1©2009 Winston Weber & Associates, Inc. 1 Confidential

Winston Weber & Associates, Inc

Shopper Insights, Merchandising and Marketing•A clear vision for shopper centricity •New skill requirements• Training programs and approach

Keith Conard David Zahn

2©2009 Winston Weber & Associates, Inc. 2 Confidential

Webinar Objectives

Provide a brief introduction to WWA and our unique training capability

As context for identifying the new skill requirements, share WWA’s definition of Shopper Insights, Shopper Merchandising and Shopper Marketing along with key structure and process overviews.

Outline the new skill requirements for both category management and sales personnel along with a high level overview of WWA’s training curriculum and approach

3©2009 Winston Weber & Associates, Inc. 3 Confidential

Winston Weber & Associates (WWA)

For 24 years WWA has provided customized solutions to retailers and CPG manufacturers worldwide .

Retailer Solutions

• Strategic Direction

• Organization/Process Design

• Store Merchandising Execution

• Merchandising Support System Guidance

• Center Store Space Optimization

• Category Management

• Shopper Centric RetailingSM

• Supplier Collaboration

• Skills Development

CPG Manufacturer Solutions

•Strategic Direction

•Organization/Process Design

•Customer Alignment

•Retail Customer Collaboration

•Category Management

•Brand Marketing

•Trade Promotion Optimization

•Merchandising Solutions

•Skills Development

4©2009 Winston Weber & Associates, Inc. 4 Confidential

WWA Leadership Highlights

Introduced concept of trading partner collaboration to US in 1985…later in Mexico, Australia and Asia.

Recognized worldwide as one of the original architects of category management.

A resource for the Joint Industry Project on ECR: The Category Management Report

Recently introduced Shopper Centric RetailingSM …the next generation model beyond category management.

One of the industry’s leading experts on shopper insights and shopper marketing transformation

GMA’s Forum Magazine- 2008

WHITE PAPERWINSTON WEBER & ASSOCIATES, INC

Shopper Insights and Shopper Marketing

“Getting it Right”

By: Win Weber

Published in April, 2009

5©2009 Winston Weber & Associates, Inc. 5 Confidential

The expertise of our chief instructional designer, combined with the industry experience of our senior consultants

provides a unique training capability

Instructional Designer WWA Consultants

• David Zahn is recognized industry wide for his expertise in instructional design, development and delivery of training programs.

• Twenty years of training and consulting for the FMCG and retail industries

• Experience in organization design, employee development, training, competency enhancement and behavioral change.

• Consultants all have 20+ years of operational and consulting experience

• Deep understanding of both Retailers and CPG Manufacturers

• Extensive expertise in:‐ Sales strategy‐ Customer strategies‐ Category

management‐ Shopper Insights,

merchandising and marketing

Customized training that is highly relevant to the participants

•Reinforces the integrity of program content

•Ensures the ease of translation from the classroom to business building application

•Virtually guarantees the highest return on investment for our clients.

WWA Training Advantage

6©2009 Winston Weber & Associates, Inc. 6 Confidential

WWA offers a wide range of training programs that focus on “operational” and “technical” skills

Brand/Category Analysis

Trade Promotion

Effectiveness

Basics of Financial

Understanding

CategoryManagement

Shopper/ConsumerInsights Application

DevelopingEffective Sales Presentations

Retailer Insights/Practices

Customer Business Planning

Customer Penetration and

Collaboration

Effective Third-Party

Management

Business Analysis and Understanding

Strategic Customer Development

Category Management and Shopper Insights

Core Business SkillsTeam/Regional

Management Skills

Shopper CentricSolutions Planning

7©2009 Winston Weber & Associates, Inc. 7 Confidential

The need for change and for new skills is being driven by a rapid shift to a shopper centric environment

Leading retailers are now placing greater emphasis on the “demand side”… the shopper and the shopping experience

Store is becoming the primary demand generator… it is the shopper’s knowledge source

Over 70% of final purchase decisions are made in the store… at the shelf

Store must be an information resource and facilitator that helps the shopper make satisfying decisions

The ability of the store to help shoppers make good decisions determines loyalty to the store, department and category

8©2009 Winston Weber & Associates, Inc. 8 Confidential

WWA’s definition of Shopper Insights and the Key Activation Points

Shopper Insights

Insights necessary to understand the shopping experience including shopper need states, shopping occasions, shopper behavior in-store, drivers behind the purchase decision at the shelf and reaction patterns to particular in-store stimuli

Shopper Merchandising• Improving the shopping experience

through better assortment, shelf arrangement, fixture design, shopper communication and displays

• Plan-o-gram aligned with shopper needs• The realm of category management

Shopper Marketing• The employment of marketing stimuli,

developed based on a deep understanding of shopper behavior, designed to build brand equity and/or store banner equity, engage the shopper and lead him/her to make a purchase

Consumer Marketing• Product development• Packaging Communication• Pre-store marketing• Direct to Consumer promotion

Activation in 3 Areas

…is solutions focused and more operationally aligned with most organizations

Confidential ©2009 Winston Weber & Associates, Inc. 9 Confidential

The Shopper Insights/Shopper Marketing function should have the ability to identify, develop…

Strategy formulation for Shopper

Insights/Marketing

Strategy formulation for Shopper

Insights/Marketing

Lead Ideation on Merchandising

Concepts

Lead Ideation on Merchandising

Concepts

Engage Resources for Concept

Development and Execution

Engage Resources for Concept

Development and Execution

Research Selection and Execution

Research Selection and Execution

Distill Research into Insights,

Conclusions and Growth Concepts

Distill Research into Insights,

Conclusions and Growth Concepts

• Understand brand strategies and fit within marketing mix

• Identify key shopper marketing opportunities

‐By brand‐By channel/retailer

• Align Shopper Marketing opportunities with retailer/banner opportunities

• Ideas may be:‐ Consumer facing‐ Customer facing

• Multi-expertise ideation session interpreting:‐ Existing research‐ Customer Research

• Customer ideation sessions

• Develop merchandising solutions

• Test and evaluate in-store merchandising solutions

• Direct Customer interface with account teams

• Manage merchandising solution providers

• Establish baseline and performance metrics

• Enhance consumer decision trees

• Identify shopper segments and need states

• Understand key purchase drivers by segment and need state

• Identify most promising opportunities for generating sales growth

• Mine existing consumer and shopper research

• Determine additional research requirements

•Conduct Customer Specific Shopper Research

• Maintain shopper research knowledge repository

• Manage shopper research partners

and implement differentiated merchandising concepts that drive sustainable growth

Confidential ©2009 Winston Weber & Associates, Inc. 10 Confidential

Shopper Insights directional perspective… several alternatives will emerge

Strategy/Other

ShopperInsights

Category Management

ConsumerResearch

Corporate

Insights Support “Center of Excellence”

FunctionalHead

ShopperInsights

CorporateCategory

Management

Sales

Shopper Insights within Sales/Customer Development

FunctionalHead

Also, a few in Shopper Marketing and Consumer Research

Organizational structure and process redesign will be necessary

Shopper InsightsTypical Structures

©2009 Winston Weber & Associates, Inc.

Confidential ©2009 Winston Weber & Associates, Inc. 11 Confidential

Shopper Marketing directional perspective… several alternatives will emerge

Also, a few in located in Marketing; some combining Shopper Insights/Marketing

Organizational structure and process redesign will be necessary

Shopper Marketing within Sales/Customer Development …embedded in Marketing

ShopperMarketing

ShopperInsights

Sales

Shopper Marketing within Sales/Customer Development

FunctionalHead

CorporateCategory

Management

ShopperMarketing

ShopperInsights

Sales

FunctionalHead

CorporateCategory

Management

Marketing

Embedded

Shopper MarketingTypical Structures

©2009 Winston Weber & Associates, Inc.

Confidential ©2009 Winston Weber & Associates, Inc. 12 Confidential

The structure and cross functional roles will determine the knowledge and skill development requirements for the various functions

Marketing

Retailer

ConsumerResearch

Field Shopper Insights

HQ Shopper Insights

Field Category Management

Sales TeamsCustomer Marketing

HQ Category Management

Field Shopper Marketing

HQ Shopper Marketing

360o Integrated Marketing Solutions

As a starting point, most companies build off of their category management capability

13©2009 Winston Weber & Associates, Inc. 13 Confidential

There are two macro processes that provide the framework for knowledge transfer and application

Identify Category and Brand

Opportunities

Identify Category and Brand

Opportunities

Push Insights and Concepts to

Sales/Cat.Mgt

Push Insights and Concepts to

Sales/Cat.Mgt

Sales/Cat.Mgr Develop Customer

Application and Activation

Sales/Cat.Mgr Develop Customer

Application and Activation

FoundationalResearch

Selection and Execution

FoundationalResearch

Selection and Execution

Distill Research into Insights,

Conclusions and Growth Concepts

Distill Research into Insights,

Conclusions and Growth Concepts

1. Shopper Insights “PUSH” to the Customer

Retailer and/or Supplier Identifies

Shopper Opportunity

Sales and/or Cat. Mgt clarify the

business question

Research Selection and

Execution

Ideation on Merchandising

Concepts

In-store Activation

2. Shopper Insights “PULL” from the Customer

Key Functions involved in Shopper Insights Knowledge Transfer and Application

•Consumer Research•Shopper Insights

•Customer•Sales team Leader•Account Managers•Brokers

•Cat Mgt Leaders•Category Managers

•Consumer Marketing•Consumer Promotion•Customer Marketing•Shopper Marketing

14©2009 Winston Weber & Associates, Inc. 14 Confidential

It will be necessary to build upon traditional category management skills to include shopper insights capabilities

Today Tomorrow

Category Management

Linear thinking

More tactical

Understands purchase dynamics and the consumer

Uses syndicated information and databases to understand and interpret data (numbers)

Deductive reasoning by “boiling the ocean” and analyzing all available research

Presents research

“One size fits all” actions

Shopper Insights

Open ended reasoning

More strategic

Understands and interprets purchase dynamics, the consumer and the shopper

Interweaves syndicated information, consumer insights and shopper insights

Inductive reasoning by ”theorizing opportunities” and confirming with analysis

Interprets research

Customized solutions

15©2009 Winston Weber & Associates, Inc. 15 Confidential

Shopper Insights/Merchandising/Marketing training programs should fulfill the following knowledge and skill requirements

Understand the key drivers of the Market Place looking forward and the need for “Shopper Centric, Solutions Oriented Planning”

Understand the key components that must be in place to create an effective shopping experience

Learn the process for an effective Shopping Experience Audit

Learn the most commonly employed consumer and shopper research methods and their application to different types of shopping experience questions

Understand important shopper insights concepts such as shopper segmentation, trip missions, decision trees, shopper need states, solution groupings , etc

Identify key components of a shopper solutions strategy

Learn to incorporate the 4 P’s and key shopping experience strategies into a cohesive plan that connects with the shopper and the shopping experience

Learn the steps for breakthrough ideation and collaboration with retailers on developing actionable shopper solutions

Learn importance of developing broader retailer contact points including merchandising, marketing and operations to develop and execute Shopper Centric Solution Plans

Understand methods for evaluating and measuring ROI on in-store merchandising and marketing solutions

16©2009 Winston Weber & Associates, Inc. 16 Confidential

Key Elements of Shopper Insights/ Merchandising/Marketing Training Curriculum

Key Shopper Centricity Concepts/Definitions

Key Shopper Centricity Concepts/Definitions

Assessing the Shopping Experience

Assessing the Shopping Experience

Consumer/Shopper Insights

Consumer/Shopper Insights

• The marketplace “looking ahead”

• What is the path to purchase and the role of Shopping Experience

• Understand the two types of self serve shopper behavior and how shoppers shop a category

• Key definitions− Shopper Insights− Shopper Merchandising− Shopper Marketing

• The need for “Shopper Centric , Solutions Oriented Planning

• Key components of an effective shopping experience

• The shopping experience audit process

• Identifying shopper solution opportunities/key business questions

• Identification of most commonly employed consumer and shopper research methods

• Design of various research methods

• Application of research to different types of shopping experience questions

17©2009 Winston Weber & Associates, Inc. 17 Confidential

Synthesizing Data into Insights

Synthesizing Data into Insights

Shopper Solutions Development

Shopper Solutions Development

Shopper Solutions Activation

Shopper Solutions Activation

• Approaches to assessing and analyzing performance

• Synthesizing data from multiple sources

• Shopper insights concepts

− Shopper segmentation− Trip missions− Shopper decision trees− Shopper need states− Solution groupings− Etc.

• Key components of a shopper solution strategy

• SWOT analysis to identify strategic imperatives and tactical initiatives

• Prioritization of potential strategies and tactics for shopper solution development

− 4 P’s− Shopping experience

enhancements

• The concept ideation process and effective collaboration between retailer and manufacturer

• Project implementation checklist

• Developing customer relationships beyond category management and merchandising

• Organization integration strategies and techniques

• Methods for evaluating and measuring ROI on in-store merchandising and marketing solutions

Key Elements of Shopper Insights/ Merchandising/Marketing Training Curriculum (cont’)

18©2009 Winston Weber & Associates, Inc. 18 Confidential

Customized training that is highly relevant to participants

We believe training of this type should be customized as this reinforces the integrity of program content, ensures ease of translation from the class room

to business building application and virtually guarantees the highest ROI

Program Content is customized to the clients approach and capabilities on shopper insights and marketing

• Consumer and Shopper Insights availability and application• Sales and Marketing Planning process• Category Management Approach• Shopper Marketing Approach

Breadth and depth of the training curriculum is customized to the participants and the level of skill development required

• Shopper insights managers and analysts• Category managers and category advisor’s• Sales team leaders and managers

Program structure is customized based on the time and investment available

• 1 day orientation workshop

• Advanced 2 day workshop using select modules

• Two - 2 day advanced training workshops

19©2009 Winston Weber & Associates, Inc. 19 Confidential

SkillsInventory (1)

Orientation/Advanced Training

OrientationTraining

OrientationTraining

SkillsInventory (2)

Reinforce/Institutionalize

Shopper Insights knowledge/skills development must be aligned with roles, responsibilities and near term business needs

The ProcessProgressive developmentof knowledge and skills

based on mostimmediate needs by

functional level

Skills inventory to determine skill needs of the first and second level managers who must be prepared to perform new responsibilities ASAP

Based on outcome of skills inventory, design and conduct training for aforementioned first and second level managers

Conduct orientation for select Sales Managers focused on application of Shopper Insights

Conduct orientation for Field Category Managers focused on application of Shopper Insights

If necessary, consider conducting skills inventory of Field Category Managers to identify available talent as transformation to shopper insights continues

Assess progress and determine plan to reinforce and institutionalize the training

(Client Example)

20©2009 Winston Weber & Associates, Inc. 20 Confidential

• Growing importance of shopper data analysis and longer range planning.• Growing importance of providing merchandising innovation and strategic support.

• Growing importance of having a general management mind set; thinkers and doers.

SituationalAssessment

SituationalAssessment

Trends Influencing

Future SkillsRequirements

Trends Influencing

Future SkillsRequirements

• Over past 15 years most training investment focused on building category management skills…minimal investment on Sales/Customer Team Leader management skills development.

• Multiple streams (sales, category management, shopper insights, shopper marketing) interfacing with customer…sales role becoming increasingly diluted. Key question…Who owns the retail customer business development strategy and is accountable for performance?

Team LeaderSkills

DevelopmentFocus

Team LeaderSkills

DevelopmentFocus

Sales/Customer Team Leader skills must also evolve to meet the needs of retailers in today’s dynamic industry environment

• Understanding of category management, shopper/consumer insights , shopper marketing, marketing and finance through career path exposure or training.

• The ability, from a general management perspective, to coordinate and decide cross functional, customer specific initiatives

• The ability to conceptualize problems and solutions…strategic thinking.• The ability to engage in productive strategic collaboration at the highest levels.

Must have the knowledge and skills to be the hub and leader of all customer management activity

21©2009 Winston Weber & Associates, Inc. 21 Confidential

David ZahnCompetency Enhancement LeaderWinston Weber & Associates, Inc.davidzahn@winstonweber.com www.winstonweber.com203-269-9290

Keith ConardExecutive Vice PresidentWinston Weber & Associates, Inc.kconard@winstonweber.com www.winstonweber.com614-202-7292

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