Putting Shopper Back Into Marketing

8/7/2019 Putting Shopper Back Into Marketing

http://slidepdf.com/reader/full/putting-shopper-back-into-marketing 1/4

M I L L W A R D B R O W N ’ S P O V

D e c e m b e r 2 0 0 7

Putting theShopper Back into Marketing

Budgets are owinginto shopper marketingas never before.But marketers hopingto maximize the returnon their investmentmust address two keypoint-of-purchasechallenges: rst, itsunique set of dynamicsas a communication

channel, and second,the fact that its fullpower lies in the wayit works with the pre-existing associationsand expectations that

consumers bring tothe store.

Shopper marketing is becoming an increasing focus for many of the world’smajor brands. A 2007 study conducted by Deloitte in the United States suggests

that the portion of marketing budgets devoted to point-of-purchase activitydoubled from 3 percent in 2004 to 6 percent in 2007, and is expected toreach 8 percent by 2010.

It’s not hard to understand these increases in spending in light of the fact thatreaching people using traditional means has become more dif cult. Mediaaudiences have fragmented among myriad channels, both digital and tradi-tional, and people who have been empowered with the ability to lter manyforms of communication are increasingly annoyed by unsolicited advertisingintrusions. But all consumers will eventually arrive at the point of purchase.Not only do advertisers know that they can make contact with shoppers there,but it is the place where the purchase decision will ultimately be made.

De ning Shopper Marketing

We use the term “shopper marketing” to refer to all the marketing thathappens within the retail space. More often than not, this form of location-speci c marketing is directed toward exactly the same person whom brandstarget outside of stores with TV and other forms of activity. While that mayseem to be a statement of the obvious, it is not readily apparent from many

observations of marketing in action. Too often we observe a complete lack ofintegration between in-store and out-of-store activity.

A factor that contributes to this problem is that the structure of manyorganizations separates in-store and out-of-store marketing practitioners.Some major companies seem to recognize this disconnect and are takingsteps to address it. P&G made headlines in the summer of 2007 when, intheir annual report, they restated 11 years of advertising-spend data, revisingthe totals to include all expenditure on in-store activity. While this may haveseemed like a tactic to allow P&G to erase an apparent decline in their ad-

vertising-to-sales ratio, the fact that the consumer packaged goods giant alsobegan to shift shopper-marketing executives into their brand groups seemedto indicate a more strategic motive: to effectively connect in-store activity withthe rest of marketing.

After all, when consumers enter a store as “shoppers,” they do not suddenlybecome blank slates. They arrive in a particular mood, having chosen

this particular retail outlet to ful ll their particular mission. Theyarrive with opinions concerning quality and value. But even moreimportant, they arrive with well-developed preferences for brands,

Gordon PincottChairman Global Solutions

Millward [email protected]

www.millwardbrown.comwww.mb-blog.com



In online retailing, the dynamics of identi cation are nodifferent. The objective is to make it easy for shoppers

to nd what they’re looking for. People who are lookingfor a specialized or obscure brand may be willing toclick through six screens to nd it, but those who arelooking for the best-seller will expect to nd it

When consumers enter a store as“shoppers,” they do not suddenly become blank slates; they arrive withwell-developed preferences for brands.

quickly, and are likely to take their searches elsewhereif they’re frustrated. It is also critical to think abouthow the brand will be presented online, where spaceis necessarily limited. Will shoppers readily identify abrand from a tiny packshot, a logo, or a description?

Strategy #2: Disruption For brands that are not category leaders, a disrup-tion strategy may be called for. Many aspects of thisstrategy will also be appropriate in categories wherethe consumer has no strong predisposition toward aparticular brand. Disruption often takes the form ofout-and-out bribery through a variety of nancialincentives, but may also be accomplished throughother types of in-store activity that attract attentionand highlight a brand’s unique bene ts. A brand witha highly distinctive appearance, for example, mightdistract the eye and thereby enter the consideration

set. When black and silver were the predominantcolors in the consumer electronics category, Apple’schoice of the color white for the original iPod helpedset that product apart from competing brands.

The Role of Packaging

Marketers who are willing to take a fresh look atpackaging issues may identify some new opportunitiesfor shopper marketing. Often, the development andevaluation of packaging are focused on its ability tocommunicate messages about the brand. But that isnot where the power of packaging lies. The familiarvisual cues of brands such as Coca-Cola, Duracell,and McDonald’s are powerful not because they

based on associations built up over time from advertisingmessages, word of mouth, and personal experience.

On average, across a wide range of categories in manydifferent countries, around two-thirds of people knowwhat brand they want to buy before they go into thestore. About three-quarters of these “intenders” followthrough on their plans. For shopper marketing to beeffective, then, it needs to work with the predisposi-tions people bring with them to the store. Two broadstrategies that can be employed to effect this areidenti cation and disruption.

Strategy #1: Identi cation For brands that are the preferred choice of manyconsumers, the key point-of-purchase task is to makethem as easy as possible for shoppers to nd. In abricks-and-mortar store, the location, scale, andvisibility of the xture, as well as the location andprominence of the brand within the xture, are essen-tial factors, as is the ability of the consumer to instantlyidentify the brand. A change in a brand’s location ora signi cant increase in its price may undermine thisstrategy by causing shoppers to hesitate and consideralternatives. And of course, in the execution of anidenti cation strategy, the ultimate sin is to be out ofstock.

We often observe a complete lack of integration between in-store and out-of-store activity.



Using In-Store Media

So against the two broad strategies of identi cationand disruption, what role do in-store media haveto play? The aforementioned Deloitte report sug-gests that “stores should be thought of like any othermarketing media,” but the busy environment of a retailoutlet is no place for the equity-building work that canbe accomplished outside of the store. While shop-ping, people are in a different mindset than when theyare watching TV or reading a magazine. TV advertisingworks because it provides brief moments of entertain-ment in a context where the viewer is looking to beentertained. Print advertising works because it pro-vides information or engagement in a medium wherethe reader is looking to be informed or engaged.In situations where shoppers want to be informed,engaged, or entertained, some new forms of in-storemedia may work well, but often shoppers do not wantto be distracted. While buying breakfast cereal, shop-pers don’t want to be regaled with dog food ads, alesson that Internet marketers learnt some time ago.

The busy environment of a retail outlet is no place for the equity-building work that can be accomplished outside of thestore.

communicate speci c messages but because they aredistinctive and instantly recognizable. Understanding a

brand’s core iconography and making it visible acrossall marketing material is a powerful and underlever-aged way of connecting in-store and out-of-storemarketing.

Packaging, therefore, can play a key role in both iden-ti cation and disruption. In China, Pepsi has recentlymade the bold and disruptive move of introducing ared can a direct challenge to Coke’s ownership ofthat color. Pepsi’s decision to “Go Red for Team China”(a reference to the upcoming Beijing Olympics) carriesa downside, the possibility of impeding identi cation ofthe brand among loyal Pepsi drinkers, but it may alsoprevent Coke from cementing its association with thecolor red in the vast Chinese market.

While a change in packaging is by de nition disruptive,a change that helps to standardize branding acrossproducts may ultimately improve identi cation. When,in 2006, Bayer Aspirin revamped packaging acrosstheir entire U.S. product line, their goal was not only toupdate the brand’s look but also to simplify the iden-ti cation of line extensions. The updated packaging,designed by the IQ Design Group, appears to haveaccomplished that goal: As of August 2007, total salesfor the brand were up 9 percent over the previousyear.

Distinctive or non-traditional packaging can also differ-entiate brands, even in categories such as clothing. Forexample, in the youth denim category, Shmack jeansare sold in shoeboxes, while Imperial Junkie jeans arepackaged in colorful plastic capsules.

While primary brand communication needs to takeplace elsewhere, packaging and other point-of-salematerial can be used to evoke previous messages,thereby extending the in uence of a brand’s out-of-store communication to the store shelf. Ideally theseconnections should be thought through ahead of time,when the out-of-store campaign is created, as it willoften be more dif cult and less effective to connectretail activity to an ad campaign that was conceived inisolation.



The notion of enticing the shopper is not compatiblewith the idea that the retail environment is a place

where manufacturers can bombard consumers withaggressive marketing messages. The lessons from theworld outside the store are clear. Communications aremost effective when they t the needs and moods ofconsumers. Shoppers who are on a mission will behappy when brand owners and retailers make it easyfor them to nd the brands they want. Shoppers inan open-minded, inquiring mood will be pleased toencounter useful, relevant information on alternativechoices. And shoppers with a few minutes to spare

may enjoy spending that time exploring new brandsand categories if these are presented in an engagingway.

The Shopper: Same Person, Different Context

We need to integrate our thinking and our actions sothat what we do in the store dovetails with what wedo outside. A shopper does not exist only within theretail environment, but is simply a person in a speci c

context with a particular mindset.

There are two keys to unlocking the power of shop-per marketing. The rst is to develop communicationswithin the point of purchase that acknowledge thatthe mindset and motivation of a person shopping arevery different from the mindset of someone watching,reading, or listening to ads at home. The second is tobuild presence in the store, with a robust understand-ing of the brand associations that already exist in the

minds of consumers as the result of communicationoutside of the store.

Shopper marketing should be a seamless part of themarketing discipline, considered and developed inconjunction with all the other marketing elements.There is a huge opportunity for those who reach outto achieve this.

To read more about Shopper Marketing, please visit

www.mb-blog.com.

In a task-driven shopping environment, communicationmust be tightly focused with short, clear, relevant

messaging, seeking either to rekindle existing brandassociations or to present a simple, compelling reasonto choose a brand. In some categories, where uncertainconsumers face a wide range of choices, aids todecision making will be appreciated. For example,in-store guidance that helps shoppers identify winesaccording to features such as price, region, grape, ormenu compatibility has been reported to increasecategory sales by as much as 20 percent.

Strategy #3: Enticement There is a third key in-store strategy, “enticement,” usedby both retailers and brand owners to encourage shop-pers to explore categories they may not have beenthinking about when they entered the store. Via storelayout, presentation, design, and lighting, shoppers canbe encouraged to spend more time browsing.

In a task-driven shopping environment,communication must be tightly focused with shor t, clear, relevant messaging.

A number of major U.S. supermarket groups are re-inventing themselves as more relaxed and comfortableplaces to shop, as they realize that the giant discounterWal*Mart is not going to be beaten at its own game.The U.S. company Safeway recently celebrated theconversion of its 1000th store to the new “Lifestyle” for-mat. This new store format features quality perishable

departments, prepared foods, and high-endprivate labels in an atmosphere made warm and invit-ing through its lighting, décor, color schemes, and wood

oors.

Taken to an extreme, enticement can become a formof “retail-tainment.” The queues that form outside theApple Store on Fifth Avenue provide a vision of what ispossible if you sell a desirable product range in a com-pelling retail environment.

Documents

Putting Shopper Back Into Marketing