Transcript Shopper Marketing

Booz & Company
Shopper Marketing
Opportunities for Store Brands
Chicago
July 19th, 2011
The Shopper Marketing opportunity: influence malleable brand
preferences along the full path to purchase
Shopper marketing: building insights about consumers when they are in shopping
mode and applying these insights to influence their purchase decisions
Timing of Brand Selection
(% of total items purchased)
Room to
influence brand
selection
in the aisle
41%
Room to firm
up preference
before the store
21%
19%
19%
Brand on List,
Brand on List,
Item on List, Brand Item Not on List,
Purchased in Store Switched in Store Selected in Store Impulse Purchase
Source: Survey of 3,600 shoppers for Shopper Marketing 3.0 study conducted Fall 2009 by Booz & Company In collaboration with Grocery Manufacturers Association
Source:
Booz & Company, SheSpeaks survey of 2,200 shoppers completing post-shopping survey
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1
Shopper marketing spending already accounts for a significant
share of the A&P mix and is one of the fastest growing spends
CPG Marketing Mix
2010 Spending, 2011-2013 Growth
$108B
Size
$22B
$198B
$338B
$60B
9.0%
6.3%
0.6%
0.6%
-0.8%
Traditional Digital
Media Media
Trade
Promotions
Advertising:
$130Bn
2.4% CAGR
Consumer
Promotions
Shopper
Marketing &
Co-Marketing
Promotions:
$616Bn
2.1% CAGR
Source: eMarketer, AdAge, GMA, promoMagazine, Booz & Company client experience
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Shopper marketing evolving as part of an integrated approach
Evolution of Shopper Marketing
“The New Integrated Marketing”
Using the full range of marketing
activities with store back insights
Stages of
shopper
marketing
evolution
“The Shift to
Shopper”
Distinguishing
between consumer
and shopper
“Shopper Solutions”
Insights and solutions
tailored to the shopper’s
occasion
Engagement &
Branded Experiences
Marketing ROI
Closure Rate
Category Growth
Value
drivers
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Sales Lift
 Trade overlay
 Buy-in to retailer events
 Planogram design
Basket Size
 Insights to inform retailer
calendar (e.g., shopper
psychology and need states)
 Multi-brand and multimanufacturer programs (e.g.,
spring flu, summer BBQ)
 Focus on owned and
earned media
 “Store back” filter for creative
 Consistent themes,
customized elements
Time
3
At its best, it plays a complementary role in reinforcing brand
attributes and motivational “cues” along the P2P
Pre Store
Brand
Marketing
In the Store
Post-Purchase
 Develop emotional
connections with
consumers’ motivations
 Reinforce equity and
motivational “cues”
 Be “relevant” to
consumers’ lives
 “Activate” equity
with consistent
imagery
 Reinforce shoppers
made the “right
decision” and sustain
branded experience
 Catch consumers at
moment when shopping
Shopper
behaviors begin
Marketing
 Target shopping and
lifestyle “triggers”
 Build insights about
shopping mode to
influence decisions
 Influence next trip
with cues that tap into
motivations
 “Stop, hold, close” in
the store
 “Reward” behaviors
consistent with brand
Traditional Focus
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 Grow “loyalty” and
“advocacy”
Expanding Focus
4
A broad set of platforms can be integrated into the playbook,
increasingly via digital vehicles
Adoption of Shopper Marketing Platforms
“On Average, to what extent are you using
the following shopper marketing vehicles?”
Displays & In-Store
Advertising
Relationship
Marketing
Social Media
Search
83%
In store video, kiosks, scanners
81%
Direct to card, e-circular
17%
Deals
19%
70%
30%
37%
63%
60%
40%
Example Digital Vehicles
by Platform
E-newsletter, personalized storefront
WOM, reviews, branded community
Sponsored results, virtual display
Thematic Content
47%
53%
Retailer sitelet, how to video
Apps
49%
51%
Barcode scanners, shopping lists
Never Use
Use
Source: Booz & Company analysis for GMA Shopper Marketing 4.0 Study
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Unlocking the potential of shopper marketing capabilities requires
sustained commitment
Holistic Capability-Building
National
Brands
specific
1
Shopper
Insights
7
ROI and
Brand
Health
2
Retailer
Intimacy
Skills
Shopper
Marketing
Capabilities
Strategy and
Brand
Development
Processes
Tools
Knowledge
Outcomes
4
5
Platform
Design and
Collaboration
Creative
Development
Source: Booz & Company analysis for GMA Shopper Marketing 4.0 Study
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Organization
3
6
Program
Execution
Reliably and consistently delivering a
distinctive outcome by applying processes,
tools, knowledge, skills, and organization
 Insights across seasons, occasions, formats
 Strategies that integrate across advertising
& promotions mix, across the full P2P
 Scalable platforms with clear playbook for
where to focus customization efforts
 Larger share of programs measured with
insights incorporated into brand planning
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What does that mean for store brands?
Strengths
 Full transparency / ownership of
consumer purchasing data
 Higher speed to market as the
owner of the “theater”
 Flexibility to pilot & run shopper
marketing initiatives
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Challenges
 Competing internal agendas
 Strained funds and collaboration
with national brands
 Resources vs. national brands
 Misaligned metrics
(sales vs. margin)
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Opportunity #1: Build own insights to tailor the events calendar
and marketing messages for greater effectiveness
Example Calendar of Events for ConAgra “Seasons of Mom”
Post
Holiday
Spring
Summer
Back to
School
October
Fling
Holiday
January, February
March, April, May
June, July,
Mid-August
Mid-August,
September
October
November,
December
Nesting,
decompressing
after stress, getting
back into routine,
eating out less
High energy, more
time outdoors,
senses awakening,
reconnecting with
friends
Freedom, looser
schedules,
outdoor activity,
no rules, fun
Overwhelmed,
balancing
schedules and
tasks, new
routines
Steady routines,
family time,
creativity, eye on
the holidays
Joyful traditions,
extravagant parties,
Fun pulling it off
“Little Extras”
campaign featuring
brands in occasions
unique to season
with emotional
connection around
reduced stress
Make mom a
“Financial Hero,”
give her good deals
on easy-to-make,
lighter meals that are
easier to eat in shift
“Anytime
Entertaining” with
focus on being
prepared for
informal parties
“Prepare for
Success”
campaign
delivers on need
to save time and
money while
make family
advantaged
“Creative Comfort
Food” leverages
mom’s change in
cooking techniques
and menu,
providing
relevance for
brands
“Time to Celebrate”
focuses on brands
that meet high
expectations for
holiday events
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Opportunity #2: Serve as “anchor tenant” for category solutions
Category Solutions
Discussion
 Leverage advantageous position of
“owning the theater” to access
consumer data and ensure rapid
cycle time
 Work with national brands to develop
co-promoted events when applicable
 More effective crosscategory merchandising
 Dial Flu Season
(with Clorox and K-C)
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 Deliver much better execution for
shopper marketing events
(compliance, quality)
 Leverage test & learn opportunities to
define right playbook
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Opportunity #3: Leverage digital to drive traffic and add call to
action to in store displays and packaging
Paid Search & Digital Shelf
Deals Embedded in Ads
Database Marketing
Mobile Call to Action In Store
 Leverage loyalty database for targeted offers
 Communicate via shoppers’ preferred
channels (e.g., email, mobile, social)
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Opportunity #4: build a learning agenda with waves of pilots
Building the Learning Agenda for Shopper Marketing
 Assess data environment and lay out a road map to build the required capabilities and
discipline to systematically prioritize opportunities
 Bring external experience and expertise on the analytical and managerial dimensions of
leveraging data sources for online shopper insights
 Use in-house data repositories to develop hypotheses and mine the data for insights that can
be used to filter opportunities in terms of impact and doability
 Engage the organization to select sets of pilots that can be launched in waves to validate
opportunities and build moment around the business case
 Define the new data, analytics and processes required to operationalize learnings from the
pilots and embed them into way the various parts of the organization get things done
 Provide a perspective on key capability levers (e.g. talent, processes, metrics, technology)
required to cultivate a stronger culture of innovation
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Putting it all together — What to do “Monday morning”
Suggested Areas of Focus
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Build the Winning
Ecosystem — Lead Your
Partners, Build the Talent,
and Score Results
Define Strategic
Ambition and
Capability Gaps
Shift from
“Simultaneous
Equations” to
“Waves of Pilots”
Redefine Approach
for Insights to Enable
More Integrated
Planning Across Path
to Purchase
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