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W W W . P R S R E S E A R C H . C O M

STARTING WITH THE SHOPPER RESEARCH INSIGHTS FOR WINNING AT RETAIL

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PRS’ Mission

At PRS, our mission is to help our clients "win at retail"

in the global marketplace.

Since 1972, We’ve Conducted Over 12,000 Studies to Help Clients Improve Their Packaging & Shopper Marketing.

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Using Research to Win at Retail

Assessing & Validating New Solutions

Quantitative Studies (In-Person or Online)

Developing & Screening New Packaging/POS

Qualitative Studies (PRS Retail Labs)

Understanding the Shopper & Gauging Current Efforts

In-Store Studies

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Starting with the Shopper

A Collection of 19 PRS Articles & White Papers from 2010-2014 Our 2nd Collection, After “Winning at Retail” in 2010

Today’s Webinar

Enhancing Shopper Marketing Bringing Eye-Tracking to the Store (& Lab)

Optimizing Online Presence Linking Digital & Physical Shopping

Driving Successful Innovation Thinking from the “Outside-In”

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ENHANCING SHOPPER MARKETING Bringing Eye-Tracking to the Store (& Lab)

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PRS Mobile Eye-Tracking

We’ve Been Using Mobile Eye-Tracking to Document In-Store Shopper Behavior

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Understanding Retail Channels Enhancing Shopper Marketing at Club Stores

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Improving In-Store Merchandising Optimizing the Checkout Process at Walmart

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Connecting with Shopper Segments Speaking with Spanish-Dominant Hispanic Shoppers

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A Core Reality of Shopping Too Much Choice!

The Ever-Increasing Number of Choices Overwhelms Shoppers!

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What Shoppers Say…

My purchases are pre-planned

My purchases are pre-planned.

My purchases are driven by features and benefits.

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…What Shoppers Encounter…

The Shopping Experience Becomes Largely About “De-Selection” (and is Driven By What is Seen & Missed)

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…and What Shoppers Do.

The Shopping Experience Becomes Largely About “De-Selection” (More “System 1” Than “System 2”)

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A Great Deal of In-Store Spending is Wasted…

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+ SEEN

+ BENEFICIAL

– SEEN

– BENEFICIAL

Resources Well-Spent Clutter

Wasted Resources Missed Opportunities

Which POSM is Working?

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Retail Visibility of Overhead Displays

Once Shoppers Enter the Aisle, Their Visual Attention is at Eye-Level or Below.

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Principles for Effective POSM

Maximize Visibility Work from the Floor Up!

Facilitate Shopping Provide Reassurance!

Connect Emotionally Keep It Simple! Surprise & Delight! Do the Unexpected!

“Best in Class” POSM Complements the Packaging

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“Best in Class” POSM Facilitating Shopping

Using Retail-Ready Packaging (SRP) to Facilitate Shopping

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Supporting the Introduction of a New Packaging System

“Best in Class” POSM Providing Reassurance

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“Best in Class” POSM Connecting Emotionally

Packaging & POSM Have Complementary Roles & Strengths

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Complexity Drives Shoppers Away!

“Best in Class” POSM Keep It Simple!

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Breaking Through the Clutter By Doing the Unexpected

“Best in Class” POSM Surprising & Delighting

“Don’t Forget Me!”

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Bringing Eye-Tracking to the Retail Lab Screening New Concepts in Mini-Stores

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OPTIMIZING ONLINE PRESENCE LINKING DIGITAL & PHYSICAL SHOPPING

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Today’s “Retail Reality”

Digital is Now the Fastest Growing Channel for FMCG Products…

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Understanding the Digital Shopping Experience

PRS Has Conducted Research with Digital Shoppers, Including Eye-Tracking & In-Depth Interviews

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Dissecting the Digital Shopping Experience

Initial Search (& De-Selection)

Product Comparison/Selection

The Shopping Cart (Confirmation)

Fulfillment

Packaging Plays an Important Role at All Stages of Digital Shopping

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Core “Realities” of Digital Shopping

Online Shopping for FMCG is Typically Mission-Based & Largely Rational, with Limited Browsing

1. The Shopper Mindset

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Core “Realities” of Digital Shopping

The Lack of Shelf Context Limits the Ability to Billboard (and Puts Brands Closer to “Equal Footing”)

2. The Shopping Context

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Core “Realities” of Digital Shopping

The Lack of Sizing (and Tactile Feel) Can Complicate Shopping & Make It Difficult to Gauge Quantity & Price/Value

3. Product Presentation

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Core “Realities” of Digital Shopping

Product Delivery Can Be a Challenge (and an Opportunity for Marketers)

4. The Fulfillment Process

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Several Observations (& Implications)

White and Clear Packs Can Be Problematic…

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Several Observations (& Implications)

…and Image Quality Can Vary as Well.

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Several Observations (& Implications)

Navigating Extensive Product Lines Can Be Difficult (as in the Physical World!)

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Making Brands Work Online 5 Principles for Success

1. Foster Brand Recognition (By Leveraging Design Equities)

2. Support a Quality Impression (via High Quality Pack Visuals)

3. Clearly Convey Quantity (to Provide Price/Value Reassurance)

4. Leverage the Web to Illustrate & Inform (via Additional Visuals, Video, etc.)

5. Add Value with the Shipper (A Moment of Engagement/Opportunity)

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Similac Multiple images show sizing (in hand) and also what the scoop inside looks like.

“Best in Class” Digital Presence Similac (on Amazon)

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Helping shoppers choose the right form of Similac for their child.

“Best in Class” Digital Presence Similac (on Amazon)

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Multiple images show sizing (in hand) and also what the scoop inside looks like.

Includes video on how to use the product

“Best in Class” Digital Presence Tide Pods (on Amazon)

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Linking Digital & Physical Shopping Mobile Phones in the Shopping Process

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DRIVING SUCCESSFUL INNOVATION THINKING FROM THE “OUTSIDE-IN”

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The Persistent Challenge…

This Represents a Waste of Resources (in R&D, Research, etc.) & a Major Lost Opportunity.

For Nearly 50 Years, Failure Rates for New FMCG Products Have Remained at Well Over 80%.

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Why Do Many Innovations Fail?

They Get Lost at Shelf! (Our Joint R&D with BASES Confirms the Link Between Visibility & Sales)

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Why Do Many Innovations Fail?

They Do Not Quickly & Clearly Convey the Proposition.

What Exactly am I Buying? What Exactly

is Inside the Box?

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Why Do Many Innovations Fail?

They Cannibalize & Fail to Drive Brand or Category Growth.

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Why Do Many Innovations Fail?

They Don’t Match or Deliver on Expectations (Created by the Pack).

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“The Great Disconnect”

Packaging Development & Research is Rushed at the Very End of the Innovation Process.

Innovations are Developed from the “Inside-Out” with an Emphasis on Product & Concept Research…

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“The Great Disconnect”

“The Package is the Product” to the Shopper.

…But Shoppers Experience Innovations from the “Outside-In” with the Package as the Primary Source of Awareness & Information.

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Thinking from the “Outside-In” Shopper-Based Ideation

Employing In-Store & In-Home Ethnography to Drive Ideation

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“Best in Class” Line Extensions Speaking to Users & Usage Occasions

Successful Line Extensions Often Use Structural Innovation to Provide Benefits and Fit New Usage Occasions.

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Thinking from the “Outside-In” On-Shelf Screening at PRS Retail Labs

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Optimizing Store Placement, Packaging & POSM for a New Product Line

Should a line extension in new form/new usage occasion be placed with Master Brand or among similar products in different category?

What is the optimal branding approach for the new line?

Business Issues

Outcome Uncovered shoppers’ expected store placement Determined optimal brand architecture (master brand vs. sub-brand) Optimized packaging and POSM communication

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Thinking from the “Outside-In” Gauging Incrementality & Source of Volume

Current Category (Pre-Launch) Proposed Category (with Innovation)

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Thinking from the “Outside-In” Testing Holistically: Linking the Shelf, Pack & Product Delivery

Simulating the Shopper’s Experience: From the Shelf, to the Hand & the Home

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“Best in Class” Innovations Creating Visual Equity

Successful New Brands Create “Own-able” Visual Assets

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LOOKING AHEAD WHAT ELSE IS NEW AT PRS?

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What’s New at PRS? PRS Check-Up The Primary Drivers of Pack Changes are Reactionary & Judgmental.

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Declining Sales

Competitive Pack Change

Sales Team Comments

Focus Group Comments

A New Marketing Team!

Many Pack Re-Design Decisions are Based on Mistaken Assumptions and Ultimately Fail to Make a Difference.

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What’s New at PRS? PRS Check-Up

PRS Check-Up is a Cost-Effective Way to Assess Current Packaging & Determine Which Brands are in Need of a Re-Design

Is Our Current Packaging Competing Effectively?

Does Our Packaging Support Brand Imagery?

Is Our Packaging Breaking Through Clutter & Highlighting Key Messages?

What Are Our Brand’s Design Equities?

Web-Based Interview Drawings From Memory PRS Eye-Tracking

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What’s New at PRS? PRS Retail Labs (NJ & Chicago)

Venues for Shopper Research, Ideation & Collaboration.

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What’s New at PRS? Recent PRS Studies & White Papers

Connecting with the Hispanic Shopper

Gauging Emotion in Pack & POS Research

Optimizing Packaging for Boomers & Millennials

Making Packaging & POS Work Together

Making the Case for Packaging (Documenting & Increasing ROI)

Insights are Available at www.prsresearch.com

Happy Satisfied Indifferent

Confused Annoyed

Emotional Dimensions

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Starting with the Shopper Some Topics We Didn’t Reach Today

Please Reach Out to Arrange a Custom Webinar or Learning Session…

Brands Without Borders: Effective Global Design

Winning the Battle Against Private Label

Insights for Effective On-Pack Messaging

Improving the Screening Process

Getting the Most from Eye-Tracking

Packaging & In-Market Impact: Drivers of Success

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Thank You!

Scott Young President Perception Research Services (PRS) Tel: 201-720-2701 syoung@prsresearch.com

www.prsresearch.com