Looking at the Shopper Landscape

Insights from

The 2013 Shopper Journey Study

2

The Shopper Journey™ Study

What TC Media Knew

• Relationship between shoppers, retailers/brands is increasingly complex

• Path to Purchase has the potential for many new media touch points

• Consumer can be overwhelmed with the shear number of competing messages.

3

The Shopper Journey™ Study

What TC Media Needed to Know

• Market: How consumers’ needs change on the path to purchase.

• Message: How content should be used, by channel.

• Media: To better understand the shopper’s path to purchase.

• Moment: How to best allocate investment for ROI optimization.

4

TC Media commissioned IMI International to assist with the development

and execution of a research study to quantify and validate the 4 M’s –

Market * Message * Media * Moment.

The Shopper Journey™ Study

What TC Media KnewAn Overview

Review of over 40 studies.

4700+ Canadians representing 9,000 trip evaluations

Groceries, Drug & Pharmacy, Home Improvement,

Electronics, Sporting Goods, General Merchandiser

5

Shopping Media Influence

6

Primary Store Drivers

Top store drivers remain consistent even as the shift to digital continues.

Top 13 Store DriversAmong P3M Shoppers (Avg)

Canada Above Average

Sample Size = 3420

Convenient location 57 Grocery / Drug

Great everyday value for dollars 46 GM/Dept

Like the overall range/quality 44 -

7

Online Attitudes and Usage Show Opportunity

Over 60% find online easiest for product information yet only 1/3 feel that brands are effectively reaching them.

Online is the easiest way to get product/brand information

Everything I need to know about a product I can find online

I get the majority of my information online

Less likely to purchase if can't find information online

I trust consumer reviews that I read online

Go online for deals before I go shopping

I trust product information I get online

Better online experience enhances brand perception

Everything I do onlie want to do on mobile

Brands are effectively using the internet to reach me

I click on the advertisements to get more information

Have stopped reading printed newspaper/flyers, only online/mobile

More loyal to retailers who send electronic updates

0 10 20 30 40 50 60 70

8

Mobile Attitudes and Usage

While 48% of shoppers find mobile marketing intrusive, the opportunity lies in providing them with a relevant discount or coupon.

Do everything on my phone that I do on my computer

Mobile Marketing only works if provided with a discount/coupon

Likely to be loyal to retailers that have a dedicated mobile site

Interested in receiving Mobile Marketingthat inform me of sales

Use my cell phone while shopping to get more product information

Likely to be loyal to retailers who send relevant information to mobile

Mobile Marketing makes me want to go out and buy that brand

Likely to purchase a product if I receive a Mobile Marketing message

0 10 20 30 40 50 60 70

9

Social Media Attitudes and Usage

Less than 1 in 5 interact with a brand using social media, but the same number intend to increase their activity in the next 12 months.

I expect a response from brands

I currently interact with brands via social media

I will interact with brands more in the next 12 months

More likely to be loyal to retailers that use Facebook (product updates)

More likely to purchase if advertised on a social media

More likely to be loyal to retailers that actively tweets

More likely to be loyal to retailers that use Pinterest (product image)

I try to only purchase brands that are on social media

0 10 20 30 40 50 60 70

10

Content and Creative Approach

EducationalContent

EntertainingContent

InspirationalContent

Driving Engagement

Moderate Higher Lower Moderate

Driving Behaviour

Higher Lower Moderate Higher

Talk Value Higher Moderate Lower Moderate

Most Effective Among

• Females• 25 to 54 years old• $100k-$150k

income

• 19-24 years old

• Households with children

• Females• 13-18 and 25-39• $100k-$150k income• HH with children

• Females• Younger than 55• $100k+ income

Least Effective Among

• Males• Quebec

• 55+ years old• Quebec

• Males• 55+ years old• Quebec

• Males

InformativeContent

Different types of content achieve different things for different groups.

11

The Shopper Journey

What TC Media KnewMeet Duncan…

12

Flyer remains the strongest pre-store purchase motivator, especially for Grocery (44%) and General Merchandise (41%)

Pre-Shopping Motivators

Product was featured in the flyer

Family member, friend or co-worker recommended something

Seeing a recipe or meal solution idea (Grocery only)

Receiving a coupon in newspaper flyer or direct mail

Reading about a product in a magazine or newsletter

Receiving a product sample in the mail

Advertising on TV or radio you enjoyed

Receiving a coupon to download on the internet

Advertising on the internet you enjoyed

Product sponsored or supports a Cause you like

Receiving a new product alert

0 5 10 15 20 25 30 35 40

13

Point of purchase, overhead signage and display are most frequently used shopping aids

In-store Shopping Motivators

Product on display (i.e. end aisle, second location)

Signs calling out feature pricing

Overhead signs that appear in the aisle

Print version of the flyer available in the store

Signs at the shelf providing product information

Product being sampled

Healthy choice signage

Section labels that stick out from the shelf

Reward program signs (i.e. earn points)

New product alert signage

Product demonstration or in-store workshop

Window, floor or cart advertising

Flyer on your mobile device

Flyer on your tablet device (i.e. iPad)

Digital display or at shelf product videos

QR code you scan to get product information

0 5 10 15 20 25 30 35 40

14

Sharing a positive experience is the #1 action consumers take after shopping and it happens most often on Electronics purchases – 28%

Post-Shopping Behaviours

Tell your friends or family about a POSITIVE experience

Do an online search about another product you are interested in buying

Go on another store's website to price compare

Go to another store to shop immediately after visiting the store

Do an online search about a product you have bought

Go to the store's website to seek out more information

Tell your friends or family about a NEGATIVE experience

Enter a store or product promotion that you saw while shopping

Post a comment on your Facebook or Twitter site

Post a comment on a social media site AFTER you finished shopping

Post a comment on a social media site DURING your shopping

0 5 10 15 20 25 30 35 40

15

Shopper Segments

16

Shopper Segments

Four main segments of consumers emerge across the Shopper Journey

Completely Engaged

Enthusiastically explore both digital and traditional media

Digitally Driven

In touch with digital media and tend not

to engage with traditional media

Traditional Driven

Although less likely to go online, these consumers read flyers, pay attention to instore POS and are engaged by traditional media

Disinterested

Consumers that are least likely to be engaging online and through traditional media, and are not looking for media to engage them

17

Shopper Segments Distribution

Grocery Drug Home Improvement Electronics Sports General Merchandise0

5

10

15

20

25

30

35

40

Completely Engaged Digitally Driven Traditionally Driven Disinterested

Home Improvement & Sports sectors have 35%+“Digitally Driven” consumers 1/3 of Grocery are “Completely Engaged” General Merchandise has the largest % of “Traditionally Engaged”

18

FOCUS: Home Improvement Sector

Media Behaviours More likely to be digitally driven shopper or more traditionally driven, but not

both – they index low within the Completely Engaged segment (i.e. all media types)

Journey Stages Pre-shop: 61% will look at a flyer every week while the same number

find online the easiest channel to use to find product information

In-store: Store navigation and signage are most important however also using mobile to check price

Post-shop: Most likely to talk about a positive experience

Media Channels Mobile: 50% HI shoppers find mobile marketing intrusive, however

25% are open to receive promotional updates on mobile Online: Over 50% do price comparisons online, with 47% viewing

the e-flyer

19

FOCUS: Pharma/Drug Retailers

Media Behaviours Represented across the shopper segments evenly, traditional segment

highest at almost 30%

Journey Stages Pre Shop: Flyers remain key. WOM ranks second but less important

than for other channels In-store: Less likely than average to engage with most types of

in- store merchandising, except reward program signage (higher). Less likely to use mobile/tablet while

shopping Post Shop: Less likely to engage in post shop behaviours

Media Channels• Mobile: 1 in 4 are open to receive promotional updates, 1 in 3

are only interested if discounts are offered• Online: Overall less likely to be on retailers websites 6 in 10 suggest

online is the easiest source for product info. 4 in 10 regularly go online to check prices/look at the flyer

20

In Summary

Over 80% of Shoppers are engaged so targeting media will drive results

Same Shopper uses different media for different channels to optimize ROI...you need to optimize the 4 M's –

Traditional media continues to not only be relevant but essential. 

 

Magic = Optimizing the 4M‘s: Market * Message * Media * Moment

optimize each one to optimize ROI - Failure in ANY one eliminates the success of all

21

In Summary

The shopping journey in 2014 is increasingly driven by

science.

Embrace the facts to deliver a seamless consistent

compelling message of price, function, features and

benefits.

The result will be increased relevancy (for the shopper)

and better ROI (for the retailer)