"Shopper Marketing - Consumer Packaged Goods" Presentation 041912

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SHOPPER MARKETING April 19, 2012

Transcript of "Shopper Marketing - Consumer Packaged Goods" Presentation 041912

Page 1: "Shopper Marketing - Consumer Packaged Goods" Presentation 041912

SHOPPER MARKETINGApril 19, 2012

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Agenda• Shopper Marketing definition

• OgilvyAction’s Approach to Shopper Marketing

• Why Shopper Marketing is More Important Than Ever

• Best in Class case studies

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SHOPPER MARKETING DEFINITION

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Industry Definition of Shopper Marketing

All marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper and lead him / her to make a purchase.

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Brand affinity = awareness and interest

Brand transaction = intent and purchase

The goal of shopper marketing is to be present with an activation voice at all relevant points of contact along the shopper’s journey, to drive intent

and purchase all the way to the final second.

OgilvyAction’s View of Shopper Marketing

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Brand Affinity becomes Brand Transaction by triggering Action Points along the path to purchase.

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Consumer Mode

Who she is

Get in her mind

Reason to buy

Emotion leads, practical benefits support

Audience

Task

Story

Content

Shopper Mode

How she shops

Get in her cart

Reason to buy right now

Practical leads, emotion validates

And that the role of communication differs based on what mindset she’s in

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We believe consumer and shopper mindsets are interwoven.

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Some think about the path this way

And while a linear path to purchase helps us organize…

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…We understand that today’s journey to purchase is more complex and dynamic.

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We know our target is in Shopper mode anywhere and everywhere.

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And while much of in-store behavior is ‘auto-pilot’, shoppers are becoming more engaged outside of the store.

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Because the shopper’s journey is more dynamic, where and how we intercept her is more important than ever.

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That’s why we believe that store back is really shopper back.

Understanding shopper’s behavior beyond the store and activating at the right interception point is critical to shopper

marketing success.

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WHY SHOPPER MARKETING IS MORE IMPORTANT THAN EVER

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Shoppers Have Become More Savvy

• During the economic downturn shoppers learned to be less impulsive and more frugal and these behaviors have persisted over time

– In 2010, 78.3% of consumers said they used coupons regularly in

2010, up 14.7% from pre-recession levels

– Digital coupon usage grew 41% in 2010

• Shoppers are doing their homework before they go shopping

– More than 81% of shoppers conduct research before they go shopping, typically for an hour or longer

– 4 out of 5 smartphone owners use their phones to check inventory, look up product info and find special offers

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The Shopper Makes a Majority of Her Decisions in Store

•  59% of brand selections are made in store

- Shoppers typically enter the store with a set of products and brands in their consideration set and then make their final decision at shelf

• 85% of shoppers perceive in-store factors as more influential than out-of-store marketing

• 77% of shoppers enter the store without a detailed shopping list

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Q&A

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THANK YOU