Shopper Marketing

1. Shopper Marketing How to turn shoppers into buyers

2. What is shopper marketing? 2 “Shopper Marketing is the use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers , enhance the shopping experience and improve brand equity for retailers and manufacturers. The ultimate goal is to improve business results for all parties involved. Turn shoppers into buyers!

3. Why shopper marketing is that important On the product/brand level: 3 3000 marketing messages/day > 30.000 product introductions in 1 year (average) More and more promotion instore/outstore

4. Why shopper marketing is that important on the retail side: 4 Convenience: number of retail channels doubled in 50 years Choice is unlimited: f.i. Carrefour Planet stocks > 30.000 products Strong retail brands (housebrands) Delhaize = quality, Colruyt = sustainability, Carrefour = choice Success of hard discounters even increases More and more concept stores/pop-up stores

5. The retailer is in the game ! 5 Shopper Retailer / Dealer Brands competitive environment physical environment

6. Why shopper marketing is that important on the consumer side: 6 68% brand switchers 5% loyal to a brand 73% shops with 5 different retailers 26% is loyal to a retailer Seeks for experience and authenticity

7. Why shopper marketing is that important. On the consumer side: 7 frustration confusion Too much!

8. Shoppers are not consumers! And vice versa. 8 Who drinks Coca Cola? Who buys Coca Cola?

9. Shoppers are not consumers! And vice versa. Who is the consumer? Where does he use my product? When does he use my product? How does he use my product and why? How can I increase the use of my product? Who does the shopping? Where does he do the shopping? When and how? Why does he buy this product or brand? How can I make the shopper buy MY brand? 9 80% of the buying decision happens INSTORE! Consumer marketing Shopper marketing SECOND MOT FIRST MOT

10. Shoppers are influenced in- and outside the store: 10 Outside the store Inside the store Demographics Retail circumstances Psychological element Mindset Family issues Time & budget pressure Personal issues Discovery Consumer advertising Senses SHOPPER MARKETING

11. Shopping segments 11 Lot of time Less time Like to shop Hates (daily) shopping Fun shopping Run shopping Impulse shopping Comparison shopping Shopping list No shopping list High spending Low spending Remark: Most of the shoppers are “multi- vidual ” Spend time Save time Save money Spend money Comparison shopping Fun shopping Convenience shopping Discount shopping

12. Shopper research Understand how shoppers think, plan, decide, interact with environment, and evaluate their experiences. Focus Groups Shopalongs In-store Shopper Groups Subject Matter Expert Interviews Ethnographic research Online and Traditional Surveys Advanced quantitative analytics Geographic data mapping Secondary subscription databases

13. What is a shopping barrier? A barrier is an element of the product offering or the retail environment that prevents a shopper from buying a brand. De-selection Barriers Ones that cause a brand to be “ruled out” on a cursory overview of the category Selection Barriers barriers that prevent a brand to be chosen upon closer consideration

14. Shopper Marketing is about overcome Shopping barriers De-Selection Perceived lack of need Low brand line-up or awareness Lack of “shelf pop” Habit change Prevent Selection Unconvincing Benefit; Performance Uncertainty Choice Confusion Usage Uncertainty Poor Value

15. Conclusions on Shopper barriers 15 1. Define the shopper barriers 2. Make a selection (1 – 2, KISS) 3. Define your shopper marketing execution plan

16. 16 6 steps, all linked with each other, towards an effective Shopper Marketing Strategy Get To know your shopper Define required insights Collection of internal existing data Shopper research based on insights needed Shopper Segmentation ... Shopper Demands, Shopper research methods, Shopper Barriers Get to know your Retailer Retailer strategy analysis Performance analysis Identify key contacts Identify key processes & way of working ... list of strategic retail partners, Category role per retailer, key priorities and opportunities Get to know your market Competitor SWOT Analysis Competitor portfolio assessment Define Category Role ... Ranking of competition & products, Category role Get to know yourself SWOT analysis Portfolio Assessment (BCG Matric) Product life cycle analysis P&L analysis ... Commercial Strategy, company capabilities, Product strategy 1 2 3 4 Execute & Measure Define activities Set action plan Identify involved departments & key stakeholders Set Backtimings Identify KPI’s ... Improved business results, continuous learnings Define Shopper Marketing Strategy Define action plan for each specific retailer based on the needs of all parties (company, retailer & shopper) involved ... Clear & Executional Shopper Marketing Strategy 5 6

17. 17 Combined into 2 phases, for a more logical workflow: 1 st Phase: analysis of yourself, your retailer & your shopper within the competitive market environment 2 nd Phase: Strategy definition, execution & measurement Define Shopper Marketing Strategy 5 Execute & Measure 6 Get to know your market 2 Get to know yourself 1 Get to know your retailer 3 Get to know your shopper 4

18. Most important shopper marketing trends The consumers get smarter & seek for relevance* Shopper marketing moves between smart shopping and pleasure shopper Digital evolution can cause shopper revolution Shopper marketing is more & more sensorial * Carre Associates Shopper Reseach 2010

19. 19 What makes The House of Marketing different?

20. We have a strong vision on marketing … 20 Marketing is a mindset throughout the whole company, and only happens through uncompromising and ruthless focus on the total process of customer engagement . Marketing is a key contributor to achieve business objectives and to optimize shareholder value . Our guiding principles are Focus, Agility, Creativity, Tangibility and Sustainability .

21. … and a clear view on how marketing must evolve 21 Simplicity Strategic consistency Leadership continuity Prioritize & making choices Consistent brand across all channels Seek leadership in specific category Customer centricity Focused team Detect trends & act Early warning systems & processes Agile & up to date organization Built around customer engagement Willingness to change Flexibility & Speed Innovative company culture Diversity of profiles Idea generation process Idea valuation Porosity & open-mindedness KPI’s & dashboards Scenario analysis & ROMI Connect with marketing intelligence Analytical culture & skills People: yours & every stakeholder Planet: ACT on innovation, packaging, promotion... Profit: business-minded marketers

22. We are convinced that flexibility is a key asset for the future to bridge capacity gaps... 22 Resource Demand Chart 1/95 4/95 7/95 10/95 1/96 4/96 1,000 2,000 3,000 4,000 5,000 FTE (hours per month) Project 1 Project 2 Project 3 Project 4 Capacity

23. …. and to bridge competence gaps 23 SocialMedia Strategist Project Management CRM specialist Shopper marketer Performance management CPM specialist Online specialist Mobile marketer Web master Data cruncher E-commerce Packaging ……… ………

24. Flexibility demands the right talent at the right place, & on going training The House of Marketing can help you develop and keep the right talents in your marketing department. 24 Training Coaching Relevant Marketing training, from general to very specific & tailor made - product management - project management - communication (online, offline) - social media - email marketing -…… Personal coaching focused on marketing related skills and technical skills Marketing Talent program Coaching on the job, one company or multi company program, more details available as from October 2012

25. We offer help adapted to the new business context 25 In a economical environment where turbulence is the new norm, The House of Marketing provides marketing excellence at the right moment, exceeding clients' expectations by delivering higher return on investment and by making the organization more agile . We achieve this by recruiting passionate marketers for whom we create an inspiring and nurturing environment.

26. 26 How do we work?

27. Brand Managers Broad FMCG experience Coordination activities of specialists in production, sales, advertising, promotion, R&D, … Churn analysis, churn reduction Product placement optimization Business Analysts Market & competitor analysis Market assessment & quantification Clustering of customers E-Marketers & Social Media Specialists E-strategy definition & roll-out Coordination, design & implementation of e-marketing actions Website management, email marketing, social media, mobile Marketing Managers Channel & Category Managers Process Managers B2B and B2C environments Marketing plan, go-to-market strategy & implementation, people management, business intelligence Coordination of Marketing activities Strong analytical and negotiation skills Enhancing retail partnerships by increasing category sales and aiding in fact based/strategic selling Extended experience in SME and large matrix organizations Alignment of organization towards similar goals Clear roles & responsibilities definition, organizational design We work on temporary assignments…. Mostly function based 27

28. … and on strategic marketing challenges Mostly project based 28 Attract new customers Increase customer spending Reduce customer churn Increase Innovation success rate Volume driven Margin driven Positioning Restore customer trust Capture more customer value Margin management Doing more with less resources Tracking of ROI Define or redefine positioning Changing customer experience from product push to relational (customer-centric) Positioning on the sustainability dimension Positioning towards current and potential employees Customer intelligence: translate data into relevant insights Segmentation Business and marketing planning Innovation Management Program Customer intelligence: translate data into relevant insights Category assessment Marketing performance management (ROMI, CLTV, dashboards) Marketing audit Consumer intelligence: translate data into relevant insights Customer (store) experience Sustainability Employer branding Consumer analytics and insights are crucial for each of the three challenges Client challenges THoM expertise & solutions

29. We offer a unique combination of strategic excellence and operational pragmatism 29 We help you in realizing more from your marketing strategies and building the marketing capabilities for systematic results Operational pragmatism Strategic excellence Proven track record in strategic marketing advice Creating relevant insights in the business Identifying the true leverages for significant improvements Turning opportunities into structured and prioritized business initiatives Track record in making things happen within international and complex companies Applying practical knowledge of successful corporate sales and marketing organizations Turning initiatives into tangible actions Helping you to successfully implement strategic recommendations

30. We deliver tangible value by bridging the knowing doing gap… 30 Operational pragmatism Strategic excellence

31. We have different meetings during an assignment 31 1st call Visit by SSO Mgr Proposal sent Interview Consultant(s) Contract signed PROJECT DELIVERABLES DEADLINE Define MLT strategy for product X Market analysis RGO identification + estimated revenues & final reco + budget Brand strategy Action plan 2008 End 2007 Launch Product Y Product chart (branding, positioning, USP, …) Launch approach Launch package Organization concept test Follow-up launch …. Coordinate client event ….. …. Objectives finalized Engagement follow-up Evaluation Knowledge capturing From initial call till 2 first weeks During the engagement Closing the engagement Internal EPR Client EPR

32. You are always hiring a whole team of marketing specialists 32 Hiring a THoM consultant isn’t just hiring a person, it’s acquiring expertise: THoM consultant: your day to day contact Counselor, Client Manager and Mentor: first help, coaching and stretched goals for the THoM consultant All THoM consultants with their specific skills, expertise and experience: the second resort for the THoM consultant THoM knowledge base (training, career development plan, books, papers, former projects, experience of previous THoMers ) Visible Invisible

33. We deliver Marketing expertise in four areas 33 I. Strategic Marketing II. Go-to-Market Market Intelligence Segmentation Branding & Positioning Pricing Product/ Brand/ Category Management Communication (offline & online) III. Organization capabilities IV. Performance Management Customer Process Management Organization & Change Management Customer Experience Marketing Dashboards Marketing Performance Management Customer Lifetime Value & ROMI Business & Marketing Planning Employer Branding Sustainability Social Media Shopper Marketing Customer Relationship Management Marketing Audit Marketing Coaching & Training

34. 34 For whom do we do this ?

35. 35 ICT & Media Utilities & Resources Financial & Other Services Healthcare & Public Sector Transport & Logistics We have clients from many different sectors (1)

36. Consumer Goods & Retail We have clients from many different sectors (2) 36 Durables & Industrial Goods

37. “We appreciated that the THoM team supported us in the bottom up approach involving customers, prospects, sales, specialists.” (Danny Vandevyver , Head of Marketing Com Belux ) … talking about the tangible value delivered by The House of Marketing 37 “ THoM’s pragmatic approach is to me a key differentiator, as they are able to talk the language of actual executors and to predict or foresee many operational issues we need to tackle.” (Ronald Hannet , BU Manager) “THoM succeeded in creating change thanks to their straightforward and efficient solutions and approach.” (Michael De Koster , Segment Manager) “The added value of THoM is that they do not only deliver strategic advice, but their recommendations are tangible and can be implemented .” (Luc Deflem , CEO)

38. Your point of contact 38 The House of Marketing tel: [phone] E-Mail: [email protected] The House of Marketing Kardinaal Mercierplein, 2 B-2800 Mechelen Belgium Fax [phone] www.thehouseofmarketing.be Join us on LinkedIn Follow us on Twitter