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The Shopper Marketing Revolution

Toby Desforges

www.engageconsultants.com facebook.com/engagetheexperts twitter.com/shopperexperts

The US$ 200 billion dollar crime and how it happened

Why market to shoppers?

Original sources of competitive advantage

Developing powerful brands

Drive depth of

distribution

Today media is personal

Retail – the biggest business on the planet?

Source: Deloittes Global retail report/Wal-Mart annual reports/press reports/7 and I holdings reports

20002010

600000000000

650000000000

700000000000

750000000000

800000000000

850000000000

900000000000

950000000000

1000000000000

1050000000000

1100000000000

Top 10 retailer's sales

20002010

0

50000000000

100000000000

150000000000

200000000000

250000000000

300000000000

350000000000

400000000000

450000000000

WalMart's sales

For many, retail spend is the largest cost after cost of goods

Top 250 companies turnover US$ 3.12 trillion*

Global promotions expenditure US$ 312 billion

Global profit US$ 202 billion*

* Source Deloittes – “Global Powers Of The Consumer Products Industry 2013”

70% of promotions lose money – US$ 212 billion could be wasted every year

Source: Manufacturer data & analysis, Nielsen Data, (CAS GMBH)/ Analysis/Trade Insight Trade global spend survey/ Deloites

Manufacturer : WinRetailer: Lose

Manufacturer : LoseRetailer: Lose

Manufacturer : WinRetailer: Win

Manufacturer : LoseRetailer: Win

60%

10% 15%

15%

31% of CPG companies cite poor compliance as a key issue*

The consumer goods industry could almost double its profits by investing effectively in-store

-250

-200

-150

-100

-50

0

50

100

150

200

250

Industry profitWasted in-store

expenditure

Bill

ion

s

The industry wastes nearly as much money in retail as it earns in profit

202 billion

(212 billion)

* engage analysis based on Deloittes – “Global Powers Of The Consumer Products Industry 2013”

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Cats don’t buy litter but men buy perfume

Consumers and shoppers, what’s the difference now and how will it

change?

Consumers and shoppers are different

Consumer behavior is a cycle

OccasionsExperience

Needs and desires

Availability to consume

Shoppers make products available to consume

Availability to consume

Purchase

Shopper’s needs

Outlet selection

ProductSelection

Solution location

Shopper’s interpretation

It is becoming increasingly hard to separate the consumer and the shopper world

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The Shopper Marketing Revolution

What is shopper marketing and what it is not?

This not shopper marketing!

What is shopper marketing?

“The systematic application of elements of the marketing mix to affect positive change in shopper

behavior in order to drive consumption of a brand”

Marketing to shoppers must be integrated into the work we do

Consumer goods companies must focus on three elements required to drive growth

Create desire to consume the brand

Maximise the opportunity to purchase the

brand

Motivate retailers to support the

brand

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Join the revolution

Practical steps can you take to incorporate shopper thinking into your

way of working

Integrating shopper marketing makes in-store investment work

Shopper behavior

Consumer priorities

Channel priorities

Marketing mix

Investment

Understand how shoppers really behave

Purchase

Shopper’s needs

Outlet selection

ProductSelection

Solution location

Shopper’s interpretation

Prioritize the right channels

Focus investment on the stores where you can influence shopper

behavior

Purchase

Shopper’s needs

Outlet selection

ProductSelection

Solution location

Shopper’s interpretation

Find the activities that count

Focus investment on activities that

influence shopper behavior Purchase

Shopper’s needs

Outlet selection

ProductSelection

Solution location

Shopper’s interpretation

Five questions that guarantee improvements in RoI

What consumption opportunities

exist?

Which shoppers

will support these?

Where can you

influence these

shoppers?

What is required in-store?

What investmen

t is needed?

Join the revolution

Start with the five-step model

Start understanding shoppers

Set key performance indicators

Start measuring

Challenge working practices

Be ready for tomorrow

Find out more in“The Shopper Marketing Revolution”

“For those on the fast track of modern business (The Shopper Marketing Revolution) is a must read.” Paco Underhill Author of Why We Buy: The Science of Shopping

“Invaluable to the careers of very many of the marketing professionals in the industry." Herb SorensenAuthor of Inside the Mind of the Shopper

Available now on Amazon!

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