thoughts on shopper marketing @ nitie

Shopper Marketing The Gospel According to Stephen Remedios

The Consumer: Is the ultimate user of our

product Knowing him/her is responsibility

of Brand Development

Consumer ≠ Shopper

The Shopper: Is the one who makes the

purchase decision in the Point of Sale

Knowing him/her is responsibility of Customer Management

Why?

What?

CUSTOME S

HO

PP

E

R

CUSTOME R M

A KE

TING

Wal Mart Global asked their main suppliers to help them to bring “Health and Wellness” concept to their stores

Unilever Vitality Strategy totally linked with Wal-

Mart’s “Health and Wellness” Strategy

Shopper insights

These days the shopper expects more out of the products she chooses and the environment in which she buys. Being healthy isn’t just about not being sick – it is a desired optimal state that she seeks for her family. It’s about feeling well and living well.

Shopper Marketing

Retailer

Brand

Shopper

Unique ProductDisplaysRetail Database

Targeting

SamplingEvents

PR

Radio Print

Partnering withRetail Equities

On-Pack

In-StoreSignage

Retail- tainment/Brand Experience

TV Relationship Mktg

360°Communication

Retail Marketing

City Attacks

Advertising

PR

Events

Product

Sponsorship

New media Corporate Social Responsibility

Why?

Need    

Indulgence    

Emergency    

Habit    

Escape    

Kill  Time    

Treat  oneself    

Relaxa<on  

Shopping  Modes:  Behavior  at  aisle  Browsing

(20%)

Tunnel Shopping

(6%)

Contemplating (48%)

Evaluating (16%)

Avid Shopping (9%)

They interacted with single brand & did not purchase: NON

SERIOUS

They just came & touched/picked and purchased

One brand and left: ONE TRACK MIND

They came interacted with one brand I.e. Touched/picked, either sniff, etc. one brand &

then purchased:PRE-DECIDED

They evaluated multiple brands (2 or more brands) but purchased finally 1 brand:

OPPORTUNITY

They evaluated with multiple brands and also

purchased multiple brands: MULTIPLE OPPT.

Some interacted with multiple brands

but still did not purchase: NON SERIOUS

Main shopping

Large, planned grocery shopping trip done on regular basis : weekly,

monthly or payday

Top up

done in between main shopping trips for

just a few items

Meal for today

to buy ingredients for today’s meal

Treat for myself

going to stores to find all that is available as well as buy something for myself

For a special meal

At home e.g. guests coming over

Special events

On special occasions e.g

birthday / festival etc.

Emergency shopping / Immediate consumption

Needed to buy items I did not expect to

run out of or forgot to purchase / Products bought to eat / drink

immediately

Special offers

Went bargain hunting or sought out items

on promotion

Window shopping

Impulse purchase because I went

browsing

Shopping Missions Defined

US  Shopper  Typologies  

Proud Budgeters

Struggling & Careful

Resigned & Coping

Driven to Convenience

Penny Pinching Families

In Control & Savvy

Live to Shop

Detached Spenders

11.2% 10.6%

% of All Shoppers % of X Company Category $ Across All Retailers

13.2% 14.5% 12.8% 15.5% 12.2% 10.0%

13.3% 13.1% 12.9% 11.2% 10.7% 9.2% 13.6% 15.9%

Big Shopper Themes for the Economic Downturn

‘I only buy what I can afford to buy’

AFFORDABILITY

‘I don’t want the cheapest option, I want a cheaper option’

TRADING UP, TRADING DOWN

‘I try to stick to what I know I need to buy’

PLANNING

‘Help me find what I’m looking for quickly’

VISIBILITY

‘OK, which one of the 150 do I buy then?’

CHOICE

‘Just tell me what this product does and whether or not it’s

good value’

SIMPLICITY

‘Right that’s Monday done, now what are we going to have on

Tuesday?’.

MEALS

‘I want to be confident this product won’t let me down’

REASSURANCE

Pack 5

Why this is important…for a shopper

We are bombarded with choice…

Space in store is being squeezed…

Grocery stores are incredibly complex, visually…

Our brains like things to be easy…

Most shoppers buy the first product they interact with…

We still design most packs for consumers rather than shoppers

In some cases this works, in some cases it doesn’t

Too many beauty contests, not enough focus on stand out on shelf

1. Be The Eagle…

Why this is important…

As with brands, we use simple visual cues to identify a category

Bottle & Cans = Soft Drinks Boxes = Cereals

Red Bull = You know it’s a soft drink & you know it’s Red Bull

Kellogs Cornflakes = You know it’s a cereal & you know it’s Kellogs Cornflakes

Best in Class…

2. Pack ID – The Visual Trigger…

Why this is important…

We use very simple visual cues to recognise brands in store

Best in Class…

V

Gillette Fusion Kimberley Clark

3. Visual Elements Rule…

short term memory 15-30 seconds

1%

5% 7 +/- 2 bits. So between 5-9 pieces of visual information

visual stimuli

sensory buffer store 0.5 seconds

unprocessed

Why this is important…

Humans are inefficient at processing visual information

special offer that no-one read

only 1% read the messages

35%

2%

30% 13%

13% 0.1%

1%

1%

only 2% read the skin credentials

Why this is important…

Shoppers filter out any unnecessary information on packs

Best in Class…

4. Second Proposition Rule…

Why this is important…

We are bombarded with information in our lives, no more so, than in store

Why this is important…

Remember, our brains like things to be easy!

Why is BOGOF a shoppers favourite promotion. ‘Get one free’…you don’t need to do any maths : it’s obvious what the benefit is

Why this is important…

Many shoppers don’t read packs in store. Of those that do, they spend relatively little time doing it

% of Shoppers who read pack in their hand in store…

Spreads = 18%

Dressings = 32%

Household Cleaners = 36%

Hot Beverages = 35%

Hair Care = 72%

Best in Class… Ella’s Kitchen : Range of foods/sauces/smoothies aimed at getting kids to eat more healthily. Aim is to create products / packaging / names that really connect with Kids

5. Shout ‘Pick Me Up’ – 3cm Gap Rule…

Why this is important…

Our brain likes things easy

Which is the easiest parking manoeuvre?

Why this is important…

In those first seconds at the shelf, reactions are reflexive / involuntary (what draws the eye) rather than psychological. The affordance of the pack (shouting “pick-me-up”) has a great impact on (a) the visibility of the pack and (b) the amount of other information that is seen (source : studies conducted by Consumer Sciences team in Port Sunlight).

All other things being equal, ease of pick up is a key criteria of selection

Shoppers are most likely to select the pack that is easiest to pick up

Why this is important…

%’s refer to % of people who select that pack when it is present in the choice scenario (source : Consumer Sciences team)

*Note need to be aware of supply chain & any in store/on shelf issues if we were to follow the 3cm Rule

Best in Class…

When placed next to the same SKU, each of these products has approximately a 3cm gap between the 2 SKU’s halfway up / at the top of the product

The 5 principles that we believe are crucial to designing packs for shoppers…

1.  Be The Eagle - Fit In, But Stand Out

2.  Pack ID - The Visual Trigger

3.  5 Visual Elements Rule

4.  2 Second Proposition Rule

5.  Shout Pick Me Up - 3cm Gap Rule

These elements are all interlinked. The overriding principle is to make things as easy as possible for the shopper. So, designing simple, clear and consistent packs

Thank You!

Stephenremedios.com

Pack design, 5 basic principles (summary): Be The Eagle - Fit In, But Stand Out

Pack ID - The Visual Trigger: A brands visual trigger needs to be CRYSTAL CLEAR on Pack, in ALL 360 communication and CONSISTENT

over time. 5 Visual Elements Rule: Have a maximum of 5

visual elements on the front of pack 2 Second Proposition Rule: the shopper should 'get' in 2 seconds what the product is and what

the product does. Shout 'Pick Me Up' - 3cm Gap Rule: Design

Packs that are easy to pick up, apply 3cm gap principle in design and make it (sub consciously)

obvious where to grasp.