19
1 FIXING THE MAJOR “FLAWS” OF SHOPPER MARKETING By Paul Stanley This publication will spotlight and condense the ‘Flaws of Shopper Marketing’ as told through three independent Shopper Marketing Studies/Reports; providing the foundation to suggest potential ‘fixes’ to help manufacturers/marketers maximize their marketing & sales spends/ROI, leverage back brand power with both consumers & retailers and to truly empower the sales force A Look into Three Recent Industry Shopper Marketing Studies/Reports Shopper Marketing 4.0 The Booz & Co. Study and Report 2010 Shopper Marketing Best Practices A Collaborative Model for Retailers and Manufacturers Ad Age Insights Shopper Marketing 2011/First Quarter Trend Report ‘Racing Along the Path to Purchase’ Their consensus to the Flaws Suggestions of solutions to fix those Flaws Empowering the Manufacturer Brands & Sales Forces-Simultaneously The Ad Age Insights Trends Report begins by asking the question of “Why Shopper Marketing Now?” They answer in part…”The shifting power balance between brand manufacturers and retailers drives the growth of shopper marketing…” That “shift” has been going on for some time, as has the erosion of traditional ‘platforms’ (broadcast, media, sales promotion, etc.), to new heights‘, and thus, Shopper Marketing has now become the hot topictoday. Flaw: Shopper Marketing is not well defined (as pointed out in the studies) Flaw: It’s not measurable (ROI) Flaw: ”It’s throwing tactics against the wall to see what sticks” Flaw: Manufacturersexisting Silos (marketing, sales, categories, divisions) and agenciesand Vendorsexisting Silos And the biggest Flaw: Shopper marketing as currently utilized is totally dependent on cooperative retailers, or a true collaborationbetween retailer and manufacturer.

^FIXING THE MAJOR FLAWS OF SHOPPER MARKETING

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

1

“FIXING THE MAJOR “FLAWS” OF SHOPPER MARKETING” By

Paul Stanley

This publication will spotlight and condense the ‘Flaws of Shopper Marketing’ as told through

three independent Shopper Marketing Studies/Reports; providing the foundation to suggest

potential ‘fixes’ to help manufacturers/marketers maximize their marketing & sales spends/ROI,

leverage back brand power with both consumers & retailers and to truly empower the sales

force

A Look into Three Recent Industry Shopper Marketing Studies/Reports

Shopper Marketing 4.0 – The Booz & Co. Study and Report 2010

Shopper Marketing Best Practices – A Collaborative Model for Retailers and Manufacturers

Ad Age Insights – Shopper Marketing 2011/First Quarter Trend Report ‘Racing Along the Path to

Purchase’

Their consensus to the ’Flaws’

Suggestions of solutions to fix those ’Flaws’

Empowering the Manufacturer Brands & Sales Forces-Simultaneously

The Ad Age Insights Trends Report begins by asking the question of “Why Shopper Marketing

Now?”

They answer in part…”The shifting power balance between brand manufacturers and retailers

drives the growth of shopper marketing…”

That “shift” has been going on for some time, as has the erosion of traditional ‘platforms’

(broadcast, media, sales promotion, etc.), to new ’heights‘, and thus, Shopper Marketing has now

become the ‘hot topic’ today.

Flaw: Shopper Marketing is not well defined (as pointed out in the studies)

Flaw: It’s not measurable (ROI)

Flaw: ”It’s throwing tactics against the wall to see what sticks”

Flaw: Manufacturers’ existing Silos (marketing, sales, categories, divisions) and agencies’

and Vendors’ existing Silos

And the biggest Flaw: Shopper marketing as currently utilized is totally dependent on

cooperative retailers, or a ‘true collaboration’ between retailer and manufacturer.

2

Without ‘true’ collaboration—all reports state & agree—‘Shopper marketing does not exist’.

Yet, nothing in these studies/reports suggests how to forge/obtain that retailer collaboration.

If anything, the reports further demonstrates no ’true‘ manufacturer leverage over retail—with

retail power only continuing its (private label) growth—and in some cases, its devastation.

The good news is that these reports did provide and acknowledged Shopper Marketing

weaknesses or ‘flaws’; identifying problems, thereby allowing for potential solutions.

This White Paper deals with those potential solutions.

There is indeed a big opportunity for manufacturers, brands and retailers to capitalize on the Rich

Data available today.

A key in putting the power back into the manufacturer/brand is in creating exclusive

manufacturers’ Intellectual Properties, from that data, that empowers their marketing and sales

through proprietary leverage-able platforms.

Manufacturers’ Intellectual Property platforms are exactly what these studies/reports appear to

be searching or calling for that can indeed fix the ‘flaws’ in Shopper Marketing, as defined by

them.

The fact is that manufacturers’ Shopper Marketing platforms can be built upon a model of pre-

secured ROI in both sales and media and be highly measureable and accountable.

The following is a brief synopsis of the ‘Flaws’ reported in all three reports from which I will

draw my conclusions and opportunities.

I will be using the term SMART PLATFORMS™; an acronym for integrated platforms of Sales,

Marketing And ROI Together…Customized for the world of Shopper Marketing platforms;

Shoppers, Manufacturers, Analysis, Retailers, Together.

A SMART PLATFORM™ model is a manufacturers’ Intellectual Property platform that integrates

both marketing and sales objectives from the start.

The model/platform creates original and perpetual content; customizes for sales and media

channels objectives—pre-securing ROI from them both.

Further, in the interest of ’True Collaboration’ (a major Tenet of Shopper Marketing and these

reports), manufacturers’ SMART platforms allow the “earned” inclusion of sales channels’

marketing and sales objectives, including; individual themes, positioning, cross-aisle, loyalty

programs and non-competitive private label.

3

Manufacturers’ IP Platforms can also forge and perpetuate non-traditional brand partnerships and

channels, community/benevolent give-backs and the bringing down of the silos—internally for

manufacturers, and externally—agencies, media and vendors.

All of which delivers multiple and currently “unforeseen” benefits and much needed ‘Re-

engineered’ manufacturer, brand and sales force “power”

THE STUDIES AND REPORTS—A BRIEF SYNOPSIS OF EACH AND THE OPPORTUNITIES… Report 1 - Shopper Marketing 4.0-The Booz & Co. Study and Report 2010 The Booz & Co. study identifies “taxonomy of shopper marketing vehicles organized into seven

major vehicle platforms”—49 vehicles in all—encouraging marketers to somehow “hit or miss” on

the right “Platform” creation through ’vehicle‘ combinations in hopes of delivering Brand

marketing and sales objectives—based on shopper marketing ‘insights’.

Booz & Co. Shopper Marketing 4.0 Charts of Platforms and “Vehicles”

In this chart, the ’hit or miss’ is most evident where the Report states, “It is crucial to have a

strong measurement capability to gauge their true incremental impact” meaning, before you

waste too much money or time.

4

The study offers the following definition; “insights about what shoppers want and why they

behave as they do are the currency of Shopper marketing”.

I agree the data collected today can be very valuable if properly utilized in a highly focused and

workable model.

The report continues, ”these ‘insights’ provide the basis for more effective calendars’ of events

around which annual Shopper Marketing programs can be organized and integrated”.

Agreed, and the data/insights along with other available research and analytics are the ’DNA‘ of

what SMART PLATFORMS™ should be built upon to begin with for both manufacturer and

retailer.

Booz & Co. goes on to suggest that these ‘insights’ are now utilized to somehow build a platform

made up of some combination of the above chart of 49 vehicle choices. The choices encompass

virtually all traditional forms of marketing and sales and ’new media‘, now ranked or ‘voted upon’

by marketers and agencies for their effectiveness. For instance, ‘ranked vehicles’ include off-shelf

retail displays, FSIs, in-store coupons, social media, etc., and ‘somehow’ get integrated into a

brand marketing and sales platform based on ‘effectiveness’ rankings, shopper insights, retailer

and brand objectives.

At the same time, the study states the following ’conclusion‘ to making shopper marketing work—

which I believe is the most relevant part of this study—however, there are no suggestions on how

to accomplish the following conclusion:

“The ability to build (manufacturers’) integrated marketing efforts that work…will

require the elimination of sales and marketing silos and greater coordination across

Shopper Marketing, brand advertising, promotions, merchandising and events”…

I would submit that, internally, it should also include marketing, sales, brands, categories and

divisions while externally, the plethora of marketers’ agencies and vendors.

But how do you bring down the silos, without having a ’lightening rod’ of sorts, or a Platform to

’rally around‘, that can focus and integrate all individual ’silo’s‘ business and political objectives.

I call this ‘missing piece’ ‘air traffic marketing control’.

Another critical ’insight’ of the study in building this marketing and sales platform/vehicle is to:

“Bring retailer strategies and store policies to bear on manufacturer strategy” and “…apply

insights to engage retailers in more effective collaborations, enabling a shift from buying into

retail programs to helping shape them”.

5

They are quite correct—this is very key—only I do not believe the good people at Booz & Co. have

had to sell to, or ’help shape‘, anything at Wal-Mart, nor is it mentioned that retailer programs are

huge ‘money makers’ for retailers and created primarily for that reason (e.g. Wal-Mart in-store

‘TV’).

Even ‘armed’ with shopper marketing insights and some concoction of traditional marketing and

promotion vehicles in one hand, manufacturers’ sales forces still have their hat in the other hand

during retail sales calls today.

One means to consider in accomplishing the crucial true retail collaboration is simply to ’Fight Fire

with Fire,’ or in other words, have something to ‘truly‘ leverage.

For example, a retailer’s “Achilles Heel” are their competitiveness and fierce fight for

consumers and community dominance (especially today with stores competing on multiple

levels—Food, Pharmacy, Dry Goods, etc.). This competitive “Achilles Heel” insight can arm

manufacturers with something to leverage with the retailer (I call it the ’Big Stick‘) totally

exclusive to the manufacturer and/or brand(s)…” retailers have to fight for every dollar

that consumers are willing to spend today”

Retailers, who want to participate in an exclusive manufacturer’s/Brand marketing and sales

Intellectual Platform, (or conversely, not be left out competitively), must agree to participation

requirements dictated by the brand marketer, which, first and foremost is based upon

manufacturer and brand marketing, sales and ROI objectives — and then customized for each

participating sales channel objectives—a ’true collaboration’ for the good of all—“you wash my

back, I’ll wash yours”.

The Booz & Co. report suggests a ‘wheel‘ in developing the most effective brand marketing and

sales Shopper Marketing platforms or ’best practices’/ ‘course of action’ as

6

The “Flaw” in the ‘best practices wheel’, here again, assumes a cooperative retailer, while in

essence, continuing a subservient brand/manufacturer positioning and relationship.

I would submit that the Booz & Co. ’wheel of action’ should move No. 2 to No. 4 and therefore,

No. 1 remains the data/insights gathered; No. 2 becomes the exclusive creative/content

development from those insights; No. 3 becomes create/build an original Intellectual Property

brand marketing and sales vehicle/platform; No. 4 becomes customize the brand exclusive IP

platform for retailer objectives and strategies—who EARN it through ’true collaboration’ and No.

6, program execution, should provide and deliver a true ‘turnkey’ activation for both manufacturer

and sales channel.

The Booz & Co. model puts the manufacturer’s/ brand’s needs second to the retailer’s; promoting

an inferior manufacturer negotiating position from the start, versus creating an ’equality‘ platform

delivering the ability to achieve both manufacturer and retailer objectives-Simultaneously!

True Collaboration

The ideal Manufacturer Intellectual Property platform would:

First and foremost be based and created upon manufacturer’s/ brands’ marketing and

sales integrated objectives, utilizing shopper marketing insights, data, research…..

Be highly consumer targeted, based upon the brand(s) equity building positioning

objectives

Empower, ’arm‘ and equip the manufacturer’s sales organization

Be customized for each retailers’ objectives (nationally and locally) including each retailer’s

independent themes, positioning and objectives

Allow for customization and promotion of non-competitive retailers’ private label, cross

aisle and loyalty shopper program tie-ins, while heavy traffic producing

Create original, exclusive and perpetual content (platform “DNA”); fully integrating all

digital/web and directing those ‘conversations’—while again, allowing for retailer

participation

Simultaneously deliver the same for media leveraging and customization opportunities

while satisfying media partners’ objectives

Include media customizations for retailers

Allow, forge and customize for synergistic brand partnerships—and the expansions,

opportunities and budgets they bring

Deliver a ‘Pre-Secured’ sales & media channels’ ROI

Perfectly tie to, and customize for, any brand(s) campaigns—“bringing them to life”

Build the Intellectual Property as a manufacturer exclusive brand marketing and sales

platform ’vehicle’ and asset—Growing, year after year

Be ‘competitively self- punishing’ for retailers non participation

7

Fixing the “Flaws”

This paper is in no way meant to criticize the Booz & Co. Shopper Marketing 4.0 Study or the

following studies; on the contrary, they all do a great job of pointing out the flaws of Shopper

Marketing.

The Booz & Co. study and report is actually on the right track; the need to ’bring down the silos

and the need to deliver true marketing and sales integration and retail collaboration—although it

never really answers exactly how to achieve either.

Basically, the report is offering a shopper marketing puzzle “completed picture” on the ‘front of

the box’

Inside the box, they are suggesting a bunch of puzzle pieces for the manufacturer to try and fit

into the puzzle—‘hoping’ the right combination or ’picture‘ completion comes together early, as

told through some form of measurement(yet, undefined)… to ’hopefully‘ achieve marketing, sales

and ROI objectives.

The objective should be to replace “hope” with Pre-Secured ‘Results’ through a “completed

platform picture” from the start.

The biggest missing pieces in the Booz & Co. 4.0 ’puzzle box‘ and Shopper Marketing ’discipline‘

overall—they lack a retail leverage component or Manufacturers’ ’Big Stick‘ and both suggest a

’trial and error‘ model of activation.

In other words—instead of the manufacturer going to the retailer with the Shopper Marketing

’puzzle‘ completed (a working model) to begin with, inclusive of retailers insights, data, objectives,

et al…they are suggesting ’taking the pieces‘ to the meeting and “see how that all goes”.

Which is pretty much what already happens today, as one manufacturer recently told me,” my

sales force is defeated before the even enter the meeting”-Unfortunately, he’s right.

I’m suggesting just the opposite.

By and large, retailers are generally anything but cooperative, and with their “power” continuing

its unchecked growth, it stands to only worsen for manufacturers (also acknowledged in the

study).

8

Here’s the plain truth; the ’power‘ has firmly shifted to the sales channels—continuing to try to

‘regain’ brand power through different ’combinations‘ of the same old ‘tools’, ’puzzle pieces‘ and

‘platforms’—simply does NOT deliver leverage, or maximize results and ROI—and a ’new

marketing discipline it does not create’.

An actual quote from one of the leading Shopper Marketing agencies in the Ad Age report states;

“A lot of it is putting your hand in the tactic bag, throwing it against the wall and seeing what

sticks”.

That about sums it up…and that defines a marketing discipline or maximizes leverage or

success…how?

The Booz & Co. study also acknowledges that:

“Significant additional operational complexity often required customizing vehicles for and

selling them to, retailers”.

“Building a stronger capability to integrate these vehicles is often required to maximize

their impact”!

All of which can be delivered through the creation of manufacturer Intellectual Properties

Platforms, with one exclusive platform customized for each retailer’s objectives—the

Manufacturers ‘Mother Ship’, so to speak, through pre-created customizations (tentacles) that

were created for that purpose. The idea is NOT the creation of 12 different platforms for 12

different retailers, molded from existing and over-utilized traditional platforms/events/sales

promotions.

It is NOT a ‘bag of tactics thrown against a wall….’ but it DOES offer content origination and pride

of ownership, therefore, it OFFERS all of the flexibility required for the ‘needs’ of all stakeholders-

forging true collaboration

Individual manufacturer Intellectual Property platforms can, of course, be created for a specific

retailer; however, there really is not a need to do so—unless of course that retailer is going to give

that manufacturer ’the store’!

Basically, all reports/studies suggest or state that if there isn’t a means for providing true

collaboration—Shopper marketing will fail.

I couldn’t agree more!

9

Booz & Co. 4.0 Summation

Shopper Marketing 4.0 suggests manufacturers’ marketing and sales take 49 marketing

‘ingredients’, mixing combinations until you have a good ‘cake’, then taking that cake to Retailers,

offering a piece to see if they will indeed be ‘pleased’.

SMART PLATFORMS™ mix in the right shopper marketing ‘ingredients’ from the start and build an

exclusive brand/manufacturers’ Bomb/Weapon--NOT a cake. It delivers all Stakeholders

objectives and admittedly plays retailers competitiveness too. Why not—don’t they do the same

to manufacturers?

Manufacturers have let retailers eat cake far too long—‘how’s that working for them’!

Walmart now has over 500 private label categories, Walgreens 400 and you can’t find a battery

other than Duracell and private label at CVS

And yet, the Energizer Bunny continues to beat its’ drum over and over on television

Some are waking up...

A current initiative of Procter & Gamble is in integrating their brands and seeking retail leverage

primarily through ‘strength in brand numbers’ and ‘rallying around a platform’—only they are still

utilizing existing and NON-exclusive platforms as their vehicles (e.g. NFL, Olympics)—as opposed

to creating their own Intellectual Property Platforms. They are, however, unifying their brands

and divisions, focusing on regional versus national (retail competitiveness of sorts)—bring down

some silos and currently unchecked by their competitors. (Adage.com)

Kudos to P & G for once again leading the way… as you did when you created Intellectual Property

Platforms for the times, known then, as Soap Operas.

Those are now gone, but on the right track you are...

THE STUDIES AND REPORTS—A BRIEF SYNOPSIS OF EACH AND THE OPPORTUNITIES… Report 2 - Shopper Marketing Best Practices – A Collaborative Model for Retailers and Manufacturers 2010 – Retail Commission on Shopper Marketing

This industry report pretty much mirrors the same information found in the Booz &

Co study.

10

Key points from the RCSM Reports Executive Summary:

The most essential and effective form of Shopper Marketing involves collaboration

between retailers and product manufacturers.

Collaboration may, in certain cases, begin at the strategic planning level, but more often

will manifest itself in the joint development of shopper-focused communication platforms

and actionable marketing and merchandising programs.

To fully realize the potential of shopper marketing, retailers and manufacturers must

establish working relationships that are more open, productive and results-oriented than

has been the historical norm, and must develop the organizational capabilities necessary to

accomplish this goal.

Again, we see the ’crucial’ word ’collaboration’ between retailer and manufacturer and yet, not an

answer as to how this can be accomplished as a ’true’ partnership.

The really key point of this report states, “Successful Shopper Marketing begins with the

development of a strategic plan to serve as a blueprint for retailers to follow internally and

a guide for their manufacturer partners”.

I agree, however, I would submit its way more than a strategic plan for all to follow (which again,

assumes a cooperative retailer) rather, it is a strategically created manufacturers’ Intellectual

Property Platform customized for all stakeholders’ objectives that MUST be followed in order for

the retailer to earn participation.

The Retail Landscape

An ‘insight’ this report does share, through their following piece on the ‘retail landscape,’ albeit

not necessarily their intent, are key ‘ingredients’ that can and should be created into

manufacturers’ exclusive Shopper Marketing platforms to maximize retail leverage through retail

‘hot buttons’—(if you will) and again, through retailers intense competitiveness.

“A near relentless focus on growth, achieved through aggressive new-store or acquisition

strategies, created powerful national chains whose weekly traffic counts out-number the

viewership of all but the most popular media properties. However, it has also often led to

the aforementioned erosion of store loyalty.

This store proliferation, and the intensified competition it has caused, has also led to a

blurring of traditional retail channels, as drugstores sought to become Convenience Stores,

C-Stores sought to become Supermarkets, and Supermarkets sought to become Mass

Merchants (at least for a time).

11

Therefore, retailers have altered their growth strategies in the last few years to place a far

greater emphasis on same-store sales and profitability, which demands a deeper

understanding of store traffic and shopping behavior. Developing effective strategies for

leveraging the potential of key shopper segments has become a business priority.

Without a full commitment from the retail community, and the development of a

framework through which retailers and product manufacturers can collaborate on targeted

initiatives, Shopper marketing’s potential will not be fulfilled.”

(Believe me, retailers today cannot competitively afford to be left out of potentially big

traffic producing manufacturer’s SMART platforms)

THE STUDIES AND REPORTS—A BRIEF SYNOPSIS OF EACH AND THE OPPORTUNITIES… Report 3 – Ad Age Insights – Shopper Marketing 2011/First Quarter Trend Report “Racing along the Path to Purchase”

Key points from the Report

A good report, again with many of the same Shopper Marketing ’themes‘ and ’flaws‘ but they do,

however, highlight some ’Shopper Marketing‘ agencies and client work.

The report states, “Still missing from Shopper Marketing are the metrics to measure whether a

program has been implemented most efficiently (did it achieve a strong ROI?) And effectively

(did it change shopper behavior?).”

I disagree—the ’model, or matrixes for measurement‘ is available—‘what’s missing‘ is that

current ’platforms‘ are not created on an ROI model to begin with, and I do agree, however, that

the ’cake mix‘ approach would be very hard to measure let alone deliver maximum results—

especially on an ROI basis.

Case in point: I have to repeat a ’leading Shopper Marketing agency’s ‘quote’ in this report

states—“A lot of it is putting your hand in the tactic bag, throwing it against the wall and seeing

what sticks”…(Didn’t we use to call that ’Sales Promotion’)?

Which brings me to a the ’Key‘ Ad Age report quote (in part),”Shopper Marketing emerged, in

part, from a manufacturer need to derive a greater brand benefit from trade spending…”.

12

Why is this “key”?

The vast amounts of manufacturers’ retail spending and sales dollars are not discussed in any of

the three reports, and yet, manufacturers’ retail spending, or more appropriately, retail demands

on manufacturers’ money, is out of control!

The idea of Shopper Marketing should be for manufacturers to create and activate platforms for

the ‘benefit of all… in lieu of continuing the insane amount of money going to retailers in addition

to everything else manufacturers ‘bring to the party’ and spend.

Also not discussed is retailers’ dependence on manufacturers’ sales dollars for their own bottom

lines. Therefore, I would submit that this ‘get all the manufacturers’ sales dollars you can’

mentality is a big ‘invisible fence’ hindering a ‘true collaboration’ to begin with. Wal-Mart, alone,

has now become quite proficient at ‘grabbing’ manufacturers’ advertising dollars as well as

creating their own ‘platforms’, also paid for by manufacturers—ALL in addition to the retail sales

dollars already going to them!

So if you’re going to discuss ‘True ROI’, it must include sales dollars required and spent behind

the marketing dollars spent as well.

Another ‘missing’ subject in these reports is manufacturers’ sales forces. And yet, they are

typically the manufacturers’ interface and connection with retailers (whether direct, brokered

wholesaler, agent, etc.). The task of ‘selling in’ a manufacturers’ marketing or ‘shopper

marketing’ program and /or ‘forging true collaboration’ typically falls upon them as well.

The current ‘reality’ is that sales forces are fairly powerless in their ‘negotiations with retailers.

Yet, not one of these reports deal with how Shopper Marketing could—and should—empower

and ‘equip’ a manufacturer’s sales force or how to do so.

Considerations

Consider this:

Manufacturers’ power, at one time, came from its advertising and marketing power

(‘push-pull’) being able to ‘force distribution’—a “big stick” over retailers.

In today’s world, first and foremost, manufacturers’ power is now derived from their

distribution-NOT their marketing/advertising

In a sense, they have become ’prisoners’ to that distribution system.

13

Manufacturers, therefore, have taken to somewhat ‘walking on retailer egg shells’,

coming from a position of ‘Placation’ vs Power.

Manufacturers have always been in a ‘war’ with their direct competitors. Today that

‘theater’ has greatly expanded to now include a war with private label, the retailers’ heavy

levies, ‘trade barriers’ and retailers’ quest to build their own Identity, brands and of

course, the slumping economy, all in addition to direct competitors.

Enter Shopper Marketing—a manufacturer’s new ‘white horse’—or is it a retailers new ‘Trojan

horse’?

Is it not perhaps a means for retailers to tap into even more manufacturers’ resources—this time,

a shift of traditional advertising and marketing dollars—all under the guise of ‘collaboration’?

Does it not play upon manufacturers’ heightened fears or fear of rocking any boats?

Does this new ‘collaboration’ unshackle the imprisoned manufacturer or does it serve just the

opposite?

How ‘convenient’ that a Shopper Marketing system of ROI measurement doesn’t quite exist!

Wouldn’t it be prudent for a manufacturer to consider getting back to what gave them their

power to begin with, only created for today’s marketing world and challenges?

Programming creation, advertising and marketing were all manufacturers’ ‘weapons’ of sorts. Is

this not the time to start building some ’new weapons’ as opposed to “…taking a handful of old

ones out of the old tactic bag, throwing them against the wall to see what sticks”?

As mentioned, didn’t Procter & Gamble create and grow ‘Soap Operas’ into powerful exclusive

marketing and sales Intellectual Property platforms, when the times called for it? Did Virginia

Slims Tennis grow for over 30 years?

The main point is manufacturers can utilize shopper marketing data and ‘insights’ to create

Intellectual Property Platforms. Those platforms would first be based upon manufacturers’

marketing and sales objectives that simultaneously allow for retailer objectives through

customizations. Additionally, the platform’s design would allow for turn-key activation for

participating retailers in return for satisfying manufacturers’ retail objectives, including a pre-

secured ROI, and all in lieu of more wasted retail ‘dead’ dollars.

14

The retailers’ choice becomes simple; “Jump on the bandwagon (platform) or watch from the

sidelines”; we, the manufacturers, are “going directly to consumers to promote and market our

products through an exclusive platform/”channel”—with or without you”.

Media

Not much was covered in these reports as to utilizing manufacturers shopper marketing Platforms

to leverage and customize for mediums (broadcast, print, digital, web, etc.)—delivering a pre-

secured media ROI, plus, expanding the Platforms reach, forging local media partnerships and

ancillary event inclusion (all also customized and leveraged back at retail)—in exchange for

manufacturers delivering media partners objectives through their shopper marketing platform

customizations.

Manufacturers Intellectual Property (SMART) platforms are designed to also deliver all of the

above-simultaneously.

Digital/Social/PR

Another currently utilized ‘definition’ of Shopper Marketing is ‘reaching and motivating the

consumer along the path to purchase’.

Intellectual Property Platforms create original, exclusive content—perpetually ‘Feeding’ and

Leading’ digital, social and internet ‘conversations’ (also may be leveraged with retail and

mediums)—while creating a multitude of exclusive PR platforms. Since the IP Platform is initially

created for a highly targeted consumer demographic(s), it’s content and ability to reach and

influence those desired consumers ‘on their path to purchase’ is quite powerful. Further, this

exclusive content is also a form of programming that can be packaged as exclusive proof of brand

purchases, incentives or requirements and can customize into national campaigns and traditional

platforms.

Original Content is truly ‘King’—providing a plethora of exclusive brand opportunities.

Summation

The ‘truth’ of Shopper Marketing may not be what it ‘appears’ to be—not yet anyway.

Right now, Shopper Marketing is more akin to account-specific or sales promotion with a slight

retail customized ‘bent’ (‘a rose by any other name’) versus an exclusive manufacturer marketing

15

and sales ‘weapon’, ‘equalizer’ or empowerment—ergo the current “lack of a Shopper Marketing

definition or “discipline.

I believe it safe to say that a vast majority of marketing and sales organizations today operate out

of ‘fear’—or a constant ‘playing it safe’—and that’s simply human nature, especially in today’s

business “world”, climate and unemployment.

However, I would submit that in reality, playing it ‘safe’, the way it’s being played (‘seeing what

sticks’) is in fact, not safe at all.

On the contrary, giving a new name to a ‘concoction’ of tired platforms and marketing ‘puzzle

pieces’, simply doesn’t appear to empower the manufacturer or brands—certainly not to the

degree or ROI that can be obtained.

And the ongoing onslaught of private label, UNCHECKED or countered by manufacturers, is simply

amazing

If manufacturers want ‘true retail collaboration’, or ‘empowerment,’ they better have something

to ‘horse trade’ or leverage because the retail ‘monster’ has long been out of the manufacturers

‘push-pull cage’.

If manufacturers’ would simply look back and learn from history, meaning; what

gave them their power, when they in fact were empowered, and re-engineer that

model and process for today’s marketplace, needs and challenges—that’s the

‘ballgame’ today and where ‘safe’ exists. A properly created and executed

manufacturer’s Intellectual Property marketing & sales integrated Platform can

deliver exactly what shopper marketing appears to be missing and seeking, and

that, I submit, would qualify as a Shopper Marketing definition and discipline.

We went from being a manufacturing based society to an Intellectual Property

based society and therefore driven by content.

Would it therefore not make perfect sense that re-engineering our marketing &

sales traditional models into IP and original Content creation driven models,

maximize the delivery of our marketing & sales objectives’ and ROI?

16

“True Collaboration” will only be forged through Manufacturer Leverage

And to be clear, marketing and sales challenges are at their height for all marketers—and most, if

not all, industries.

The idea of creating exclusive Intellectual Property Platforms to leverage, customize and help both

marketer and sales channels is germane to any Industry; Pharma, Automotive, Spirits, Travel,

Portals. It’s also a huge weapon for sales channels that simply reverse the Platform Model for

their use (see Walmart!).

The GOOD News

A manufacturer’s Intellectual Property marketing and sales platform forges ‘true collaboration’

with sales channels for ‘the good of all ‘; for both the manufacturer and retailer actually do get

their objectives met and do realize an impressive ROI. Further, consumers are treated to a

multitude of benefits and exclusives which would never have existed—and all for simply buying

the manufacturer’s products at participating retailers.

The benefits can extend into employee morale building for the manufacturer and retailer as well

as a host of additional exclusives and opportunities; forging brand partnerships, revenue

generation from the platform itself, self fundraising, merchandising, exclusive programming, new

product launches, extending patents, etc., ( not covered in this paper) for both the manufacturer

and retailer.

Thank You

I’d like to acknowledge and extend a big ‘thank you’ to all three entities on your studies and

reports, for, by so aptly pointing out the ’flaws’, you help to move it all forward, and as we all

know… manufacturers really need to move it forward!

17

SMART PLATFORMS™

A Manufacturers Shopper Marketing Intellectual Property Model

For your Consideration

Forging ‘True Collaboration’ & Pre-Securing Multiple ROI

An Exclusive Long-Term Manufacturers Marketing & Sales Asset

18

Brief Author Bio

Paul Stanley

Founder & Creative Director; PS and Partners

Honored in Promo Magazines “100 Years of Events and Platforms That Pioneered the Industry,” With The Exception of the Bud Bowl and Macy’s Day Parade, Paul Stanley Created & Activated Them All

Authored the First Book on Event, Marketing & Sales Integrated Platforms for Northwestern University; “Its’ NOT About The Event-Building A Brand While You Ring A Cash Register”-Dartnell Press

Adjunct Professor of Marketing Northwestern University Graduate School-IMC

Masters of Advertising Program; Michigan State University

Created And Trademarked; The 7C’s™ Marketing & Sales Model Of Connectivity, Optimization & ROI

Authored: The “Re-Engineering Of Marketing & Sales 2011,”

Authored: The “State & Future of Pharma Marketing 2011,”

Authored: Controlling the Digital & Social Channels Through Original Content Creation 2012

Authored: The Future of Pharma Marketing; Taking a Page from Philip Morris 2012

Authored: The “Invisible” Manufacturer-A New B2B Marketing & Sales ROI Model

Created and Trademarked; Sponsownerships™; the First “360” Marketing & Sales ‘Dual’ ROI Platform Model

Founded PS Promotions Inc; the First and Ultimately Largest Sponsorship, Event, Retail & “360” Marketing & Sales Integrated Platform Firm In The Nation.

Represented Some Of The Largest Marketers, Manufacturers & Brands In The World Including; Procter & Gamble, Philip Morris, House Of Seagram’s, Ford, Kraft, ABC Television Network, Nickelodeon Network, Sony, House Of Seagram’s, Premier Cruise Lines, AT&T, Motorola, Discover Card, SC Johnson, Wordperfect Software, Keebler, Frito-Lay, Dairy Farmers Of America-Co-Op, Premier Cruise Lines…

New Product Launches Include; Bristol-Meyers Boost Brand, Heinz’ Smart Ones Frozen Foods, P&G’s Sparkle Crest For Kids, Philip Morris’ PM Blues, Wordperfect Software; “Mainstreet” Line, Bravo Discover Card, Digital One Network, Rich’s Donuts (B2B)…

Represented/Worked With Every Class Of Trade (25 Years); Mass, Walmart, Target, Drug, Walgreens, CVS, Grocery, C-Stores, Auto-Dealerships, On/Off Premise, Travel Agents…

Trained/Assisted/Equipped & Empowered Manufacturers’ Sales Forces-All Classifications; Direct, Brokered, Distributor-Plethora of Industries

Major Agency Clients Including: Leo Burnett, DDB, JWT, EuroRSCG –Created Intellectual Property Platforms/ Integrated Marketing and Sales/Sales Channel Platforms and Execution for Their Clients.

19

DIGITAL CLIENTS: The BabyCD, the Digital One Network, VIPMOMMIES, BeBeVu, the Digital Sports Network

Founded & Built I IMAGINE Inc Advertising Agency

Evolved I Imagine Agency into SR&B Advertising Agency- Clients Included Pearle Vision Centers, Montgomery Ward’s, Ford Motor, And Chrysler

Founded PS Productions INC; Became Michigan’s Largest Concert Promoters/Producers

Represented The Largest Entertainers In The World Including; Frank Sinatra, Tony Bennett, Aerosmith, Kiss, Wynonna, Clint Black, The Beachboys, Steve Martin, George Carlin, Ringo Starr, Barry Manilow, Paula Abdul, Billy Ray Cyrus, Hall And Oates…

Co-Founded The Not For Profit; Kids Fighting Chance-A Proactive Educational Platform- Stopping The Abduction Of Our Children-Massive Media Coverage, FBI Endorsed, Free School Tours, Sponsorships, Home Shopping Network Distribution & E Commerce

Authored Stage Play; 2 Hearts & A Club-3 ½ Star Reviews (4)-Northshore Center for the Performing Arts

Opened And Operated Three Major Venues; The Royal Oak Music Theater (3700 Seats), Charlevoix Outdoor Venue (10,000 Seats), Knock Knocks-Detroit’s First Comedy Nightclub

[email protected]

Chicago 312-550-7285 PS and partners.com

© Paul Stanley 2011 All Rights Reserved