Shopper marketing 2013 update

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Shopper marketing 2013 update

  1. 1. Shopper Marketing- 2013 How to turn shoppers into buyers?
  2. 2. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 2
  3. 3. What is shopper marketing? “Shopper Marketing is the use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers, enhance the shopping experience and improve brand equity for retailers and manufacturers. The ultimate goal is to improve business results for all parties involved.” Turn shoppers into buyers! Presentation1 3
  4. 4. The Evolution towards Shopper Marketing The big waves in retail Marketing Scanning Space Management ECR Category Management Best Practices Category Management 1995 1989 1975 1985 A natural progression dictated by seismic changes in : • Consumer/Shopper Behavior • Mass Communication • Retail landscape • Technological innovation Presentation1 4 Next Generation Store Designs Shopper Marketing Today 2000
  5. 5. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 5
  6. 6. 2. Why shopper marketing is that important. Question? What is the biggest brand for orange juice? Presentation1 6
  7. 7. 2. Why shopper marketing is that important. Question? What do you do when Duracell batteries are out of stock at Carrefour? Presentation1 7
  8. 8. 2. Why shopper marketing is that important. On the product/brand level: • 3000 marketing messages/day • > 30.000 product introductions in 1 year (average) • 130.000 sales promotions in supermarkets in 2012 (decrease of 1.5 %) Presentation1 8
  9. 9. 2. Why shopper marketing is that important. On the retail side: • • Choice is unlimited: f.i. Carrefour Planet stocks > 30.000 products • Strong retail brands (housebrands) • Delhaize = quality, Colruyt = sustainability, Carrefour = choice • Success of hard discounters even increases • More and more concept stores/pop-up stores • Presentation1 Convenience: number of retail channels doubled in 50 years Online shops are uncountable 9
  10. 10. The retailer is part of game! Open to Strong brands! Own client strategy! Own positioning! CORA CARREFOUR The world at my feet Perspective “me/us” Consumption society Temptation DELHAIZE COLRUYT Enjoying quality in food Massclusivity ALDI/LIDL Control Basic Needs Presentation1 Perspective “others” 10 Rational & Ethical Efficiency
  11. 11. The retailer is in the game! Shopper Physical/virtual/digital environment Competitive environment brands Retailer/ dealer Presentation1 11
  12. 12. 2. Why shopper marketing is that important. On the consumer side:   5% loyal to a brand (devided loyalty)  73% shops with 5 different retailers  26% is loyal to a retailer  Presentation1 68% brand switchers Seeks for experience and authenticity 12
  13. 13. 2. Why shopper marketing is that important. On the consumer side: Too much! Presentation1 confusion 13
  14. 14. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 14
  15. 15. Shoppers are not customers! And vice versa Presentation1 15
  16. 16. Shoppers are not customers! And vice versa. Who drinks Coca- Cola? Presentation1 Who buys Coca- Cola? 16
  17. 17. 3. Shoppers are not customers! And vice versa. Customer marketing Shopper marketing • Who is the consumer? • Who does the shopping? • Where does he use my product? • Where does he do the shopping? • When does he use my product? • When and how? • How does he use my product and • Why does he buy this product or why? brand? • How can I increase the use of my • How can I make the shopper buy product? MY brand? SECOND MOT (moment of truth) FIRST MO (moment of truth) 80% OF THE BUYING DECISION HAPPENS INSTORE! Presentation1 17
  18. 18. Shoppers are influenced in- and outside the physical/ virtual store: Outside the store Inside the store • Demographics • Retail circumstances • Psychological element • Mindset • Family issues • Time & budget pressure • Personal issues • Discovery • Consumer advertising • Senses SHOPPER MARKETING Presentation1 18
  19. 19. Shopping segments Lot of time Less time Like to shop Hates (daily) shopping Fun shopping Run shopping Impulse shopping Comparison shopping Shopping list No shopping list High spending Low spending Save time Spend time Remark: most of the shoppers are “multi- vidual” Presentation1 Comparison shopping Fun shopping Convenience shopping Discount shopping Save money 19 Spend money
  20. 20. Shopper research: Understand how shoppers think, plan, decide, A good fragrance increases sales with15% • • • • • • • • • Presentation1 20 Focus Groups Shopalongs In-store Shopper Groups Subject Matter Expert Interviews Ethnographic research Online and Traditional Surveys Advanced quantitative analytics Geographic data mapping Secondary subscription databases
  21. 21. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 21
  22. 22. What is a shopping barrier? A barrier is an element of the product offering or the retail environment that prevents a shopper from buying a brand • • Presentation1 De-selection Barriers • Ones that cause a brand to be “ruled out” on a cursory overview of the category Selection Barriers • Barriers that prevent a brand to be chosen upon closer consideration 22
  23. 23. Shopper marketing is about overcome shopping barriers De-Selection 1. Perceived lack of need 2. Low brand line-up or awareness 3. Lack of “shelf pop” 4. Habit change Prevent Selection 1. 2. Choice Confusion 3. Usage Uncertainty 4. Poor Value 5. Presentation1 Unconvincing Benefit; Performance Uncertainty High threshold to close the deal 23
  24. 24. Perceived lack of need Heard of your brand, but does not want or need it now. Bring the consumer to the point of wanting your product now! Presentation1 24
  25. 25. Low brand line-up or awareness Not aware of anything beyond what I typically buy. Help the Shopper find something that best meets her needs! Presentation1 25
  26. 26. Lack of Shelf Pop Brand isn’t on radar screen when shopping. Make sure the Shopper doesn’t overlook your brand, particularly at shelf. Presentation1 26
  27. 27. Habit change Too hard to change what I’m used to doing/using. Make sure the Shopper doesn’t overlook your brand at shelf. Presentation1 27
  28. 28. Unconvincing Benefit Performance Uncertainty Don’t believe you deliver the benefit Convince them you do! Presentation1 28
  29. 29. Choice confusion Confused about which to choose. Help them be smart & make the right choice! Presentation1 29
  30. 30. Usage uncertainty Not shure what it would be like to use. Give them an idea what is required to use the product! Presentation1 30
  31. 31. Poor value Can get the benefit from another, cheaper brand. Overcome the value equation in a competitive way. Presentation1 31
  32. 32. High threshold to close the deal Websites are not user friendly for chosing products, nor paying products • • • • • • • navigation unclear Offer not detailed, visual, ... enough Technical issues Too many thresholds (passwords, data, ...) Feeling of unsecurity High cost for delivery No sufficient distribution for delivery Control, test, measure online shopping experience (drop out …..) Presentation1 32
  33. 33. Conclusion on Shopper barriers • Selective perception: get seen! • Volume presentation works! • Influence key points in the shop: o o Reduced availability o • “star” offers Compare 3 products instead of 2 Less is more! • Shoppers buy advantages • Shoppers like change (f.i. in retail) SAINE COMMON SENSE ! OBSERVATION! Presentation1 33
  34. 34. Conclusion on Shopper barriers 1. Define the shopper barriers 2. Make a selection (1 – 2, KISS) 3. Define your shopper marketing execution plan Presentation1 34
  35. 35. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 35
  36. 36. 6 steps, all linked with each other, towards an effective Shopping Marketing Strategy Phase 1: Collect information & gain insights 2 Get to know your market 1 3 5 Define Shopper Marketing Strategy Get to know your retailer Get to know yourself 4 Get to know your shopper Presentation1 37 6 Execute & Measure
  37. 37. 7 theories of Shopper psychology 1. Shoppers have a limited ability to focus 2. Shoppers shop with their peripheral vision 3. Entry to the category is via Signpost Brands 4. De-selection before selection 5. Shopping mirrors usage habits 6. Discontinuity creates triggers in-store Presentation1 42
  38. 38. Phase 2: Strategy Definition, Execution & Measurement 2 Get to know your market 1 3 5 Define Shopper Marketing Strategy Get to know your retailer Get to know yourself 4 Get to know your shopper Presentation1 51 6 Execute & Measure
  39. 39. Some basic principles • Never forget about the Brand Equity • Define the main shopping barriers and keep it simple • Shopper marketing is about immediate effect • Shopper marketing messages are direct and give the answer to “Why should I buy, here and now”. • Although FMOT marketing seems pragmatic, emotions play an important role Shopper marketing fits into the complete marketing mix & -plan Product Place Promotion Packaging Coupons Category mgm Sampling Claim Reduction Retailer equity POS Language Volume actions Experience (sensorial) Loyalty … Presentation1 Price … … … 52
  40. 40. A way of thinking about FMOT marketing: The shopping cycle Presentation1 53
  41. 41. How to evaluate a shopper marketing campaign? 3 questions to ask: Stop Presentation1 Engage 54 Close
  42. 42. Agenda 1. Definition of shopper marketing 2. Why is shopper marketing that important? 3. Differences with consumer marketing 4. Overcome shopping barriers 5. How to deal with Shopper marketing? 6. Some important trends Presentation1 55
  43. 43. Some important shopper marketing trends Presentation1 56
  44. 44. 6. Most important shopper marketing trends • The consumers get smarter & seek for relevance* • Shopper marketing moves between smart shopping and pleasure shopper • Digital evolution can cause shopper revolution • Shopper marketing is more & more sensorial • Multi channeling has become common sense * Carre Associates Shopper Reseach 2010 Presentation1 57
  45. 45. The consumers get smarter & seek for relevance Informed, compare Pre-sales more important Presentation1 58
  46. 46. Shopper marketing moves between smart shopping and pleasure shopping Easy Efficient Enjoyable Presentation1 59
  47. 47. Digital evolution can cause shopper revolution • Pre-sales (stock check, choice) • On point of sales (price comparison, info, payment via mobile) • • QR Code • Presentation1 Location marketing (offer based on location) Augmented reality 60
  48. 48. Shopper marketing is more & more sensorial Senses Taste Light sound Presentation1 61
  49. 49. Multi channeling has become common sense • 86% of consumers use several channels at once • Online  offline : • • eBay, Google & Amazon New buzzwords: o ROPO(Research Online Purchase Offline) o Phygital (combination of the physical and digital worlds) o Channel integration o Multi-screen Presentation1 62
  50. 50. Innovative companies that change the world of shopping Hointer: takes humans out of the shop Zara: includes stocking light and replenising with totally new products Selfridges: combining pop-up shops with art Augment: is trailblazing in simulated reality, a necessity in today's world of e-commerce. STORY: is a retail space that completely changes every four to eight weeks and gives e-commerce sites like Birchbox a physical store Presentation1 63
  51. 51. Innovative companies that change the world of shopping Storenvy: allows independent vendors to open and customize their own virtual shops Threadless: is an apparel company that lets artists submit designs for t-shirts, housewares and more. The designs with the most votes become available for purchase. Amazon continues to be the leader in e-commerce, including much more categories Fab is the "Ikea Of Fashion.“ Zappos builds customer relationships like no other. Presentation1 64
  52. 52. ANY QUESTIONS? THANK YOU! caroline.vervaeke@thom.eu @carovervaeke www.thehouseofmarketing.be Presentation1 65

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