4. ↑ Retail design
We know that all of ↑ Retail learning labs
↑ Shopper marketing
this is GOING ↑ In-store media
↑ Selling in and executing
UP ↑ Shopper insights
↑ Retailer intelligence
UP ↑ ROI/analytics
↑ Digital apps
UP ↑ Geo-locating
↑ Augmented reality
5. CPG companies spent about $38 billion on Shopper Marketing
in 2010 (In-Store Marketing Institute)
Between 15% and 20% of CPG marketing dollars are
earmarked for Shopper Marketing
83% of CPG companies will increase shopper marketing
budgets
55% will boost spending 15% or more by 2013 (Booz & Co.)
6. And all of this is ↑ Smart phones
↑ Tablets
GOING ↑ Apps
↑ Connectivity
UP ↑ Access to data
↑ New services
UP ↑ New media
↑ New measures
UP
8. Here’s Why:
The 10 Ways
Digital Changes Everything
8
9. 1
There is no more
‘IMPULSE’…
every purchase is considered
9
10. P&G CMO Marc Jim Lecinski of Google,
Pritchard calls for
refers to a "zero
thinking “store moment of truth"
back”, meaning when consumers
that if it does not BUT do research and
work at the make decisions
store, it’s a miss before shopping
(FMOT)
10
11. of shoppers conduct
research before they
shop, typically for an
hour or more.
Source: GMA, Booz & Company, and SheSpeaks Shopper Marketing 3.0 Survey; n = 3,600 respondents
Source: Google ‘Path to Purchase Presentation’
12. More Purchase Decisions Being Influenced Pre-Store
Where Purchase Decisions Are Made, % of Shoppers
100%
90%
80%
70% 60%
75%
60%
83%
50%
40%
30%
20% 40%
10% 25%
17%
0%
2007 2008 2009
In-Store Before Entering Store
Source: Longitudinal Economic Study Series, IRI Attitude Link, n = 1,000+ shoppers. CPG Purchase Decisions. IRI, 2009.
Source: Google ‘Path to Purchase Presentation’
13. “Kraft recognized that shoppers were going
online prior to their trip to the store to find
information and that we needed to leverage
The digital space as part of a robust 360
degree marketing plan.”
- Microsites
- Online coupons
- Recipes
- Online promotions
- Shopping lists
- QR codes
As the prevalence of smartphones grows, more tools will
become available to connect with the shopper in the pre-trip,
in-store and post-purchase phases. The future opportunities
to market in the moment through digital will be
transformational.
emarketer
13
14. 2
There is no more
‘pushing’ products
at shoppers:
“I’ll get what I need
when I need it”
14
19. 90% 70% 84%
of consumers completely or claim that
trust somewhat trust the online customer
recommendations recommendations of evaluations influence
from people they consumer opinions their purchase
know posted online decisions
19
20. Online Research has Changed the Game
+188%
Reviews
Source: Google ‘Path to Purchase Presentation’
20
30. Retailer Practices =
Problematic for Brands
Clean store
Proprietary programs
Contracted end aisle
display space
Private label
No sharing of loyalty
card data
36. This UK service lets you upload and compare the cost of your weekly shopping list at four
grocery stores, ultimately delivering which retailer offers the best deals overall.
48. Shopping Experiences are Enabled
CATEGORIES:
Retailer specific: amazon, Best Buy
Media partners: Elle, Mens Health
Local: Vancouver, malls
Social: facebook, myshopanion
Offers: couponsherpa
Scanners: redlaser, barcode hero
Search: shopsavvy, google shopper
Geo: aisle411, fastmall
Lists: groceryIQ
Reward: shopkick
48
49. 9
Campaigns don’t work with an
Always-On Community
50. “The Purchase Funnel has been
replace by the Decision
Ecosystem, a cloud of
information from all sources,
available anytime”
(McKinsey, “The Consumer Decision Journey,” 2009)
53. Her Mindset – over time, in many
places – shapes her shopping trip
“While most grocery shoppers shop for their
food items around once a week, consumers
decide what to eat, drink, or serve many times
a day. It’s these daily activities, and the needs
behind them, that drive their purchase
decisions.”
– Ann Hanson, NPD Group
54. eBay sold over $2B
via smartphones in 2010,
triple 2009
54
55. 10
It’s Not About The Store Anymore
Get On The Shopping List!
56. of U.S. households
prepare a written or
digital grocery shopping
list prior to shopping
Source: Survey of 3,600 shoppers for Shopper Marketing 3.0 study conducted Fall 2009 by Booz & Company
In collaboration with Grocery Manufacturers Association
56
Source: Google ‘Path to Purchase Presentation’
59. BENEFITS • Reach shoppers who don’t
consume traditional media
of the revolution: • Tailor/target offers – more
digital shopping relevance, less waste
• Real-time research and feedback
tools– • More helpful, less disruptive
• Easier to measure
• Increase engagement
• Facilitate follow-up - - real loyalty
• Influence decisions upstream
(before the store)
59
71. TOOLS
• SMS and MMS
• Downloadable Apps
• Mobile Websites
• Check-in Features
• Barcode Scanners
• Augmented Reality
• Digital Out of Home
• Payment Peripherals
71
72. 5
Digital or analog,
the ‘journey’ is the same
72
86. The Top 10 Reasons for a Digitally-Enabled 1= strongly diasagree
5= strongly agree
Shopper Marketing Revolution
1. No more impulse: Every decision is informed
2. No more push: “I’ll get it when I need it”
3. No more image: “Just the facts”
4. No more loyalty: Heightened ‘deal’ sensitivity
5. No more collaboration: Brands and retailers chasing consumers
6. No more ‘national’: It’s all about local interests
7. No more audience : It’s all about the community/conversation
8. No more merchandising: It’s all about navigating
9. No more campaigns: I’m “always on”
10. No more in-store: Get on the shopping list 86
88. 1= strongly diasagree
The Top 10 Reasons Why It’s Not Really a Revolution 5= strongly agree
1. Already been tried: webvan, pets.com etc etc
2. Just a better way to distribute coupons
3. Just another media channel
4. Way too complex for the casual user
5. The journey is the same: Awareness, intention, consideration etc etc
6. It’s mostly “novelty” (Angry Birds)
7. Faces HUGE privacy issues
8. Just direct marketing
9. It’s always been about “insights” and still is
10. Mass still works 88
89. #1: Is This A Revolution?
TOTAL from the Yes/Revolution =
minus
TOTAL from the No/Not = =
Systemic Change Evolve/Adapt
(50 pts) (-50 pts)
89
90. #2: What Is Your Position?
Store/Retailer-Dependent: Less Dependent:
- Not necessarily ‘hostage’ - More brand strength
- Merchandising does drive sales - Pull works
- Cannot go direct - Able to go direct
90
91. #3: What Is Your Approach?
DIFFERENTIATING: OPTIMIZING:
- Investing - Spending
- Discriminating - In-store performance
- Experimenting - Measurable ROI
- Aligning - Category mgmt
- Messaging - Transactions
- Equity-building - Data arms race
- Insights/solutions - Channel mgmt
- Trade relations
91
92. SYSTEMIC
CHANGE
DIFFERENTIATE OPTIMIZE
company
landscape
EVOLUTIONARY
92
93. What Is Your Action Plan?
1. Disrupter: changing the game, reinventing the rules, creating the future
2. Leader: knowledgeable about all of the changes, embarking on many, a clear strategy of
experimentation, skill-building, tool-building, investing
3. Focused: fast follower, jumping on the proven tactics, tactics form the strategies, responding to
outside requests
4. Planning/preparing: getting organized, allocating budget, beginning new work
93
94. What Is Your Action Plan?
Possible Ac5on Area Op5mize/Differen5ate?
Push/pull
Rate of Change: Transparency
Value added offers
Consumer direct
Retail(er) Dependency: Customize/localize
Community‐building
Conversa=onal
List management influence
Position:
ecommerce
1. Disrupter Deal/offer distribu=on
2. Leader Shopper‐scripted messaging
3. Focused Journey refinement
4. Planning/preparing AEen=on to privacy
Insights
Other….
94