shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •

shopper marketing model

kompas voor dekompas voor detrade marketeer

D HDen Haag20 oktober 2009

Prof. Gino Van OsselProf. Gino Van OsselEva Pelgrims

Retail & Trade Marketing Research Centre – Reep 1 - 9000 Gent - BelgiumRetail & Trade Marketing Research Centre Reep 1 9000 Gent Belgiumtel ++32/9/210.98.67 fax ++32/9/210.98.75

e-mail [email protected] www.vlerick.be/rtmrc

dagenda

• the shopper marketing model• what ?• what ?• added valueh l• shopper relevance• what ?• added value

• trade marketing & shopper relevanceg pp• trade marketing model• trade marketing mixtrade marketing mix

• next steps

the shopper marketing model:h t ?what ?

behaviour


behaviour

shopperconsumer/characteristics/need state


consumer characteristics• level of involvement

behavioure e o o e e

• brand loyalty or preference• …


consumer shopper ?consumer = shopper ?if not:

• prescription ? brand or product ?• empathic behaviour ?


shopper characteristics• sociodemographics• need segmentation

behaviour• need segmentation• …


need stateneed state• shopping missions• …


productcategory/segment/product/SKUcategory/segment/product/SKU…

brand behaviour




brand behaviour



channel• traditional, convenience, leisure, internet

subchannel

behavioursubchannel

• generalist vs. specialist• price level

shopper…

consumer/characteristics/need state

distributiondistributionchannel/subchannel/format/…

retailer/banner



subchannel

behavioursubchannel


shopper…



retailer/banner



subchannel

behavioursubchannel


shopper…



retailer/banner



subchannel

behavioursubchannel


shopper…



retailer/banner



brand behaviour


distributiond k i

distributionchannel/subchannel/format/…

retailer/bannertrade marketing

dagenda



• next steps

the shopper marketing model:th dd d lthe added value


brand behaviour


distributiond k i




• the checklist:• exhaustive

• How novel is the chosen distribution • an existing channel, where we are already present

• cross-industry

• a double objective:

channel activation • an existing channel, where we are not yet present

channel development h l h d ’ i i h k

j• assessment

• recommendations

• a new channel, that doesn’t exist in the market channel creation


The scope Assessment generictrade marketing strategy

Shopper & consumer

Other distributioncharacteristics pp

productShopper

Distributionchosen distribution

product

Other productChosen distribution

vs. competition pcharacteristicsfor this product


Usage and attitude

In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues.

• To what extent is the consumer involved?

• To what extent does the consumer perceive significant differences between the competing products?


5variety complex

perceived

seeking

perceiveddifferences

routine orhabitual

cognitivedissonancehabitual dissonance

0 5level of involvement

typology of buying behaviour


For the remainder of the checklist:

• Please rate your answer with a score of 1 to 5; depending on the question, “5” stands for ‘very high’, y ; p g q , y g ,‘far above average’, ‘totally agree’,…

• Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety,… and/or the brand.


For the remainder of the checklist:

• Please rate your answer with a score of 1 to 5; depending on the question, “5” stands for ‘very high’, y ; p g q , y g ,‘far above average’, ‘totally agree’,…

• Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety,… and/or the brand.

• Is the shopper brand loyal?

gaming console software Wiig g

brand loyalty 4 54.5 4.25


• the checklist:• exhaustive

• How novel is the chosen distribution • an existing channel, where we are already present

• cross-industry

• a double objective:

channel activation • an existing channel, where we are not yet present

channel development h l h d ’ i i h k

j• assessment

• recommendations

• a new channel, that doesn’t exist in the market channel creation

• for juniors:• do not reinvent the wheel• do not reinvent the wheel

• for seniors:strategic assessment• strategic assessment



Shopper & consumer


productShopper


product




set the playing field:e.g. FMCG or DIY or other

input

select the product select the distributione.g. Chocomel Hot pads e.g. supermarkets t

“At what level do you want to do the analysis?”• category / subcategory / segment / subsegment / product / variety / … / SKU• the entire category / all brands of single supplier / a single brand / …g y g pp g


case Chocomel Hot - part 1


set the playing field:e.g. telecom or DIY or other

input

select the product select the distributione.g. KPN Mobile internet - laptop e.g. telecom specialty stores t


case KPN – part 1

dagenda



• next steps

shopper relevance:h t ?what ?

access

price offerp offerconsumerrelevancerelevance

experience service


access

price offerdominate

p offer

experience servicedifferentiatedifferentiate


access

price offerdominatedifferentiate

p offer

experience service


easy to shop

value choicevalue choice

experience service


easy to shop

productcategory/segment/product/SKU

easy to shop

value choicecategory/segment/product/SKU…

brand behaviour

shopperexperience service


distributiond k i



dagenda



• next steps

shopper relevance:dd d l ?added value ?

easy to shop

345

012 offervalue

as is

ii serviceexperience


easy to shop

345

012 offervalue

as is

t bto be

serviceexperience


easy to shop

345y p

012 offervalue

retailer0

category

serviceexperience


retailer = category(to be)( )

yes no

retailer:yes align motivate

retailer:as is = to be

no use categoryl defendno as a lever defend


case KPN – part 2



dagenda



• next steps

trade marketing & shopper relevancet d k ti d ltrade marketing model

trade marketing & shopper relevance:t d k ti d ltrade marketing model


Shopper & consumer


productShopper


product




set the playing field:e.g. FMCG or DIY or telecom

input

select the product select the distributione.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores t

assess the economic & target group value, and collaborative opportunitiessee The Trade Marketing Dimension – e.g. high / high / high


economic valuelow high

obsolete salesfocustarget group low

brandf

brand &l

g g pvalue

highfocus sales

g

• visited by the consumer• good fit (positioning)• suitable to communicate

adapted from: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. The Hague, 2007


set the playing field:e.g. FMCG or DIY or telecom

input

select the product select the distributione.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores t

assess the economic & target group value, and collaborative opportunitiessee The Trade Marketing Dimension – e.g. high / high / high

ounderstand the generic trade marketing strategysee The Trade Marketing Dimension for the 8 generic strategies – e g trade leadership outpu

see The Trade Marketing Dimension for the 8 generic strategies – e.g. trade leadership

assess the objectives utjhigh economic value drive sales

high target group value build the brandcollaborative opportunities monitor the trade relationship


• sales objectives• grow the market

increase product penetration

• trade marketing strategies• withdraw • increase product penetration

• increase intensity (volume or value)• grow the market share

i b d i

withdraw• monitor sales• brand monitor

• increase brand penetration• increase brand loyalty

• branding objectives

• brand focus• defend sales

sales focus • cognitive• awareness• knowledge

• sales focus• enhance trade• trade leadership g

• affective• action

• intent & trial

trade leadership

• intent & trial• improve trade relationship


easy to shopsales

salessalesvalue choice

sales>

branding

sales>

branding

experience iexperience servicebranding > sales branding and sales


easy to shopsales

salessalesvalue choice

sales>

branding

sales>

brandingimproveimprovetradetradetradetrade

relationshiprelationship

experience i

pp

experience servicebranding > sales branding and sales

dagenda



• next steps

trade marketing & shopper relevancet d k ti itrade marketing mix

• the 5 pillars of trade marketing:

channel category in store trade businesschannel development

category development

in-store marketing

trade communication

business analysis

strategic xx

tactical x xx x xx x

operational x xx x xx

source: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. Academic Service, The Hague, 2007


• increase distribution• more outlets, accounts, (sub)channels

• store merchandising• optimise the range (reduce ?)

easy to shop

optimise the range (reduce ?)• delist redundancies & slow runners• focus on fast runners• broaden the range (“one stop shopping”)

value choice

• broaden the range ( one stop shopping )• shelf merchandising• improve in-store availability

• give growing SKU’s more space• POS-communication & signage• packaging design experience servicepackaging design

• consumer marketing !!• product logistics (handling, delivery,…)

experience service


• pricing• pricing• regular vs. promotional• perception vs. actual level

i

easy to shop

• promotions• intensity

• frequency vs. strengthvalue choice

• nature of the benefits:• discount / volume vs. added value

• other aspects• loyalty programmes• joint-promotions• tailor-made promotions

t experience service• events• sweepstakes, competitions,…

experience service


• consumer decision treeeasy to shop

• consumer decision tree• add missing SKU’s, delete redundancies

• increase the range

value choice

increase the range• growing categories, segments, brands,…

• add slow runners

• substitute the range• favour strong/profitable brands & SKU’s

experience service

• identify opportunities for innovations• consumer marketing!!!

experience service


• what ?• the brand or the product ?

• how ?

easy to shop

• how ?• address all senses

• carriers ?value choice

• the store itself (“fit”)• the actual merchandise• visual merchandising• visual merchandising• fixtures• (new) technologies

experience service• staff• of the retailer ?• of the company ?

experience service

• own team vs. outsourced ?


• type/when• before / during / after sales

• level

easy to shop

• level• full-service vs. (aided) self-service

• qualityvalue choice

q y• sales skills vs. product know-how• attitude• consistency• consistency

• staff• fit with the shopper

i i• availability

• support by manufacturer• tools vs training

experience service

• tools vs. training• product promotors




case KPN – part 3

dagenda



• next steps

t t f next steps: for us

• towards an adaptive model • the product distribution & shopper variables• the product, distribution & shopper variables

• all variables (“questions”) are linked to the objectives:• drive sales / build the brand / improve the trade relationship

• the adaptive model will only call for the variables directly linked to the relevant objectives !

• the tailor-made versions• the tailor made versions• for a ‘playing field’• for a geography• for a company• for a category• ……

• an automated decision support tool

t t f next steps: for useasy to shop

productcategory/segment/product/SKU

y p

value choice

category/segment/product/SKU…brand behaviour

experience service

shopperp



retailer/banner trade marketing

t t f d ?next steps for you and us ?

• training programme• Vlerick + TMA• hands-on & case based• early 2010

watch your (e )mail !!!watch your (e-)mail !!!

t t contact us

• Retail & Trade Marketing Research Centre• management education• workshops• entertrainment• research• research• consultancy

Join me on

[email protected]@vlerick.be

Documents

shopper marketing model - Trade Marketing … · the shopper marketing model: th dd d lthe added value • the checklist: • exhaustive • How novel is the chosen distribution •