cx journey, gma spending booz & co, mobile shopper marketing pos

Shopper Marketing Excellence:

Marketing effectively at the POS

Barcelona, September 2009

This document was prepared by Advisium Group staff. The distribution / quotation of this document is allowed but always referring to Advisium Group as the source of it.

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This document was prepared by Francisco Pestana at Advisium Group p. 2© Advisium Group. 2009.

An effective approach to Shopper Marketing sets up the entire shopper experience to lead potential shoppers to buy target products. The goal is to profit from every sales occasion and each opportunity to persuade potential shoppers before, during and after their purchase experience.

Shopper Marketing ExcellenceKey elements for marketing effectively at the POS

Shopp

er

Insigh

ts

Intell

igenc

e

Shopper Marketing

Strategy

Value P

roposit

ions

per Shopper

ClusterIn-store

Shopper Actions

Shopper MarketingExcellence


Key elements for marketing effectively at the POS

How can Advisium Group help you improve your Shopper Marketing?

Agenda


Key elements for marketing effectively at the POSWhy Shopper Marketing?

• Marketing effectively at the point of sales (POS) = today’s strategic priority:

– Need to communicate better with shoppers: Loss of efficiency of traditional marketing and communication means (Marcom as we knew it, seems to be doomed!)

– Need to increase new products adoption and consumption rate: Larger number of product launches during the year… but lower success rates… while the customers, the channels and the organization gets at least saturated (the innovation race is tough!)

– Need to optimize Trade Marketing expenditure’s results : In-Store marketing spending has kept growing during the last 10 years, but not always coherently tied with the manufacturer’s marketing and communication strategy (most of the times, driven by a reactive approach to retailers’ demands!)

– At every shopping occasion, there is a need to convince potential shoppers that your product is the one that they MUST buy, since:

>60% of a shopper’s purchasing decisions are actually made at the POS!


• Product / branding positioning communication and awareness (i.e. ATL, BTL, online, WOM, retailers publishing, …)

• Targeted coupons (i.e. mailing, loyalty cards, internet, previous purchases, fliers, inserts, …)

• Shopping recommendations (i.e. internet forums, WOM, …)

• Shopper’s mood• Shopping list• Consumers (non-shoppers)

requests (i.e. your children’s favorite cocoa powder)

• Product / branding positioning communication and awareness (i.e. ATL, BTL, online, WOM, retailers publishing, …)

• Targeted coupons (i.e. mailing, loyalty cards, internet, previous purchases, fliers, inserts, …)

• Shopping recommendations (i.e. internet forums, WOM, …)

• Shopper’s mood• Shopping list• Consumers (non-shoppers)

requests (i.e. your children’s favorite cocoa powder)

• Type of shopping trip / occasion• Store specific positioning (i.e. best

perishables!, convenience, all-in-one, …)

• Store specific lay-out• POS signage, displays, graphics• POS actions (sampling, events,

contests, sidewalks)• Shelf layout, product placement

and assortment• Product design, visibility, appeal,

price, rebates, pack promotion, gift with purchase …

• In-store media (TV, radio, …)

• Type of shopping trip / occasion• Store specific positioning (i.e. best

perishables!, convenience, all-in-one, …)

• Store specific lay-out• POS signage, displays, graphics• POS actions (sampling, events,

contests, sidewalks)• Shelf layout, product placement

and assortment• Product design, visibility, appeal,

price, rebates, pack promotion, gift with purchase …

• In-store media (TV, radio, …)

• Product experience / gratification (Was the purchase worth?)

• Emotional:- How do I feel about it? - Can I claim that it’s the best buy?- Did those important people for me

liked it? Ate/used/shared it gladly?• Functional:

- Did I like the product?- Was it great use / consumption?- Was it a valuable buy?- Can I access / profit from

interesting post-purchase services / experiences (i.e. gifts, contests, service, information, …)?

• Product experience / gratification (Was the purchase worth?)

• Emotional:- How do I feel about it? - Can I claim that it’s the best buy?- Did those important people for me

liked it? Ate/used/shared it gladly?• Functional:

- Did I like the product?- Was it great use / consumption?- Was it a valuable buy?- Can I access / profit from

interesting post-purchase services / experiences (i.e. gifts, contests, service, information, …)?

Post-purchaseExperiencePre-purchase act

Brand / Company’s Interaction Points with Shoppers

Shopping Experience

Key elements for marketing effectively at the POSNeed to convince before, during and after every purchase experience


Shopper Marketing Excellence approach

Shopp

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Insigh

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Intell

igenc

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Shopper Marketing

Strategy

Value P

roposit

ions

per Shopper

ClusterIn-store

Shopper Actions




Key elements for marketing effectively at the POSShopper Marketing Strategy

The first step to a Shopper Marketing Excellence is setting up a Shopper Marketing Strategy, which considers the shoppers’ purchasing values, the sales channels’ / retailers’ own objectives and the company’s internal capabilities.

• Build efficient workflows which help all the business areas to accelerate the value offers time-to-market and that offer specific answers to every shopper segment - coordinating marketing, KAMs, RAMs, field force, trademarketing, logistics, R&D…(optimize the shopper offer funnel)

• Define specific goals and plans to develop internal competences to excel in-store marketing and merchandising capabilities to effectively connect in-store activity with the rest of the brand's marketing / communication actions(ensure maximum consistency)

External

• Define shopper marketing strategy based on the opportunities, needs and possibilities for the business to set-up shopper marketing actions considering every Key Account and every product category relevant to the target shopper segments (top-down approach)

• For every product, define target shopper segments and channels and specific goals for: visibility, customer growth/loyalty and influence on shopping attitudes / habits… (bottom-up approach)

Shopper MarketingStrategy

Internal


Key elements for marketing effectively at the POSCluster Value Propositions

Cluster analysis helps defining offers that target better the shopper attitudes towards specific products and categories within a specific POS. General guidelines for product assortment, merchandising, price and promotion policies per cluster are its most important outcome.

ShoppingOccasions POS Traffic

Post-purchase experience

ShoppingFrequency

Shopper’sTicket / Basket

Product visibility / placement

Product / Brandpositioning

POS Service Levels Merchandising

Shopper attitudes, drivers and values Category

performance

Shopper MarketingStrategy

POS typology Shopper

segmen

ts

Product range optimal assortment

Analyze tasks and operations

performed at the POS in each cluster

(i.e. sales, promotions, …)

Analyze shopper segments attitudes,

values and purchasing trends

at every POS towards the

category, brands & product portfolio

Review the strategic fit of

every product for every shopper

segment in every POS typology

Develop POS-Shopper cluster

models

Define optimal assortment for

each POS-Shopper cluster

Test + Optimize + Roll-Out + Optimize

Define accessory

services for each POS-Shopper cluster

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Measure impact of the

value propositions at every cluster

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Shopper Clusters Value Propositions Management

Continuous feedback loop

Shopper Clusters Modeling

Store / shelves layout

ETC.


Key elements for marketing effectively at the POSIn-store Shopper Actions

The real impact of Shopper Marketing comes through the execution of in-store shopper actions. Every little detail counts to profit from a continuous flow of potential buyers.

Instore Marketing Set-Up Checklist

Very focused communication artworks / merchandising solutions with short, simple and relevant messages; improving visibility, motivating visits and purchase acts, always building consistently on the brand’s corporate image

Promotions and optimal assortments that help to profit from traffic generated by the category (particularly by competitors’ products) to push your products sales

Detailed activity plan per KAMs / RAMs / trademarketers / fieldmarketers / merchandisers

Measurement, analysis, scorecard development and launch of actions to improve shopper marketing activities efficiency

Database build-up to help understanding the effects on shopping behavior of the customers preferences, category dynamics, promotions, price policies and store assortments

Because EVERYTHING counts…


To help the organization to improve the Shopper experience

Key elements for marketing effectively at the POSShopper Insights Intelligence

Collecting and understanding shopper insights closes the loop for accomplishing a Shopper Marketing Excellence. Data collection, research and analytic capabilities are critical to develop internal Shopper Insight Intelligence.

• Adhoc interviews, surveys, focus groups, ethnographic research to understand shoppers' psychology: attitudes, preconceptions before shopping experience, point of purchase decision triggers, behaviors and perceptions about the POS and the category, post-shopping attitudes and reflections

• Customers' ticket analysis and identification of buying patterns

• Competitors’ shopper marketing actions, clusters characterization, assortment

• Tracking of company’s promotions results

• Online buzz / WOM (i.e. Twitter, blogs, forums)

• Fieldmarketers, merchandisers points of view / observations / claims / recommendations

• Other research methodologies (i.e. ethnography, heat mapping, cameras, shopper labs, …)

Sources of SHOPPER INSIGHTS

ProductDevelopment

MarketingCommuni-

cations

MerchandisingActions

PromotionalCampaigns

ProductAssortment &

Fulfilling

Pricing& RebatesPolicies

Post-sales service



How can Advisium Group help you improve your Shopper Marketing?

Agenda


Innovation Management

Marketing & Sales

Strategy

Brand Management

Measurement & Optimization

Product Management

Campaigns Management

Sales Excellence

Shoppers & Consumers Relationship Management

Shopper & Consumer Knowledge

Advisium Group has solid skills and knowledge to help your organization arrive to a Shopper Marketing Excellence state.

How can Advisium Group help you improve your Shopper Marketing?Our expertise areas fit perfectly with the Shopper Excellence Model

Shopp

er

Insights

Intell

igence

Shopper Marketing

Strategy

Value P

roposit

ions

per Shopper

ClusterIn-store

Shopper Actions



How can Advisium Group help you improve your Shopper Marketing?A shortlist of our shopper marketing capabilities (non extensive)

Focus Area

Consulting /Advisory

Interim Management

Shopper Marketing Strategy

Shopper Clusters Modeling

Shopper Insights Research

Shopper Driven Product Innovation

Shopper Marketing Fieldforce Management

Shopper Marketing Strategy Implementation

Shopper Campaigns Management

In-store Optimal Offers Design

Approach Benefits

• Develop and design products with improved visibility and attributes to foster impulse buying

• Lead the product launch pipeline from insights gathering to launch date (and post-launch)

• Accelerated time-to-market product launch• Enhanced innovation tank capabilities • Improved success ratio probabilities

• Launch in-store merchandising methods and activities

• Team management, motivation, tracking, measurement and reward

• Add up to the organization’s management skills• Field marketing methodologies launched and

fine tuned

• Test, fine-tune and roll-out shopper marketing strategies

• Speed and cost effectiveness• Results commitment through proven

experience and track record

• Campaigns conceptualization, launch, track and optimization

• Set-up and manage front / back-office circuits and campaign support actions

• Shoppers’ optimal experience and brand’s consistency

• Responsibility and accountability for results

• Define shopper marketing strategy, specific goals per brand, segment, account, …

• Design efficient workflows and plans to develop internal competences

• Solid growth axis and model• Decisions and actions led towards best choices• Improved efficiency of shopper marketing

expenditure

• Perform shopper clusters analysis• Develop general guidelines for product

assortment, merchandising, price and promotion policies per cluster

• Solid shopper marketing intelligence repository• Stronger input models for optimal offers /

assortments design

• Carry out adhoc interviews, surveys, focus groups, ethnographic research to understand shoppers' psychology

• Analyze shopper quantitative data

• Design optimal offer assortments, POP materials guidelines and promotions per POS

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• Improved understanding of shopper behaviors, drivers and triggers

• Enhanced offers to improve sales close probabilities at the POS

http://www.advisium.net

Contact: Francisco Pestana

email: [email protected]

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