Winning at Duty Free - PRS IN VIVO · •10+ Offices in Chicago, Frankfurt, Geneva, London, Milan,...
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1 Using Behavioral Economics Levers To Influence Travel Retail Shoppers Presented at MRMW APAC 2017 Chloe Kuang Yeeli Lee June 28, 2017 Winning at Duty Free
Transcript of Winning at Duty Free - PRS IN VIVO · •10+ Offices in Chicago, Frankfurt, Geneva, London, Milan,...
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Using Behavioral Economics Levers To Influence Travel Retail Shoppers
Presented at MRMW APAC 2017
Chloe Kuang
Yeeli Lee
June 28, 2017
Winning at Duty Free
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About PRS IN VIVOGlobal Scope & Local Expertise • Founded in 1972 with Head Office in New York
• 10+ Offices in Chicago, Frankfurt, Geneva, London, Milan, Mexico City, Paris, Rome, Shanghai and Singapore
• 700 partners and consultants worldwide
Behavior-based Expertise in Shopper, Packaging & NPD Research • Unmatched Experience & Norms (More than 10,000 Studies)
• Industry Thought Leadership (via Books, Articles, Speeches, etc.)
A Partner from Discovery to Screening to Validation• Global Qualitative Capabilities (Online, In-Store, Labs, CLT & Web)
• Pioneered the use of eye tracking and own the largest number of mobile eye glasses in the world
• Pioneered Simulated Shopperlabs® environments with 20+ permanent locations worldwide
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PRS IN VIVO Is A Merger Between In Vivo BVA, Who Pioneered The Use Of Shopperlabs …
Store Environments for Screening & Assessing New Products, Packs & Merchandising
Supermarket @ PRS IN VIVO ON-SHELF® Drugstore @ PRS IN VIVO ONLINE®
Supermarket @ PRS IN VIVO SHOPPERLAB® General Trade @ PRS IN VIVO SHOPPERLAB®
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… And New York-based PRS, Whose World Class Pack Expertise Is Recognized By FMCG Giants Around The World
At Perception Research Services (PRS),
our mission is to help our clients "win at retail"
in the global marketplace.
Since 1972, PRS Has Conducted Over 12,000 Studies to Help Clients Improve Their Packaging & Shopper Marketing
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PRS Pioneered The Use Of Eye-tracking Back In The 1970s
Documenting How People Shop & Engage with Marketing Communications
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To Collect Real Behavior Data, We Use Mobile Eye-tracking Of Shopping Trips
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Topics We Will Cover Today
• What is Behavioural Economics
• How to leverage Behavioural Economics in digital marketing
• Common mistakes uncovered by eye-tracking of shopper journeys
• How to leverage Behavioural Economics to influence shopping behaviour
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The Travel Retail Channel
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Travel Retail (“The 6th Continent”)
• Over 1 billion people travel internationally each year
• 15% of the global population
• 83% consider shopping to be an important part of their trips
• The Duty Free market is expected to expand to US $64 Billion by 2020
• Annual growth is projected at nearly 7%
Source: Global Omnichannel (April 2017) & Verdict Retail
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…But There are Unique Challenges in this Channel
• The Golden Hour (With a “Hard Stop”)
• Space Pressure
• Unpredictable Stock Availability
• Cultural Challenges(Leading to Language & Service Issues)
• Limited Awareness of “Travel Exclusives”
The Travel Retail Channel is Different & Distinct from Department Stores
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PRS In Vivo is Focused on Applying Behavioral Economics
• “System 1” vs. “System 2” Thinking
• The Importance of Context
• Moving Beyond Rationality (Drivers of Influence & “Nudge”)
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Sub-Conscious Factors Drive Our Decisions…
We are not rational agents maximizing self-interest…
… but humans driven by impulse, habits and context.
…and These Implicit Forces are Consistent & Predictable.
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PRS IN VIVO Has Focused on Applying These Forces…
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What Does It Take To “Plant” Your Brand In the Shoppers’ Consideration Set Before They Travel?
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Messages That Spread
“Limited Edition” = Scarcity Bias
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More Messages That Spread…
Source: Marketingland.com, December 2013
Philippines Pantene Ad With Almost 10 Million Views on YouTube!
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Applying Behavioral Economics Levers in Digital Strategy
Platform
Content
Digital Strategy
Behavioral Economics
Helps Prioritize Where To Invest
Helps Prioritize What Message Is Engaging
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To Navigate a Complex World of Overwhelming Choice…
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… We Subconsciously Rely On “System 1” While Shopping
Autonomic, subconscious, lightening fast, leverages emotion and generates strong feelings of
certainty.
SYSTEM 1Rational, conscious, requires
effort, works slowly, examines, calculates and weighs
evidence.
SYSTEM 2
Yet At Times, Traditional Marketing & Research Continues To Focus On System 2.
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Our Core Beliefs About Shopping
Purchase decisions are…
Overwhelmingly behavioral, rather than rational
Greatly influenced by context
Driven by what is seen, recognized & easily shop-able
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Turning Shoppers into Buyers: The 6-3-1 Framework
3ft
Shop It(Active Search)
Shop-Ability & Immediate Understanding
6ft+
See It (Attention)
Visibility & Recognition
1ft
Buy It(Closing Sale)
Visceral & Rational Communication
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Best Practice at 6+ Feet
Creating a Recognizable “Beacon” in the Store
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Common Mistakes at 6+ Feet
The Pack is Recessive & Doesn’t Drive
Engagement
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From 3 Feet Away, the Emphasis is on Shop-Ability
Using Color-Coding or Pack Structure• To Signal Different Quality Levels
Speaking to Uses & Usage Occasions • And/or Best-Selling Products!
Descriptive/Intuitive Product Names• Use Nick Names from Social Media
“Making It Easy” for Shoppers Find the Right Product
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Best Practice at 3 Feet
Use of Simple Color-Coded Packs and/or POSM to Facilitate Shopping
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Common Mistakes at 3 Feet
Making It Difficult to Engage!
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At 1 Foot Away (In the Hand), the Emphasis is on Visceral & Rational Communication
Closing Sale by “Feeling Special” (Embodying a Dimension)
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Wrapping Up5 Major Opportunities
Wrapping Up 5 Principles to Win in Travel Retail
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5 Principles to Win in Travel Retail…
1. Harness Behavioral Economics Levers to Influence Pre-Trip Consideration
2. Start with the Shopper Mindset & Context
3. Design for Visibility & Recognition at 6+ Feet
4. Facilitate Shopping at 3 Feet
5. Convert Shoppers into Buyers at 1 Foot
31www.prs-invivo.com
Thank You
Chloe Kuang
Director of Shopper Insights & Category Strategy
Yeeli Lee
Vice-President
Managing Director (Asia)
Please visit www.prs-invivo.com
32www.prs-invivo.com
PRS IN VIVO Senior Client Servicing Team for Asia
Nichole Gu
Senior Research DirectorHead of Quantitative (Asia)
O: +65 6590 7008
Nilanjan Majumdar
Senior Research DirectorHead of Qualitative (Asia)
O: +65 6590 7002
Melvin Ng
Senior Research Director
O: +86 21 6128 1388 ext 9876
Gail Ng
Qual Research Director
O: +86 21 6128 1388 ext 9891
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Recent White Papers at PRS IN VIVO
✓ Optimizing Packaging for E-Commerce
✓ Gauging Emotion in Shopper Research
✓ Making Packaging & POSM Work Together
✓ Designing for the System 1 Shopper
✓ The “6-3-1” Framework for Winning in Store
✓ Simple as A-B-C: 3 Steps to Improve Your POS ROI in Asia
Please visit www.prs-invivo.com
