POPAI/GfK Shopper & Retail Marketingpopai.com.au/assets/2017/10/Day-2_Norrelle-Goldring_POPAI-2017... · POPAI/GfK Shopper & Retail Marketing Industry Survey 2017 - Findings Prepared

1 © GfK October 5, 2017 | Shopper Marketing Industry Survey Findings Oct 2017

POPAI/GfK Shopper & Retail Marketing Industry Survey 2017 - Findings

Prepared by: Norrelle Goldring

Date: 3 October, 2017


Contents

Purpose, what we did, who we spoke to 1

Where are we now, and what’s changed? 2

Where are we going? 3

Comparisons 2017 to 2014 study findings:

Better/increase

than 2014

Worse/lower

than 2014

About the same

as 2014


1 Purpose, what we did, who we spoke to


Why a Shopper Marketing & Category

industry benchmarking survey in 2017?

Setting the roadmap for change.

Digital technology and shopper adoption of it

has changed shopping behaviours – but

how much has it changed what is activated?

It’s 3 years since the last one in 2014, we

suspect some things will have changed or

moved on

What’s the role of shopper marketing, retail

marketing, and category?

What’s changed?

What hasn’t?

Why not?

What may change?

Where to from here?


What we did

1. Depth interviews x 29

June

Face to face or phone:

• 12 x brands

• 1 x retailer

• 1 x POP supplier

• 9 x creative agencies

• 6 x ‘other’ agencies

2. Online survey, ~25 mins, n=91

September

40%

2%

52%

7%

Brand Manufacturer

Retailer

Agency

POP Supplier

P1: Which of the following best describes the sector you work in?


2 Where are we now? What’s changed?


What’s changed in 2017 versus 2014?

• Less perception of

bandwagon

• More strategic role

• Use of digital and social in

programs

• Measuring more often

• Success of programs

• Retailer control of media

assets increasing, thereby

increasing cost of

participating in or running

campaigns

• Fewer programs overall

(‘fewer, bigger, better’)

• People resources

• Budgets

• Education

• C-suite support and

interest

• Shopper led campaigns

(vs brand or retailer led)

We’re getting better at it, but there is a ceiling on innovation and effectiveness due to retailer and c-suite

limitations, particularly in FMCG. Brands and agencies putting more focus on what they can control.


Scope & Definitions of Shopper Marketing

… and versus Retail Marketing and Category


S1. What is your definition of shopper marketing?

Definitions of shopper marketing ranged from the broad to the specific

Most definitions involved use of insights resulting in a purchase

Understanding how shoppers behave in different channels

and leveraging these insights to create engaging experiences

A marketing communications channel that specifically is

tasked with getting people to buy a product or service.

Understanding customer purchase trends and

implementing programs and strategies to increase basket

size, shopping frequency and shopper numbers

Developing insights-lead solutions that achieve a 3-way-win

between 1. Brand 2. Shopper 3. Retailer

All communication and activities related to the purchase

Marketing with the action of purchase and repurchase

considered as the primary focus

The way in which retailers & manufacturers use insights

to engage with the shopper along the path to purchase to

increase sales of their products.

Marketing that influences the shopper/ house hold

decision maker on the path to purchase decision.


2/3 believe shopper marketing is couch to cash register and/or

integrating all touchpoints. This has moved on from 2014.

SC4: What is your view of the scope of shopper and retail marketing? SC5: What is your perspective on shopper and retail marketing? SC6: Which of these comes closest to your

Total base n=91 perspective on the role of shopper and retail marketing?

91% 98%

87% 82%

Prestore Instore Poststore/postpurchase

Digital,wherever

that is

32%

48%

20%

Shelf back/FMOT

Couch forward to cash register

Other

41%

44%

5% 10%

Strategic - JBDP, annual plans

Tactical expression of a strategic plan

Primarily tactical campaign based

Other

Opinions are evenly split on whether it’s strategic or tactical. Some see it as both.


Organisation Structure & Support

This section was completed by brands and retailers only


29% 24% 29% 24% 5%

16% 16% 18%

53% 55% 45% 42%

26%

42% 39% 53%

11% 16% 16% 26%

21%

18% 24%

16%

5% 5% 11% 8%

37%

24% 21% 13%

3% 11%

Gaining in momentumand focus

Achieving bettermanufacturer/retailer

collaboration

Giving us a source ofcompetitive advantage

Resulting in moreinnovative in-market

programs

Is adequately resourced(people, budgets)

Is integrated into annualand strategic planning

Has a clear definitionand vision

Has clear ownership

Completely Disagree

Somewhat disagree

Neither agree nor disagree

Agree somewhat

Completely Agree

Gaining in

momentum and

focus

Achieving better

manufacturer /

retailer

collaboration

Giving us a

source of

competitive

advantage

Resulting in

more innovative

in-market

programs

Is adequately

resourced

(people,

budgets)

Is integrated into

annual and

strategic

planning

Has a clear

definition and

vision

Has clear

ownership

OS10: How would you describe the status of Shopper & Retail Marketing in your organisation? Shopper marketing is ….

Total base n=91

80% agree shopper marketing is gaining momentum and better

brand/retailer collaboration.

82% 79% 74% 66% 31% 58% 55% 71% Top 2 Agree

But still high levels of dissatisfaction with resourcing, jury is out on vision, and only

integrated into planning for half.


1/3 are doing shopper and retail marketing strategic planning upfront,

nearly half say at the same time as other plans

Brands and Retailers only

SA1: Which of the following best describes where shopper and retail marketing strategic planning sits in your organisation‘s planning process?

Base total n=91

32%

45%

5%

16%

3% Bus strategy (start of planningprocess)

Simultaneous to other plans

Post brand planning

No strategic shopper plans

Other

1 in 6 don’t have strategic shopper plans

(may be part of category strategy?)


Customer/trade marketing departments are still more prevalent than

shopper/retail marketing teams.

Category teams exist for 7 in 10, and where there is both category and shopper these are

evenly split between being together or separate.

OS1: Which of these functions exist as dedicated roles in your business?

OS2: You mentioned there are both shopper and category people in your organisation. Are the shopper and category functions in your organisation …

Total base n=91

71%

55% 50%

42% 37%

5%

CategoryManagement

Customer/TradeMarketing

Shopper/RetailMarketing

ShopperInsights

CategoryDevelopment

None of theabove

47% 53%

Together in one groupreporting into oneperson

Separate


Shopper marketing is most likely to report to marketing.

Customer/trade marketing increasingly report to sales, particularly if

retailer specific.

OS3: For each of the following functions, where do they report to?

8%

11%

50%

5%

5%

3%

18%

Sales

Category

Marketing

Shopper

Executive

Insights

Other

Not Applicable

24%

13%

34%

3% 3% 3%

21%

Shopper / Retail Marketing Customer / Trade marketing

Reports into … Reports into …


Shopper Insights most likely to report into category, as is category

development. Virtually none of these functions report into the executive

OS3: For each of the following functions, where do they report to?

8%

26%

18% 0% 8%

0%

26%

Sales

Category

Marketing

Shopper

Executive

Insights

Other

Not Applicable

26%

42%

13%

5%

3%

11%

Shopper Insights

reports to ...

Category Management & Development

reports to ...


OS5: Do you expect the number of people responsible for / involved in the following functions in your company to increase over the next 12-18 months?

Total base n=91

Nearly half expect to increase their shopper/retail marketing resources

45% 34%

18% 29%

39% 47%

58%

61%

16% 18% 24% 11%

Shopper/Retail Marketing

Customer/Trade marketing

ShopperInsights

Category Management &Development

Not Applicable

No

Yes

Around 1/3 of each of trade marketing and category expect to increase resources,

but fewer than 1 in 5 for shopper insights


OS6: For each of the following functions, with regard to budget, do they:

Total base n=91

1/3 or less of shopper and trade marketing practitioners have their own

budget. 1/3 have their own plus source from elsewhere.

29% 34% 24%

47%

13% 11% 26%

24% 37% 29% 18%

21% 21% 26% 32%

8%



ShopperInsights


Not Applicable

Combination of the two

Sources from elsewhere

Has own budget

Where nearly half of category people have their own budget (albeit that category

typically requires fewer executional $$ than does shopper)


OS8: With regard to budget for each of these functions, do you see it increasing, decreasing or remaining the same over the next 2 years?

Total base n=91

Half expect shopper marketing budgets to increase. Less bullish for

shopper insights, despite overall increasing interest in this area.

50% 37%

26% 21%

5%

8% 13%

3%

29%

32% 29% 61%

16% 24%

32% 16%



ShopperInsights


Not applicable

Remain the Same

Decreasing

Increasing

Category budgets largely expected to stay the same.


If more budget were available, more than half would spend it on

digital/social/mobile

1/3 would spend more on shopper research and insights

OS9: Where would you deploy more budget and / or people resources, if they became available?

Total base n=91

53%

37% 32%

18% 16% 16%

8% 5% 3%

SM programs -prestore

digital/social/mobileelements

Shopper researchand insights

SM programs -instore elements

Upfront shopperstrategy and

planning

Store staff trainingand incentives

Brand/consumeradvertising

SM programs -prestore consumer

components

SM programs - poststore components

Other


Shopper Insights


1 in 3 overall say they are still in the beginning stages of shopper

insights

Another 1/3 say they have run research and data analysis for some time.

SI1: Which of the following best describes your organisation’s relationship with shopper insights?

36%

36%

50%

38%

17%

35%

42%

30%

50%

26%

22%

32%

17%

2%

50%

17%

Total

Brand Manufacturer

Retailer

Agency

POP Supplier

Beginning journey Run research and data for some time Very experienced in research and data Not planning on using or running shopper insights


Shopper Marketing Activities


SA2: What % of shopper / retail marketing programs do you activate that are:

Total base n=91

Half of shopper programs are brand led, a quarter are retailer led and

1/3 are shopper/category/occasion led

48 49

30

50

35

27 26

35

23 55

33 31

70

36 25

Total Brand Manufacturer Retailer Agency POP Supplier

Shopper/occasion/category led

Retailer Led

Brand Led

POP suppliers are doing more retailer led work, where agencies are doing more

brand led work.


SA3: Are the number of these program types in which you are participating increasing, decreasing, or staying the same?

Total base n=91

Retailer led and occasion/category led programs are perceived to be

increasing.

30%

50% 51%

24%

9% 9%

46% 41% 39%

Brand led Retailer led Occasion/category led

Staying same

Decreasing

Increasing

However, retailer led programs and use of retailers’ media assets is perceived to

be increasing costs, leading to ‘fewer, bigger, better’

Retailers taking control of the touchpoints and charging to pay to play means cost is going up


S97: Are you using retailers’ media assets as part of shopper & retail marketing programs?

Total base n=91

90% are using retailers‘ media assets to some degree.

1/3 are using retailers‘ assets for all programs.

31% 36% 25%

35% 25% 47%

26% 33% 19%

7% 6% 9%

Total Brand Manufacturer Agency

No, never

No, not yet

Yes, occasionally

Yes, sometimes

Yes, for most/all programs

Brand and Agency

Retailers are clipping the ticket on where agencies used to make money in fulfilment and production. There is an

ongoing shift of marketing spend from brands/agencies to retailers.


2/3 of brand manufacturers have fewer than half of their campaign

pitches actually make it into market.

Brand manufacturers

SA5: In the past 12 months how many of the brand or sopper / occasion / category led campaigns which you have pitched to major retail customers, have actually made it into market?

Base total n=91

11%

19%

36%

25%

8% Under 10%

10-25%

25-50%

50-75%

75-100%

Retailers say they want innovation

but if can’t demonstrate the return,

it gets knocked back.


SA4: What % of shopper/retail marketing programs do you activate that are:

Total base n=91

Nearly 2/3 of what is being activated is temporary (higher for agencies)

67 64 70 72

51

29 34

60 23

26

21 27 10

16 23


Permanent (16+ weeks)

SemiPerm (8-16 weeks)

Temporary (<8 weeks)

Most shopper activations are semipermanent and campaign based. This will continue with digital being temporary and

having interchangeable content.


SA8: Which of the following shopper & retail marketing activity types do you currently employ in your shopper & retail marketing programs?

SA8a: And which tools, techniques and touchpoints are you using more or less of than a year or so ago in your shopper and retail marketing programs?

Total base n=91

Websites, social media and eDMs used most frequently.

Most digital tools have increasead versus 2014, and expected to

continue to increase, particularly social media.

5% 8% 11% 12% 3%

16% 23%

47% 34%

36% 35%

70%

23% 12%

47% 58%

53% 53%

27%

61% 65%

Websites Searchengines

Mobile Direct &EDMs

SocialMedia

AR/ VR Coupons

Same

More

Less

11%

35% 38%

24%

7%

61% 51%

43%

39% 42%

42%

43%

35%

41% 46%

26% 20%

34%

50%

4% 8%

Websites Searchengines

Mobile Direct &EDMs

SocialMedia

AR/ VR Coupons

Frequently

Sometimes

Never/Don't use

Digital tools & techniques employed




Total base n=91

Offlocation displays and POS materials used the most frequently.

Store staff incentives increased frequency since 2014.

1 in 3-4 say they will use more of most instore tools.

8% 8% 7% 15%

7% 12% 16% 15%

27% 34%

27% 23% 36% 24%

23% 20%

65% 58%

66% 62% 57%

64% 61% 65%

Offlocationdisplays

Store stafftraining andincentives

Instoremedia

Kiosks POSM Sampling &Demos

On-packpromos

Projections

Same

More

Less

9% 15% 11%

36%

3% 9%

31%

61%

22%

39% 57%

54%

22%

57%

39%

31%

69%

46%

32%

9%

76%

34% 30%

8%

Offlocationdisplays

Store stafftraining andincentives

Instoremedia

Kiosks POSM Sampling &Demos

On-packpromos

Projections

Frequently

Sometimes

Never/Don't use

Instore tools & techniques employed




Total base n=91

Catalogues and advocacy programs the most frequently used out of

store. Experiential expected to increase the most.

28% 35%

19% 18% 23% 32%

47%

53%

53%

35%

47%

49%

24%

12%

28%

47%

30% 19%

ATL media Outdoor media Experiential/Events Catalogues Advocacy Loyalty programs

Frequently

Sometimes

Never/Don't use

Out of store tools and techniques employed

ATL media Outdoor

media

Experiment

al / Events

Catalogues Advocacy Loyalty

programs

22% 19% 9% 12% 11% 12%

23% 23% 41%

18% 30%

22%

55% 58% 50%

70% 59%

66%

ATL media Outdoor media Experiential/Events Catalogues Advocacy Loyalty programs

Same

More

Less

ATL media Outdoor

media

Experiment

al / Events

Catalogues Advocacy Loyalty

programs

Experiential drives emotion but also interaction, not just awareness. If move to online sales, then role of physical store is

more experiential. Retailers limit or charge for what can be done instore, so we invest in experiential out of store.


SA11: How many (what percentage) of your shopper marketing campaigns are measured and evaluated?

Total base n=91

4 in 10 say they measure 75%+ of their campaigns.

But nearly 1 in 3 are measuring campaigns less than 25% of the time

Agencies say they are measuring more campaigns (or at least the campaigns they are involved in are

measured) slightly more frequently than brand manufacturers

16% 14%

100%

13%

25%

26% 22%

0%

31%

25%

27%

25%

0%

28%

50% 18%

22%

0%

16%

0%

12% 17%

0%

9%

0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


None

Less than 25%

25-49%

50-74%

75-99%

100%


More than 3 in 4 are measuring campaigns using volume/value uplift

Around half are using impact and influence measures such as engagement, participation, reach

SA10: Which ways do you measure shopper and retail marketing activities in your organisation?

Total base n=91

80

73

42

59

36

50 53

30

51

27

42

55 59

3 1

78 75

39

64

33

39

56

25

47

19

42

53

64

3 0

100 100

50 50

0 0 0 0 0

50

0 0 0 0 0

88

69

50

59

41

69

56

41

63

31

44

66

59

0 0

25

75

0

25

50

25 25

0

25

50 50

25

50

0

25

Sales volume lift Sales value/dollars lift Residual incremental sales Short term ROI/cost vs return Long term ROI/cost vs return Retailer/customer/storeengagement

Category/Brand share increases Shopper/customer awareness andreach

Shopper participation &engagement

Shopper/customer satisfaction andexperience enhancement

Shopper, loyalty and brandattributes

Shopper behaviour changes(AWOP, frequency, Spend, Traffic,

Basket and HouseholdPenetration)

Achieved vs. plannedexecution/POS/distribution

Other None of the above


Sales volume

life

Sales value /

dollars lift

Residual

incremental

sales

Short term

ROI / cost vs

return

Long term

ROI / cost vs

return

Retailer /

customer /

store

engagement

Category /

Brand share

increases

Shopper /

customer

awareness

and reach

Shopper

participation

&

engagement

Shopper /

customer

satisfaction &

experience

enhancement

Shopper,

loyalty &

brand

attributes

Shopper

behaviour

changes

Achieved vs

planned

execution /

POS /

distribution

Other None of the

above


Brands and retailers look to agencies primarily for research and

insights, creative program ideas, POS production. But also strategy.

Brand and retailer

SA14: What role or functions are most important for shopper marketing-related agencies to provide?

Total base n=91

58%

45% 39% 37% 34%

16% 16% 13% 11% 11% 5% 3% 5%

Shopperresearch &

insightdevelopment

Creativeprogram

ideas

POS designand

production

Shopperstrategy

development

Comms stratdevpt

Digital, social,mobileactivity

execution

Digital,mobile, socialshopper strat

devpt

Post programmeasurement

Activationsexecution

Fixturing,store designand theatre

Commsexecution

Packagingdesign

Other


Retailers look to brands for similar things than what they look to

agencies for. Plus funding.

Retailer

SA15: What are the most important things a brand supplier can bring to the table for shopper and retail marketing programs?

Total base n=91

Ideas that will

drive traffic

and spend

Funding Creative ideas

Ideas that will

improve the

shopper

experience

Shopper and

category

insights


Improving Worsening Staying the same

Agency & POP suppliers

SA16: Is the quality of the shopper / retail marketing briefs you receive from clients …

SA16a: What do you think is behind this?

1 in 4 think the quality of client briefs is improving. 2 in 3 think it’s the same.

25%

13% 62%

Improving Worsening Staying the same

Fewer pop suppliers than agencies

thought briefs improving. More POP

suppliers than agencies said briefs

worsening or staying the same. Clients are upskilling as

times goes on.

New technologies, new tools,

new people so new

opportunities.

More importance being

placed on shopper and

retailer engagement.

The better ones involve

insights led strategies.

Brand, category and

marketing managers are

utilising multiple channels

to market and services

without mastering any of

them. Spread too thinly and

too many are

inexperienced. Suppliers

are expected to spend a lot

of time coming up with

multiple solutions, when in

reality, we are second

guessing based on very

loose briefs."

State of the economy. Lack

of strategic planning by

retailers.

Still a lack of expertise and

understanding of Shopper

and Retail Marketing.

Clients [briefers] are time-

poor and find it harder to

keep up with what they could

get and ask for; suppliers

[external or internal] are paid

for being data-providers not

solution providers. Very few

are bridging the gap.

Silo mentality between

insights, brand and shopper

teams.


Digital, Mobile, Social


84

68 68

47 43

30 30 26 24 24 23

18 20

4 3 3

94

81

72

31

53

28

42

36 36

28

17 14

19

6 6

0

100

50 50

0

50

0 0 0 0

50

0 0 0 0 0 0

72

56

72 72

31 34

22 19

16

22

34

25 22

3 0

3

75

50

0

25

50

25

0 0 0 0 0 0

25

0 0

25

Websites Email offers/eDM Social Media ie Facebook/Insta Promotion based microsites Search engines - sponsoredresults

Mobile offers pre-store Online reviews and feedback Mobile search Online catalogue/printable e-coupons

Web based feedback and reviewforums

Augmented/Virtual reality Mobile apps Mobile location-based offers Group deal-of-day offers Other None of the above


Websites Email offers

/ eDM

Social

Media ie

Facebook /

Instagram

Promotion

based

microsites

Search

engines –

sponsored

results

Mobile

offers pre-

store

Online

reviews &

feedback

Mobile

search

Online

catalogue /

printable e-

coupons

Web based

feedback &

review

forums

Augmented /

Virtual

reality

Mobile

apps

Mobile

location

based offers

Group deal-

of-day offers

Other None of the

above

Websites, eDMs, and social media used by more than 2 in 3 in past 18

months. Brands doing more of most things than agencies

Agencies are more likely than brands to use microsites, AR/VR, mobile apps.

Mobile use still in its infancy, under 30%

DOM1: Which digital, online or social media techniques have you trialled or adopted for shopper & retail marketing in the past 12-18 months?

Total base n=91


Nearly half of agencies and brands are using digital in 75-100% of

programs

A quarter of brands say they use digital 100% of the time

DOM2: In the past 12 months, how many (what %) of your shopper & retail marketing programs and campaigns include digital / social / mobile elements?

Base total n=91

16%

32%

19%

14%

16%

3% 100% of programs

75-99% of programs

50-74% of programs

25-49% of programs

< 25% of programs

None

Toe in the water but not on scale.

Digital tie ins with what retailers

are doing - loyalty edms etc

Digital is in its infancy - trial stages

for shopper. People don’t have a

great handle on it, but this will

change quickly.


DOM4D: Have you run any exclusively digital shopper campaigns (ie. with no physical store execution)?

A third have run exclusively digital shopper campaigns.

32%

Yes

68%

No


Barriers around ownership, ‘keeping up’, complexity, and privacy

DOM5: What do you see as the biggest opportunities and challenges in leveraging digital technologies for shopper and retail marketing?

Biggest opportunities around digital are in measurement, reach, and

targeting.

Opportunities Barriers

Measuring ROI.

Better targeting.

Being able to connect with the customer and drive the sale

process directly with them.

Reach. Ability to scale.

Efficiency & effectiveness.

Closing the loop, taking in store activities online and vice

versa.

Data, knowledge, insights.

Fully integrated campaigns.

Digital noise and clutter.

Lots of choices, limited resources = don’t know where to

spend the time and money.

Changes fast – difficult to keep up and stay across what

works and what doesn’t.

Ownership over who is responsible … and finding

dedicated experts.

Cost of leveraging retailer databases and subsequent

inability to create longer term loyalty and reengagement

program with those audiences.

Privacy concerns and data restrictions.

Integration with other commerce, communication and

relationship vehicles.


3. The Future – where are we going?


Shopper Marketing seen as core for 4 in 10, and likely to become

integrated for 1 in 3.

Virtually noone sees the function as a bandwagon any more or are doing it merely to keep up.

F1: Which of the following best describes what you see as the medium term future of shopper & retail marketing in your company?

3%

8%

4%

8%

2%

8%

6%

6%

33%

36%

36%

50%

41%

39%

50%

47%

8%

3%

50%

9%

17%

Total

Brand Manufacturer

Retailer

Agency

POP Supplier

Bit of a bandwagon, do the minimum, see what happens

Keep up so not left behind, but not core or integrated

Likely to remain tactical, fully integrating it seems complex

Probably become integrated as broader version of category, customer, consumer marketing

Is or will become core to what we do, key growth driver

None of the above


Half expect resources and budgets to increase, and 3 in 4 expect the

discipline’s impact and influence to increase – but these numbers are

down versus 2014 expectations

Trend Opportunities

F2: With regard to the future of shopper & retail marketing as a discipline, outside of your company, do you think the following will increase, decrease or remain the same?

F3: What do you see as the biggest opportunities for shopper & retail marketing?

Total base n=91

55% 54%

73%

10% 18%

35% 29%

23%

Peopleresources

Budgets Impact &Influence

Remain the same

Decrease

Increase

Personalisation. Bespoke and tailored experiences.

New types of touchpoints.

Become more focussed on shopper, rather than trying to

satisfy retailer needs / wants or to increase brand

awareness.

Better measurability.

Integration at the strategic level.

Harnessing data and insights.

Better collaboration between business units, and between

brands and retailers.

Education, particularly at the senior level as to what the

disciplines are and can deliver.

Test and learn.


Biggest success limiters remain lack of experience, resources, and

senior management support

Fear and short termist thinking also play a part

F4: What do you see as the biggest success limiters, impediments and roadblocks for shopper and retail marketing?

A general lack of experience and understanding within the

industry, plus fear of change for many established players

brought up on a diet of TV advertising.

Insufficient budgets, lack of lead times to integrate shopper

correctly and lack of measurement of campaigns.

Growth of online shopping

Lack of resources – both people and budgets.

Senior Management’s level of knowledge & interest.

Data and privacy issues.

Short termist thinking: both brands and retailers. Proving

the return or you don’t get to do anything

Ignorance, fear and emphasis from mainstream agencies

that the dinosaur of TV will remain. Mainstream agency

snobbery.

Being seen as ‘end of the line’ execution people.


In sum …

Some improvements in strategy, measurement, digital, test and learn.

But pace of change is slow.

Inertia:

Brand manufacturers a combination of

‘templated’ (resulting in ‘lazy’), junior,

understaffed, risk averse, resigned/punch drunk

in dealing with retailers

Best Practice:

Still considered to be internal and external

collaboration. Not there yet for most, particularly

externally

Insights:

Doing more with less means insights perceived

to be growing sector to help with proving ROI

However little evidence of increased investment

in insights sources or people

Capability:

Low to medium, but improving over time. Few

offer roadmaps or capability training –

opportunity here. What does ‘advanced’ shopper

marketing look like?


The Future

Channels

• Future not in FMCG, too limiting by retailers.

Talent and brain drain in FMCG

• More opportunities in pharmacy, technology,

beauty (and people with FMCG smarts are

moving into these channels)

• Increasingly online/seamless/digital

Horizon

• Not much change in the immediate term

• Mid term yes, see a tipping point coming –

expect Amazon and others will create need

for retailer/market change through shopper

behavioural change that will drive other

retailers to rethink.

• Future will either become experiential (ie UK)

or analytics/price based (USA).


What’s changed in 2017 versus 2014?

• Less perception of

bandwagon

• More strategic role

• Use of digital and social in

programs

• Measuring more often

• Success of programs

• Retailer control of media

assets increasing, thereby

increasing cost of

participating in or running

campaigns

• Fewer programs overall

(‘fewer, bigger, better’)

• People resources

• Budgets

• Education

• C-suite support and

interest

• Shopper led campaigns

(vs brand or retailer led)

We’re getting better at it, but there is a ceiling on innovation and effectiveness due to retailer and c-suite

limitations, particularly in FMCG. Brands and agencies putting more focus on what they can control.


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Documents

POPAI/GfK Shopper & Retail Marketingpopai.com.au/assets/2017/10/Day-2_Norrelle-Goldring_POPAI-2017... · POPAI/GfK Shopper & Retail Marketing Industry Survey 2017 - Findings Prepared