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Lecture TePe 8 december
1.
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?
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.
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
14.
15.
16.
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
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
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
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
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
52.
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
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.
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.