family dollar shopper strategy
DESCRIPTION
Family Dollar Shopper Strategy. Beth Egan Shopper Marketing Director, CCNA Marketing – HQ Department. Info.shoppermarketing @coca-cola.com. Content & Connection Planning: Family Dollar Example. We Follow 4 Critical Steps To Create An Effective Shopper Strategy. - PowerPoint PPT PresentationTRANSCRIPT
The Way of Shopper Marketing Classified - Internal use 1
Family Dollar Shopper Strategy
Beth Egan Shopper Marketing Director,
CCNA Marketing – HQ Department
22
Content & Connection Planning: Family Dollar Example
33
We Follow 4 Critical Steps To Create An Effective Shopper Strategy1. Identify WHO the shopper is
2. Understand WHAT is important to the shopper
3. Determine HOW the brand best fits with the shopper needs
4. Plan WHERE to engage shoppers along their path to purchase
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Step 1: Identify WHO The Shopper Is
1. Begin with the brands consumer core target and understand her feelings and attitudes
2. Identify the target consumption occasion
3. Determine who most often purchases the brand for the occasion
4. Identify the store and mission where the purchase occurs
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• The median household income in the U.S. has fallen for the last three years; due to stagnating income and food price inflation
• Median income was 7% less in 2010 compared with 2000, while the cost of living continued to increase.
• Disposable personal income stagnated between 2009 and 2010, stemming from declining median household incomes.
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9.0%
11.0%
13.0%
Consumer Confidence
Cons
umer
Con
fiden
ce
Unem
ploy
men
t
Consumer ConfidenceConference Board Overall Index
The Family Dollar Shopper Has Been Affected By Negative Macro ForcesFalling Income + High Inflation + High Unemployment = Feeble Consumer Confidence
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• Shops at FDO about twice a month, spending shy of $15 per trip
• Accounts for roughly 70% of total FDO revenue
• 85% female
• 7 out of 10 report HH income of $40K a year or less; more than half receive government benefits outside of SS
• 8 out of 10 are above 45 years of age
• Median = 56 years of age
• She wants the best for her family and likes to spend time at home with them
• She feels a bit let down (by society, by government) but in no way hopeless. Her support network is very important to her – friends, family, community
• As a caregiver, she wants to be able to create special moments at home – even if only once in a while
• 31% of shoppers agree they have spent more on entertainment, year over year. Over 30% on watching movies together.
• This shift to investing into the home shows a new archetype – the cocooner
Notable for being focused on bringing the family together for entertainment, family projects and being involved with non-
household family members
Demographics: Psychographics:
But Make No Mistake: She’s Strong, Resilient And Resourceful And Always Finds A Way, Through Thick & Thin
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“Consumers are proud of the deals they get and often tell friends and family about them. Whereas buying items at a discount once had implications that a lack of disposable income (i.e., a lack of success) stood in the way of paying full price, in a post-recession era, not only is bargain shopping no longer something to hide—
it’s something to brag about.”
– Fiona O’Donnell, Senior Lifestyles & Leisure Analyst
She’s Also Proud Of Being A Smart Shopper…
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Cocooners are in no way hopeless in their situation.
They are proud of what they have achieved, especially within the Hispanic shopper segment. They are confident, relaxed and in control in the shopping environment.
They are Super Moms. They treat trips to store as a challenge to get the best deals, the best price and the brand names their family will love
Happiness is not found in dollars & cents – it’s found in connecting with others
Budget shopping is SMART SHOPPING AND IT HELPS CREATE THE MOMENTS THAT MATTER
…Because SMART Shopping Helps Her Create Moments That Matter At Home
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We Want To Help Her Create Special Moments At Home For Her Family
Multicultural Families on Low Income
Consumer Target Consumption Occasion
Store & mission where purchase occurs
Super Mom = Heavy FDO Shopper
Who Most often Purchases?
Leisure At Home(Outside of Family Meals)
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Step 2: Understand WHAT Is Important To To The Shopper
1. Understand how they feel during the shopping mission
2. Identify what’s important to them as shoppers how that translates to purchase decisions
3. Learn how Family Dollar performs against most important purchase drivers
4. Identify Strengths & Barriers
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Overall, The Heavy Shopper Expresses Positive Feelings About Family Dollar…
• Heavy Shoppers have a very positive outlook on their experiences at FDO. Describing the experience as ‘nice’ and saying they ‘love the experience’ due to “quality products at a cheaper price”
• There seems to be a relationship between fun and low prices. Heavy Shoppers value ‘deals’ and ‘feeling smart’ along side ‘ good offers’ which all add to the experience.
Q7: Please explain briefly how you feel about shopping at Family Dollar. How is the experience of shopping at Family Dollar for you? Please be as specific as possible.
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…And Feels In Control, Confident, Relaxed/Calm and Trusting When Shopping At FDO
In Control
Confident
Relaxed
Calm
Trusting
Leisurely
Happy
Energized
Excited
49%
45%
45%
44%
42%
40%
39%
33%
30%
Heavy FDO ShoppersShops FDO at least once a month
Q9: Please rate the way you feel when shopping at FAMILY DOLLAR for your household (for example, for snacks, beverages, household cleaners, paper products, etc.) using the table below – TOP BOX SHOWN
Feelings when Shopping at Family Dollar
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Has low everyday prices
Has quality products
Has good sales
Consistantly has the products I want on the shelf
Has a safe shopping enviroment
58%
54%
53%
53%
53%
The Heavy FDO Shopper Wants To Shop A Store That Consistently Carries The High-Quality Sodas And Snacks She Wants At A Low Price In A Safe Shopping EnvironmentTop 5 CSDs and Snacks Purchase Drivers – Heavy FDO Shoppers
Q18: When buying carbonated soft drinks or snacks how important are each of the following in selecting the store where you will make a purchase? TOP BOX SHOWN
1515
Is conveniently located
Has low everyday prices
Has good sales
Is family-friendly
Is easy to get in and out of quickly
38%
37%
35%
33%
33%
The Heavy FDO Shopper Recognizes FDO As A Conveniently Located Store That Offers Low Prices and Great Sales In A Family Friendly, Easy To Shop EnvironmentTop 5 Family Dollar Performance Attributes – Heavy FDO Shoppers
Q19: How would you rate FAMILY DOLLAR performance on each aspect below? TOP BOX SHOWN
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We Compared Purchase Driver Importance And FDO Performance To Identify Strengths, Barriers & Gaps… Introducing The Driver Importance & Performance Matrix
Driver Importance
FDO
Per
form
ance
EVALUATENot important today, but FDO performs well. Discuss if these
can be turned into comparative advantage or need to be ignored
STRENGTHThese attributes should be part
of our value proposition
FORGETDo not communicate or invest
money to develop
BARRIERS & GAPSWe ought to overcome
performance gaps to drive purchase
HighLow
High
Low
Q18: When buying carbonated soft drinks or snacks how important are each of the following in selecting the store where you will make a purchase? TOP BOX SHOWNQ19: How would you rate FAMILY DOLLAR performance on each aspect below? TOP BOX SHOWN
Driver Importance & Performance Matrix
1717
…And Thus Learned About Things We Can Leverage And Things We Have To Address
25% 30% 35% 40% 45% 50% 55% 60%15%
20%
25%
30%
35%
40%
Driver Importance
FDO
Per
form
ance
EDLP
Conveniently Located
Good SalesEasy to Get In/Out
Convenient HoursEasy/Quick Checkout
Quality Products
Family Friendly
Friendly/Comf. Atmosphere
Clean Restrooms
Good loyalty program
Good to grab quick meal/bev.Fun to shop
PrivateLabel
BrandNames
FamiliarLayout Helpful
EmployeesAcceptsManuf.Coupons
Safe shopping environmentConsistently has products on shelf
Product SizesOrg./Easy Shop
Good varietyClean Shopping Area
Q18: When buying carbonated soft drinks or snacks how important are each of the following in selecting the store where you will make a purchase? TOP BOX SHOWNQ19: How would you rate FAMILY DOLLAR performance on each aspect below? TOP BOX SHOWN
FDO Heavy Shopper - Driver Importance & Performance Matrix – CSDs & Snacks
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*Borderline drivers could be placed in both quadrants
Q18: When buying carbonated soft drinks or snacks how important are each of the following in selecting the store where you will make a purchase? TOP BOX SHOWNQ19: How would you rate FAMILY DOLLAR performance on each aspect below? TOP BOX SHOWN
…And Thus Learned About Things We Can Leverage And Things We Have To Address (Contd.)
Driver Importance
FDO
Per
form
ance
EVALUATEFamily Friendly
Friendly/Comfortable Atmosphere
STRENGTHEDLP
Conveniently LocatedGood Sales
Easy to Get In/OutConvenient Hours
Easy/Quick Checkout
FORGETGood Loyalty Program
Clean RestroomsGood to Grab a Quick Meal/Beverage
Fun to Shop
BARRIERS & GAPSQuality Products
HighLow
High
Low
Safe Shopping Environment*Clean Shopping Area*
Good Variety*Offer Sizes I Buy*
Organized/Easy to Shop*Consistently has the Products I Want on the Shelf*`
Private Label*Brand Names*
Accepts Manuf . Coupons*Familiar Layouts*
Helpful Employees*
FDO Heavy Shopper - Driver Importance & Performance Matrix – CSDs & Snacks
1919
Q18: When buying carbonated soft drinks or snacks how important are each of the following in selecting the store where you will make a purchase? TOP BOX SHOWNQ19: How would you rate FAMILY DOLLAR performance on each aspect below? TOP BOX SHOWN
…And Thus Learned About Things We Can Leverage And Things We Have To Address (Contd.)• Leverage FDO strengths, specifically low prices/sales &
convenience (location, shop, hours)• Evaluate family/family friendly as differentiating factor
• Address the perception of not carrying quality products as #1 barrier
• Reassure shoppers they will find the quality sodas and snacks they want in a clean, organized and safe shopping environment
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Step 3: Determine HOW The Brands Best Fit With Their Shopper Needs
1. Understand the core positioning and brand attributes of each partner brand
2. Develop the sweet spot that aligns the occasion and shopper needs with all relevant brand attributes
FDO Shopper
Leisure At
Home Snack Time
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Two Brands, One Occasion, One Shopper
FDO Shopper
Leisure At Home Snack Time
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Our Shopper
FDO Shopper
She wants to savor little moments with her family
She is constrained by budget
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Leisure At Home Snack Time
The Occasion: Leisure At Home Snack Time
Is about bringing the family together
Creating a break from the daily routine
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Family Dollar
Family Dollar helps you say “yes”
Provide the options the family wants, at Family Dollar Low Prices
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Coca-ColaCoca-Cola enhances moments of Happiness
Builds trust through established high quality reputation
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Helping Her Say Yes To
More Moments of Happiness
FDO ShopperSavor little moments
with her familyConstrained by budget
HappinessTrust/High
Quality
Leisure At Home Snack Time
Bring family togetherBreak from Routine
Two Brands, One Occasion, One Shopper = ONE Core Creative Idea
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Step 4: Plan WHERE to engage Shoppers along their path to purchase
1. Identify the most influential media nodes for the core shopper
2. Determine which media nodes will be activated along the path to purchase
3. Based on the shopper profile, determine what is the optimal messaging by media node
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A sign I saw as I entered the store
A family member
A circular or other offer I received with the newspaper
A sign on the store's window
A circular or other offer I received in the mail
A friend
Coupon from manufacturer
A sign I saw on the shelf
A circular or other offer was given in the store
A sign I saw at the end of the aisle
Coupon at bottom of receipt
Family Dollar Website
Advertisement on the newspaper or magazine
Advertisement on television
20%
17%
17%
17%
16%
16%
15%
15%
15%
12%
11%
11%
11%
10%
Advertisement on radio
Coupon from manufacturer
A family member
A text message from friend / family
Emails from store
Coupon at bottom of receipt
A circular or other offer I received in the mailA circular or other offer I received with the
newspaperAdvertisement at a bus stop
Family Dollar website
Family Dollar Facebook page
Couponing site (for example, coupon.com)
A friend
A sign I saw on the shelf
55%
53%
53%
51%
50%
50%
49%
48%
47%
47%
45%
44%
42%
42%
42%
Incidence Influence
We Sought To Understand How Different Media Nodes Affect The Purchase Decision Of Core FDO Shoppers
Top Media Nodes – Incidence & Influence – Core FDO Shoppers
Q15: Thinking about your recent purchases of Carbonated Soft Drink (Soda or Pop) or Snacks (like Cookies, Crackers, Salty Snacks or Candy) at [Family Dollar/Elsewhere], did you see, hear or experience any of the following sources of information, relating to these products at Family Dollar, prior to making a purchase? Check all that apply Q16: How important or unimportant was each source of information in influencing your decision to purchase these products at [Family Dollar/Elsewhere]? TOP BOX – VERY INFLUENTIAL
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After Analyzing Incidence And Influence We Categorized Media Nodes Into BucketsMUST And RAMP UP Will Be Critical To Our Shared Media Connections Plan
Incidence
Influ
ence
RAMP UPThese media nodes are not used very frequently, but when they
are, they’re very influential
MUSTThese media nodes are used
frequently and have high impact in the purchase decision
AVOIDThese media nodes are not as
relevant as others
SCALE DOWNThese media nodes are
consumed frequently, but do not affect purchase decisions as
much
HighLow
High
Low
Q15: Thinking about your recent purchases of Carbonated Soft Drink (Soda or Pop) or Snacks (like Cookies, Crackers, Salty Snacks or Candy), did you see, hear or experience any of the following sources of information, relating to these products at Family Dollar, prior to making a purchase? Check all that apply Q16: How important or unimportant was each source of information in influencing your decision to purchase these products? TOP BOX – VERY INFLUENTIAL
Incidence And Influence Matrix
3030
2% 4% 6% 8% 10% 12% 14% 16% 18% 20%20%
25%
30%
35%
40%
45%
50%
55%
60%
Q15: Thinking about your recent purchases of Carbonated Soft Drink (Soda or Pop) or Snacks (like Cookies, Crackers, Salty Snacks or Candy), did you see, hear or experience any of the following sources of information, relating to these products at Family Dollar, prior to making a purchase? Check all that apply Q16: How important or unimportant was each source of information in influencing your decision to purchase these products? TOP BOX – VERY INFLUENTIAL
Incidence
Influ
ence
Sign – Store Entrance
Family Member
Sign – Store Window
Friend
Circular - Mail
Sign - ShelfFDO website
Circular - Store
Coupon - Mfr
Circular - Newspaper
Sign – End of Aisle
Coupon – Receipt
FDO Facebook
FDO Employee
Coupon - Site
Text – Friend/Family
Online Forum
BillboardAd – Online
Ad – Newspaper/Mag
Ad – TV
Ad – Bus Stop
Text - Store
Email - Mfr
Email - Store
TwitterAd - Radio
MUSTRAMP UP Incidence And Influence Matrix – Core FDO Shoppers
The Shared Media Connections Plan Will Integrate MUST And RAMP UP Media Nodes
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Incidence
Influ
ence
RAMP UPTwitter
Ad – Radio, Bus StopText – Friend & Family
Email – StoreFDO Facebook
Coupon Site
MUSTFamily Members & Friends
Circular – Mail & NewspaperCoupon – Manufacturer’s and Receipt
Sign – ShelfFDO Website
AVOIDText from Store
Ad – Billboard, Other OnlineOnline Forum
Email – ManufacturerFDO Employee
SCALE DOWNSign: Store Entrance, Window, End of Aisle
Circular – StoreAd – Newspaper/Mag, TV
HighLow
High
Low
Q15: Thinking about your recent purchases of Carbonated Soft Drink (Soda or Pop) or Snacks (like Cookies, Crackers, Salty Snacks or Candy), did you see, hear or experience any of the following sources of information, relating to these products at Family Dollar, prior to making a purchase? Check all that apply Q16: How important or unimportant was each source of information in influencing your decision to purchase these products? TOP BOX – VERY INFLUENTIAL
The Shared Media Connections Plan Will Integrate MUST And RAMP UP Media Nodes (Contd.)
Incidence And Influence Matrix – Core FDO Shoppers
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While Messaging For MUST Media Nodes Should Be Centered Around Value And Deals…
Emotional Benefits
Functional Benefits
Product Attributes
Perfect Occasion
Value/Low Price Specific Deal General Deal
Family & Friends ✓✓ ✓
Circular – Mail & Newspaper ✓✓ ✓
Manufacturer’s Coupon ✓✓ ✓
Coupon - Receipt ✓✓ ✓
Sign - Shelf ✓✓ ✓
FDO Website ✓✓ ✓
Q17: You indicated that INSERT ANSWER FROM 16 was important to you. The content of the message was about: (please check all that apply)
✓✓ = Primary Message ✓ = Alternative Message
3333
…RAMP UP Media Nodes Will Accommodate A Full Range Of Message Types…
Emotional Benefits
Functional Benefits
Product Attributes
Perfect Occasion
Value/Low Price Specific Deal General Deal
Twitter ✓✓✓
Ad - Radio ✓✓ ✓✓✓ ✓✓ ✓
Ad – Bus Stop ✓✓✓✓Text – Friends
& Family ✓✓✓ ✓✓
Email - Store ✓✓✓
FDO Facebook ✓✓✓
Q17: You indicated that INSERT ANSWER FROM 16 was important to you. The content of the message was about: (please check all that apply)
✓✓ = Primary Message ✓ = Alternative Message
Coupon Site ✓✓ ✓✓✓
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Pre-Shop Shop Post-Shop
Shopper Insight
CommunicationObjective
Connection
ILLUSTRATIVE
Key Message
Store location is the key driver when
choosing where to shop
Increase awareness of Family Dollar ubiquity
“We are NEAR YOU”
OOHRadio
Shoppers preferred store is influenced by
peers choice
Establish FD as a snack destination as
evidenced by shoppers’ choice
“We snack @ FD”
Facebook, Twitter
Connection Source: from Family Dollar, from Coca-Cola, Developed Jointly
Shopper focused on core categories
Shopper is looking for best value for
money. Clear price communication is key
Shopper is thinking about items they
might have missed
Search Select/Deselect Buy
Drive impulse through solutions
“Complete Perfect Snack”
Store WindowSecondary Display
Reinforce affordability of bundled offer
“Best Value”
Shelf RailT-Dangler
Last reminder to buy
“Hungry & Thirsty?Grab-n-Go”
Checkout laneCooler
The Task: Develop An Integrated Shared Media Connections Plan
3535
Pre-Shop Post-Shop
Shared Media Connections PlanPreliminary Media Nodes Along The Path To Purchase
Shop
Trad
ition
alDi
gita
lAc
tivat
ed a
s WO
M
Ad - Radio ✓
Sign – Shelf = Destination Rack ✓
Ad – Bus Stop ✓
Checkout ✓
Store Entrance ✓Circular – Mail & Newspaper ✓ ✓
Family & Friends ✓ ✓
Twitter ✓ ✓Text – Friends & Family ✓ ✓
Email - Store ✓
FDO Website ✓ ✓
FDO Facebook ✓ ✓
The Way of Shopper Marketing Classified - Internal use
THANK YOUFor additional information please visit the Shopper/Customer Marketing
Community at www.KOSCMarketing.com