a\ue002ordable, unlike a
lot o\ue003 the tools out
there that are too
narrowly \ue003ocused.\u201d
One store seeing a
pronounced impact
\ue003rom the holistic
approach to shop-
per marketing is
arts and cra\ue003ts
specialty retailer,
Michaels. By asking shoppers why they
purchased, not just what, when and how
much, it discovered their need went beyond
cra\ue003t materials to inspiration and \ue003un. The
store itsel\ue003 wanted more personality, so
its brand positioning was brought to li\ue003e
through higher level category delivery,
all the way to shel\ue003 and package level.
Michaels concentrated on \ue001ve categories
trans\ue003ormational to their business. Shopper
marketing helped \ue001nd the most productive
opportunities, optimize those spaces and
allow the retail brand to shine through. The
re\ue003reshed jewelry section especially delights
shoppers. Innovative design, merchandising
and sta\ue000ng gave it a boutique look and
\ue003eel, while shopper insights led to a new
shel\ue003 organization with the right breakups,
fow and SKU placement. As a result,
store productivity has gotten a boost and
customers are giving Michaels credit \ue003or
being \ue003resh and inspirational. The new store
experience has cra\ue003t-related blogs buzzing.
Collaboration between manu\ue003acturers and
their retail partners has always held the
dual promise o\ue003 reduced antagonism and
gains in competitive advantage \ue003or both
parties. Manu\ue003acturers o\ue003ten have more
shopper data than their retail partners,
who in the past simply merchandised
categories based on POS data. But behav-
ioral data \ue003rom shopper marketing shows
that consumers don\u2019t think in categories.
\u201cI hope we see more collaboration, and
maybe the current sense o\ue003 economic
urgency will help overcome resistance to
that,\u201d says Amanda Yates, vice president
o\ue003 strategy and analytics. \u201cThe toughest
part o\ue003 the two groups working toward
a new strategy seems to be getting both
o\ue003 them to decide to compromise \ue003or the
greater good o\ue003 the category. That means
moving away \ue003rom the proli\ue003eration o\ue003
brand extensions, excessive SKUs. Things
that o\ue003ten lead to a less rewarding shopping
experience. Shopper marketing takes your
thinking well beyond the planogram.\u201d
Shopper Marketing
Strategies
The past year has seen an explosion o\ue003 interest
in shopper marketing. Reportedly 60 percent
o\ue003 brands and retailers are investing in shop-
per marketing e\ue002orts, up \ue003rom six percent
previously. Most, however, admit to being in
the learning stages o\ue003 the emerging practice.
Finding a common language is the \ue001rst
challenge. The term encompasses in-store
media, brand marketing, trade relations and
consumer promotions, as well as reset-
ting shelves and rethinking categories, like
the new initiatives recently announced by
Walgreens. Basically, shopper marketing
re\ue003ers to marketing stimulus that is cre-
ated based on a deep understanding o\ue003 the
shopper. The perceived bene\ue001ts include
increased sales, improved customer loyalty
and overall return on investment, which
certainly justi\ue001es the rush o\ue003 interest.
A short but impressive list o\ue003 case studies,
\ue003rom the \ue003ew retailers who\u2019ve made their e\ue003-
\ue003orts public, shows that although the in-store
\ue003rontier may seem like the Wild West o\ue003 trade
activities right now, the physical space o\ue002ers
signi\ue001cant opportunity to support growth.
What\u2019s exciting is the increased industry
talk around two things. Improved collabora-
tion between retailers and manu\ue003acturers
in order to share in\ue003ormation and build on
what\u2019s working, and a growing awareness
that customers alternate between being
\u201cconsumers\u201d and \u201cshoppers.\u201d The switch is
fipped at the point where people are actu-
ally engaged in window-shopping the store
or aisle, perusing the shelves, browsing
the website or paging through the catalog.
Knowing what\u2019s happening at that moment
is key. That\u2019s why a signi\ue001cant \ue003actor in
shopper marketing is high-quality behavioral
data \ue003rom which to draw the actionable
insights that help shape strategic plans.
\u201cWe use the term to encompass the strategies
and tactics that engage and infuence the
customer inside the store,\u201d says Tim Murphy,
vice president, Interbrand Design Forum. \u201cIt\u2019s
a more holistic take on shopper marketing
that starts at the top level\u2014brand position-
ing, which in\ue003orms the mid-level channel
strategies, retailer requirements and category
management\u2014and goes all the way down
to the promotional level. For the last seven
years, we\u2019ve been working on an approach
we call Shoppernomics, created around our
ability to understand what drives shopper
decisions and then deliver that at retail.
We\u2019ve seen some very exciting results \ue003rom
Shoppernomics. It has the ability to address
the whole store \ue003rom brand to basket and it\u2019s
A Retail Publication
Ideations
Issue 2 \u2022 2009
A deeper level o\ue003 intelligence allows the
retailer and manu\ue003acturer to anticipate the
needs o\ue003 the shopper and arrange the store
to infuence them, not merely accommodate
them. That was the thinking behind Cadbury
Adams/Halls\u2019 study to \ue001nd out how shoppers
behaved around the cold remedy purchase.
When the company conducted in-home
and in-store research to \ue001nd out what was
involved in the decision-making process, it
discovered issues around merchandising,
packaging and experience. One surpris-
ing insight was that people shopped in a
manner opposite to what the company
previously believed. Additionally, it realized
that light-refecting metallic packag-
ing was hard to read and so\ue003t bags were
not conducive to storage at home.
Findings such as these give a CPG com-
pany the ability to improve packaging,
strengthen aisle communication and modi\ue003y
assortments based on shopping styles,
and include strategic brand-blocking to
make a statement at shel\ue003. Such plans \ue003or
orchestration o\ue003 the shel\ue003 set are seeing
greater acceptance \ue003rom retail partners.
\u201cWhen you can fow with the shopper
thought process, you have a better chance
o\ue003 connecting emotionally,\u201d says Murphy. \u201cIt
takes relatively little investment and has a
huge upside. In the beauty aisle, \ue003or example,
you may \ue001nd that better educating her at
shel\ue003 or including suggestions \ue003or new color
combinations suits the prevailing shopping
style. In a case like that, you\u2019re not spending
millions on media. You\u2019re leveraging your
assets to better connect with her needs.\u201d
With the ability to interpret insights \ue003rom
shopper data and translate that into the
physical space, retailers and manu\ue003acturers
have a better chance o\ue003 getting to that sweet
spot\u2014the shopping experience that keeps
people in the store longer, strengthens a
brand\u2019s position, increases share, enhances
ROI, saves marketing/trade money\u2014all the
while making li\ue003e easier \ue003or the customer.
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