shopper marketing model - trade marketing … · the shopper marketing model: th dd d lthe added...
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shopper marketing model
kompas voor dekompas voor detrade marketeer
D HDen Haag20 oktober 2009
Prof. Gino Van OsselProf. Gino Van OsselEva Pelgrims
Retail & Trade Marketing Research Centre – Reep 1 - 9000 Gent - BelgiumRetail & Trade Marketing Research Centre Reep 1 9000 Gent Belgiumtel ++32/9/210.98.67 fax ++32/9/210.98.75
e-mail [email protected] www.vlerick.be/rtmrc
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dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
![Page 3: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/3.jpg)
the shopper marketing model:h t ?what ?
behaviour
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the shopper marketing model:h t ?what ?
behaviour
shopperconsumer/characteristics/need state
![Page 5: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/5.jpg)
the shopper marketing model:h t ?what ?
consumer characteristics• level of involvement
behavioure e o o e e
• brand loyalty or preference• …
shopperconsumer/characteristics/need state
consumer shopper ?consumer = shopper ?if not:
• prescription ? brand or product ?• empathic behaviour ?
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the shopper marketing model:h t ?what ?
shopper characteristics• sociodemographics• need segmentation
behaviour• need segmentation• …
shopperconsumer/characteristics/need state
need stateneed state• shopping missions• …
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the shopper marketing model:h t ?what ?
productcategory/segment/product/SKUcategory/segment/product/SKU…
brand behaviour
shopperconsumer/characteristics/need state
![Page 8: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/8.jpg)
the shopper marketing model:h t ?what ?
productcategory/segment/product/SKUcategory/segment/product/SKU…
brand behaviour
shopperconsumer/characteristics/need state
![Page 9: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/9.jpg)
the shopper marketing model:h t ?what ?
channel• traditional, convenience, leisure, internet
subchannel
behavioursubchannel
• generalist vs. specialist• price level
shopper…
consumer/characteristics/need state
distributiondistributionchannel/subchannel/format/…
retailer/banner
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the shopper marketing model:h t ?what ?
channel• traditional, convenience, leisure, internet
subchannel
behavioursubchannel
• generalist vs. specialist• price level
shopper…
consumer/characteristics/need state
distributiondistributionchannel/subchannel/format/…
retailer/banner
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the shopper marketing model:h t ?what ?
channel• traditional, convenience, leisure, internet
subchannel
behavioursubchannel
• generalist vs. specialist• price level
shopper…
consumer/characteristics/need state
distributiondistributionchannel/subchannel/format/…
retailer/banner
![Page 12: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/12.jpg)
the shopper marketing model:h t ?what ?
channel• traditional, convenience, leisure, internet
subchannel
behavioursubchannel
• generalist vs. specialist• price level
shopper…
consumer/characteristics/need state
distributiondistributionchannel/subchannel/format/…
retailer/banner
![Page 13: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/13.jpg)
the shopper marketing model:h t ?what ?
productcategory/segment/product/SKUcategory/segment/product/SKU…
brand behaviour
shopperconsumer/characteristics/need state
distributiond k i
distributionchannel/subchannel/format/…
retailer/bannertrade marketing
![Page 14: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/14.jpg)
dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
![Page 15: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/15.jpg)
the shopper marketing model:th dd d lthe added value
productcategory/segment/product/SKUcategory/segment/product/SKU…
brand behaviour
shopperconsumer/characteristics/need state
distributiond k i
distributionchannel/subchannel/format/…
retailer/bannertrade marketing
![Page 16: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/16.jpg)
the shopper marketing model:th dd d lthe added value
• the checklist:• exhaustive
• How novel is the chosen distribution • an existing channel, where we are already present
• cross-industry
• a double objective:
channel activation • an existing channel, where we are not yet present
channel development h l h d ’ i i h k
j• assessment
• recommendations
• a new channel, that doesn’t exist in the market channel creation
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the shopper marketing model:th dd d lthe added value
The scope Assessment generictrade marketing strategy
Shopper & consumer
Other distributioncharacteristics pp
productShopper
Distributionchosen distribution
product
Other productChosen distribution
vs. competition pcharacteristicsfor this product
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the shopper marketing model:th dd d lthe added value
Usage and attitude
In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues.
• To what extent is the consumer involved?
• To what extent does the consumer perceive significant differences between the competing products?
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the shopper marketing model:th dd d lthe added value
5variety complex
perceived
seeking
perceiveddifferences
routine orhabitual
cognitivedissonancehabitual dissonance
0 5level of involvement
typology of buying behaviour
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the shopper marketing model:th dd d lthe added value
For the remainder of the checklist:
• Please rate your answer with a score of 1 to 5; depending on the question, “5” stands for ‘very high’, y ; p g q , y g ,‘far above average’, ‘totally agree’,…
• Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety,… and/or the brand.
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the shopper marketing model:th dd d lthe added value
For the remainder of the checklist:
• Please rate your answer with a score of 1 to 5; depending on the question, “5” stands for ‘very high’, y ; p g q , y g ,‘far above average’, ‘totally agree’,…
• Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety,… and/or the brand.
• Is the shopper brand loyal?
gaming console software Wiig g
brand loyalty 4 54.5 4.25
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the shopper marketing model:th dd d lthe added value
• the checklist:• exhaustive
• How novel is the chosen distribution • an existing channel, where we are already present
• cross-industry
• a double objective:
channel activation • an existing channel, where we are not yet present
channel development h l h d ’ i i h k
j• assessment
• recommendations
• a new channel, that doesn’t exist in the market channel creation
• for juniors:• do not reinvent the wheel• do not reinvent the wheel
• for seniors:strategic assessment• strategic assessment
![Page 23: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/23.jpg)
the shopper marketing model:th dd d lthe added value
The scope Assessment generictrade marketing strategy
Shopper & consumer
Other distributioncharacteristics pp
productShopper
Distributionchosen distribution
product
Other productChosen distribution
vs. competition pcharacteristicsfor this product
![Page 24: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/24.jpg)
the shopper marketing model:th dd d lthe added value
set the playing field:e.g. FMCG or DIY or other
input
select the product select the distributione.g. Chocomel Hot pads e.g. supermarkets t
“At what level do you want to do the analysis?”• category / subcategory / segment / subsegment / product / variety / … / SKU• the entire category / all brands of single supplier / a single brand / …g y g pp g
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the shopper marketing model:th dd d lthe added value
case Chocomel Hot - part 1
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the shopper marketing model:th dd d lthe added value
set the playing field:e.g. telecom or DIY or other
input
select the product select the distributione.g. KPN Mobile internet - laptop e.g. telecom specialty stores t
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the shopper marketing model:th dd d lthe added value
case KPN – part 1
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dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
![Page 29: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/29.jpg)
shopper relevance:h t ?what ?
access
price offerp offerconsumerrelevancerelevance
experience service
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shopper relevance:h t ?what ?
access
price offerdominate
p offer
experience servicedifferentiatedifferentiate
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shopper relevance:h t ?what ?
access
price offerdominatedifferentiate
p offer
experience service
![Page 32: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/32.jpg)
shopper relevance:h t ?what ?
easy to shop
value choicevalue choice
experience service
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shopper relevance:h t ?what ?
easy to shop
productcategory/segment/product/SKU
easy to shop
value choicecategory/segment/product/SKU…
brand behaviour
shopperexperience service
consumer/characteristics/need state
distributiond k i
distributionchannel/subchannel/format/…
retailer/bannertrade marketing
![Page 34: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/34.jpg)
dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
![Page 35: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/35.jpg)
shopper relevance:dd d l ?added value ?
easy to shop
345
012 offervalue
as is
ii serviceexperience
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shopper relevance:dd d l ?added value ?
easy to shop
345
012 offervalue
as is
t bto be
serviceexperience
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shopper relevance:dd d l ?added value ?
easy to shop
345y p
012 offervalue
retailer0
category
serviceexperience
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shopper relevance:dd d l ?added value ?
retailer = category(to be)( )
yes no
retailer:yes align motivate
retailer:as is = to be
no use categoryl defendno as a lever defend
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shopper relevance:dd d l ?added value ?
case KPN – part 2
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shopper relevance:dd d l ?added value ?
case Chocomel Hot - part 2
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dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
![Page 42: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/42.jpg)
trade marketing & shopper relevancet d k ti d ltrade marketing model
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trade marketing & shopper relevance:t d k ti d ltrade marketing model
The scope Assessment generictrade marketing strategy
Shopper & consumer
Other distributioncharacteristics pp
productShopper
Distributionchosen distribution
product
Other productChosen distribution
vs. competition pcharacteristicsfor this product
![Page 44: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/44.jpg)
trade marketing & shopper relevancet d k ti d ltrade marketing model
set the playing field:e.g. FMCG or DIY or telecom
input
select the product select the distributione.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores t
assess the economic & target group value, and collaborative opportunitiessee The Trade Marketing Dimension – e.g. high / high / high
![Page 45: shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •](https://reader030.vdocuments.site/reader030/viewer/2022020114/5b6a50787f8b9af64d8be0c2/html5/thumbnails/45.jpg)
trade marketing & shopper relevancet d k ti d ltrade marketing model
economic valuelow high
obsolete salesfocustarget group low
brandf
brand &l
g g pvalue
highfocus sales
g
• visited by the consumer• good fit (positioning)• suitable to communicate
adapted from: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. The Hague, 2007
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trade marketing & shopper relevancet d k ti d ltrade marketing model
set the playing field:e.g. FMCG or DIY or telecom
input
select the product select the distributione.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores t
assess the economic & target group value, and collaborative opportunitiessee The Trade Marketing Dimension – e.g. high / high / high
ounderstand the generic trade marketing strategysee The Trade Marketing Dimension for the 8 generic strategies – e g trade leadership outpu
see The Trade Marketing Dimension for the 8 generic strategies – e.g. trade leadership
assess the objectives utjhigh economic value drive sales
high target group value build the brandcollaborative opportunities monitor the trade relationship
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trade marketing & shopper relevancet d k ti d ltrade marketing model
• sales objectives• grow the market
increase product penetration
• trade marketing strategies• withdraw • increase product penetration
• increase intensity (volume or value)• grow the market share
i b d i
withdraw• monitor sales• brand monitor
• increase brand penetration• increase brand loyalty
• branding objectives
• brand focus• defend sales
sales focus • cognitive• awareness• knowledge
• sales focus• enhance trade• trade leadership g
• affective• action
• intent & trial
trade leadership
• intent & trial• improve trade relationship
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trade marketing & shopper relevancet d k ti d ltrade marketing model
easy to shopsales
salessalesvalue choice
sales>
branding
sales>
branding
experience iexperience servicebranding > sales branding and sales
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trade marketing & shopper relevancet d k ti d ltrade marketing model
easy to shopsales
salessalesvalue choice
sales>
branding
sales>
brandingimproveimprovetradetradetradetrade
relationshiprelationship
experience i
pp
experience servicebranding > sales branding and sales
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dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
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trade marketing & shopper relevancet d k ti itrade marketing mix
• the 5 pillars of trade marketing:
channel category in store trade businesschannel development
category development
in-store marketing
trade communication
business analysis
strategic xx
tactical x xx x xx x
operational x xx x xx
source: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. Academic Service, The Hague, 2007
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trade marketing & shopper relevancet d k ti itrade marketing mix
• increase distribution• more outlets, accounts, (sub)channels
• store merchandising• optimise the range (reduce ?)
easy to shop
optimise the range (reduce ?)• delist redundancies & slow runners• focus on fast runners• broaden the range (“one stop shopping”)
value choice
• broaden the range ( one stop shopping )• shelf merchandising• improve in-store availability
• give growing SKU’s more space• POS-communication & signage• packaging design experience servicepackaging design
• consumer marketing !!• product logistics (handling, delivery,…)
experience service
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trade marketing & shopper relevancet d k ti itrade marketing mix
• pricing• pricing• regular vs. promotional• perception vs. actual level
i
easy to shop
• promotions• intensity
• frequency vs. strengthvalue choice
• nature of the benefits:• discount / volume vs. added value
• other aspects• loyalty programmes• joint-promotions• tailor-made promotions
t experience service• events• sweepstakes, competitions,…
experience service
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trade marketing & shopper relevancet d k ti itrade marketing mix
• consumer decision treeeasy to shop
• consumer decision tree• add missing SKU’s, delete redundancies
• increase the range
value choice
increase the range• growing categories, segments, brands,…
• add slow runners
• substitute the range• favour strong/profitable brands & SKU’s
experience service
• identify opportunities for innovations• consumer marketing!!!
experience service
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trade marketing & shopper relevancet d k ti itrade marketing mix
• what ?• the brand or the product ?
• how ?
easy to shop
• how ?• address all senses
• carriers ?value choice
• the store itself (“fit”)• the actual merchandise• visual merchandising• visual merchandising• fixtures• (new) technologies
experience service• staff• of the retailer ?• of the company ?
experience service
• own team vs. outsourced ?
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trade marketing & shopper relevancet d k ti itrade marketing mix
• type/when• before / during / after sales
• level
easy to shop
• level• full-service vs. (aided) self-service
• qualityvalue choice
q y• sales skills vs. product know-how• attitude• consistency• consistency
• staff• fit with the shopper
i i• availability
• support by manufacturer• tools vs training
experience service
• tools vs. training• product promotors
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trade marketing & shopper relevancet d k ti itrade marketing mix
case Chocomel Hot - part 3
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trade marketing & shopper relevancet d k ti itrade marketing mix
case KPN – part 3
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dagenda
• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value
• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix
• next steps
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t t f next steps: for us
• towards an adaptive model • the product distribution & shopper variables• the product, distribution & shopper variables
• all variables (“questions”) are linked to the objectives:• drive sales / build the brand / improve the trade relationship
• the adaptive model will only call for the variables directly linked to the relevant objectives !
• the tailor-made versions• the tailor made versions• for a ‘playing field’• for a geography• for a company• for a category• ……
• an automated decision support tool
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t t f next steps: for useasy to shop
productcategory/segment/product/SKU
y p
value choice
category/segment/product/SKU…brand behaviour
experience service
shopperp
consumer/characteristics/need state
distributiondistributionchannel/subchannel/format/…
retailer/banner trade marketing
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t t f d ?next steps for you and us ?
• training programme• Vlerick + TMA• hands-on & case based• early 2010
watch your (e )mail !!!watch your (e-)mail !!!
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t t contact us
• Retail & Trade Marketing Research Centre• management education• workshops• entertrainment• research• research• consultancy
Join me on
[email protected]@vlerick.be