This file is a synopsis of the 2011 Shopper Marketing Forum in Toronto. It's full of interesting ideas on what shopper marketing is, what kind of shape it's taking in Canada, and how agencies, retailers, and manufacturers can work better for mutual benefit. Mars-Philter is a Toronto shopper marketing and retail advertising agency. Visit us at http://www.mars-philter.ca

1. A SYNOPSIS OF THE TORONTO
SHOPPER MARKETING FORUM
MARCH 2-3, 2011

2. AS SHOPPER MARKETING CONTINUES TO GAIN
A FOOTHOLD IN CANADA, CONFERENCES LIKE
THIS ONE ARE BECOMING MORE AND MORE
VALUABLE. AGENCIES, RETAILERS, AND
MARKETERS ALL NEED TO UNDERSTAND
NOT ONLY THE UNDERPINNINGS OF THE DIS-
CIPLINE, BUT PERHAPS MORE IMPORTANTLY,
HOW THE DISCIPLINE IS AFFECTED BY THE
NUANCES OF THE CANADIAN RETAIL LAND-
SCAPE. THIS DECK IS AN ENCAPSULATION
OF WHAT WE HEARD OVER THE TWO DAYS
OF PRESENTATIONS AND DISCUSSIONS.

3. KEYNOTE 1
NEALE MARTIN

4. THE CURRENT UNDERSTANDING OF
CONSUMER BEHAVIOUR IS THIS:
WE ARE RATIONAL AGENTS MAKING
CONSCIOUS DECISIONS.
BUT THIS THINKING IS FLAWED.

5. AS IT TURNS OUT, RESEARCH HAS
ALWAYS BEEN BASED ON THE PREMISE
THAT PEOPLE KNOW WHY THEY DO
THINGS. BUT MOST PEOPLE ARE ACTING
SUBCONSCIOUSLY, AND OUT OF HABIT.

6. CONSUMERS HAVE ONE
BRAIN BUT TWO MINDS.
THE UNCONSCIOUS BRAIN
MOVES OR WORKS FIRST.

7. PEOPLE ARE NOT PRESENT
IN THE MOMENT.
THINGS GET DONE ON
AUTOPILOT.

8. WHEN PEOPLE SHOP A
CHAOTIC ENVIRONMENT
(THE GROCERY STORE) THEY
ALL LEAVE WITH THE SAME
20-30 ITEMS OF THE SAME
SIzE, BRAND AND TYPE.
OF THE PEOPLE WHO SAY
THEY WILL PROBABLY BUY
A NEW PRODUCT AT RETAIL,
ONLY 3% ACTUALLY BUY.

9. 1. AUTOPILOT MODE:
UNCONSCIOUS
2. HEURISTIC MODE: COPILOT-
BASED SHOPPING. THEY
LOOK FOR SALES. SOME
ITEMS CAN BE SWAPPED
FOR OTHERS
3. PILOT: CONSCIOUS AWARE-
NESS WHILE SHOPPING.
I FEEL. I DO. I THINK.

10. SHOPPERS WANT TO MAKE A
MAP OF THEIR STORE. SO THE
APPLE STORE IS AN EASIER
ENVIRONMENT BECAUSE OF
THE LOW SHELVES AND EASY
LAYOUT. WHEN SHELVES ARE
TOO HIGH IT’S DIFFICULT FOR
SHOPPERS TO UNDERSTAND
THEIR ENVIRONMENT. THEN TOO
MUCH ENERGY IS SPENT TRYING
TO FIGURE OUT THE STORE.

11. iDRIVE iPOD
VS
A SYSTEM SO COMPLEX NO NEED TO EVEN READ
THAT DEALERSHIPS GIVE THE MANUAL THAT
COURSES ON HOW TO USE COMES WITH IT.
IT. THINK MICROSOFT.

12. THE POINT IS THIS:
DON’T MAKE SHOPPERS
SHOP THE WAY YOU
WANT THEM TO. LET
THEM TELL YOU HOW
THEY WANT TO SHOP
AND INNOVATE AND
DESIGN AROUND THAT.

13. COUPONS ARE BRIBERY, NOT
LEARNED BEHAVIOUR. BY AS-
SUMING SHOPPER MARKETING
IS ABOUT THE DISTRIBUTION OF
COUPONS WE ARE NOT TRAIN-
ING SHOPPERS TO BE LOYAL, WE
ARE TRAINING THEM TO EXPECT
A REWARD OR MORE COUPONS.

14. UNDERSTANDING SHOPPER AND
CONSUMER HABITS ARE THE BEST
WAY TO COMMUNICATE, AND TO DO
SO MOST EFFECTIVELY WE SHOULD
DO FOUR THINGS:
CREATE CONTEXT
TRAIN BEHAVIOUR
REINFORCE
USE CUES TO TRIGGER BEHAVIOUR

15. WHAT’S THE TAKEAWAY?
IF THE UNCONSCIOUS
MIND CONTROLS 95% OF
BEHAVIOUR, THEN MOST
OF WHAT WE WANT TO
COMMUNICATE IS BEING
LOST. BECOMING A HABIT
FOR YOUR SHOPPERS IS
THE GOAL. IT’S TIME TO
CHANGE THE WAY WE TALK
TO SHOPPERS.

16. INdUSTRy REPoRT
PRESENT:
Shopper Marketing Best Practices:
KEYNOTE 2 A Collaborative Model for Retailers
and Manufacturers
FUTURE OF SHOPPER
A report from the Retail Commission on Shopper Marketing
SPoNSoREd By:
MARKETING.
DR. BRIAN HARRIS
AND JULIE BECK
A supplement to Shopper Marketing
HTTP://WWW.PHILTERRETAIL.COM/LEARN/SHOPPER-MARKETING-BEST-PRACTICES

17. COLLABORATION IS KEY.
IF THE RETAILER AND THE
MANUFACTURER DON’T WORK
TOGETHER THEN IT’S NEVER
GOING TO BE SUCCESSFUL
SHOPPER MARKETING.

18. ASK YOURSELF:
HOW DO WE ACTIVATE
INSIGHTS AGAINST
BUSINESS CHALLENGES?
THESE ARE CHALLENGES
FOR THE RETAILER AND
THE MANUFACTURER.

19. BUILD A SHOPPER MARKETING
STRATEGIC PLAN FIRST:
1. TAKE A MULTI-CHANNEL APPROACH
AND GET ALL OF YOUR AGENCIES AT
THE TABLE
2. INCORPORATE THE LARGER GOALS OF
THE BUSINESS
3. MAKE IT SCALABLE TO ALLOW ALL SIzES
OF RETAILERS TO PARTICIPATE
4. ENSURE THAT IT CAN BE EXECUTED WELL
AND THAT IT’S NOT JUST THEORETICAL
5. CREATE EFFICIENCIES IN THE PLAN
SO THAT AS THE PROGRAM MATURES,
RESULTS WILL IMPROVE

20. THE KEY TO ANY
STRATEGIC SHOPPER
MARKETING PLAN IS
TO DELIVER REAL
SHOPPER VALUE.
THIS IS ABOUT
BUILDING LONG-TERM
LOYALTY, NOT SHORT-
TERM PRICE CUTS.

21. DEVELOPING A STRONG
SHOPPER MARKETING
PLAN MEANS:
1. BUILDING A STRATEGIC FRAMEWORK
2. DEVELOPING COMPELLING CONTENT
3. DEFINING WHAT WINNING MEANS FOR
BOTH THE PLATFORM AND THE PROGRAM
4. GETTING RETAIL ALIGNMENT AND BUY-IN

22. WANT TO GET A
RETAILER EXCITED
ABOUT YOUR SHOPPER
MARKETING PLANS?
PROVE CONSUMER
AND SHOPPER INSIGHT
ALIGNMENT. MAKE IT
WORK TO ACHIEVE A
RETAILER’S GOALS.

23. LOOK AT THE CONSUMER
BRIEF – WHO IS THE KEY
CONSUMER?
LOOK AT THE SHOPPER DATA–
WHAT DO WE KNOW ABOUT
THIS KEY CONSUMER?
DEVELOP THE INSIGHT THAT
TIES THE TWO TOGETHER.

24. THIS KEY INSIGHT THEN
ALLOWS THE CREATIVE
AGENCY TO DEVELOP THE
BIG IDEA FOR THE SHOPPER
MARKETING PLATFORM. AND
SHOPPER DOESN’T MEAN
HEADER CARDS. ENGAGE-
MENT WITH THE SHOPPER
CAN HAPPEN IN-HOME,
ONLINE AND IN-STORE.

25. AFTER THE PROGRAM
LAUNCHES, GO BACK TO
THE PLAN AND REMEMBER
WHAT SUCCESS WAS GOING
TO LOOK LIKE. MEASURE
BEHAVIOUR SHIFTS,
ATTITUDINAL SHIFTS
AND SALES LIFTS.

26. TAKE AWAY:
CONSUMER AND SHOPPER INSIGHTS MUST
BE LOOKED AT TOGETHER
THERE SHOULD BE A SHARED VISION BE-
TWEEN RETAILERS AND MANUFACTURERS
THE PLAN SHOULD OUTLINE ALIGNMENT ON
TARGET AND MEASURES
CREATIVE SHOULD ALLOW FOR CROSS
FUNCTION ENGAGEMENT

27. RIGHT NOW, THERE
ARE THREE LEVELS OF
SHOPPER MARKETING
GOING ON IN THE
MARKETPLACE.

28. LEVEL 1: FOUNDATION
THIS IS ESSENTIALLY A
PROMOTIONAL PROGRAM,
AND IT’S WHERE TOO MANY
RETAILERS AND MANUFAC-
TURERS ARE PLAYING NOW.

29. LEVEL 2: ADVANCED
AT THIS LEVEL, PROGRAMS
ARE BEING BUILT. THEY GO
BEYOND PRICE AND COUPONS
TO OFFER ONGOING VALUE
TO SHOPPERS.

30. LEVEL 3: LEADERSHIP
AT THIS LEVEL, LARGER
PLATFORMS ARE BEING BUILT,
THAT LEAD TO GREATER
SHOPPER LOYALTY. THEY
REqUIRE HIGHER RETAILER
COLLABORATION AND
GREATER REWARDS FOR
PARTICIPANTS.

31. ANDREW ASSAD
MICROSOFT CHIEF STORYTELLER.
THE NEW SHOPPER’S JOURNEY.

32. THE NEW SHOPPERS
JOURNEY:
IMPULSE RESEARCH HABIT

33. THE GROCERY IN-
DUSTRY BREAKS
DOWN LIKE THIS:
12% OF THE CATEGORY IS
SHOPPED BY RESEARCH
16% BY IMPULSE
72% BY HABIT

34. HOW DOES A
DIGITAL STRATEGY
FIT INTO THIS?
PEOPLE ARE USING
DIGITAL (MOBILE AND
DESKTOP) TO BOTH
RESEARCH PURCHASES
AND CONFIRM THEM.

35. DIGITAL PLAYS A ROLE IN
TRIGGERING A PURCHASE
25% OF THE TIME.
57% USE IT FOR RESEARCH
BEFORE THEY BUY, BUT
MANY USE IT FOR FOR
POST-TAILING – AFTER
THE ITEMS HAVE BEEN
PURCHASED.

36. HOME ELECTRONICS
PURCHASES LOOK LIKE THIS:
14% USED THEIR MOBILE
PHONE TO CONFIRM THEIR
PURCHASE IN STORE, PRIOR
TO BUYING.
11% THEN USED DIGITAL
AFTER BUYING A PRODUCT
TO UPDATED THEIR SOCIAL
MEDIA STATUS, LEAVE A
REVIEW, OR COMMENT ON
THEIR PURCHASE.

37. The Evolving Path to Purchase
CATHERINE ROE Catherine Roe
Google Head of CPG US
GOOGLE HEAD OF CPG US Chantal Rossi Badia
Google Head of CPG, Retail Canada
Feb 2011
Google Confidential and Proprietary 1
CHANTAL ROSSI BADIA
GOOGLE HEAD OF CPG, RETAIL CANADA
GOOGLE SHOWCASES DIGITAL
INTEGRATION IN THE PATH TO PURCHASE
DOWNLOAD THE FULL PRESENTATION AT:
HTTP://WWW.PHILTERRETAIL.COM/LEARN/DIGITAL-INTEGRATION-IN-THE-PATH-TO-PURCHASE

38. SHOPPERS ARE BEING INFLUENCED
DIFFERENTLY THAN THEY HAVE IN
THE PAST.
NOW 83% ARE MAKING A DECISION
BEFORE ENTERING THE STORE.
THERE IS 34% SMART PHONE
PENETRATION IN THE US AND THE
NUMBER WILL RISE TO 50% BY 2015.
55% HAVE A PROFILE ON SOCIAL
NETWORKS.
CANADIAN DATA:
86% RESEARCH PRODUCTS BEFORE
THEY PURCHASE.

39. TOP RESOURCES
FOR SHOPPERS:
INTERNET 81%
FLYERS 62%
IN-STORE 50%
TV 37%

40. MORE STATS:
COUPON SEARCHES UP 250% OVER
THE LAST YEAR.
197% INCREASE ON LOCAL SEARCHES.
187% GROWTH IN RECIPE SEARCHES.
REVIEW SITES INCREASED BY 97%.
THIS IS THE SECOND MOMENT OF
TRUTH THAT HAPPENS AFTER THE
BUYING DECISION.

41. CANADIAN MOMS RESEARCH
MANY PRODUCTS ONLINE:
76% NON PRESCRIPTION
70% HOME ITEMS
60% HYGIENE
60% GROCERY

42. THIS IS actually THE
YEAR OF MOBILE.
GLOBAL STAT SHOWS 4X
GROWTH FOR MOBILE IN THE
LAST YEAR.
1IN 3 MOBILE SEARCHES IS
LOCAL AND 59% OF THOSE
PEOPLE WENT INTO THE STORE.
79% ARE USING MOBILE TO
HELP THEM SHOP.

43. NOVEMBER 2010: 10%
OF SHOPPING SEARCH
qUERIES WERE DONE
VIA MOBILE SITE
YET, 79% OF RETAILERS
AND BRANDS DON’T
HAVE A MOBILE SITE.

44. KRISTEN NOSTRAND
P&G
STORE BACK: BRINGING BRANDS
TO LIFE THROUGH INTEGRATED
COMMUNICATIONS.

45. P&G HAS BEEN DEVELOPING
SHOPPER MARKETING PROGRAMS
FOR JUST UNDER 10 YEARS BUT
THEY STILL SEE THEMSELVES AS
BEING ON THE JOURNEY TO UNDER-
STANDING THE POTENTIAL OF THIS
ELEMENT OF MARKETING.

46. THE FIVE RULES P&G FOLLOWS:
1. THINK BIG IN-STORE
2. FANTASTIC JOURNEY
3. BRANDING BALANCE
4. VALUE FOR RETAIL PARTNERS
5. BRAND KARMA

47. THINK BIG IN-STORE:
THEY SEE BIG IDEAS STARTING
IN-STORE AND WORKING OUT FROM
THERE. THINGS THAT WERE ONCE
SEEN AS TACTICS ARE NOW DRIVING
LARGER PROGRAMS. THINK GAIN –
IT’S AN EXPERIENTIAL BRAND SO
THE PURCHASE SHOULD ALSO FEEL
THAT WAY.

48. FANTASTIC JOURNEY:
ENGAGE THE SHOPPER
THROUGHOUT ENTIRE PATH TO
PURCHASE AND UNDERSTAND
WHO HE OR SHE IS THROUGHOUT
THE JOURNEY.

49. BRAND BALANCE:
MANUFACTURERS MUST LEARN
TO STRIKE A BALANCE BETWEEN
ICONIC BRANDING AND SHOP-
ABILITY. EACH SHOULD ENHANCE
THE OTHER.

50. VALUE FOR RETAIL
PARTNERS:
THIS CAN HAPPEN WHEN:
• There is a sTraTegic fiT wiTh
RETAILERS
• when The reTailer knows
WHAT’S IN IT FOR THEM
• as manufacTurers innovaTe
• as we uncover new ways of
WORKING TOGETHER

51. BRAND KARMA:
BEING PROFITABLE AND DOING
GOOD AREN’T MUTUALLY
EXCLUSIVE. YOU ARE PROFIT-
ABLE BECAUSE YOU DO GOOD.

52. SHOPPER PRINCIPLES
TO FOLLOW:
MAKE IT SIMPLE.
GUIDE THE SHOPPER.
DELIGHT THEM EVERY STEP OF
THE WAY.

53. ULTIMATELY, WHAT WE HEARD
SEEMED TO REVOLVE AROUND A
COUPLE OF CONSISTENT THREADS.
PERHAPS MOST IMPORTANTLY,
THERE IS THE RELATIONSHIP
BETWEEN THE RETAILER AND
THE MANUFACTURER. WITHOUT
ALIGNING INTERESTS, SHOPPER
MARKETING CANNOT BE AS
EFFECTIVE IN CANADA AS IT IS IN
OTHER COUNTRIES. ONE OF THE
BIGGEST CHALLENGES IS CANADA’S
CONSOLIDATED RETAIL LANDSCAPE,
WHICH MAKES THE DEVELOPMENT
OF TRULY DIFFERENTIATING CAM-
PAIGNS MORE OF A CHALLENGE
THAN IN THE UNITED STATES.

54. THE INTEGRATION OF DIGITAL IS
ALSO A LINGERING qUESTION,
BUT THE IDEAS ARE FLOWING. AND
WHILE THE UNDERSTANDING OF
THE VIRTUES OF THE DISCIPLINE IS
BECOMING MORE MAINSTREAM,
IT’S CLEAR THAT THERE IS WORK TO
BE DONE TO MAKE THE PRACTICE
OF SHOPPER MARKETING MORE
SEAMLESSLY INTEGRATED INTO THE
MARKETING MIX.

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TORONTO, ONTARIO, M5A 1J4
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