Technology is dramatically changing how consumers shop and purchase products in several key ways: 1. The path to purchase is becoming more complex as shoppers conduct online research from multiple sources before making a purchase across various channels both online and in-store. 2. New channels are emerging for shoppers to research and buy products, and the roles of traditional retail channels are evolving, requiring brands to have an integrated marketing strategy across channels. 3. Shoppers are using an increasing variety of technologies while shopping in-store, like smartphones, that allow them to research products and find deals, changing the in-store shopping environment. 4. These changes require brands to have more customized and flexible marketing approaches that can

1. Marketing to Shoppers
How shoppers use technology and the
implications to cosmetics brand marketing
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2. We have worked with over 50 companies, of which
10 are in the top 25 consumer goods manufacturers
globally
We help consumer goods companies…
Identify massive growth opportunities
Identify huge savings in trade spend and marketing
Configure teams to be most effective
Develop people to be able to make a difference...

3. Internet usage is growing fast across Asia
27.5% of the population of Asia is online (44% of the world‟s internet users)
More than doubled in the last five years
Asia Top Internet Countries
June 30, 2012
China
538.0
India
137.0
Japan
101.2
Indonesia
55.0
Korea, South
40.3
Philippines
33.6
Vietnam
31.0
Pakistan
29.1
Thailand
20.1
Malaysia
17.7
0
100
200
300
Millions of Users
Source : Internet World Stats –http://www.internetworldstats.com/stats3.htm
Updated June 30, 2012
Copyright : 2013, Miniwatts Marketing Group
400
500
600

4. Globally, large quantities of internet users use it to shop
21% of global beauty consumers
claim to use online communities
“all or most of the time” to
make product choice
19% routinely use social media
platforms and expert blogs
What does this mean for shoppers, and what are the
implications for brand marketing?
Source: in-cosmtcis Winning the Zero Moment of Truth (ZMOT), February 2013

5. China is now the world‟s biggest Beauty & Personal
Care online market
Millions
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$South Korea United Kingdom
2007
2008
France
2009
Japan
2010
North America
2011
China
2012
So what are the implications of this rapid technological
adoption on brand marketing?
Source: Euromonitor 2013

6. Consumer goods companies typically have to manage
three elements to achieve marketing success
Create desire
to consume
the brand
Maximise the
opportunity to
purchase the
brand
Motivate
retailers to
support the
brand

7. Effectively managing brands is about
connecting what we are doing with
consumers with what happens in stores
Consumer
priorities
Shopper
behavior
Channel
priorities
In–store
marketing
Investment
in customers

8. How does technology affect our marketing?
Consumers
have different
brand
relationships
Shopper
path to
purchase is
changing
New
channels
Different
channel roles
New
environments
within which
to influence
shopper
behavior
New
customers
New
investment
requirements

9. The consumer communication world is fragmented;
and is fragmenting further at unprecedented rates
Global advertising spend by category
CAGR
(2006-2010)
450
Mobile advertising
300
250
100
50
20
Interactive TV promotions
19
19
20
Global cable/multichannel
Traditional ad
formats 77.6%
5
Global broadcast
200
150
Global internet
U.S. product placement
350
New ad
formats 22.4%
41
In-game advertising
400
5
U.S.MSO advertising
Global radio and outdoor
Global magazine
Global newspaper
U.S.local station
5
5
4
2
2
0
As media continues to fragment, reaching consumers is
increasingly more expensive
Source: Morgan Stanley

10. Brand conversations increasingly take place in the
absence of the brand owner

11. Bangkok and Jakarta are Facebook‟s busiest cities
List of cities on Facebook
#
City
Country
Users
Pen.
1.
Bangkok
Thailand
8682940
104.74%
2.
Jakarta
Indonesia
7434580
34.10%
3.
Istanbul
Turkey
7066700
62.98%
4.
London
United Kingdom
6139180
73.79%
5.
Bogota
Colombia
6112120
82.15%
6.
Sao Paulo
Brazil
5718220
29.88%
7.
Mexico city
Mexico
4294820
23.30%
8.
Santiago
Chile
4129700
73.35%
9.
Mumbai
India
3700460
18.95%
Buenos Aires
Argentina
3533840
28.52%
10.
Source: socialbakers, Sep2012

12. How does technology affect our shoppers?
Consumers
have different
brand
relationships
Shopper
path to
purchase is
changing
New
channels
Different
channel roles
New
environments
within which
to influence
shopper
behavior
New
customers
New
investment
requirements

13. The journey from consumer desire to a sale is getting
more complicated
Source used by media type
84%
83%
82%
81%
80%
79%
78%
77%
76%
75%
74%
Traditional media Internet sources
Source: Google inc. 2011
In-store
marketing

14. They use a plethora of different sites
What kind of websites do you purchase from most frequently when shopping online?
Online-Only Websites
Asia-Pacific
31%
Middle East/Africa
40%
Asia-Pacific
38%
39%
Europe
Latin America
Brick & Mortar store websites
Latin America
24%
21%
Middle East/Africa
40%
49%
37%
34%
Global Average
Asia-Pacific
31%
Latin America
Middle East/Africa
North America
Global Average
40%
40%
North America
Catalog/Phone-Order websites
Latin America
24%
21%
Middle East/Africa
49%
37%
34%
Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010
49%
37%
34%
31%
North America
Global Average
40%
38%
39%
Europe
19%
20%
40%
24%
21%
Asia-Pacific
38%
39%
Europe
19%
20%
Global Average
Multiple online store websites
40%
38%
39%
Europe
19%
20%
North America
31%
19%
20%
24%
21%
40%
37%
34%
49%

15. Mobile is growing rapidly
9,000
Total
Asia-Pacific
8,000
+7%
7,084
7,000
7,670
6,647
6,073
6,000
5,377
3435
5,000
+20%
3,366
3,000
2,730
2,196
2,000
1,000
824
(38%)
2005
2889
3,022
1990
2,588
2,116
1,727
1,064
(39%)
2006
3,374
2313
1373
1,376
(41%)
2007
Source: GSMA Asia Pacific Mobile Observatory 2011
3655
3051
2540
1666
3560
3273
4,656
4,039
4,000
-
7,419
(51%)
3,651
(52%)
3,860
(52%)
4,014
(52%)
(50%)
(48%)
(45%)
(43%)
2008
2009
2010
2011
2012
2013
2014
2015

16. Social media has an enormous impact on the way
people make decisions about buying
I Use Social Media Sites to Make Purchase Decisions
100
90
19
23
80
31
36
38
48
70
50
50
40
52
54
56
60
82
83
85
50
40
81
77
30
69
64
62
52
20
50
50
60
48
46
44
10
18
17
15
AU
JP
NZ
0
VN
CH
TH
PH
ID
MY
HK
Yes
Source: Nielsen Global online Survey-April 2010
IN
No
TW
KO
SG
AP
Avg

17. Digital usage in shopping will increase :
70%+shopper want to shop with digital engagement
in the future
% of shoppers accessing sources „A lot‟ or „Somewhat‟ in Future
Direct Mail
87
Newsapaper
86
In-store
86
Store website using computer
75
Email from retailers
72
Store website using tablet
59
Social media site
37
Smart phone or mobile phone
10% today
Millennials Index = 176
31
In-store kiosks
43
Televisions in the store
42
Print
Source: Nielsen Digital Circulars Survey Q2 2011
60% today
Millennials Index = 114
Digital
Other

18. The path to purchase is affected dramatically
Thinking about household grocery shopping, which of the following activities have
you done in last month on any online connected device?
Global Average
Asia-Pacific
Conduct research online (for example, checked
price, read a consumer review)
Purchase a product online
Read a grocery retailer‟s circular/flyer online
Look for deals online
Look for coupons from an online coupon site
Compare prices for a grocery product online
Look up product information online
Browse a manufacturer‟s website for a grocery category
Provide feedback about a grocery category through
social media (wrote a review, blogged)
Use a digital shopping list
0
10
20
30
40
50
60
70
Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012

19. It is becoming increasingly hard to separate the
consumer and the shopper world
Consideration of the shopper
used to be limited to the in-store
world.
Shopper activities now clearly
take place outside that
environment.
We must still consider the
shopper and the consumer as
different targets, but we cannot
separate the two “worlds”
The consumer and shopper
marketing activities need to be
developed separately but
integrated completely
Consumer and shopper marketing efforts must be
intergrated

20. Shoppers are becoming increasingly heterogeneous
Their shopping journeys
are complex and varied
Their „pre-store‟
experience of the category
and brand is highly varied.
We need to carefully map
what is required at each
step of the purchase
journey
Different shoppers will
need different things at
each point: our
approaches must be
flexible and responsive
“One size fits all” will not work (not everyone is digital)

21. How does technology affect our brands?
Consumers
have different
brand
relationships
Shopper
path to
purchase is
changing
New
channels
Different
channel roles
New
environments
within which
to influence
shopper
behavior
New
customers
New
investment
requirements

22. The most obvious statement is that there will be new
channels: new places for shoppers to shop and buy

23. Everywhere is a potential store….

24. What is clear is that the roles that channels play may
also change
60% expect multichannel play from all retailers
41% would want to be recognized by the smartphone as they enter a
store
69% of Chinese respondents say they purchase more online per
transaction than in a normal store
80% in developing markets prefer browsing and purchasing online
56% would pay more in a bricks/mortar store if they had browsed
online first
51% see showrooming as the norm by 2020
Channel roles will change and continue to evolve
Source: Nielsen How Digital Influences How We shop Around The world, August 2012

25. Some manufacturers/distributors are using the
internet to create their own channels
Relationships with existing customers need to be considered

26. In-store is changing rapidly…
Consumption
opportunities
Shopper
path to
purchase is
changing
New
channels
Different
channel roles
New
environments
within which
to influence
shopper
behavior
New
customers
New
investment
requirements

27. While shoppers continue to interact with traditional
forms of marketing, many are also digitally engaged
while shopping
Over 66 percent of smartphone owners use their phone to
help them shop while in a store
Women are using their smartphones to get style advice and
feedback, search for product information, and look for special
offers and discounts while they shop
Source: Business Insider How Mobile Marketers Can Use Perfect Timing To Win Droves Of Female Customers, July 2013

28. There is still a need to develop an “in-store”
marketing mix to drive changes in shopping behavior
Availability
Shopping
behavior
Communication
Offer
The “rules of engagement” online are quite different

29. Ranges can become unlimited: how do we get found?
Brands must master how shoppers navigate in the retail world if
they are to be found

30. We have more media options with which to
communicate our messages to shoppers
An increasing complex landscape provides
consumer with a wide array of choices
Online
ECircular
Emails
Printable
Coupons
3
Website
3
3
1
Searching
for
coupons
2
Reading a
flyer/
Circular
3
3
Looking
for Deals
3
3
3
Digital
Magazines
Social
Search/
Display
Mobile
Copon
Text
Message
Mobile
Apps
3
3
3
3
In-store
3
3
3
3
Reviews
Social
Media
Kiosks
3
3
3
3
3
Mobile
3
3
Multiple touch points need to be managed and integrated
Source: Nielsen Digital Circulars Survey, Q2 2011
3
QE/Bar
Codes
3

31. And it appears that there will be an even higher
reliance on price discounts
Great shopper marketing is required to avoid a massive discount
dependency

32. The retail landscape is changing more rapidly than
ever
Consumers
have different
brand
relationships
Shopper
path to
purchase is
changing
New
channels
Different
channel roles
New
environments
within which
to influence
shopper
behavior
New
customers
New
investment
requirements

33. Your major customers will undoubtedly add and
develop their e-retail presence

34. And some retailers will come, and some will go

35. Online retail has a dramatic impact on a traditional
retailer‟s business
Like for like sales go down: stores become a liability
Marketing function grows in strength and influence
Multiple channels become the norm: channel teams
become a necessity
Price comparison becomes more of an obsession –
putting pressure on margins
Things change much more quickly – retailers knee jerk
This will have significant implications for your brand

36. Success will require continual adaptation of the entire
marketing approach
Recognize
that
relationships
with
consumers
will change
Not all
shoppers
are the
same – so
target
those that
matter
Let’s connect!
mikeanthony.me
facebook.com/engagetheexperts
twitter.com/shopperexperts
Map paths
to purchase
Understand
channel
roles
In-store
marketing
must be
flexible, ad
aptable, per
sonable
The retail
base is
more
dynamic
than ever:
prioritize
and invest
with care

37. Find out more in
“The Shopper Marketing Revolution”
“For those on the fast track of modern business (The
Shopper Marketing Revolution) is a must read.”
Paco Underhill
Author of Why We Buy: The Science of Shopping
“Invaluable to the careers of very many of the
marketing professionals in the industry."
Herb Sorensen
Author of Inside the Mind of the Shopper
Available now on Amazon!