KEYNOTE 1NEALE MARTIN

THE CURRENT UNDERSTANDING OF CONSUMER BEHAVIOUR IS THIS: WE ARE RATIONAL AGENTS MAKING CONSCIOUS DECISIONS.

BUT THIS THINKING IS FLAWED.

AS IT TURNS OUT, RESEARCH HAS ALWAYS BEEN BASED ON THE PREMISE THAT PEOPLE KNOW WHY THEY DO THINGS. BUT MOST PEOPLE ARE ACTING SUBCONSCIOUSLY, AND OUT OF HABIT.

CONSUMERS HAVE ONE BRAIN BUT TWO MINDS.

THE UNCONSCIOUS BRAIN MOVES OR WORKS FIRST.

PEOPLE ARE NOT PRESENT IN THE MOMENT.

THINGS GET DONE ON AUTOPILOT.

WHEN PEOPLE SHOP A CHAOTIC ENVIRONMENT (THE GROCERY STORE) THEY ALL LEAVE WITH THE SAME 20-30 ITEMS OF THE SAME SIZE, BRAND AND TYPE.

OF THE PEOPLE WHO SAY THEY WILL PROBABLY BUY A NEW PRODUCT AT RETAIL, ONLY 3% ACTUALLY BUY.

1. AUTOPILOT MODE: UNCONSCIOUS

2. HEURISTIC MODE: COPILOT-BASED SHOPPING. THEY LOOK FOR SALES. SOME ITEMS CAN BE SWAPPED FOR OTHERS

3. PILOT: CONSCIOUS AWARE-NESS WHILE SHOPPING.

I FEEL. I DO. I THINK.

SHOPPERS WANT TO MAKE A MAP OF THEIR STORE. SO THE APPLE STORE IS AN EASIER ENVIRONMENT BECAUSE OF THE LOW SHELVES AND EASY LAYOUT. WHEN SHELVES ARE TOO HIGH IT’S DIFFICULT FOR SHOPPERS TO UNDERSTAND THEIR ENVIRONMENT. THEN TOO MUCH ENERGY IS SPENT TRYING TO FIGURE OUT THE STORE.

VS

iDRIVE

A SYSTEM SO COMPLEX THAT DEALERSHIPS GIVE COURSES ON HOW TO USE IT. THINK MICROSOFT.

NO NEED TO EVEN READ THE MANUAL THAT COMES WITH IT.

iPOD

THE POINT IS THIS: DON’T MAKE SHOPPERS SHOP THE WAY YOU WANT THEM TO. LET THEM TELL YOU HOW THEY WANT TO SHOP AND INNOVATE AND DESIGN AROUND THAT.

COUPONS ARE BRIBERY, NOT LEARNED BEHAVIOUR. BY AS-SUMING SHOPPER MARKETING IS ABOUT THE DISTRIBUTION OF COUPONS WE ARE NOT TRAIN-ING SHOPPERS TO BE LOYAL, WE ARE TRAINING THEM TO EXPECT A REWARD OR MORE COUPONS.

UNDERSTANDING SHOPPER AND CONSUMER HABITS ARE THE BEST WAY TO COMMUNICATE, AND TO DO SO MOST EFFECTIVELY WE SHOULD DO FOUR THINGS:

CREATE CONTEXTTRAIN BEHAVIOURREINFORCEUSE CUES TO TRIGGER BEHAVIOUR

WHAT’S THE TAKEAWAY? IF THE UNCONSCIOUS MIND CONTROLS 95% OF BEHAVIOUR, THEN MOST OF WHAT WE WANT TO COMMUNICATE IS BEING LOST. BECOMING A HABIT FOR YOUR SHOPPERS IS THE GOAL. IT’S TIME TO CHANGE THE WAY WE TALK TO SHOPPERS.

KEYNOTE 2FUTURE OF SHOPPER MARKETING. DR. BRIAN HARRIS AND JULIE BECK

HTTP://WWW.PHILTERRETAIL.COM/LEARN/SHOPPER-MARKETING-BEST-PRACTICES

A supplement to Shopper Marketing

Shopper Marketing Best Practices: A Collaborative Model for Retailers and Manufacturers A report from the Retail Commission on Shopper Marketing

PRESENT:

SPoNSoREd By:

INdUSTRy REPoRT

COLLABORATION IS KEY.IF THE RETAILER AND THE MANUFACTURER DON’T WORK TOGETHER THEN IT’S NEVER GOING TO BE SUCCESSFUL SHOPPER MARKETING.

ASK YOURSELF: HOW DO WE ACTIVATE INSIGHTS AGAINST BUSINESS CHALLENGES? THESE ARE CHALLENGES FOR THE RETAILER AND THE MANUFACTURER.

BUILD A SHOPPER MARKETING STRATEGIC PLAN FIRST:

1. TAKE A MULTI-CHANNEL APPROACH AND GET ALL OF YOUR AGENCIES AT THE TABLE

2. INCORPORATE THE LARGER GOALS OF THE BUSINESS

3. MAKE IT SCALABLE TO ALLOW ALL SIZES OF RETAILERS TO PARTICIPATE

4. ENSURE THAT IT CAN BE EXECUTED WELL AND THAT IT’S NOT JUST THEORETICAL

5. CREATE EFFICIENCIES IN THE PLAN SO THAT AS THE PROGRAM MATURES, RESULTS WILL IMPROVE

THE KEY TO ANY STRATEGIC SHOPPER MARKETING PLAN IS TO DELIVER REAL SHOPPER VALUE. THIS IS ABOUT BUILDING LONG-TERM LOYALTY, NOT SHORT-TERM PRICE CUTS.

DEVELOPING A STRONG SHOPPER MARKETING PLAN MEANS:

1. BUILDING A STRATEGIC FRAMEWORK2. DEVELOPING COMPELLING CONTENT 3. DEFINING WHAT WINNING MEANS FOR

BOTH THE PLATFORM AND THE PROGRAM4. GETTING RETAIL ALIGNMENT AND BUY-IN

WANT TO GET A RETAILER EXCITED ABOUT YOUR SHOPPER MARKETING PLANS? PROVE CONSUMER AND SHOPPER INSIGHT ALIGNMENT. MAKE IT WORK TO ACHIEVE A RETAILER’S GOALS.

LOOK AT THE CONSUMER BRIEF – WHO IS THE KEY CONSUMER?

LOOK AT THE SHOPPER DATA– WHAT DO WE KNOW ABOUT THIS KEY CONSUMER?

DEVELOP THE INSIGHT THAT TIES THE TWO TOGETHER.

THIS KEY INSIGHT THEN ALLOWS THE CREATIVE AGENCY TO DEVELOP THE BIG IDEA FOR THE SHOPPER MARKETING PLATFORM. AND SHOPPER DOESN’T MEAN HEADER CARDS. ENGAGE-MENT WITH THE SHOPPER CAN HAPPEN IN-HOME, ONLINE AND IN-STORE.

AFTER THE PROGRAM LAUNCHES, GO BACK TO THE PLAN AND REMEMBER WHAT SUCCESS WAS GOING TO LOOK LIKE. MEASURE BEHAVIOUR SHIFTS, ATTITUDINAL SHIFTS AND SALES LIFTS.

TAKE AWAY: CONSUMER AND SHOPPER INSIGHTS MUST BE LOOKED AT TOGETHER

THERE SHOULD BE A SHARED VISION BE-TWEEN RETAILERS AND MANUFACTURERS

THE PLAN SHOULD OUTLINE ALIGNMENT ON TARGET AND MEASURES

CREATIVE SHOULD ALLOW FOR CROSS FUNCTION ENGAGEMENT

RIGHT NOW, THERE ARE THREE LEVELS OF SHOPPER MARKETING GOING ON IN THE MARKETPLACE.

THIS IS ESSENTIALLY A PROMOTIONAL PROGRAM, AND IT’S WHERE TOO MANY RETAILERS AND MANUFAC-TURERS ARE PLAYING NOW.

LEVEL 1: FOUNDATION

AT THIS LEVEL, PROGRAMS ARE BEING BUILT. THEY GO BEYOND PRICE AND COUPONS TO OFFER ONGOING VALUE TO SHOPPERS.

LEVEL 2: ADVANCED

AT THIS LEVEL, LARGER PLATFORMS ARE BEING BUILT, THAT LEAD TO GREATER SHOPPER LOYALTY. THEY REQUIRE HIGHER RETAILER COLLABORATION AND GREATER REWARDS FOR PARTICIPANTS.

LEVEL 3: LEADERSHIP

ANDREW ASSAD MICROSOFT CHIEF STORYTELLER.THE NEW SHOPPER’S JOURNEY.

THE NEW SHOPPERS JOURNEY:

RESEARCH HABITIMPULSE

THE GROCERY IN-DUSTRY BREAKS DOWN LIKE THIS:

12% OF THE CATEGORY IS SHOPPED BY RESEARCH

16% BY IMPULSE

72% BY HABIT

HOW DOES A DIGITAL STRATEGY FIT INTO THIS?

PEOPLE ARE USING DIGITAL (MOBILE AND DESKTOP) TO BOTH RESEARCH PURCHASES AND CONFIRM THEM.

DIGITAL PLAYS A ROLE IN TRIGGERING A PURCHASE 25% OF THE TIME.

57% USE IT FOR RESEARCH BEFORE THEY BUY, BUT MANY USE IT FOR FOR POST-TAILING – AFTER THE ITEMS HAVE BEEN PURCHASED.

HOME ELECTRONICS PURCHASES LOOK LIKE THIS:

14% USED THEIR MOBILE PHONE TO CONFIRM THEIR PURCHASE IN STORE, PRIOR TO BUYING.

11% THEN USED DIGITAL AFTER BUYING A PRODUCT TO UPDATED THEIR SOCIAL MEDIA STATUS, LEAVE A REVIEW, OR COMMENT ON THEIR PURCHASE.

CATHERINE ROEGOOGLE HEAD OF CPG US

CHANTAL ROSSI BADIAGOOGLE HEAD OF CPG, RETAIL CANADA

GOOGLE SHOWCASES DIGITAL INTEGRATION IN THE PATH TO PURCHASE

DOWNLOAD THE FULL PRESENTATION AT: HTTP://WWW.PHILTERRETAIL.COM/LEARN/DIGITAL-INTEGRATION-IN-THE-PATH-TO-PURCHASE

Google Confidential and Proprietary 1

The Evolving Path to Purchase

Catherine Roe Google Head of CPG US

Chantal Rossi Badia Google Head of CPG, Retail Canada

Feb 2011

1

SHOPPERS ARE BEING INFLUENCED DIFFERENTLY THAN THEY HAVE IN THE PAST.

NOW 83% ARE MAKING A DECISION BEFORE ENTERING THE STORE.

THERE IS 34% SMART PHONE PENETRATION IN THE US AND THE NUMBER WILL RISE TO 50% BY 2015.

55% HAVE A PROFILE ON SOCIAL NETWORKS.

CANADIAN DATA:86% RESEARCH PRODUCTS BEFORE THEY PURCHASE.

TOP RESOURCES FOR SHOPPERS:

INTERNET 81%FLYERS 62%IN-STORE 50%TV 37%

MORE STATS:

COUPON SEARCHES UP 250% OVER THE LAST YEAR.

197% INCREASE ON LOCAL SEARCHES.

187% GROWTH IN RECIPE SEARCHES.

REVIEW SITES INCREASED BY 97%.

THIS IS THE SECOND MOMENT OF TRUTH THAT HAPPENS AFTER THE BUYING DECISION.

CANADIAN MOMS RESEARCH MANY PRODUCTS ONLINE:

76% NON PRESCRIPTION

70% HOME ITEMS

60% HYGIENE

60% GROCERY

THIS IS ACTUALLY THE YEAR OF MOBILE.

GLOBAL STAT SHOWS 4X GROWTH FOR MOBILE IN THE LAST YEAR.

1IN 3 MOBILE SEARCHES IS LOCAL AND 59% OF THOSE PEOPLE WENT INTO THE STORE.

79% ARE USING MOBILE TO HELP THEM SHOP.

NOVEMBER 2010: 10% OF SHOPPING SEARCH QUERIES WERE DONE VIA MOBILE SITE

YET, 79% OF RETAILERS AND BRANDS DON’T HAVE A MOBILE SITE.

KRISTEN NOSTRAND P&G

STORE BACK: BRINGING BRANDS TO LIFE THROUGH INTEGRATED COMMUNICATIONS.

P&G HAS BEEN DEVELOPING SHOPPER MARKETING PROGRAMS FOR JUST UNDER 10 YEARS BUT THEY STILL SEE THEMSELVES AS BEING ON THE JOURNEY TO UNDER-STANDING THE POTENTIAL OF THIS ELEMENT OF MARKETING.

THE FIVE RULES P&G FOLLOWS:1. THINK BIG IN-STORE2. FANTASTIC JOURNEY3. BRANDING BALANCE 4. VALUE FOR RETAIL PARTNERS5. BRAND KARMA

THINK BIG IN-STORE:THEY SEE BIG IDEAS STARTING IN-STORE AND WORKING OUT FROM THERE. THINGS THAT WERE ONCE SEEN AS TACTICS ARE NOW DRIVING LARGER PROGRAMS. THINK GAIN– IT’S AN EXPERIENTIAL BRAND SO THE PURCHASE SHOULD ALSO FEEL THAT WAY.

FANTASTIC JOURNEY:ENGAGE THE SHOPPER THROUGHOUT ENTIRE PATH TO PURCHASE AND UNDERSTAND WHO HE OR SHE IS THROUGHOUT THE JOURNEY.

BRAND BALANCE:MANUFACTURERS MUST LEARN TO STRIKE A BALANCE BETWEEN ICONIC BRANDING AND SHOP-ABILITY. EACH SHOULD ENHANCE THE OTHER.

VALUE FOR RETAIL PARTNERS:THIS CAN HAPPEN WHEN: • THEREISASTRATEGICFITWITH

RETAILERS• WHENTHERETAILERKNOWS

WHAT’S IN IT FOR THEM• ASMANUFACTURERSINNOVATE• ASWEUNCOVERNEWWAYSOF

WORKING TOGETHER

BRAND KARMA:BEING PROFITABLE AND DOING GOOD AREN’T MUTUALLY EXCLUSIVE. YOU ARE PROFIT-ABLE BECAUSE YOU DO GOOD.

SHOPPER PRINCIPLES TO FOLLOW:

MAKE IT SIMPLE.

GUIDE THE SHOPPER.

DELIGHT THEM EVERY STEP OF THE WAY.