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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.

Chairman\u2019s Commentary
A Retail Publication by
7575 Paragon Road, Dayton, Ohio 45459
P +1 937 439 4400
F +1 937 439 4340
retail@designforum.com

D. Lee Carpenter, Chairman & CEO
Jill Davis, Editor
Lucas Human, Design/Production

\u00a9 2009
Ideations
Use the \ue001nancial crisis to spark \ue003resh thinking and more
power\ue003ul executions.
Radical Ideas

Recession or no, our research shows that
shoppers enjoy \ue001nding something new in
the store. It\u2019s human nature. Whenever
retailers bring energy and inspiration to the
game\u2014even when shoppers are think-
ing long and hard be\ue003ore opening their
wallets\u2014they still give the store credit \ue003or
a better shopping experience. And \ue003rom a
better experience comes all good things:

the engagement, loyalty and bottom-line
bolstering that smart businesses seek.
\u201cSomething new\u201d encompasses a lot o\ue003
territory. It can be a new prototype, a
store-within-a-store, a value product,
a time-saving service or an educational

program. For our client Burger King, it\u2019s a
combination o\ue003 value and excitement, \ue003rom
Burger Shots to the Whopper Bar, a hip
new restaurant we helped them create.

The Whopper Bar is a great example o\ue003
what many brands are trying to do right
now\u2014be more interruptive, opportunistic
and dramatic with their innovations.

A key di\ue002erentiator o\ue003 the BK brand is fame-
broiled burgers. We brought this attribute
to li\ue003e through various design elements. The
overall look is darker and urban-industrial
with textures o\ue003 \ue001re and metal, yet the space
is simple to use and \ue003riendly. The smaller

\ue003ootprint o\ue003 this concept has opened
doors to new real estate opportunities.

That plus the revitalized brand twist is helping BK enter venues no one would have considered them \ue003or previously.

One o\ue003 the mistakes made most with new
concepts is the lack o\ue003 an idea that\u2019s power \ue003ul

enough to get you where you want to go. Companies know that doing something is better than doing nothing. And some are

closing under-per\ue003orming stores intending
to do a better job with their best stores.
But i\ue003 your goal is disruption, you\u2019ve got
to really \ue001re up the passion around your
brand and \ue001nd an aspect to dramatize.
The second most common mistake in retail

seems to be lack o\ue003 speed. While looking
back on other times o\ue003 crisis, a CEO o\ue003 a
dot-com recently recalled how his company
managed to survive and thrive because he
pushed \ue003or radical new ideas. But in hind-
sight he realized his biggest mistake was
moving too slowly. Had he been quicker,
he\u2019d have a bigger share o\ue003 the market
today. The same o\ue003ten happens in retail.

Last year our clients were urgently ask-
ing us \ue003or \u201cQuick Wins\u201d in the store. This
year they are more cautious. Despite the

increased challenges \ue003acing them, moves

are being care\ue003ully evaluated to minimize
risk and preserve capital. But time is o\ue003
the essence. We can\u2019t let uncertainty rule.
Surveys suggest that shoppers are taking
more time to research their purchases
both at home and in the store. That means
they\u2019re looking at your competition.

Most companies are quick to cut costs,
but slow to \ue001nd and execute the ideas
that deliver a new bundle o\ue003 value to the
customer who\u2019s looking \ue003or a retailer to help
them reach a balance between \ue003rugality
and the indulgences they\u2019ve had to give up.
Today you can tap into the many innovative

tools that help speed up decision making, such as research and modeling to create a business case \ue003or change or to deliver the

solid insights needed in the creation o\ue003 \ue003resh
strategies. Collaboration tools can help cut
across silos so you can speed up productiv-
ity. You can make decisions with a replicable
process that o\ue002ers scale, speed and fexibility.
There are also optimization tools avail-

able. We\u2019ve got one o\ue003 the best that keeps proving itsel\ue003 very power\ue003ul and e\ue002ective, StoreBoard. So i\ue003 it\u2019s simply not wise to

make a radical change to your business,
you can still do what you do better than
anyone else. A top priority \ue003or your brand
right now is generating ideas \ue003or improv-
ing relationships with customers. We\u2019ve

noticed creative retailers are putting more
emphasis on service, getting credit \ue003or
solving customer problems and earning
trust. That will de\ue001nitely score points.

Whether you decide on a dramatic reinven- tion o\ue003 your brand or a more simpli\ue001ed retail experience that\u2019s emotionally engaging, the intelligence and invention available today

can help you look past the challenges to see

the opportunities. You can add intensity and di\ue002erence without compromising\u2014 sort o\ue003 like Angry Sauce on a Whopper.

For more in\ue003ormation or to be placed on our mailing list, visit our website: www.interbranddesign\ue003orum.com and complete the contact \ue003orm. Reprints o\ue003 articles or excerpts without the express written permission o\ue003 Interbrand Design Forum is prohibited. Ideations will print 4 times in 2009. Subscriptions: $125 annually in the U.S.; $150 elsewhere.

Thought\ue003ully,
D. Lee Carpenter
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