Point of Purchase by VJ Media Works

Cover

Editor’s Note Volume : 7

Evolving without losing sight of the basics W

elcome back to another month of shopper connect insight and understanding. As we put together this issue, a few things strike me. One, is of course the ways in which the shopper is being studied, which is growing manifold. From differentiating between the shopper and the consumer to categorizing the different kinds of shoppers, from understanding psyche to monitoring loyalty, it seems to be never ending. Brands and retail chains across the world are doing more and more, commissioning more and more studies to help them gain insight into that intriguing creature called the shopper.

July 2012

EDITOR & PUBLISHER

Vasant Jante

ASSOCIATE EDITOR

N Jayalakshmi

SR. REPORTER

Fairy Dharawat

CORRESPONDENT (KOLKATA)

Nabamita Chatterjee

ASST. MANAGER PRODUCTION & OPERATION

Vinod Kumar. V

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Who would have thought, for instance, that changing dynamics in the modern Indian family would affect their relationship with their friendly neighbourhood grocer (Mr Damodar Mall’s column on the shopper-in-law)? Or that there may be five kinds of shoppers who need to be accordingly lured or not, depending on their approach to shopping? Or for that matter, the fact that the Six Ws that are traditionally applied to news reporting could well apply to shopper study strategy as well, at least according to Ankur Shiv Bhandari, MD, Kantar Retail Indian sub-continent? These Six Ws by the way are: Who, What, When, Where, Why and How.

Mario Amalraj Metilda Asha

98807 06001 91-80-4052 2709

G V Prabhu

94835 15158

Point-of-Purchase is a monthly published by Vasant Jante at 1019/2, 1st Main, 1st Cross, Geetanjali Layout, New Thippasandara, Bangalore - 560 075 Printed by Suresh Pai at Sri Sudhindra Offset Process, #97-98, D.T. Street, 8th Cross, Malleswaram, Bangalore - 560 003. Point-of-Purchase is owned by Vasant Jante and edited by him. The opinions expressed by authors and contributors to Point-of-Purchase are not necessarily those of the editors or publishers. Point-of-Purchase may not be reproduced in whole or in part without permission of the publisher.

Similarly, as Tara Prabhakar, Development Director, R&S, Asia Pacific, explains in her column, there is more to the way clutter and product placement is managed in store than what we may have believed all along and this has a lot to do with shopper behavior, psychology and conditioning.

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Well, these and more are what our columnists and international sections this month focus on. And this also brings to my mind another question: Fine, everyone talks about shopper connect and consumer convenience. But how much are retail chains really investing in staff training? How much of their focus is really on grooming the store staff in basic communication skills that could well make the shopping experience a more pleasant one for the customer/shopper? Mr B.A Kodandaramam, Chairman and Managing Director, Viveks, shares some of his insights on these issues and more in his interview with Point of Purchase this month. His musings in fact reflect on the need for reiterating some fundamentals in the path of growth.

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EDITORIAL ADVISORY BOARD Alok Agrawal, COO , Cheil India, SW Asia Regional HQ Chetan Sachdev, COO, Tag: Worldwide India D.J. Bangara, Managing Director, Autographics Digital Pvt Ltd Dr. P.K. Sinha, Faculty, IIM Ahmedabad

This, I believe, is important. Because I wonder if, in the constant quest for evolving, we are losing sight of some basics—namely some fundamental values and common sense approach that could well shape our growth and also redefine industry standards. May be we need to chew on this a bit more.

Harish Bijoor, Harish Bijoor Consults Lloyd Mathias Rahul Saigal, Vice President - Retail, OgilvyAction R. Kannan, President, RAMMS

And then we have our usual standard fare of POP Parade and Brand Stand sections that only goes to show that not only are newer segments looking at retail visibility for better positioning, but the way in which brands are doing it is also getting more dynamic. So, as I always say, happy reading!

Vasant Jante

July 2012

Issue : 12

Contents

Volume: 7

Issue: 12

July 2012

POP Parade

Brand Stand Lifebuoy Scotch Brite Jotun

16 18 20

Retail Speak - Interview Viveks

Technology Xerago 28

Column Damodar Mall Ankur Shiv Bhandari Tara Prabhakar Mark Hunter

30 31 32 34

International

Glade 36 Way to Shoppers` Mind, Heart & Wallet! 37 Colloquy 38 Follow the Money 40 Best Practices In Market Mix Modelling 42 Retailer going high-tech to bring shoppers back to stores 47

Awards POPAI OMA Awards-2012

Industry POPAI 54

Resource

July 2012

POP Parade

Mopping up attention! Scotch Brite, a leading brand in the home cleaning segment, along with Planet Dezign, came up with this FSU introducing a range of the brand’s cleaning products. The unit is made of MDF, MS Structure and Sunboard with digital prints, and is supported by various props. Planet Dezign formulated two designs highlighting the product, while outlining their application in the home environment. A double sided floor unit was designed with a mock replica of a kitchen on one side and stacking on the other side. Further, Planet Dezign sketched a dual room scenario for the second design of floor units, which were planned for the Big Bazaar chain of stores. This unit has a bathroom as well as a kitchen with related products in each room arena to indicate their usages. The unit successfully attracted the target customers towards the neat and clean kitchen portrayed (complete with a dummy chimney and a sink), and they were then led to the other side for a thorough understanding of the various tools for kitchen cleaning, available from the house of Scotch Brite n

The ‘Kraft’ of visibility Cadbury Kraft creates yet again a classic eye-catching end cap design for its brand Oreo. The display was conceptualized and fabricated by Sab creations. The unit is made of sunboard and has digital prints. The highly visible end cap has been deployed pan India at 178 outlets n

July 2012

Apsom Ad

POP Parade

Chic presence L’Oreal Paris is perceived as a premium and classy brand and hence the launch of the brand’s lipstick range titled ‘Celebrating India’, was in keeping with the brand’s image. This chic CDU fabricated by DMS uses gold acrylic in the design along with printed sketches of Indian art to lend an ethnic touch. The mirror band on the left gives a depth to the unit and also has utility value by helping the customer try out the colour shades. The colour rich No 1 logo is laser engraved on the mirror. These units have been deployed at major large format stores and general trade stores n

Hot on wheels Hot Wheels, the well-known brand from Mattel Toys, has made its presence at retail by having a car track vertically placed on walls thereby not occupying any space on the floor. Fabricated and conceptualized by DMS, the unit is made of wood with digital branding. The blue coloured unit’s primary objective of being a crowd puller was met successfully. With its simple design, the whole unit is in a modular format and can be transported as flat packed. The unit has been deployed at all large format stores n

July 2012

GV Ad

POP Parade

Visibility tester To create a trendy and young looking tester bar, DMS created a tester bar unit that can accommodate the whole range of MNY products. The unit is made of MS structure and chrome plated with thermoformed trays with a mix of mirror and black acrylic. The Maybelline tester bar is targeted at young women inducing them to try out their latest range. These have been deployed at all general trade and cosmetic stores n

Charging ahead Red Bull, the energy drink brand, seems to have gathered enough attention with this FSU. With a display showing a bike cart wheeling in air along with a rider, the message of Red Bull giving wings to the one drinking it, is aptly conveyed. It is a cardboard cut-out unit with the body made of MDF, and the bike and the rider are made to look as if hanging in the air with the help of an acrylic stand. The logo of Red Bull charging is placed neatly on the side of the MDF unit. Stationed in between aisles, this one is hard to miss. It was spotted at Spencerâ&#x20AC;&#x2122;s in Mumbai n

July 2012

Planet Ad

POP Parade

Purple Presence Ponds has launched a new fairness cream named ‘New Ponds white beauty’, which claims to work on each unique skin to deliver a spotless radiance. The FSU promoting the product at retail manages to match the daintiness that the product itself is associated with and garners enough attention from shoppers. The unit is made up of sunboard with the shelves made of acrylic. It was spotted at Spencer’s in Mumbai n

The calming effect Palmolive’s new range of Thermal Spa claims to give a spa look and feel. Made of sunboard and acrylic, this FSU manages to convey just that, while standing tall and attracting the required attention n

July 2012

POP Parade

Fun with zigzag

Full on Gold

Fun Foods came up with a rather interesting parasite to promote its pizza toppings. The bottles are neatly placed in the cardboard parasite in a zig-zag fashion giving it a funky look and feel. Made completely of cardboard, the parasite looks appealing with its metallic finish. The easy to pick up parasite was found at Spencer’s in Mumbai n

Cadbury’s Five Star has come up with a new and exciting display in gold that has a ‘stretchy’ look. Made up of sunboard for body and plastic for shelves, the golden looking FSU has a ripped Five Star bar with the line ‘FULL ON’ stretching across it conveying a more mouthful and chewy feel to the regular Five Star bar. With a visual of a huge Five Star Bar and a model holding the chocolate bar on the top front, this FSU surely stands out. It was spotted at Spencer’s in Mumbai n

July 2012

POP Parade

Wooing with warmth Nestle has launched its ‘Baby and Me’ product meant for moms-to-be and has positioned it as a product that helps in Immunity, brain development, digestive comfort and healthy growth. Conveying all of this is this eye catching FSU made up of sunboard (body) and metal rod for balance. The picture adorned with a pregnant woman and the pink colour give the FSU a warm and inviting feel and sure manages to draw glances from both men and women alike. This unit was found at Spencer’s, Mumbai n

The flavours of colours Johnson & Johnson launched the New Morning Energy face wash range in three different flavours: Apple, Strawberry and Lemon and this was promoted at retail through this unit. Made up of plastic and MDF, the replica of a large bottle adorning the shelf was created with the body made entirely of MDF. The splash of colours that match the product’s flavours gives the FSU, a fresh and vibrant feel. The FSU has the two giant replicas of the bottle on either side n

July 2012

Brand Stand

Lifebuoy goes all out with a new look Fairy Dharawat

ifebuoy has a loyal consumer base across generations. It is well known in India as one of the most recognizable symbols of health and germ protection. To further drive the universal appeal of Lifebuoy, Hindustan Unilever has launched Lifebuoy Clini-Care 10, a premium variant, which, according to the company, offers 10 times better germ protection than other leading germ protection soaps (in the cosmetic domain). Teaming up with Walnut Advertising, HUL has now launched the Lifebuoy Clini-Care 10 using an interesting concept with a high-tech look and feel. The idea was to go for a new design solution at the Modern Trade that attracts and conveys the key benefits of its new brand variant and gives a clinical edge to the look. Thus, instead of the regular static looking structures, the design is a walk through spectacular. The shape of the unit is inspired from the Lifebuoy logo itself and the design is large enough which makes it noticeable from a distance. The structure was split into two halves on the opposite sides to make entry &exit points. The gap was kept wide enough to take the shopping trolley through. Once inside, the two halves act in giving the feeling of protection, which is the most important aspect of the brand. The two curves are freestanding, and yet sturdy for the foot fall traffic. To give it an advanced & premium clinical look, a mix of transparent & translucent materials was used. The entire Lifebuoy unit had a see-through effect, prompting people to get in. According to Walnut Advertising, “This purposeful blend of materials & form is sure to break the monotony of foam board & boxy structures.” Well, this retail visibility initiative from Lifebuoy seems to reiterate the brand’s position among its loyal customer base as a trusted one offering good protection against germs. And with the new launch, Lifebuoy along with Walnut Advertising seem to have succeeded in capturing the essence of the product, by converting it into an in-store communication concept that says it all n

July 2012

Brand Stand

Scotch Brite: Tapping the cascading effect Scotch-Brite has been pushing the bar on innovation for more than two decades in India now, helping the Indian home-maker with products that are not just extremely functional, but also of superior quality. Applying the same innovative approach that it applies to its products, the brand now makes a visible presence at retail. Point of Purchase captures some of the brand action in the country’s modern trade landscape. N. Jayalakshmi

cotch-Brite as a brand has been helping the Indian home-maker with products that are not just extremely functional but also of superior quality. The company behind it, 3M, has applied its proprietary technology to the entire range of Scotch-Brite products spanning utensil care, floor care, surface care & others. This, coupled with their deep understanding of the Indian homemaker and her needs across the cleaning spectrum, has been the driving factor for the brand being a preferred name for households across the length & breadth of the country. Reflecting the brand’s omnipresence in the Indian household -- from the kitchen to dining to the living room and every other corner of the home – is the brand’s retail presence, ranging from kirana stores to modern trade. Scotch-Brite the brand is indeed making its presence felt across modern trade in a big way. The same streak of innovation that 3M employs to the product offerings is now being employed to deliver clutterbreaking and eye riveting displays in modern trade. These innovative displays and activations are more than just a brand building exercise; it’s a category development initiative in itself, according to the company. Says Sanjit Satapathy – GM, Home Cared Division 3M India, “The first step is accepting the fact that Modern Trade is a high-clutter environment and it’s always an uphill task to get the consumers’ attention when every square foot around you is screaming to hold his attention. From floor stickers, to shelf talkers, to wobblers, standees, FSU, dispensers, packs, promos, offers – the competition is dense and intense. Even if you manage to catch the consumer’s eye, holding it is impossible. In such a scenario how do you make the consumer remember your brand above

July 2012

Brand Stand bar, was used as the lead product for this exercise. A larger than life, clutter breaking display was employed to engage the consumer leading to interactions with the entire Scotch-Brite range. With the aerial space as the canvas and the product integration as the task, the TAP was chosen as the winning concept for the large scale display. The TAP was an extremely appropriate visual key since it facilitated the falling effect that connected the aerial space with the product in a running water like manner, according to the company . The size of the unit was 4ft in length and 2 ft in height and it was made in the brand colours. The container to collect the metaphorical falling water which in this case was the Scotch-Brite products was plastered with brand & product centric messaging along with details about the product.

everyone else even after she has left the store? And that’s when we realized that while the floors and the walls are over utilised, the solution was literally above us – the aerial space towering above the imposing rows of shelves became the centre of our attention and our innovation. This germ of an idea was precisely what a low involvement and hard working category like cleaning tools needed. This combined with a new product launch was the magic ingredient that we gave the agency with the specific task of not just informing the consumer but holding their attention like no other brand is doing in the current space.” To achieve this task, a decision to extend the ATL awareness & familiarity into the retail space was taken. The scrub pad holder, a new revolutionary product that enhances the life of the scrub pad by storing it away from the dishwash

For materials used in the display, the brand looked at options such as inflatable, FRP etc, but there were certain factors that needed to be considered before finalizing on the material. First, it had to be light and withstand the time frame of 20 -25 days. Secondly, post 20 days the unit had to be easy to dispose; and finally, the cost factor. Based on all these factors the team focused on a simple yet efficient material i.e., thermocol. The unit was designed by special thermocol artists and there was a lot of manual intervention and creativity involved in designing the same. Moreover, this material solved all the problem of weight, usability, portability, installation issues and yet delivered the value. This TAP display was fabricated and installed at Big Bazaar, Reliance Mart, Star Bazaar, and Walmart Easy Day. In all, there were more than 50 such displays installed covering the entire geography of the country without restricting it only to metros. For example, cities such as Zirakhpur, Siliguri, and Mangalore were also covered apart from the metro towns. The design, fabrication and installation of the structure was handled by BrandVak Incorporation, a Bangalore based company offering shopper marketing solutions. And the installation in this case was obviously a Herculean task. To begin with, it was

critical to manage logistics and effective implementation at the store given the easy tendency of thermocol to break. Further, the installation of the tap at the correct height was a challenge because every store is different in terms of construction and bin size. Maintaining the center of gravity of the unit was also very important to maintain the perfect balance. Well quite obviously, these challenges were successfully overcome and the efforts have borne fruit. Says Satapathy, talking about the impact of the display, “The display has been highly appreciated by the customers and the retail chains. This strengthens our positioning as a leader in the cleaning tool category who has the knowledge and the expertise to create a differentiation in the category. The quality commitment in our products is also depicted in our execution and modern trade activations, right from promotions and demonstrations to displays and customer engagement. We will always try to bring something different and valuable to the customers which will forever engage, educate and entice the Indian customers.” Well, maybe we should keep watching this space for more… n

Brand Stand

Adding a dash of colour With retail emerging as a hard-to-miss channel for most brands looking to connect with their shoppers, more and more segments are looking at enhancing their retail presence. The latest to join the bandwagon is the paints industry. Point of Purchase shares some details on paint brand Jotun Paints India’s new multi-colour retail concept.

Fairy Dharawat

he Jotun ‘Multicolour outlet’ has been positioned as a one-stop solution to its customers adding ease and convenience in helping them make the right buying decision for their homes. Thus panels that display different textures and colours offered by the group, exhibition of decorative paints and facilities enabling the consumer to choose their desired colour and then receive the desired amount of the same on the spot are some of the features that have been incorporated in the store. Says Percy Jijina, Sales Director - Decorative, Jotun Paints India Pvt Ltd, “This is extremely viable for those who require small amounts of a particular shade.”

July 2012

Brand Stand The Jotun Multicolour Outlet offers: l Housing interior, textured paint products l

exterior

and

Colour consultation desk

l Units to help customers to select colours l Colour Bars - Colour selection chips that helps customers to select the right colour combinations l Panel Display Unit - Helping customers to select texture range of products l Preview facility - Customer can bring their home photograph and have its preview

Percy Jijina Sales Director - Decorative Jotun Paints India Pvt. Ltd. The â&#x20AC;&#x2DC;Multicolour Showroomâ&#x20AC;&#x2122;, as the outlets are called, aims at ensuring better access to cost-efficient quality paint products to the consumer. Besides, Jotun also aims at providing a complete touch and feel experience to the consumer, while simultaneously building brand loyalty. According to Jijina, the following are some of the trends in the market based on which the outlet has been positioned: Colour Therapy: Shoppers today are acknowledging colour therapy as an important influencing factor for their moods and emotions. And the industry is taking note of this trend seriously. Accordingly, outlets are strategized to enhance this factor in triggering the buying decisions of the consumer.

July 2012

Brand Stand Exclusive Outlets: Leveraging on the buyers’ need for the touch and feel factor in this segment, more and more outlets are coming up. Little wonder then that Jotun itself has set up close to 250 exclusive retail outlets across the country. These retail outlets are professionally designed with technical expertise and friendly management to provide guidance. Given the challenges in the competitive market, Jotun has clearly defined its differentiated approach and the advantage the brand offers through its retail outlets. Says Jijina explaining this, “We have entered the market at a time when it is ready to receive us. The market seems eager for a change. In India, paints have traditionally been sold in hardware stores and most paint brands have followed the retail route of multibrand stores. However, with the growth of the Indian paint industry, and the recognition of individual brands, prominent players have recognized the need for exclusive outlets/showrooms. The success of these outlets lies in the fact that the consumer can negate the time taken to choose between brands, and instead focus on product choice without having to worry about quality.” He explains further talking about the value additions that the brand’s outlets offer to customers, “Not only do we engage the customers in the decision making process of painting their homes, but we have also reduced the dependence on the contractor to choose the colours to be used for painting.” Well, the Indian paint industry in the country is reportedly expected to be close to Rs 21,000 crore. Given this, it is safe to predict a 9% to 10% increase in the next five years, according to Jijina. With the decorative industry paint ratio increasing from 70:30 to 50:50, the future of the industry seems to be strong and this is exactly what Jotun is betting on. And, having already set up exclusive retail outlets across the country in a span of 4 years, the company now plans to extend its reach, making it products readily available across the country. “The aim is to provide an opportunity in every corner of the country to help their customers build their dream homes,” says Jijina n

July 2012

Retail Speak - Interview

“Start small, finish big”

retailing in South India but has also helped redefine a certain lifestyle for the typical middle class South Indian family. Yes, Mr Kodandaraman is the Chairman and Managing Director of Vivek Ltd, popularly known as Viveks, a retail brand trusted by over three generations of consumers for the last 47 years. The brand has been listed among the most impactful brands chosen by the Indian consumer and has been hailed as “more trusted than the brands it sells” by CII and Mckinsey. B.A. Kodandaraman Chairman & Managing Director Vivek Ltd

or a man steering one of the biggest and oldest retail chains in South India, B.A Kodandaraman is amazingly simple and remarkably self-deprecatory. But ask him about the entity he has nurtured and groomed and he is at his eloquent best-- sharing, reminiscing, reflecting and in the process sharing some invaluable tips and insights regarding the success recipe for a retail chain. After all, here is a group that has not only pioneered consumer goods

July 2012

Today the retail chain has 47 showrooms across Tamil Nadu and Karnataka, of which 14 are in Chennai alone, 9 in Bangalore and 24 spread across the length and breadth of Tamil Nadu with a presence in all the major towns and cities in the state. The retail brand, which during the financial year ended March 2012 made a turnover of Rs 230 crore and plans to rake in a turnover of Rs 580 crore in the current year, is now setting its sights on other untapped markets in the country, hoping to build a pan-India presence. Vivek’s story is a classic example of how success can be built on the

pillars of values and simple common sense approach, which not only builds business but also generates good will. In a candid and freewheeling chat with Point of Purchase, Mr Kodandaraman, who is also a foundermember of the Retailers Association of India (RAI) and who has pioneered concept such as the New Year Super sale, talks about his whole journey and what it takes to be a trail blazer. Presenting excerpts from the conversation, read on … As told to N. Jayalakshmi The beginnings and the journey We are a family from Kolar in Karnataka and Viveks was actually started by my brother in 1965. As a student he was very much influenced by the teachings of Swami Vivekananda and he wanted to something meaningful. It was this same vision to do something meaningful that saw him get into business and set up Viveks in spite of initial opposition from the family.

Retail Speak - Interview The first showroom was set up in Mylapore in Chennai on May 3rd 1965 with a store area of 250 sq feet. After about three years in 1968 my brother passed away and the family wanted to continue what he started, so the mantle fell on me and my other brother. We decided to build it with the same vision and today we have come a long way. Initial Challenges Yes, those very tough and challenging times. First, I had to run on a small capital given by my father. The monthly rent those days was Rs 225 and we had to negotiate a lot for that. The store warehouse was also our living quarters in the night. So given all these challenges I have developed this motto over a period of time: Start small and finish big. The times then and now… Those days, the buyers did not have any choice, it was a very closed economy and it was a seller’s market. Even production was regulated and limited by the government. We had opportunities to travel abroad and over there we saw how shopping could be made into an experience. It was frustrating when we came back and saw that one had to wait for everything here – whether it was a gas stove, a phone or a car. Cashing in on changes, surging ahead Finally in ‘92-93 the country started talking about liberalization led by the then PM Narasimha Rao and the then FM Manmohan Singh. They invited other markets to come to India and tap the huge aspirational middle class population. So we decided to expand too as we wanted to improve the lifestyle of the common man. We had managed to open three showrooms in 30 years’ time but our target now was to open 30 showrooms in the next 3 years. So we stepped forward with a vision, a business plan and a blueprint. Getting corporatized and professional We realized that to grow we could not continue as a proprietary or a partnership firm. So in ‘95 we took a

decision to become a limited company. We changed our auditor and brought in Deloitte, we roped in O&M as our ad agency, and instead of a single banker, we brought in a consortium of multiple bankers . Besides, my other brother and I decided to move out of showrooms and into the corporate office. We identified people who could run the show, made them responsible and then we went in for expansion. Constant vision and mission What has not changed from Day 1 is the founder’s objective which was to provide employment and improve the quality of life of the common man. We are doing both. Today 1,500 people work for the organization and our products are a part and parcel of the lives of our customers 24 hours of the day. Change is inevitable and we moved along with the customer. I always say this: Experience + Knowledge + information = power= money. Anybody who excels in this is a very powerful person.

towns in TN and today we have 47 showrooms. We have realized that retail is one area where you cannot spread thin, you have to spread thick. Market share is very important; it also helps you control operational costs. Backend is also very critical: IT, training, manpower, warehouse, accounts, travel, go-downs etc have to be very strong.

Change is inevitable and we moved along with the customer. I always say this: Experience + Knowledge + information = power= money. Anybody who excels in this is a very powerful person. Competition and defining USP

Our Learnings

There is always competition, so why should customers come to you? The answer is simple: trust and service.

Between ‘95 and 2012 in 17 years, we went beyond Chennai and established our presence across 16 cities and

A few years ago we were the largest retailer, but today we are one of the largest retailers; there are many

July 2012

Retail Speak - Interview three showrooms, we decided to put in our sincere efforts into technology. Today with the help of a software we can track the movement in our showrooms across 16 cities and two states and know what is happening every day. The right action at the right time is very important in retail. It is a highly competitive market where there is no scope for any inefficiency. So we need to gear up with the right technology. The New Year sale concept we pioneered

others. Somebody calculated in 2005 that the retail consumption put together in the country is $ 320 billion, today it is $ 450 billion. So obviously, many big corporates came into retail. We cannot compete with them, we have to allow them to grow because wherever there is consumption, there is production and wherever there is production there is employment. Retail industry is in fact one of the largest employers in the country. Organized retail also brings lot of revenues to the government. Many of these big groups have money power and muscle power. But my biggest strength is my five decades of brand equity – three generations of customer buying and a strong presence in TN with a good market share and service. Parameters For Merchandising Our merchandising depends on the location and city. For example, what I do at Jay Nagar in Bangalore will not work in say, a town like, Theni. It depends on the culture, the buying capacity, etc of the place. We study the market, the size, the trend, the profile etc and plan the merchandising accordingly. Need for Staff Training Yes, large retailers have to put in lot of effort into staff training. As part of RAI too, we are concentrating on training and have introduced newer curriculum also. There is a

July 2012

shortage of manpower, attrition rate is high, proper and training is often not available. Today everything can be imported, but we cannot import manpower. Training and development in retail industry is very important. Technology upgradation When we wanted to grow beyond

Somebody calculated in 2005 that the retail consumption put together in the country is $ 320 billion, today it is $ 450 billion. So obviously, many big corporates came into retail. We cannot compete with them, we have to allow them to grow because wherever there is consumption, there is production and wherever there is production there is employment. Retail industry is in fact one of the largest employers in the country.

We have built this business with a lot of customer goodwill. In 1977, we realized we had to do something for our customers who had helped us build our brand. And we hit on the idea of the sale – wherein we would work one day without profits and we decided that the day would be the year beginning. That’s how it began. As I always tell people, “anything you do in the interest of the customer, will survive and last long”. So what started in 1977 still generates enough buzz. Our New year Sale has become a part of the people’s tradition and for the last 35 year we have been successfully doing it, handling anything around 70,000-75,000 customers a day. We used to hire a 40,000-50,000 sq feet central ware house space for it, and in Chennai alone during those three days of sale we sell about 10,000 refrigerators and washing machines. So we learnt to manage the logistics of something of such a large scale. We are very happy and proud that we did it because it benefited the customers over a period of time. Volumes also grew, margins grew, ours and the manufacturers’. So everyone benefits. Future plans Our immediate target is to become a national chain and like a conservative South Indian we are taking it slow, the next three years are going to be very crucial for us. We plan to enter the unrepresented market and become a South Indian retail chain as 30% of the market in the country is available in the South and it is a very important market for us n

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Technology

Bridging the digital marketing gaps A new tool from Xerago, a leading name in the digital marketing services industry, may just be the answer to many needs faced by brand marketers today in the area of digital marketing. Point Of Purchase brings you more dope on this. Fairy Dharawat

programs

3. Plug-n-play plumbing solutions that solve the Big Data aggregation

s the world shrinks, the inevitable takes centre stage. Enter digital marketing, a force to reckon with for most brands today. Indeed, with around 70% of world population consuming online content daily, the clutter of online information makes the customer and the marketer cringe at the mere thought of digital marketing. Right from solving problems of segmentation to handling channels to guiding the life cycle, and handling the functional marketing problems of the brand, there are many aspects to be looked into. Companies, brand and marketers are therefore on a constant look out for a comprehensive and analytical tool. Stepping in here to address these issues in the realm of digital marketing is Xerago an industry leader with its suite of tools which, according to the company’s Co founder and CMO, Srinivas Chari, basically uses analytics, creative and a robust process to execute marketing interventions and problem solving programmes for brands. Says Chari speaking on the need for digital marketing, specifically a comprehensive and relevant tool, “Today customers own the on and off switch to all media/mediums, are more knowledgeable/empowered about various products and services they are being marketed to and have huge clutter to deal with. Thus marketers are actively seeking, investing and mastering newer methods and tools that go beyond making their brands merely visible to ones that allow better consumer understanding, precise targeting, customized offering and above all that which engage and let them have a two-way conversation with their customers.”

4. Multivariate optimization across inbound and outreach campaigns Besides, Xerago also provides marketing returns, what it calls ‘Customer Value Maximisation’. This includes development of a process that automates large web portal management (applied for patenting) among others. Besides, the company has also built a number of tools that range from campaign management platforms to workflow and project tracking products. They include a multivariate optimisation tool, Ad serving tool, web tracker and an ad landing page optimizer, to name a few. Well for brands, the benefits of implementing digital marketing programmes with such tools are many fold:

1. Start with Data, and analyze it to derive insights 2. Build on insights using marketing consulting expertise 3.

Map clients’ target audience scientifically by personal development and mapping consumption habits

4. Evolve a strategy and tacit plan with specific value proposition for each stakeholder segment 5. Test the strategy over the control group and calibrate based on learning 6. Share the strategy with client

- Scaling based on test-and target audience response

Says Chari speaking about the company’s client relationships and ROI, “Our relationships with clients are always long-term partnerships where we Assess, Measure, Manage and Optimize their marketing programs. Our revenue model is based on the results that we produce with our marketing interventions. And we engage with clients on the basis of Annual Contracts.”

But then each brand has its own needs given its segment of operation and given

Xerago’s working methodology may be illustrated thus:-

- Ease of tracking and monitoring results and response - Comprehending and understanding audience wants

And it is exactly with this on view that Xerago offers its niche products suite, the X-Alt, that drives integrated RoI-led marketing with the following features:1 Media Attribution and Comprehensive Customer Acquisition RoI 2. Real time dashboards for marketing

July 2012

this, the Xergao tools are customized with specific strategies:

Technology Xerago shared two case studies to demonstrate the use of their tools: a) HDFC Bank – This sophisticated user of campaign management, wanted to identify customer segments based on Demographics, Customer Life Stage in the Bank, and Propensity for Balance build-up and also wanted to identify potential “Good Banking” customers for differentiated treatment, regardless of current balance. Xerago thus created a Customer Life Stage Management model - a systematic approach to identifying stages of customer relationship, adding clarity to customer contact and engagement. b) Event Based Marketing: Xerago Assessment revealed opportunity for Event Based Marketing wherein it deployed 200 triggers and managed the delivery of customer interventions that resulted in huge cross-sell. The response rates improved drastically and the ROI was achieved in 30 days. Well, given the scope for digital marketing, one would obviously see new trends in terms of client needs and demands and according to Chari, these are: 1. Trust in Advertising 2. Geo-location over context 3. Big data roll-ups bridging the digital divide between offline and online 4. Optimization 5. Effectiveness of Social media Advertising 6. Increase in mobile eye-balls 7. Latency in ecommerce showing signs of reversal Further, digital marketing has ushered in the following virtues to traditional marketing initiatives:-

nurturing and retaining a talented team that would help us in scaling up was a key challenge. Thus we had to heavily invest in creating process IP to building a mature delivery model, to overcome this challenge.” The other challenge, according to him, was of course concept selling. “Driving the concept of accountable or ROI based marketing was truly a big challenge as marketers were used to a conventional ‘spray and pray’ kind of traditional advertising led marketing models. It was hard to convince marketers to switch from traditional thinking about media choices and marketing.” And then there was the challenge of “Bootstrapped growth”, as he puts it because of which the company was forced to operate largely in India and Asia. But these challenges notwithstanding, Xerago today has a client portfolio of reputed brands such as Citibank, Microsoft, HP, Vedanta Group, HDFC, ICICI and Hindustan Lever among others and today Xerago figures in the list for almost any global RFP floated by Fortune 1000 and large organisations. Growth estimates in digital marketing industry is what obviously makes Xergao bet on its tools and solutions. For example, according to Chari, the digital marketing market size in India is estimated to touch close to Rs 2000 crore in the next two years, from Rs 600 crore. Says Chari further, “For the progressive marketer, the real challenge only begins from here. Over the next decade, traditional media will undergo upheaval in terms of re-configuring budgets in favour of Social and Search. And other trends where Mobile will be the device of choice to consume content.” The whole space is obviously set for exciting times ahead! n

- Accountability / RoI - Personalization - Context Well, in spite of all these, challenges in this space are inevitable. To begin with, as Chari says, is the challenge of building a talent pool. “We started with a core crack team but identifying,

July 2012

Column

Shopkeeper-in-law : Are his days numbered? The debate over traditional kirana versus modern supermarket format misses some core issues, the central one being social changes and the modern shopper’s need for anonymity. Damodar Mall, Director - Food Strategy, Future Group, delves into this. a retired secretary recalling, as a young bride, asking the butcher for a small amount of “premium” mince meat. “Oh, having a dinner party, madam?” sneered the shopkeeper. This wasn’t uncommon. A woman buying anything expensive or unusual risked gossip spread by the shop assistant.

Damodar Mall Director - Food Strategy Future Group

ne of the most interesting aspects of modern retail is its potential for social transformation. In the normal buzz about supermarkets in India, where the focus is usually on either their frequent sales or their impact on the friendly neighbourhood kirana stores, this role of modern retail is lost or blurred. We don’t think about how a different shopping habit can actually change the personality of the customer, and therefore, society at large, whereas we should. In point of fact, this angle will have a more far reaching effect on the desire for modern retail than any perceived bargains. Yes, customers welcome bargains and the feeling of having triumphed over the shopkeeper. But what they value even more in an urban context is anonymity. Her preferences, her shopping habits, what she buys and how she buys it, all this is information that the customer would much prefer not telling anyone else about, especially her local grocer. She doesn’t wish to be assessed, merely served. And yet, across most neighbourhoods in India, that’s exactly what she is subjected to. A large research project by the Universities of Surrey and Exeter in the UK studying shopping in post-war (1950-70) England, in the sunrise days of modern retail there, discovered that supermarkets were welcomed more by younger and middleclass women. “It was upper class matrons, the sort who dressed up to go shopping, who missed the personal attention shown by traditional grocers”. The project quotes

July 2012

So how does grocery shopping in India look from the perspective of young and middle class women? A significant clue lies in the manner in which the young bahu addresses the grocer. It is with the same respect that she would use with a senior member of the family. ‘Panditji, Guptaji, Anna, Gauru or Bhaisaheb’, are the norm! After all, the family grocer is friendly with the father-in-law and the mother-in-law. He is one of them, older, more knowledgeable, more moneyed and safely sitting behind the counter, while the ‘bahu’ customer is outside, often on the street. Most of the time, the fan is directed on him, and the customer has to sweat it out at the counter. She might be giving him her custom but he is the one patronising her. It is a position of disempowerment for the customer, especially the young, recently married woman who is still feeling her way about. Now imagine if she asks Panditji for an expensive conditioner that her family has never used, or even worse, for Whisper Ultra Heavy Flow! It’s not going to happen. She is supposed to be the customer, the queen, but she is in an awkward social position and in her eyes, and possibly in his as well, he is the powerful “Shopkeeper-inLaw”. As a result, in most cities and even middle class localities in metros, women don’t buy their personal products from the neighbourhood grocery shops. They buy them when they go out of town or to other neighbourhoods. This is the only way they can retain their anonymity. It is not too farfetched to suggest that the neighbourhood grocer, for whom confidentiality is an alien value, would be only too happy to discuss a young woman’s purchases, especially if they involve something new, with the rest of her family. And she knows that, and is uncomfortable with that. In India, women have to buy all they need, all their life, from men, often men with a tendency and licence to intrude, comment, assess and advise. The new

supermarkets zapp these men away from between the woman shopper and her choices. Let’s see how. A woman feels like trying out Dove soap, instead of her family’s normal Lux or Hamam. She picks up a bar of Dove, smells it, sees the price, is shocked at the premium and simply puts it back and chooses another soap. This process of discovering new products and their acceptance or rejection happens comfortably, without any social embarrassment or sneering by shop assistants. It is even more apparent when she is looking for personal hygiene products, items that are freely advertised on TV but then recede to the inner shelves of a grocery store, only to emerge if the customer asks for them, an uncomfortable and eyebrow raising moment. The woman’s comfort with her own sense of aspiration, and discomfort with someone else’s possible disapproval, propels her to the self-service format. That’s why young and middle class women are increasingly voting with their wallets in favour of supermarkets. The friendly, trusted family grocer is trusted only for the elders in the family. He doesn’t share the same camaraderie with the younger recruits. In fact, he suffers an emphatic setback every time a new daughter-in-law is added to this customer’s household. This compelling angle of female empowerment is often missing in the supermarket vs kirana debate. In my view, the real trouble for the ‘counter service’ stores is going to be at the hands of young women, more than anything else. No wonder the Surrey and Exeter study discovered press advertisements from the early days promoting not just the convenience of supermarkets but also their anonymity! With growing household incomes, more awareness, widening aspirations, we are perpetually trying and buying new products, different from what we bought last month. This sense of freedom is hampered if there’s someone looking over our shoulder, constantly assessing our purchases, and through those, our social aspirations. We certainly don’t wish to be asked if we are having a party at home! n Originally published as a blog by Forbes India www. forbesindia.com

Column

The consumer versus the shopper The shopper is the most intriguing factor for brand marketers. She presents challenges that get increasingly complex especially in a country like India with its diverse cultural dynamics. Ankur Shiv Bhandari, MD, Kantar Retail Indian sub-continent, demystifies this phenomenon and presents some insights on overcoming the challenges posed by the Indian shopper.

Ankur Shiv Bhandari Managing Director Kantar Retail Indian Sub-Continent

et me start this article by asking a simple question. What distinction do you make between a Consumer and a Shopper? Or do you? Although related, these are 2 separate entities and need to be handled as such. We define marketing to both as following: “Consumer Marketing focuses on the consumer to build awareness and create consideration to use by creating an affinity with the brand”. “Shopper Marketing integrates consumer, shopper and retailer insights, to engage the Shopper at the point of purchase decision, and win their purchase”. The clue to understanding the challenges with the Indian shopper and overcoming them lies in the shopper marketing definition above. A potential process to understand and integrate consumer and shopper insights can be by understanding the 5 Ws as below: Understanding of these 5 w’s helps with planning of how to influence shoppers along the shopper journey to convert consideration of purchase to actual purchase. A lot of the organisations falter at this junction of being able to

convert consideration of a shopper into actual purchase. We need to understand & influence consumers and shoppers at each step of the shopper journey Detailed understanding of the shopper journey also helps with understanding triggers and barriers to purchase for a shopper. An organisation can then use this understanding to put plans in place to leverage triggers and remove barriers to result in a transaction. Another key challenge to note here is the availability of data whether primary or secondary to understand the 5Ws mentioned above. As the Indian market matures and the

data availability increases there will be a bigger opportunity to really get into the detail of shopper behaviour and help with conversion. This information can help organisations to: 1. ATTRACT shoppers in and out of store 2. INTERACT with shoppers as they navigate the store 3. Get shoppers to ACT and purchase at the fixture n Ankur can be contacted at Ankur.bhandari@ kantarretail.com

July 2012

Column

Shopper psychology: The sixth sense of retail Visual Clutter can greatly interfere with a shopping experience. Tara Prabhakar Development Director, R&S, Asia Pacific, shares her views on how clutter impacts the shopper and how product placements can be done at retail in the most effective and least confusing manner. so I missed buying the category on sale (Amul ice-cream), the category is stocked in multiple places so I bought a secondchoice brand (branded chips), the expiry dates of the pieces in the front were too short so I didn’t buy the category (pack of 10 Yakult), the shampoo and conditioners were mixed up on the shelf so I ended up buying the conditioner instead of the shampoo (L’Oreal) and so on... So, as a shopper the onus is on me to navigate this clutter so that I don’t miss out or make a poor choice.

Tara Prabhakar, Development Director, TNS Retail & Shopper APAC

Managing clutter impacts a shopper’s time, budget and wellbeing and ultimately, the desire to patronize a particular retail brand.

n my recent conversations with marketers and shoppers one issue dominates – clutter at the store. The benefit of clutter-breakthrough to marketers is clear enough but interestingly shoppers (across income segments) too want to manage clutter on their shopping trip so as to shop efficiently and effectively. An analysis of what motivates shoppers to seek clutter management reveals that

So what does clutter mean? It’s important to distinguish between good and bad clutter (yes, there’s “good” clutter). A simple way to explain the difference is via a situation that many of us have faced as parent or child – a determined mom trying to “clean up” her teenage child’s room only to be told that the “pre-cleaned” version was perfect because it “says who I am” or because “I knew where to find what exactly”. Good clutter is not about sanitized or organized shop floors. Good clutter allows us to be who we are and thrive on past experience and instincts whereas bad clutter confuses our instincts and does not allow us to relax.

Clutter is debilitating and plays a significant role in making you feel tired at the end of a shopping trip. The tiredness from navigating clutter (shoppers complain of tired eyes and headaches) is different from the tiredness of a long shopping trip (shoppers complain of body / joint aches). This is because navigating clutter is a visual activity requiring concentration and use of mental faculties. Some scientists have even compared it to doing a Sudoku but unlike a Sudoku it does not offer the same sense of achievement. Why?

l Because navigating clutter is usually done via a process of ‘de-selection’ and the brain is not programmed to experience achievement for avoiding bad choices; achievement comes from making the right / great / ideal choices. So while navigating clutter, shoppers are investing a great deal of visual attention and mental processing to go: ‘not this, not that, not here, not there’. You can see how that could be tiring!

Clutter can impact judgment by presenting partial choices. Here are a few live examples from my conversations – a great deal is hidden behind a pillar l

July 2012

In the retail context this means organizing layout, aisles, shelves, FSUs and cash wraps in accordance with shopper instincts (or heuristics) rather than marketing agendas. What do I mean by marketing agendas versus shopper instincts? Because we think shampoos and conditioners are combinational products let us not make them look uncannily similar to each other and then put them next to each other with no separating signage at the shelf. Sales figures tell us that conditioners are still niche which means that fewer shoppers buy conditioners and the purchase frequency of conditioners is lower than that of shampoos. So this kind of stocking is designed to confuse more shoppers (than provide convenience). Because we want to effect a quick turnover of products approaching expiry let’s not 32

place the fresh products at the absolute back of the shelves. For perishable categories that they are still getting to know (and those that are not necessities), shoppers don’t spend too much time perusing what’s available on the shelf; a cursory stock-taking of the front rows is enough to engage or abandon. They may make the effort to look thoroughly for a regular purchase like packaged yoghurt but not for tofu or probiotic supplements. Because we think that gourmet foods need shopper education let’s not plaster the aisles with demo staff or sales associates eager to explain why a specific type of cheese is a great buy. It only crowds the shopper and makes them feel scrutinized and loathe to explore a category unless they are keen on buying.

A simple way to create good clutter is to give it purpose – for example, one of the Landmark stores dumped an assortment of “niche” movies in one large bin (with a signboard saying “odd picks”) in the middle of a few aisles. I see this as leaving the choice of engaging or abandoning to the shopper (as opposed to cluttering up existing aisles and forcing shoppers to navigate through irrelevant products to get to their favourites). Some see it as cluttering the pathway with a bin that shoppers will have to walk around. All my conversations with shoppers tell me that the physical effort involved in walking around the bin is lower than the convenience of not having to engage with products they are not interested in, in the regular aisles or the joy of possibly discovering something new via rummaging through a finite set of new products in one place. Marketing agenda would dictate an alphabetical arrangement of these odd picks. This would either result in the odd pick getting lost or adding to the clutter when someone is shopping for the popular picks. By putting it all in one bin they’ve worked with shopper instinct. Now the clutter has a purpose – the shopper knows what to expect in a collection titled “odd picks” and only engages with the bin if they want to. Furthermore, in a smaller set of similarly “odd” movies, these odd picks stand a better chance of being picked. If we use the filter of good and bad clutter who knows? We may achieve the happy situation of fewer shopper headaches and more liberated shopping. That could be profitable, couldn’t it? n

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Column

The Five Types of Shoppers In this column, Mark Hunter or “The Sales Hunter” shares his insight on the different kinds of customers. Read on… l Loyal Customers: They represent no more than 20% of the customer base but make up more than 50% of the sales. l Discount Customers: They shop the store frequently but make their decisions based on the size of the markdowns. l Impulse Customers: They do not have buying jewelry at the top of their “To Do” list but come into the store on a whim. They will purchase what seems good at the time.

Mark Hunter The Sales Hunter

n the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers. At one time or another, we have all become obsessed with making sure our advertising, displays, and pricing all “scream out” to attract them.

This focus on pursuing new customers is certainly prudent and necessary, but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the 20% of our clients who currently are our best customers. Going after new customers rather than putting more focus on our best ones has become a real issue for a number of different groups. For example, golf, a sport played by millions, has benefited dramatically from the popularity of certain golfers. However, the popularity that has helped create the rise in the number of new players has not changed the golf industry overall. Many are now saying that there needs to be an industry push to encourage the frequent golfer to play even more in order to grow profitably. Likewise, let’s look at the jewelry industry as a retail example. In the jewelry industry, this idea of focusing on the best current customers should be seen as an on-going opportunity. To better understand the rationale behind this theory and to face the challenge, we need to break down shoppers into five main types:

July 2012

l Need-Based Customers: They have a specific intention to buy a particular type of jewelry. l Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community.

If we are serious about growing business, we need to focus our effort on the Loyal and Need-Based customer groups and merchandise the store to leverage the Impulse shoppers. The other types of customers represent a segment of the business, but they can also cause us to misdirect resources if we put too much emphasis on them. Let me further explain the five types of customers and elaborate on what to do with them. Loyal Customers: Naturally, we need to be communicating with these customers on a regular basis by telephone, mail, email, etc. These people are the ones who can and should influence our buying and merchandising decisions. Nothing will make a Loyal customer feel better than soliciting their input and showing them how much you value it. In my mind, you can never do enough for them. Many times, the more you do for them, the more they will recommend you to others. Discount Customers: This category helps ensure your inventory is turning over and, as a result, these people are a key contributor to your cash flow. This same group, however, can often wind up costing you money because they are more inclined to return product. In

addition, Discount shoppers can many times be very vocal about pricing, selection, etc. while in the store. If overheard by other customers, it can result in lost sales. One way to control this is by ensuring your markdown area is located in a section of the store where conversations are less likely to be eavesdropped upon. Impulse Customers: Clearly, this is the segment of clientele that we all like to serve. There is nothing more exciting than assisting an Impulse shopper and having them respond favourably to our recommendations. We want to target displays toward this group because they will provide a significant amount of customer insight and knowledge.

If we are serious about growing business, we need to focus our effort on the Loyal and NeedBased customer groups and merchandise the store to leverage the Impulse shoppers. The other types of customers represent a segment of the business, but they can also cause us to misdirect resources if we put too much emphasis on them. Need-Based Customers: People in this category are driven by a specific need. When they enter the store, they will look to see if they can have that need filled quickly. If not, they will leave right away. They buy for a variety of reasons such as a specific occasion or an absolute price point. As difficult as it can be to satisfy these people, they can also become Loyal customers if they are well taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, they can often represent your greatest source of long-term growth.

Column It is important to remember that NeedBased customers can easily be lost to Internet sales. To overcome this threat, positive personal interaction is required, usually from one of your top salespeople. If they are treated to a level of service not available from the web, there is a very strong chance of making them Loyal customers. For this reason, Need-Based customers offer the greatest long-term potential, surpassing even the Impulse segment. Wandering Customers: For many stores, this is the largest segment in terms of traffic, while, at the same time, they make up the smallest percentage of sales. There is not a whole lot you can do about this group because the number of Wanderers you have is driven more by your store location than anything else. Keep in mind, however, that although they may not represent a large percentage of your immediate sales, they are a real voice for you in the community.

Many Wanderers shop merely for the interaction and experience it provides them. Shopping is no different to them than it is for another person to go to the gym on a regular basis. Since they are merely looking for interaction, they are also very likely to communicate to others the experience they had in the store. Therefore, although Wandering customers cannot be ignored, the time spent with them needs to be minimized. Retail is an art, backed up by science. The science is the information we have from financials to research data (the “backroom stuff”). The art is in how we operate on the floor: our merchandising, our people, and, ultimately, our customers.

drive their decision-making process. Using this understanding to help turn Discount, Impulse, Need-Based, and even Wandering customers into Loyal ones will help grow your business. At the same time, ensuring that your Loyal customers have a positive experience each time they enter the store will only serve to increase your bottom-line profits n

(Mark Hunter, The Sales Hunter, is author of “High-Profit Selling: Win the Sale Without Compromising on Price.” He is a consultative selling expert committed to helping individuals and companies identify better prospects and close more profitable sales. To get a free weekly sales tip, visit www.TheSalesHunter.com).

For all of us, the competitive pressure has never been greater and it is only going to become more difficult. To be successful, it will require patience and understanding in knowing your customers and the behavior patterns that

July 2012

International

Glade Expressions’s New Fragrance Pallet Display

lade(R) celebrates the recent addition to its popular awardwinning home fragrances with the new Glade(R) Expressions Collection. Designed to appeal to today’s modern women, the collection features two great fragrance product designs - an oil diffuser and fragrance mist - available in Pineapple & Mangosteen, Fuji Apple & Cardamom Spice, Cotton & Italian Mandarin and Lavender & Juniper Berry scents. Glade(R) is leveraging the innovative and contemporary product designs from their collection with this eye-catching pallet display. Offering shoppers the opportunity to touch and feel, the products were placed in two niches on both sides of the pallet for consumers to view. Further enhancements to the “home-decor” theme are supported by the curved graphic panels surrounding the product which add a warm, “welcome home” appeal. Color-coded fragrance icons adorn both

July 2012

sides of the display where product is merchandised to help shoppers identify the new fragrances. Glade(R) is so confident with their new scents that they are offering a “fragrance satisfaction guarantee or you money back”, which is

printed on all of the shelf lips as well as on the tearpads n

Source : www.popon.net

International

Way to Shoppers` Mind, Heart & Wallet! Understanding and drawing in the customers is the quest of each and every brand and retailer. Here are some ideas and suggestions extracted from international practices, studies and initiatives to understand the elusive ‘shopper’ better and maximise on his/ her loyalty

H o w To U s e S h o p p e r Marketing To Target LowIncome Customers 5.1 billion people, or 78% of the world’s population, are low-income consumers¹. They live from less than $10,000 a year. Nevertheless, these shoppers become increasingly interesting to FMCG and retailers. But how can companies effectively market to them? And what does this imply for shopper marketing? In Russia, low-income shoppers spend $104 billion annually (30% of personal spending)¹. Moreover, they are brand conscious as they need reliable quality at a fair price. According to AT Kearney, 70% prefer multinational brands over domestic brands¹. However, due to globalization more and more individuals move up the income pyramid. Fostering early on brand loyalty among low-income shoppers allows companies to upgrade them to more expensive products at a later stage. Yet, companies cannot just replicate shopper marketing campaigns designed for affluent shoppers to attract low-income customers. Low-income shoppers usually frequent small stores. They comprise 50% of the world’s mom-and-pops customers². Their families are larger in number and they tend to tend to maintain classical role models (i.e. mothers do the groceries). Also, they usually are more religious and superstitious than affluent shoppers. Consequently, companies must first understand the specific low-income shopper they want to target and generate insights. For example, Danone in China enriches its biscuits with calcium and iron acknowledging that half of Chinese population lacks calcium. In India, Citibank installed ATM machines with fingerprint authentication and voice recognition to allow illiterate customers to access their bank account without interference of an employee.

Once a company understands the demographics and lifestyle of its targeted shoppers, they have to develop a consistent strategy for shopper marketing along the entire path to purchase.

AT HOME TV, Internet and especially word-of-mouth are important to low-income shoppers. Social relationships and family ties tend to be stronger than for affluent customers. Companies who incorporate shoppers and convert them into brand advocates can create a strong and powerful social network. Nestlé Brazil for example, relies on direct sales for its yoghurt and biscuit products. Although customers are given a two-week credit to pay for the product, default rates are low due to peer pressure. Meanwhile, “(i)n Russia and Central Asia, door-to-door selling accounts for nearly 19 percent of the beauty market”.

ON-THE-GO The type of media to use to target lowincome shoppers depends primarily on where your customers are living. In rural areas, village markets and openair festivals provide companies with an effective means to target larger audience. Colgate-Palmolive for example, sends a video van to rural areas of India. The program includes local movies as well as commercials for the company’s personal care products. Unileverin turn, uses magicians and dancers to promote their products in rural areas. In major cities, traditional on-the-go media is best suited. Billboards and street furniture are only a few of the vehicles marketers can use to communicate their brand to shoppers. Although the message and key visuals might be different from campaigns directed at affluent shoppers, the vehicles are the same.

IN-STORE Although price is a key criterion for lowincome shopper, they also tend to be more brand conscious as they are dependent on reliable quality. They just cannot afford to experiment and to spend their savings on impulse purchases.

With respect to packaging, smaller packages might be more appropriate for two reasons. First, the unit price declines and hence allows more low-income shoppers to access the product. Second, small mom-and-pops or village stores often do not have sufficient space to stock larger packages. However, companies also have to ensure an appealing communication in-store. Procter & Gamble Mexico for example developed the “Golden store” program. “Golden stores” are smaller mom-and-pops that carry some 40 or more P&G products and display them together on the shelf instead of next to competitor’s brands. P&G’s sales force in turn offers more frequent stores visits and dedicates more resources on decorating displays.

CONCLUSION As for any other shopper marketing campaign, marketing to low-income shoppers must be insight-driven. Understanding the targeted demographic group and their lifestyle is vital for any campaign. Yet, shopper marketing is not everything. Developing suitable and attractive products adapted to the needs of low-income customers is the very first step. To benchmark, companies should have a close look at how local companies do business and evaluate the possibility of collaboration. For example, Unilever India introduced a low price detergent using a simplified formula which is manufactured by a local company. The results are impressive: “with only one strong competitor, Wheel quickly won 38 percent of the powder-detergent market in India, thereby matching the competitor’s market share”. Shopper marketing is not a costly tool for targeting only affluent buyers. Instead, it is insight-driven marketing along the entire path to purchase to any group of customers. Moreover, low-income consumers represent a little penetrated segment and hence, provide a huge business opportunity for any company that understands their very needs n Source: http://issuu.com

July 2012

International

A New Consumer Mindset Unfolds in Developed and Emerging Markets The world has seen some amazing strategies implemented in the area of shopper marketing based on consumer and market study. Here’s a look at some such findings, reports and emerging trends.

inety percent of Chinese consumers trust foreign brands over domestic, and shoppers in Brazil, India and China say they are significantly more likely than Americans and Canadians to use a credit card for something they can’t afford. The results of a one-of-a kind global study on shopping behavior and consumer loyalty also found Brazilians are far more concerned than Americans and Canadians about protecting personal information, while Chinese consumers are far less concerned than their North American counterparts. These insights are among many contained in the “2011 COLLOQUY Cross-Cultural Loyalty Study,” which spans six global economies. Sponsored by Epsilon and LoyaltyOne, this study provides a timely and comprehensive window into current consumer attitudes toward loyalty amidst continued global economic turmoil. COLLOQUY, a LoyaltyOne company, is a leading provider of loyalty marketing publishing, research and education. Epsilon is a global marketing and analytics leader focused on helping brands deepen their relationships with customers.

The full research findings will be released by COLLOQUY in a three-part white paper series. The first, entitled. It provides a worldwide overview, pointing to leading economic indicators and important behavioural nuances by market. The effectiveness and relevance of brand communications and marketing is analyzed across distinct consumer segments. The U.S., Canada and Australia data spans the general population and includes additional analysis in the affluent, young adult and senior sectors of the United States and in Canada. The emerging market data (India, China and Brazil) includes attitudes and perceptions from consumers across three different socioeconomic classes. Three T’s—Tired, Turned Off, and Tuned Out—are used to characterize consumers in developed markets, where there is strong evidence of a new set of much higher expectations for innovation and reinvention among loyalty programs.

Signs of significant growth potential for North American businesses aiming to enter rapidly developing economies were found along with the critical importance of businesses “localizing” their consumer marketing approaches in these markets. The study revealed stark contrasts in optimism between three developed nations—the U.S., Canada and Australia—and three emerging markets—India, China and Brazil. These contrasts underpin fundamental differences in sentiment in developed and emerging markets during a time when corporations are focused on strategies for stability and growth. The message is clear: even in markets with pent-up demand, consumers in emerging markets respond differently to new brands and product opportunities than do their counterparts in developed nations.

July 2012

Conversely, the emerging market consumer sentiments can be summed up as Three E’s—Energy, Engagement, and Enthusiasm. Yet, despite this prevailing commonality in optimism, marked differences in perceptions around loyalty and shopping-related behaviors were detected. According to LoyaltyOne President Bryan Pearson, whose book, The Loyalty Leap: Turning Customer Information into Customer Intimacy, is due out in May 2012: “Consumer sentiment is incredibly important bellwether. While there are many imminent concerns for business on the horizon, corporations, especially those that are banking on loyalty for growth, would be wise to heed two strong prevailing themes: Success in North America requires a rewrite of the rules of engagement, and emerging markets will not be won with a one-size-fits-all mentality.”

Developed and Emerging Market Comparison Highlights: l

Foreign

vs.

domestic

brands:

International Shoppers in emerging nations are more welcoming of foreign brands and in some cases are more trusting of foreign/global brands. In China, nine out of 10 consumers say that global brands are more trustworthy than domestic brands. Chinese consumers are six times more likely than Americans to agree with the statement that competition from foreign companies is a good thing. l

Credit card usage: China, Brazil and India consumers are five times more likely than U.S. and Canadian consumers to say they will use credit cards for “things you can’t afford now.” l Privacy: 68% of Brazilian consumers are concerned about protecting their personal information, compared with 50% of consumers in the United States and Canada. This far outstrips China, where just 33% of respondents said they are concerned. l Brand Loyalty Defined: Consumers almost universally define brand loyalty as telling friends or family to shop at a particular store, except in China, where loyalty is defined as shopping with a specific company for more than three years.

“We’ve entered into a period of great change and complexity, which is driving a critical need for clarity and direction. This study is an essential navigational beacon regardless of whether you’re leading the charge for growth on foreign soil or in a market where growth is increasingly hard to mine,” says Kelly Hlavinka, Managing Partner of COLLOQUY. In addition to the macro comparisons between mature and emerging economies, the “2011 COLLOQUY Cross-Cultural Loyalty Study” explores in-depth sentiments of each of the cohorts across the markets studied. A fulsome analysis of the developed markets will be the subject of the second of the three white papers, due out later in November. It will provide a closer look at the effects of the confidence crisis in the mature markets. In this installment, marketers in North America will discover several sobering challenges:

l Only 12% of Americans and 10% of Canadians strongly agree that it pays to be loyal to your favorite brands. l Data compared with earlier studies will show that engagement with marketing communications is trending down in several channels including social media.

“There are some incredibly compelling and eye-opening findings in our research including what’s on the horizon for customer loyalty strategies,” adds Hlavinka. “I think chief marketing officers are going to be surprised with the trends and needs that are reshaping customer expectations and loyalty globally. There is vast loyalty opportunity to evolve how we engage customers in

Three T’s—Tired, Turned Off, and Tuned Out—are used to characterize consumers in developed markets, where there is strong evidence of a new set of much higher expectations for innovation and reinvention among loyalty programs.

circle. If, on the other hand, you parlay core insights into a long-term engagement strategy from the outset, the potential for ongoing return on investment increases exponentially.”

About Loyalty One LoyaltyOne is a global provider of loyalty strategy and programs, customer analytics and relationship marketing services. Its roster of clients includes leading businesses and brands in multiple sectors such as retail, banking, manufacturing, government, natural resources and utilities.

About COLLOQUY COLLOQUY comprises a collection of publishing, education and research resources devoted to the global loyalty-marketing industry. Owned by LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since 1990 with over 40,000 global subscribers to its magazine and www. colloquy.com the most comprehensive loyalty web site in the world. COLLOQUY’s research division develops research studies and white papers including industry-specific reports, sizing studies and insights into the drivers of consumer behavior n Source: COLLOQUY

the developed markets. We’ve also uncovered a strong desire for special services & privileges in the emerging markets. Marketers would be well served to understand these trends and deploy strategies to capitalize on them.” The third white paper, slated for release in February 2012, will paint some stark on-the-ground differences among the same cohorts across the three emerging markets, underscoring disparities in cultural and behavioral characteristics, despite a shared optimism. According to Hlavinka, “The findings from the emerging markets are telling us that even where there is pentup demand, setting up shop doesn’t guarantee you’ll end up in the winner’s

July 2012

International

Follow the Money An insight is only as good as the money it makes. Here is a look at how companies plan their approach and strategies based on the insights they gain into their target consumers and how shoppers behave in different retail environments.

enry Ford said: “If I’d asked customers what they wanted, they would have said, ‘a faster horse’.” Steve Jobs famously echoed that sentiment when he said: “It isn’t the consumers’ job to know what they want.” Sam Walton took a related view with his 10th Rule: “Swim upstream. Ignore the conventional. Think differently. If everybody’s doing it one way, there is a good chance you can find your niche by going in exactly the opposite direction.”

failing. Growth requires innovation, and innovation will not happen without insights. So, is getting at those insights an art or a science? The answer, clearly, is “yes.” It is both. But the more important thing is to evaluate the quality of the insights based on the results that they ultimately deliver in terms of innovation and growth. That’s the reason we invest in insights, whether gut or quantitative.

Others, meanwhile, offer a more “quantitative” perspective. Dr. Oz says, “The major part of good heart health is in the metrics,” and W. Edwards Deming advised: “In God We Trust; all others must bring data.” Peter Brand, of Moneyball fame, said: “It’s about getting things down to one number. Using the stats the way we read them, we’ll find value in players that no one else can see.”

Look at the top-level companies in the Hub Top 20 over the last five years. We know how they got there. They understand that a brand is a promise made and kept, and that making and delivering the brand’s promise drives equity that drives enduring, profitable growth. They know that it’s innovation in the product, promise and channel that drive equity.

It seems good instincts and hard data are the yin and yang of business insights.

We need to recognize that shoppers are motivated first by emotion; shopping is an experience and that experience is an emotional one. One of the most important things to understand about translating insights into innovation is where the decision is made.

JC Penney chief executive Ron Johnson told Harvard Business Review, “you’ve got to trust your intuition much more than you trust the data.” In his book, Blink, Malcolm Gladwell also came down on the side of running with our first impressions. On the other hand, Michael Mauboussin, author of Think Twice, offered a rebuttal to Gladwell’s thesis, arguing that better decisions depended on the “wisdom of the crowds,” along with data and mathematics. And IBM chief marketing officer Jon Iwata advised his fellow CMOs to embrace “advanced analytics and compelling metrics” in their decision making. This debate may be as old as the business of marketing itself, but it probably will never die — and certainly not at a time when brand loyalty is eroding, private labels are growing, and more than 90 percent of new products are

July 2012

Most companies use a similar process for developing the insights. Every company has some level of insights that translate to some level of innovation that translates to some level of strategic planning and activation. Maybe it’s because they all use a similar process that most are experiencing less growth than they could?

But what makes some companies more innovative than others? What is their strategy? Some offer a value breakthrough like Walmart. Some are first-movers, like Microsoft. Some have a new vision, like JC Penney (results are yet to be determined, of course). There’s also a whole lot of talk today about the relationship between company culture and innovation, with Zappos often mentioned. Each of these companies has different strategies, but they all use insights as the currency, and translate those benefits to some form of consumer end-benefit.

A Whole-Brain Approach Given that consumers take a “whole brain” approach to making decisions, marketers need to take a “whole brain” approach to insights, with full consideration to both the “left brain” (logical, sequential, rational, analytical, objective) and “right brain” (random, intuitive, holistic, subjective). We need to recognize that shoppers are motivated first by emotion; shopping is an experience and that experience is an emotional one. One of the most important things to understand about translating insights into innovation is where the decision is made. That means we have to understand the consumer, the shopper, and whether their decisions are made before they get to the store or while they are in the store. There’s no way that we could do all of that purely through intuition — or purely through data. What’s required is a “think, feel, do” approach. To understand the shopper mindset, we need to have a deep, fact-based understanding of their behavior and the motivations that drive it, which can be acted upon to further brand innovations. These motivations can include attitudes, beliefs, values and feelings. Tapping into those motivations to influence shopper behavior requires understanding that behavior in the retail environment.

International So, we need an understanding of that, as well: How does the consumer decide where to shop, and then how do their surroundings influence whether they stick to their shopping lists or make their purchase decisions on the fly? The relationship between insights and innovation is built on the connections between the consumer, the brand and the retailer. It’s these connections that take us to a more strategic approach to developing insights, and it mixes quantitative and qualitative intelligence. They can help push the idea further because we are taking a more complete view of the consumer into account. After all, it’s the idea that changes the world, not the insight, so let’s put the focus there. Crayola, the number-one brand in children’s art supplies, has done a great job in this regard. More than half of Crayola’s category volume is sold during the back-to-school period and the brand has limited relevance the rest of the year. Their challenge is to innovate within their category and expand their relevance from “children’s art supplies” to something more. Their strategy is to broaden the definition of their category by creating new opportunities for self-expression. This is based on the insight that parents want a broader range of products to satisfy the aspirations they have for their kids. Crayola developed a range of “concept lanes” at retail, including kids’ art galleries in stores and Crayola Towers, a striking display of Crayola products that highlight the product’s many creative possibilities. I was not involved in the development of these concepts, but clearly they took into account the mindset, behavior and surroundings that were influencing the shopper’s decision-making.

growing fitness-apparel retailer, says it’s just the opposite. “Big data gives you a false sense of security,” she told the Wall Street Journal. Lululemon uses no customer-relationship management software at all, and instead relies on listening to what shoppers say when they are in the store (see page six). Lululemon’s results speak for themselves: “Over the past three years, the company has posted nine quarters in which sales rose 30 percent or more from the year before,” according to the Journal. Regardless of whether the approach tilts to the quantitative or qualitative side, Lululemon and other innovative enterprises are connecting the dots between the insights and the results achieved. And in a world where insights are judged only by the results they help deliver, the most sensible approach is to combine the human elements of judgment and creativity with the prediction and analysis of statistics or agent-based modeling. In this way, smart data collection provides the facts; models supply the rigor; and we supply the judgment and creativity for insight-inspired ideas that get better results.

rather looking at their interdependence. As a result, we can now understand the success drivers in terms of awareness and demand creation. We know what to do at retail, and how much money to spend. We are building insights based on scenario planning with predictive results. It is the best of all worlds, where not only are we using insights to create great ideas, but we are also testing them in different scenarios, at different levels of spending. The three questions about accountability are always: How can we improve over the results we’re getting now; how can we say that with a straight face; and how can we be sure we’ll get the results we’re predicting? Using the data, the model, our judgment, and testing the different scenarios allows us to go back to the data, push the ideas, make those ideas bigger and optimize the business. This is art and science, gut and analysis, and it provides a framework for insights, innovation and growth n Source: http://hubmagazine.com

In today’s fragile economy, companies are under such pressure on the earnings side of the equation that a lot of decisions are made to reduce risk. At many companies, it’s believed that quantitative research reduces risk.

Connecting the Dots In today’s fragile economy, companies are under such pressure on the earnings side of the equation that a lot of decisions are made to reduce risk. At many companies, it’s believed that quantitative research reduces risk. Not everyone buys into this, however. In fact, Christine Day, chief executive of Lululemon Athletica, the rapidly-

We can do scenario planning and understand how the consumer decision is made and which levers to pull. Therefore, we can identify the relationship between the consumer’s decision process, brand equity and the return-on-investment. We can do that by channel, by retailer and by consumer (see chart). It’s not about analyzing each of these areas independently, but

July 2012

International

Retailer going high-tech to bring shoppers back to stores The use of technology in our lives is increasing tenfold. When it comes to shopper marketing the best of innovations have made their mark making every one asking for more. Here’s a look at some new technologies and innovations hitting the market world over, giving a glimpse of where the future of shopper marketing is headed.

etailers hoping to lure back consumers shopping on the Web and via mobile devices have found a new weapon: interactive technology designed to bring the functionality of the Web to their stores. “Basically, I see this as an evolution that will change the way people shop,” said Chris Aubrey, vice president of retail marketing for the global shoe company Adidas. Adidas is one of dozens of retailers using technology to create in-store kiosks or monitors to give shoppers all of the information and flexibility of the Internet inside the real world of brickand-mortar stores. Retailers are getting a glimpse into the future of their industry at the National Retail Federation’s annual show here. Technology companies, including chip maker Intel, displayed innovations meant to help Merchants Bridge the gap between traditional in-store retailing and the Web. Some interactive kiosks give out free candy samples based on gender. Other devices include a large wall of monitors where shoppers can play games with chef Wolfgang Puck while buying his products from television shopping network HSN. The main function of this type of technology, which in many cases is several years from being in mass use, is to allow a consumer to interact with a product as he or she would online at home, but in the actual store. “We’re very, very interested in how shoppers are buying” whether it is in stores, online or using mobile technology, said Michael J. Tobin, senior vice president of omnichannel strategy for department store retailer Macy’s. The retailer has installed Macy’s Beauty Spot touch-screen stations at four of

its stores, including one at the Tysons Corner Center in Northern Virginia.

an entirely new experience — beyond a typical store and the Web.

The stations help shoppers find the right beauty products by inputting their personal needs and preferences. Customers then can email themselves a list of items or purchase the merchandise from an in-store concierge who is equipped with a tablet computer.

One way that some of the emerging technology can do that is by identifying and tailoring messaging to the shoppers.

“The future of retailing is here,” Tobin said. In Brazil, the fuel and convenience store chain Petrobras recently opened a state-of-the-art station that identifies drivers pulling up to the pump using radio-frequency identification devices installed in vehicles. Advertising messages directly target the driver as a way to lure the person into the store. The goal is to increase revenue inside the store. Adidas’ Aubrey said the interactive kiosk installed at the shoe company’s main London store for two weeks in November showed strong results. The large wall unit, called the adiVERSE Virtual Footwear Wall, lets shoppers view a product, get videos and sizing information and learn real time updates on what others are saying about the product from Twitter. Adidas used the display to promote its new adizero f50 micoach shoe, which wasn’t out at the time. Sales at that store — including advanced orders for the shoe and other items — were five times higher than other stores, Aubrey said. For a display to be effective, however, its needs to create an entirely different experience than what a consumer will find on the Web or via mobile devices, experts said. While some of the information will overlap, the technology needs to differentiate itself and give the shopper

Kraft is doing that with two machines in the U.S. — in Chicago and New York — that can identify someone’s age and gender as he or she approaches the units, then offer a free sample based on the customer profile. Retailers are doing all they can to “keep the attention of the consumer,” said Ed McCabe, national sales manager for consumer electronics manufacturer Panasonic. “Once they get you in the store, they want to get your business,” he said. For a company to do well in the modern marketplace, experts say that mobile, Web and in-store elements and employees need to interact seamlessly. David Jaffe, CEO of the Ascena Retail Group, which owns retailers Dressbarn, Maurices and Justice,said a smart retailer will take advantage of its options. “The best retailers will merge all three,” Jaffe said. “Customers don’t seek channels. They seek solutions.” In a recent report by accounting and consulting firm Deloitte, emerging technology has dramatically changed consumer behavior. “While the store experience will remain important for many shoppers, it’s a far cry from the role it once enjoyed when a physical store was the only place where a merchant and customer could connect. Stores are now becoming just one part of a larger, more connected experience,” Deloitte said in a report titled “The Next Evolution: Store 3.0.” n Source: Richmond Times-Dispatch

July 2012

Awards

POPAI OMA Awards: The more the merrier! In the last issue, Point Of Purchase presented you some of the Gold and Silver award winning entries from the POPAI OMA Awards held this year. Continuing with the visual treat, we present to you some of the Bronze winning entries from the Awards.

Entry Title : Mattel - Matchbox Smokey the Fire Truck Award

: Bronze

Category

: Aisle Redesign

Entry type : Permanent Entry Title : Diageo - Irish Brands Mass Display Award

: Bronze

Category

: Beverages â&#x20AC;&#x201C; Beer

Entry type : Temporary

Entry Title : Guinness Black Lager Display Award

: Bronze

Category

: Beverages- Beer

Entry type : Permanent

July 2012

Awards

Entry Title : Kahlúa Holiday Pole Topper

Entry Title : Ultimat Vodka Floor Display

Award

: Bronze

Award

: Bronze

Category

: Beverages – Liquor

Category

: Beverages - Liquor

Entry type : Semi-Permanent

Entry type : Temporary

Entry Title : LiveScribe Counter Unit

Entry Title : Sanford Canada Back to Business 1/2 Pallet

Award

: Bronze

Category : Books, Newspapers, Magazines, Stationery, and Office Supplies

Entry type : Permanent

Entry type : Temporary

July 2012

Awards

Entry Title : Logitech Office Max Back To School 11 End Cap

Entry Title : Quaker IQO Beach Head Display Award

: Bronze

Category

: Grocery and General Merchandise Products

Award

: Bronze

Category : Books, Newspapers, Magazines, Stationery, and Office Supplies

Entry type : Permanent

Entry type : Semi-Permanent

Entry Title : Nioxin Salon Launch Program Award

: Bronze

Category

: Hair and Skin Care

Entry type : Permanent

July 2012

Awards

Entry Title : 3M Office Depot Holiday Full Pallet

Entry Title : Bottle to Pen Floor Display

Award

: Bronze

Category : Books, Newspapers, Magazines, Stationery, and Office Supplies

Entry type : Temporary

Entry Title : Texas Lottery Play Station

Entry Title : Slim Jim Counter Top Display

Award

: Bronze

Award

: Bronze

Category

: Convenience Store Retailer

Category

: Convenience Store Retailer

Entry type : Permanent

Entry type : Semi-Permanent

July 2012

Awards

Entry Title : Kraft Foods - Stride Spark Counter Unit

Entry Title : Bare Minerals READY Launch Units

Award

: Bronze

Award

: Bronze

Category

: Convenience Store Retailer

Category

: Cosmetics and Fragrances

Entry type : Temporary

Entry type : Permanent

Entry Title : CoverGirl Taylor Tour Lip Perfection Spinning Counter Unit

Entry Title : Advil Nighttime Gravity Feed Sidewinder

Award

: Bronze

Award

: Bronze

Category

: Cosmetics and Fragrances

Category

: Drug Store Retailer

Entry type : Permanent

Entry type : Temporary

July 2012

Awards

Entry Title : Dr. Scholl’s For Her High Heel Inserts PDQ

Entry Title : Grey Goose Interactive Display

Award

: Bronze

Award

: Bronze

Category

: Drug Store Retailer

Category

: Electronic Interactive

Entry type : Temporary

Entry type : Permanent

Entry Title : Sony HD / HAV Fixture

Entry Title : Old Navy Men’s Slimfit Upstock

Award

: Bronze

Award

: Bronze

Category

: Entertainment

Category

: Signage

Entry type : Permanent

July 2012

Industry News

Industry players chart out path ahead How best to tap the consumer and the shopper? What are the threats, possibilities and the weaknesses that the POP industry faces today? How best to leverage e-commerce? These were some of the questions taken up at the POPAI India Annual General Meeting held in Mumbai recently. Point of Purchase reports.

Fairy Dharawat

he ninth Annual General Meeting of POPAI India was held on 6th July 2012 Friday at Hotel Orchid Mumbai. The event, which is organised and held by POPAI India to thrash out new plans and raise benchmarks for the industry, was well attended by the who’s-who’s of the POP industry.

Guest speaker, M Subhranshu Singh, Visa Marketing Director of India & South Asia, shared with the POPAI members a list of key points regarding shopper marketing in his lively presentation on the ‘Road ahead for the POP industry.’ Interestingly, he brought to light the ambiguity that exists in the terms ‘shopper marketing’ and ‘consumer marketing’. According to him, while there is no clear definition distinguishing the two, it is also an indication for the industry to adopt new methods/tools to understand the consumer and the shopper. Towards the end of the session, Singh also highlighted some key factors in the industry that represented weaknesses, threats and possibilities. “Messaging and branding is lost due to overselling, and the consumer reality is that the new shopper is a cautious and social

July 2012

shopper. And hence their choices are led by many factors not considered by the POP industry,” pointed out Singh and according to him, all these factors have to do with the increasing role of technology today: digitalization of consumers, their constant connect through the social networking sites and the emergence of e commerce. Singh was in fact quite vocal about the fact that e commerce is not being used to its full potential in India and that if the industry wants to create new standards, then ecommerce is an inevitability. Well, all in all, it was an engaging and insightful session that saw the POPAI members exchanging ideas on new innovations and possibilities for the future. The AGM also saw the formation of six new committees in the following areas:

1. Public Relation Communication

Marketing

2. Online Training Program 3. Event and Activities 4. OMA Awards 5. Shopper Marketing Insight 6. Standard Operating Procedure (SOP)

Resource Digital Printing MMT Digital Unit-46, A to Z Ind. Estate, G.K.Marg, Lower Parel, Mumbai - 400 013. Tel: 022-2493 7187 / 91 Email: popmedia@vsnl.com

Vijas Digital (I) Pvt. Ltd. Vijas House, C-1 Cama Estate, Walbhat Road, Goregaon (E), Mumbai - 400 063, India. Tel : 022-4068 3700 Email: info@vijasgroup.com www.vijasgroup.com

Machine & Material Apsom Infotex Ltd. A-53, Okhla Industrial Area, Phase II, New Delhi - 110 020. Tel:011-2638 5096 Email: sales@apsom.com www.apsom.com EFI Tel: +65 6220 1355 (EFI Singapore) +91 80 6768 1000 (EFI India) www.efi.com

Printech Digital Imaging Pvt. Ltd. #270/2, Near Bhanu Nursing Home, Bommanahalli, Bangalore - 560 008. Mobile: +91 98807 12345 +91 99000 35942 write2printech@gmail.com Prince Digi Graphics 37-A, Government Industrial Estate, Charkop, Kandivali (W) Mumbai - 400 067. Tel: +91-22-28606117 / 28696117 princedigigraphics@rediffmail.com www.princedigigraphics.com

July 2012

Max Flex And Imaging Systems Ltd. 104, Prime Plaza, JV Patel Compound, B S Madurkar Marg, Elphinstone West, Mumbai - 400 013. Tel: 022- 4212 2828 Email: info@maxflex.in Negi Sign Systems & Supplies Company, 3rd Floor, Shivam Chambers, Besides Sahara Studio, S.V Road, Goregaon (W), Mumbai - 400 104. Mobile: +91 98200 81885 Technova Imaging Systems Toll-free (India) : 1 800 22 7474 Email: help@technovaworld.com www.technovaworld.com

POP Advertising ACE Enterprises Manek, 21, Hardevi Society, Caves Road, Jogeshwari Station Road, Jogeshwari (E), Mumbai - 400 060. Tel: 022-2835 4940 / 2838 4445 Email: ace.rushabh@gmail.com Adglo # 150/1195, Motilala Nagar No- 1, Near Sai Baba Mandir, Goregaon (W), Mumbai - 400 104. Tel: 022-2876 7055 / 2877 9815 Email: adgloneon@gmail.com Brandmark Solutions Pvt. Ltd., 17, Orbit Industrial Premises, Opp. Hometel Hotel, Mindspace, Malad (W), Mumbai - 400 067. Mobile: +91 98205 26366

Resource GV Display Solutions Pvt. Ltd. www.gvdisplays.com

Tel: 91-22-6782 6464 Email: krutipromotions@gmail.com

Integra Retail Solutions Pvt. Ltd. 311, 3rd Floor, Shiv Sagar Industrial Estate Kotkar Road, Off Aarey Road, Goregaon East, Mumbai 400 063. Tel/Fax: 022 - 29270892/3. Handphone: 91-22-9820352227 ibrahim.casubhoy@integraretail.in

Mac Media Signage Pvt. Ltd Tel: +91-22-29271829 Email: sales@macmediaindia.com www.macmediaindia.com

Jyothi Display Pvt Ltd. Unit No-10 & 11, Bldg No. 5 Mittal Industrial Estate, Andheri Kurla Road, Andheri (E), Mumbai -59. Tel: 91-22-4046 3100 / 16 Email: enquiry@jyotidisplay.com Kruti Promotions & Events Pvt. Ltd. 601, Corporate Arena, Piramal Nagar Road, Goregaon (W), Mumbai - 400 062.

Planet Dezign (India) Pvt. Ltd., # 279, Motilal Nagar, 1, Off Link Road, Opp. Vibgyor Scool Gate 3, Goregaon (W), Mumbai - 400 104. Mob: 098210 32859 / 093222 93999 www.planetdezign.com The Rhino India 142, Patparganj Indl. Area, New Delhi - 110 092. India. Tel: +91-11-4735 0393 Mob: 96502 96104 Email: therhinoindia.com www.therhinoindia.com

July 2012

Calendar November 2012

August 2012 31 July - 1 August The LED Show Annual conference and exhibition, Las Vegas www.theledshow.com

14-16 November Greenbuild San Francisco www.greenbuildexpo.com

15-16 August Latin American Innovation Forum Rio de Janeiro, Brazil www.worldorg.com

December 2012 5-7 December A.R.E. Retail Design Collective New conference and showroom format www.retaildesigncollective.com

September 2012 5-7 September International Retail Design Conference Chicago, IL http://www.irdconline.com/

January 2013 20-22 January Sign & Graphic Imaging Middle East Dubai World Centre, Dubai www.signmiddleeast.com

6-8 September International Food & Technology Exhibition Karachi, Pakistan http://www.foodtechpakistan.com/ 24-26 September Retail 2012 Sydney, Australia http://www.retailexpoandconference.com.au/

February 2013

24-27 September INDEX Exhibition Dubai www.indexexhibition.com 25-26 April Category management & Shopper marketing 2012 London www.igd.com

October 2012 4-5 October Packaging Innovations London 2012 London, http://www.easyfairs.com

21-23 February

In-Store Asia

Bombay Exhibition Centre, Mumbai www.instoreasia.org

7-10 October NACS Show, Las Vegas, NV http://www.nacsonline.com

April 2013

16-18 October Shopper Marketing Expo Navy Pier, Chicago www.shoppermarketingexpo.com

July 2012

16-18 April Globalshop, Chicago, www.globalshop.org

Printech Ad