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Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com

Insight Fuelled Shopper Marketing - Engage Shopper Marketing

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Page 1: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com

Page 2: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com

Thank you to our sponsor & partners!

Gold Sponsor

Supported by

Organised by

Page 3: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight-fuelled Shopper Marketing

Connect with us for all of the latest shopper marketing news from around the globe!

facebook.com/engagetheexperts

twitter.com/shopperexperts

www.engageconsultants.com

Page 4: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

We have helped over 100 companies across Asia

Identify massive growth opportunities

Identify huge savings in trade spend and marketing

Configure teams to be most effective

Develop people to be able to make a difference...

We help consumer goods companies…

Page 5: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Marketing used to be simple

Developing powerful brands

Drive depth of distribution

Page 6: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

The consumer communication world is fragmented; and is fragmenting further at unprecedented rates

0

50

100

150

200

250

300

350

400

450

Mobile advertising

Global internet

Interactive TV promotions

In-game advertising

U.S. product placement

Global cable/multichannel

Global broadcast

U.S.MSO advertising

Global radio and outdoor

Global magazine

Global newspaper

U.S.local station

New ad formats

22.4%

Traditional ad formats

77.6%

41

20

19

19

20

5

5

5

5

4

2

2

CAGR (2006-2010)

Global advertising spend by category

Source: Morgan Stanley

As media continues to fragment, reaching consumers is increasingly more expensive

Page 7: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Grabbing and keeping the interest of consumers is getting more and more tricky

Page 8: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

The journey from consumer desire to a sale is getting more complicated

74%

75%

76%

77%

78%

79%

80%

81%

82%

83%

84%

Traditional media Internet sources In-store marketing

Source used by media type

Source: Google inc. 2011

Page 9: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

More and more money is spent in the belief that this “First moment of truth” is critical

19781998

2005

Expenditure as a proportion of budget

Advertising & Media Consumer Promotion Trade Promotion

Page 10: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

In-store media use Thailand

0

100

200

300

400

500

600

Skincare Milk & dairy

products Hair Care Detergent /

Fabric care Motor

vehicle Toothpast &

toothbrush Prepared

food

2011 2012

In 2012, in-store media spending of consumer products rose 69% to 2.7 billion compared to 2011

Page 11: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

70% of promotions lose money – US$ 196 billion could be wasted every year

Source: Manufacturer data & analysis, Nielsen Data, (CAS GMBH)/ Analysis/Trade Insight Trade global spend survey/ Deloites

Manufacturer : Win

Retailer: Lose

Manufacturer : Lose

Retailer: Lose

Manufacturer : Win

Retailer: Win

Manufacturer : Lose

Retailer: Win

60%

10% 15%

15%

Page 12: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

What is shopper marketing?

“The systematic creation and application of elements of the

marketing mix to affect positive change in shopper behavior in order

to drive consumption of a brand”

Page 13: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

True, integrated, shopper marketing creates coherent links between the end consumer and the in-store

environment

Shopper behavior

Consumer priorities

Channel priorities

In–store marketing

Investment

Insight is required to understand this entire ‘journey’

Page 14: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Define and quantify clear consumption opportunities

Occasions

Experience

Needs and desires

Availability to consume

Why

Where Why NOT?

When What

Opportunity

Who

Page 15: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Understand the differences between your consumers and your shoppers

Page 16: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Changing consumer behavior…

Page 17: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Requires shoppers to change behavior too

Page 18: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Knowing the shopper

Who is the target shopper?

What is their current behavior?

What is their desired behavior?

What evidence exists to suggest that this change is possible?

Page 19: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Shopper marketing created a new way of looking at shoppers, channels, and priorities

0

5

10

15

20

Hypermarket Supermarket Convenience store

Traditional trade (urban)

Traditional trade (rural)

Performance barrier Brand barrier Price barrier Availability barrier

Opportunity size for monthly purchase

Page 20: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

One killer insight… a consumer isn’t a shopper…

0%

20%

40%

60%

80%

100%

City Urban Rural

Hypermarket Supermarket Convenience store

Traditional trade (urban) Traditional trade (rural) Others

Main shop for “Category Z” purchase

Huge percentages of the rural opportunity could be accessed (or influenced) via the modern trade

Hypermarket is the key channel for city while traditional trade contributes more than XX% in urban and rural areas

Page 21: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Mapping target shoppers onto channels to help prioritize

0

5

10

15

20

Hypermarket Supermarket Convenience store

Traditional trade (urban)

Traditional trade (rural)

Taste rejecter Brand barrier Price barrier Distribution barrier

Opportunity size for monthly purchase

Over 40% of the opportunity could be accessed in modern trade

Page 22: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Invest in an integrated in-store marketing mix

Offer Communication

Changing shopper behavior

Availability

Page 23: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Changing shopper behavior often works better with a blend of activity

Encouraging shoppers to buy across the range

Merchandise in ranges rather than by product

type

Deals to buy across the range

Signage which shows system usage

Page 24: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Availability should be the primary focus

People can’t buy a product that they can’t find!

Page 25: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Communication is about understanding the target shopper, the message and the media

What message is critical to taking the shopper to purchase?

Which barriers need overcoming?

Where should the message be delivered?

Which media is likely to work in this environment?

How much time do we have to deliver a message?

What will retailers allow?

Page 26: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

An effective promotion must change shopper behavior

Supports consumption growth by

changing shopper behavior

Profitably meets company objectives

Profitably meets customers’ objectives

Page 28: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

The best in-store promotion ever!

Page 29: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight is required to answer five key questions

What consumption opportunities

exist?

Which shoppers

will support these?

Where can you

influence these

shoppers?

What is required in-store?

What investment is needed?

Let’s connect!

facebook.com/engagetheexperts

twitter.com/shopperexperts

Page 30: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Find out more in “The Shopper Marketing Revolution”

Find out how integrating the disciplines of consumer marketing, shopper marketing and customer management can step change consumer goods’ performance. Learn about Total Marketing - an approach that creates coherent links between the end consumer and the in-store environment. Total Marketing will enable marketers to adapt strategies and resources to respond effectively to new shopping behaviors and environments.

“A treatment on modern marketing… and for those on the fast track of modern business is a must read” Paco Underhill, Author of “Why We Buy: The Science of Shopping. “(The Shopper Marketing Revolution) provides a clear and practical framework to guide organizations in making the necessary changes to successfully navigate and prosper from this new and exciting business environment.” Brian Harris, Chairman, The Partnering Group >> shoppermarketingbookchapter.engageconsultants.com

Page 31: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com

Thank you to our sponsor & partners!

Gold Sponsor

Supported by

Organised by

Page 32: Insight Fuelled Shopper Marketing - Engage Shopper Marketing

Insight Valley Asia 2013 | May 16 & 17 | Bangkok, Thailand | www.insightvalley.com