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Transformational
Shopper Marketing Strategy
March 13, 2012
Who Am I
Peter Krieg
President & CEO
Copernicus Marketing Consulting and
Research
President & CEO
Copernicus Marketing Consulting and Research
Author
3 books and numerous articles on marketing and
improving business performance.
Obsession
Helping clients achieve transformational results
2
The New Marketing Landscape
Off-line Media
Digital Campaigns
Social Media
Mobile Strategies
Websites/Micro-sites
All converging into single “Cloud”
All changing daily
Producing Thousands of Ways to Make (and Squander) Money
4
Multiple devices
Multiple Channels
Digital Out-of Home
In-Store networks
What are “Shopper Insights”?
1. Who is “the Shopper”?
2. Where is his/her nest and territory?
3. How does s/he roam in her territory and when is she
vulnerable?
4. When and Where does s/he go when she’s ready to eat?
5. What traps will ultimately snare him/her?
5
Field Guide
What are “Shopper Insights”?
Media Strategy
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
6
Field Weaponry
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
Certainly the right approach for product
and portfolio planning
Certainly better for marketing and
communications planning
1. Who is the Shopper?
7
Many studies segment users More studies should be done among purchasers
1. Who is the Shopper?
8
CREATE
Hundreds of Variables
1. Category
Involvement
2. Attributes Desired in
Product Category
3. Purchase Process/
Channel Preference
4. Demographics
5. Links to Media Habit
Panels
6. Links to Household
Panels
7. Links to Marketing
Databases
TEST
To identify
characteristics
of people who
are profitable
for your
BRAND
PRODUCE
Optimal
Segmentation
Develop a Meaningful, Profit-Directed and Actionable Segmentation
1. Who is the Shopper?
9
Different Demographically
Different Attributes Desired
Very Different in Shopping Process
In TV Study, Five Segments Emerged…
Scientific Impulsive Calculating Accommodating Frustrating
1. Who is the Shopper?
10
Using “predictive” characteristics to define segments leads to clear targeting.
17%
11%
6% 4%
3%
25% 10%
18%
9%
16%
10%
19%
27%
22%
44%
% of Buyers
% of Client’s
Potential Business
Likelihood to Buy Client Brand Potential ROI
1. Who is the Shopper?
Media Strategy
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
Identifying an actionable, and financially-optimal target affects everything you do.
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
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2. Where is his/her nest and territory?
12
By having “links” to databases, can easily track down the Shopper
BEST BUY
# 204
• Algorithms to
identify
segments in
MRI, Simmons
and Carat’s CCS
Media
Panels
• Algorithms to
classify client’s
customers
Customer
Databases
Algorithms to
identify high
density zip
codes
Households &
Neighborhoods
• Easy-to-use
classification
tools (and
“scripts”) for
sales associates
to use.
Sales
Prospecting
• Algorithm to
classify every
household in
U.S.A.
Marketing
Databases
American Idol ................ X Y
The Office….. X Y
Dancing with Stars…... X Y
Etc.
2. Where is his/her nest and territory?
Media Strategy
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
Proper linkage to databases affects:
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
13
1. What triggered the search/shopping?
2. Marketing “Touch points” Experienced
– Other “Influencers” consulted?
3. Receptivity Analysis
– “Moments and Mindset”?
– Underlying motivations?
4. Is the “Journey” ever aborted? When? Why?
5. Which brands “survive” each step?
– When is brand decision made?
– Before store or at store?
6. “Advocacy” at the end?
– For which brands?
3. How does s/he hunt and when is s/he most vulnerable?
14
The Shopper “Journey”
The Inspiration
The Exploration
(“Learning”)
The Execution
(“Shopping”)
The Post Mortem
(“Post-tailing”)
Pros
Deeper understanding
Effective to show to marketers
Cons
Validity?
Pros
Can quantify ROI of specific information
Validity
Cons
May need qualitative is pre-requisite
3. How does s/he hunt and when is s/he most vulnerable?
15
Qualitative Approach
(Ethnography)
Quantitative Approach
(Diary)
3. How does s/he hunt and when is s/he most vulnerable?
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Catalyst
Info Search… for a “look,” style, etc.
Screen/Select Contractor
Talk to friendsSee TV showRead magazineWeb search
Review fan decks from Contractor/decorator of desire
• May be same decks as earlier
Visit paint store - contractor may/may not suggest• Get color samples• Talk to sales associate
Wait for job to start. During this time:• Show color preferences to friends and spouse• Match color to drapes, rug, etc. (or visa versa)• Possibly, expand project
Do painting
Back to store• Get more samples• Talk to SA again
Visit ANY Store:First Pass at Color Choice
If plan to use same contractor/decorator/designer
Consult Decorator/Designer
Ethnography Example: Paint Study
3. How does s/he hunt and when is s/he most vulnerable?
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%
Single Exposure
Looked at Client Brand in stores only 24
Saw/Heard/Read Advertising only 6
Visited website only 3
Double Exposure
Saw/Heard/Read Ad + Looked in stores 19
Saw/Heard/Read Ad + Visited website 3
Looked in stores + Visited website 6
Triple Exposure
Saw/Heard/Read Ad + Looked in stores +
Visited website 15
Diary/Survey Example: TV’s
Different Types of Exposure
3. How does s/he hunt and when is s/he most vulnerable?
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6%
27%
34%
44% 47%
Ad only Store only Store + Ad Store + Web Store + Web + Ad
Effect of Type of Exposure on Probability of Purchasing
Level of Exposure to Client Brand
Diary/Survey Example: TV’s
Store exposure = Big Impact
Web exposure = Modest Impact
Ad exposure = Small Impact
3. How does s/he hunt and when is s/he most vulnerable?
Saw Client Ad
Total Yes No
(100%) (34%) (66%)
Visited Client Website 24 34 17
Saw Client Product in
Store 43 54 34
Ability of Advertising to Drive People to Web/Store
Ads DO drive people to look
more closely
But, does it drive enough
people to pay out?
19
3. How does s/he hunt and when is s/he most vulnerable?
“Brand Advocates” are a small, but highly engaged
and influential, group of customers
Typically representing 5-10% of the customer base
A strong emotional connection with—and affinity
for—your brand. Like they work for you.
They have always been valuable because they are
influential. But they are much more so today
because of their reach, the speed with which they
can influence, and the tools at their disposal to
influence.
Can “drive” for 20% to 30% of total sales
Yesterday Today
Yesterday Today
Don’t forget to enlist some Shoppers to be Sellers/”Advocates”
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3. How does s/he hunt and when is s/he most vulnerable?
Media Strategy
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
21
Understanding of Shopper’s Journey affects:
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
4. Where does s/he go when she’s ready to eat?
Share of Purchases at Retail Channels
14% 3% 3%
26%
6% 9% 16%
0%
4% 5% 5%
1%
25%
43% 42%
6% 11% 14%
20%
11% 13%
8% 3%
1% 1% 1%
1%
2% 1%
1% 1%
2% 6%
13% 11%
14% 14%
12% 17%
77% 75% 63% 60%
46% 41%
27% 21%
Food Beverages Cleaning Products
Paper Products
Pet Food Personal Care Health Care Beauty Care Products
Supermarket
Mass Merchandiser
Super Center
Warehouse/Club
Drug Store
Specialty Store/Other
So many products can now be purchased in so many different places!
22
4. Where does s/he go when she’s ready to eat?
You’re P&G: You WANT him/her to buy everything!
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4. Where does s/he go when she’s ready to eat?
Inputs to
Occasion
Segmentation
24
4. Where does s/he go when she’s ready to eat?
X 2,000 Respondents
= 8,000 Total “Occasions”
Cluster Analysis of Occasions
Occasion #1
When: _________
Where: ________
Needs: ________
With who:_______
Buy Personal Care:_______
What brand:________
Segmentation of Shopping Occasions
Occasion #2
When: _________
Where: ________
Needs: ________
With who:_______
Buy Personal Care:_______
What brand:________
Occasion #3
When: _________
Where: ________
Needs: ________
With who:_______
Buy Personal Care:_______
What brand:________
Occasion #4
When: _________
Where: ________
Needs: ________
With who:_______
Personal Care Prod:_______
What brand:________
4 Recent
Occasions
when bought
personal care
products
1. “Weekly Shop” 2. “Social Splurge
& Spoil”
3. “Spontaneous
Browse”
4. “Great Sale
Trip”
5. “The Drug
Stop”
6. “Personal Care
Trip”
25
4. Where does s/he go when she’s ready to eat?
% of All
Personal Care
Purchase
Occasions
% of All
Personal
Care $
Key
Channels
Key Categories
Shampoo
Skin
Care
Oral
Care Fragrance Etc.
Weekly Shop 30% 14% Supermarkets
Social Splurge &
Spoil 13% 19% Mass/Club
Spontaneous
Browse 9% 9% Mass
“Great Sale!” Trip 9% 9% Supermarkets
The Drug Stop 16% 20% Drug
Personal Care Trip 23% 29% Mass/Drug
26
4. Where does s/he go when she’s ready to eat?
Media Strategy
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
Understanding of purchase occasions affects:
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
27
5. What traps will ultimately snare him/her?
What In-Store Communications Work? The “Last 3 Feet”
= Shelf talkers = In-store TV = Circulars = End-aisle dump = In-cart ad The “First Moment of Truth”
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5. What traps will ultimately snare him/her?
Another kind of “store” to Navigate
29
5. What traps will ultimately snare her?
Illustrative Case
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
Featured “Deals”
New Product Features
“Compare” Tool
Return Policy
Store Locator/Interaction
Customer Service Hotline
Breadth of Selection
Customer Reviews
High Spend
On-Line
Low Spend
On-Line
30
5. What traps will ultimately snare her?
Media Strategy (In-Store)
Website
Assortment
Messaging Strategy
Sales/Customer Strategy
Deep understanding of the “last few feet” will affect:
“Scale”/Cross-Selling Programs
Promotion Strategy
Packaging Strategy
Shelf Sets
31
In Sum
Marketing is increasingly complex.
The best approach is to follow—and continually entice—the consumer.
It all starts with identifying financially-optimal, and actionable, target.
32
1. Who? 2. Where? 3. How? 4. When? 5. What?
Eric Paquette
Senior Vice President
Copernicus Marketing Consulting and Research
Register Now: copernicusmarketing.com/webcasts
Wednesday, April 25, 2012
On-Line Shopper Typologies:
Segmenting Your Web Channel Users
Mark Your Calendars!
Wednesday, April 25, 2012
Call or Write If You…..
34
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