Transcript
Page 1: Intro to shelf savvy marketing   shelf savvy tool books

Introduction to Shelf-Savvy Marketing

SHELF-SAVVY TOOLS

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Book Cover, Spine and Back

Shelf-S

avvy Marketing

Introduction to Shelf-Savvy Marketing

FOR INTERNAL USE ONLY.Copyright© 2010 The Coca-Cola Company. DNA: The Coca-Cola Way of Marketing, Brand Value | Brand Love and the Dynamic Ribbon are all trademarks of the Coca-Cola Company.

Global Customer & Shopper Marketing Converting Shoppers to Buyers

SHELF-SAVVY TOOLS

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Introduction to Shelf-Savvy Marketing

Capturing the value of our brands by converting shoppers into buyers.

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7Shelf-Savvy Marketing

Shelf-Savvy Tools Series

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

The Shelf-Savvy Tools Series is intended to provide you with information about the different ways we create value at retail for all the stake-holders in our System.

Each book explores a different topic in depth, and provides you with resources and tools to help you put the content into action.

Use these books as a reference, as a repository for global best practices, and as a refresher.

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9Shelf-Savvy Marketing

Whatis shelf-savvy marketing? Shelf-savvy marketing converts shoppers into buyers, transforming insights into value at the shelf. Why is it important to be shelf-savvy? The world we market in is changing rapidly.

In this new world, more people are making more decisions, amongst more options, in more stores.

To win at the shelf, we must capture the value of our brands by optimizing how shoppers experience our brands at retail. hoW do we become shelf-savvy marketers?By thinking with the end in mind. By understanding our brands and how they connect with consumers, shoppers and customers. By activating holistically, so that we bring value to all of our stakeholders.

Shelf-Savvy Marketing: An Overview

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WhAT does it mean to be shelf-savvy?1

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WhAT 13Shelf-Savvy Marketing

Our mission:To inspire moments of optimism... and happiness. To create value. To make a difference.

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For consumers

A positive impact on the body, mind, and spirit

Our objective:Creating value for all the stakeholders in our System.

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What does it mean to create value?

For shoppers

An easier—and less price-elastic— shopping experience for each unique shopping mission

For customers

Improved beverage incidence, basket size, and shopper loyalty

Collaboratingfor Value

Converting ShoppersInto Buyers

Creating Brands

People Love

ShOPPERS

CO

NS

UM

ERS

CUST

OM

ER

S

WhAT

BRANDS

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Our vision:Design with the end in mind— creating holistic brand and channel experiences that not only inspire people to buy into the brand, but to buy the brand.

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ShOPPERS

CUST

OM

ER

S

WhAT

CO

NS

UM

ERS

BRANDS

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Fusing inspiring brand ideas with commercial discipline to create value.

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love

value

BRANDS

WhAT

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Our Shopper Marketing Manifesto:We believe shelf-savvy marketing converts shoppers into buyers, transforming insights into value at the shelf.

21Shelf-Savvy Marketing WhAT

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WhY should we evolve?

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The global beverage market is fragmenting, creating more alternatives and greater elasticity. 20% of global growth is projected to come from Sparkling, where we have leadership share.

80% of global growth is projected to come from new Still categories, where we don’t.

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80%

20%

Source: KO

We need to be more relevant in a world of more options.

WhY

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As the global retail landscape evolves, large retailers are creating more leverage.Large retailers are rapidly expanding in developing markets—creating new retail formats and challenging traditional shopping behaviors.

Retailers are becoming increasingly sophisticated, leveraging scale and shopper data to build their brands and compete directly through customer/private label brands.

Source: Planet Retail

We need to actively collaborate with our customers to create value.

WhY

GLOBECO

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Demographic and social trends are changing how people shop—and the beverage choices they make.As lifestyles change, people are shopping more often, with smaller transactions.

This creates new shopping occasions and motivations, with more channel and beverage options.

Future Consumption Missions

Imminent Consumption Missions

Immediate Consumption Missions

Stocking Up

Filling in

JIT Meals

Away from home Meals

Special Occasion

Daily Shop

Urgent Items

Non GrocerySource: SONAR/MOTOR

We need to adapt our portfolio to capture new shopping behaviors.

WhY

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We are building brands people love—but not consistently capturing the value. Globally, there is a 10 point gap between our brand preference and volume share. Bridging that gap is equivalent to adding an incremental Latin American group to our business.

Source: Nielsen/B3

We must balance our activation to capture both Brand Value and Brand Love.

WhY

$

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Wooing Brand Lovers is critical—but we can’t forget about the opportunists. While 60% of volume comes from preferrers, 40% comes from more elastic, less loyal non-preferrers.

Source: Nielsen/B3

60%lovers

40% opportunists

WhY

We must embrace our most loyal users—and activate the store to capture the large number of trialists.

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A traditional media model will be much less impactful in our changing world.There have been more new media additions in the past 20 years than in the past 200 years.

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Source: Advertising Age

In some markets, the leading retailer reaches as many people each week as the top 10 television shows combined.

To close the sale, we must actively communicate throughout the path to purchase.

WhY

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More purchase decisions are being made in store.While most grocery buyers have a rough list of their planned purchases, 60% of food and beverage purchase decisions are made in store. Beverage buyers tend to have more preferred brands, but package, size and quantity decisions tend to be made at the shelf.

Source: Booz & Co.

We must make it easy for shoppers to BUY our brands.

28% Brand display

28% Package

Buy 1 Get 1

26% In-store coupons

NEW LOWER PRICE

WAS $3.50$298

Free

Sale

NOThING BEATS32% Store circular

WhY

40% Shelf signage

Influences on Purchase Decisions

DRUGCO

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The challenge: In our new world, more people are making more decisions in more stores.

Are we ready to win at the shelf by capturing the value of our brands at retail?

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hOW do we become shelf-savvy marketers?3

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Execution is core to our DNA.The goal of marketing at The Coca-Cola Company is to combine art and science at every touchpoint to build Brand Love and Brand Value.

hOW

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Leveraging commercial discipline to create value at retail for all our stakeholders

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Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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Defining the profit pools

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We can leverage our insights to help us identify:

Which occasions and missions?

Which customers and channels?

Which shopper segments?

How do we unlock value?

the outcome: A clearly defined set of target occasions, missions, customers, channels and shopper segments.

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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Creating a differentiated offer

Portfolio strategy can help us determine:

Which occasions?

Which brands?

Which packages?

Which price points?

Which channels?

Which equipment?

the outcome: A differentiated bundle that is uniquely suited for an outlet and the shoppers it serves.

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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Creating a retail experience

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Effective retail activation will help us:

Optimize shoppability

Optimize in-store communication

Optimize promotions

Optimize packages

the outcome: A retail activation that communicates directly to— and connects with—the shopper.

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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Making it happen in the market

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We can quickly commercialize our efforts across our System through:

Collaborative Customer Plans

Scalable Activation Platforms

Common development process

Transferring best practices

The outcome: Effective and efficient plans that are commercialized with speed and scale.

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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Simple metrics to measure our progress

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Accessible metrics will help us measure:

Value growth vs. volume growth Are we creating leverage with a segmented portfolio?

Volume share vs. preference Are we monetizing the value of our brands?

Incidence Transaction frequency Amount of transaction Are we impacting consumption and purchase habits?

The outcome: A scorecard to measure the impact of our retail activation.

Metrics

Commercializing with Customers

Activating for Retail Impact

DifferentiatingBrand / Pack

Strategy

Prioritizing Shopper Opportunities

Picture of Success

hOW

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A suite of tools to bring Shelf-Savvy Marketing to life

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_ DNA 3.0: Marketplace Execution (Process & Best Practice)

_ Shopper Strategy_ Point of Purchase Principles_ Merchandising Principles_ Packaging Principles_ Promotions

_OBBPC Architecture_Shopper Driven Category Management

_Shopper Insights_Shopper Segmentation

Metrics

Commercializing with Customers

Activating for Retail Impact

Prioritizing Shopper Opportunities

Picture of Success

DifferentiatingBrand / Pack

Strategy

hOW

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habits to Win at Retail

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1. BalanceBalance Brand Love and Brand Value in all we do

$$$$$$$

hOW

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2. Prioritization Prioritize growth and investment opportunities

$hOW

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3. PortfolioMake disciplined Portfolio choices

hOW

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4. SegmentationBuild segmentation capability for strategy and execution

hOW

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5. DifferentiationCreate pack / price differentiation and innovation

hOW

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6. Occasions Provide a compelling reason when and why our brands should be consumed

hOW

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7. InterruptionCreate retail brand experiences…in and beyond the beverage aisle

hOW

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Shelf-Savvy Marketing

Capturing the value of our brands by converting shoppers into buyers.

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FOR INTERNAL USE ONLY.Copyright© 2010 The Coca-Cola Company. DNA: The Coca-Cola Way of Marketing, Brand Value | Brand Love and the Dynamic Ribbon are all trademarks of the Coca-Cola Company.

Global Customer & Shopper Marketing Converting Shoppers to Buyers