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

1. Strategies to enhance shopper
marketing impact
A bit of background
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2. Remember how it used to be?
Developing Drive depth of
powerful brands distribution
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3. Media is personal
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4. Retail – the biggest business on the planet?
Top 10 retailer's sales WalMart's 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 2010
Source: Deloittes Global retail report/Wal-Mart annual reports/press reports/7 and I
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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 2006
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6. Who wins?
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7. Who wins?
Manufacturer : Lose Manufacturer : Win
Retailer: Win Retailer: Win
60%
Manufacturer : Lose
15%
Manufacturer : Win
Retailer: Lose Retailer: Lose
10% 15%
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Source: Manufacturer data & analysis, Nielsen Data, (CAS GMBH) http://twitter.com/#!/ShopperExperts

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”
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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
Globalization
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10. Strategies to enhance shopper
marketing impact
Strategy one – Get a process
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11. This not shopper marketing!
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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”
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13. Link the end consumer to your investment
Consumer Shopper Channel In–store Investment
priorities behavior priorities marketing in customers
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14. Consumer behavior is driven by four factors
Needs and
desires
Experience Occasions
Availability
to consume
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15. Understand the differences between your
consumers and your shoppers
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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
consume
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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
Purchase
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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 Purchase
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19. Invest in an integrated in-store marketing mix
Availability
Changing
shopper
behavior
Communication Offer
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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 influenced
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21. Strategies to enhance shopper
marketing impact
Strategy two – get the right metrics
and the right insight
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22. There are only three ways to grow sales
Frequency
Weight of
Penetration
purchase
Better
sales
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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?
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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?
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25. Strategies to enhance shopper
marketing impact
Strategy three – Learn from activities
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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 activity
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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 retailer
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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
Profitably
consumption 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 Refine
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29. Strategies to enhance shopper
marketing impact
Strategy four – Invest don’t spend
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30. A question
I spend 100 and get 100 in
profit in return what has it
cost me?
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31. The 1st Golden Rule
Availability
Invest in
channels where
your target
shoppers can be
influenced
Communication Offer
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32. The 2nd Golden Rule
Availability
Invest in availability when changing
shoppers’ behavior undermines planned
or habitual consumption
Shopper
behavior in a
channel
Communication Offer
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33. The 3rd Golden Rule
Availability
Shopper
behavior Offer
in a
channel
Invest in offer when changing
shoppers’ behavior expands
Communication
consumption
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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.
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35. Connect!
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