popai/gfk shopper & retail...
TRANSCRIPT
1 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
POPAI/GfK Shopper & Retail Marketing Industry Survey 2017 - Findings
Prepared by: Norrelle Goldring
Date: 3 October, 2017
2 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Contents
Purpose, what we did, who we spoke to 1
Where are we now, and what’s changed? 2
Where are we going? 3
Comparisons 2017 to 2014 study findings:
Better/increase
than 2014
Worse/lower
than 2014
About the same
as 2014
3 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
1 Purpose, what we did, who we spoke to
4 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Why a Shopper Marketing & Category
industry benchmarking survey in 2017?
Setting the roadmap for change.
Digital technology and shopper adoption of it
has changed shopping behaviours – but
how much has it changed what is activated?
It’s 3 years since the last one in 2014, we
suspect some things will have changed or
moved on
What’s the role of shopper marketing, retail
marketing, and category?
What’s changed?
What hasn’t?
Why not?
What may change?
Where to from here?
5 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
What we did
1. Depth interviews x 29
June
Face to face or phone:
• 12 x brands
• 1 x retailer
• 1 x POP supplier
• 9 x creative agencies
• 6 x ‘other’ agencies
2. Online survey, ~25 mins, n=91
September
40%
2%
52%
7%
Brand Manufacturer
Retailer
Agency
POP Supplier
P1: Which of the following best describes the sector you work in?
11 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
2 Where are we now? What’s changed?
12 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
What’s changed in 2017 versus 2014?
• Less perception of
bandwagon
• More strategic role
• Use of digital and social in
programs
• Measuring more often
• Success of programs
• Retailer control of media
assets increasing, thereby
increasing cost of
participating in or running
campaigns
• Fewer programs overall
(‘fewer, bigger, better’)
• People resources
• Budgets
• Education
• C-suite support and
interest
• Shopper led campaigns
(vs brand or retailer led)
We’re getting better at it, but there is a ceiling on innovation and effectiveness due to retailer and c-suite
limitations, particularly in FMCG. Brands and agencies putting more focus on what they can control.
13 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Scope & Definitions of Shopper Marketing
… and versus Retail Marketing and Category
14 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
S1. What is your definition of shopper marketing?
Definitions of shopper marketing ranged from the broad to the specific
Most definitions involved use of insights resulting in a purchase
Understanding how shoppers behave in different channels
and leveraging these insights to create engaging experiences
A marketing communications channel that specifically is
tasked with getting people to buy a product or service.
Understanding customer purchase trends and
implementing programs and strategies to increase basket
size, shopping frequency and shopper numbers
Developing insights-lead solutions that achieve a 3-way-win
between 1. Brand 2. Shopper 3. Retailer
All communication and activities related to the purchase
Marketing with the action of purchase and repurchase
considered as the primary focus
The way in which retailers & manufacturers use insights
to engage with the shopper along the path to purchase to
increase sales of their products.
Marketing that influences the shopper/ house hold
decision maker on the path to purchase decision.
17 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
2/3 believe shopper marketing is couch to cash register and/or
integrating all touchpoints. This has moved on from 2014.
SC4: What is your view of the scope of shopper and retail marketing? SC5: What is your perspective on shopper and retail marketing? SC6: Which of these comes closest to your
Total base n=91 perspective on the role of shopper and retail marketing?
91% 98%
87% 82%
Prestore Instore Poststore/postpurchase
Digital,wherever
that is
32%
48%
20%
Shelf back/FMOT
Couch forward to cash register
Other
41%
44%
5% 10%
Strategic - JBDP, annual plans
Tactical expression of a strategic plan
Primarily tactical campaign based
Other
Opinions are evenly split on whether it’s strategic or tactical. Some see it as both.
18 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Organisation Structure & Support
This section was completed by brands and retailers only
19 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
29% 24% 29% 24% 5%
16% 16% 18%
53% 55% 45% 42%
26%
42% 39% 53%
11% 16% 16% 26%
21%
18% 24%
16%
5% 5% 11% 8%
37%
24% 21% 13%
3% 11%
Gaining in momentumand focus
Achieving bettermanufacturer/retailer
collaboration
Giving us a source ofcompetitive advantage
Resulting in moreinnovative in-market
programs
Is adequately resourced(people, budgets)
Is integrated into annualand strategic planning
Has a clear definitionand vision
Has clear ownership
Completely Disagree
Somewhat disagree
Neither agree nor disagree
Agree somewhat
Completely Agree
Gaining in
momentum and
focus
Achieving better
manufacturer /
retailer
collaboration
Giving us a
source of
competitive
advantage
Resulting in
more innovative
in-market
programs
Is adequately
resourced
(people,
budgets)
Is integrated into
annual and
strategic
planning
Has a clear
definition and
vision
Has clear
ownership
OS10: How would you describe the status of Shopper & Retail Marketing in your organisation? Shopper marketing is ….
Total base n=91
80% agree shopper marketing is gaining momentum and better
brand/retailer collaboration.
82% 79% 74% 66% 31% 58% 55% 71% Top 2 Agree
But still high levels of dissatisfaction with resourcing, jury is out on vision, and only
integrated into planning for half.
20 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
1/3 are doing shopper and retail marketing strategic planning upfront,
nearly half say at the same time as other plans
Brands and Retailers only
SA1: Which of the following best describes where shopper and retail marketing strategic planning sits in your organisation‘s planning process?
Base total n=91
32%
45%
5%
16%
3% Bus strategy (start of planningprocess)
Simultaneous to other plans
Post brand planning
No strategic shopper plans
Other
1 in 6 don’t have strategic shopper plans
(may be part of category strategy?)
21 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Customer/trade marketing departments are still more prevalent than
shopper/retail marketing teams.
Category teams exist for 7 in 10, and where there is both category and shopper these are
evenly split between being together or separate.
OS1: Which of these functions exist as dedicated roles in your business?
OS2: You mentioned there are both shopper and category people in your organisation. Are the shopper and category functions in your organisation …
Total base n=91
71%
55% 50%
42% 37%
5%
CategoryManagement
Customer/TradeMarketing
Shopper/RetailMarketing
ShopperInsights
CategoryDevelopment
None of theabove
47% 53%
Together in one groupreporting into oneperson
Separate
22 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Shopper marketing is most likely to report to marketing.
Customer/trade marketing increasingly report to sales, particularly if
retailer specific.
OS3: For each of the following functions, where do they report to?
8%
11%
50%
5%
5%
3%
18%
Sales
Category
Marketing
Shopper
Executive
Insights
Other
Not Applicable
24%
13%
34%
3% 3% 3%
21%
Shopper / Retail Marketing Customer / Trade marketing
Reports into … Reports into …
23 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Shopper Insights most likely to report into category, as is category
development. Virtually none of these functions report into the executive
OS3: For each of the following functions, where do they report to?
8%
26%
18% 0% 8%
0%
26%
Sales
Category
Marketing
Shopper
Executive
Insights
Other
Not Applicable
26%
42%
13%
5%
3%
11%
Shopper Insights
reports to ...
Category Management & Development
reports to ...
25 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
OS5: Do you expect the number of people responsible for / involved in the following functions in your company to increase over the next 12-18 months?
Total base n=91
Nearly half expect to increase their shopper/retail marketing resources
45% 34%
18% 29%
39% 47%
58%
61%
16% 18% 24% 11%
Shopper/Retail Marketing
Customer/Trade marketing
ShopperInsights
Category Management &Development
Not Applicable
No
Yes
Around 1/3 of each of trade marketing and category expect to increase resources,
but fewer than 1 in 5 for shopper insights
26 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
OS6: For each of the following functions, with regard to budget, do they:
Total base n=91
1/3 or less of shopper and trade marketing practitioners have their own
budget. 1/3 have their own plus source from elsewhere.
29% 34% 24%
47%
13% 11% 26%
24% 37% 29% 18%
21% 21% 26% 32%
8%
Shopper/Retail Marketing
Customer/Trade marketing
ShopperInsights
Category Management &Development
Not Applicable
Combination of the two
Sources from elsewhere
Has own budget
Where nearly half of category people have their own budget (albeit that category
typically requires fewer executional $$ than does shopper)
28 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
OS8: With regard to budget for each of these functions, do you see it increasing, decreasing or remaining the same over the next 2 years?
Total base n=91
Half expect shopper marketing budgets to increase. Less bullish for
shopper insights, despite overall increasing interest in this area.
50% 37%
26% 21%
5%
8% 13%
3%
29%
32% 29% 61%
16% 24%
32% 16%
Shopper/Retail Marketing
Customer/Trade marketing
ShopperInsights
Category Management &Development
Not applicable
Remain the Same
Decreasing
Increasing
Category budgets largely expected to stay the same.
29 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
If more budget were available, more than half would spend it on
digital/social/mobile
1/3 would spend more on shopper research and insights
OS9: Where would you deploy more budget and / or people resources, if they became available?
Total base n=91
53%
37% 32%
18% 16% 16%
8% 5% 3%
SM programs -prestore
digital/social/mobileelements
Shopper researchand insights
SM programs -instore elements
Upfront shopperstrategy and
planning
Store staff trainingand incentives
Brand/consumeradvertising
SM programs -prestore consumer
components
SM programs - poststore components
Other
33 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
1 in 3 overall say they are still in the beginning stages of shopper
insights
Another 1/3 say they have run research and data analysis for some time.
SI1: Which of the following best describes your organisation’s relationship with shopper insights?
36%
36%
50%
38%
17%
35%
42%
30%
50%
26%
22%
32%
17%
2%
50%
17%
Total
Brand Manufacturer
Retailer
Agency
POP Supplier
Beginning journey Run research and data for some time Very experienced in research and data Not planning on using or running shopper insights
36 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Shopper Marketing Activities
37 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA2: What % of shopper / retail marketing programs do you activate that are:
Total base n=91
Half of shopper programs are brand led, a quarter are retailer led and
1/3 are shopper/category/occasion led
48 49
30
50
35
27 26
35
23 55
33 31
70
36 25
Total Brand Manufacturer Retailer Agency POP Supplier
Shopper/occasion/category led
Retailer Led
Brand Led
POP suppliers are doing more retailer led work, where agencies are doing more
brand led work.
38 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA3: Are the number of these program types in which you are participating increasing, decreasing, or staying the same?
Total base n=91
Retailer led and occasion/category led programs are perceived to be
increasing.
30%
50% 51%
24%
9% 9%
46% 41% 39%
Brand led Retailer led Occasion/category led
Staying same
Decreasing
Increasing
However, retailer led programs and use of retailers’ media assets is perceived to
be increasing costs, leading to ‘fewer, bigger, better’
Retailers taking control of the touchpoints and charging to pay to play means cost is going up
39 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
S97: Are you using retailers’ media assets as part of shopper & retail marketing programs?
Total base n=91
90% are using retailers‘ media assets to some degree.
1/3 are using retailers‘ assets for all programs.
31% 36% 25%
35% 25% 47%
26% 33% 19%
7% 6% 9%
Total Brand Manufacturer Agency
No, never
No, not yet
Yes, occasionally
Yes, sometimes
Yes, for most/all programs
Brand and Agency
Retailers are clipping the ticket on where agencies used to make money in fulfilment and production. There is an
ongoing shift of marketing spend from brands/agencies to retailers.
41 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
2/3 of brand manufacturers have fewer than half of their campaign
pitches actually make it into market.
Brand manufacturers
SA5: In the past 12 months how many of the brand or sopper / occasion / category led campaigns which you have pitched to major retail customers, have actually made it into market?
Base total n=91
11%
19%
36%
25%
8% Under 10%
10-25%
25-50%
50-75%
75-100%
Retailers say they want innovation
but if can’t demonstrate the return,
it gets knocked back.
44 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA4: What % of shopper/retail marketing programs do you activate that are:
Total base n=91
Nearly 2/3 of what is being activated is temporary (higher for agencies)
67 64 70 72
51
29 34
60 23
26
21 27 10
16 23
Total Brand Manufacturer Retailer Agency POP Supplier
Permanent (16+ weeks)
SemiPerm (8-16 weeks)
Temporary (<8 weeks)
Most shopper activations are semipermanent and campaign based. This will continue with digital being temporary and
having interchangeable content.
45 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA8: Which of the following shopper & retail marketing activity types do you currently employ in your shopper & retail marketing programs?
SA8a: And which tools, techniques and touchpoints are you using more or less of than a year or so ago in your shopper and retail marketing programs?
Total base n=91
Websites, social media and eDMs used most frequently.
Most digital tools have increasead versus 2014, and expected to
continue to increase, particularly social media.
5% 8% 11% 12% 3%
16% 23%
47% 34%
36% 35%
70%
23% 12%
47% 58%
53% 53%
27%
61% 65%
Websites Searchengines
Mobile Direct &EDMs
SocialMedia
AR/ VR Coupons
Same
More
Less
11%
35% 38%
24%
7%
61% 51%
43%
39% 42%
42%
43%
35%
41% 46%
26% 20%
34%
50%
4% 8%
Websites Searchengines
Mobile Direct &EDMs
SocialMedia
AR/ VR Coupons
Frequently
Sometimes
Never/Don't use
Digital tools & techniques employed
46 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA8: Which of the following shopper & retail marketing activity types do you currently employ in your shopper & retail marketing programs?
SA8a: And which tools, techniques and touchpoints are you using more or less of than a year or so ago in your shopper and retail marketing programs?
Total base n=91
Offlocation displays and POS materials used the most frequently.
Store staff incentives increased frequency since 2014.
1 in 3-4 say they will use more of most instore tools.
8% 8% 7% 15%
7% 12% 16% 15%
27% 34%
27% 23% 36% 24%
23% 20%
65% 58%
66% 62% 57%
64% 61% 65%
Offlocationdisplays
Store stafftraining andincentives
Instoremedia
Kiosks POSM Sampling &Demos
On-packpromos
Projections
Same
More
Less
9% 15% 11%
36%
3% 9%
31%
61%
22%
39% 57%
54%
22%
57%
39%
31%
69%
46%
32%
9%
76%
34% 30%
8%
Offlocationdisplays
Store stafftraining andincentives
Instoremedia
Kiosks POSM Sampling &Demos
On-packpromos
Projections
Frequently
Sometimes
Never/Don't use
Instore tools & techniques employed
47 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA8: Which of the following shopper & retail marketing activity types do you currently employ in your shopper & retail marketing programs?
SA8a: And which tools, techniques and touchpoints are you using more or less of than a year or so ago in your shopper and retail marketing programs?
Total base n=91
Catalogues and advocacy programs the most frequently used out of
store. Experiential expected to increase the most.
28% 35%
19% 18% 23% 32%
47%
53%
53%
35%
47%
49%
24%
12%
28%
47%
30% 19%
ATL media Outdoor media Experiential/Events Catalogues Advocacy Loyalty programs
Frequently
Sometimes
Never/Don't use
Out of store tools and techniques employed
ATL media Outdoor
media
Experiment
al / Events
Catalogues Advocacy Loyalty
programs
22% 19% 9% 12% 11% 12%
23% 23% 41%
18% 30%
22%
55% 58% 50%
70% 59%
66%
ATL media Outdoor media Experiential/Events Catalogues Advocacy Loyalty programs
Same
More
Less
ATL media Outdoor
media
Experiment
al / Events
Catalogues Advocacy Loyalty
programs
Experiential drives emotion but also interaction, not just awareness. If move to online sales, then role of physical store is
more experiential. Retailers limit or charge for what can be done instore, so we invest in experiential out of store.
48 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
SA11: How many (what percentage) of your shopper marketing campaigns are measured and evaluated?
Total base n=91
4 in 10 say they measure 75%+ of their campaigns.
But nearly 1 in 3 are measuring campaigns less than 25% of the time
Agencies say they are measuring more campaigns (or at least the campaigns they are involved in are
measured) slightly more frequently than brand manufacturers
16% 14%
100%
13%
25%
26% 22%
0%
31%
25%
27%
25%
0%
28%
50% 18%
22%
0%
16%
0%
12% 17%
0%
9%
0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total Brand Manufacturer Retailer Agency POP Supplier
None
Less than 25%
25-49%
50-74%
75-99%
100%
49 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
More than 3 in 4 are measuring campaigns using volume/value uplift
Around half are using impact and influence measures such as engagement, participation, reach
SA10: Which ways do you measure shopper and retail marketing activities in your organisation?
Total base n=91
80
73
42
59
36
50 53
30
51
27
42
55 59
3 1
78 75
39
64
33
39
56
25
47
19
42
53
64
3 0
100 100
50 50
0 0 0 0 0
50
0 0 0 0 0
88
69
50
59
41
69
56
41
63
31
44
66
59
0 0
25
75
0
25
50
25 25
0
25
50 50
25
50
0
25
Sales volume lift Sales value/dollars lift Residual incremental sales Short term ROI/cost vs return Long term ROI/cost vs return Retailer/customer/storeengagement
Category/Brand share increases Shopper/customer awareness andreach
Shopper participation &engagement
Shopper/customer satisfaction andexperience enhancement
Shopper, loyalty and brandattributes
Shopper behaviour changes(AWOP, frequency, Spend, Traffic,
Basket and HouseholdPenetration)
Achieved vs. plannedexecution/POS/distribution
Other None of the above
Total Brand Manufacturer Retailer Agency POP Supplier
Sales volume
life
Sales value /
dollars lift
Residual
incremental
sales
Short term
ROI / cost vs
return
Long term
ROI / cost vs
return
Retailer /
customer /
store
engagement
Category /
Brand share
increases
Shopper /
customer
awareness
and reach
Shopper
participation
&
engagement
Shopper /
customer
satisfaction &
experience
enhancement
Shopper,
loyalty &
brand
attributes
Shopper
behaviour
changes
Achieved vs
planned
execution /
POS /
distribution
Other None of the
above
52 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Brands and retailers look to agencies primarily for research and
insights, creative program ideas, POS production. But also strategy.
Brand and retailer
SA14: What role or functions are most important for shopper marketing-related agencies to provide?
Total base n=91
58%
45% 39% 37% 34%
16% 16% 13% 11% 11% 5% 3% 5%
Shopperresearch &
insightdevelopment
Creativeprogram
ideas
POS designand
production
Shopperstrategy
development
Comms stratdevpt
Digital, social,mobileactivity
execution
Digital,mobile, socialshopper strat
devpt
Post programmeasurement
Activationsexecution
Fixturing,store designand theatre
Commsexecution
Packagingdesign
Other
53 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Retailers look to brands for similar things than what they look to
agencies for. Plus funding.
Retailer
SA15: What are the most important things a brand supplier can bring to the table for shopper and retail marketing programs?
Total base n=91
Ideas that will
drive traffic
and spend
Funding Creative ideas
Ideas that will
improve the
shopper
experience
Shopper and
category
insights
54 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Improving Worsening Staying the same
Agency & POP suppliers
SA16: Is the quality of the shopper / retail marketing briefs you receive from clients …
SA16a: What do you think is behind this?
1 in 4 think the quality of client briefs is improving. 2 in 3 think it’s the same.
25%
13% 62%
Improving Worsening Staying the same
Fewer pop suppliers than agencies
thought briefs improving. More POP
suppliers than agencies said briefs
worsening or staying the same. Clients are upskilling as
times goes on.
New technologies, new tools,
new people so new
opportunities.
More importance being
placed on shopper and
retailer engagement.
The better ones involve
insights led strategies.
Brand, category and
marketing managers are
utilising multiple channels
to market and services
without mastering any of
them. Spread too thinly and
too many are
inexperienced. Suppliers
are expected to spend a lot
of time coming up with
multiple solutions, when in
reality, we are second
guessing based on very
loose briefs."
State of the economy. Lack
of strategic planning by
retailers.
Still a lack of expertise and
understanding of Shopper
and Retail Marketing.
Clients [briefers] are time-
poor and find it harder to
keep up with what they could
get and ask for; suppliers
[external or internal] are paid
for being data-providers not
solution providers. Very few
are bridging the gap.
Silo mentality between
insights, brand and shopper
teams.
55 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Digital, Mobile, Social
56 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
84
68 68
47 43
30 30 26 24 24 23
18 20
4 3 3
94
81
72
31
53
28
42
36 36
28
17 14
19
6 6
0
100
50 50
0
50
0 0 0 0
50
0 0 0 0 0 0
72
56
72 72
31 34
22 19
16
22
34
25 22
3 0
3
75
50
0
25
50
25
0 0 0 0 0 0
25
0 0
25
Websites Email offers/eDM Social Media ie Facebook/Insta Promotion based microsites Search engines - sponsoredresults
Mobile offers pre-store Online reviews and feedback Mobile search Online catalogue/printable e-coupons
Web based feedback and reviewforums
Augmented/Virtual reality Mobile apps Mobile location-based offers Group deal-of-day offers Other None of the above
Total Brand Manufacturer Retailer Agency POP Supplier
Websites Email offers
/ eDM
Social
Media ie
Facebook /
Promotion
based
microsites
Search
engines –
sponsored
results
Mobile
offers pre-
store
Online
reviews &
feedback
Mobile
search
Online
catalogue /
printable e-
coupons
Web based
feedback &
review
forums
Augmented /
Virtual
reality
Mobile
apps
Mobile
location
based offers
Group deal-
of-day offers
Other None of the
above
Websites, eDMs, and social media used by more than 2 in 3 in past 18
months. Brands doing more of most things than agencies
Agencies are more likely than brands to use microsites, AR/VR, mobile apps.
Mobile use still in its infancy, under 30%
DOM1: Which digital, online or social media techniques have you trialled or adopted for shopper & retail marketing in the past 12-18 months?
Total base n=91
57 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Nearly half of agencies and brands are using digital in 75-100% of
programs
A quarter of brands say they use digital 100% of the time
DOM2: In the past 12 months, how many (what %) of your shopper & retail marketing programs and campaigns include digital / social / mobile elements?
Base total n=91
16%
32%
19%
14%
16%
3% 100% of programs
75-99% of programs
50-74% of programs
25-49% of programs
< 25% of programs
None
Toe in the water but not on scale.
Digital tie ins with what retailers
are doing - loyalty edms etc
Digital is in its infancy - trial stages
for shopper. People don’t have a
great handle on it, but this will
change quickly.
60 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
DOM4D: Have you run any exclusively digital shopper campaigns (ie. with no physical store execution)?
A third have run exclusively digital shopper campaigns.
32%
Yes
68%
No
61 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Barriers around ownership, ‘keeping up’, complexity, and privacy
DOM5: What do you see as the biggest opportunities and challenges in leveraging digital technologies for shopper and retail marketing?
Biggest opportunities around digital are in measurement, reach, and
targeting.
Opportunities Barriers
Measuring ROI.
Better targeting.
Being able to connect with the customer and drive the sale
process directly with them.
Reach. Ability to scale.
Efficiency & effectiveness.
Closing the loop, taking in store activities online and vice
versa.
Data, knowledge, insights.
Fully integrated campaigns.
Digital noise and clutter.
Lots of choices, limited resources = don’t know where to
spend the time and money.
Changes fast – difficult to keep up and stay across what
works and what doesn’t.
Ownership over who is responsible … and finding
dedicated experts.
Cost of leveraging retailer databases and subsequent
inability to create longer term loyalty and reengagement
program with those audiences.
Privacy concerns and data restrictions.
Integration with other commerce, communication and
relationship vehicles.
62 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
3. The Future – where are we going?
63 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Shopper Marketing seen as core for 4 in 10, and likely to become
integrated for 1 in 3.
Virtually noone sees the function as a bandwagon any more or are doing it merely to keep up.
F1: Which of the following best describes what you see as the medium term future of shopper & retail marketing in your company?
3%
8%
4%
8%
2%
8%
6%
6%
33%
36%
36%
50%
41%
39%
50%
47%
8%
3%
50%
9%
17%
Total
Brand Manufacturer
Retailer
Agency
POP Supplier
Bit of a bandwagon, do the minimum, see what happens
Keep up so not left behind, but not core or integrated
Likely to remain tactical, fully integrating it seems complex
Probably become integrated as broader version of category, customer, consumer marketing
Is or will become core to what we do, key growth driver
None of the above
64 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Half expect resources and budgets to increase, and 3 in 4 expect the
discipline’s impact and influence to increase – but these numbers are
down versus 2014 expectations
Trend Opportunities
F2: With regard to the future of shopper & retail marketing as a discipline, outside of your company, do you think the following will increase, decrease or remain the same?
F3: What do you see as the biggest opportunities for shopper & retail marketing?
Total base n=91
55% 54%
73%
10% 18%
35% 29%
23%
Peopleresources
Budgets Impact &Influence
Remain the same
Decrease
Increase
Personalisation. Bespoke and tailored experiences.
New types of touchpoints.
Become more focussed on shopper, rather than trying to
satisfy retailer needs / wants or to increase brand
awareness.
Better measurability.
Integration at the strategic level.
Harnessing data and insights.
Better collaboration between business units, and between
brands and retailers.
Education, particularly at the senior level as to what the
disciplines are and can deliver.
Test and learn.
65 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
Biggest success limiters remain lack of experience, resources, and
senior management support
Fear and short termist thinking also play a part
F4: What do you see as the biggest success limiters, impediments and roadblocks for shopper and retail marketing?
A general lack of experience and understanding within the
industry, plus fear of change for many established players
brought up on a diet of TV advertising.
Insufficient budgets, lack of lead times to integrate shopper
correctly and lack of measurement of campaigns.
Growth of online shopping
Lack of resources – both people and budgets.
Senior Management’s level of knowledge & interest.
Data and privacy issues.
Short termist thinking: both brands and retailers. Proving
the return or you don’t get to do anything
Ignorance, fear and emphasis from mainstream agencies
that the dinosaur of TV will remain. Mainstream agency
snobbery.
Being seen as ‘end of the line’ execution people.
67 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
In sum …
Some improvements in strategy, measurement, digital, test and learn.
But pace of change is slow.
Inertia:
Brand manufacturers a combination of
‘templated’ (resulting in ‘lazy’), junior,
understaffed, risk averse, resigned/punch drunk
in dealing with retailers
Best Practice:
Still considered to be internal and external
collaboration. Not there yet for most, particularly
externally
Insights:
Doing more with less means insights perceived
to be growing sector to help with proving ROI
However little evidence of increased investment
in insights sources or people
Capability:
Low to medium, but improving over time. Few
offer roadmaps or capability training –
opportunity here. What does ‘advanced’ shopper
marketing look like?
68 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
The Future
Channels
• Future not in FMCG, too limiting by retailers.
Talent and brain drain in FMCG
• More opportunities in pharmacy, technology,
beauty (and people with FMCG smarts are
moving into these channels)
• Increasingly online/seamless/digital
Horizon
• Not much change in the immediate term
• Mid term yes, see a tipping point coming –
expect Amazon and others will create need
for retailer/market change through shopper
behavioural change that will drive other
retailers to rethink.
• Future will either become experiential (ie UK)
or analytics/price based (USA).
69 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
What’s changed in 2017 versus 2014?
• Less perception of
bandwagon
• More strategic role
• Use of digital and social in
programs
• Measuring more often
• Success of programs
• Retailer control of media
assets increasing, thereby
increasing cost of
participating in or running
campaigns
• Fewer programs overall
(‘fewer, bigger, better’)
• People resources
• Budgets
• Education
• C-suite support and
interest
• Shopper led campaigns
(vs brand or retailer led)
We’re getting better at it, but there is a ceiling on innovation and effectiveness due to retailer and c-suite
limitations, particularly in FMCG. Brands and agencies putting more focus on what they can control.
70 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017
THANK YOU
M: +61 437 335 686