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Shopping Occasion Segmentation


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In this presentation, Jeff Maloy discusses how shopper marketers and retailers can benefit from customizing shopper marketing programs and solutions to specific shopping occasions.

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Shopping Occasion Segmentation

  1. 1. Mission Possible: Profiling Shopping Occasions for Retail and Channel PartnersJeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting and ResearchWednesday, May 23, 2012
  2. 2. Who Am I?Jeffrey MaloySenior Vice PresidentCopernicus Marketing Consulting & ResearchLeading our CPG practiceFormer Director of Marketing, with multiple brand and shopper marketing assignments.Developing relationships with clients such as Kraft, P&G, Nestlé, and Hershey’s.Helping my clients develop and execute transformational shopper marketing strategies
  3. 3. JEFFREY MALOY, SVP (203) 831-2375
  4. 4. Why focus on occasions? People are busier than ever Pre-trip planning is up 57% Of shopping trips are occasions-based (buying with occasion in mind) 4
  5. 5. Consumers and Shoppers are often different groups, requiring different marketingstrategies. Consumers Shoppers How, when, where, why How, when, where, why shoppers Focus: consumers use/consume the shop/buy the category category Consumer Insights Shopper Insights Primary End Brand Marketing Shopper Marketing User: R&D Account Teams In-store, Key Marcomm Path-to-Purchase End Uses: Innovation 5 influencers/tactics
  6. 6. The key variables in defining a shopping occasion: Mission Why they shop? Location Where they shop? Navigation How they shop? 6
  7. 7. A shopping occasion segmentation will identify the types of shopping occasions thatexist—and their relative sizes Collect data on severalrecent shopping occasions X 2,000 respondents = 6,000 shopping occasions via diary (or mobile app) OccasionOccasion 2 1 Occasion 3 Who? Who? What? Who? What? What? When? When? Etc… When? Etc… Etc… Segment into 5-10 shopping ―typologies‖ based on trip mission, location, and navigation. 7
  8. 8. When probing on occasions, be very thorough in your line-of-inquiryWhen: Pre-tail: Retail: Post-tail: Day of week?  What ―drivers‖ started the  Where did you go first,  Did you register any shopping process? second, third, etc.? products? Time of day?  What sources did you  What did you consider  Did you tell anyone (face- consult? buying, at each stop? to-face and/or via socialWho: networks)?  Did you make a list?  How long did you spend in Who were you with? each section?  Did/will you review the  Did you talk to friends, product?Why: family, colleagues, about  Key in-store influencers it? during trip? What attributes and benefits  What was the ―market are you looking for from the structure? store and/or specific products?  When/where did ―brand‖Where: play in the decision-making process? Channels, Retailers, Websites 8
  9. 9. Shoppers experience many types of shopping occasionsIt is imperative for Shopper Marketing to understand these occasions, in order to buildactionable programs: Frequent Infrequent Just In Weekly Dash for Bunker Treasure Time Replenishment Deals Mentality Hunt Different on:  Sizing (opportunity)  Trip mission (needs/drivers)  Location (channels)  Navigation (shopping behaviors along P2P) 9
  10. 10. The occasion will be different in terms of sizing and opportunity It is imperative for Shopper Marketing to understand these occasions: Frequent Infrequent Just In Weekly Dash for Bunker Treasure Time Replenishment Deals Mentality Hunt% of Trips 31% 24% 23% 11% 11% % Spent 18% 36% 18% 17% 11% High Frequency High Frequency High Frequency Low Frequency Low Frequency Low Spending High Spending Moderate Spending High Spending Moderate Spending 10
  11. 11. The different types of occasions will cater to different shopper missionsMISSION Just In Weekly Dash for Bunker Treasure Time Replenishment Deals Mentality Hunt When: Last Minute Weekly Weekly Monthly No Set Pattern (rainy day) • Immediate • Fill cupboard • Take • Stock-Up on • Browsing for Why: need due to for week, get advantage of key staples entertainment out-of-stock items on list hot deals value • Store located • Product variety • Special • Staple goods • Enjoyable Needs: close to home promotions • Reasonable • Bulk sizes • Shopping • Easy-to-find prices • Accepts experience/ item(s) manufacturers • Low prices environment • One-stop coupons • Get in/out shopping • Unique, hard- quickly to-find items • Convenient store layout 11
  12. 12. The different types of occasions will occur in different channelsLOCATION Just In Weekly Dash for Bunker Treasure Time Replenishment Deals Mentality Hunt Drugstore Grocery Grocery Club Store Club Store C-Store Supercenter Dollar Store Online 12
  13. 13. It is important to understand the shopper journey during each type of occasion and the key influencers and touch points for eachNAVIGATION Pre-tail Retail Post-tail (Before shopping) (In-store) (After shopping) Perimeter and in-aisle Make List Weekly Review circulars Shopper card Replenishment Online research (product Loyalty programs specs, prices, etc.) Coupons Features, displays, TPRs, sampling Oh shit! In and Out Whew! Just In Time 13
  14. 14. Specifically, it is important to understand the shopper marketing tactics and/orprograms that are influential during each step of the path-to purchase. Pre-tail: Retail: Post-tail:  Advertising  Displays  Check-Out/Bounce-Back Coupons  Word-of-Mouth  Signage  Rebate Programs  Circulars  Sampling  Product Registration  Digital  Manufacturers Coupons  Loyalty Programs  Direct Mail  Packaging  Customer Reviews  Promotions  In-Pack Offers  Retail-tainment  Shopper Card  On-Pack Offers 14
  15. 15. Mobile devices have changed the shopper journey and path-to-purchase 70% Have used a smart phone 77% at beginning of trip while shopping in store: 61% in the middle of trip 43% at the end of trip 15
  16. 16. As a result, nowadays, mobile devices are being utilized throughout the path to purchase Pre-tail Retail Post-tail Mobile Advertising Mobile Coupons Entertainment Registration and Search QR Codes Loyalty Price Comparison Shopkick Social Media Store Locator Foursquare Deals and Offers 16
  17. 17. It is important to understand the linkage between shopping occasions and consumptionoccasions Trip Consumption Missions Occasions (why they (why they use) shop) Need to understand the intersection 17
  18. 18. You should try to connect the consumption occasion and trip mission Size the ―cells‖ in grid below, and identify key products purchased/consumed Consumption Occasions Breakfast Lunch Snack Dinner Winddown Immediate Need $ $ $$ $$$$Trip Mission Replenishment Regular $$ $$ $ $$$ $ Immediate Need Dinner = Easy Meal Solution:  Mom shopping for products for tonight’s family dinner. Long-term Stock-up $ $$$ $ $  Low/no preparation required.  Meal whole family enjoys. 18
  19. 19. By understanding the underlying need and ―market basket‖ during these occasions,retailers and manufacturers can develop powerful shopper marketing tactics andprograms (e.g., cross-promotions) Identify Need: Conduct Market Basket Deliver Shopper-Centric Analysis: Solution Easy meal solution Buy DiGiorno, Get Free 2-Liter Soda Sources:  Retail POS  Homescan Panel Data  Shopper Card Data  Survey Data 19
  20. 20. The shopping occasions differed in terms of trip mission… and sizing…Business Objective: To maximize sales of Halloween merchandise throughout the season (roughly Sept 25 – Nov 5)Research Objective: Understand how/when/where/why shoppers shop for Halloween merchandise Pre-Season In Season Post-Season In the Spirit Passout Buy Liquidation When: Late Sept., early Oct. Week of Halloween After Halloween Self-consumption (candy) Get in holiday spirit Trick-or-Treat passout Why: Stockup for next year Kids’ ―Nag factor‖ Don’t want house to get egged (decorations, costumes) Wide variety of merchandise Fun, seasonal set Good selection of candy My favorite brands Needs: New/novel products Convenient location Reusable merchandise no one else has Low prices Great deals Fun shopping experience % of Occasions: 31% 47% 22% % Merchandise 49% 39% 12% Spending: 20
  21. 21. … and in terms of location shopped... and in terms of merchandise purchased. Pre-Season In Season Post-Season In the Spirit Passout Buy Liquidation Halloween Superstores Supermarket Supermarket Mass Merchant Seasonal Aisle Drug Drug Dollar Where: Costumes Candy (fun size) Candy (leftover) Decorations Trick-or-treat supplies Decorations, costumes (for Party Supplies next year) Greeting Cards What: CDs/DVSs Pumpkins/ Carving Kits Candy (novelty) 21
  22. 22. …Importantly, the occasions also were distinct in terms of the key influencers, therebyinforming future shopper marketing strategies and tactics – by account. Pre-Season In Season Post-Season In the Spirit Passout Buy Liquidation TV Advertising Circulars PRE-TAIL Radio Advertising Cooperative radio Coupons Online Advertising advertising Seasonal Set In-store Signage What: RETAIL Halloween Packaging Feature and Display Liquidation Displays Feature and Display Coupons Bargain bins Cross-merchandising (buy costume, get DVD) Social Networks POST-TAIL Online sweepstakes Rebates Blogs 22
  23. 23. Conclusions The Key to Success Understand the + Offer a relevant + At key = Increased traffic shopping solution engagement points and market occasions along P2P baskets(mission, location, navigation) 23
  24. 24. Understanding shopper occasions benefits all key stakeholders: a win-win-win Better shopping Shopper experience Increased brand Manufacturer/ Increased foot trafficpurchase and loyalty Brand Retailer and market baskets 24
  25. 25. Mark Your Calendars! Wednesday, June 20, 2012 Charting the Shopper JourneySpeaker TBDCopernicus Marketing Consulting and ResearchRegister Now: 20, 2012
  26. 26. JEFFREY MALOY, SVP (203) 831-2375