Radius shopper marketing - the full story


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1. What is shopper marketing all about?
2. The retailer
3. Shopper Vs. Consumer
4.1. Shopper ergonomics
4.2. Shopper behaviour
5. Great shopper marketing
6. Shopper research

Published in: Business, News & Politics

Radius shopper marketing - the full story

  1. 1. Europe  and  Asia     New  York  –  San  Francisco  -­‐  London  –  China   SHOPPER  MARKETING  IN  SIX  STEPS  
  2. 2. Radius Global EMEA 2 Workshop agenda 1. What is shopper marketing all about? 2. The retailer 3. Shopper Vs. Consumer 4.1. Shopper ergonomics 4.2. Shopper behaviour 5. Great shopper marketing 6. Shopper research
  3. 3. Radius Global EMEA 3
  4. 4. Radius Global EMEA 4
  5. 5. 1.  What  is  shopper   markeIng  all  about?   Exploring how shopper marketing came about and clear definition
  6. 6. Radius Global EMEA 6 70%  of  all  purchase   decisions  are  made  at   point  of  purchase?   Who said that?
  7. 7. Radius Global EMEA 7 Some claimed statistics 70% of all purchase decisions are made at point of purchase? Two out of every 3 shoppers do not have a clue which brand they plan to buy until they’re staring at the supermarket shelf. Ref. Forbes, May 1991 Mobile phone commercial sales is estimated to be £12 Billion in 2013 There’s an estimated 752 Billion mobile users (2016) Smartphone adoption has reached 53% in USA in 2012 of mobile phone subscribers. 85% of shoppers globally say social media helps them shop better and faster via friends recommendation Ref: www.myshopper360.com, Deliotte LLP, Forrester Research, Wall Street Journal, Nielsen, RSR Research, Marketing Charts
  8. 8. Radius Global EMEA 8 70% of all purchase decisions are made at point of purchase? How  true  is  this  statement?   Where’s  the  evidence?   Do  you  believe  that?   Beer  50%   Healthcare  25%   Pre-­‐loaded  brain   Adver,sing   Social  media   Brand  preference   Experiences  
  9. 9. Radius Global EMEA 9 So what is the difference?
  10. 10. Radius Global EMEA 10 Social media has empowered the consumer shopper †  They’re informed †  They get expert advice †  Their key influencers are… •  Mum (matriarch's) •  Friends and bloggers •  Product reviews online •  Blogs (private interest groups) …but their final decision is at PoP In-store or online Your last chance to influence Don’t  forget   a,ersales  
  11. 11. Radius Global EMEA 11 What we used to do is now all online
  12. 12. Radius Global EMEA 12 The Outernet is the new shopper and consumer world
  13. 13. Radius Global EMEA 13 What is shopper marketing?   Shopper  Marke,ng  uses   shopper  and  consumer    insights   to  engage  the  shopper  at  the   point  of  purchase  (‘moment  of   truth’).      
  14. 14. Radius Global EMEA 14 Market   Targe,ng   Awareness   Understa nding   Believab ility   Desire  Find   Purchase   Like   Prefer   Consumer   Marke,ng   Shopper   Marke,ng   Consumer   Marke,ng   Purchase   Inten,on   Repeat   Loyalty   Point  of   Purchase   Moment  of   Truth   Trial   Above  The   Line   It is often a neglected part of marketing… ‘the  point  of  purchase’    
  15. 15. Radius Global EMEA 15 …it used to be about Distribu,on   Adver,sing   Powerful   brands  
  16. 16. Radius Global EMEA 16 …shopper marketing has taken centre stage Brand   marke,ng   • Brand   adver,sing   • Distribu,on     Category   management   • Range   management   • Segmenta,on   • Consumer  needs   ECR  (efficient   consumer   response)   • Efficient  supply   and  demand   • Cost  and  supply   processes   Shopper   marke,ng   •  Marke,ng   at  the  point   of  purchase  
  17. 17. Radius Global EMEA 17 Power  in  the   hands  of   manufacturers   The  power   moved  to   retailers   Power  is  now  in   the  hands  of   consumers   Social media is supplementing the mass media of the past
  18. 18. Radius Global EMEA 18 Marketing has moved on too.. ATL  (above  the  line)  dominated  with  TV  adverts  and   main  stream  media.   Media  became  fragmented  with  mul,ple  TV  channels   and  online   Retailers  became  expert  at  retail  marke,ng  and  learnt   to  influence  and  control  the  purchase  at  POP   Online  penetra,on  has  grown  along  with  online   shopping  from  home   Mobile  online  shopping  and  the  use  of  Apps  has  given   shoppers  greater  freedom,  control  and  choice.   Consumer  shoppers  now  research  online,  buy  or   review  offline  (in-­‐store)  and  may  return  to  buy  online.   WHAT’S  NEXT?  
  19. 19. Radius Global EMEA 19 New name, same issues, but in a changed environment The brand approach †  How can we maximise sales? †  How can we prevent my customers going to another brand/retailer? †  How can we gain new shoppers/consumers? The category management approach †  How can we meet consumer needs? †  What is the optimum range? †  How do consumers/shoppers segment the range? †  Where are the gaps and opportunities? †  How can we make it easier for shoppers to buy more? Shopper marketing †  How can we influence shoppers at point of purchase? †  Where and how best to allocate marketing spend?
  20. 20. Radius Global EMEA 20 In theory †  Meet consumer/shopper needs and they will come (buy)? †  …but do they realise/know? †  What of unknown/unmet needs? †  Where are the real opportunities? Desire  before  the  need   There’s  clearly  s,ll  a  need  for  adver,sing   and  promo,on,  only  in  different  forms  of   communica,on  and  integrated/connected     across  several  new  and  different  channels  
  21. 21. Radius Global EMEA 21 Shopper marketing has moved on too …before, it was a revelation that ‘above the line’ advertising and promotion was losing out to the ‘point of purchase’. The power had moved to the retailer as they became smarter at shopper marketing through their own brands, category management, more sophisticated in-store marketing, their own advertising campaigns and of course their online shopping. …but now shoppers are taking centre stage. Social media has given them the power of easy convenient connection. Access to information, product reviews and consumer experiences. Along with the recent economic pressures, this has spurned new shopping behaviours. The smart shopper can ignore traditional advertising messages and make better informed purchase decisions. Evolu,on   •  ATL   POP   •  Retailer  marke,ng   •  Category  management   Shopper   •  Social  media   •  Informa,on,  product  reviews   Smart  shopper   •  Advert  immune   •  ROBO  behaviours  
  22. 22. Radius Global EMEA 22 Lets not fool ourselves, they’re still in-store The key is to understand how to get through to this new smart consumer, to understand the new shopper touch points and use that knowledge to influence the point of purchase. Consumers are still driven by brand loyalty, awareness and emotional attachments. Shoppers are still influenced by ATL advertising. They are pre-loaded with brand preferences, past experiences and a ‘purchase decision narrative’, ready to find and select their chosen product. Shoppers (whether in-store or online/mobile), can and are influenced at the ‘point of purchase’, only their consideration routines and purchase route has changed. New  shopper  touch  points   • Influence  POP   Drivers  are  not  changed   • Brand  loyalty  and  awareness   • Emo,onal  aaachments   Shopper   • ATL  s,ll  influences   • Pre-­‐loaded  preferences   • Purchase  decision  narra,ves   POP  is  in-­‐store  and  online   • New  considera,on  rou,nes  
  23. 23. Radius Global EMEA 23 What is shopper marketing?   ..so,  shopper  marke,ng  is  about   understanding  the  new  shopper   behaviour  and  using  that  knowledge  to   manage  the  marke,ng  mix.     The  aim  is  to  affect  change  in  shopper   behaviour  with  the  objec,ve  of  driving   brand  consump,on.      
  24. 24. Radius Global EMEA 24 Shopper marketing applies to any environment where people make purchase considerations or decisions From banks, to burger bars, to bazaars… Banks   Burger   bars   Bazaars  
  25. 25. Radius Global EMEA 25 …but wait, have we forgotten something? …who’s  shopping  now?   Ref.  The  last  days  of  Woolworhs  
  26. 26. Radius Global EMEA 26 Omni-retailing: Showing retailers going out of business The list of retailers going out of business, partly due to a lack of Omni- retailing and not adapting to the new smart shopper is extensive… †  MFI †  Woolworths †  Barratts †  Kwik Save …and those struggling include: †  JJB Sports †  Clintons Cards †  The Works †  Game Ref.  Barry  Moles,  Bluefin  Solu,ons  
  27. 27. Radius Global EMEA 27 The story of the little red kettle Open plan living trend †  Live in a flat with open kitchen extending off the lounge area. Noise is a problem, especially when you’re watching your episode of your favourite TV soup. †  Need for quiet appliances †  Partner visits kitchen store and asks for a quiet kettle. Answer – “don’t know, but over there are all our kettles”. Partner returns home empty handed and frustrated. †  A quick look on Amazon and within a few minutes a quiet kettle is ordered. Delivered to our door in a few days.
  28. 28. Radius Global EMEA 28 Who is shopping now? Answer: hardly anyone Shopping time spent has dropped from 4.3 to 3 hours per month* 51% of shoppers leave stores empty handed* 31% women/61% men dread shopping* No one actually needs anything anymore. Quality is available, but great service and a great customer experience is lacking in most retailers today. Shopper  marke,ng  should  be   about  delivering  great   (awesome)  customer  service   *Ref.  Tom  Peters,  The  Circle  of  Innova,on  1997,  P455  
  29. 29. Radius Global EMEA 29 WORKSHOP  EXERCISE  1     The  aim  is  to  affect  change  in  shopper  behaviour   with  the  objec,ve  of  driving  brand   consump,on.       Discussion  point:  how  could  shopper  marke7ng   be  used  to  best  affect  change?  
  30. 30. 2.  The  Retailer   Understanding the needs and approach of the retailer is critical for any brand’s success.
  31. 31. Radius Global EMEA 31 Marketing are confusing this with shopper marketing These  are  just  tools  
  32. 32. Radius Global EMEA 32 Retailers think about category sales and shopper needs first, own label brands second and proprietary brands last. Does  the  range  offering   meet  the  customer   (shopper)  needs?   Own  Label  Brand   marke,ng  and  posi,oning   Brands  offered  within  the   category  to  capture  brand   loyalists   ❷   ❶   ❸   Retailer  Marke,ng   Switching  volume   between  brands   Recrui,ng  new   users   Building  addi,onal   usage  of  the   category  
  33. 33. Radius Global EMEA 33 Food  to  go   Fast  food   Petrol  sta,ons   Convenience   Express  high   street   Vending   Corner  shop   Superstores   Coffee  outlets   Franchise  kiosks   restaurants   Pubs  bars   Canteens   Discount  buying   Charity   shopping   Online   Mobile   What’s  next?   So many different channels adding complexity
  34. 34. Radius Global EMEA 34 Vending has created a whole new shopper world in Japan You  can  even  buy  a  smart  car  or  gold  via   vending  machines,  but  there  is  s,ll  a  need   for  marke,ng  at  PoP  
  35. 35. Radius Global EMEA 35 Local home delivery: awesome customer service wins Most  Dubai  residents  call  their  local  Grocery  store  for  delivery  of  staples  like  water  boales   (heavy  to  carry),  however  this  habit  has  extended  to  most  takeaway  foods,  even  coffee  and  ice   cream  from  the  local  café.  All  delivered  by  hand  on  bicycles  to  your  door.  
  36. 36. Radius Global EMEA 36 The retail challenges are interconnected at the PoP Shopper   universe   Low   involvement   products   Associated   purchases  
  37. 37. Radius Global EMEA 37 There are millions of the new smart consumers and shoppers and they are all very different These  smart  consumer/shoppers  are  the   retailer’s  customers  and  they  want  anything   that  helps  aaract  and  sell  to  them.  
  38. 38. Radius Global EMEA 38 WORKSHOP  EXERCISE  2     One  aspect  of  shopper  marke,ng  is  mee,ng  the   needs  of  retailers     Discussion  point:  how  could  shopper  marke7ng   be  used  to  meet  the  needs  of  retailers?  
  39. 39. 3.  Shopper     vs.     consumer   Explores how and why shoppers differ from consumers and how to market to them. Who is the new ‘prosumer’?
  40. 40. Radius Global EMEA 40 THE SHOPPER IS NOT ALWAYS THE CONSUMER †  The shopper often knows what the consumer likes, but may decide to substitute for something else, healthier, cheaper or to their own preference. †  The ultimate decision is at the point of purchase, know as the ‘moment of truth’. There  is  complexity  and  blurring  between  shoppers  and  consumers  
  41. 41. Radius Global EMEA 41 Consumer behaviours are driven by… Needs  and   desires   Purchase   occasions   consump,on   Product   experiences   Social   gra,fica,on   Brand Essence Personality & Values/ Visual Elements Emotional & Functional Benefits Reasons to believe Involvement   Pres,ge   Belonging   Trust  and  safety   Knowledge/physiological   RecogniIon/self   actualisaIon   Hierarchy  of  needs   Mostly   emo,onal   factors   Product   aaributes  
  42. 42. Radius Global EMEA 42 Shopper behaviours are driven by… Store   loca,ons   Channel   selec,on   Shopper   percep,ons   Shopper   needs   Brand   preferences   Point  of   purchase   influence   Purchase   decision   narra,ve   PURCHASE   DECISION   In-­‐store   Online/mobile   Purchase  occasions  and   segment  behaviours   Pre-­‐conceived   Opinions  and   previous   experiences   The  thinking  process   that  helps  shoppers  find   and  select  a  product,   including  criteria  versus   need  (shopper  needs)   Convenience,  entertainment,   researching  or  necessity   Equity,  loyalty,   considera,on,  awareness,   benefits,  aaributes   In-­‐store  and  online   promo,ons  and   adver,sing   and  couponing  
  43. 43. Radius Global EMEA 43 but the shelves are crowded and full of promotional offers… …so  how  can   you  chose  in  this   environment?   It’s  crowded,  highly  compe,,ve  with  many  choices,  along  with  promo,onal  offers  and   discoun,ng,  creates  a  very  confusing  situa,on  for  consumers/shoppers  
  44. 44. Radius Global EMEA 44 Breaking  the  promo,onal  spiral   PROMOTIONS  CREATE  LOST  CONSUMPTION   Today  I  bought  some  Centrum  –  the  mul,vitamin  product  from  Pfizer.  It’s   a  regular  consump,on  product,  when  I  have  stocks  at  home.  When  I  go   out  of  stock,  I  don’t  use  it,  maybe  for  several  days  –  that  consump,on  is   lost  –  forever  (no,  I  don’t  guzzle  six  tablets  in  one  go  when  I  finally  buy   them!).   So  what  stops  me  buying?  When  there  isn’t  a  promo,on.  Centrum  is  on   deal  nearly  all  of  the  ,me,  and  now  I’ve  been  trained  to  think  that  full   price  is  “too  much”.  I  delay  my  purchase.  Most  of  the  ,me  that  doesn’t   maaer  –  but  some,mes,  I  run  out  at  home.  That’s  OK  for  me  –  I’ll  survive   without  my  “A  to  Zinc”  for  a  few  days  –  but  Pfizer  have  just  lost  my   consump,on  forever.  It  might  not  seem  like  much,  but  if  I  skip  six  days   that  month,  that’s  a  20%  reduc,on  in  consump,on,  lost  forever.  
  45. 45. Radius Global EMEA 45 ..so, market place execution and brand loyalty is even more important at the shopper’s point of purchase Understanding  shopper  behaviour  becomes  cri,cal  
  46. 46. Radius Global EMEA 46 Emotions play a key role in the purchase decision? Whenever  shoppers  are   faced  with  a  choice,  their   emo,ons  that  trigger  the   behaviour..  These  emo,ons   come  from  the  shopper’s   beliefs  and  a{tudes  about   the  world,  but  are   influenced  by  brand  or   category  beliefs.     Emo,onal  wiring  is  triggered   on  every  purchase  decision,   but  balanced  by  ra,onal   thought  and  self   jus,fica,on.     A  purchase  decision  is  an   expression  of  a  shopper’s   beliefs  and  a{tudes  about   themselves  and  others  in  the   world  around  them.     Ra,onal   Emo,onal  
  47. 47. Radius Global EMEA 47 The shopper and consumer are merging into one
  48. 48. Radius Global EMEA 48 WORKSHOP  EXERCISE  3     The  shopper  and  consumer  are  both  different   and  o|en  at  the  same  ,me,  the  same  person     Discussion  point:  in  what  ways  is  shopper   marke7ng  different  from  brand  marke7ng?     List  at  least  five  
  49. 49. 4.1  Shopper   ergonomics   …some basics all retailers know
  50. 50. Radius Global EMEA 50 What is shopper ergonomics?   ..is  synonymous  with  human  factors,   both  physical  and  psychological.     Shopper  marke,ng  that  takes  into   account  shopper  ergonomics  has  a  far   greater  chance  of  being  both  effec,ve   and  influen,al  on  shopper   behaviours.    
  51. 51. Radius Global EMEA 51 Crowded stores make shopping difficult Known  as  the  ‘Bu_  Brush’,  crowded   stores  can  put  shoppers  off  shopping   and  lose  sales.  This  is  especially  relevant   to  female  shoppers.     In  M&S  the  most  popular  sandwiches   were  concentrated  in  one  place,   making  it  difficult  to  get  to  their   choice  at  busy  ,mes  and  many   shoppers  giving  up.  The  solu,on  was   to  spread  the  popular  sandwiches  out   horizontally  along  the  fixture.     E.g.  counters  designed  to  protect  browsers  
  52. 52. Radius Global EMEA 52 Fixture locations and associated products Mothers  with  children  will  try  to  avoid  the   confec,onary  aisle.  By  strategically  placing   essen,als  on  the  opposite  side,  they  have   no  choice,  but  to  visit  this  aisle     Equally,  by  placing  associated   products  together,  can  greatly   increase  sales  and  help  the   shopper  find  all  the  items  they   need   Ask  the  ques,on:  who  actually  buys/makes   the  purchase  decision/selects  the  product   in-­‐store?    DOG  CHOCOLATES?   Pester  power  
  53. 53. Radius Global EMEA 53 The old theory about the diamond and eye level
  54. 54. Radius Global EMEA 54 In practice the shape is more like a kite or comet People   tend  to   look  down  
  55. 55. Radius Global EMEA 55 …but our research has shown that people are attracted by… 1   2   3   subcategories of product within the fixture and shoppers will often follow a pattern. These subcategories can be placed strategically to increase profit and build sales with associated product positioning
  56. 56. Radius Global EMEA 56 They look to the right (see and take zone)
  57. 57. Radius Global EMEA 57 In reality, what they actually see is this…
  58. 58. Radius Global EMEA 58 Understanding shopper’s natural pathways †  B y m a p p i n g t h e s h o p p e r pathways, retailers are best able to strategically position products to maximize sales. †  Slow down zone: shoppers need about 4 metres before they slow down and start shopping the displays. †  By accommodating natural human behaviour, where people walk, where people look, how they browse the displays. Is the best way to win sales. †  Thinking about humans and their natural abilities is critical. For example; what is the capacity of the human hand? How much can it carry or hold? Most  people   walk  to  the   right  
  59. 59. Radius Global EMEA 59 Conversion rates †  The most important figure is; how many don’t buy? †  Using large impactful shop displays in the store entrance can slow shoppers down and get shoppers in the mood for buying. SLOW  SHOPPERS  DOWN  ON  ENTRANCE  
  60. 60. Radius Global EMEA 60 What’s wrong with these displays? ?   Understanding   natural  human   behaviour  is  the   key  
  61. 61. Radius Global EMEA 61 Touch and smell = sensual experience and trial SHOPPERS  LOVE  TO  INTERACT  WITH  PRODUCTS,  EVEN  IF  THE  PRODUCT  IS  NOT   THE  PACK  ITSELF,  THEY  GAIN  INTUITION  AND  ENDORSEMENT  THROUGH  TOUCH   …they  even  need  to  touch  and  feel  books       Most  new  products  fail  through  lack  of  trial    
  62. 62. Radius Global EMEA 62 Signage designed in a conference room or office? Does the signage work in-store? †  Shoppers very rarely stop and look and stay in one place. †  It’s unnatural for shoppers to look sideways when walking down an aisle. They need to look forward to make sure they don’t walk into something. Walking sideways. †  What do they notice and what causes shoppers to take action? EYE  TRACKING  IN-­‐STORE  CAPTURES  WHERE  THEY  LOOK   THE  STORE  HAS  BECOME  A  3D  TV  COMMERCIAL   Where  do   shoppers  stop   and  look?   wai,ng  areas  
  63. 63. Radius Global EMEA 63 Where do people stop and look? Inves,ng  in  the  right  in-­‐store  loca,ons  and  materials     In-­‐store  video  display  in  M&S   strategically  placed  by  the   checkout  and  wai,ng  room   Supermarket  checkout  –  the   one  thing  everyone  looks  at   are  other  people  
  64. 64. Radius Global EMEA 64 Men shop differently to women Men prefer to read packaging and gain product information first hand. Male linguistic terminology is often different to women’s. Language used in shopper marketing materials can make categories inaccessible to either gender. Many male oriented store environments (car dealers/home wares) are alien to women, yet women are often 50% of shoppers. Shopper marketing needs to take into account gender differences
  65. 65. Radius Global EMEA 65 Family shopping and age factors Products  at   kids  level  
  66. 66. Radius Global EMEA 66 As people live longer, they have different needs Thinking  about  shopper  needs,  presents  new  shopper  marke,ng  opportuni,es   Free  coffee  in  Albert  Heijn   Sea,ng  and  special  trolley’s  for  the   elderly  in  S&M  Philippines  
  67. 67. Radius Global EMEA 67 How long do shoppers spend on any one display †  Ask any brand marketer, how long a shopper spends on their category and you’ll often hear the answer “on 5 minutes, maybe 10”
  68. 68. Radius Global EMEA 68 2 seconds to read a sign or package front Can  they  read  the  text?     How  much  of  the  sign  did  they  read?    
  69. 69. Radius Global EMEA 69 Samsung and Dubai seem to have cracked this… Think  Blue   Sheikh  Zayed  road  advert  
  70. 70. Radius Global EMEA 70 WORKSHOP  EXERCISE  4.1     List  the  top  5  most  important  shopper   ergonomic  factors  likely  to  affect  your  category   and  detail  the  consequences  and  ac,ons   needed  –  see  diagram  below   Ergonomic  factors   Consequences  and  acIons  needed…   1.   2.   3.   4.   5.  
  71. 71. 4.2.  Shopper   behaviour   This demonstrates how and why these two factors are the basis of good shopper marketing.
  72. 72. Radius Global EMEA 72 TARGET   TV  and   print   adds   Visit   store   Compare   Choose   BUY   What used to be where the shopper had less little influence awareness   considera,on   engagement   Loyalty      
  73. 73. Radius Global EMEA 73 …but the shopper has gone online and mobile The  ‘prosumer’  is  expressing  their  views   and  repor,ng  experiences  in  reviews   etc,  as  they  shop  online/offline.  
  74. 74. Radius Global EMEA 74 ROBO (Research online, buy offline) • I  want  to  get  fiaer/slimmer   • I  could  use  a  bike  to  get   around   • Ah  but,  I  don’t  like  those   new  bikes,  they  hurt  my   back  leaning  forward   Need  -­‐  desire   • Where  can  I  get  an  upright   bike  or  one  with  a  higher   handlebar?   • Found  Halfords  –  not  sure   if  they  have  them  or  can   help?   • Found  Jakes  Bicycle   Conversions  –  helpful   advice   • Found  blogs  on  upright   bikes  –  useful  informa,on   • Found  Dutchie  bikes  –  but   a  bit  expensive   Research   • Visited  Halfords   • Saw  a  bike  I  liked,  but  would   need  conver,ng   • Staff  clueless  and  did  not  think   it  could  be  done!   • They  tried  to  sell  me  a   woman’s  bike  –  eek!   Review  offline   • Considered  going  to  Holland   and  buying  a  second-­‐hand  bike   there   • Could  be  fun  J   • Bought  online  –  perfect  bike   and  good  a|ersales  help  –  I   would  recommend  them.   Bought  online   Disconnected   retail   experience   PROSUMER  
  75. 75. Radius Global EMEA 75 Active mobile shopping… Picking  up   promoIonal   offers  on  the   smart  phone   whilst  shopping   in-­‐store   The  ‘prosumer’  is  expressing  their  views   and  repor,ng  experiences  in  reviews   etc,  as  they  shop  online/offline.  
  76. 76. Radius Global EMEA 76 Redeeming vouchers and researching products in-store The  mobile  phone  is   becoming  the  main  shopping   tool  of  the  future.  The   prosumer  is  using  it  as  a  way   to  report  experiences   Taking  a  picture  or  scan  to  con,nue  their   research  online  later  
  77. 77. Radius Global EMEA 77 Online couponing has grown exponentially
  78. 78. Radius Global EMEA 78 Shopping or researching whilst mobile in odd free moments “I’ll  just  do  my  grocery  shopping  whilst   on  the  train”     “I’ll  just  tell  them  what  I  think  about…”  
  79. 79. Radius Global EMEA 79 Understanding the buzz (what are they saying online?) 1,000s  of  online   and  mobile   stories  at  the   point  of  purchase   4  out  of  5  mobile   users,  use  their   phone  to  help   with  shopping   Ref.  Google  
  80. 80. Radius Global EMEA 80 High street shopping experience; more ‘shoppertainment’ Research  online  (home  and  mobile)     Mobile  phones  also  help  shoppers  decide  where   they’re  going  to  shop,  it’s  part  of  the  review   process  and  prosumer  behaviour     LocaIon,  locaIon,  locaIon     Going  shopping  is  becoming  more  of  an   entertainment  experience  –  a  day  out     ENTERTAINMENT     Products  can  be  experienced,  reviewed,  tested  and   more  informa,on  gathered  in-­‐store     CONSIDERATION     …but  they  may  decide  to  buy  online  
  81. 81. Radius Global EMEA 81 Different types and occasions for shopping Spontaneous  purchasing     Considered  purchasing   E.g..  Camera  shopping   •  Ease  of  use   •  Not  too  heavy   •  Takes  great  photos   •  Zoom  and  focus   Everyday  grocery   shopping     Research     online   Don’t  forget   a,ersales  
  82. 82. Radius Global EMEA 82 The new purchase process Need/ desire   research   decision  purchase   A|er   purchase   ENGAGE   Online  reviews   A|er  sales   service   User  groups   Online   communiIes   READ   Online  reviews   User  blogs   Offline  research   Considera,on  In-­‐store   Online   Mobile   Awareness   Realisa,on     PROSUMER  
  83. 83. Radius Global EMEA 83 The smart consumer shopper has become the prosumer PROSUMER:  It  can  also  be  used  to  differen,ate  the  tradi,onal  passive  consumer  with  an  ac,ve   consumer  role  more  involved  in  the  process,  such  as  ac,vity  in  the  design  or  customiza,on  of   the  end  product.   Brand  sponsored  consumer   community  panels  are  evolving  and   being  used  for  shopper  research  
  84. 84. Radius Global EMEA 84 WORKSHOP  EXERCISE  4.2     Taking  ROBO  into  account,  detail  the  possible   shopper  journey  and  the  shopper  marke,ng   that  could  be  applied  at  each  point   1   2   3   4  
  85. 85. 5.  Great  shopper   markeIng   How to achieve effective shopper marketing. Looks at strategies and tactics and explores how to apply them to your category.
  86. 86. Radius Global EMEA 86 Sales   growth   Increase   penetra,on   Increase   frequency   Increase   spend   Shopper marketing is essential for consumer brands to… Generate   consumer   demand   Mo,vate  the   retailer  to   support  the   brand  in-­‐store   Encourage   shoppers  to   buy  the  brand   This  is  achieved  through  strategies  that…   …but  first  you  need  to  build  an  understanding  of   the  shopper,  know  their  touch  points  and   triggers  and  then  apply  strategies  that…    
  87. 87. Radius Global EMEA 87 The new purchase process Need/ desire   research   decision  purchase   A|er   purchase   ENGAGE  the   prosumer   Online  reviews   A|er  sales   service   User  groups   Online   communiIes   Help  consumer  shoppers   to  research,  gain   informa,on  and   understand  the  product   and  benefits   Build  on  the  purchase   experience.  Understand   the  shopper,  purchase   occasions  and  purchase   hierarchy   Build  brand  equity  and  loyalty   Retain  consumers/shoppers   Understand  the  key  touch  points   Emo,onal  aaachment   CONVERGENCE  
  88. 88. Radius Global EMEA 88 CONVERGENCE Retailers  wise  to  this  behaviour  are   engaging  ‘Convergence’  where  internet   online  technology  is  used  to  engage  the   shopper  and  in  some  cases  order  product   lines,  versions  and  accessories  that  are  not   stocked  in  the  retail  store.  retail   Online   ROBO   Mobile   Allowing  store  staff  to   connect  directly  with  the   consumer  shopper  online  
  89. 89. Radius Global EMEA 89 Connected purchase touch-points is critical for retailer success †  In this JD Sports example, they have brought their online store in- store and so integrates the two points of purchase (shopper touch- points). †  In-store shoppers can get advice or referrals from retail staff ie they don’t have their size or colour in- store. The product can be delivered directly to their home or they can collect from store (free delivery if collected from store). †  Customers receive an email confirmation and a notification when arrived in-store. †  Cleverly overcomes the barriers – delivery time and cost + returns
  90. 90. Radius Global EMEA 90 Consumer   understanding   Choosing  the   channels   Shopper   behaviours   Shopper   marke,ng   Total  shopper   consumer   investment   Loca,on/ availability   Reaching   consumers   In-­‐store/ online  A&P   Influencing   POP   An integrated strategy is critical to influence the PoP The link needs to be made between the end consumer and the investment in an integrated in-store/online marketing mix Key elements of the marketing mix
  91. 91. Radius Global EMEA 91 Asking the right questions is critical to influence the PoP Asking the right questions can help us to reach the right target and have the most effect and influence on their purchase behaviour. Where  are  the   unmet  needs,  the   market  gaps  and   truly  unique   proposi,ons?     Consumer   understanding   Choosing  the   channels   Shopper   behaviours   Shopper   marke,ng   Total  shopper   consumer   investment   Who  are  our  best   target  and  where   and  how  do  they   shop/purchase?   What  are  the   target  shoppers   purchase  touch   points  and  what   is  their  purchase   route  and   behaviour?   How  can  we   reach  these   shoppers  and   influence  their   purchase   decisions?   Which  shoppers   to  invest  in  and   how  to  best   connect  with   them  and  in   which  channels?  
  92. 92. Radius Global EMEA 92 Loca,on/ availability   Reaching   consumers   In-­‐store/ online  A&P   Influencing   POP   Focus on the areas for change is critical to influence the PoP Key elements of the marketing mix Focus  on   loca,ons  where   there’s  an   opportunity  to   switch   consump,on   habits  or  planned   rou,nes.     Communicate   where  and  to  the   touch  points  and   poten,al  to   trigger  change  in   purchase   decisions   Only  where   there’s  an   opportunity  to   drive  a  long  term   change  in   behaviours  and   purchase.  
  93. 93. Radius Global EMEA 93 Loca,on/ availability   Reaching   consumers   In-­‐store/ online  A&P   Influencing   POP   WORKSHOP  EXERCISE  5   Consider  the  marke,ng  mix  needed…   ?   ?   ?   Complete   the  three   boxes  on   the  le|  
  94. 94. 6.  Shopper  research   The first step to shopper understanding and best approaches
  95. 95. Radius Global EMEA 95
  96. 96. Radius Global EMEA 96 Shopper research: is it true that 70% of purchase decisions are made at PoP (point of purchase)? †  Our research would say not as for example; ‘beer’ (50%) and ‘over the counter medicines’ (30%)? †  ATL (above the line) media has b e c o m e f r a g m e n t e d a n d proliferated by multichannel TV and internet advertising. †  R e t a i l e r s h a v e d e v e l o p e d respected and trusted own brands, that are quickly gaining brand share. †  Marketing has moved in-store and become highly effective. †  The shopper has gone mobile and online. ROBO (research online, buy offline) is one new shopper behaviour.
  97. 97. Radius Global EMEA 97 Researching the shopper has it’s challenges † Understanding and identifying the gap between, what they say and do † Purchase intent versus actual purchase (behaviour) † Access to shopper behaviour – even at odd day parts † Capturing real time behaviour versus ‘remembered’ and ‘socially acceptable responses in focus groups. † Allowing for natural behaviour versus construed and created answers † Understanding the true purchase drivers (emotional) versus the rational reasons to purchase
  98. 98. Radius Global EMEA 98 The age of emotional research and the psycho researcher “would  you  trust   this  man?”   Do  these   techniques   really  work?  
  99. 99. Radius Global EMEA 99 Using the right effective techniques is essential †  Psychographic techniques – do they really work? †  Administered by psychologists or psycho researchers? †  Can you tell a personality by their looks or do you project your pre- conceived prejudices upon them? Are  these  based   on  established   psychological   research?  
  100. 100. Radius Global EMEA 100 Research based on credible and founded techniques steadiness   detec,on  aaainment   belonging   Psychographics   Understand  how  to  gain  brand  share  and   the  compeIIve  a_ributes  and  factors     Based  of  Jung’s  psychologically  researched  and   established  studies  in  human  thinking  process  
  101. 101. Radius Global EMEA 101 Combining shopper and consumer research Helps  us  to  understand  how  a  brand  influences  shopper  behaviour     BRAND  
  102. 102. Radius Global EMEA 102 Ethnography (observation) Understand what they actually do, not what they say Identify usage occasions and needs from real life observation Understand the cultural context and social meaning of products in people’s lives
  103. 103. Radius Global EMEA 103 Video diaries give us access to shopper actual behaviours Unencumbered and true to life 24/7
  104. 104. Radius Global EMEA 104 Ethnography (scrapbook diary) Observa,on   Diary  exercises   Online  tools   Learn  what  consumers   actually  do  and   behave,  not  what  they   say...    
  105. 105. Radius Global EMEA 105 Heuristics in the shopping environment ‘this  brand  makes   me  feel  good’   “I  usually  use   this  product   because...”   Learn  how  to  interrupt  the   decision  point  and  switch   shoppers  to  your  brand   Map the actual decision making process including emotional triggers I d e n t i f y t o u c h p o i n t s a n d opportunities to interrupt and influence purchase decisions Pinpoint the attributes and factors that are most important By  iden,fying  the   cri,cal  touch  points,   its  possible  to   interrupt  the   decision  process   and  switch  brands  
  106. 106. Radius Global EMEA 106 Outernet Online research, communities and focus groups †  Consumers have moved online and in time the physical high street will change its function and role. †  New buying behaviours are already emerging ie ordering online in- store †  Consumers are more likely to share their true opinions online. †  C o n s u m e r s h a v e b e c o m e prosumers online. †  T h e n e w r e s p o n d e n t i s a ‘participant’ and ‘informer’ online †  The outernet is the new library, political polling post, store and social community. Online  Focus  Groups,  online  forums,  Community  panels  and  expert  groups  online   Cloud  compu,ng   and  online  research   Mobile   research  
  107. 107. Radius Global EMEA 107 WORKSHOP  EXERCISE  6     What  shopper  research  is  needed  in  your   category?  
  108. 108. END
  109. 109. Radius Global EMEA 109 Future lectures, workshops and training days †  Shopper Marketing Its claimed that 70% of decisions are now made at ‘Point of Purchase’. Understand how this works and what brands can do about this. How to best allocate advertising spend. †  Innovation & Product development With our training and workshops, clients have developed new and highly profitable products, solved business and team issues and have found profitable new product niches. †  Category Management Retailers used this to decide on ranges to stock and their strategy for the product category. Understand how to become the retailer’s category captain.