Shopper Marketing

How to turn shoppers into buyers

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What is shopper marketing?

“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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Why shopper marketing is that importantOn the product/brand level:

• 3000 marketing messages/day• > 30.000 product introductions in 1 year

(average)• More and more promotion instore/outstore

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Why shopper marketing is that importanton 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

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The retailer is in the game !

Shopper

Retailer / Dealer

Brands

competitive environment

physicalenvironment

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Why shopper marketing is that importanton the consumer side:

68% brand switchers 5% loyal to a brand 73% shops with 5 different retailers 26% is loyal to a retailer Seeks for experience and authenticity

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Why shopper marketing is that important.On the consumer side:

frustration

confusionToo much!

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Shoppers are not consumers! And vice versa.

Who drinks Coca Cola? Who buys Coca Cola?

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Shoppers are not consumers! And vice versa.

• 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?

• 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?

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80% of the buying decision happens INSTORE!

Consumer marketing Shopper marketing

SECOND MOT

FIRST MOT

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Shoppers are influenced in- and outside the store:

Outside the store Inside the storeDemographics Retail circumstancesPsychological element MindsetFamily issues Time & budget

pressurePersonal issues DiscoveryConsumer advertising Senses

SHOPPER MARKETING

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Shopping segmentsLot of time Less timeLike to shop Hates (daily) shoppingFun shopping Run shoppingImpulse shopping Comparison shoppingShopping list No shopping listHigh spending Low spending

Remark: Most of the shoppers are “multi-vidual”

Spend time

Save time

Save money Spend money

Comparison shopping

Fun shopping

Convenience shopping

Discount shopping

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Shopper research

Understand how shoppers think, plan, decide, interact with environment, and evaluate their experiences.

• 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

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What is a shopping barrier?

A barrier is an element of the product offering or the retail environment that prevents a shopper from buying a brand.

- 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

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Shopper Marketing is about overcome Shopping barriers

De-Selection1. Perceived lack of need2. Low brand line-up or awareness3. Lack of “shelf pop”4. Habit change

Prevent Selection1. Unconvincing Benefit;

Performance Uncertainty2. Choice Confusion3. Usage Uncertainty4. Poor Value

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Conclusions on Shopper barriers

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 Shopper Marketing Strategy

Get To know your shopper

• Define required insights

• Collection of internal existing data

• Shopper research based on insights needed

• Shopper Segmentation

• ...

Shopper Demands,

Shopper research methods,

Shopper Barriers

Get to know your

Retailer

• Retailer strategy analysis

• Performance analysis

• Identify key contacts

• Identify key processes & way of working

• ...

list of strategic retail partners,

Category role per retailer, key

priorities and opportunities

Get to know your

market

• Competitor SWOT Analysis

• Competitor portfolio assessment

• Define Category Role

• ...

Ranking of competition &

products, Category role

Get to know

yourself

• SWOT analysis• Portfolio

Assessment (BCG Matric)

• Product life cycle analysis

• P&L analysis• ...

Commercial Strategy, company

capabilities, Product strategy

1 2 3 4

Execute & Measure

• Define activities• Set action plan• Identify involved

departments & key stakeholders

• Set Backtimings• Identify KPI’s• ...

Improved business results,

continuous learnings

Define Shopper

Marketing Strategy

• Define action plan for each specific retailer based on the needs of all parties (company, retailer & shopper) involved

• ...

Clear & Executional

Shopper Marketing Strategy

5 6

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Combined into 2 phases, for a more logical workflow:1st Phase: analysis of yourself, your retailer & your shopper within the competitive market environment2nd Phase: Strategy definition, execution & measurement

Define Shopper

Marketing Strategy

5

Execute &

Measure

6

Get to know your market

2

Get to know

yourself

1

Get to know your

retailer

3

Get to know your

shopper

4

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Most important shopper marketing trends

• 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

* Carre Associates Shopper Reseach 2010

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What makes The House of Marketing different?

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We have a strong vision on marketing …

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Marketing is a mindset

throughout the whole company,

and only happens through

uncompromising and ruthless focus on

the total process of customer

engagement.

Marketing is a key contributor to

achieve business objectives and to

optimize shareholder value.

Our guiding principles are Focus,

Agility, Creativity, Tangibility and

Sustainability.

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… and a clear view on how marketing must evolve

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• Simplicity• Strategic consistency• Leadership continuity• Prioritize & making choices • Consistent brand across all channels• Seek leadership in specific category• Customer centricity• Focused team

• Detect trends & act• Early warning systems & processes

• Agile & up to date organization• Built around customer

engagement• Willingness to change• Flexibility & Speed

• Innovative company culture• Diversity of profiles• Idea generation process• Idea valuation• Porosity & open-mindedness

• KPI’s & dashboards• Scenario analysis & ROMI• Connect with marketing intelligence• Analytical culture & skills

• People: yours & every stakeholder• Planet: ACT on innovation, packaging, promotion...• Profit: business-minded marketers

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We are convinced that flexibility is a key asset for the futureto bridge capacity gaps...

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Resource Demand Chart

1/95 4/95 7/95 10/95 1/96 4/96

0

1,000

2,000

3,000

4,000

5,000

FTE (hours per month)

Project 1Project 2Project 3

Project 4

Capacity

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…. and to bridge competence gaps

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SocialMedia Strategist

Project Management

CR

M s

pecia

listShopper marketer

Performance management

CPM specialistOnline specialist

Mob

ile m

ark

ete

r

Web master

Data cruncherE-commerce

Packag

ing

………

……

…

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Flexibility demands the right talent at the right place, & on going training

The House of Marketing can help you develop and keep the right talents in your marketing department.

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Training

Coaching

Relevant Marketing training, from general to very specific & tailor made

- product management- project management- communication (online, offline)- social media- email marketing-……

Personal coaching focused on marketing related skills and technical skills

Marketing Talent program

Coaching on the job, one company or multi company program, more details available as from October 2012

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We offer help adapted to the new business context

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In a economical environment where turbulence is the new

norm, The House of Marketing provides marketing

excellence at the right moment, exceeding clients'

expectations by delivering higher return on investment and

by making the organization more agile.

We achieve this by recruiting passionate marketers for

whom we create an inspiring and nurturing environment.

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How do we work?

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Brand Managers

Broad FMCG experience Coordination activities of

specialists in production, sales, advertising, promotion, R&D, …

Churn analysis, churn reduction

Product placement optimization

Business Analysts

Market & competitor analysis

Market assessment & quantification

Clustering of customers

E-Marketers & Social Media

Specialists

E-strategy definition & roll-out

Coordination, design & implementation of e-marketing actions

Website management, email marketing, social media, mobile

Marketing Managers

Channel & Category Managers

Process Managers

B2B and B2C environments

Marketing plan, go-to-market strategy & implementation, people management, business intelligence

Coordination of Marketing activities

Strong analytical and negotiation skills

Enhancing retail partnerships by increasing category sales and aiding in fact based/strategic selling

Extended experience in SME and large matrix organizations

Alignment of organization towards similar goals

Clear roles & responsibilities definition, organizational design

We work on temporary assignments….Mostly function based

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… and on strategic marketing challengesMostly project based

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• Attract new customers• Increase customer spending• Reduce customer churn• Increase Innovation success rate

Volume driven

Margin driven

Positioning

• Restore customer trust• Capture more customer value• Margin management• Doing more with less resources• Tracking of ROI

• Define or redefine positioning• Changing customer experience from product push to relational (customer-centric)

• Positioning on the sustainability dimension

• Positioning towards current and potential employees

• Customer intelligence: translate data into relevant insights

• Segmentation• Business and marketing planning• Innovation Management Program

• Customer intelligence: translate data into relevant insights

• Category assessment• Marketing performance management (ROMI, CLTV, dashboards)

• Marketing audit

• Consumer intelligence: translate data into relevant insights

• Customer (store) experience• Sustainability• Employer branding

Consumer analytics and insights are crucial for each of the three challenges

Client challenges THoM expertise & solutions

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We offer a unique combination of strategic excellence and operational pragmatism

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We help you in realizing more from your marketing strategies and building the marketing capabilities for systematic results

Operational pragmatismStrategic excellence

• Proven track record in strategic marketing advice

• Creating relevant insights in the business

• Identifying the true leverages for significant improvements

• Turning opportunities into structured and prioritized business initiatives

• Track record in making things happen within international and complex companies

• Applying practical knowledge of successful corporate sales and marketing organizations

• Turning initiatives into tangible actions

• Helping you to successfully implement strategic recommendations

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We deliver tangible value by bridging the knowing doing gap…

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Operational pragmatism

Strategic excellence

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We have different meetings during an assignment

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2200706-CBC-PresentationTHoM.ppt

– Draft –

Developing targeted expansion strategy for a Luxembourg based private life insurerStrategy, organization and marketing

Project objectives

Methodology

Deliverables

Build methodology and framework for country-specific go-to-market launches based on learnings from first failure on the I talian market in private life insurance asset management

• Analysis of the fact base and decision on targets- Life insurance business

• Market structure and distribution options• Cross-border revenues

- Private banking business• Market structure and differentiation• Expectations of wealthy individuals• Off-shore business aspects• Value and tactics of wealth managers

- Bancassurance model options in private banking- Detailed geographical study on I talian potential- Understanding of wealthy individuals

• Wealth classification• Identification of advisory circle• Trend in family offices• (Family) business activity and influence of private equity and

venture capital• Positioning study and go-to-market draft• I mplications for organizational and branding requirements

• Organizational roadmap and risk management• Design of go-to-market model and potential• European-wide positioning strategy and implementation

Knowledge Capture Matrix Client: Sodexho Pass - Apogheos Consultant: Olivier Olbrechts Project: Business Plan Date: 27/08/07 Comment: Interim (project) All documents on project saved here. Final Deliverables. Credential to follow STAKEHOLDERS Learnings from

the way the client works

Learnings on how THoM could work better

New products or services

Marketing domain/ methodology improvement

Relationship opportunity (executive contact, idea)

Client agenda sell-on opportunity

Industry trend/ insight

Competitor information

SALES Account Team

Apogheos = Business Unit that has to be integrated into the Group if return sufficiently attracting to Sodexho Group

Proposal in process: coaching during the implementation of the business plan

- Small independent firms with low potential for consulting/ interim - Exceptions (potential clients ?): BCD Group, Accentiv (FR)

No other consulting firm identified in this part of Sodexho

DELIVERY Marketing Domain:

- No THoM methodology used - Business Plan template created from scratch

- Sold as interim project but could be more profitable sold as consulting

- Formal approach and deliverables could have been more clarified prior to the project

Develop a standard financial business plan spreadsheet template)

iii team: No B2B Services team

Task ID Week Project name Action/task description

Task owner Follow-up persons

Priority Status Start date Due date Date finished

Comments/issues

Issue description Decision Decision taker

Due date

123456789101112131415

Decision to take

LAST MODIFIED:

….…..Coordinate client event

….Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

Launch Product Y

End 2007Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

Define MLT strategy for product X

DEADLINEDELIVERABLES PROJECT

….…..Coordinate client event

….Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

Launch Product Y

End 2007Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

Define MLT strategy for product X

DEADLINEDELIVERABLES PROJECT

1st call

Visit by SSOMgr

Client Name or LOGO

Title of Function/project

Proposal for Interim Management

Month Day, 2007

Proposal sent

InterviewConsultant(s)

Contractsigned

Client Name or LOGO

Title of Function/project

Proposal for Interim Management

Month Day, 2007

PROJECT DELIVERABLES DEADLINE

Define MLT strategy for product X

Market analysisRGO identification + estimated revenues & final reco + budgetBrand strategyAction plan 2008

End 2007

Launch Product Y Product chart (branding, positioning, USP, …)Launch approachLaunch packageOrganization concept testFollow-up launch

….

Coordinate client event ….. ….

3Project status reports Liesbet 27 December.ppt

Project status report

Activities completed this reporting period

Resources

Outstanding I ssues/ Main Risks(1)

NovemberThomas DCMeeting Thomas with Philippe.

Need alignment on the real needed requirements and which budget we can have for it.

Due DateResponsibleActionsI ssues & Risks

Product Management PlatformPrepared by: Liesbet VandenberghePeriod: from 25/ 9 to 20/ 10 week 6

Decision to take(1)

Due DateDecision MakerDecision

Activities planned for next reporting period

Planning Risks Scope

Didier VDH will have a meeting to fine tune the requirements

Central marketing will have meeting about the next steps and how we see the current project management tools in this project.

Running

Supplier gave demo.

Didier VDH got input to make draft of technical requirements

We have now a list of general requirements

(1) Format could be simplfy for simple project

Objectivesfinalized

Engagement follow-up

Evaluation

Knowledgecapturing

From initial call till 2 first weeks During the engagement Closing the engagement

Internal EPR

ClientEPR

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You are always hiring a whole team of marketing specialists

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Hiring a THoM consultant isn’t just hiring a person, it’s acquiring expertise:

•THoM consultant: your day to day contact

• Counselor, Client Manager and Mentor: first help, coaching and stretched goals for the THoM consultant

• All THoM consultants with their specific skills, expertise and experience: the second resort for the THoM consultant

• THoM knowledge base (training, career development plan, books, papers, former projects, experience of previous THoMers)

Visible

Invisible

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We deliver Marketing expertise in four areas

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I. Strategic Marketing

II. Go-to-Market

• Market Intelligence• Segmentation• Branding & Positioning

• Pricing• Product/ Brand/ Category

Management• Communication (offline &

online)

III. Organization capabilities

IV. Performance Management

• Customer Process Management

• Organization & Change Management

• Customer Experience

• Marketing Dashboards• Marketing Performance Management• Customer Lifetime Value & ROMI

• Business & Marketing Planning

• Employer Branding• Sustainability

• Social Media• Shopper Marketing• Customer Relationship

Management

• Marketing Audit• Marketing Coaching &

Training

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For whom do we do this?

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ICT & Media

Utilities & Resources

Financial & Other

Services

Healthcare & Public Sector

Transport & Logistics

We have clients from many different sectors (1)

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Consumer Goods &

Retail

We have clients from many different sectors (2)

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Durables & Industrial

Goods

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“We appreciated that the THoM team supported us in the bottom up approach involving customers,

prospects, sales, specialists.” (Danny Vandevyver, Head of Marketing

Com Belux)

… talking about the tangible value delivered by The House of Marketing

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“THoM’s pragmatic approach is to me a key differentiator, as they are able to talk the language of

actual executors and to predict or foresee many operational issues we need to tackle.”

(Ronald Hannet, BU Manager)

“THoM succeeded in creating change thanks to their straightforward and efficient solutions and

approach.”

(Michael De Koster, Segment Manager)

“The added value of THoM is that they do not only deliver strategic advice, but their recommendations

are tangible and can be implemented.”

(Luc Deflem, CEO)

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Your point of contact

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The House of Marketingtel: +32 (0) 15 444 000E-Mail: info@thom.eu

The House of MarketingKardinaal Mercierplein, 2

B-2800 MechelenBelgium

Fax +32 (0)15 444 044www.thehouseofmarketing.be

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