Shopper Marketing 2013

Shopper Marketing- 2013

How to turn shoppers into buyers?

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Agenda

1. Definition of shopper marketing

2. Why is shopper marketing that important?

3. Differences with consumer marketing

4. Overcome shopping barriers

5. How to deal with Shopper marketing?

6. Some important trends

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What is shopper marketing?

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“Shopper Marketing is the use of insights-driven marketing

and merchandising initiatives to satisfy the needs of targeted

shoppers, enhance the shopping experience and improve

brand equity for retailers and manufacturers.

The ultimate goal is to improve business results for all parties

involved.”

Turn shoppers into buyers!

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The Evolution towards Shopper MarketingThe big waves in retail Marketing

A natural progression dictated by seismic changes in :

• Consumer/Shopper Behavior

• Mass Communication

• Retail landscape

• Technological innovation

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19751985

1989

19952000

Today

Scanning

Space

Management

Category

Management

ECR Category

Management

Best Practices

Next Generation

Store Designs

Shopper

Marketing

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Agenda







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2. Why shopper marketing is that important.

Question?

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What is the biggest brand

for orange juice?

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Question?

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What do you do when

Duracell batteries are

out of stock at Carrefour?

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On the product/brand level:

• 3000 marketing messages/day

• > 30.000 product introductions in 1 year (average)

• 130.000 sales promotions in supermarkets in 2012

(decrease of 1.5 %)

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On the retail side:

• Convenience: number of retail channels doubled in 50 years

• Choice is unlimited: f.i. Carrefour Planet stocks > 30.000 products

• Strong retail brands (housebrands)

• Delhaize = quality, Colruyt = sustainability, Carrefour = choice

• Success of hard discounters even increases

• More and more concept stores/pop-up stores

• Online shops are uncountable

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The retailer is part of game!

DELHAIZE

ALDI/LIDL

COLRUYT

Open to

Control

Perspective “me/us” Perspective “others”Consumption society

Temptation

CARREFOURCORA

The world at my feet

Enjoying quality in food

Massclusivity Rational & Ethical

Efficiency

Basic Needs

Strong brands!

Own client strategy!

Own positioning!

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The retailer is in the game!

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Shopper

Retailer/

dealer

brands

Physical/virtual/digital

environmentCompetitive environment

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On the consumer side:

68% brand switchers

5% loyal to a brand (devided loyalty)

73% shops with 5 different retailers

26% is loyal to a retailer

Seeks for experience and authenticity

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On the consumer side:

Too much! confusion

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Shoppers are not customers! And vice versa

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Shoppers are not customers! And vice versa.

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Who drinks Coca- Cola? Who buys Coca- Cola?

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3. Shoppers are not customers! And vice versa.

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Customer marketing

• Who is the consumer?

• Where does he use my product?

• When does he use my product?

• How does he use my product and

why?

• How can I increase the use of my

product?

SECOND MOT (moment of truth)

Shopper marketing

• Who does the shopping?

• Where does he do the shopping?

• When and how?

• Why does he buy this product or

brand?

• How can I make the shopper buy

MY brand?

FIRST MO (moment of truth)

80% OF THE BUYING DECISION HAPPENS INSTORE!

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Shoppers are influenced in- and outside the physical/ virtual

store:

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Outside the store

• Demographics

• Psychological element

• Family issues

• Personal issues

• Consumer advertising

Inside the store

• Retail circumstances

• Mindset

• Time & budget pressure

• Discovery

• Senses

SHOPPER

MARKETING

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Shopping segments

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Lot of time

Like to shop

Fun shopping

Impulse shopping

Shopping list

High spending

Less time

Hates (daily) shopping

Run shopping

Comparison shopping

No shopping list

Low spending

Remark: most of the shoppers are “multi- vidual”

Sa

ve

tim

eS

pe

nd

tim

e

Save money Spend money

Comparison

shopping

Fun

shopping

Discount

shopping

Convenience

shopping

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Shopper research:

Understand how shoppers think, plan, decide,

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• Focus Groups

• Shopalongs

• In-store Shopper Groups

• Subject Matter Expert Interviews

• Ethnographic research

• Online and Traditional Surveys

• Advanced quantitative analytics

• Geographic data mapping

• Secondary subscription databases

A good fragrance increases

sales with15%

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Agenda







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What is a shopping barrier?

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• De-selection Barriers

• Ones that cause a brand to be “ruled out” on a cursory overview of the

category

• Selection Barriers

• Barriers that prevent a brand to be chosen upon closer consideration

A barrier is an element of the product offering or the retail

environment that prevents a shopper from buying a brand

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Shopper marketing is about overcome shopping barriers

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Prevent Selection

1. Unconvincing Benefit; Performance Uncertainty

2. Choice Confusion

3. Usage Uncertainty

4. Poor Value

5. High threshold to close the deal

De-Selection

1. Perceived lack of need

2. Low brand line-up or awareness

3. Lack of “shelf pop”

4. Habit change

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Perceived lack of need

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Heard of your brand, but does not want or need it now.

Bring the consumer to the point of wanting your

product now!

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Low brand line-up or awareness

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Not aware of anything beyond what I typically buy.

Help the Shopper find something that best

meets her needs!

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Lack of Shelf Pop

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Brand isn’t on radar screen when shopping.

Make sure the Shopper doesn’t overlook your brand,

particularly at shelf.

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Habit change

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Too hard to change what I’m used to doing/using.

Make sure the Shopper doesn’t overlook your

brand at shelf.

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Unconvincing Benefit

Performance Uncertainty

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Don’t believe you deliver the benefit

Convince them you do!

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Choice confusion

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Confused about which to choose.

Help them be smart & make the right choice!

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Usage uncertainty

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Not shure what it would be like to use.

Give them an idea what is required to use the

product!

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Poor value

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Can get the benefit from another, cheaper brand.

Overcome the value equation in a competitive

way.

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High threshold to close the deal

Websites are not user friendly for chosing products, nor paying products

• navigation unclear

• Offer not detailed, visual, ... enough

• Technical issues

• Too many thresholds (passwords, data, ...)

• Feeling of unsecurity

• High cost for delivery

• No sufficient distribution for delivery

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Control, test, measure online shopping

experience (drop out …..)

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Conclusion on Shopper barriers

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• Shoppers buy advantages

• Shoppers like change (f.i. in retail)

SAINE COMMON SENSE !

OBSERVATION!

• Selective perception: get seen!

• Volume presentation works!

• Influence key points in the shop:

o “star” offers

o Reduced availability

o Compare 3 products instead of 2

• Less is more!

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Conclusion on Shopper barriers

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1. Define the shopper barriers

2. Make a selection (1 – 2, KISS)

3. Define your shopper marketing execution plan

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Agenda







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6 steps, all linked with each other, towards an effective

Shopping Marketing Strategy

Phase 1: Collect information & gain insights

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Get to

know

yourself

Get to

know

your

retailer

Get to

know your

shopper

Define

Shopper

Marketing

Strategy

Execute

&

Measure

Get to know your market

1 3

2

4

5 6

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7 theories of Shopper psychology

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1. Shoppers have a limited ability to focus

2. Shoppers shop with their peripheral vision

3. Entry to the category is via Signpost Brands

4. De-selection before selection

5. Shopping mirrors usage habits

6. Discontinuity creates triggers in-store

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Phase 2: Strategy Definition, Execution & Measurement

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Get to

know

yourself

Get to

know

your

retailer

Get to

know your

shopper

Define

Shopper

Marketing

Strategy

Execute

&

Measure

Get to know your market

1 3

2

4

5 6

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Some basic principles

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Shopper marketing fits into the complete marketing mix & -plan

• Never forget about the Brand Equity

• Define the main shopping barriers and keep it simple

• Shopper marketing is about immediate effect

• Shopper marketing messages are direct and give the answer to “Why should I buy,

here and now”.

• Although FMOT marketing seems pragmatic, emotions play an important role

Product Price Place Promotion

Packaging Coupons Category mgm Sampling

Claim Reduction Retailer equity POS

Language Volume actions Experience

(sensorial)

Loyalty

… … … …

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A way of thinking about FMOT marketing:

The shopping cycle

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How to evaluate a shopper marketing campaign?

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3 questions to ask:

Stop Engage Close

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Some important shopper marketing trends

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6. Most important shopper marketing trends

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* Carre Associates Shopper Reseach 2010

• The consumers get smarter & seek for relevance*

• Shopper marketing moves between smart shopping and pleasure shopper

• Digital evolution can cause shopper revolution

• Shopper marketing is more & more sensorial

• Multi channeling has become common sense

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The consumers get smarter & seek for relevance

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Informed, compare

Pre-sales more important

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Shopper marketing moves between smart shopping and

pleasure shopping

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Easy

Efficient

Enjoyable

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Digital evolution can cause shopper revolution

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• Pre-sales (stock check, choice)

• On point of sales (price comparison, info, payment via mobile)

• Location marketing (offer based on location)

• QR Code

• Augmented reality

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Shopper marketing is more & more sensorial

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Senses

Taste

Light

sound

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Multi channeling has become common sense

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• 86% of consumers use several channels at once

• Online offline :

• eBay, Google & Amazon

• New buzzwords:

o ROPO(Research Online Purchase Offline)

o Phygital (combination of the physical and digital worlds)

o Channel integration

o Multi-screen

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Innovative companies that change the world of shopping

Hointer: takes humans out of the shop

Zara: includes stocking light and replenising with totally

new products

Selfridges: combining pop-up shops with art

Augment: is trailblazing in simulated reality, a necessity

in today's world of e-commerce.

STORY: is a retail space that completely changes every

four to eight weeks and gives e-commerce sites like

Birchbox a physical store

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Innovative companies that change the world of shopping

Storenvy: allows independent vendors to open and customize their own virtual

shops

Threadless: is an apparel company that lets artists submit designs for t-shirts,

housewares and more. The designs with the most votes become available for

purchase.

Amazon continues to be the leader in e-commerce, including much more

categories

Fab is the "Ikea Of Fashion.“

Zappos builds customer relationships like no other.

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THANK YOU!

[email protected]

@carovervaeke

www.thehouseofmarketing.be

ANY QUESTIONS?

mailto:[email protected]

http://www.thehouseofmarketing.be/

Shopper Marketing 2013

Marketing

Transcript of Shopper Marketing 2013