before they of purpose, context and proximity to reach the store than ever before. And consumption all being critical influencers even though the recession is formally of the purchase decision. over, this behaviour continues to drive much of mainstream shopper behaviour www.retailwire.com, 8 August 2011 in 2012. Symphony IRI MarketPulse Surveys 2011/2012Shopper marketing is not just about what happens in the store at POP, butrequires a comprehensive approach to engagement along the full purchase journey. 5
    6. 6. CASE STUDY: Kraft’s iFood Assistant closes the loop by accompanying the shopper along the whole journey Although the intent is to drive Kraft sales, the app is focused on the shopper and uses a combination of technology solutions (geo-location, QR codes, integration into social media for peer reviews etc.) to create a very engaging experience. 6Source: Shoppernewsblog.com, August 2012
    7. 7. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 7Source: Desk research, various articles and reports
    8. 8. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 8Source: Desk research, various articles and reports
    9. 9. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 9Source: Desk research, various articles and reports
    10. 10. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 10Source: Desk research, various articles and reports
    11. 11. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 11Source: Desk research, various articles and reports
    12. 12. Some of the leading trends affecting shopper behaviour Requires collaboration between To counter this, brands need to Increase in quick trip shopping retailer and manufacturer to focus on innovation that adds patterns, facilitated by increased create a memorable and real consumer value (quality access to convenience stores in appealing shopper experience - convenience, health & wellness SA – exemplified by WW Food driving footfall & brand preference are the current drive areas) to (Convenience stores accounted avoid the discounting trap for US$1.4 bn revenue in SA, 2009) In a bid to try & disrupt habitual Massive increase in access to Leading online shopper activities shopping, more and more retailers smartphones & Internet changing are price comparisons & product are offering shoppers solution the way that South Africans information sourcing. Who needs ideas.. Be that in the form of shop… Online shopping valued at a retail/brand apps when you recipes, “dinner tonight” ideas or ~ZAR2bn in 2010, with 30% have Google? Content, payment home improvement solutions, this growth projections compared to & auto-replenishment aps will be is a great way to introduce 7% for traditional retail the future winners shoppers to new brands & products www.southafrica.info 12Source: Desk research, various articles and reports
    13. 13. 13
    14. 14. The highest number of retailers in the Top 20 listing amongstcountries surveyed in 2011 Understanding the customer journey – how different segments make decisions, the influencers of those TAKE ACTION: decisions & drivers of engagement – is a critical component for future Ensure you are success. engaging your shoppers at critical Then we can plan where we need to moments of truth, be and when, with what tools, offers with the right or experience to engage the shopper influencers. 14
    15. 15. In 2012, we have done a deep-diveinto shopper behaviour and the roleof brand engagement in drivingdecisions…
    16. 16. …is a research toolto help evaluate the depth and drivers of engagement with your brands
    17. 17. There are 9 pillars that contribute to theBrand Engagement framework Brand engagement 17
    18. 18. The sample is demographically representative of the SA online consumer market - drawn from a reputable consumer panel. 18
    19. 19. According to AMPS 2011… 20
    20. 20. For the purposes of our survey, we… Disproportionate amount of influence over the household purchase decisions More flexibility in their monthly grocery spend – although still price conscious, there is room to manoeuvre in what they choose to buy With the rapid growth in internet access through smart phones, this is the future market who will be shopping and engaging online Large South African consumer panel, drawn from all regions and demographics within our target audience 21
    21. 21. 6 everyday grocery categories were used to help inform ourshopper insights 22
    22. 22. …and a total of 60 leading brands across the 6 categorieswere included 23
    23. 23. Brand rankings based on Engager Index Tastic 143 KOO 141 Clover 133 Vaseline 152 Sunlight 148 McCain 139 Fatti’s & Moni’s 135 All Gold 139 Flora 131 Dettol 151 Handy Andy 145 I&J 129 Knorr 134 Crosse & Blackwell139 Danone 129 Dove 147 Sta Soft 143 Rainbow 121 Albany 129 Lucky Star 127 Parmalat 126 Johnson & Johnson 147 Domestos 136 Sea Harvest 118 Royco 129 Wellington’s 119 Rama 125 Aquafresh 146 Jik 135 Harvest Time 114 Sasko 123 All Joy 110 Stork 125 Nivea 144 Omo 130 Nature’s Garden 114 Blue Ribbon 118 John West 110 Ever Fresh 116 Lux 141 Mr Muscle 128 Today 114 Ace 113 Heinz 109 Dairybelle 114 Colgate 138 Vanish 126 County Fair 107 Iwisa 110 Rhodes 108 Fair Cape 105 Dawn 129 Skip 115 Fry’s 101 Surprise 108 Farm Girl 98 Bonnita 102 Mentadent P 126 Bioclassic 105 Dr Oetker 93 24
    24. 24. 5 Key Shopper Themes Investigated
    25. 25. 1.Why is brand engagement importantwhen considering shopperbehaviour?
    26. 26. Brand engagement sets the context for our shopper marketingplans GLOBAL AVERAGE =100 In categories where product efficacy is important, brand engagement is higher… where products are ingredients or there is lower risk in trial, brand choice is less important & engagement is lower. 29
    27. 27. Looking beyond traditional brand measurements, brand engagement gives us stronger prediction abilities than historical behaviour .636 .671 The correlation between future .695 purchase intent and brand engagement is significantly stronger than the correlation .707 between historical buying behaviour and purchase intent .692 .855Correlation analysis, significant at p < 0.01 30
    28. 28. 2.So what drives brand engagementamongst SA female shoppers?
    29. 29. The power of emotional brand connections sits at the heart of the most engaging brands Connection Connection Connection Connection Connection Connection Advocacy Advocacy Integrity Integrity Integrity Relevance Understanding Experience Understanding Advocacy Advocacy Understanding Integrity Integrity Advocacy Understanding Understanding Integrity Consistently, across all categories, the emotional connection between the consumer & her brand is key in driving engagement 32Driver analysis, using the top performing brands per category as benchmarks
    30. 30. …whereas our challenger brands have a more rational relationship dynamic Conviction Conviction Conviction Conviction Conviction Conviction Understanding Connection Advocacy Commitment Understanding Advocacy Advocacy Understanding Understanding Understanding Commitment Understanding Connection Advocacy Connection Connection Advocacy Commitment Shoppers have rationalised their purchase decision and actively defend it 33Driver analysis, using the top performing brands per category as benchmarks
    31. 31. Relevance and integrity: Unilever runs a range of “Brands in Action”initiatives that combine tangible customer benefits with smart businessgoals Combining the need to reduce the carbon footprint of the Sunlight brand with tangible socio-economic benefits to the customer, the Sunlight Solar initiative in Durban is a great example of extended, impactful brand relevance
    32. 32. Advocacy: Peer reviews are common practice in the travel industry -Clover uses this feature on their website to drive product trail Across 22 forms of advertising “recommendations from people you know” Is by far the most trustworthy advertising Source for women surveyed in emerging (82%) countries, followed by branded websites (60%, emerging countries)… Nielsen Women of Tomorrow Study, 2011 35
    33. 33. Emotion: Social media provide the ideal platform for buildingemotional connections, allowing shoppers to express themselves “Brands that enhance the quality of emotional connections between consumers will benefit greatly in 2012. The desire Pinterest stats for 2011 For self expression in the home and especially in the kitchen Topics include: Cooking and baking, is the key for many shoppers who want to their personal home décor and fashion amongst others Style to shine. Content that empowers shoppers together Monthly page views: 421 million With the expanding smartphone usage and lifestyle sites Unique visitors: 3.3 million Such as pinterest and will be setting new standards for Self expression.” Thelaunchblog.com/2012 digital and mobile shopper marketing trend: Self expression, January 2012 36
    34. 34. 3.How do in-store touch points impacton brand engagement?
    35. 35. Engaged shoppers are more likely to see and respond to yourin-store activity 38
    36. 36. Shopper marketing is more than retail activationIt needs to take into consideration the fact that many decisions are made or influenced byfactors outside of the store… consumption occasions, predisposition to brands, shoppingtime etc. In store promotions may sway undecided consumers, but it is not going to driveengaging relationships.A virtuous cycle… engaged shoppers notice your in-storeactivity more, affirmingtheir decisions at point of purchase Or wasted effort… Disengaged customers are less likely to even notice you, never mind respond to your in store messaging 39
    37. 37. 4.How important is participation really?
    38. 38. Participation is an important, although often under-utilised element, in growing brand engagement in the SA market McCain .542 Sunlight .491 KOO .544 Dr Oetker .479 BioClassic .544 Farmer Girl .589 Clover .554 Tastic .533 Vaseline .480 Bonnita .566 Surprise .585 Mentadent P .516 A statistically significant contributor to building brand engagement, there is latent potential in harnessing participation opportunities to build your brand.** Correlation analysis, all values are significant at p < 0.01 41
    39. 39. High engagement brands see a correspondingly higher level ofparticipation across platforms Promoters in engagement Competition participated Coupons in Call centre participant Facebook Category Website Actively Twitter Panel store store H 42% • • • • • • • H 36% • • • • • M 36% • • • • • • • M 33% • • • • • • • L 25% • • • • M 23% • • • • • • • • 42
    40. 40. …whereas lower engagement brands have less active participation fromshoppers Engagement Promoters in Competition participated Coupons in Call centre participant Facebook Category Website Actively Twitter Panel store store H 34% • • • • • • • • H 30% • • • • • M 27% • • • • M 23% • • • • • • M 18% • • • • L 15% • • 43
    41. 41. 5.Breaking through habitualbuying behaviour
    42. 42. The role and impact of in-store shopper marketing is influencedby the level of category and brand engagement The POPAI Shopper Engagement Study 2012 identified in-store visual displays as being key to influencing decisions at POP The study found that 1 in 6 purchases in lower brand engagement categories (pet food, dishwashing soap, pickles etc.) were made when a display was present in store 45
    43. 43. Shoppers in lower engagement categories are more vulnerable toin-store activity 2-for-1 deal 2-for-1 deal 2-for-1 deal 2-for-1 deal Value combo pack Value combo pack Value combo pack Value combo pack Free item Extra quantity for Fee item Extra quantity for Just about any free item, value Value Pack free, % discount & in-store activity is pack & charitable In-store sampling charitable donation likely to affect donations ambivalence It’s easy to create a sense of ambivalence and get shoppers to reconsider their purchase in low engagement categories.But the implications of this are quite different, depending on whether you are a brand with high or low engagement within these categories. 46*Drive change = at least 25% claiming would change brand for this**Drive ambivalence = at least 50% claiming would consider a brand change for this
    44. 44. Shoppers in higher engagement categories are less susceptibleto competitor in-store activity Value pack Two for the price of one Two for the price of one Value pack Extra quantity Nothing overtly strong Charitable donation enoughTo drive ambivalence Free item In categories driven by efficacy, in-store activity and discounting alone won’t create a sustainable change in behaviour*Drive change = at least 25% claiming would change brand for this 47**Drive ambivalence = at least 50% claiming would consider a brand change for this
    45. 45. Implications for building brandsamongst shoppers
    46. 46. Key take-outs1. Consider your shopper insights programme and ensure that you have predictive measures, not just retrospective views2. Category context is key to defining the right shopper marketing strategy for you3. Understanding the level of pre-purchase engagement of your brand is key to developing appropriate shopper marketing strategies4. Retail marketing ROI is heavily influenced by the pre-existing brand relationships – protecting your brand from competitor noise requires strong pre-purchase engagement5. There is untapped potential in brand participation – both in enhancing brand engagement, but also in encouraging shoppers to bring you into their worlds 49
    47. 47. Thought starters for Shopper Marketing in SA:What to consider if you are…Operating in a low Operating in a highengagement category engagement category • In-store activity is key to driving • Pre- & post-purchase brand building yields ambivalence greater shopper marketing ROI as they are • Need to find non-price based more likely to see & respond to your in- mechanisms that don’t erode brand store messages value, for enticing trial in-store - shoppers • In-store activity helps to reinforce positive are open to persuasion at POP brand associations and reduce • Identify ways in which to build emotive vulnerability to pricing sensitivity & connections with shoppers, not just the competitor activity at POP traditional functional focus of low • Digital platforms provide ideal engagement categories opportunities to engage and socialise with shoppers, who are more open to brand messaging and sharing your brand with othersBuild your brand holistically – shopper marketing has the ability to extend andenhance brand engagement, but you need a pre-existing relationship with your shoppers to optimise ROI 50
    48. 48. Thank you for your time…If you would like to know what EngagerTM can dofor your brand, we’d love to chat:info@ywood.co.za@askYellowwood

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