IQ Shopper Marketing

SHOPPER MARKETING STRATEGY, TACTICS & ACTIONJanuary, 2011

SHOPPER MARKETING:AN INTRODUCTION

WHY DO SHOPPER MARKETING?

Build awareness in the marketplace

Discover customers earlier in the sales cycle

Create brand preference

Support comparisons, affect selection, and provide help and utility to shoppers

Deliver discounts at the right time and place

Drive purchase

Drive repeat usage and loyalty (and increase brand preference)

Shopper marketing strategies show you what to do when.

WHAT IS SHOPPER MARKETING?

Shopper marketing encompasses a wide array of delivery mechanisms and promotional tactics that can be used to reach consumers along the path to purchase, from demand generation through the entire shopping process to post-purchase relationship management.”

YOU PROBABLY ALREADY THINK ABOUT BUSINESS AS A FUNNEL

PURCHASEAWARENESS CONSIDERATION //

CUSTOMER

The ‘moment of truth’

SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

CUSTOMER

PURCHASE LOYALTYAWARENESS CONSIDERATION USE

SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

CUSTOMER

AT HOME

ON-THE-GO

IN STORE

SHOPPER MARKETING WORKS WITH YOUR CAMPAIGN AND PRODUCT MARKETINGShopper Marketing sits underneath your advertising campaigns and product marketing as a suite of technology platforms that support the brands.

CAMPAIGN EXECUTION

SHOPPER MARKETING

PROMOTION / SAVINGS

UTILIT

Y DIGITAL CONTENTCAMPAIGN

EXECUTION

CAMPAIGN

EXECUTION

6 INSIGHTS ABOUT HOW BEST TO ENGAGE TODAY S CONSUMER

1. CONNECTING THE DOTS BETWEEN ALL OF THE PARTICIPANTS

RETAILER MANUFACTURER

END CONSUMER

SWEET SPOT

2. WHEN ASKED WHY THEY USE SHOPPER MARKETING TOOLS, CONSUMERS ARE CLEAR

WANT TO SAVE MONEY

%Of course, we know that what they say and what people actually do are not always the same...

3. THE SPLINTERED MEDIA LANDSCAPE

Today’s media landscape contains many more channels than in the past and customers are engaging very differently with brands. Traditional marketing programs had fewer components, a linear flow, and easier integration.

The old way

3. THE SPLINTERED MEDIA LANDSCAPE

The new way The new way that consumers navigate the media landscape is both fractured and with each consumer in the driver seat. Forrester has recently referred to this as the “splinternet.”

In the shopper space, a successful strategy has to take into account this splintering and the availability of the wide variety of ways that shoppers choose to interact.

4. MARKETING IN SPACE AND TIME

HUMAN’S LIFE

SEASONAL

SITUATIONS

The rhythms and routines of everyday life are influenced on a variety of scales. Shopper marketing can tap into these life-stage, seasonal, and situational triggers.

5. CONSUMERS AND SHOPPERS CAN AND WILL PROVIDE FEEDBACK ON THEIR EXPERIENCES

Today’s consumer has the power to immediately complain or complement each touchpoint they have with a brand. When a customer has a good experience with a brand, they tell 3 people; when it’s bad, they tell 10,000. Shopper marketing tools can involve your brand in this consumer feedback loop.

6. SEARCH BEHAVIOR FOR CPG FAVORS THE SUBJECT AREA, PROBLEMS AND SOLUTIONS

A holistic shopper marketing search media strategy will test and refine buys across each of these different ways that consumers use web search to find information, content and utility, and savings.

SUBJECT AREA > PROBLEM > SOLUTION / PRODUCT > BRAND XYZ

SKIING

DRY SKIN

MOISTURIZER

BRAND XYZ The circles above display the search volume for each search term (in 2009).

DIGITAL SHOPPER MARKETING:STRATEGIC FRAMEWORK

REMEMBER, SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

AT HOME

ON-THE-GO

IN STORE

DRIVING CONSUMERS TOWARD PRODUCT PURCHASE

AT HOME

ON-THE-GO

IN STORE

PURCHASE LOYALTYAWARENESS CONSIDERATION

AT HOME

ON-THE-GO

IN STORE

AND SITUATING THE CONTEXTS AS THEY CONTRIBUTE TO PURCHASE

SHOPPER MARKETING TOOLBOX OF TACTICS

AT HOME ON-THE-GOIN STORE

• Demographically- and behaviorally-targeted online display advertising

• Search advertising and local search advertising

• Retailer websites including e-Circular

• Brand websites and microsites (content), branded utilities

• Social media, blogs, and trusted sources for research

• Email-based CRM

• Printable coupons

• Television

• Print advertising

• Direct mail

Digital shopper marketing

Non-digital shopper marketing

• Product packaging QR and photo-based applications

• Mobile-based information and support for decision

• Mobile-based coupons or promotions

• In store television

• Digital kiosk

• Post-purchase digital coupons

• Post-purchase coupon

• Circular

• Rebates

• Packaging , on-shelf merchandising / advertising

• Email-based CRM

• Television

• Direct mail

• Product packaging QR and photo-based applications

• Mobile-based information and support for decision

• Mobile-based coupons or promotions

• In store television

• Digital kiosk

• Post-purchase digital coupons

• Post-purchase coupon

• Circular

• Rebates

• Packaging , on-shelf merchandising / advertising

• Local search advertising

• Mobile websites

• Mobile coupons

• Mobile applications (product location or stock info, price comparisons, barcode scanner, shopping list, or augment product use)

• SMS-based promotions (text-to-win)

• Mobile CRM

• Outdoor and other OOH advertising

• Radio

• Email-based CRM

• Television

• Direct mail

SHOPPER MARKETING TACTICS VISUALIZED

In-store television Loyalty kiosk On-aisle television

Marketing and loyalty programs in retailer’s space let manufacturers touch consumers where their message, content, or promotion matters most.

Loyalty programs outside of retailers give manufacturers more flexibility, though frequently at added cost, since it requires a stream of content updates and management.

Printed (and digital) circular Retailer CRM email

Retailer printed coupons

Walmart has an ongoing content program which collects 12 ‘mommy bloggers’ to forge an online community around walmart’s key shopper demographic.

Target has just released a holiday-themed iPad application. The app has more than just an interactive store finder and circular, but also contains holiday music and content.

Location extensions power the map-based results for pizza in Atlanta.

LOCATION-BASED COUPONING AND LOYALTY PROGRAMS

ShopAlerts is a location-based mobile marketing solution that reaches consumers while they are shopping or spending time doing the things that they enjoy most - creating unparalleled relevancy tied to place and time. The service works on any phone to deliver messages that consumers find valuable - not intrusive - and reaches customers to in a mindset to make a purchase.

1020 PlaceCast ‘ShopAlerts’

PlacePunch makes it easy for any franchise or business to implement online marketing campaigns that integrate with Foursquare, Facebook Places, Twitter and other location-based social networks. PlacePunch enables you to build loyalty programs that reward customers for checking into your venues, enables you to automatically send personalized Tweets to customers and helps you learn more about your customers and locations.

PlacePunchGoogle Mobile Advertising

Google Mobile Advertising uses their location extensions framework to present ads with the shopper’s current distance.

Note: mobile searches at google.com have grown 500% in the last two years.

COMPELLING SHOPPER MARKETING RESULTS

comScore reports from 2008 through 2010 show that digital shopper marketing has an impact on retailer visits and retail sales.

Online display ads have increased store traffic by 6%, and combining online display with search marketing can drive up store visits 43%.

One longitudinal study also showed that online advertising has generated an average sales lift of 9% in retail channels.

In the grocery space, retailers have seen similar increases of 7% sales lift, along with 4% increased basket penetration and the addition of two extra shopping trips per month on average.

PURCHASE LOYALTYAWARENESS CONSIDERATION

AT HOME

ON-THE-GO

IN STORE

SHOPPER MARKETING TACTICS IN CONTEXT

Primary shopper flow

Search advertising

Social Media& blogs

Brand site Retailer websiteTraditionalmedia

Mobile website

Mobile couponing

Location-basedadvertising offers

Retailer/ productfinder

Retailer CRM email

Post-purchase coupon

Employee adviceIn-store media

e-Circular

In-store comparisonand research

Mobile Utilitiesfor in-use scenarios

Mobile CRM

Brand CRM or loyaltyprogram

Social Mediaand brand sites (feedback)

Kiosks

Word of mouth

Circular

Digital enhancementsto packaging (QR, etc)

SHOPPER MARKETING STRATEGY DEVELOPMENT

Develop the strategic context

• What does winning look like?

• Which consumers should you target?

• Which customers (retailers)?

Develop the platforms

• How will you do it?

• What leverage do you get by integrating across platforms?

Develop and create the programs

• What is the creative program execution that will get you there?

SHOPPER MARKETING STRATEGY DEVELOPMENT

EMERGING BRAND ARCHITECTURE

CONSUMER SEGMENTATIONSTUDY

RETAILER RELATIONSHIPS

Identify the business opportunities, set goals and match them to consumer segments to find ‘sweet spot’ between consumer, brand, and retail partner(s).

Map the consumer’s needs and scenarios to the business funnel and select tactics.

Deploy the resulting tactics as a program and measure results.

PRODUCT EXAMPLE

Primary shopper flow

In market program

Phase 1 approach

Phase 2 approach

AT HOME

ON-THE-GO

IN STORE

Search advertising

Social media(Facebook + twitter)

Brand siteRetailer digitalintegration

Traditionalmedia

Mobile couponing

Location-basedadvertising offers

Retailer/ productfinder

In-store media

In-store comparisonand research

Mobile utilitiesfor in-use scenarios

Brand CRM or loyaltyprogram

Social media(feedback)

Digital enhancementsto packaging (QR, etc)

Mobile websiteMobile searchadvertising

Phase 1

• Brand website redesign to include content program, campaigns, and promotions

• Create search marketing through analytics-driven search marketing campaign

• Test-drive mobile search advertising, especially if geo-targeting can drive business goals

• Integrate with retailer digital channels including e-Circular

• Create packaging QR codes (or other in-store marketing) to allow research and comparison.

Phase 2

• Continued content programs for website

• Test traditional media

• Expand retailer integration (explore website, mobile applications)

• Based on outcomes from mobile coupon and mobile search, test-drive location-based couponing.

• Create mobile application for in-use scenarios especially around safety (could include tips, reminders)

PRODUCT EXAMPLE

THANK YOUFor more information contact Melissa Dreyer newbiz@iqagency.com 678-449-2028

IQ Shopper Marketing

Business

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