1. Presented by: DIGITAL-INFLUENCED PATH TO PURCHASE Anne Zybowski STEPPING STONES: SHOULD SHOPPERS NEED THEM Vice President, Retail Insights Stepping-Stone 1.One of a series of stones acting as footrests for crossing streams, marshes, etc. 2.A circumstance that assists progress towards some goal

2. © Copyright 2012 Kantar Retail Kantar Retail’s Path-to-Purchase Framework –The following slides outline Kantar Retail’s Digital-Influenced Path to Purchase Framework, a helpful way to think about the work that suppliers and retailers need to do along the path to influence shoppers at the point of decision – whenever and wherever that is. Stepping stones is important visual that is very purposeful; in today’s world, shoppers often skip steps along the path – making each stone all the more critical, should the shopper use it in the path to decision Skipping the path is more and more common with new tools to automate routine and save shoppers time and money (auto- replenishment/subscribe and save); increased importance to being on the list when the shopper is the Recursive nature of the loop is new dynamic. Must make the click stick and always-be-closing. 2 Shopper is in Control; Assist & Influence is Key Source: Kantar Retail analysis

3. © Copyright 2012 Kantar Retail Off the Path: The Digital Shift More Points of Influence Before FMOT 3 Zero-MOTFMOTSMOT Media/ Awareness Source: Kantar Retail analysis

4. © Copyright 2012 Kantar Retail How Does Digital Impact the Path to Purchase? Is it a Pool, a Puddle, a Circle? 4 Stepping-Stone step · ping - stone 1.One of a series of stones acting as footrests for crossing streams, marshes, etc. 2.A circumstance that assists progress towards some goal Source: Kantar Retail analysis

5. © Copyright 2012 Kantar Retail A “Typical” Path to Purchase New Mom Buying a Car Seat 5 Choose Retailer/ Channel User Satisfaction Select & Buy Source: Kantar Retail analysis, Company websites

6. © Copyright 2012 Kantar Retail Digital & Information = Two New “Steps” Information & Social Media Alter Research and Advocacy 6 Create Demand Choose Trusted Source Navigate Store/Site Select & Buy Choose Channel User Satisfaction Advocate Community Source: Kantar Retail analysis

7. © Copyright 2012 Kantar Retail Information is Critical to Buying Process Trusted Source for Information is Key 7 Source: Kantar Retail analysis 3 rd Party/Social Google & other Search Blogs Communities Social Facebook Manufacturer Vendor.com Brand sites Retailer Retailer.com Amazon.com Choose Trusted Source Navigate Store/Site Choose Channel Step is often recursive…

8. © Copyright 2012 Kantar Retail In World of Social & Consumer-Generated Media – Advocacy is the Best PR Moves well beyond “satisfied” customers –Engagement –Conversation –Listen 8 Advocate Community Choose Trusted Source Source: Kantar Retail analysis, Company websites/Facebook

9. © Copyright 2012 Kantar Retail The Shopper Controls the Path CPG/Retailers Must Influence & Assist Along the Path 9 Navigate Store/Site Select & Buy Choose Channel User Satisfaction Advocate Community Create Demand Choose Trusted Source Source: Kantar Retail analysis

10. © Copyright 2012 Kantar Retail Getting Started: From Control to Influence Path is recursive & not necessarily sequential –In some cases, shoppers will skip the path altogether –Focus on points of influence is key Digital influences two new steps –Trusted source info = ensure visibility at key points of influence –Advocacy = can I leave my product in the hands of its users? If you are trusted source, need to be able to close –Find the right conversations to become last retailer shopped –Closing the deal is complex, new skills & focus required 10 Source: Kantar Retail analysis

11. © Copyright 2012 Kantar Retail 245 First Street Floor 10 Cambridge, MA 02142 F +1 617 499 2723 www.KantarRetailiq.com Anne Zybowski W +1 617 588 4195 Vice President, Retail Insights