1. Seize the
“Moments that Matter”
Industry Shopper Study
2015
PATH TO
PURCHASE

2. – 2 – 2015Industry Shopper Study
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TABLE OF CONTENTS
Overview............................................................................................3
Executive Summary.........................................................................6
Key Findings......................................................................................8
Shopper Marketing
Path to Purchase
Moments That Matter
Organizing for Success.................................................................23
Action Plan...................................................................................... 29

3. Industry Shopper Study2015
OVERVIEW

4. – 4 – 2015Industry Shopper Study
Who is Cadent Consulting Group?
Cadent Consulting Group, established by the founders and senior leadership team from
Cannondale Associates, is a marketing and sales management consulting firm serving
the Consumer Packaged Goods (CPG) and Retail industries. We offer a broad array of
information, insights, capabilities and expertise across the manufacturer, retailer and
shopper spectrums.
CADENT CONSULTING GROUP OVERVIEW
Spending
Productivity
3D Pricingsm
Industry
Benchmarking
Organization
Design & Training
Customer Segmentation/
Channel Development
Growth
Accelerators
GROWTH & OPTIMIZATION
Category
Leadership
Shopper
Insight
Spending Productivity
3D Pricingsm
Industry Benchmarking
Organization
Design & Training
Customer Segmentation/
Channel Development
Growth Accelerators
Category Leadership
Shopper Insight
Mission
Our mission at Cadent is to help our clients drive growth & profitability while optimizing
investment and organization productivity. We aim to translate insights into competitive
advantage for our clients.

5. – 5 – 2015Industry Shopper Study
Research Objectives/Methodology
Cadent Consulting Group’s management team, while at Cannondale Associates,
published the first Category Management/Leadership Industry Study in 1994 closely
followed by the Trade Promotion Industry Study in 1995 and the annual PoweRanking®
Study in 1997. Over twenty years of experience in category management, trade
promotion, shopper insight and industry best practices has deepened our knowledge
and expertise across manufacturers, retailers and shoppers. Inclusion of shopper
responses is a totally new component to our traditional manufacturer/retailer studies.
Enhancing manufacturer and retailer perspectives with an understanding of the real boss
– the shopper – adds significant insight to the study.
The objective of the Industry Shopper Study is to evaluate what really matters to convert
shoppers into buyers. Do shoppers follow a strict, regimented Path to Purchase for
routine, low-ring items? Or is it simply a question of a moment or moments that really
matter?
Why the Shopper?
In our previously released 2014 Marketing Spending Study we identified that marketing
spending represents nearly $225 billion in annual expenditures by CPG manufacturers,
or 20.6% of sales. We also noted that shopper marketing spending had doubled to 13.5%
of the overall marketing budget since 2012. Are these expenditures hitting the mark?
The specific goals of this research were to:
• Assess the fastest growing spending component, Shopper Marketing
• Understand the evolution of the Path to Purchase and its current state today
• Identify what really matters to shoppers, retailers and manufacturers
• Determine the optimal organizing principles given an integrated manufacturer/
retailer/consumer and shopper framework
Study Methodology
Over 1,000 manufacturer, retailer and shopper participants
were surveyed online with customized questionnaires.
Selected in-depth, 1-on-1 follow-up interviews were
completed to gain a better understanding of Shopper
Marketing spending and effectiveness.
CADENT CONSULTING GROUP OVERVIEW
Manufacturers Retailers
Shoppers

6. Industry Shopper Study2015
EXECUTIVE SUMMARY

7. – 7 – 2015Industry Shopper Study
• Shopper Marketing: This marketing spending component has more than doubled since 2012
from 6% to 13.5% of the total marketing budget. This equates to an increase of over $17 billion
specifically targeted at the shopper. We believe, however, that this may be the high water mark
as costs begin to outweigh benefits. While other marketing spending components such as
traditional advertising, consumer promotion, trade promotion and digital may also incorporate
the shopper, shopper marketing is specifically designed and focused on converting shoppers
into buyers.
• Path to Purchase Perspective: Shopper Marketing has grown in tandem with the Path to
Purchase construct. In its simplest state Path to Purchase incorporates the genesis of demand
and the evaluation of options including outlet, navigation of the store and purchase decision. It
has served as a useful model for understanding shoppers and guiding marketing investments.
Recent Path to Purchase models have increased in complexity by incorporating a more complete
purchase cycle and multiple feedback loops through digital.
• Path to Purchase Today: Cadent Consulting Group conducted research in 2014 incorporating
4,000+ discrete purchase experiences. We found that while the Path to Purchase is a useful
construct, it is a bit of a misnomer and typically it is only a point or moment along the cycle
that stimulates primary awareness and/or influence to buy. The concept of a complete Path to
Purchase cycle for an individual product purchase, while intriguing, rarely meshes with reality.
• Moments That Matter: This construct integrates the consumers, shoppers and customers.
• Consumers: What do they want? What is the need state or occasion that really matters?
• Shoppers: How do they shop? Where are the points of influence that affect awareness and purchase?
• Customers: At what retail channels or specific outlets do they seek insights or make a purchase?
• The Barbell: Our analysis of discrete points of influence during the purchase process indicates
a “barbell effect.” Over half of purchase awareness and influence is generated at home before
going to the store and approximately 30% is generated in the aisle or section. While there are
core differences by category and product, the actual moments that matter typically occur at
either end of the shopping trip: at home or in the aisle.
• Organizing for Success: Over the past two decades individual silos have been created
between traditional marketing and sales that have added cost and complexity. These include
shopper marketing, shopper insights, category management, trade marketing, sales planning,
customer marketing, trade promotion, digital, etc.
However, isn’t it all one marketing dollar that is being spent to influence both awareness and
purchase? Organizing for success means a more streamlined, focused organization targeting
the consumer/shopper and moments that matter. Internal communication within a single group
can be challenging; communication across multiple functional silos increases complexity
exponentially.
We recommend placing omni-channel/digital at the “head” of your organization and the
consumer/shopper at the “heart.”
• Action Steps: How can you best identify, segment, target and organize against the
moments that matter to convert shoppers into buyers in your category or your store? Seize
the “Moments that Matter.”
EXECUTIVE SUMMARY: “SHOPPER”

8. Industry Shopper Study2015
SHOPPER MARKETING

9. – 9 – 2015Industry Shopper Study
SHOPPER MARKETING SPENDING: 2012/2014
Shopper Marketing is targeted at converting shoppers into buyers. While not the only
budget component to address this goal, it is the one specifically dedicated to shopper/
buyer conversion. The Shopper Marketing budget has grown from 6.0% to 13.5% of all
marketing spending over the past two years or an increase of over $17 billion. While this
increase was not fully incremental and funds were often sourced from more traditional
marketing spending including trade promotion, advertising and consumer promotion, the
growth was unprecedented when tracked over 20 years. The goal of shopper marketing
is to convert shoppers into buyers based upon specific insights that target shoppers as
they progress along the Path to Purchase. Is this reality? Or is shopper marketing just a
new term for account-specific marketing, co-marketing, customer marketing or account
menus?
Ideally shopper marketing is based upon shopper insights to address needs/wants and
customized to convert shoppers into buyers. However, many shoppers simply don’t care
or don’t value the message.
MANUFACTURER – Marketing Spending by Type (% of Budget)
Shopper Marketing and Digital are the growth drivers in marketing spending.
Trade Promotion
49.8%
Trade Promotion
43.9%
Shopper
Marketing
6.0%
Shopper
Marketing
13.5%
Digital
7.1% Digital
12.5%
Traditional
Advertising
25.4%
Traditional
Advertising
22.2%
Traditional
Consumer
Promotion
11.7%
Traditional Consumer
Promotion
7.9%
2012 2014

10. – 10 – 2015Industry Shopper Study
SHOPPER MARKETING: TRUE GROWTH OR A
PROXY FOR TRADE PROMOTION?
MANUFACTURER – Shopper Marketing Spending by Vehicle (% of Budget)
Overall growth more than doubled, but there were only subtle changes
in the mix by vehicle.
RETAILER – How Effective is Manufacturer Shopper Marketing by Vehicle in
Generating Sales? (% Effective/Very Effective)
SHOPPER – How Effective is Shopper Marketing on Impacting
Shopper Awareness/Purchase decisions? (% Effective/Very Effective)
Retailers favor in-store events, retailer specific coupons and fixtures as the top
drivers in Shopper Marketing.
Shoppers tend to favor retailer coupons and merchandising.
Retailer Specific
Merchandising
Fixtures
35.3%
Retailer Specific
Merchandising
Fixtures
35.5%
Retailer Specific
Merchandising
Fixtures
Retailer Specific
Merchandising Fixtures
In-Store
Advertising
15.7%
In-Store
Advertising
15.9%
In-Store
Advertising
In-Store Advertising
Retailer
Specific
Coupons/Offers
20.6%
Retailer
Specific
Coupons/Offers
18.6%
Retailer Specific
Coupons/Offers
Retailer Specific
Coupons/Offers
In-Store
Events
14.2%
In-Store
Events
16.2%
In-Store Events
In-Store Events
Sampling/
Demos
8.3%
Sampling/
Demos
9.0%
Sampling/Demos
Sampling/Demos
Other
5.9%
Other
4.8%
89%
27.5% 24.4% 23.2%
16.0% 15.2% 12.2% 13.7% 12.8% 11.5%12.2%
89% 87%
78%
67%
Generating Awareness Influence on Purchase
2013 2014

11. – 11 – 2015Industry Shopper Study
Manufacturer Perspectives: Shifting In-Store
• “We need to get better at winning in-store. That’s what our shopper marketing is all about.”
• “We’re shifting from brand awareness to retail shelf presence in the competitive environment.”
• “We want to have more focus on in-store merchandising to capture buyers in the department
vs. out of store advertising.”
• “We’ve had to shift to more retailer-specific programs targeting the consumer who shops
in that specific retailer.”
• “We’re looking to test some in-store TV to gain additional displays.”
Retailer Perspectives: Customized
• “The more relevant these vehicles are to the shopper, the more effective they will be.”
• “Delivery of the right value proposition to the consumer determines the effectiveness.”
• “Retailer specific coupons can help drive loyalty to a particular retailer and if that retailer
captures information about the shopper who uses that coupon and then customizes future
offers for that shopper… that can be very effective for both the retailer and the manufacturer.”
• “We want manufacturer suppliers spending their money with us.”
• “Our focus is on our frequent shopper card.”
• “Sampling tends to be a one day event and can miss a lot of shoppers.”
Shopper Perspectives*: Product, Effective, Buy, Store, Coupons
*Note: Most common “words” in response to open ended question on Shopper Marketing effectiveness.
SHOPPER MARKETING: TRUE GROWTH OR A
PROXY FOR TRADE PROMOTION?
Shopper Marketing is all about winning in store. Manufacturers often just
pay lip service to brand equity building initiatives.
Shopper Marketing echoes common themes.
The focus is on delivering value in a challenging economy.
Customized and personalized retailer offers can help all parties.

12. Industry Shopper Study2015
PATH TO PURCHASE

13. – 13 – 2015Industry Shopper Study
PATH TO PURCHASE – 2005-2010
The term “Path to Purchase” conjures up just as many images as it does organizational
go-to-market approaches. In its simplest state the Path to Purchase incorporates the
genesis of demand and the evaluation of options including outlet, the navigation of the
store and the purchase decision. Alternative models focus on a Pre-Shop/Shop/Post-
Shop process flow or an Awareness/Influence/Purchase/Post-Purchase flow. Frequently
incorporated into the traditional Path to Purchase is the actual consumption, or usage,
component.
Initially most Path to Purchase constructs relied on a linear orientation. This assumed
that shoppers made rational and sequential decisions without significant behavior
modification or feedback loops. While simplistic, this was an effective way to embed the
idea that shopper insights and shopper marketing were all about converting shoppers
into buyers.
FROM HERE:
Linear, clear, focused…
Goal: Convert shoppers into buyers.
DEMAND
GENERATION
OUTLET
SELECTION
STORE
NAVIGATION
PRODUCT
PURCHASE

14. – 14 – 2015Industry Shopper Study
PATH TO PURCHASE EVOLUTION – 2011-2014
Digital has disrupted the original linear model and created a continuous feedback loop
with numerous interactive intermediations.
More recent Path to Purchase models have increased in complexity incorporating the
base Pre-Shop, Shop and Post-Shop components. The addition of digital/mobile now
ensures that insight is always within a keystroke. External influence factors including
medical (Pediatricians, Eye Care professionals), government (WIC), etc. have also added
significant complexity depending on the product category.
TO HERE:
Digitally enhanced feedback loop with continuous purchase cycle
Who actually shops for routine CPG items like this? Is it really this complex?
Consumption/
Usage
Demand
Generation
Outlet
Selection
Navigation
Item
Selection
• WHO – For Me, Family
• WHAT – Item/Occasion/Selection
• WHEN – Immediate Use/Stock-up
• Behavioral Impact
• Brand Advocacy
• Social Media
• WHERE – Store Drivers
• WHY – Trip Missions
• In Aisle
• At Section
• Shelf; Assortment;
Pricing/Promotion
• At Store
• In Store
• To Aisle
PATH TO
PURCHASE

15. – 15 – 2015Industry Shopper Study
THE ROLE OF DIGITAL/MOBILE
Digital/Mobile has now totally surrounded the Path to Purchase and Shopper Marketing
can engage shoppers whenever and wherever they are most ready to buy.
Digital/Mobile has changed the game in terms of targeting shoppers, identifying what they
want and how retailers meet their needs. Digital intermediation can impact anywhere in
the demand cycle and its power is in its ability to transcend venues via mobile. Shoppers
can evaluate online (webrooming) or in store (showrooming) and purchase anywhere.
The digital components evaluated in this study include: websites, social media, search
engine optimization and online coupons, among others. Digital intermediation often
requires some shopper effort, but ultimately reduces sources of friction for the buyer. Better
information, better prices and improved selection are all benefits of digital intermediation.
Digital/Mobile has added another dimension to the Path to Purchase.
DIGITAL/MOBILE
“Changing the Game”
RETAILER
Meet Shopper Needs
CONSUMER
Who They Are
SHOPPER
What They Want

16. Industry Shopper Study2015
MOMENTS THAT MATTER

17. – 17 – 2015Industry Shopper Study
MOMENTS THAT MATTER
The Moments that Matter construct integrates a specific understanding of the key points of
awareness and influence. The three key factors are:
• Consumers: What do they want? What is the need state or occasion that really matters?
• Shoppers: How do they shop? Where are the points of influence that affect awareness
and purchase?
• Customers: At what retail channels or specific outlets do they seek insight or make
a purchase?
Identify the Moments that really Matter for your category/brand.
SHOPPER SEGMENTSHow They ShopPoint of Influence
What They Want
Occasion
CONSUMER SEGMENTS
WhereTheyGo
CUSTOMERS
Who?
How?
What?
When?
Where?
Why?

18. – 18 – 2015Industry Shopper Study
MOMENTS THAT MATTER:
SEGMENT CONSUMERS/SHOPPERS/CUSTOMERS
Let’s take a look at hypothetical consumer segments and how they might think about
food, as an example, as well as shopper and retailer implications.
How can you understand how to better target your segments?
Example
“I am what
I eat.”
“Fast and
frequent.”
SHOPPER SEGMENTS
What They Want
Occasion
CONSUMER SEGMENTS
WhereTheyGo
CUSTOMERS
How They ShopPoint of Influence
Consumer
Quantity over quality
• Filling
• Tastes great
• Satisfies me
Shopper
• Center store loyal
• Big sale buyer
Retailer
• Value outlet focused
Consumer
Health & wellness
• No fat
• High nutrition/protein
• Probiotics
Shopper
• Influenced by facts –
what I read
Retailer
• Natural food stores
• Retailer organic sections

19. – 19 – 2015Industry Shopper Study
MOMENTS THAT MATTER:
UNDERSTANDING THE SHOPPER
Our shopper-based approach to Moments that Matter integrated 30+ demand stimuli
with distinct venue and timing considerations as well as the impact of awareness and
influence on purchase.
These factors represent the “what,” the specific demand stimuli, touchpoints or
“Moments that Matter.” Other factors including who, when, where, why and how are also
considered. With marketing touchpoints growing exponentially – fueled by Shopper
Marketing and Digital offerings – there is truly a need for manufacturers and retailers to
“identify the controlling elements.”
Below are the Points of Influence that were considered. While by no means exhaustive,
we believe they are representative of the major options available to most manufacturers
and retailers today.
Advertising
Consumer
Promotion
Trade
Promotion
Digital
Shopper
Marketing
MANUFACTURER
• Manufacturer
television
commercial
• Manufacturer
magazine
advertisement
• Manufacturer
radio
advertisement
• Newspaper insert
coupon
• Coupon for the
product mailed to
your home
• Coupon for the
product received
in-store
• Both store flyer/
circular and
product display
• Store flyer/circular
received at home
or in the store
• Product display
• Sale/price
reduction at
the shelf
• Manufacturer
mentions in
internet search
results
• Manufacturer
banner ads
• Manufacturer ads
in social media
• Manufacturer
website
• Emails from
manufacturer
• Manufacturer
online coupons
• Manufacturer
mobile app
RETAILER
• Retailer television
commercial
• Retailer magazine
advertisement
• Retailer radio
advertisement
• Coupon for the
product mailed to
your home
• Coupon for the
product received
in-store
• Retailer mentions
in internet search
results
• Retailer banner
ads
• Retailer ads in
social media
• Retailer website
• Emails from
retailer
• Retailer online
coupons
• Retailer mobile
app
• In-store events
• Retailer-specific
section signage
• Product sampling
or demonstration
• Retailer-specific
coupons/offers
• Retailer
customized
advertising

20. – 20 – 2015Industry Shopper Study
MOMENTS THAT MATTER: TARGET COMMON
SHOPPER MOMENTS ON THE PURCHASE CYCLE
Our research integrated over 4,000 discrete shopping occasions and helped identify
the most common Moments that Matter. The results were highly illuminating. Path to
Purchase is a misnomer and Moments that Matter is more appropriate.
These are the most common Moments that Matter on the purchase cycle. Most of these
“Moments” are simply one point in time, while a few are sequentially linked. While these
are the most common, we should note that there is significant variability by category,
messaging, timing and availability of marketing vehicles.
All media types impact purchase decisions from online to TV to trade promotion.
Seize the “Moments that Matter” for your key consumer, shopper and customer segments.
Most Common Moments That Matter on the Purchase Cycle
At Home Before Going to Store Navigation in Store At Section
1 A sale/price reduction at the shelf
2 A newspaper insert coupon
3 Sale/price reduction near the shelf
4 Manufacturer television commercial
5
Store flyer/circular received at
home
6 Manufacturer online coupons
7 Product display
8 Product display
9
Product display and price reduction
at the shelf
10 Newspaper insert coupon
Store flyer/circular received at
home or in-store
11
Coupon for the product mailed to
your home and a newspaper insert
coupon
12
Coupon for the product received
in-store
13
Coupon for the product mailed to
your home
Store flyer/circular received at
home or in the store
14 Manufacturer online coupons

21. – 21 – 2015Industry Shopper Study
MOMENTS THAT MATTER: TARGET THE RIGHT
SHOPPER POINTS OF INFLUENCE
While there are many vehicles, timing and venue considerations, we have conducted an
analysis of the different demand stimuli on a quadrant of “Aware” and “Care,” with “Care”
representing influence on purchase. Those marketing touchpoints in the upper right
quadrant are the ones that shoppers are more aware of and influenced by. While this is
not true for every category or marketing objective, this provides a general direction and
illustrates the importance of Trade Promotion and Consumer Promotion, as well as the
growing influence of Digital and Shopper Marketing.
Of note, the Digital factors have presence across all four quadrants but 65% of the Digital
touchpoints were in the “Not Aware and Don’t Care” quadrant. This may be due to the
immense fragmentation in digital media or lower overall effectiveness.
Indexed Factors
150
– 50 100 150 200 250
140
130
120
110
100
90
80
70
60
50
Manufacturer online coupons
Coupon for the product
received in-store
Sale/price
reduction at
the shelf
Newspaper insert
coupon
Store flyer/circular received
at home or in the store
Retailer-specific
coupons/offers
Both a store flyer/circular
and a product display
Coupon for the product
mailed to your home
Retailer online
coupons
Emails from retailer
Retailer-specific section signage
Retailer customized advertising
Product sampling or demonstrations
Manufacturer radio
advertisement
Emails from manufacturer
Manufacturer
mobile app
Retailer radio advertisement
Retailer ads in social media
Manufacturer ads in social media
Manufacturer banner ads
Retailer banner ads
Manufacturer magazine advertisement
Retailer mentions in Internet
search results
Manufacturer mentions in
Internet search results Retailer mobile app
Retailer magazine
advertisement
Retailer television commercial
Retailer website
Manufacturer television commercial
Product display
Manufacturer website
In-store events
Aware But Don’t Care
Not Aware and Don’t Care
Aware and Care (Influenced By)
Not Aware But Care
Aware
Care

22. – 22 – 2015Industry Shopper Study
MOMENTS THAT MATTER: LEVERAGE THE
BARBELL EFFECT
Further analysis of these 4,000 shopping occasions and key Moments indicates that
there is a significant “barbell” in the purchase decision process. At-home before going to
the store communication has direct awareness and influence on 53% of purchases, while
in-aisle/section influences 29% of purchases.
We have segregated the key awareness and influence factors on purchase into two tiers
indicating relative importance. Before going to the store, all five marketing types play a
role: Consumer Promotion, Advertising, Trade Promotion, Digital and Shopper Marketing.
In the store, the primary emphasis is on Trade Promotion (Pricing and Displays) with
Shopper Marketing (Retailer Signage) as a supplement. There were no singular
awareness/influence factors occurring either at the store before entering or in-store
before entering the aisle.
Focus on “Home” and “Aisle/Section” with the right marketing touchpoints
to stimulate awareness/purchase.
Points of Influence
% Awareness/
Influence on
Purchase
53% 8% 10% 17% 12%
Key Factors:
TIER 1
• FSI
• Store Flyer/
Circular
• TV Ad
• Direct Mail
Coupon
• Retailer Specific
Coupon
• Retailer Online
Coupon
– –
• Sale/Price
Reduction
• Display
• Sale/Price
Reduction
• Display
TIER 2
• Retailer
Website
• Manufacturer
Online Coupon
• Retailer Email
– –
• Retailer
Signage
–
ALL SPENDING
TYPES
TRADE PROMOTION/
SHOPPER MARKETING
At Home
Before Going
to Store
At Store
Before
Entering
In Store
Before
Entering Aisle
In
Aisle
At
Section
PRE-SHOP SHOP

23. Industry Shopper Study2015
ORGANIZING FOR SUCCESS

24. – 24 – 2015Industry Shopper Study
FUNCTIONAL SILOS ADD COMPLEXITY
AND COSTS
Is your organization structured to capture vital shopper moments? Most organizations are
functionally siloed and ostensibly address the Path to Purchase through shopper insight
and shopper marketing.
The current environment, however, is one where investor pressures are forcing
companies to cut costs to the functional bone with zero-based budgets.
We believe identifying, segmenting and targeting Moments that Matter with the right
organization structure is where winning companies will evolve. For example, solutions
can be focused against: What – the occasion, Who – the target, Where – retailer/other
venue, and When – at what moment.
• Organization complexity encumbers communication and
decision making.
“The single biggest problem in communication is the illusion
that it has taken place.” – George Bernard Shaw
• Understanding what really works across the marketing and sales
spectrum is much more feasible when minimizing functional and
communication silos and bottlenecks. The marketing budget should
be thought of as one fund, not separate buckets. Integrating the
organization can optimize your marketing dollars and better target
the Moments that Matter.
Organize to address the Moments that Matter.
TODAY
SITUATION
SOLUTIONS
President
Marketing Sales
Digital
Shopper
Marketing
Consumer Retailer Shopper
Consumer
Research
Shopper
Insight
Category
Manage-
ment
Trade
Promotion
Planning

25. – 25 – 2015Industry Shopper Study
ORGANIZATIONS ARE UNDER PRESSURE
OVERALL ORGANIZATION PERSPECTIVES
“Our growth has flatlined; do I eliminate staff or restructure?”
– Mid-sized Food Manufacturer
“It’s an example of Parkinson’s Law. We add more functions and staff; we add more
work, complexity and challenges.”
– Beverage Company
SHOPPER MARKETING PERSPECTIVES
“We are cutting back our department and focusing more on national promotions. They
are easier to execute.”
– Large Center Store Manufacturer
“Our plan is to refocus the Shopper Marketing department away from brick & mortar to
online and digital.”
– HBC Manufacturer
“We are redeploying and targeting retailers with specific solutions which could include
trade promotion, shopper marketing and digital.”
– Major Total Store Food Manufacturer
It’s all marketing…so what’s the right organization?

26. – 26 – 2015Industry Shopper Study
INTEGRATED MARKETING ORGANIZATION
An integrated marketing organization must begin and end with the consumer/shopper
while reflecting the needs of manufacturers and retailers.
Internal functional groups to complement marketing and sales should be better integrated.
Consumer/Shopper-Centric Organization
Sales/Marketing
Integrated Marketing
Retailer
Consumer/
Shopper

27. – 27 – 2015Industry Shopper Study
ORGANIZATION VISION: DIGITAL “HEAD” AND
CONSUMER/SHOPPER “HEART”
• Consumer/shopper-centric “heart”
• Informed by a digital/omni-channel “head”
Break down hierarchical structures and create a consumer/shopper-centric organization.
DIGITAL/
OMNI-CHANNEL
CONSUMER/
SHOPPER
PRESIDENT
SALES
CATEGORY
LEADERSHIP
MARKETING
INSIGHTS
• Revenue
management
• Trade promotion
• Net sales
• Online
• Mobile
• Integration
• Demand
generation
• Needs satisfaction
• 4Ps
• P&L
• Category
management
• Shopper
marketing
• Consumer
• Shopper
• Category

28. – 28 – 2015Industry Shopper Study
ORGANIZATION “SWEET SPOT” TARGET
An optimal organization must target and activate against the manufacturer/retailer/
shopper “Sweet Spot” with minimal friction. Validate your “Sweet Spot” or common
ground across the who, what, why, when, where and how questions.
Ask the questions as your shoppers/consumers and retailers would.
MANUFACTURER
RETAILER
SHOPPER/CONSUMER
SWEET
SPOT
WHO: Everyone – all
potential buyers
WHAT: Reason to buy brand
WHY: Build our brand
WHEN: Any time
WHERE: Anywhere
HOW: Manufacturer
controlled levers
WHO: Customized for me
WHAT: Relevant to me
WHY: Save me money;
solve my problems
WHEN: I have a need or want
WHERE: Everywhere I am
HOW: Levers I control
WHO: Everyone – all
my shoppers
WHAT: Reason to shop/buy
at my store
WHY: Build my category/store
WHEN: In my store –
ready to buy
WHERE: Within my sphere
of influence
HOW: In-store/retail levers
Target

29. Industry Shopper Study2015
ACTION PLAN

30. – 30 – 2015Industry Shopper Study
ACTION PLAN: SEIZE THE
“MOMENTS THAT MATTER”
1. Identify: The Moments that Matter.
• Consumers: Need states or occasions
• Shoppers: Points of influence which will vary by category, time of
year, etc.
• Channels/Retailers: Why and where do shoppers go for both insight
and purchase?
2. Segment for Success: Not all Moments are
created equal for your brand and category.
• Identify brand strengths/opportunities
• Identify category strengths/opportunities
• View through shopper/retailer lenses
and quantify
3. Target: It’s all marketing. Target your marketing
dollars not along a regimented Path to Purchase that few shoppers
actually travel, but against the Moments that Matter to drive increased
success for your organization.
Identify:
• Consumers: What are those need states and
occasions by category, by time of year?
• Shoppers: What points of influence really matter
and how can you best target the shopper?
• Channels/Retailers: Why and when are
they chosen?
4. Organize to Implement: Reorient your organization
and marketing focus against Moments that Matter.
• Develop an outside-in structure oriented with
the shopper/consumer at the center
• Streamline for success with an integrated
marketing organization
• Place digital/omni-channel at the “head” of
your organization and the consumer/shopper
at the “heart”
DIGITAL/
OMNI-CHANNEL
CONSUMER/
SHOPPER
PRESIDENT
SALES
CATEGORY
LEADERSHIP
MARKETING
INSIGHTS
• Revenue
management
• Trade promotion
• Net sales
• Online
• Mobile
• Integration
• Demand
generation
• Needs satisfaction
• 4Ps
• P&L
• Category
management
• Shopper
marketing
• Consumer
• Shopper
• Category
SHOPPER SEGMENTSHow They ShopPoint of Influence
What They Want
Occasion
CONSUMER SEGMENTS
WhereTheyGo
CUSTOMERS