Martin Moström Strategic Advisor – Shopper Marketing

More than 20 years experience in working with

Shopper Marketing

Editor of three books of Shopper Marketing

Retailers, brands and academia

HOW TO WIN THE IN-STORE BATTLE-

AN INTRODUCTION TO SHOPPER

MARKETING

• Why Shopper Marketing?

• Shopper vs. Consumer – How do we behave In-Store?

• 10 principles of Shopper Marketing

http://www.google.se/url?sa=i&source=images&cd=&cad=rja&docid=FhO0-ENenvl-TM&tbnid=Qy3AQXYDWmquBM:&ved=0CAgQjRwwAA&url=http://pdxretro.com/2011/03/sam-walton-born-on-this-date-in-1918/&ei=lI52Uoa7NKiO4AT50oBg&psig=AFQjCNEcNSK1WI7ElD2WfTJWgPi9gVlyDg&ust=1383587860900147

COCKTAIL FACTS

138 000 000 customers every week

Chinas sixth largest export market

One of the largest employers

Market dominance leads to lower prices

If growth continues for 15 years .....

Turnover as large as Japan's GDP, or France and the UK

together (3.2 trillion dollars).

Retail space as large as Las Vegas - one of America's

fastest growing cities.

2005

2013

MEDIA CLUTTER – SMART PHONES

SUMMARY… • Retail power

• Fragmented media channels

• Technology development

• Downturn in economy

SHOPPER MARKETING

….WE HAVE TO ADAPT

TO THE NEW WORLD

ZERO MOMENT OF TRUTH

THE THREE STAGE LOOP

95 % OF THE PRODUCTS ARE

TODAY SOLD IN BRICKS AND

MORTAR STORES

SHOPPER MARKETING

IS ABOUT UNDERSTANDING

HUMAN BEHAVIOR

We are a part of the nature

• 98 % av our DNA is the same as a monkeys

• Many of our marketing theories come from experiments

with animals

We love habits

• We repeat most of our human activities

We want control

• Car/aeroplane

• Relation with brand

We don´t have much patience

• 12 sec

• We rather choose something, then spend more time on the

different choices.

THE HUMAN NATURE

We don´t want to feel stupid

• We want to be rational

We forget things

• As long as it is not a habit we tend to forget

We have a lot of feelings

• It is hard to make decisions without feelings

• How many SKU:s does a Hyper Market have?

• How many SKU:s do you buy when you do a stock

up trip?

• How many SKU:s do you buy on a yearly basis?

TAKE 1 MINUTE

= about 30 000-40 000 SKU:s

= 35-50 SKU:s

= 150-200 SKU:s (incl. seasonal products)

ASSORTMENT

29 850 products that you never buy or see?

= 99.5%

ASSORTMENT

CHANGING BEHAVIOUR IS HARD

UNDERSTANDING SHOPPER

BEHAVIOR IS THE KEY! (Burke et al 2014)

• Eye level is buy level – 60-180 cm

• Less than one second for your sign to be read

• Consumers only engage if a sign is immediately actionable

• People read horizontally in one direction

• People spend 18-40 sec to read signs on a 30 minute shopping trip

• Important to stand out in the shelf and learn how to break the habits…

W H AT I S T H E O N LY T H I N G

Y O U C O N T R O L I N - S T O R E

A S A M A N U FA C T U R E R ?

PACKAGING AND

DESIGN

Make your brand visible with packaging

and design – must be seen

The only item you as a manufacturer can

monitor in-store

Make it unique and make it stand out –

and it will be choosen in-store

10 PRINCIPLES OF

SHOPPER MARKETING

Availability

Offer Communication

Create an annual plan and a unique approach to how your brand

is performing in shop. Both the regular POS and Campaign.

1. FROM SHORT-TERM

CAMPAIGNS TO LONG-TERM

STRATEGY

2. DEVELOP YOUR PACKAGING

AND DESIGN STRATEGY

Create brand visibility by having a packaging and design

strategy from a Shopper perspective

3. DIFFERENTIATE

BETWEEN CONSUMER

AND SHOPPER

Create communication that helps Shopper to buy.

4. UNDERSTANDING YOUR

BRAND FROM A CONSUMER

PERSPECTIVE

Create In-Store activities that drive added consumption for the

brand, category and store.

5. CREATE SHOPPER

SOLUTIONS

Create partnerships with complementary brands and

retail chains.

6. CREATE RETAIL VALUE

Create strategies that harmonize with the

chain's strategies.

7. CUSTOMIZE OFFER TO

CHANNEL AND STORE

STAFF.

Adapt your campaigns, range to the channel and the store

8. UNDERSTAND THE PATH

TO PURCHASE

Working with a combination of digital and physical

channels – preferably together with the retailers and it´s

marketing tools.

9. SILO MENTALITY MINDSET

MUST BE BROKEN

10. COMBINE NUMBERS

WITH INSIGHT - SIMPLIFY

Brand/trade/sales

Retail HK

Store staff

Shopper

AT LAST…

THE LECTURE IN 1 MINUTE!

• Retailers and Shoppers are leading the development.

• 0,5 % of the brands are selected in a Hypermarket.

• The packaging design is the only thing you can control.

• Don´t be disappointed in other people – remember that

we are all animals.

THANKS

Martin Moström

www.retailhouse.se

+46708-812630

Follow my blog at

retailhouse.wordpress.com

or LinkedIn