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SHOPPER MARKETING STRATEGY, TACTICS & ACTION

January, 2011

Copyright 2011 IQ Agency

SHOPPER MARKETING: AN INTRODUCTION


Copyright 2011 IQ Agency

WHY DO SHOPPER MARKETING?


Build awareness in the marketplace Discover customers earlier in the sales cycle Create brand preference Support comparisons, affect selection, and provide help and utility to shoppers Deliver discounts at the right time and place Drive purchase Drive repeat usage and loyalty (and increase brand preference)

Shopper marketing strategies show you what to do when.

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WHAT IS SHOPPER MARKETING?

Shopper marketing encompasses a wide array of delivery mechanisms and promotional tactics that can be used to reach consumers along the path to purchase, from demand generation through the entire shopping process to post-purchase relationship management.

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YOU PROBABLY ALREADY THINK ABOUT BUSINESS AS A FUNNEL


CUSTOMER AWARENESS CONSIDERATION PURCHASE

//

The moment of truth

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SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

AWARENESS

CONSIDERATION

PURCHASE

USE

LOYALTY

CUSTOMER

Copyright 2011 IQ Agency

SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

AWARENESS

CONSIDERATION

PURCHASE

USE

LOYALTY

AT HOME

a t

ON-THE-GO IN STORE CUSTOMER

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SHOPPER MARKETING WORKS WITH YOUR CAMPAIGN AND PRODUCT MARKETING


Shopper Marketing sits underneath your advertising campaigns and product marketing as a suite of technology platforms that support the brands.

BRAN

D UT

CAM EXEC PAIGN UTIO N

IGN MPA TION CA CU EXE CAM EXEC PAIGN UTIO N

DIGIT

ILITY

AL CO

NTEN T

SHOPPER MARKETING PROMOTION / SAVINGS


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IGN MPA TION CA CU EXE


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6 INSIGHTS ABOUT HOW BEST TO ENGAGE TODAYS CONSUMER


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1. CONNECTING THE DOTS BETWEEN ALL OF THE PARTICIPANTS


END CONSUMER

SWEET SPOT
RETAILER MANUFACTURER

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2. WHEN ASKED WHY THEY USE SHOPPER MARKETING TOOLS, CONSUMERS ARE CLEAR

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WANT TO SAVE MONEY


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Of course, we know that what they say and what people actually do are not always the same...

3. THE SPLINTERED MEDIA LANDSCAPE


Todays media landscape contains many more channels than in the past and customers are engaging very differently with brands. Traditional marketing programs had fewer components, a linear flow, and easier integration.

The old way

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3. THE SPLINTERED MEDIA LANDSCAPE


The new way The new way that consumers navigate the media landscape is both fractured and with each consumer in the driver seat. Forrester has recently referred to this as the splinternet. In the shopper space, a successful strategy has to take into account this splintering and the availability of the wide variety of ways that shoppers choose to interact.

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4. MARKETING IN SPACE AND TIME


The rhythms and routines of everyday life are influenced on a variety of scales. Shopper marketing can tap into these life-stage, seasonal, and situational triggers.

HUMANS LIFE

SEASONAL

SITUATIONS
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5. CONSUMERS AND SHOPPERS CAN AND WILL PROVIDE FEEDBACK ON THEIR EXPERIENCES
Todays consumer has the power to immediately complain or complement each touchpoint they have with a brand. When a customer has a good experience with a brand, they tell 3 people; when its bad, they tell 10,000. Shopper marketing tools can involve your brand in this consumer feedback loop.

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6. SEARCH BEHAVIOR FOR CPG FAVORS THE SUBJECT AREA, PROBLEMS AND SOLUTIONS
SUBJECT AREA > PROBLEM > SOLUTION / PRODUCT > BRAND XYZ SKIING DRY SKIN MOISTURIZER BRAND XYZ
The circles above display the search volume for each search term (in 2009). A holistic shopper marketing search media strategy will test and refine buys across each of these different ways that consumers use web search to find information, content and utility, and savings.
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DIGITAL SHOPPER MARKETING: STRATEGIC FRAMEWORK


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REMEMBER, SHOPPER MARKETING IS ABOUT EXTENDING THE FUNNEL

AWARENESS

CONSIDERATION

PURCHASE

USE

LOYALTY

AT HOME

a t

ON-THE-GO IN STORE

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DRIVING CONSUMERS TOWARD PRODUCT PURCHASE


AWARENESS CONSIDERATION PURCHASE USE LOYALTY

AT HOME

a ON-THE-GO

tSTORE IN
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AND SITUATING THE CONTEXTS AS THEY CONTRIBUTE TO PURCHASE


AWARENESS CONSIDERATION PURCHASE USE LOYALTY

AT HOME

a ON-THE-GO

tSTORE IN
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SHOPPER MARKETING TOOLBOX OF TACTICS


Digital shopper marketing Non-digital shopper marketing

AT HOME

Demographically- and behaviorally-targeted online display advertising Search advertising and local search advertising Retailer websites including eCircular Brand websites and microsites (content), branded utilities Social media, blogs, and trusted sources for research Email-based CRM Printable coupons Television Print advertising Direct mail

IN STORE

ON-THE-GO

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SHOPPER MARKETING TOOLBOX OF TACTICS


Digital shopper marketing Non-digital shopper marketing

AT HOME

Demographically- and behaviorally-targeted online display advertising Search advertising and local search advertising Retailer websites including eCircular Brand websites and microsites (content), branded utilities Social media, blogs, and trusted sources for research Email-based CRM Printable coupons Television Print advertising Direct mail

IN STORE

Product packaging QR and photo-based applications Mobile-based information and support for decision Mobile-based coupons or promotions In store television Digital kiosk Post-purchase digital coupons Post-purchase coupon Circular Rebates Packaging , on-shelf merchandising / advertising

ON-THE-GO

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SHOPPER MARKETING TOOLBOX OF TACTICS


Digital shopper marketing Non-digital shopper marketing

AT HOME

Demographically- and behaviorally-targeted online display advertising Search advertising and local search advertising Retailer websites including eCircular Brand websites and microsites (content), branded utilities Social media, blogs, and trusted sources for research Email-based CRM Printable coupons Television Print advertising Direct mail

IN STORE

Product packaging QR and photo-based applications Mobile-based information and support for decision Mobile-based coupons or promotions In store television Digital kiosk Post-purchase digital coupons Post-purchase coupon Circular Rebates Packaging , on-shelf merchandising / advertising

ON-THE-GO

Local search advertising Mobile websites Mobile coupons Mobile applications (product location or stock info, price comparisons, barcode scanner, shopping list, or augment product use) SMS-based promotions (textto-win) Mobile CRM Outdoor and other OOH advertising Radio

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SHOPPER MARKETING TACTICS VISUALIZED


In-store television Loyalty kiosk On-aisle television

Marketing and loyalty programs in retailers space let manufacturers touch consumers where their message, content, or promotion matters most.

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SHOPPER MARKETING TACTICS VISUALIZED

Loyalty programs outside of retailers give manufacturers more flexibility, though frequently at added cost, since it requires a stream of content updates and management.
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SHOPPER MARKETING TACTICS VISUALIZED


Printed (and digital) circular Retailer CRM email

Retailer printed coupons

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SHOPPER MARKETING TACTICS VISUALIZED

Walmart has an ongoing content program which collects 12 mommy bloggers to forge an online community around walmarts key shopper demographic.

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SHOPPER MARKETING TACTICS VISUALIZED

Target has just released a holiday-themed iPad application. The app has more than just an interactive store finder and circular, but also contains holiday music and content.

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SHOPPER MARKETING TACTICS VISUALIZED

Location extensions power the map-based results for pizza in Atlanta.


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LOCATION-BASED COUPONING AND LOYALTY PROGRAMS


Google Mobile Advertising 1020 PlaceCast ShopAlerts PlacePunch

Google Mobile Advertising uses their location extensions framework to present ads with the shoppers current distance. Note: mobile searches at google.com have grown 500% in the last two years.
Copyright 2011 IQ Agency

ShopAlerts is a location-based mobile marketing solution that reaches consumers while they are shopping or spending time doing the things that they enjoy most - creating unparalleled relevancy tied to place and time. The service works on any phone to deliver messages that consumers find valuable - not intrusive - and reaches customers to in a mindset to make a purchase.
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PlacePunch makes it easy for any franchise or business to implement online marketing campaigns that integrate with Foursquare, Facebook Places, Twitter and other location-based social networks. PlacePunch enables you to build loyalty programs that reward customers for checking into your venues, enables you to automatically send personalized Tweets to customers and helps you learn more about your customers and locations.

COMPELLING SHOPPER MARKETING RESULTS


comScore reports from 2008 through 2010 show that digital shopper marketing has an impact on retailer visits and retail sales. Online display ads have increased store traffic by 6%, and combining online display with search marketing can drive up store visits 43%. One longitudinal study also showed that online advertising has generated an average sales lift of 9% in retail channels. In the grocery space, retailers have seen similar increases of 7% sales lift, along with 4% increased basket penetration and the addition of two extra shopping trips per month on average.

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SHOPPER MARKETING TACTICS IN CONTEXT


Digital shopper marketing Non-digital shopper marketing Primary shopper flow

AWARENESS
Search advertising

CONSIDERATION
Social Media & blogs Brand site e-Circular

PURCHASE

USE
Social Media and brand sites (feedback)

LOYALTY
Brand CRM or loyalty program Retailer CRM email

AT HOME

Traditional media

Retailer website

Word of mouth

a ON-THE-GO

Mobile website Mobile couponing Retailer/ product finder

Location-based advertising offers

Mobile Utilities for in-use scenarios

Mobile CRM

In-store comparison and research Employee advice

tSTORE IN

In-store media Circular Kiosks

Digital enhancements to packaging (QR, etc)

Post-purchase coupon

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SHOPPER MARKETING STRATEGY DEVELOPMENT


Develop the strategic context

What does winning look like? Which consumers should you target? Which customers (retailers)?

Develop the platforms How will you do it? What leverage do you get by integrating across platforms?

Develop and create the programs What is the creative program execution that will get you there?

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SHOPPER MARKETING STRATEGY DEVELOPMENT


EMERGING BRAND ARCHITECTURE CONSUMER SEGMENTATION STUDY RETAILER RELATIONSHIPS
Map the consumers needs and scenarios to the business funnel and select tactics. Identify the business opportunities, set goals and match them to consumer segments to find sweet spot between consumer, brand, and retail partner(s).

Deploy the resulting tactics as a program and measure results.


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PRODUCT EXAMPLE
In market program Phase 1 approach Phase 2 approach Primary shopper flow

AWARENESS
Search advertising

CONSIDERATION
Social media (Facebook + twitter) Brand site Retailer digital integration

PURCHASE

USE
Social media (feedback)

LOYALTY
Brand CRM or loyalty program

AT HOME

Traditional media

a ON-THE-GO

Mobile website Mobile search advertising Retailer/ product finder

Location-based advertising offers

Mobile utilities for in-use scenarios

Mobile couponing In-store comparison and research

tSTORE IN

In-store media

Digital enhancements to packaging (QR, etc)

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PRODUCT EXAMPLE
Phase 1 Phase 2

Brand website redesign to include content program, campaigns, and promotions Create search marketing through analytics-driven search marketing campaign Test-drive mobile search advertising, especially if geotargeting can drive business goals Integrate with retailer digital channels including eCircular Create packaging QR codes (or other in-store marketing) to allow research and comparison.

Continued content programs for website Test traditional media Expand retailer integration (explore website, mobile applications) Based on outcomes from mobile coupon and mobile search, test-drive location-based couponing. Create mobile application for in-use scenarios especially around safety (could include tips, reminders)

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THANK YOU
For more information contact Melissa Dreyer newbiz@iqagency.com 678-449-2028
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