Marketing To The Evolving Shopper - FMI
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©2010TheIntegerGroup®andTheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
MARKETINGTOTHEEVOLVINGSHOPPER
JamieLaRueTheKellogg®Company
CraigElstonTheIntegerGroup®
+
11thMay2010,LasVegas
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©2010TheIntegerGroup®andTheKellogg®Company
ABOUTUS
The Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods.
The Integer Group is one of America’s largest promotional, retail and shopper marketing agencies and a key member of the TBWA Marketing Services portfolio. The Integer Group resides at the Intersection of Branding and Selling™ and creates strategic marketing solutions for clients in categories that include beverage, packaged goods, telecommunications, fast food, home and shelter, and power sports.
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©2010TheIntegerGroup®andTheKellogg®Company
Photo:TheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
OURTOPICSFORTODAY
1 Howsheischanging
– Componentsofvalue– Twomeaningsofconvenience
2 OpportuniVesthispresents
3 AframeworkforthinkingalongaPathtoPurchase
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©2010TheIntegerGroup®andTheKellogg®Company
OurStudies
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©2010TheIntegerGroup®andTheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
UsedfactoranalysistoidenVfytheunderlyingdimensionsofstorechoice:ValueandConvenience
TrendandmonitoroverVme
EvaluatetherelaVveimpactofthein‐storeenvironmentandshoppingaidsonstorechoiceandpurchases
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THEANALYSIS
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©2010TheIntegerGroup®andTheKellogg®Company
UsingtheproductPost-Tail™ Purchase
moment
Retail
Browsing,comparing,researching
andselecVngitems
Pre-Tail™ Entering a store or
Web site
Research,wordofmouth,trial
THESHOPPERCONTINUUM™
= points of action, behaviors
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©2010TheIntegerGroup®andTheKellogg®Company
TheComponentsofValue1
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©2010TheIntegerGroup®andTheKellogg®Company
THECOMPONENTSOFVALUE
• Offersthelowesteverydayprices
• Providesthebestmixofpriceandquality
• AplacewithfantasVccustomerservice
• Carrieshigh‐qualitybrands
• IsastorebrandItrust
• Allowsmetosaveasmuchmoneyaspossible
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©2010TheIntegerGroup®andTheKellogg®Company
CONCERNSABOUTVALUE
+6%
+12%
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©2010TheIntegerGroup®andTheKellogg®Company
BUYINGPRIVATELABELS
Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
ATTITUDESABOUTNATIONALBRANDS
Agree strongly Agree
Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research
APRIL 2010
79%
56%
52%
46%
43%
26%
23%
21%
SEPT 2009
84%
64%
54%
37%
39%
22%
21%
14%
9%
4%
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©2010TheIntegerGroup®andTheKellogg®Company
TwoMeaningsofConvenience2
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©2010TheIntegerGroup®andTheKellogg®Company
LOCATIONISADECLININGMEANING
• Close‐byandconvenient
• Nearhomeorwork
Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
IN‐STOREEASEISGROWING
• CarriesthingsIneed
• EasyformetofindthethingsIneed
• Quickcheckout
• Takescreditanddebitcards
• Easytoreturnproducts
• Hasaloyaltyprogram
N = 1,122 ??? Source: The Checkout 2009, 2010; The Integer Group & M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
CONVENIENCE≠NEARBY
Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
Pre‐Tail™
Usingtheproduct
Retail
Post‐Tail™
EnteringastoreorWebsite
Purchasemoment
Browsing,comparing,researching
andselecVngitems
Research,wordofmouth,trial
THESHOPPERCONTINUUM™
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©2010TheIntegerGroup®andTheKellogg®Company
WHO’SPICKINGUPONTHIS?
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
WHO’SPICKINGUPONTHIS?
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
WHO’SPICKINGUPONTHIS?
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
WHO’SPICKINGUPONTHIS?
Photo:TheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
Smallretailers:Orderatpump,freeWiFi,drive‐throughs
WHO’SPICKINGUPONTHIS?
Photo:warnout
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
Smallretailers:Orderatpump,freeWiFi,drive‐throughs
Manufacturers:On‐linetools,mealsoluVonapps,RedboxDVDs,picnicpacks
WHO’SPICKINGUPONTHIS?
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
Smallretailers:Orderatpump,freeWiFi,drive‐throughs
Manufacturers:On‐linetools,mealsoluVonapps,RedboxDVDs,picnicpacks
WHO’SPICKINGUPONTHIS?
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
Smallretailers:Orderatpump,freeWiFi,drive‐throughs
Manufacturers:On‐linetools,mealsoluVonapps,RedboxDVDs,picnicpacks
Partners:Cartmanufacturers,cardissuers,coupons,apps
WHO’SPICKINGUPONTHIS?
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Bigretailers:15mparking,store‐in‐a‐store,self‐checkout
Smallretailers:Orderatpump,freeWiFi,drive‐throughs
Manufacturers:On‐linetools,mealsoluVonapps,RedboxDVDs,picnicpacks
Partners:Cartmanufacturers,cardissuers,coupons,apps
WHO’SPICKINGUPONTHIS?
Photos:Cabco™
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©2010TheIntegerGroup®andTheKellogg®Company
Photo:iTunes
WHO’SPICKINGUPONTHIS?
Photo:TheIntegerGroup®Photo:iTunes
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©2010TheIntegerGroup®andTheKellogg®Company
Visa:“Lunch”
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©2010TheIntegerGroup®andTheKellogg®Company
Pre‐Tail™
Usingtheproduct
Retail
Post‐Tail™
EnteringastoreorWebsite
Purchasemoment
Browsing,comparing,
researching&selecVngitems
Research,wordofmouth,trial
THESHOPPERCONTINUUM™
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©2010TheIntegerGroup®andTheKellogg®Company
Photos:iTunes
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©2010TheIntegerGroup®andTheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
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©2010TheIntegerGroup®andTheKellogg®Company
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Convenience–OvercomingShoppingHassles
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©2010TheIntegerGroup®andTheKellogg®Company
HASSLES:THEFASTESTWAYTOFAIL
• Asdecisionsgetmorecomplex,fuseswillgetshorter
• Shopperswillleavestores,categories,orbrandsiftheirfusesgetlit
• Brandscanwinbusinessbypre‐empVngthosehasslesandsmoothingouttheshoppingprocess
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©2010TheIntegerGroup®andTheKellogg®Company
FourCommonRetailHassles
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©2010TheIntegerGroup®andTheKellogg®Company
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HASSLE1:LACKOFSERVICE
LonglinesdestroysaVsfacVon
Grocery Club MassDrugHome OfficeSupply Department
0
4
8
12
MinutesinLine Avg.
4min.
Imp. Electronics
0
4
8
12
Extremely
Very
Somewhat
Notvery/Notatall
Source: The Checkout 2009; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
HASSLE1:LACKOFSERVICE
Longlinesdiscouragefuturetrips
Istopgoingaltogether
IonlygotopickupspecificitemsIcan’tfind
elsewhere
IavoidthestoreatallVmes
3%
19%
21%
43%
Source: The Checkout 2009; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
AVOIDTHELINE
Self‐checkoutisonlyonepossiblesoluVon
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Photo:MobileContentToday
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©2010TheIntegerGroup®andTheKellogg®Company
AVOIDTHELINE
Self‐checkoutisonyonepossiblesoluVon
Deliverthroughbrandede‐commerce
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©2010TheIntegerGroup®andTheKellogg®Company
AVOIDTHELINE
Self‐checkoutisonlyonepossiblesoluVon
Deliverthroughbrandede‐commerce
Orthirdparty
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Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
Featuredproductsneedtobeinstockandaccuratelypriced
%VisiVngStoreLessDuetoAvailabilityIssues
ElectronicsOfficeSupplyDepartmentHomeImp.
DrugMass
GroceryClub
36%35%34%
28%26%
22%19%18%
%VisiVngStoreLessDuetoIncorrectPricing
30%26%26%
22%22%21%
19%24%
HASSLES2and3:STOCKANDPRICE
Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research
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©2010TheIntegerGroup®andTheKellogg®Company
HASSLE4:UNCLEANLINESSANDCLUTTER
Source:2009NACSEmergingOpportuniVesinConvenienceRetail
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©2010TheIntegerGroup®andTheKellogg®Company
HASSLE4:UNCLEANLINESSANDCLUTTER
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
HASSLE4:UNCLEANLINESSANDCLUTTER
Photo:TheIntegerGroup®
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©2010TheIntegerGroup®andTheKellogg®Company
0% 10% 20% 30% 40% 50% 60% 70%
Theaisle/storewasdirty
IalwayspurchasewhatIgotothestorelookingfor
Theaislewasconfusing/disorganized
Theaislewastoocrowded/toomanypeopleintheaisle
Icouldn’tfindthespecificbrandIwaslookingfor
Icouldn’tfindtheexactitem,productorsizeIwaslookingfor
ThepricewasmorethanIwantedtopay
7%
12%
14%
16%
34%
56%
60%
0% 20% 40% 60% 80%
Over35%wouldwalkoutbecauseofpoorcleanlinessandcluqer
WHYSHOPPERSLEAVEAISLESEMPTY‐HANDED
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©2010TheIntegerGroup®andTheKellogg®Company
OVERCOMINGHASSLES
ThinkfromtheperspecVveoftheShopper
Keepthingsclean
AidthenavigaVon
Buildupontheneedforconvenience
Photos:ISMI,TheIntegerGroup®,PlanetRetailLtd
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©2010TheIntegerGroup®andTheKellogg®Company
WE’VECOVERED
1 Howsheischanging
– Componentsofvalue– Twomeaningsofconvenience
2 OpportuniVesthispresents
3 AframeworkforthinkingalongthePathtoPurchase–TheShopperConVnuum™
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©2010TheIntegerGroup®andTheKellogg®Company
UsingtheproductPost-Tail™ Purchase
moment
Retail
Browsing,comparing,researching
andselecVngitems
Pre-Tail™ Entering a store or
Web site
Research,wordofmouth,trial
THESHOPPERCONTINUUM™
= points of action, behaviors
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©2010TheIntegerGroup®andTheKellogg®Company
LONG‐TERMQUESTIONS
1 Willthevaluefactorgroworleveloff?
2 HowwillconvenienceexpectaVonsevolve?3 Howfixedormutableareshoppingstyles?4 Towhatextentwilltechnologyaffecthabits?
5 WhatimpactwillmulV‐plasormexperienceshave?
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©2010TheIntegerGroup®andTheKellogg®Company
QUESTIONS?
CraigElstonSVP,Insight&Strategy
TheIntegerGroup®+1.303.393.3474
JamieLaRueSeniorDirector,ShopperMarkeVng
TheKellogg®Company+1.269.66.7230
Download or subscribe to our presentations, white papers, and editions of The Checkout at
www.shopperculture.com