Marketing To The Evolving Shopper - FMI
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The Integer Group's Craig Elston, Senior Vice President, Insight & Strategy, and The Kellogg® Company's Jamie LaRue, Senior Director, Shopper Marketing, presented Marketing To The Evolving Shopper at this year's FMI conference. As reported by Supermarket News, they discussed how "a gradually recovering economy is leading to changes in how consumers perceive branded products and convenience". You can download the presentation here to read more about the changes in consumers' mindsets and behaviors as a result of this recent economic shift.
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Marketing To The Evolving Shopper - FMI
- 2. 2 MARKETING TO THE EVOLVING SHOPPER Jamie LaRue + Craig Elston The Kellogg® Company The Integer Group® 11th May 2010, Las Vegas © 2010 The Integer Group® and The Kellogg® Company
- 3. 3 ABOUT US The Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The Integer Group is one of America’s largest promotional, retail and shopper marketing agencies and a key member of the TBWA Marketing Services portfolio. The Integer Group resides at the Intersection of Branding and Selling™ and creates strategic marketing solutions for clients in categories that include beverage, packaged goods, telecommunications, fast food, home and shelter, and power sports. © 2010 The Integer Group® and The Kellogg® Company
- 4. 4 Photo: The Kellogg® Company © 2010 The Integer Group® and The Kellogg® Company
- 5. 5 OUR TOPICS FOR TODAY 1 How she is changing – Components of value – Two meanings of convenience 2 OpportuniVes this presents 3 A framework for thinking along a Path to Purchase © 2010 The Integer Group® and The Kellogg® Company
- 6. 6 Our Studies © 2010 The Integer Group® and The Kellogg® Company
- 8. 8 THE ANALYSIS Used factor analysis to idenVfy the underlying dimensions of store choice: Value and Convenience Trend and monitor over Vme Evaluate the relaVve impact of the in‐store environment and shopping aids on store choice and purchases 8 © 2010 The Integer Group® and The Kellogg® Company
- 9. 9 THE SHOPPER CONTINUUM™ Entering a store or Pre-Tail™ Web site Research, word of mouth, trial Browsing, Retail comparing, researching and selecVng items Using the Post-Tail™ product Purchase moment = points of action, behaviors © 2010 The Integer Group® and The Kellogg® Company
- 10. 10 1 The Components of Value © 2010 The Integer Group® and The Kellogg® Company
- 11. 11 THE COMPONENTS OF VALUE • Offers the lowest everyday prices • Provides the best mix of price and quality • A place with fantasVc customer service • Carries high‐quality brands • Is a store brand I trust • Allows me to save as much money as possible © 2010 The Integer Group® and The Kellogg® Company
- 12. 12 CONCERNS ABOUT VALUE +12% +6% © 2010 The Integer Group® and The Kellogg® Company
- 13. 13 BUYING PRIVATE LABELS Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 14. 14 ATTITUDES ABOUT NATIONAL BRANDS APRIL 2010 SEPT 2009 Agree strongly Agree 79% 84% 56% 64% 52% 54% 46% 9% 37% 43% 4% 39% 26% 22% 23% 21% 21% 14% Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 15. 15 2 Two Meanings of Convenience © 2010 The Integer Group® and The Kellogg® Company
- 16. 16 LOCATION IS A DECLINING MEANING • Close‐by and convenient • Near home or work Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 17. 17 IN‐STORE EASE IS GROWING • Carries things I need • Easy for me to find the things I need • Quick checkout • Takes credit and debit cards • Easy to return products • Has a loyalty program N = 1,122 ??? Source: The Checkout 2009, 2010; The Integer Group & M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 18. 18 CONVENIENCE ≠ NEARBY Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 19. 19 THE SHOPPER CONTINUUM™ Entering a store or Pre‐Tail™ Web site Research, word of mouth, trial Browsing, Retail comparing, researching and selecVng items Post‐Tail™ Using the product Purchase moment © 2010 The Integer Group® and The Kellogg® Company
- 20. 20 WHO’S PICKING UP ON THIS? © 2010 The Integer Group® and The Kellogg® Company
- 21. 21 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 22. 22 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 23. 23 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Photo: The Kellogg® Company © 2010 The Integer Group® and The Kellogg® Company
- 24. 24 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Small retailers: Order at pump, free WiFi, drive‐throughs Photo: warnout © 2010 The Integer Group® and The Kellogg® Company
- 25. 25 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Small retailers: Order at pump, free WiFi, drive‐throughs Manufacturers: On‐line tools, meal soluVon apps, Redbox DVDs, picnic packs © 2010 The Integer Group® and The Kellogg® Company
- 26. 26 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Small retailers: Order at pump, free WiFi, drive‐throughs Manufacturers: On‐line tools, meal soluVon apps, Redbox DVDs, picnic packs Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 27. 27 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Small retailers: Order at pump, free WiFi, drive‐throughs Manufacturers: On‐line tools, meal soluVon apps, Redbox DVDs, picnic packs Partners: Cart manufacturers, card issuers, coupons, apps Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 28. 28 WHO’S PICKING UP ON THIS? Big retailers: 15m parking, store‐in‐a‐store, self‐checkout Small retailers: Order at pump, free WiFi, drive‐throughs Manufacturers: On‐line tools, meal soluVon apps, Redbox DVDs, picnic packs Partners: Cart manufacturers, card issuers, coupons, apps Photos: Cabco™ © 2010 The Integer Group® and The Kellogg® Company
- 29. 29 WHO’S PICKING UP ON THIS? Photo: iTunes Photo: iTunes Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 31. Visa: “Lunch”
- 32. 32 THE SHOPPER CONTINUUM™ Entering a store or Pre‐Tail™ Web site Research, word of mouth, trial Browsing, Retail comparing, researching & selecVng items Post‐Tail™ Using the product Purchase moment © 2010 The Integer Group® and The Kellogg® Company
- 33. 33 Photos: iTunes © 2010 The Integer Group® and The Kellogg® Company
- 36. 36 Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 37. 37 Convenience – Overcoming Shopping Hassles © 2010 The Integer Group® and The Kellogg® Company
- 38. 38 HASSLES: THE FASTEST WAY TO FAIL • As decisions get more complex, fuses will get shorter • Shoppers will leave stores, categories, or brands if their fuses get lit • Brands can win business by pre‐empVng those hassles and smoothing out the shopping process 38 © 2010 The Integer Group® and The Kellogg® Company
- 39. 39 Four Common Retail Hassles © 2010 The Integer Group® and The Kellogg® Company
- 40. 40 HASSLE 1: LACK OF SERVICE Long lines destroy saVsfacVon 0 Extremely Avg. 4 Very 4 min. Minutes in Line 8 Somewhat Not very/Not at all 12 16 Home Imp. Office Supply Drug Grocery Club Electronics Mass Department Source: The Checkout 2009; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 41. 41 HASSLE 1: LACK OF SERVICE Long lines discourage future trips I avoid the store at 21% all Vmes I only go to pick up specific items I can’t find 19% 43% elsewhere I stop going 3% altogether Source: The Checkout 2009; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 42. 42 AVOID THE LINE Self‐checkout is only one possible soluVon Photo: MobileContentToday 42 © 2010 The Integer Group® and The Kellogg® Company
- 43. 43 AVOID THE LINE Self‐checkout is ony one possible soluVon Deliver through branded e‐commerce 43 © 2010 The Integer Group® and The Kellogg® Company
- 44. 44 AVOID THE LINE Self‐checkout is only one possible soluVon Deliver through branded e‐commerce Or third party Photo: The Integer Group® 44 © 2010 The Integer Group® and The Kellogg® Company
- 45. 45 HASSLES 2 and 3: STOCK AND PRICE Featured products need to be in stock and accurately priced % VisiVng Store Less Due to % VisiVng Store Less Availability Issues Due to Incorrect Pricing Electronics 36% 30% Office Supply 35% 26% 26% Department 34% 22% Home Imp. 28% Drug 26% 22% 21% Mass 22% 19% Grocery 19% 24% Club 18% Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research © 2010 The Integer Group® and The Kellogg® Company
- 46. 46 HASSLE 4: UNCLEANLINESS AND CLUTTER Source: 2009 NACS Emerging OpportuniVes in Convenience Retail © 2010 The Integer Group® and The Kellogg® Company
- 47. 47 HASSLE 4: UNCLEANLINESS AND CLUTTER Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 48. 48 HASSLE 4: UNCLEANLINESS AND CLUTTER Photo: The Integer Group® © 2010 The Integer Group® and The Kellogg® Company
- 49. 49 WHY SHOPPERS LEAVE AISLES EMPTY‐HANDED The price was more than I wanted to pay 60% I couldn’t find the exact item, product or 56% size I was looking for I couldn’t find the specific brand I was 34% looking for The aisle was too crowded/too many 16% people in the aisle The aisle was confusing/disorganized 14% Over 35% would walk I always purchase what I go to the store out because of poor 12% looking for cleanliness and cluqer The aisle/store was dirty 7% 0% 10% 20% 30% 40% 50% 60% 80% 0% 20% 40% 60% 70% © 2010 The Integer Group® and The Kellogg® Company
- 50. 50 OVERCOMING HASSLES Think from the perspecVve of the Shopper Keep things clean Aid the navigaVon Build upon the need for convenience Photos: ISMI, The Integer Group®, Planet Retail Ltd © 2010 The Integer Group® and The Kellogg® Company
- 51. 51 WE’VE COVERED 1 How she is changing – Components of value – Two meanings of convenience 2 OpportuniVes this presents 3 A framework for thinking along the Path to Purchase – The Shopper ConVnuum™ © 2010 The Integer Group® and The Kellogg® Company
- 52. 52 THE SHOPPER CONTINUUM™ Entering a store or Pre-Tail™ Web site Research, word of mouth, trial Browsing, Retail comparing, researching and selecVng items Using the Post-Tail™ product Purchase moment = points of action, behaviors © 2010 The Integer Group® and The Kellogg® Company
- 53. 53 LONG‐TERM QUESTIONS 1 Will the value factor grow or level off? 2 How will convenience expectaVons evolve? 3 How fixed or mutable are shopping styles? 4 To what extent will technology affect habits? 5 What impact will mulV‐plasorm experiences have? © 2010 The Integer Group® and The Kellogg® Company
- 54. 54 QUESTIONS? Jamie LaRue Craig Elston Senior Director, Shopper MarkeVng SVP, Insight & Strategy The Kellogg® Company The Integer Group® +1.269.66.7230 +1.303.393.3474 james.larue@kellogg.com celston@integer.com Download or subscribe to our presentations, white papers, and editions of The Checkout at www.shopperculture.com © 2010 The Integer Group® and The Kellogg® Company