Post on 08-May-2015
Shopper Marketing- 2013
How to turn shoppers into buyers?
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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
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What is shopper marketing?
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“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!
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The Evolution towards Shopper MarketingThe big waves in retail Marketing
A natural progression dictated by seismic changes in :• Consumer/Shopper Behavior• Mass Communication• Retail landscape• Technological innovation
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19751985
1989
19952000
Today
Scanning
Space Management
Category Management
ECR Category Management
Best Practices
Next Generation Store Designs
Shopper Marketing
Presentation1
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
5
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2. Why shopper marketing is that important.Question?
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What is the biggest brand for orange juice?
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2. Why shopper marketing is that important.Question?
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What do you do when Duracell batteries are
out of stock at Carrefour?
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2. Why shopper marketing is that important.
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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 %)
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2. Why shopper marketing is that important.
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On the retail side:
•Convenience: number of retail channels doubled in 50 years
•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
•Online shops are uncountable
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The retailer is part of game!
DELHAIZE
ALDI/LIDL
COLRUYT
Open to
Control
Perspective “me/us” Perspective “others”Consumption societyTemptation
CARREFOUR CORA
The world at my feet
Enjoying quality in foodMassclusivity Rational & Ethical
Efficiency
Basic Needs
Strong brands!Own client strategy!Own positioning!
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The retailer is in the game!
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Shopper
Retailer/ dealer
brands
Physical/virtual/digital environment
Competitive environment
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2. Why shopper marketing is that important.
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On the consumer side:
68% brand switchers
5% loyal to a brand (devided loyalty)
73% shops with 5 different retailers
26% is loyal to a retailer
Seeks for experience and authenticity
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2. Why shopper marketing is that important.
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On the consumer side:
frustratio
nToo much! confusion
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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
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Shoppers are not customers! And vice versa
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Shoppers are not customers! And vice versa.
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Who drinks Coca- Cola?
Who buys Coca- Cola?
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3. Shoppers are not customers! And vice versa.
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Customer marketing
•Who is the consumer?
•Where does he use my product?
•When does he use my product?
•How does he use my product
and why?
•How can I increase the use of
my product?
SECOND MOT (moment of
truth)
Shopper marketing
•Who does the shopping?
•Where does he do the shopping?
•When and how?
•Why does he buy this product or
brand?
•How can I make the shopper
buy MY brand?
FIRST MO (moment of truth)
80% OF THE BUYING DECISION HAPPENS INSTORE!
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Shoppers are influenced in- and outside the physical/ virtual store:
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Outside the store
• Demographics
• Psychological element
• Family issues
• Personal issues
• Consumer advertising
Inside the store
•Retail circumstances
•Mindset
•Time & budget pressure
•Discovery
•Senses
SHOPPER MARKETING
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Shopping segments
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Lot of time
Like to shop
Fun shopping
Impulse shopping
Shopping list
High spending
Less time
Hates (daily) shopping
Run shopping
Comparison shopping
No shopping list
Low spending
Remark: most of the shoppers are “multi- vidual”
Save t
ime
Sp
en
d
tim
e
Save money Spend money
Comparison shopping
Fun shopping
Discount shopping
Convenience shopping
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Shopper research:Understand how shoppers think, plan, decide,
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• 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
A good fragrance increases sales with15%
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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
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What is a shopping barrier?
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• 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
A barrier is an element of the product offering or the retail environment that prevents a shopper from buying a brand
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Shopper marketing is about overcome shopping barriers
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Prevent Selection
1. Unconvincing Benefit; Performance
Uncertainty
2. Choice Confusion
3. Usage Uncertainty
4. Poor Value
5. High threshold to close the deal
De-Selection
1. Perceived lack of need
2. Low brand line-up or awareness
3. Lack of “shelf pop”
4. Habit change
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Perceived lack of need
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Heard of your brand, but does not want or need it now.
Bring the consumer to the point of wanting your product now!
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Low brand line-up or awareness
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Not aware of anything beyond what I typically buy.
Help the Shopper find something that best meets her needs!
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Lack of Shelf Pop
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Brand isn’t on radar screen when shopping.
Make sure the Shopper doesn’t overlook your brand, particularly at shelf.
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Habit change
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Too hard to change what I’m used to doing/using.
Make sure the Shopper doesn’t overlook your brand at shelf.
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Unconvincing BenefitPerformance Uncertainty
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Don’t believe you deliver the benefit
Convince them you do!
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Choice confusion
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Confused about which to choose.
Help them be smart & make the right choice!
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Usage uncertainty
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Not shure what it would be like to use.
Give them an idea what is required to use the product!
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Poor value
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Can get the benefit from another, cheaper brand.
Overcome the value equation in a competitive way.
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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
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Control, test, measure online shopping experience (drop out …..)
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Conclusion on Shopper barriers
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• Shoppers buy advantages
• Shoppers like change (f.i. in retail)
SAINE COMMON SENSE !
OBSERVATION!
• Selective perception: get seen!
• Volume presentation works!
• Influence key points in the shop:
o “star” offers
o Reduced availability
o Compare 3 products instead of 2
• Less is more!
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Conclusion on Shopper barriers
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1. Define the shopper barriers
2. Make a selection (1 – 2, KISS)
3. Define your shopper marketing execution plan
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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
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6 steps, all linked with each other, towards an effective Shopping Marketing Strategy
Phase 1: Collect information & gain insights
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Get to know
yourself
Get to know your
retailer
Get to know your shopper
Define Shopper
Marketing Strategy
Execute &
Measure
Get to know your market
1 3
2
4
5 6
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7 theories of Shopper psychology
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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
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Phase 2: Strategy Definition, Execution & Measurement
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Get to know
yourself
Get to know your
retailer
Get to know your shopper
Define Shopper
Marketing Strategy
Execute &
Measure
Get to know your market
1 3
2
4
5 6
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Some basic principles
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Shopper marketing fits into the complete marketing mix & -plan
•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
Product Price Place Promotion
Packaging Coupons Category mgm Sampling
Claim Reduction Retailer equity POS
Language Volume actions Experience (sensorial)
Loyalty
… … … …
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A way of thinking about FMOT marketing:The shopping cycle
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How to evaluate a shopper marketing campaign?
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3 questions to ask:
Stop Engag
eClose
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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
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Some important shopper marketing trends
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6. Most important shopper marketing trends
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* Carre Associates Shopper Reseach 2010
• 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
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The consumers get smarter & seek for relevance
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Informed, comparePre-sales more important
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Shopper marketing moves between smart shopping and pleasure shopping
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EasyEfficient
Enjoyable
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Digital evolution can cause shopper revolution
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• Pre-sales (stock check, choice)
• On point of sales (price comparison, info, payment via
mobile)
• Location marketing (offer based on location)
• QR Code
• Augmented reality
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Shopper marketing is more & more sensorial
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SensesTasteLightsound
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Multi channeling has become common sense
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• 86% of consumers use several channels at once
• Online offline :
• eBay, Google & Amazon
• New buzzwords:
oROPO(Research Online Purchase Offline)
o Phygital (combination of the physical and digital worlds)
o Channel integration
o Multi-screen
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Innovative companies that change the world of shoppingHointer: takes humans out of the shopZara: includes stocking light and replenising with totally new productsSelfridges: combining pop-up shops with artAugment: 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
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Innovative companies that change the world of shoppingStorenvy: allows independent vendors to open and customize their own virtual shopsThreadless: 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 categoriesFab is the "Ikea Of Fashion.“Zappos builds customer relationships like no other.
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THANK YOU!
caroline.vervaeke@thom.eu@carovervaeke
www.thehouseofmarketing.be
ANY QUESTIONS?