Shopper Marketing: Unleashing the Next Wave of Value

November 3rd, 2009

Shopper Marketing: Unleashing the Next Wave of Value

November 3rd, 2009

MSMMSM

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We’re excited to share our research findingsWe’re excited to share our research findings

Matthew Egol

Partner – Consumer, Media & Digital practice

Matthew Egol

Partner – Consumer, Media & Digital practice

Aliza Freud

Founder & CEO, shespeaks

Aliza Freud

Founder & CEO, shespeaks

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Study sponsored by GMA Shopper Marketing CommitteeStudy sponsored by GMA Shopper Marketing Committee

Objectives

1. Understand how shoppers’ purchasing behaviors change due to different Shopper Marketing elements

2. Understand how shopper purchasing behaviors are affected by in-store marketing vs. out-of-store marketing

3. Determine potential measurement models to gauge in-store marketing compared to out-of-store marketing effectiveness

Methodology Pre-shopping and post-shopping surveys using SheSpeaks platform

In-depth interview campaign with industry executives

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Multi-pronged research methodologyMulti-pronged research methodology

Pre-shopping & post-shopping surveys

3,600 participants across– Food & Beverage

– Health & Beauty

– Household 80% women, 20% men

(reflecting actual shopping behavior)

Pre-shopping & post-shopping surveys

3,600 participants across– Food & Beverage

– Health & Beauty

– Household 80% women, 20% men

(reflecting actual shopping behavior)

In-Depth InterviewsShopper Study Discussion Forums /Video Ethnography

Forums provided qualitative insight to support survey findings

Video interviews of shoppers

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Online Survey and Discussion Group Methodology

How we performed the surveyHow we performed the survey

Targeting /Screening1

3 Shopping Trip Planned

4 Feedback:

2 Shopper Enrollment& Discussion

5Insights

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Focus of this year’s shopper marketing studyFocus of this year’s shopper marketing study

Shopper Insights Across Shopper Insights Across the Full Path- to-Purchasethe Full Path- to-Purchase

Shopper Marketing as a Strategic Capability

Path Forward for Measurement

1

2

3

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Many moments of truth along Path to PurchaseMany moments of truth along Path to Purchase

In-StoreAt Home

Path to Purchase

On the Go

Mobile

InteractiveVending

AlternativeOut of Home

Video Displays

Interactive Media

Signage on Shelf

In-store Coupons

Displays

Sampling Programs

Relationship Marketing

(e.g., email, SMS)

Paid Media

Product Placement

Search before you buy

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Shopper insights developed based on when the brand selection is madeShopper insights developed based on when the brand selection is made

Types of Purchases In-Store

Brand On List,PURCHASED In Store

Brand On List,SWITCHEDIn StoreItem On List,

Brand SELECTED

In Store

Item Not On List, IMPULSE Purchase

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Significant room to influence before and in-storeSignificant room to influence before and in-store

41%

21% 19% 19%

**Brand On List, Switched In

Store

*

Division of Purchases In-store(% of Total Items Purchased)

29% 86% 85% 85%% shoppers more influenced by in-store factors

Source: Booz & Company, SheSpeaks survey of 2,200 shoppers completing post-shopping survey

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51%Price

Product Selection

Store Ads / Circular 4%

Habit 5%

Convenience /Location 17%

19%

Most Important Factor For Choosing Retail Location(% of Total Respondents)

Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey)

"I could go to a closer store, but they don't have as wide of a selection for

the brands I want"

“I like ‘my’ local store because I know where everything is, and I like the depth of product

choices they have.”

“I find the experience so much more pleasurable because there is a wider

selection, higher quality brands, and a higher level of clientele.”

Beyond price, product selection and convenience are key for choosing a retailer

Beyond price, product selection and convenience are key for choosing a retailer

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**

*

Media – Content *

Media – Paid *

Friends/Family *

*

Out-of-store Influences(% of Total Respondents, Top 2 Box)

Brand preference and coupons drive out-of-storeBrand preference and coupons drive out-of-store

Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey)

% Shoppers Doing Research Before Going to Store

(% of Respondents by Category)

79% 82% 83%

***

% Shoppers Making Lists(% of Total Respondents)

23%

73%

4%

Mental/rough

list

* *

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More than half of shoppers are doing research online before they shopMore than half of shoppers are doing research online before they shop

Example Focus Areas for Digital Shopper Marketing

Digital Coupons“I spend at least 30 minutes every day

searching through money-saving blogs for printable coupons, deals, etc ”

Manufacturer Sites / Apps

“I go to multiple sites including online manufacturers' websites

before I shop.”

“I like to see my Facebook friends' recommendations on items. I trust their opinions.”

Social Networking

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While price is clearly important…While price is clearly important…

6%11%

83%

***

Which is Most Influential to Purchase Decisions

(% of Total Respondents)

“I like to look at all of the brands they have and then look at prices and how

good they are.”

“I study the circulars and compare them with my coupons to determine

where to shop each week.”

“If I see a good sale, then I will buy it even though its not on my shopping

list.”

Source: Booz & Company, SheSpeaks survey of 2,200 shoppers completing post-shopping survey; Online Discussion Forums

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…Shopper marketing is key to differentiate as shoppers want to buy the brands they love

…Shopper marketing is key to differentiate as shoppers want to buy the brands they love

Source: Booz & Company, SheSpeaks survey of 2,200 shoppers (completing post-shopping survey)

* *

* *

* *

* *

* *

* *

* 27%

In-store Influences(% of total respondents influenced)

% Preferring Brand Over Price(Top 2 box, neutral agreement)

*

*

*

* ** *

* *** *

* *** **

Source: Booz & Company, SheSpeaks survey of 3,600 shoppers (completing pre-shopping survey)

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Shelf Signage 23%

Brand Recognized 36%

Product Benefits on Package 22%

Item on List, Brand Selected in Store(% of total respondents influenced)

Effectiveness varies based on brand objectivesEffectiveness varies based on brand objectives

Product Benefits on Package

27%

Everything as Expected 63%

Nothing Better 20%

Brand on List, Purchased in Store(% of total respondents influenced)

Brand on List, Switched in Store(% of total respondents influenced)

Brand Recognized 12%

In-Store Coupons 16%

Shelf Signage 11%

Product Display 18%

Shelf Signage 20%

Product Benefits on Package

14%

Item Not on List, Impulse Purchase(% of total respondents influenced)

Source: Booz & Company, SheSpeaks survey of 2,200 shoppers (completing post-shopping survey)

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Shopper marketing should be focused on getting beyond price to convert insights into action

Shopper marketing should be focused on getting beyond price to convert insights into action

Shopping occasions

Decision processes (i.e., think-do-feel vs. feel-do-think)

Key messages that resonate to build equity

In store navigation

How shop displays & at shelf

Response (tune out) to (over) stimulation

How best to activate brand equity at POS

Mobile search and discovery

Social shopping

Key messages that reinforce equity closer to point of purchase

Insights

Action Get coupons

Visit manufacturer or retailer website

Check out reviews

Register (e.g., loyalty club, e-newsletter, RSS)

Stop at display, shelf or kiosk

Scan item to get information

Watch in-store video

Sample product

Search for recipes or meal solutions

Text for offers

Plan shopping trips with friends

In-StoreOn the GoAt Home

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Focus of this year’s shopper marketing studyFocus of this year’s shopper marketing study

Shopper Insights Across the Full Path- to-Purchase

Shopper Marketing as a Shopper Marketing as a Strategic CapabilityStrategic Capability

Path Forward for Measurement

1

2

3

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Shopper marketing at a crossroadsShopper marketing at a crossroads

Organizational Integration

Measurement Gap

Campaign vs. Capability

Retailer Influence

CPG manufacturers struggling to integrate shopper marketing across the path to purchase

Organizational focus on tactical campaigns vs. building an ongoing capability

Measurement gap in quantifying ROI, raising stakes to justify investment in shopper marketing vs. other options

Pressure from retailers pushing for greater share of CPG marketing dollars, investment in retailer-led programs and “cleaner” stores

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Unlocking greater value requires managing as a strategic capabilityUnlocking greater value requires managing as a strategic capability

Shopper Marketing as a Strategic Capability

Shopper Insights

Measurement

AdvertisingConsumer Promotions

Trade Promotions

Merchandising/In-Store Ads

Relationship Marketing

Out-of-Store In-Store

AnalyticsProcess

TechnologyOrganization

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Focus of this year’s shopper marketing studyFocus of this year’s shopper marketing study

Shopper Insights Across the Full Path- to-Purchase

Shopper Marketing as a Strategic Capability

Path Forward for Path Forward for MeasurementMeasurement

1

2

3

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Measurement need to address both lift and equityMeasurement need to address both lift and equity

Focus on compliance and sales lift Leverages syndicated data and controlled

tests

Focus on compliance and sales lift Leverages syndicated data and controlled

tests

Building Better Measurement

Focus on incremental ROI Leverages controlled tests (selective campaigns)

and mix models (directional for budget priorities)

Dashboard of metrics to sustain and monitor progress against brand objectives

Focus on longitudinal equity measurement (e.g., panels) Periodic test driven research (e.g., virtual/online

campaigns, ethnography) to validate progress

Data & Metrics

Issues causing a shaky foundation– Lack of compliance and causal data– Lack of data to support traffic/

engagement metrics

Tactical,Promotional

Sustained Focus, Strategic

GOOD

BETTER

BEST

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Focus of GMA report: actionable insightsFocus of GMA report: actionable insights

Optimization of shopper marketing execution across product categories and retail formats

Implications for marketing based on specific brand objectives within lifecycle and positioning

Shopper Marketing Effectiveness

Shopper MarketingCapability

Implications for your organization to fully unlock the value of shopper marketing as a strategic capability

Shopper Marketing Measurement

Models for leveraging measurement to quantify shopper marketing’s value to your organization

Requirements to better integrate shopper marketing with other capabilities and gauge incremental benefits

Role for GMA to drive industry standards and best practices

Actionable Insights

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Thank You

Matt EgolMatt EgolPartnerPartner, , Booz & CompanyBooz & CompanyConsumer, Media & DigitalConsumer, Media & Digital(212) 551-6716(212) 551-6716EmailEmail: : matthew.egol@booz.commatthew.egol@booz.comTwitter: Twitter: @mattegol@mattegol

Aliza FreudAliza FreudFounder & CEO, SheSpeaksFounder & CEO, SheSpeaks(212) 830-9882(212) 830-9882Email: Email: aliza@shespeaks.comaliza@shespeaks.comTwitter: Twitter: @shespeaking@shespeaking