Shopper Summit - Tyson & Foresight ROI 3/28/2017
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3/28/2018 Shopper Summit presentation from Wendyjean Bennett, Tyson Foods Sr. Director of Shopper Marketing, and Rick Abens, Founder and CEO of Foresight ROI. Shopper Marketing best practices and ROI results for CPG partnerships.
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Shopper Summit - Tyson & Foresight ROI 3/28/2017
- 2. 2 Partnerships in Shopper Marketing are very Successful Industry Averages for Partnership Events Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 3. Why Partners Makes Sense Relevance to Shoppers Strong Cross Purchase Similar Objectives Deliver a Powerful Solution for the Retailer 3
- 4. Evolution of the Partnership…..a bit like dating and can take years to get to the wedding! 4
- 6. Determining the Right Partnership 6
- 7. Partnership Analysis – Strategic Filters 1. Basket Relevance? 2. Shopper Appeal? 3. Drive Period Relevance? 4. Usage Occasions? 5. Purchase frequency? 6. Distribution/Customer Focus? 7. Price Point? 7
- 8. 8 8 Steps 1-4: Alignment & Legal Step 5-7: Process Review & Feasibility Step 8-9: Scope (i.e.: retailers, investment) Step 10-11: Brainstorm, Concepting Step 12-13: Joint Planning, Sell-in Decks Step 14: Execution & Budget Compliance Step 15: Post Analysis Vetting the Opportunity 8
- 9. Roles 9
- 11. LE T ’S CO NS IDER MO M IN JA NUA RY - R E TUR N S CHO O L S EA S O N Her Mindset Persona In-Store Media Incentive s/Offers Her Shopping Behavior
- 12. A ND HE R MEA L MA KING NE E DS 1 2 3 4 5 A well-balanced meal A meal that’s not too hard to make A meal that appeals to the whole family A meal that can be whipped up quickly A meal where the ingredients are mostly on-hand/in-home 12
- 13. WHAT’S FOR DINNER? Source : NPD Eating trends 2014, IRI L52W 8/3/14 • 71% involve chicken • 67% involve salad • Fresh food (salad) consumption is expected to increase more than 11% in the next two years! 13
- 14. Insight: “I want to eat healthier, but struggle to build a well- balanced, flavorful meal, that will satisfy my family—it seems like a lot of things to pull together.” CPG Partner + 14
- 15. 15
- 16. BRINGING THE PARTNERSHIP TO LIFE 16
- 18. 18 Assets to leverage 5 Recipes videos produced by GHTV In-store POS Displays Digital Coupons OLV
- 19. THE RESULTS 19
- 20. 20 Shopper Marketing Best Practices Source: Foresight ROI Shopper Foresight Industry ROI Norms Insights-based Solution Cost Sharing with Partner Customize by Retailer Strategy Frequency/Depth Aligned with Category Shopper Plans Integrated with Trade Relavant Timing, Concept and Creative Communicate Along the Path To Purchase Pre-store Offer In-store Message Digital Tactics NORM % Tyson Compliance Industry Best Practice ROI Impact % Industry ComplianceInsights-based Solution Cost Sharing with Partner Customize by Retailer Strategy Frequency/Depth Aligned with Category Shopper Plans Integrated with Trade Relavant Timing, Concept and Creative Communicate Along the Path To Purchase Pre-store Offer In-store Message Digital Tactics NORM % Tyson Compliance Industry Best Practice ROI Impact % Industry Compliance Insights-based Solution Cost Sharing with Partner Customize by Retailer Strategy Frequency/Depth Aligned with Category Shopper Plans Integrated with Trade Relavant Timing, Concept and Creative Communicate Along the Path To Purchase Pre-store Offer In-store Message Digital Tactics NORM % Tyson Compliance Industry Best Practice ROI Impact % Industry ComplianceInsights-based Solution Cost Sharing with Partner Customize by Retailer Strategy Frequency/Depth Aligned with Category Shopper Plans Integrated with Trade Relavant Timing, Concept and Creative Communicate Along the Path To Purchase Pre-store Offer In-store Message Digital Tactics NORM % Tyson Compliance Industry Best Practice ROI Impact % Industry Compliance
- 21. 21 Partnerships Drive Higher ROI Along the Whole Path to Purchase Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 22. 22 Pre Store: Sales Lifts are Higher for Each Brand Source: Foresight ROI Shopper Foresight Industry ROI Norms Lower Marketing Costs from Sharing
- 23. 23 In Store: Sales Lifts are Lower for each brand, though the lift is spread over multiple brands Source: Foresight ROI Shopper Foresight Industry ROI Norms Slightly Higher Marketing Costs for each brand
- 24. 24 Partnerships Drive Higher ROI Along the Whole Path to Purchase Pre-Store + In-Store Offer + Message Full Path to Purchase = Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 25. 25 More Partnership Events are Full Path to Purchase Pre-Store + In-Store Offer + Message Full Path to Purchase = Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 26. 26 Trade Integration Increases SM ROI . . . Especially with Partnerships % Spend on Events with High Trade Integration Opportunity for Better Trade Integration Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 27. 27 Trade Integration Increases SM Sales Lifts and the Category Growth Impact from Shopper Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 28. 28 Collaborate with Partners & Customers to Win Source: Foresight ROI Shopper Foresight Industry ROI Norms Size of balls is Dollar Spend
- 29. 29 Tyson & CPG company tossed in plenty of best practices to drive success. Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 30. Walmart: “The partnership provided Walmart with a full spectrum of relevant shopper marketing touchpoints that demonstrated our commitment to the Grilled & Ready brand. The customer was excited we focused our efforts on a healthy offering that tied nicely with a non-frozen category.” What are retailers are saying…… Kroger: Awesome collaboration between Tyson & Kroger resulting in incremental volume and displays as part of Kroger’s Meal Solutions. Based on the success of this program Kroger specifically the meat department is looking for other partnerships to drive incremental volume, dollars, and building the basket cart. Meijer: Tom (Meijer) really liked the program. It was a great opportunity to provide a meal solution while partnering with another strong brand and leveraging Meijer’s shopper marketing vehicles to create value to the consumer, Meijer, CPG and Tyson.
- 31. 31 Follow Best Practices for Predictable Improvement Results Source: Foresight ROI Shopper Foresight Industry ROI Norms
- 32. • Commitment • Communication • Compromise • Patience • Honestly/Transparency • Assume Positive Intent • Self Awareness 32 Keys to Successful Marriage
- 33. 33 33 33 Contact us to learn more our Best Practice Benchmark Assessment and other shopper marketing ROI solutions: Contact@ForesightROI.com 312-575-0024 www.foresightroi.com https://www.linkedin.com/in/rickabens/ @ForesightROI
- 34. 34 34 34
Editor's Notes
- Open up the meeting…introduce everyone! Tell folks to ask questions throughout the presentation – we want it to be interactive
- Industry partnerships return 31% better than the industry norm, on average. 3 Reasons Why: Shopper solution steeped in insights Strong retailer support Best practices from knowing what works While partnership events save money through shared costs, partnership events are more highly integrated with more touch points across the path-to-purchase, so the total spend as a percent of revenue is higher. The actual cost for the amount of marketing reach is lower. These highly integrated events that are based on deep shopper insights and provide a relevant solution have tremendous sales lift rates for both the brand and the category.
- It’s always a good thing when partners know each other. But you need synergies Discovery process – created an opportunities Deck Oct 2014 – took almost a year to lock in the partnership! see attached in appendix - WOW Aug 2015 – see attached in appendix Setting of the goals - Partnership Brief signed off by both parties – aligned on budgets, retailers, KPIs etc - Aug 2015 Set up a timeline for programming – see excel file Edge/IN put platform ideas together and we aligned on the One Bowl Wonder! (Hearty Salads for the wintertime) Developed customer plans Creative brief was produced for KV Engaged culinary teams for joint recipes and held a photo shoot/videos JPA was completed Sales Deck developed with category story and webinar held with the field – see appendix
- Single Product or Brand Focused Partnerships Scale Programs Media Partnerships – Entertainment Properties for ‘new’ news
- Do they have a similar type of HH’s that my brand has and or wants to grow? How many new HH’s and shoppers am I going to get from this partnership? Is it large enough to be worth my time and investment? Do they have some expertise/credibility that we don’t have? Does their brand and/or name have a good reputation? Recommendation: Identify what brand partnerships make sense from a national or shopper level Align on criteria to partner (must be x, y z), etc. Develop the pre-work up front to determine the right partnerships Create a time table to secure partner and next steps if partnership does not come to life Determine what success looks like for your organization as well as for the partnership
- BASKET RELEVANCE % of HH’s who buy this product (or category and the index score SHOPPER APPEAL Will this type of product/brand appeal to our shopper (i.e. are the demographics similar)? DRIVE PERIOD RELEVANCE How relevant is the partner brand to the desired time period and shopper mindset (BTS, Holiday, etc.,) FUNCTIONAL MIX: USAGE OCCASIONS How well does the partner brand/category fit the usage occasion for our brand? PURCHASE FREQUENCY How often is the product purchased, will drive traffic? DISTRIBUTION/ ACCESSIBILITY Is the product widely available, making the partnership easier to coordinate? PRICE POINT Is the brand priced consistently with our brand?
- The roles of the manufacturer is to develop the partnership brief, including objs & strats, KPIs, budgets, customers etc, provide approvals The role of the Agency is to develop the shopper plan, coordinate approvals, enforce timelines, develop creative, manage execution The role of the Research Agency is to coordinate data input, provide program analysis, evaluate data and share implications
- During this time mom is recovering from the Holidays, trying to regain control of her finances, reflecting on self evaluation and change, wants to resume her routine, and health is top of mind. In shopping mode – mom is looking to curb spending, make lists and stick to it, seeks simplicity and easy preparation, and considers better for you options.
- “She is seeking inspiration from trusted brands to create nutritious meals that her whole family will enjoynspire me with convenient and relevant better for you simple meal solutions that my family will love.” Perfectly balanced salads full of protein and flavor. Easy and delicious, our convenient meal solutions meet all her needs — time, taste and nutrition.
- “She is seeking inspiration from trusted brands to create nutritious meals that her whole family will enjoynspire me with convenient and relevant better for you simple meal solutions that my family will love.” Perfectly balanced salads full of protein and flavor. Easy and delicious, our convenient meal solutions meet all her needs — time, taste and nutrition.
- The results of these partner programs for Tyson unfortunately is confidential. So I will show you results from 15 other top CPG companies instead, well not individually, we’d be here all day. We have measured the ROI for over 20k SM events from hundreds of brands, all major channels and all major retailers and combined them into an industry norms database for benchmarking`and best practice learning. Today we pulled out the partnership programs to show you why they work so well. This will be a good demonstration of How Tyson and their partners use the ROI measurement to plan better programs. . . . Though I can’t show you Tyson results, just between you and me . . . The programs did very well. . . . And the Tyson results are included in these industry results.
- Partnership programs are just one of the top ten best practices we have identified that regularly create high returns. Insights-based shopper solutions is another top 10 best practice. You can see the ROI average for these programs is well above the industry norm, though only about 1/3 of programs follow this best practice. Even fewer programs have external partners. They are about as rare as marriage these days. Other ways to drive success are to customize your programs to your retailers. Tyson knows what works at their retailers and uses this knowledge quite well. Oh . . . well there is one retailer, we have some new questions on and are still trying to figure out, and we will. Know what works for your categories. Integrate trade well. OK, you all are smart SMers right. How many of you knew this? How many of you knew how much impact these best practices have? Well, remember that these are averages and not every program performs on average. The real learning is in the individual programs. Did you do as well as you expected? Why or why not? What can you to improve?
- The first thing we break down is the parts of the PTP. SM Advertising tactics do better than coupons in partnership events, which makes sense, the power of the partnership is in the concept and the message. Coupons in partner events also do well because redemptions increase from cross-purchasing behavior. The big driver of success id the pre-store SM execution is, I think because that is where most of the partnership –planning focuses. There are some opportunities in store and we will see why. Many restrictions in store.
- Next we break down the ROI by tactic into the cost of the marketing reach and the reach conversion to sales. Costs go down from sharing so ROI goes up. The sales conversion or ad lift elasticity from the reach is above norm, so ROI goes up, especially for Social.
- In store we see a different picture. This really got me wondering. It could be that the in store tactics are higher quality and cost more, like bigger signs. Though, when we see that, we usually see the lift rates go up too . . But they are below norm. I think there is some of that in here. The lift rates are for just one of the products. So if you include all of the partnership products, you’ll see above norm sales lifts.
- Another best practice is a specific integration strategy we call full PTP. This is when you reach shoppers both at home and in the store, but also deliver both a message and an offer it works over and over. Only about 1/3 of all 20k events do this. Though if you trend it, it is getting higher as our customers are learning about how to use this strategy effectively.
- Partnership programs are much more likely to be FPTP than solo events, partly because they have more to communicate and partly because they can share costs.
- Good trade integration with SM also drives higher SM ROI. Partnership events are tougher to integrate trade with because you have more partners. There is a big opportunity to bring your customer teams and customers into the partnership program planning early fro stronger integration.
- Both partnerships and good trade integration help to grow the category too, which of course is what your customers want. Now, let me show you both the brand ROI and category growth results together file:///\\ROI-DC01\Foresight\Foresight%20Capabilities%20Development\Benchmarking%20Analyses\Datasets\SF%20Analysis%20Best%20Practice%20Benchmarks%20EventTEMP.xlsx
- Here we plotted the different types of events with SM Brand ROI from low to high going across and the category growth impact vertically from low to high. Partnership events with high trade integration are way up in the Both Win quad because they have very strong results for both partners. Partnerships with low trade integration do grow the category, but below the norm, though have above norm SM Brand ROI. We call these Brand Wins.
- So here is how the 9 Tyson events in this partnership campaign performed on the best practices. You can see that they have a great hit rate. Ill let Wendyjean tell you more.