Marketing

1. Introduction to
Shelf-Savvy
Marketing
SHELF-SAVVY
TOOLS

2. Book Cover, Spine and Back
Shelf-SavvyMarketing Introduction to
Shelf-Savvy
Marketing
FOR INTERNAL USE ONLY.
Copyright© 2010 The Coca-Cola Company.
DNA: The Coca-Cola Way of Marketing,
Brand Value | Brand Love and the Dynamic Ribbon
are all trademarks of the Coca-Cola Company.
Global Customer &
Shopper Marketing
Converting Shoppers
to Buyers
SHELF-SAVVY
TOOLS

3. Introduction to
Shelf-Savvy
Marketing
Capturing the value of
our brands by converting
shoppers into buyers.

4. 7Shelf-Savvy Marketing
Shelf-Savvy
Tools Series
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
The Shelf-Savvy Tools Series is intended to
provide you with information about
the different ways we create value at retail
for all the stake-holders in our System.
Each book explores a different topic in
depth, and provides you with resources
and tools to help you put the content
into action.
Use these books as a reference, as a
repository for global best practices, and
as a refresher.

5. 9Shelf-Savvy Marketing
Whatis shelf-savvy marketing?
Shelf-savvy marketing converts shoppers
into buyers, transforming insights into value
at the shelf.
Why is it important to be shelf-savvy?
The world we market in is changing rapidly.
In this new world, more people are making
more decisions, amongst more options, in
more stores.
To win at the shelf, we must capture the
value of our brands by optimizing how
shoppers experience our brands at retail.
How do we become shelf-savvy marketers?
By thinking with the end in mind. By
understanding our brands and how they
connect with consumers, shoppers and
customers. By activating holistically, so that
we bring value to all of our stakeholders.
Shelf-Savvy
Marketing:
An Overview

6. What does
it mean to be
shelf-savvy?1
11Shelf-Savvy Marketing

7. What 13Shelf-Savvy Marketing
Our mission:
To inspire moments
of optimism...
and happiness.
To create value.
To make a difference.

8. For consumers
A positive impact
on the body, mind,
and spirit
Our objective:
Creating value
for all the
stakeholders
in our System.
15Shelf-Savvy Marketing
What does it mean to create value?
For shoppers
An easier—and less
price-elastic—
shopping experience
for each unique
shopping mission
For customers
Improved beverage
incidence, basket size,
and shopper loyalty
Collaborating
for Value
Converting
Shoppers
Into Buyers
Creating
Brands
People Love
SHOPPERS
CONSUMERS
CUSTOMERS
What
BRANDS

9. Our vision:
Design with
the end in mind—
creating holistic
brand and channel
experiences that
not only inspire
people to buy into
the brand, but to
buy the brand.
17Shelf-Savvy Marketing
SHOPPERS
C
USTOMERS
What
CONSUMERS
BRANDS

10. Fusing inspiring
brand ideas
with commercial
discipline
to create value.
19Shelf-Savvy Marketing
love
value
BRANDS
What

11. Our Shopper
Marketing Manifesto:
We believe shelf-savvy
marketing converts
shoppers into
buyers, transforming
insights into value at
the shelf.
21Shelf-Savvy MarketingWhat

12. Why should
we evolve?
23Shelf-Savvy Marketing
2

13. The global beverage
market is fragmenting,
creating more
alternatives and
greater elasticity.
20% of global growth is projected to come from
Sparkling, where we have leadership share.
80% of global growth is projected to come
from new Still categories, where we don’t.
25Shelf-Savvy Marketing
80%
20%
Source: KO
We need to be more
relevant in a world of
more options.
WhY

14. 27Shelf-Savvy Marketing
As the global retail
landscape evolves,
large retailers are
creating more leverage.
Large retailers are rapidly expanding in
developing markets—creating new retail
formats and challenging traditional
shopping behaviors.
Retailers are becoming increasingly sophisticated,
leveraging scale and shopper data to build
their brands and compete directly through
customer/private label brands.
Source: Planet Retail
We need to actively
collaborate with
our customers to
create value.
WhY
GLOBECO

15. 29Shelf-Savvy Marketing
Demographic and
social trends are
changing how people
shop—and the
beverage choices
they make.
As lifestyles change, people are shopping
more often, with smaller transactions.
This creates new shopping occasions
and motivations, with more channel and
beverage options.
Future Consumption Missions
Imminent Consumption Missions
Immediate Consumption Missions
Stocking Up
Filling in
JIT Meals
Away from Home Meals
Special Occasion
Daily Shop
Urgent Items
Non GrocerySource: SONAR/MOTOR
We need to adapt our
portfolio to capture new
shopping behaviors.
WhY

16. 31Shelf-Savvy Marketing
We are building brands
people love—but not
consistently capturing
the value.
Globally, there is a 10 point gap between our
brand preference and volume share. Bridging
that gap is equivalent to adding an incremental
Latin American group to our business.
Source: Nielsen/B3
We must balance our
activation to capture
both Brand Value and
Brand Love.
WhY
$

17. 33Shelf-Savvy Marketing
Wooing Brand Lovers
is critical—but we
can’t forget about the
opportunists.
While 60% of volume comes from
preferrers, 40% comes from more
elastic, less loyal non-preferrers.
Source: Nielsen/B3
60%lovers
40%opportunists
WhY
We must embrace our
most loyal users—and activate
the store to capture the large
number of trialists.

18. 35Shelf-Savvy Marketing
A traditional media
model will be much
less impactful in our
changing world.
There have been more new media
additions in the past 20 years than in
the past 200 years.
35Shelf-Savvy Marketing
Source: Advertising Age
In some markets,
the leading retailer
reaches as many
people each week
as the top 10
television shows
combined.
To close the sale, we
must actively communicate
throughout the path to
purchase.
WhY

19. 37Shelf-Savvy Marketing
More purchase
decisions are being
made in store.
While most grocery buyers have a rough
list of their planned purchases, 60%
of food and beverage purchase decisions
are made in store. Beverage buyers
tend to have more preferred brands,
but package, size and quantity decisions
tend to be made at the shelf.
Source: Booz Co.
We must make it easy
for shoppers to buy our
brands.
28%Brand display
28%Package
Buy 1 Get 1
26%In-store coupons
new lower price
was $3.50
$298
Free
Sale
nothing beats
32%Store circular
WhY
40%Shelf signage
Influences on Purchase Decisions
DRUGCO

20. 39Shelf-Savvy Marketing
The challenge:
In our new world,
more people are
making more
decisions in more
stores.
Are we ready to
win at the shelf
by capturing the
value of our brands
at retail?

21. How do
we become
shelf-savvy
marketers?3
41Shelf-Savvy Marketing

22. 43Shelf-Savvy Marketing
Execution is core to
our DNA.
The goal of marketing at The Coca-Cola
Company is to combine art and science at
every touchpoint to build Brand Love and
Brand Value.
HOW

23. 45Shelf-Savvy Marketing
Leveraging
commercial
discipline to
create value at
retail for all our
stakeholders
45
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

24. Defining the
profit pools
47Shelf-Savvy Marketing
We can leverage our insights
to help us identify:
Which occasions and missions?
Which customers and channels?
Which shopper segments?
How do we unlock value?
The outcome: A clearly defined set of
target occasions, missions, customers,
channels and shopper segments.
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

25. 49Shelf-Savvy Marketing
Creating a
differentiated offer
Portfolio strategy can help
us determine:
Which occasions?
Which brands?
Which packages?
Which price points?
Which channels?
Which equipment?
The outcome: A differentiated bundle
that is uniquely suited for an outlet and
the shoppers it serves.
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

26. Creating a retail
experience
51Shelf-Savvy Marketing
Effective retail activation
will help us:
Optimize shoppability
Optimize in-store
communication
Optimize promotions
Optimize packages
The outcome: A retail activation that
communicates directly to—
and connects with—the shopper.
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

27. Making it happen
in the market
53Shelf-Savvy Marketing
We can quickly commercialize our
efforts across our System through:
Collaborative Customer Plans
Scalable Activation Platforms
Common development process
Transferring best practices
The outcome: Effective and
efficient plans that are commercialized
with speed and scale.
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

28. 55Shelf-Savvy Marketing
Simple metrics to
measure our progress
55Shelf-Savvy Marketing
Accessible metrics will help us measure:
Value growth vs. volume growth
Are we creating leverage with a segmented
portfolio?
Volume share vs. preference
Are we monetizing the value of our brands?
Incidence
Transaction frequency
Amount of transaction
Are we impacting consumption and
purchase habits?
The outcome: A scorecard to
measure the impact of our retail
activation.
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Differentiating
Brand / Pack
Strategy
Prioritizing Shopper
Opportunities
Picture of
Success
HOW

29. A suite of tools to
bring Shelf-Savvy
Marketing to life
57Shelf-Savvy Marketing
_DNA 3.0: Marketplace Execution
(Process Best Practice)
_Shopper Strategy
_Point of Purchase Principles
_Merchandising Principles
_Packaging Principles
_Promotions
_OBBPC Architecture
_Shopper Driven Category Management
_Shopper Insights
_Shopper Segmentation
Metrics
Commercializing with
Customers
Activating for
Retail Impact
Prioritizing Shopper
Opportunities
Picture of
Success
Differentiating
Brand / Pack
Strategy
HOW

30. Habits
to Win
at Retail
59Shelf-Savvy MarketingHOW 59Shelf-Savvy Marketing
7

31. 61Shelf-Savvy Marketing
1. Balance
Balance Brand Love
and Brand Value in all
we do
$$$$$$$
HOW

32. 63Shelf-Savvy Marketing
2. Prioritization
Prioritize growth
and investment
opportunities
$
HOW

33. 65Shelf-Savvy Marketing
3. Portfolio
Make disciplined
Portfolio choices
HOW

34. 67Shelf-Savvy Marketing
4.
Segmentation
Build segmentation
capability for strategy
and execution
HOW

35. 69Shelf-Savvy Marketing
5.
Differentiation
Create pack /
price differentiation
and innovation
HOW

36. 71Shelf-Savvy Marketing
6. Occasions
Provide a compelling
reasonwhen and why
our brands should
be consumed
HOW

37. 73Shelf-Savvy Marketing
7. Interruption
Create retail brand
experiences…in
and beyond the
beverage aisle
HOW

38. Shelf-Savvy
Marketing
Capturing the
value of our
brands by
converting
shoppers into
buyers.

39. FOR INTERNAL USE ONLY.
Copyright© 2010 The Coca-Cola Company.
DNA: The Coca-Cola Way of Marketing,
Brand Value | Brand Love and the Dynamic Ribbon
are all trademarks of the Coca-Cola Company.
Global Customer
Shopper Marketing
Converting Shoppers
to Buyers