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The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group.

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Presentation on theme: "The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group."— Presentation transcript:

1 The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group

2 The Future of Shopper Marketing What trends are you seeing? What are the top challenges? Which retailers are on the cutting-edge?

3 Your personal vision Is “Shopper Marketing” just another word for what Category Managers have been/should have been doing all along? – Lots of people in catman role have been rolling out charts/wowing people - but this is what they should be doing: align with core demographics, align with your shopper segments/customers in your store, think that a lot of companies don’t do that- they were focusing sales data/category – not the shopper – Although shopper marketing is what catman should be doing, we haven’t really had access/know about tools. As the tools evolve this process will evolve. – A lot of companies don’t train people how to think out of the box and search for the nuggets – While this is important for a catman to do, it is not the whole thing…choosing item to place in assortment, then shopper chooses…in between are two supply chains! – The category manager is a key element as a decision-maker, particularly for what is on-shelf. – What is the shopper’s problem? What do they want and at what price… – ‘Devolution’ of catman that started as data + consumer insights driven…devolved to use of tools. We did give them which was actionable - space and assortment and a bit of pricing. – Asking for shopper satisfaction and experience…store itself/design/navigation…assortment/availability…knowledge of the shopper buying history and data…plus more – Shopper marketing is different and new because it is cross-category, also consumer perception of banner all the way through ambience of the store and their whole experience. – From the shopper viewpoint – example of a shopper (like a diabetic) shopping nine+ categories…should be arranged more for their convenience (and represents $9,000 annually) – Align operations and marketing in the retailer to make this work. – It is relative to your perspective in the industry (mfgr and retailer)…is this another word for ‘solution selling’ – Who owns the shopper today?

4 ‘Solution Center’ to provide solution to what shopper is trying to do. The person that suffers is the shopper because the aisles aren’t coordinated. How can we get categories talking to each other? How can we get disciplines talking to each other? –....P&G working on this quite well, but when any mfgr go retail it is with their own agenda – but catman should be the disinterested 3 rd party who includes competitor, in order to satisfy the shopper

5 What Top Challenges? Trading Partners – who to interact with? – In larger retailers we are seeing creation of CMO – who are the skill sets from the mfgr that the marketing group would want to see. (They are not wanting to hear from sales) – What is disadvantage of shopper/catman being in marketing? – Seeing trend of forming 3 rd department which sits between sales/marketing and reports to ‘commercial director’ at the same level as SVP/sales – If you look to retailers – buyer evolved to catman and marketing was different. – If shopper needs were being met, then mfgr would sell max product – Mfgrs bring enormous resource to retailers, who are trying to figure this out quickly and it remains to be seen how everyone’s agenda/goals could be met. Reporting Structure – Marketing, Merchandising, Space, In-store, how make these disciplines work together to implement? – We have allowed retailers to …we have now segmented too much/not working together – Who should have responsibility for this at the manufacturer? – Who should have responsibility for this at the retailer?

6 What Trends? (HOLD FOR FUTURE MEETING) Which retailers you feel are most leading-edge, or open to new ideas? Personality/behavior-based shopper segmentation vs traditional use of demographics? Will retailers begin collecting shopper opinions via in-aisle laptops? In-store promotions and use of POS discounts for repeat product purchases

7 Should we do a Survey? What questions?

8 Speaker Nominations Nominate a retailer or Manufacturer (Please feel free to volunteer yourself) Which companies are most leading edge - who would you like to hear speak? – Retailers: Walgreens, CVS – Manufacturers: Nestle Purina, Brad Anderson, Procter (ask Warren), Kraft - how organizing/learning/testing What technology would you like to hear about? – Invite Smart Revenue

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