CCG 2015 Industry Shopper Study

Seize the “Moments that Matter”

Industry Shopper Study2015

PATH TO PURCHASE

– 2 – 2015Industry Shopper Study

©2015 Cadent Consulting Group. All rights reserved.

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TABLE OF CONTENTS

Overview ........................................................................................... 3

Executive Summary ........................................................................6

Key Findings .....................................................................................8

Shopper Marketing

Path to Purchase

Moments That Matter

Organizing for Success ................................................................23

Action Plan ..................................................................................... 29


OVERVIEW


Who is Cadent Consulting Group?Cadent Consulting Group, established by the founders and senior leadership team from Cannondale Associates, is a marketing and sales management consulting firm serving the Consumer Packaged Goods (CPG) and Retail industries. We offer a broad array of information, insights, capabilities and expertise across the manufacturer, retailer and shopper spectrums.

CADENT CONSULTING GROUP OVERVIEW

SpendingProductivity

3D Pricingsm

IndustryBenchmarking

OrganizationDesign & Training

Customer Segmentation/Channel Development

GrowthAccelerators

GROWTH & OPTIMIZATION

CategoryLeadership

ShopperInsight

Spending Productivity

3D Pricingsm

Industry Benchmarking

OrganizationDesign & Training

Customer Segmentation/Channel Development

Growth Accelerators

Category Leadership

Shopper Insight

MissionOur mission at Cadent is to help our clients drive growth & profitability while optimizing investment and organization productivity. We aim to translate insights into competitive advantage for our clients.


Research Objectives/MethodologyCadent Consulting Group’s management team, while at Cannondale Associates, published the first Category Management/Leadership Industry Study in 1994 closely followed by the Trade Promotion Industry Study in 1995 and the annual PoweRanking® Study in 1997. Over twenty years of experience in category management, trade promotion, shopper insight and industry best practices has deepened our knowledge and expertise across manufacturers, retailers and shoppers. Inclusion of shopper responses is a totally new component to our traditional manufacturer/retailer studies. Enhancing manufacturer and retailer perspectives with an understanding of the real boss – the shopper – adds significant insight to the study.

The objective of the Industry Shopper Study is to evaluate what really matters to convert shoppers into buyers. Do shoppers follow a strict, regimented Path to Purchase for routine, low-ring items? Or is it simply a question of a moment or moments that really matter?

Why the Shopper?In our previously released 2014 Marketing Spending Study we identified that marketing spending represents nearly $225 billion in annual expenditures by CPG manufacturers, or 20.6% of sales. We also noted that shopper marketing spending had doubled to 13.5% of the overall marketing budget since 2012. Are these expenditures hitting the mark?

The specific goals of this research were to:

• Assess the fastest growing spending component, Shopper Marketing• Understand the evolution of the Path to Purchase and its current state today• Identify what really matters to shoppers, retailers and manufacturers• Determine the optimal organizing principles given an integrated manufacturer/

retailer/consumer and shopper framework

Study MethodologyOver 1,000 manufacturer, retailer and shopper participants were surveyed online with customized questionnaires. Selected in-depth, 1-on-1 follow-up interviews were completed to gain a better understanding of Shopper Marketing spending and effectiveness.

CADENT CONSULTING GROUP OVERVIEW

Manufacturers Retailers

Shoppers


EXECUTIVE SUMMARY


• Shopper Marketing: This marketing spending component has more than doubled since 2012 from 6% to 13.5% of the total marketing budget. This equates to an increase of over $17 billion specifically targeted at the shopper. We believe, however, that this may be the high water mark as costs begin to outweigh benefits. While other marketing spending components such as traditional advertising, consumer promotion, trade promotion and digital may also incorporate the shopper, shopper marketing is specifically designed and focused on converting shoppers into buyers.

• Path to Purchase Perspective: Shopper Marketing has grown in tandem with the Path to Purchase construct. In its simplest state Path to Purchase incorporates the genesis of demand and the evaluation of options including outlet, navigation of the store and purchase decision. It has served as a useful model for understanding shoppers and guiding marketing investments.

Recent Path to Purchase models have increased in complexity by incorporating a more complete purchase cycle and multiple feedback loops through digital.

• Path to Purchase Today: Cadent Consulting Group conducted research in 2014 incorporating 4,000+ discrete purchase experiences. We found that while the Path to Purchase is a useful construct, it is a bit of a misnomer and typically it is only a point or moment along the cycle that stimulates primary awareness and/or influence to buy. The concept of a complete Path to Purchase cycle for an individual product purchase, while intriguing, rarely meshes with reality.

• Moments That Matter: This construct integrates the consumers, shoppers and customers.• Consumers: What do they want? What is the need state or occasion that really matters?• Shoppers: How do they shop? Where are the points of influence that affect awareness and purchase?• Customers: At what retail channels or specific outlets do they seek insights or make a purchase?

• The Barbell: Our analysis of discrete points of influence during the purchase process indicates a “barbell effect.” Over half of purchase awareness and influence is generated at home before going to the store and approximately 30% is generated in the aisle or section. While there are core differences by category and product, the actual moments that matter typically occur at either end of the shopping trip: at home or in the aisle.

• Organizing for Success: Over the past two decades individual silos have been created between traditional marketing and sales that have added cost and complexity. These include shopper marketing, shopper insights, category management, trade marketing, sales planning, customer marketing, trade promotion, digital, etc.

However, isn’t it all one marketing dollar that is being spent to influence both awareness and purchase? Organizing for success means a more streamlined, focused organization targeting the consumer/shopper and moments that matter. Internal communication within a single group can be challenging; communication across multiple functional silos increases complexity exponentially.

We recommend placing omni-channel/digital at the “head” of your organization and the consumer/shopper at the “heart.”

• Action Steps: How can you best identify, segment, target and organize against the moments that matter to convert shoppers into buyers in your category or your store? Seize the “Moments that Matter.”

EXECUTIVE SUMMARY: “SHOPPER”


SHOPPER MARKETING


SHOPPER MARKETING SPENDING: 2012/2014

Shopper Marketing is targeted at converting shoppers into buyers. While not the only budget component to address this goal, it is the one specifically dedicated to shopper/buyer conversion. The Shopper Marketing budget has grown from 6.0% to 13.5% of all marketing spending over the past two years or an increase of over $17 billion. While this increase was not fully incremental and funds were often sourced from more traditional marketing spending including trade promotion, advertising and consumer promotion, the growth was unprecedented when tracked over 20 years. The goal of shopper marketing is to convert shoppers into buyers based upon specific insights that target shoppers as they progress along the Path to Purchase. Is this reality? Or is shopper marketing just a new term for account-specific marketing, co-marketing, customer marketing or account menus?

Ideally shopper marketing is based upon shopper insights to address needs/wants and customized to convert shoppers into buyers. However, many shoppers simply don’t care or don’t value the message.

MANUFACTURER – Marketing Spending by Type (% of Budget)

Shopper Marketing and Digital are the growth drivers in marketing spending.

Trade Promotion49.8%

Trade Promotion43.9%

Shopper Marketing

6.0%

Shopper Marketing

13.5%

Digital7.1% Digital

12.5%

Traditional Advertising

25.4%

Traditional Advertising

22.2%

Traditional Consumer Promotion

11.7%

Traditional Consumer Promotion

7.9%

2012 2014


SHOPPER MARKETING: TRUE GROWTH OR A PROXY FOR TRADE PROMOTION?

MANUFACTURER – Shopper Marketing Spending by Vehicle (% of Budget)

Overall growth more than doubled, but there were only subtle changes in the mix by vehicle.

RETAILER – How Effective is Manufacturer Shopper Marketing by Vehicle in Generating Sales? (% Effective/Very Effective)

SHOPPER – How Effective is Shopper Marketing on Impacting Shopper Awareness/Purchase decisions? (% Effective/Very Effective)

Retailers favor in-store events, retailer specific coupons and fixtures as the top drivers in Shopper Marketing.

Shoppers tend to favor retailer coupons and merchandising.

Retailer Specific Merchandising

Fixtures35.3%


Fixtures35.5%


Fixtures

Retailer Specific Merchandising Fixtures

In-Store Advertising

15.7%


15.9%



Retailer Specific

Coupons/Offers20.6%

Retailer Specific

Coupons/Offers18.6%

Retailer Specific Coupons/Offers

Retailer Specific Coupons/Offers

In-Store Events14.2%

In-Store Events16.2%

In-Store Events

In-Store Events

Sampling/ Demos8.3%

Sampling/ Demos9.0%

Sampling/Demos

Sampling/Demos

Other5.9%

Other4.8%

89%

27.5% 24.4% 23.2%16.0% 15.2% 12.2% 13.7% 12.8% 11.5%12.2%

89% 87%78%

67%

Generating Awareness Influence on Purchase

2013 2014


Manufacturer Perspectives: Shifting In-Store• “We need to get better at winning in-store. That’s what our shopper marketing is all about.”• “We’re shifting from brand awareness to retail shelf presence in the competitive environment.”• “We want to have more focus on in-store merchandising to capture buyers in the department

vs. out of store advertising.”• “We’ve had to shift to more retailer-specific programs targeting the consumer who shops

in that specific retailer.”• “We’re looking to test some in-store TV to gain additional displays.”

Retailer Perspectives: Customized• “The more relevant these vehicles are to the shopper, the more effective they will be.”• “Delivery of the right value proposition to the consumer determines the effectiveness.”• “Retailer specific coupons can help drive loyalty to a particular retailer and if that retailer

captures information about the shopper who uses that coupon and then customizes future offers for that shopper… that can be very effective for both the retailer and the manufacturer.”

• “We want manufacturer suppliers spending their money with us.”• “Our focus is on our frequent shopper card.”• “Sampling tends to be a one day event and can miss a lot of shoppers.”

Shopper Perspectives*: Product, Effective, Buy, Store, Coupons

*Note: Most common “words” in response to open ended question on Shopper Marketing effectiveness.

SHOPPER MARKETING: TRUE GROWTH OR A PROXY FOR TRADE PROMOTION?

Shopper Marketing is all about winning in store. Manufacturers often just pay lip service to brand equity building initiatives.

Shopper Marketing echoes common themes. The focus is on delivering value in a challenging economy.

Customized and personalized retailer offers can help all parties.


PATH TO PURCHASE


PATH TO PURCHASE – 2005-2010

The term “Path to Purchase” conjures up just as many images as it does organizational go-to-market approaches. In its simplest state the Path to Purchase incorporates the genesis of demand and the evaluation of options including outlet, the navigation of the store and the purchase decision. Alternative models focus on a Pre-Shop/Shop/Post-Shop process flow or an Awareness/Influence/Purchase/Post-Purchase flow. Frequently incorporated into the traditional Path to Purchase is the actual consumption, or usage, component.

Initially most Path to Purchase constructs relied on a linear orientation. This assumed that shoppers made rational and sequential decisions without significant behavior modification or feedback loops. While simplistic, this was an effective way to embed the idea that shopper insights and shopper marketing were all about converting shoppers into buyers.

FROM HERE:

Linear, clear, focused…

Goal: Convert shoppers into buyers.

DEMAND GENERATION

OUTLET SELECTION

STORE NAVIGATION

PRODUCT PURCHASE


PATH TO PURCHASE EVOLUTION – 2011-2014

Digital has disrupted the original linear model and created a continuous feedback loop with numerous interactive intermediations.

More recent Path to Purchase models have increased in complexity incorporating the base Pre-Shop, Shop and Post-Shop components. The addition of digital/mobile now ensures that insight is always within a keystroke. External influence factors including medical (Pediatricians, Eye Care professionals), government (WIC), etc. have also added significant complexity depending on the product category.

TO HERE:

Digitally enhanced feedback loop with continuous purchase cycle

Who actually shops for routine CPG items like this? Is it really this complex?

Consumption/Usage

Demand Generation

Outlet Selection

NavigationItem Selection

• WHO – For Me, Family• WHAT – Item/Occasion/Selection• WHEN – Immediate Use/Stock-up

• Behavioral Impact• Brand Advocacy• Social Media

• WHERE – Store Drivers• WHY – Trip Missions

• In Aisle• At Section• Shelf; Assortment;

Pricing/Promotion

• At Store• In Store• To Aisle

PATH TO PURCHASE


THE ROLE OF DIGITAL/MOBILE

Digital/Mobile has now totally surrounded the Path to Purchase and Shopper Marketing can engage shoppers whenever and wherever they are most ready to buy.

Digital/Mobile has changed the game in terms of targeting shoppers, identifying what they want and how retailers meet their needs. Digital intermediation can impact anywhere in the demand cycle and its power is in its ability to transcend venues via mobile. Shoppers can evaluate online (webrooming) or in store (showrooming) and purchase anywhere.

The digital components evaluated in this study include: websites, social media, search engine optimization and online coupons, among others. Digital intermediation often requires some shopper effort, but ultimately reduces sources of friction for the buyer. Better information, better prices and improved selection are all benefits of digital intermediation.

Digital/Mobile has added another dimension to the Path to Purchase.

DIGITAL/MOBILE“Changing the Game”

RETAILERMeet Shopper Needs

CONSUMERWho They Are

SHOPPERWhat They Want


MOMENTS THAT MATTER


MOMENTS THAT MATTER

The Moments that Matter construct integrates a specific understanding of the key points of awareness and influence. The three key factors are:

• Consumers: What do they want? What is the need state or occasion that really matters?

• Shoppers: How do they shop? Where are the points of influence that affect awareness and purchase?

• Customers: At what retail channels or specific outlets do they seek insight or make a purchase?

Identify the Moments that really Matter for your category/brand.

SHOPPER SEGMENTSHow They ShopPoint of InfluenceWhat They Want

OccasionCONSUMER SEGMENTS

Whe

re T

hey

Go

CU

STO

MER

SWho?

How?

What?

When?

Where?Why?


MOMENTS THAT MATTER: SEGMENT CONSUMERS/SHOPPERS/CUSTOMERS

Let’s take a look at hypothetical consumer segments and how they might think about food, as an example, as well as shopper and retailer implications.

How can you understand how to better target your segments?

Example

“I am what I eat.”

“Fast and frequent.”

SHOPPER SEGMENTSWhat They Want


Whe

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hey

Go

CU

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S

How They ShopPoint of Influence

Consumer Quantity over quality• Filling• Tastes great• Satisfies me

Shopper• Center store loyal• Big sale buyer

Retailer• Value outlet focused

Consumer Health & wellness• No fat• High nutrition/protein• Probiotics

Shopper• Influenced by facts –

what I read

Retailer• Natural food stores• Retailer organic sections


MOMENTS THAT MATTER: UNDERSTANDING THE SHOPPER

Our shopper-based approach to Moments that Matter integrated 30+ demand stimuli with distinct venue and timing considerations as well as the impact of awareness and influence on purchase.

These factors represent the “what,” the specific demand stimuli, touchpoints or “Moments that Matter.” Other factors including who, when, where, why and how are also considered. With marketing touchpoints growing exponentially – fueled by Shopper Marketing and Digital offerings – there is truly a need for manufacturers and retailers to “identify the controlling elements.”

Below are the Points of Influence that were considered. While by no means exhaustive, we believe they are representative of the major options available to most manufacturers and retailers today.

Advertising Consumer Promotion

Trade Promotion Digital Shopper

Marketing

MA

NU

FAC

TUR

ER

• Manufacturer television commercial

• Manufacturer magazine advertisement

• Manufacturer radio advertisement

• Newspaper insert coupon

• Coupon for the product mailed to your home

• Coupon for the product received in-store

• Both store flyer/circular and product display

• Store flyer/circular received at home or in the store

• Product display• Sale/price

reduction at the shelf

• Manufacturer mentions in internet search results

• Manufacturer banner ads

• Manufacturer ads in social media

• Manufacturer website

• Emails from manufacturer

• Manufacturer online coupons

• Manufacturer mobile app

RET

AIL

ER

• Retailer television commercial

• Retailer magazine advertisement

• Retailer radio advertisement

• Coupon for the product mailed to your home

• Coupon for the product received in-store

• Retailer mentions in internet search results

• Retailer banner ads

• Retailer ads in social media

• Retailer website• Emails from

retailer• Retailer online

coupons• Retailer mobile

app

• In-store events• Retailer-specific

section signage• Product sampling

or demonstration• Retailer-specific

coupons/offers• Retailer

customized advertising


MOMENTS THAT MATTER: TARGET COMMON SHOPPER MOMENTS ON THE PURCHASE CYCLE

Our research integrated over 4,000 discrete shopping occasions and helped identify the most common Moments that Matter. The results were highly illuminating. Path to Purchase is a misnomer and Moments that Matter is more appropriate.

These are the most common Moments that Matter on the purchase cycle. Most of these “Moments” are simply one point in time, while a few are sequentially linked. While these are the most common, we should note that there is significant variability by category, messaging, timing and availability of marketing vehicles.

All media types impact purchase decisions from online to TV to trade promotion. Seize the “Moments that Matter” for your key consumer, shopper and customer segments.

Most Common Moments That Matter on the Purchase Cycle

At Home Before Going to Store Navigation in Store At Section

1 A sale/price reduction at the shelf

2 A newspaper insert coupon

3 Sale/price reduction near the shelf

4 Manufacturer television commercial

5 Store flyer/circular received at home

6 Manufacturer online coupons

7 Product display

8 Product display

9 Product display and price reduction at the shelf

10 Newspaper insert coupon Store flyer/circular received at home or in-store

11Coupon for the product mailed to your home and a newspaper insert coupon

12 Coupon for the product received in-store

13 Coupon for the product mailed to your home

Store flyer/circular received at home or in the store

14 Manufacturer online coupons


MOMENTS THAT MATTER: TARGET THE RIGHT SHOPPER POINTS OF INFLUENCE

While there are many vehicles, timing and venue considerations, we have conducted an analysis of the different demand stimuli on a quadrant of “Aware” and “Care,” with “Care” representing influence on purchase. Those marketing touchpoints in the upper right quadrant are the ones that shoppers are more aware of and influenced by. While this is not true for every category or marketing objective, this provides a general direction and illustrates the importance of Trade Promotion and Consumer Promotion, as well as the growing influence of Digital and Shopper Marketing.

Of note, the Digital factors have presence across all four quadrants but 65% of the Digital touchpoints were in the “Not Aware and Don’t Care” quadrant. This may be due to the immense fragmentation in digital media or lower overall effectiveness.

Indexed Factors

150

– 50 100 150 200 250

140

130

120

110

100

90

80

70

60

50

Manufacturer online coupons

Coupon for the product received in-store

Sale/price reduction at the shelf

Newspaper insert coupon

Store flyer/circular received at home or in the store

Retailer-specific coupons/offersBoth a store flyer/circular and a product display

Coupon for the product mailed to your home

Retailer online coupons

Emails from retailerRetailer-specific section signage

Retailer customized advertising

Product sampling or demonstrations

Manufacturer radio advertisement

Emails from manufacturer

Manufacturer mobile app

Retailer radio advertisement

Retailer ads in social mediaManufacturer ads in social media

Manufacturer banner ads

Retailer banner adsManufacturer magazine advertisement

Retailer mentions in Internet search results

Manufacturer mentions in Internet search results Retailer mobile app

Retailer magazine advertisement

Retailer television commercialRetailer website

Manufacturer television commercial

Product display

Manufacturer website

In-store events

Aware But Don’t Care

Not Aware and Don’t Care

Aware and Care (Influenced By)

Not Aware But Care

Aw

are

Care


MOMENTS THAT MATTER: LEVERAGE THE BARBELL EFFECT

Further analysis of these 4,000 shopping occasions and key Moments indicates that there is a significant “barbell” in the purchase decision process. At-home before going to the store communication has direct awareness and influence on 53% of purchases, while in-aisle/section influences 29% of purchases.

We have segregated the key awareness and influence factors on purchase into two tiers indicating relative importance. Before going to the store, all five marketing types play a role: Consumer Promotion, Advertising, Trade Promotion, Digital and Shopper Marketing. In the store, the primary emphasis is on Trade Promotion (Pricing and Displays) with Shopper Marketing (Retailer Signage) as a supplement. There were no singular awareness/influence factors occurring either at the store before entering or in-store before entering the aisle.

Focus on “Home” and “Aisle/Section” with the right marketing touchpoints to stimulate awareness/purchase.

Points of Influence

% Awareness/ Influence on Purchase

53% 8% 10% 17% 12%

Key Factors:

TIER 1

• FSI• Store Flyer/

Circular• TV Ad• Direct Mail

Coupon• Retailer Specific

Coupon • Retailer Online

Coupon

– –

• Sale/Price Reduction

• Display

• Sale/Price Reduction

• Display

TIER 2

• Retailer Website

• Manufacturer Online Coupon

• Retailer Email

– – • Retailer Signage –

ALL SPENDING TYPES

TRADE PROMOTION/SHOPPER MARKETING

At Home Before Going

to Store

At Store Before

Entering

In Store Before

Entering Aisle

In Aisle

At Section

PRE-SHOP SHOP


ORGANIZING FOR SUCCESS


FUNCTIONAL SILOS ADD COMPLEXITY AND COSTS

Is your organization structured to capture vital shopper moments? Most organizations are functionally siloed and ostensibly address the Path to Purchase through shopper insight and shopper marketing.

The current environment, however, is one where investor pressures are forcing companies to cut costs to the functional bone with zero-based budgets.

We believe identifying, segmenting and targeting Moments that Matter with the right organization structure is where winning companies will evolve. For example, solutions can be focused against: What – the occasion, Who – the target, Where – retailer/other venue, and When – at what moment.

• Organization complexity encumbers communication and decision making.

“The single biggest problem in communication is the illusion that it has taken place.” – George Bernard Shaw

• Understanding what really works across the marketing and sales spectrum is much more feasible when minimizing functional and communication silos and bottlenecks. The marketing budget should be thought of as one fund, not separate buckets. Integrating the organization can optimize your marketing dollars and better target the Moments that Matter.

Organize to address the Moments that Matter.

TODAYSITUATION

SOLUTIONS

President

Marketing Sales

DigitalShopper

Marketing

Consumer Retailer Shopper

Consumer Research

Shopper Insight

Category Manage-

ment

Trade Promotion

Planning


ORGANIZATIONS ARE UNDER PRESSURE

OVERALL ORGANIZATION PERSPECTIVES“Our growth has flatlined; do I eliminate staff or restructure?”

– Mid-sized Food Manufacturer

“It’s an example of Parkinson’s Law. We add more functions and staff; we add more work, complexity and challenges.”

– Beverage Company

SHOPPER MARKETING PERSPECTIVES“We are cutting back our department and focusing more on national promotions. They are easier to execute.”

– Large Center Store Manufacturer

“Our plan is to refocus the Shopper Marketing department away from brick & mortar to online and digital.”

– HBC Manufacturer

“We are redeploying and targeting retailers with specific solutions which could include trade promotion, shopper marketing and digital.”

– Major Total Store Food Manufacturer

It’s all marketing…so what’s the right organization?


INTEGRATED MARKETING ORGANIZATION

An integrated marketing organization must begin and end with the consumer/shopper while reflecting the needs of manufacturers and retailers.

Internal functional groups to complement marketing and sales should be better integrated.

Consumer/Shopper-Centric Organization

Sales/Marketing

Integrated Marketing

Retailer

Consumer/ Shopper


ORGANIZATION VISION: DIGITAL “HEAD” AND CONSUMER/SHOPPER “HEART”

• Consumer/shopper-centric “heart”

• Informed by a digital/omni-channel “head”

Break down hierarchical structures and create a consumer/shopper-centric organization.

DIGITAL/OMNI-CHANNEL

CONSUMER/SHOPPER

PRESIDENT

SALES

CATEGORY LEADERSHIP

MARKETING

INSIGHTS

• Revenue management

• Trade promotion• Net sales

• Online• Mobile• Integration

• Demand generation

• Needs satisfaction• 4Ps• P&L

• Category management

• Shopper marketing

• Consumer• Shopper• Category


ORGANIZATION “SWEET SPOT” TARGET

An optimal organization must target and activate against the manufacturer/retailer/shopper “Sweet Spot” with minimal friction. Validate your “Sweet Spot” or common ground across the who, what, why, when, where and how questions.

Ask the questions as your shoppers/consumers and retailers would.

MANUFACTURER RETAILER

SHOPPER/CONSUMER

SWEET SPOT

WHO: Everyone – all potential buyers

WHAT: Reason to buy brand

WHY: Build our brand

WHEN: Any time

WHERE: Anywhere

HOW: Manufacturer controlled levers

WHO: Customized for me

WHAT: Relevant to me

WHY: Save me money; solve my problems

WHEN: I have a need or want

WHERE: Everywhere I am

HOW: Levers I control

WHO: Everyone – all my shoppers

WHAT: Reason to shop/buy at my store

WHY: Build my category/store

WHEN: In my store – ready to buy

WHERE: Within my sphere of influence

HOW: In-store/retail levers

Target


ACTION PLAN


ACTION PLAN: SEIZE THE “MOMENTS THAT MATTER”

1. Identify: The Moments that Matter.

• Consumers: Need states or occasions• Shoppers: Points of influence which will vary by category, time of year, etc.• Channels/Retailers: Why and where do shoppers go for both insight and purchase?

2. Segment for Success: Not all Moments are created equal for your brand and category.

• Identify brand strengths/opportunities• Identify category strengths/opportunities• View through shopper/retailer lenses

and quantify

3. Target: It’s all marketing. Target your marketing dollars not along a regimented Path to Purchase that few shoppers actually travel, but against the Moments that Matter to drive increased success for your organization.

Identify:

• Consumers: What are those need states and occasions by category, by time of year?

• Shoppers: What points of influence really matter and how can you best target the shopper?

• Channels/Retailers: Why and when are they chosen?

4. Organize to Implement: Reorient your organization and marketing focus against Moments that Matter.

• Develop an outside-in structure oriented with the shopper/consumer at the center

• Streamline for success with an integrated marketing organization

• Place digital/omni-channel at the “head” of your organization and the consumer/shopper at the “heart”

DIGITAL/OMNI-CHANNEL

CONSUMER/SHOPPER

PRESIDENT

SALES

CATEGORY LEADERSHIP

MARKETING

INSIGHTS

• Revenue management

• Trade promotion• Net sales

• Online• Mobile• Integration

• Demand generation

• Needs satisfaction• 4Ps• P&L

• Category management

• Shopper marketing

• Consumer• Shopper• Category

SHOPPER SEGMENTSHow They ShopPoint of InfluenceWhat They Want


Whe

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hey

Go

CU

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CCG 2015 Industry Shopper Study

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