marketing to the evolving shopper - fmi

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©2010TheIntegerGroup®andTheKellogg®Company

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MARKETINGTOTHEEVOLVINGSHOPPER

JamieLaRueTheKellogg®Company

CraigElstonTheIntegerGroup®

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11thMay2010,LasVegas

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ABOUTUS

The Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods.

The Integer Group is one of America’s largest promotional, retail and shopper marketing agencies and a key member of the TBWA Marketing Services portfolio. The Integer Group resides at the Intersection of Branding and Selling™ and creates strategic marketing solutions for clients in categories that include beverage, packaged goods, telecommunications, fast food, home and shelter, and power sports.

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Photo:TheKellogg®Company

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OURTOPICSFORTODAY

1  Howsheischanging

–  Componentsofvalue–  Twomeaningsofconvenience

2  OpportuniVesthispresents

3  AframeworkforthinkingalongaPathtoPurchase

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OurStudies

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UsedfactoranalysistoidenVfytheunderlyingdimensionsofstorechoice:ValueandConvenience

TrendandmonitoroverVme

EvaluatetherelaVveimpactofthein‐storeenvironmentandshoppingaidsonstorechoiceandpurchases

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THEANALYSIS

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UsingtheproductPost-Tail™ Purchase

moment

Retail

Browsing,comparing,researching

andselecVngitems

Pre-Tail™ Entering a store or

Web site

Research,wordofmouth,trial

THESHOPPERCONTINUUM™

= points of action, behaviors

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TheComponentsofValue1

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THECOMPONENTSOFVALUE

•  Offersthelowesteverydayprices

•  Providesthebestmixofpriceandquality

•  AplacewithfantasVccustomerservice

•  Carrieshigh‐qualitybrands

•  IsastorebrandItrust

•  Allowsmetosaveasmuchmoneyaspossible

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CONCERNSABOUTVALUE

+6%

+12%

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BUYINGPRIVATELABELS

Source: The Checkout 2009, 2010; The Integer Group and M/A/R/C Research

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ATTITUDESABOUTNATIONALBRANDS

Agree strongly Agree


APRIL 2010

79%

56%

52%

46%

43%

26%

23%

21%

SEPT 2009

84%

64%

54%

37%

39%

22%

21%

14%

9%

4%

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TwoMeaningsofConvenience2

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LOCATIONISADECLININGMEANING

•  Close‐byandconvenient

•  Nearhomeorwork


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IN‐STOREEASEISGROWING

•  CarriesthingsIneed

•  EasyformetofindthethingsIneed

•  Quickcheckout

•  Takescreditanddebitcards

•  Easytoreturnproducts

•  Hasaloyaltyprogram

N = 1,122 ??? Source: The Checkout 2009, 2010; The Integer Group & M/A/R/C Research

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CONVENIENCE≠NEARBY


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Pre‐Tail™

Usingtheproduct

Retail

Post‐Tail™

EnteringastoreorWebsite

Purchasemoment


andselecVngitems



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WHO’SPICKINGUPONTHIS?

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Bigretailers:15mparking,store‐in‐a‐store,self‐checkout


Photo:TheIntegerGroup®

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Photo:TheKellogg®Company

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Smallretailers:Orderatpump,freeWiFi,drive‐throughs


Photo:warnout

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Manufacturers:On‐linetools,mealsoluVonapps,RedboxDVDs,picnicpacks


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Partners:Cartmanufacturers,cardissuers,coupons,apps



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Partners:Cartmanufacturers,cardissuers,coupons,apps


Photos:Cabco™

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Photo:iTunes


Photo:TheIntegerGroup®Photo:iTunes

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Visa:“Lunch”

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Pre‐Tail™

Usingtheproduct

Retail

Post‐Tail™

EnteringastoreorWebsite

Purchasemoment

Browsing,comparing,

researching&selecVngitems



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Photos:iTunes

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Convenience–OvercomingShoppingHassles

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HASSLES:THEFASTESTWAYTOFAIL

•  Asdecisionsgetmorecomplex,fuseswillgetshorter

•  Shopperswillleavestores,categories,orbrandsiftheirfusesgetlit

•  Brandscanwinbusinessbypre‐empVngthosehasslesandsmoothingouttheshoppingprocess

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FourCommonRetailHassles

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HASSLE1:LACKOFSERVICE

LonglinesdestroysaVsfacVon

Grocery Club MassDrugHome OfficeSupply Department

0

4

8

12

MinutesinLine Avg.

4min.

Imp. Electronics

0

4

8

12

Extremely

Very

Somewhat

Notvery/Notatall

Source: The Checkout 2009; The Integer Group and M/A/R/C Research

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HASSLE1:LACKOFSERVICE

Longlinesdiscouragefuturetrips

Istopgoingaltogether

IonlygotopickupspecificitemsIcan’tfind

elsewhere

IavoidthestoreatallVmes

3%

19%

21%

43%

Source: The Checkout 2009; The Integer Group and M/A/R/C Research

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AVOIDTHELINE

Self‐checkoutisonlyonepossiblesoluVon

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Photo:MobileContentToday

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AVOIDTHELINE

Self‐checkoutisonyonepossiblesoluVon

Deliverthroughbrandede‐commerce

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AVOIDTHELINE

Self‐checkoutisonlyonepossiblesoluVon

Deliverthroughbrandede‐commerce

Orthirdparty

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Featuredproductsneedtobeinstockandaccuratelypriced

%VisiVngStoreLessDuetoAvailabilityIssues

ElectronicsOfficeSupplyDepartmentHomeImp.

DrugMass

GroceryClub

36%35%34%

28%26%

22%19%18%

%VisiVngStoreLessDuetoIncorrectPricing

30%26%26%

22%22%21%

19%24%

HASSLES2and3:STOCKANDPRICE


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HASSLE4:UNCLEANLINESSANDCLUTTER

Source:2009NACSEmergingOpportuniVesinConvenienceRetail

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0% 10% 20% 30% 40% 50% 60% 70%

Theaisle/storewasdirty

IalwayspurchasewhatIgotothestorelookingfor

Theaislewasconfusing/disorganized

Theaislewastoocrowded/toomanypeopleintheaisle

Icouldn’tfindthespecificbrandIwaslookingfor

Icouldn’tfindtheexactitem,productorsizeIwaslookingfor

ThepricewasmorethanIwantedtopay

7%

12%

14%

16%

34%

56%

60%

0% 20% 40% 60% 80%

Over35%wouldwalkoutbecauseofpoorcleanlinessandcluqer

WHYSHOPPERSLEAVEAISLESEMPTY‐HANDED

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OVERCOMINGHASSLES

ThinkfromtheperspecVveoftheShopper

Keepthingsclean

AidthenavigaVon

Buildupontheneedforconvenience

Photos:ISMI,TheIntegerGroup®,PlanetRetailLtd

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WE’VECOVERED

1  Howsheischanging

–  Componentsofvalue–  Twomeaningsofconvenience

2  OpportuniVesthispresents

3  AframeworkforthinkingalongthePathtoPurchase–TheShopperConVnuum™

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UsingtheproductPost-Tail™ Purchase

moment

Retail


andselecVngitems

Pre-Tail™ Entering a store or

Web site



= points of action, behaviors

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LONG‐TERMQUESTIONS

1  Willthevaluefactorgroworleveloff?

2  HowwillconvenienceexpectaVonsevolve?3  Howfixedormutableareshoppingstyles?4  Towhatextentwilltechnologyaffecthabits?

5  WhatimpactwillmulV‐plasormexperienceshave?

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QUESTIONS?

CraigElstonSVP,Insight&Strategy

TheIntegerGroup®+1.303.393.3474

[email protected]

JamieLaRueSeniorDirector,ShopperMarkeVng

TheKellogg®Company+1.269.66.7230

[email protected]

Download or subscribe to our presentations, white papers, and editions of The Checkout at

www.shopperculture.com

marketing to the evolving shopper - fmi

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