Creating in-storevalue - Why& how
- 1. Creating value in-storewhy and howPpt by Asha Krishnan IInd year MBAPondicherry University
- 2. # Retail shelf will be the forward position inthe battle for consumer spending. # Many brand owners have mistakenly treated the in-store experience as yet another operational function. And…Whyit matters?
- 3. # When consumers feel pain in the pocketbook, they react differently inside the store.Unfortunately, it is this in-store decision moment that is chronically misunderstood and under-resourced.# 70 percent or more of purchase decisions are made in-store
- 4. Procter and Gamble, consistently utilizes shopper insights to create store solutions that successfully grow the objectives of their brands
- 5. Understand differences between consumers and shoppersThen What’s the goal?Leveraging on shopper insights1Optimization of Brand Value
- 6. same people, operating in 2 different environments
- 7. subject to different environmental influences
- 8. Possessing different needs.Shoppersshoppersshopping behaviour, habits, and practices segment themlocation, demographics, habits and practices their life often segment themvs.consumersCONSUMERS
- 9. 3 must-knows for the brand Leg 1dynamics of the shopping environment what motivates and influences the shopper Leg 2iii. Incorporating strategic objectives of the brand
- 10. LEG 1Understanding dynamics of the shopping environment
- 11. #Merchandising logic in the form of category principles (e.g. vertical versus horizontal shelf arrangements by brand, scent, size, etc)#Planned adjacencies and store layout both within and across the categories#Category and brand sign-posting and way finding
- 12. Contd..# Total store planning and flow# Packaging# Multi-level communication# Emotive and interactive communication- imagery, technology, or out-of-box displays
- 13. Understanding what motivates and influences the shopper
- 14. #What drives the shopper to go to a store, and on what kinds of trips to the store is the brand likely to be purchased?#Is the category usually a destination, planned, unplanned, or impulse purchase and what drives that role?
- 15. #What are the current purchase drivers and barriers in-store?#What information do shoppers seek in the store, specifically?
- 16. #How do shoppers select and de-select options and what are the decision hierarchies?#How do shoppers want to interact with products? What interaction do they need?
- 17. #How do shoppers orient themselves in the category? In the store?
- 18. 2nd Leg to unlocking in store valueIncorporating strategic objectives of the brandbesides understanding shoppers, brands must also be clear about what they want to achieve with shoppers
- 19. Promoting trialFacilitating greater purchase frequencyEncouraging trade upAdding or increasing margin variantsMotivating multi-product routinesStrategies for the brand
- 20. Summary Brands must get to know shoppers, not just consumers.The store environment is a brand opportunity, not just a point of tactical operations.As the competition for share and loyalty continues to get more intense, brands that manage the shopper aspect of their brand differentiate and create meaningful value as a brand and retailer partner.
- 21. ReferencesArticleUnderstanding and Profiting from the Differences BetweenShoppers and Consumers - Kelly Crouch and Emily Grantwww.iStockphoto.com
- 22. Leave your comments and criticisms below without failThank you