Strategies To Enhance Shopper Marketing Impact

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Slides taken from Toby Desforges "Strategies To Enhance Shopper Marketing Impact" presentation at the Path To Purchase Summit in Sydney, February 23rd 2012

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Strategies To Enhance Shopper Marketing Impact

  1. 1. Strategies to enhance shopper marketing impact A bit of backgroundwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  2. 2. Remember how it used to be? Developing Drive depth of powerful brands distributionwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  3. 3. Media is personalwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  4. 4. Retail – the biggest business on the planet? Top 10 retailers sales WalMarts sales 1100 450 Billions Billions 1050 400 1000 350 950 300 900 250 850 200 800 150 750 700 100 650 50 600 0 2000 2000 2010 2010Source: Deloittes Global retail report/Wal-Mart annual reports/press reports/7 and I www.engageconsultants.comholdings reports www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  5. 5. Follow the money Expenditure as a proportion of budget Trade Promotion Consumer Promotion Advertising & Media 1978 1998 2005 Source: Donnelly Marketing and Accenture Analysis 2006www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  6. 6. Who wins?www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  7. 7. Who wins? Manufacturer : Lose Manufacturer : Win Retailer: Win Retailer: Win 60% Manufacturer : Lose 15% Manufacturer : Win Retailer: Lose Retailer: Lose 10% 15% www.engageconsultants.com www.facebook.com/engageTheExpertsSource: Manufacturer data & analysis, Nielsen Data, (CAS GMBH) http://twitter.com/#!/ShopperExperts
  8. 8. Counting the cost The industry earns as much money in profit as it wastes in retail 250 Billions 200 150 224 billion 100 50 0 -50 Industry profit Wasted in-store -100 expenditure -150 (224 billion) -200 -250 * engage analysis based on Deloittes – “Global Powers Of The Consumer Products Industry 2010”www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  9. 9. The age of the shopper Post-war scarcity Power in the Mass media 1950’s hands of Creation of manufacturers consumer brands Retail consolidation Power moves 1980-90’s Brand proliferation towards retailers Media fragmentation Personal media Channel Power in the hands Today proliferation of shoppers Globalizationwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  10. 10. Strategies to enhance shopper marketing impact Strategy one – Get a processwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  11. 11. This not shopper marketing!www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  12. 12. What is shopper marketing? “The systematic application of elements of the marketing mix to affect positive change in shopper behavior in order to drive consumption of a brand”www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  13. 13. Link the end consumer to your investment Consumer Shopper Channel In–store Investment priorities behavior priorities marketing in customerswww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  14. 14. Consumer behavior is driven by four factors Needs and desires Experience Occasions Availability to consumewww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  15. 15. Understand the differences between your consumers and your shopperswww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  16. 16. The drivers of shopper behavior are very different from those of consumer behavior Shopper’s interpretation Needs and desires Shopper’s needs Experience Outlet selection Occasions Solution location AvailabilitySelection Product to consume Purchase Availability to consumewww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  17. 17. Prioritize the right channels Shopper’s Focus investment on interpretation the stores where you can influence shopper behavior Shopper’s needs Outlet selection Solution location Product Selection Purchasewww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  18. 18. Find the activities that count Shopper’s interpretation Shopper’s needs Outlet selection Solution location Focus investment on Product activities that Selection influence shopper behavior Purchasewww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  19. 19. Invest in an integrated in-store marketing mix Availability Changing shopper behavior Communication Offerwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  20. 20. Driving RoI – Customer investment is the last decision you take Target Prioritize Optimize in- Focus on key shoppers who channels store Invest in consumption drive where marketing customers opportunities consumption shoppers can mix be influencedwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  21. 21. Strategies to enhance shopper marketing impact Strategy two – get the right metrics and the right insightwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  22. 22. There are only three ways to grow sales Frequency Weight of Penetration purchase Better saleswww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  23. 23. Ask the right questions – get better results Which Where can consumption Which What Which shoppers will we persuade opportunities activities will customers service these target remain promote should we needs? shoppers to untapped? purchase? invest in? buy?www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  24. 24. What to research Which shoppers Which channels How can shoppers should be are important? be influenced? targeted? What out-of-store and Who buys? Who Which outlets are in-store factors can Doesn’t? used? influence purchase? What actually happens in-store? How can outlets be What segments segmented into exist? channels? Why do shoppers behave the way they do in-store? Which segments What role does each represent the greatest channel play in the What blend of opportunities? path-to-purchase? activities will be most effective?www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  25. 25. Strategies to enhance shopper marketing impact Strategy three – Learn from activitieswww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  26. 26. Set clear objectives Customer Shopper objectives Company objectives objectives relating to changing relating to the behaviour or relating to the objectives attitudes of Manufacturers customers in the consumers and sales objectives channel might have shoppers for the activity for the activitywww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  27. 27. Trade investment has four commercial outcomes High value to retailer Lose, Win Win, Win Low value to the Manufacturer High value to the Manufacturer Lose, Lose Win, Lose Low value to retailerwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  28. 28. Activity evaluations used to define whether activities should be repeated Effective strategic Profitably activity Yes Potential strategic meets Yes activity customers’ objectives No Profitably Refine meets Potential strategic Manufacturer activity objectives Yes Competitive No Yes barrier Supports AVOID Profitablyconsumption growth meets by changing customers’ shopper behavior STOP objectives No No STOP No Profitably Potential tactical meets activity Manufacture r objectives Effective tactical Yes activity Potential tactical Profitably Yes activity meets customers’ objectives No Refinewww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  29. 29. Strategies to enhance shopper marketing impact Strategy four – Invest don’t spendwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  30. 30. A question I spend 100 and get 100 in profit in return what has it cost me?www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  31. 31. The 1st Golden Rule Availability Invest in channels where your target shoppers can be influenced Communication Offerwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  32. 32. The 2nd Golden Rule Availability Invest in availability when changing shoppers’ behavior undermines planned or habitual consumption Shopper behavior in a channel Communication Offerwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  33. 33. The 3rd Golden Rule Availability Shopper behavior Offer in a channel Invest in offer when changing shoppers’ behavior expands Communication consumptionwww.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  34. 34. The 4th Golden Rule Availability Shopper Communication a behavior in channel Invest in communication when changing a shoppers’ behavior will have a profound impact on long-term Offer consumption.www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts
  35. 35. Connect!www.engageconsultants.com www.facebook.com/engageTheExperts http://twitter.com/#!/ShopperExperts

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