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.

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

1. How do you define Shopper

Marketing?

2. Why is Shopper Marketing more

important today than 20 years ago?

Shopper Marketing – an

evolution

Sales

Brand management

Trade marketing

Category management

Key Account management

Sales

Brand management

Trade marketing

Category Management

Key Account management

http://www.google.se/url?sa=i&source=images&cd=&cad=rja&docid=FhO0-ENenvl-TM&tbnid=Qy3AQXYDWmquBM:&ved=0CAgQjRwwAA&url=http://pdxretro.com/2011/03/sam-walton-born-on-this-date-in-1918/&ei=lI52Uoa7NKiO4AT50oBg&psig=AFQjCNEcNSK1WI7ElD2WfTJWgPi9gVlyDg&ust=1383587860900147

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.

2005

2013

MEDIA CLUTTER – SMART PHONES

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

SUMMARY… • Retail power

• Fragmented media channels

• Technology development

• Downturn in economy

SHOPPER MARKETING

….Shopper vs. Consumers

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

MOMENT OF TRUTH

ZERO MOMENT OF TRUTH

KNOW YOUR PATH TO PURCHASE

95 % OF THE PRODUCTS ARE

TODAY SOLD IN BRICK AND

MORTAR STORES

SHOPPER MARKETING

IS ABOUT UNDERSTANDING

HUMAN BEHAVIOR

Intuitive vs. Rational

System 1 vs. System 2

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?

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¢

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

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

• 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

= about 30 000-40 000 SKU:s

= 35-50 SKU:s

= 150-200 SKU:s (incl. seasonal products)

ASSORTMENT

29 850 products that you never buy or see?

= 99.5%

ASSORTMENT

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

COMMUNICATE VALUE

– PICTURES INSTEAD OF WORDS

Albert Heijn

Holland

Carrefour

Belgium

COMMUNICATE NEWS

– HELP THE SHOPPER

Kruidvat – Holland

COMMUNICATE EXPERTISE

ASDA UK DUNNES IRELAND

CHANGING BEHAVIOUR IS HARD

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)

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…

U N D E R S TA N D I N G T H E R E TA I L E R ?

OUR GAME PLAN

Retailer Manufacturer

Stores Sales reps

HOW TO REACH THE RETAILER

Brand/trade/sales

Retail HQ

Store staff

Shopper

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?

IMPORTANT STAKE HOLDERS

Store manager Little time

Many brands

Local strategy

Category/central Category perspective

Negotiations

Central strategy

How can our

brand support the

strategy of the

retailer?

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

Hygiene factors Assortment, shelf, DM, Social

Shopper solutions Connecting the category

with other categories

Hero

activities

HOW DO WE WORK WITH RETAIL CATEGORY PERCEPTION

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

Availability

Offer Communication

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

2. DEVELOP YOUR PACKAGING

AND DESIGN STRATEGY

Create brand visibility by having a packaging and design

strategy from a Shopper perspective

3. DIFFERENTIATE

BETWEEN CONSUMER

AND SHOPPER

Create communication that helps Shopper to buy.

4. UNDERSTANDING YOUR

BRAND FROM A CONSUMER

PERSPECTIVE

Create In-Store activities that drive added consumption for the

brand, category and store.

5. CREATE SHOPPER

SOLUTIONS

Create partnerships with complementary brands and

retail chains.

6. CREATE RETAIL VALUE

Create strategies that harmonize with the

chain's strategies.

7. CUSTOMIZE OFFER TO

CHANNEL AND STORE

STAFF.

Adapt your campaigns, range to the channel and the store

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.

9. SILO MENTALITY MINDSET

MUST BE BROKEN

10. COMBINE NUMBERS

WITH INSIGHT - SIMPLIFY

Brand/trade/sales

Retail HQ

Store staff

Shopper

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.

THANKS

Martin Moström

www.retailhouse.se

+46708-812630

Follow my blog at

retailhouse.wordpress.com

or LinkedIn