Lecture TePe 8 december
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Martin Moström is a strategic advisor with over 20 years of experience in shopper marketing. He founded Retail House and has authored several books on shopper marketing. Shopper marketing has evolved from separate functions like sales, branding, and trade marketing to a more holistic approach. It focuses on understanding shopper behavior by researching their shopping paths and the in-store stimuli that influence purchases. Effective shopper marketing strategies communicate value through visuals rather than words, help shoppers with relevant in-store information, and understand the retailer's perspective to support their category strategies.
Lecture TePe 8 december
- 2. Martin Moström Strategic Advisor – Shopper Marketing More than 20 years experience in working with Shopper Marketing Founder and partner Retail House Editor of three books of Shopper Marketing Retailers, brands and academia Nespresso, J&J, ICA Nikon, Coca Cola.
- 3. HOW TO WIN THE IN-STORE BATTLE- AN INTRODUCTION TO SHOPPER MARKETING • Why Shopper Marketing? • Understanding the Shopper and the Retailer • 10 principles of Shopper Marketing
- 4. 1. How do you define Shopper Marketing? 2. Why is Shopper Marketing more important today than 20 years ago?
- 5. Shopper Marketing – an evolution Sales Brand management Trade marketing Category management Key Account management
- 10. COCKTAIL FACTS 138 000 000 customers every week Chinas sixth largest export market One of the largest employers Market dominance leads to lower prices If growth continues for 15 years ..... Turnover as large as Japan's GDP, or France and the UK together (3.2 trillion dollars). Retail space as large as Las Vegas - one of America's fastest growing cities.
- 11. 2005 2013
- 12. MEDIA CLUTTER – SMART PHONES
- 13. A newspaper can have about 70 ads Up to 18 elements in a media block on TV Between 254 and 5,000 advertising messages meeting the consumer every day. 16% (28% major cities) of Swedes have non advertising on the door and just as many are planning to put it up (18%). MEDIA CLUTTER Källa: Sara Rosengren HHS
- 17. SUMMARY… • Retail power • Fragmented media channels • Technology development • Downturn in economy SHOPPER MARKETING
- 19. Consumer • Uses the product • Influence the purchase • Demographically based • Influenced by the advertising • Research based on attitudes and usage Shopper • Purchases the product • Need state based • Influenced by relevant in-store stimuli • Research based on Shopping behavior
- 21. MOMENT OF TRUTH
- 22. ZERO MOMENT OF TRUTH
- 25. KNOW YOUR PATH TO PURCHASE
- 26. 95 % OF THE PRODUCTS ARE TODAY SOLD IN BRICK AND MORTAR STORES
- 27. SHOPPER MARKETING IS ABOUT UNDERSTANDING HUMAN BEHAVIOR
- 29. Intuitive vs. Rational System 1 vs. System 2
- 30. Try the following puzzle: A bat and ball cost $1.10. The bat costs one dollar more than the ball. How much does the ball cost?
- 31. But the real answer is 5¢. If the ball costs 10¢, then the total cost will be $1.20 (10¢ for the ball and $1.10 for the bat), not $1.10.The correct answer is 5¢
- 32. We are a part of the nature • 98 % av our DNA is the same as a monkeys • Many of our marketing theories come from experiments with animals We love habits • We repeat most of our human activities We want control • Car/aeroplane • Relation with brand We don´t have much patience • 12 sec • We rather choose something, then spend more time on the different choices. THE HUMAN NATURE
- 33. We don´t want to feel stupid • We want to be rational We forget things • As long as it is not a habit we tend to forget We have a lot of feelings • It is hard to make decisions without feelings
- 34. • How many SKU:s does a Hyper Market have? • How many SKU:s do you buy when you do a stock up trip? • How many SKU:s do you buy on a yearly basis? TAKE 1 MINUTE
- 35. = about 30 000-40 000 SKU:s = 35-50 SKU:s = 150-200 SKU:s (incl. seasonal products) ASSORTMENT
- 36. 29 850 products that you never buy or see? = 99.5% ASSORTMENT
- 37. Every category has its own visual language which shoppers culturally share. They use this visual language to identify products and brands and judge their relevance to the shopping task - Colours - Text Fonts - Pictures - Shapes - Textures IN-STORE VISABILITY
- 38. COMMUNICATE VALUE – PICTURES INSTEAD OF WORDS Albert Heijn Holland Carrefour Belgium
- 39. COMMUNICATE NEWS – HELP THE SHOPPER Kruidvat – Holland
- 40. COMMUNICATE EXPERTISE ASDA UK DUNNES IRELAND
- 41. CHANGING BEHAVIOUR IS HARD
- 42. HOW DO WE SHOP? • System 1 – autopilot • 80 % have the same in-store route • In average we spend 14 minute in-store per purchase • 3,5 minutes at check out • 5, 5 minutes are used for shopping (actively)
- 43. UNDERSTANDING SHOPPER BEHAVIOR IS THE KEY! (Burke et al 2014) • Eye level is buy level – 60-180 cm • Less than one second for your sign to be read • Consumers only engage if a sign is immediately actionable • People read horizontally in one direction • People spend 18-40 sec to read signs on a 30 minute shopping trip • Important to stand out in the shelf and learn how to break the habits…
- 44. U N D E R S TA N D I N G T H E R E TA I L E R ?
- 46. HOW TO REACH THE RETAILER Brand/trade/sales Retail HQ Store staff Shopper
- 47. RETAIL CATEGORY PERCEPTION How do the retailer perceive the category? What role does the brand play in creating the perception? How do we create strategies that change retail perceptions?
- 48. IMPORTANT STAKE HOLDERS Store manager Little time Many brands Local strategy Category/central Category perspective Negotiations Central strategy
- 49. How can our brand support the strategy of the retailer?
- 50. COMMUNICATION TOUCH POINTS Consumer Communication DM KSM Advertising Social media KAM communication Proposals/initiatives KAM presentations Shopper In-store Colours Text Fonts Pictures Shapes Textures Placements Shelf Lightning Sound Scent Digital Events Solutions Sales rep Sales calls Local tool kit Merchandising
- 51. Hygiene factors Assortment, shelf, DM, Social Shopper solutions Connecting the category with other categories Hero activities HOW DO WE WORK WITH RETAIL CATEGORY PERCEPTION
- 53. 1 0 P R I N C I P L E S O F S H O P P E R M A R K E T I N G
- 54. Availability OfferCommunication Create an annual plan and a unique approach to how your brand is performing in shop. Both the regular POS and Campaign. 1. FROM SHORT-TERM CAMPAIGNS TO LONG-TERM STRATEGY
- 55. 2. DEVELOP YOUR PACKAGING AND DESIGN STRATEGY Create brand visibility by having a packaging and design strategy from a Shopper perspective
- 56. 3. DIFFERENTIATE BETWEEN CONSUMER AND SHOPPER Create communication that helps Shopper to buy.
- 57. 4. UNDERSTANDING YOUR BRAND FROM A CONSUMER PERSPECTIVE Create In-Store activities that drive added consumption for the brand, category and store.
- 58. 5. CREATE SHOPPER SOLUTIONS Create partnerships with complementary brands and retail chains.
- 59. 6. CREATE RETAIL VALUE Create strategies that harmonize with the chain's strategies.
- 60. 7. CUSTOMIZE OFFER TO CHANNEL AND STORE STAFF. Adapt your campaigns, range to the channel and the store
- 61. 8. UNDERSTAND THE PATH TO PURCHASE Working with a combination of digital and physical channels – preferably together with the retailers and it´s marketing tools.
- 62. 9. SILO MENTALITY MINDSET MUST BE BROKEN
- 63. 10. COMBINE NUMBERS WITH INSIGHT - SIMPLIFY Brand/trade/sales Retail HQ Store staff Shopper
- 64. AT LAST… THE LECTURE IN 1 MINUTE! • Retailers and Shoppers are leading the development. • 0,5 % of the brands are selected in a Hypermarket. • Don´t be disappointed in other people – remember that we are all animals.
- 65. THANKS Martin Moström www.retailhouse.se +46708-812630 Follow my blog at retailhouse.wordpress.com or LinkedIn