Intro to shelf savvy marketing shelf savvy tool books

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1. Introduction to Shelf-Savvy Marketing SHELF-SAVVY TOOLS 2. Book Cover, Spine and Back Shelf-SavvyMarketing 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 3. Introduction to Shelf-Savvy Marketing Capturing the value of our brands by converting shoppers into buyers. 4. 7Shelf-Savvy Marketing Shelf-Savvy Tools Series Metrics Commercializing with Customers Activating for Retail Impact Differentiating Brand / 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. 5. 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 6. What does it mean to be shelf-savvy?1 11Shelf-Savvy Marketing 7. What 13Shelf-Savvy Marketing Our mission: To inspire moments of optimism... and happiness. To create value. To make a difference. 8. For consumers A positive impact on the body, mind, and spirit Our objective: Creating value for all the stakeholders in our System. 15Shelf-Savvy Marketing What does it mean to create value? For shoppers An easierand less price-elastic shopping experience for each unique shopping mission For customers Improved beverage incidence, basket size, and shopper loyalty Collaborating for Value Converting Shoppers Into Buyers Creating Brands People Love SHOPPERS CONSUMERS CUSTOMERS What BRANDS 9. 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. 17Shelf-Savvy Marketing SHOPPERS C USTOMERS What CONSUMERS BRANDS 10. Fusing inspiring brand ideas with commercial discipline to create value. 19Shelf-Savvy Marketing love value BRANDS What 11. Our Shopper Marketing Manifesto: We believe shelf-savvy marketing converts shoppers into buyers, transforming insights into value at the shelf. 21Shelf-Savvy MarketingWhat 12. Why should we evolve? 23Shelf-Savvy Marketing 2 13. 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 dont. 25Shelf-Savvy Marketing 80% 20% Source: KO We need to be more relevant in a world of more options. WhY 14. 27Shelf-Savvy Marketing As the global retail landscape evolves, large retailers are creating more leverage. Large retailers are rapidly expanding in developing marketscreating 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 15. 29Shelf-Savvy Marketing Demographic and social trends are changing how people shopand 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 16. 31Shelf-Savvy Marketing We are building brands people lovebut 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 $ 17. 33Shelf-Savvy Marketing Wooing Brand Lovers is criticalbut we cant 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 usersand activate the store to capture the large number of trialists. 18. 35Shelf-Savvy Marketing 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. 35Shelf-Savvy Marketing 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 19. 37Shelf-Savvy Marketing 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: BoozCo. 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 beats 32%Store circular WhY 40%Shelf signage Influences on Purchase Decisions DRUGCO 20. 39Shelf-Savvy Marketing 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? 21. How do we become shelf-savvy marketers?3 41Shelf-Savvy Marketing 22. 43Shelf-Savvy Marketing 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 23. 45Shelf-Savvy Marketing Leveraging commercial discipline to create value at retail for all our stakeholders 45 Metrics Commercializing with Customers Activating for Retail Impact Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 24. Defining the profit pools 47Shelf-Savvy Marketing 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 Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 25. 49Shelf-Savvy Marketing 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 Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 26. Creating a retail experience 51Shelf-Savvy Marketing 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 withthe shopper. Metrics Commercializing with Customers Activating for Retail Impact Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 27. Making it happen in the market 53Shelf-Savvy Marketing 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 Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 28. 55Shelf-Savvy Marketing Simple metrics to measure our progress 55Shelf-Savvy Marketing 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 Differentiating Brand / Pack Strategy Prioritizing Shopper Opportunities Picture of Success HOW 29. A suite of tools to bring Shelf-Savvy Marketing to life 57Shelf-Savvy Marketing _DNA 3.0: Marketplace Execution (ProcessBest Practice) _Shopper Strategy _Point of Purchase Principles _Merchandising Principles _Packaging Principle