Shopper marketing 2013 update

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

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Agenda







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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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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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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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On the consumer side:

frustratio

nToo much! confusion

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Agenda







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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







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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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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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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!

[email protected]@carovervaeke

www.thehouseofmarketing.be

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mailto:[email protected]

http://www.thehouseofmarketing.be/

Shopper marketing 2013 update

Business

Transcript of Shopper marketing 2013 update