shopper marketing 2013
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Shopper Marketing- 2013
How to turn shoppers into buyers?
Presentation1
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
2
Presentation1
What is shopper marketing?
3
“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!
Presentation1
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
4
19751985
1989
19952000
Today
Scanning
Space
Management
Category
Management
ECR Category
Management
Best Practices
Next Generation
Store Designs
Shopper
Marketing
Presentation1
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
5
Presentation1
2. Why shopper marketing is that important.
Question?
6
What is the biggest brand
for orange juice?
Presentation1
2. Why shopper marketing is that important.
Question?
7
What do you do when
Duracell batteries are
out of stock at Carrefour?
Presentation1
2. Why shopper marketing is that important.
8
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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2. Why shopper marketing is that important.
9
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!
11
Shopper
Retailer/
dealer
brands
Physical/virtual/digital
environmentCompetitive environment
Presentation1
2. Why shopper marketing is that important.
12
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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2. Why shopper marketing is that important.
13
On the consumer side:
Too much! confusion
Presentation1
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
14
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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.
17
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!
Presentation1
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
Presentation1
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
Presentation1
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%
Presentation1
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
21
Presentation1
What is a shopping barrier?
22
• 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
24
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
26
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
28
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
30
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
33
• 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!
Presentation1
Conclusion on Shopper barriers
34
1. Define the shopper barriers
2. Make a selection (1 – 2, KISS)
3. Define your shopper marketing execution plan
Presentation1
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
35
Presentation1
6 steps, all linked with each other, towards an effective
Shopping Marketing Strategy
Phase 1: Collect information & gain insights
37
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
Presentation1
7 theories of Shopper psychology
42
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
Presentation1
Phase 2: Strategy Definition, Execution & Measurement
51
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
Presentation1
Some basic principles
52
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
… … … …
Presentation1
A way of thinking about FMOT marketing:
The shopping cycle
53
Presentation1
How to evaluate a shopper marketing campaign?
54
3 questions to ask:
Stop Engage Close
Presentation1
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
55
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Some important shopper marketing trends
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6. Most important shopper marketing trends
57
* 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
61
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
Presentation1
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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Presentation1
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!
caroline.vervaeke@thom.eu
@carovervaeke
www.thehouseofmarketing.be
ANY QUESTIONS?
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