Cover
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Editor’s Note Volume : 7
Celebrating Excellence
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s you can see our highlight this month is the POPAI OMA Awards 2012. Having personally steered an annual VM&RD Retail Design Awards during the last five years, I can very much understand and appreciate the processes that go behind such events -- organizing the entries and their categories, selecting them, shortlisting them and then judging them. But what really strikes me about this international award is the sheer variety of categories and the number of brands that have all made it to the top list.
June 2012
EDITOR & PUBLISHER
:
Vasant Jante
EDITOR
:
N Jayalakshmi
CORRESPONDENT (KOLKATA)
:
Nabamita Chatterjee
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Fairy Dharawat
ASST. MANAGER PRODUCTION & OPERATION
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To see so many gold, silver and bronze winners is certainly happy news for someone from the industry. I’m also amazed when I wonder how mind boggling it must have been for the Jury to select from among so many vying for the top slots. It is certainly an indication of a healthy competition and a good reflection of how seriously international brands are taking their retail presence. It also makes me wonder about the Indian scenario. Needless to say, there have been some very good examples of instore visibility initiatives by brands. POPAI India OMA Awards is essentially about recognizing this. But there is still a big room for growth. To begin with, of course we don’t see too many new categories entering the retail visibility fray although everyone today is pretty gung- ho about wooing shoppers and everyone agrees that one of the most obvious ways of tapping them would be at the point of connectivity -- retail. Secondly, the quality of displays.
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We are yet to reach a stage where eye catching, classy displays that communicate brand information even as they persuade the shoppers to buy are a regular sight. There are examples, but they are exceptions rather than the norm. It brings me back to the same old questions -- is it that brands just don’t care enough? Is it that they don’t find the right vendors to execute? Is it that the retailer and the retail space are too challenging? This question of course goes back to the first question...May be it’s a mix of all these reasons. But what is the way forward? I would like everyone who has a stake in this whole path to purchase -- whether it’s the brands, the industry, agencies, specialized agencies or anyone else -- to come together, form a community and define excellence. This obviously means thrashing out issues, exploring opportunities, setting up new yardsticks etc. So as a first step, I would certianly like to hear from you regarding your thoughts on this. So please feel free to contact us and share your ideas on how a collective pool of different stake holders can form a community to promote excellence.
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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 Harish Bijoor, Harish Bijoor Consults Lloyd Mathias
Well, moving on, we as usual have some international studies, columns and more for you. They all point to two things- a) Studying the shopper is increasingly becoming more important and b) Technology is the most indispensible tool today to help us woo the shopper. The sooner we explore al its possibilities the better for all concerned.
Rahul Saigal, Vice President - Retail, OgilvyAction R. Kannan, President, RAMMS
Happy reading! Cheers!
Vasant Jante
June 2012
Issue : 11
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Contents
Volume: 7
Issue: 11
June 2012
Brand Stand
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Budweiser 8
Interview Senthil Natarajan
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Awards POPAI OMA Awards-2012
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Technology NCR Corporation
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Column Tara Prabhakar Jim Lucas
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Shopper Pulse Grabbing the pulse of the Shopper 42
International And now, an interactive app for shoppers! 44 Way to Shoppers` Mind, Heart & Wallet! 46 Worldview of Shopper Marketing! 50 Shopper Research 52
Resource
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Brand Stand
Budweiser’s new mantra: Tap the cool in a cool way One segment that has really seen a sea of changes in terms of brands range and on-ground visibility especially, in metros as like Bangalore, is liquor. From modern trade-like outlets to fine dining restaurants and micro breweries, the options are many today for a consumer to pick up a bottle and just chill. Cashing in on these changes in the market is Budweiser of the ABinBev Group. The brand with an aggressive mix of on-ground events and retail visibility initiatives, has managed to lodge it place among the top-of the recall spots. One of its latest initiatives has been on the retail front in Bangalore with some -eye catching displays. Point of Purchase brings you more dope on this. N Jayalakshmi
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t is hard to miss the revolving bottle shape unit at this premium liquor store in Bangalore. A scout around the city will reveal many more such units, all aimed at catching the eye balls of the young and the cool. Indeed, Budweiser, the international beer band, which had to reckon with a tough competition initially in the Indian market, is today a clearly visible option in retail what with its interesting and innovative displays in stores, from the ‘Bud Corner’ to smaller displays like neons, counter-tops, shelf units etc. For the brand the decision to go all out on the retail front and tap potential customers was based on some clear market trends. Says Mr Jibin P.V, State Head, ABinBev India, “Bangalore has seen lot of improvements in terms of premium walk in-stores coming up; these outlets are more like Modern Trade outlets where the consumer walks in and sees the product and picks it up. So in terms
June 2012
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Brand Stand
of that, we saw lot of opportunities for of displaying our products, making it larger than our competitive brands. There are about 128 premium outlets in Bangalore and we are present in all of them in terms of neons, counter tops and shelf display units, while in about 15-20 outlets we have larger displays which are custom made for them. These include the Bud Corner, carton stacking units etc and they all vary from size to size.� Obviously, the kind and size of the display units depend on the outlet, but for the most part, the brand has been focusing on permanent displays. The company has been working with a number of vendors for these units and the brief to them was clear: it was to target youngsters. So it had to have a cool and classy look which makes them pick up the product. As Jibin says, “Our customers are trend setters who make others follow them.� So a lot of high-end materials and acrylic were used, which were also budged friendly. One of the challenges the brand faced was of course convincing the retailer, but once the latte realized the benefits they derived out of having these displays
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June 2012
Brand Stand
in their stores, they came around. Says Jibin, “Initially, it was very difficult to convince the retailers. But the advantage is that in these premium stores where the margins are not very high for the retailers, they depend on the brand to a large extent for visibility and benefits through rentals and we had to negotiate hard on the rentals for sure. But once they saw the pictures and were assured that our designs did not spoil the store’s look and feel they were convinced, and in fact happy to see some innovative displays in their stores.It also helps that we make sure that the displays are consumer friendly and eye catching.” The brand also enjoys the advantage of having a permanent spot in these stores, so that only the creatives are changed every time there is a new campaign or promo. Well, all these efforts have obviously paid off for not only has the ROI been positive for the brand in stores, it has also seen its market share going up from 5% to 20% according to Jibin. What’s more, the brand has also risen to the second place in the market, next only to Kingfisher, displacing some tough competition, according to Jibin. The results can be traced not only to these appealing displays but to also some active promos and offers such as scratch-a-card- win-a-gift and other branded merchandise related offers. The company also plans to have LCD TVs with the idea of engaging the customers and communicating product information to them on a continuous basis. Well, for a brand that was quiet initially, there has certainly been some aggressive action in the last one year to woo consumers. From events and artist sponsorships to in-shop offers, it
June 2012
has taken a 360 route. And according to Jibin, much of these efforts are generated from the shopper studies that the company engages in constantly to gauge shopper behaviour and needs. And, with a view to tapping the Tier II and Tier III cities, the brand has also extended many of these activities and promos to these cities. Says Jibin, “We have not neglected Tier 2 and Tier 3. There are international brands in from these cities and it doesn’t make sense keeping away these cities, though the scale and budget might be smaller compared to the metros.” n
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Interview
Out of streets and Out of Box! To carve out a niche as a retail brand in a product segment dominated by street side vendors certainly requires some out-ofthebox thinking! And this is exactly what Coimbatore based Kovai Pazhamudir Nilayam has done (incidentally, Kovai is Coimbatore in Tamil and ‘Pazhamudir Nilayam’ means Fruit Centre). Starting as a vendor of fruits, this retail brand has quietly made its way to the top as one of the most recognisable brands in Tamilnadu in fruit retailing. In an interview with Point of Purchase, Mr Senthil Natarajan Managing Director, Kovai Pazhamudir Nilayam, shares his rags-to-riches story which is inspiring even as it reveals some good insights into retailing and shopper behavior. Read on. N Jayalakshmi
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ould you briefly share with us your journey from a small entity to being a big chain? It didn’t happen with a plan. Basically it came from our customers & people who travel from different places suggesting us to open outlets near their residences etc. This business was started by dad and his brothers in 1967. Prior to that dad was working in a street side shop and then he went on to sell fruits carrying them in baskets & selling near bus stops and schools. He then went on to buy a push cart and sell fruits in that. All that experience helped him in knowing the shortcomings in that kind of selling. The primary factors are hygiene and damages due to sun and rain. Even back then things like shoes
June 2012
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looking at products which people buy daily, products that people can classify as fresh like bread, milk, paneer, dairy produce etc. How much of shopper persuasiveness of the above factors are to do with the store ambience? And, what aspects of the store do you focus on so that shoppers can spend more time inside the store?
and footwear used to have showrooms. So dad wondered, “if something that people wear on their foot can have a showroom, why not have a showroom for something they eat”. Hygiene and quality was his mantra. Now of course we open little more aggressively doing 4-6 stores every year. When we find a suitable location that suits all our criteria we want to open new stores. In another 5 years’ time we will be happy having 50-70 stores which are termed by customers as the best fruit and vegetable store of their locality rather than having 150 stores which people don’t feel as fresh or the best. Fo r a c a t e g o r y t r a d i t i o n a l l y dominated by street side vendors and hawkers, how challenging was it to get into this retail format? Like most success stories, making people accept a fruit and vegetable showroom happened after struggles for close to 3 years. People had to be convinced that just because it’s a showroom it will not be expensive. Also dad’s principles of no-bargain & fixed-price also took time for people to understand and place confidence in us. Now we are also very careful in ensuring that our infrastructure, supply chain and our back end is strong enough to support new stores. Is there a specific kind of shopper that you were targeting when you got into this format? We target shoppers who are putting
quality as their criteria to buy. This could be a bank employee, an affluent business man, a simple house wife or a doctor. Once a housewife understands that she is buying something special when she steps into our store and also when she realises that 100% of all things she buys from us is usable without any wastages then we got a lifetime customer. It is building such loyal customers, which helps us in differentiating ourselves from all other retail chains which primarily target on bringing footfalls by throwing offers. Though offers might induce people to shop, they will not go back again if they are not fully satisfied when they use the products. Also people going for offers will not go once the offers are taken away. What were the factors that you think influenced shoppers to come to a shop like yours to buy vegetables and fruits? Quality, Variety & Spread (of fruits and vegetables), Ambience and Comfort while shopping, Quick Billing and most importantly, Lasting Freshness Towards the above what kind of value added services you began to offer on your patter? And what else are you looking at today? We have started cut vegetables in some of our Chennai outlets with the right kind of equipments and processes. It is received well and we are stepping up to a massive scale on it soon. Also we are
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Primarily store ambience is where we can differentiate ourselves from our competitors. We look at proper airconditioning, having enough billing counters, having good display racks and also providing ample space to consumers to move around freely. Once the AC is working well and they have ample space to move around with a beautiful array of products displayed and also some pleasant music in the background, customers are going to spend more time inside the store. Going further do you see your products as independent brands retailing in other stores as well? Only this year we have started branding mangoes and bananas after going through lot of processes. We don’t see our products being retailed in other stores in near future. Our intention is to make our customer step and shop in our store for our products. Given the competition in this area, what do you think gives Kovai Pazhamudir Nilayam an edge? And how do you think you will maintain this edge consistently over the years? The edge right now stands in the spread and the quality of products. Also we have a strong supply chain built over so many years that ensures freshness of our products. But to maintain this edge, we constantly keep questioning ourselves on what it takes to be the best fruit and vegetable retailer in the country and what will be the future of this trade in the next 5 years. It’s about constantly improving ourselves n
June 2012
Awards
POPAI OMA Awards-2012 : A Snapshot It is out finally. The results of the much awaited 54th annual Outstanding Marketing at Retail Achievement (OMA) Awards Competition during GlobalShop 2012. Nearly 500 entrants from over 100 companies were adjudicated in 26 industry categories during this year’s competition. Entries were judged on design, innovation, interactivity, and the proven ability to lift sales. Richard Winter, POPAI President was quoted as saying, “Recognizing the most innovative and effective in-store media in each industry category is an important way to establish the ever changing standard of excellence in marketing at retail.” He added, “Each year the OMA Awards Competition receives a myriad of entries from around the world that demonstrate the impressive creativity and evolution of the marketing at retail medium. Winning an OMA is a great way for an organization to establish and communicate its understanding of the power and effectiveness of marketing at retail.”
Display of the Year The most prestigious award presented during POPAI’s OMA Awards Competition, the Display of the Year, is awarded across three divisions based upon length of time in the store – temporary, semi-permanent, and permanent. Only those entries that win a gold OMA qualify for consideration in the Display of the Year. Point of Purchase presents to you a snapshot of some of the Gold, Silver and other award winning entries across categories and display types. Do keep watching this space for more of these in our next issue.
June 2012
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Awards
Entry Title : Sephora GLO Window Banner Set
Entry Title : Rockwell InterActive End Cap
Award
: CREATIVE AWARDS
Award
: DISPLAY OF THE YEAR
Category
: Signage
Category
: Mass Merchandise Retailer
Entry type : Semi-Permanent
Entry type : Permanent 2011
Mac Media Ad
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June 2012
Awards
Entry Title : Gillette/H-E-B Men’s Zone Guy Aisle Award
: GOLD
Category
: Aisle Redesign
Entry type : Permanent Entry Title : Coors Hitching Post Award
: GOLD
Category
: Beverages – Beer
Entry type : Temporary
Entry Title : Mountain Dew Ceiling Wave Award
: CREATIVE AWARDS
Category
: Convenience Store Retailer
Entry type : Temporary Entry Title : Martini & Rossi Bouquet Of Balloons Displays Award
: GOLD
Category
: Beverages – Liquor
Entry type : Semi-Permanent
June 2012
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Awards
Entry Title : Jose Cuervo Especial Gold & Silver Holiday Pole Topper Award
: GOLD
Category
: Beverages – Liquor
Entry Title : Bumblebee Half Pallet : GOLD
Category
: Toys and Accessories
Entry type : Temporary
Entry type : Temporary
Entry Title : Crayola Office Max Pallet Award
Award
Entry Title : Spirit Halloween Zombie Wasteland
: GOLD
Category : Books, Newspapers, Magazines, Stationery, and Office Supplies
Award
: Display of the year
Category
: Specialty Retailer
Entry type : Temporary
Entry type : Temporary
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June 2012
Awards
Entry Title : Mountain Dew Cooler Door Oversize Bottle
Entry Title : Elizabeth Arden Taylor Swift Cube Display
Award
: GOLD
Award
: GOLD
Category
: Convenience Store Retailer
Category
: Cosmetics and Fragrances
Entry type : Temporary
Entry type : Semi-Permanent
Entry Title : Sally Hansen Wal-Mart Pallet
Entry Title : Mucinex - ARCH Family Displays
Award
: GOLD
Award
: GOLD
Category
: Cosmetics and Fragrances
Category
: Drug Store Retailer
Entry type : Semi-Permanent
Entry type : Temporary
June 2012
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Awards
Entry Title : Skullcandy Roc Nation Aviator Headphone End Cap Display Award
: GOLD
Category
: Electronic Interactive
Entry Title : Quaker IQO Beach Head Display Award
: BUDGET
Category
: Grocery and General Merchandise Products
Entry type : Permanent
Entry type : Permanent
Entry Title : Mario
Entry Title : Harry Potter Castle Display
Award
: GOLD
Award
: GOLD
Category
: Entertainment
Category
: Entertainment
Entry type : Semi-Permanent
Entry type : Temporary
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June 2012
Awards
Entry Title : Hop Theatrical Standee (Candy Factory) Award
: GOLD
Category
: Entertainment - In Theater
Entry type : Temporary
Entry Title : Floor Stand Axion Avena Award
: GOLD
Category
: Grocery and General Merchandise Products
Entry type : Permanent
Entry Title : Nice n’ Easy Foam Endcap Display
Entry Title : Men’s Cruzer PDQ
Award
: GOLD
Award
: GOLD
Category
: Hair and Skin Care
Category
: Hair and Skin Care
Entry type : Temporary
Entry type : Semi-Permanent
June 2012
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Awards
Entry Title : Prevacid 24 Hour PDQ
Entry Title : Tuftex Color Coordinates Display
Award
: GOLD
Award
: GOLD
Category
: Health Care
Category
: Home and Garden
Entry type : Temporary
Entry type : Permanent
Entry Title : Kellogg’s 2011 Holiday Toy Soldier Hutch Kit
Entry Title : Febreze Christmas Tree Pallet
Award
: BUDGET
Award
: GOLD
Category
: Supermarket Retailer
Category
: Mass Merchandise Retailer
Entry type : Temporary
Entry type : Temporary
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June 2012
Awards
Entry Title : Radler Camp Moc Launch Display Award
: GOLD
Category
: Personal Products and Accessories
Entry Title : Bath & Body Works - Sweet Treats Bakery Case
Entry type : Permanent
Award
: GOLD
Category
: Personal Products and Accessories
Entry type : Temporary
Entry Title : OSH In Home Sales Program
Entry Title : Makita ProCenter, Godzilla
Award
: GOLD
Award
: SILVER
Category
: Services and Transportation
Category
: Home and Garden
Entry type : Permanent
June 2012
Entry type : Permanent
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Awards
Entry Title : Hershey Need a Penny take a Penny Counter Unit
Entry Title : Werther’s Original Caramel Shoppe Powerwing for Walgreens
Award
: GOLD
Award
: GOLD
Category
: Snack Products and Soft Drinks
Category
: Snack Products and Soft Drinks
Entry type : Permanent
Entry type : Temporary
Entry Title : Toys R Us Wonka Endcap
Entry Title : Orville Redenbacher’s Pre-Pack
Award
: GOLD
Award
: Budget
Category
: Specialty Retailer
Category
: Snack Products and Soft Drinks
Entry type : Permanent
Pop-Up
Bown
Entry type : Permanent
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June 2012
Awards
Entry Title : Reebok 11k Helmet Glorifier Award
: GOLD
Category
: Sports Equipment
Entry Title : Wilson Freestanding Floor Spinner Glove Display
Entry type : Semi-Permanent
Award
: GOLD
Category
: Sports Equipment
Entry type : Permanent
Entry Title : Floor Stand Soflan Suavitel Award
: GOLD
Category
: Supermarket Retailer
Entry type : Permanent
June 2012
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Awards
Entry Title : TRIO Hot Wheels
Entry Title : Dora Pallet Display
Award
: GOLD
Award
: GOLD
Category
: Toys and Accessories
Category
: Toys and Accessories
Entry type : Permanent
Entry type : Semi-Permanent
Entry Title : Q-Tips Floorstand - Project Sturdy
Entry Title : Lucky’s Tomato Aisle Redesign
Award
: SILVER
Award
: SILVER
Category
: Health Care
Category
: Aisle Redesign
Entry type : Semi-Permanent
Entry type : Permanent
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June 2012
Awards
Entry Title : Molson Illuminated Hockey Mask Award
: SILVER
Category
: Beverages – Beer
Entry Title : Anheuser Busch - Landshark Holiday Standee
Entry type : Permanent
Award
: SILVER
Category
: Beverages – Beer
Entry type : Temporary
Entry Title : Moonshine Rolling Gun Case Display
Entry Title : Jack Daniel’s Holiday Barrel Tree Display
Award
: SILVER
Award
: SILVER
Category
: Beverages – Liquor
Category
: Beverages – Liquor
Entry type : Semi-Permanent
Entry type : Permanent
June 2012
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Awards
Entry Title : Jack Daniels - Birthday End Aisle Display
Entry Title : VAIO S13†Series Laptop Inline Display
Award
: SILVER
Award
: SILVER
Category
: Beverages – Liquor
Category
: Computers
Entry type : Temporary
Entry type : Permanent
Entry Title : Microsoft Mousterpiece OfficeMax Shipper
Entry Title : College Racks Unit
Award
: SILVER
Award
: SILVER
Category
: Computers
Category
: Convenience Store Retailer
Entry type : Semi-Permanent
Entry type : Temporary
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June 2012
Awards
Entry Title : Swiffer Wet Jet Shine Display
Entry Title : Sally Hansen Wal-Mart Crackle End Cap
Award
: SILVER
Award
: SILVER
Category
: Home and Garden
Category
: Cosmetics and Fragrances
Entry type : Temporary
Entry type : Semi-Permanent
Entry Title : Allegra RX-to-OTC National Launch - Drug Store Retailer
Entry Title : KODAK Interactive Display for Best Buy
Award
: SILVER
Award
: SILVER
Category
: Drug Store Retailer
Category
: Electronic Interactive
Entry type : Permanent
Entry type : Temporary
June 2012
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Awards
Entry Title : Skylanders Interactive Retail Display
Entry Title : Star Wars Blu-Ray Best Buy Tie Fighter
Award
: SILVER
Award
: SILVER
Category
: Entertainment
Category
: Entertainment
Entry type : Permanent
Entry type : Temporary
Entry Title : Harry Potter and the Deathly Hallows Part 2 Theatrical Standee
Entry Title : Hershey’s Eat Think Smile Off-Shelf Rack Display
Award
: SILVER
Award
: SILVER
Category
: Entertainment - In Theater
Category
: Grocery and General Merchandise Products
Entry type : Temporary
Entry type : Permanent
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June 2012
Awards
Entry Title : Worx Innovation Bay
Entry Title : LG Esteem Standee
Award
: SILVER
Award
: SILVER
Category
: Mass Merchandise Retailer
Category
: Personal Products and Accessories
Entry type : Permanent
Entry type : Temporary
Entry Title : Michelin MX Pilot Super Sport Counter and Floor Displays
Entry Title : RainX Full Pallet
Award
: SILVER
Award
: SILVER
Category
: Services and Transportation
Category
: Services and Transportation
Entry type : Temporary
Entry type : Permanent
June 2012
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Awards
Entry Title : PACCAR Part’s TRP LED Wall Display
Entry Title : Gears of War 3 Countdown Clock
Award
: SILVER
Award
: SILVER
Category
: Signage
Category
: Signage
Entry type : Permanent
Entry type : Temporary
Entry Title : Red Bull Rhombus
Entry Title : 7UP - Captain America Motorcycle
Award
: SILVER
Award
: SILVER
Category
: Snack Products and Soft Drinks
Category
: Snack Products and Soft Drinks
Entry type : Temporary
Entry type : Permanent
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June 2012
Awards
Entry Title : Turtle Beach GameStop Demonstrator
Entry Title : Capital One Bank Double Rewards Display
Award
: SILVER
Award
: SILVER
Category
: Specialty Retailer
Category
: Specialty Retailer
Entry type : Permanent
Entry type : Semi-Permanent
Entry Title : Spirit Halloween Zombie Baby Scary Swing
Entry Title : Columbia Omni-Heat Glove Display
Award
: SILVER
Award
: SILVER
Category
: Specialty Retailer
Category
: Sports Equipment
Entry type : Temporary
June 2012
Entry type : Permanent
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Awards
Entry Title : Kroger/Duracell Battery Center
Entry Title : Hasbro Let’s Rock Elmo Display
Award
: SILVER
Award
: SILVER
Category
: Supermarket Retailer
Category
: Toys and Accessories
Entry type : Permanent
Entry type : Permanent
Entry Title : Mattel - Matchbox Smokey the Fire Truck
Entry Title : Chuck Truck Pallet
Award
: SILVER
Award
: SILVER
Category
: Toys and Accessories
Category
: Toys and Accessories
Entry type : Temporary
Entry type : Semi-Permanent
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June 2012
Awards
Entry Title : SC Johnson Scrubbing Bubbles Wal-Mart End Cap
Entry Title : John Frieda Precision Foam Colour Tower Endcap
Award
: SILVER
Award
: SILVER
Category
: Grocery and General Merchandise Products
Category
: Hair and Skin Care
Entry type : Temporary
Entry type : Semi-Permanent
Entry Title : Schick Intuition Naturals PDQ
Entry Title : Logitech Best Buy Mice and Keyboard Category Management
Award
: SILVER
Award
: BRONZE
Category
: Hair and Skin Care
Category
: Aisle Redesign
Entry type : Temporary
June 2012
Entry type : Permanent
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Technology
A single point quick fix for retailers Here’s a technology solution that promises to make retailers’ life easier by providing a single point of contact to fix a range of glitches. Point of Purchase gives you more details on this. vendor management, NCR’s TPS will enable reduced downtime and cost thus improving operational efficiency and a better return on investment. NCR’s Total Premise Services includes Total Store Services for retailers, Total Branch Services for bank branches and services for the travel sector i.e. airports.” Previously when an interruption was caused, retailers used to go to the vendor who provided the infrastructure. But with this service, they can simply connect with NCR, and get their glitches fixed in less time. They also have a dedicated customer care centre in India to assist the retailer with their SOS.
Jaivinder Gill Managing Director NCR Corporation Fairy Dharawat
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et’s face it -- technology today is an inevitable aspect of our lives. And when it comes to retail the range of needs is pretty long - right from monitoring shoppers to maintaining and upgrading technology, managing assets and backend systems, etc. to name a few. To understand each new technology and implement them on a constant basis is a huge task for retailers what with their hands being full already. Stepping in to make their lives easier is NCR Total Premise Services, a comprehensive solution to help retailers maintain high customer service levels, while managing costs. Quite simply put, this software will help the retailers by providing a single point of contact for all types of issues. Says Jaivinder Gill, MD, NCR Corporation, India, “NCR’s Total Premise Services (TPS) conveniently provides comprehensive coverage to maximize system availability of retailers, airports and bank branches. Leveraging a combination of remote problem resolution, help desks, hardware maintenance as well as
June 2012
Besides, NCR also offers services which are predictive in nature; which ensure that the devices are always available when customers need them. According to the company, this is the first managed service that predicts failures on assisted and self-service terminals. Over a period of time, NCR also plans to look at expanding this to other sectors i.e. retail and travel. Going by the benefits offered by the solution, we can expect the retailer to benefit in a number of ways. To begin with, with a single point-ofcontact responsible to manage the entire retail infrastructure, disruptions could be solved quickly. Also, with the help of NCR Total Store Service, the retailer can command higher solution availability. Retailers are also expected to benefit from NCR’s strong support infrastructure, round-the-clock availability of dedicated engineers, remote resolution capabilities and worldwide parts. To lead smoother transition with improved operational efficiency, NCR also promises to deliver a team to manage operation from start to finish. They also help in providing a service partner who helps retailers in implementing solutions in a faster and in a more effective way along with managing effectively service costs. This service partner is, according to the company, a trusted partner appointed
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by NCR Total Premise Services who will know the business closely. They would also give process improvement ideas to the retailer in the various levels of business on a continuous basis. This obviously means less disruption for the retailer. NCR plans to provide these services in a mix of both retainership and as a package, depending on customer requirements. The pricing will depend on size of technology required by the company and the extent of IT infrastructure that NCR will manage. The facilitating of Total Premise Services will be done through direct sales and channel route to reach more customers, more markets and coinnovate. Still in the nascent stage, NCR services do promise to change the way retailers approach their problems. Says Jaivinder Gill, MD, NCR Corporation, India, “NCR’s strong support infrastructure, round the clock availability of dedicated engineers, remote resolution capabilities and worldwide parts to drive higher solution availability enables quick provision of services. The dedicated Managed Services centre and extensive services foot-print across 260 service support centres in India will help management and execution seamlessly.” Well, obviously for NCR there is a huge market to be tapped. According to the Business Maps of India report, the retail industry is currently growing at a great pace. It is expected that by 2013, the retail sector will go up to US$ 833 billion. This exponential growth in retail sector is taking place not just in major cities, but also in Tier-II and TierIII cities which the NCR is planning to target. Meanwhile, retailers now have some good reasons to cheer n
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Shopper psychology: The sixth sense of retail and regular shopping at these outlets rather than just the sales figures or the count of occasional impulse visits to the store) is how imposing their store is. They are not overwhelmingly large, spread out over multiple floors, nor do they have stocks piled into the sky. At first glance, Nature’s Basket makes a shopper feel like she has “manageable choice”. This is psychologically important for shoppers of luxury / exotic / gourmet retail.
Tara Prabhakar, Development Director, TNS Retail & Shopper APAC
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his will be a monthly perspective on some interesting aspects of human behaviour in commercial spaces. Understanding what drives people to behave in a certain way is the first step towards building a successful shopperoriented business. People are motivated to behave as they do by structural, cultural and psychological stimuli in the form of spatial characteristics of a retail environment (design, ambient conditions), shopping traditions or rituals and their response to people dynamics (the retailer, other shoppers, sales staff...). Retailing is not only about putting the right product at the right price in a nicely designed store; it is also about creating the right structural or psychological stimulus to generate a desired response (in purchase or behaviour) from the shopper. This month’s piece is devoted to an area that is being touted as a 5000 crore opportunity – gourmet retailing. While numerous retail brands have forayed into this area, I am keen to discuss one particular success – Nature’s Basket, a Godrej enterprise. I am a keen observer (as well as loyal shopper at) of Nature’s Basket in my city, Bengaluru and I see that there is one aspect of shopper psychology in gourmet retailing that Nature’s Basket has tapped into effectively. The product mix, store location and staff notwithstanding (no doubt they play a crucial role but they are hygiene factors), a big factor in the success of Nature’s Basket (I define success in terms of repeat
June 2012
Gourmet shopping is about sensorial engagement and the see-saw battle between restraint and seduction. It is scientifically proven that indulgence or gourmet shopping tends to release hormones (dopamine, to be precise). These hormones produce a short-lived “high” and it is in this window that most purchases (especially unplanned or out of budget) are made. Like all “highs” this one too has a shelf-life which retailers should be mindful of – the longer a shopper takes to make a gourmet purchase, the more likely this window will pass by without conversion. One big reason for shoppers taking too long to decide is the amount of choice they are presented with. While some choice is liberating, too much choice can be debilitating (The Paradox of Choice - Why More Is Less: Barry Scwartz, 2004). Because when faced with an array of desirable options, shoppers begin to make hypothetical trade-offs where the options are evaluated in terms of missed opportunities rather than potential of the opportunity. Simply put, if you have 115 types of cheese to choose from (a gourmet store launched in Mumbai advertised this recently), first of all, you feel obliged to look at them all (unlike in mass market shopping where you would filter out choices, because gourmet shopping is a new experience, you look at everything). So, even when you chance upon what seems like a good choice, you move on to look at the others before making a final choice. Then as you plough through the 115 types, you begin to wonder about what you are missing out on by not choosing A rather than what makes A a good buy. Every “good” choice you come across is met with a “high” that dies down when you move on to the next choice. Do this enough times and the brain is “full”. The thrill associated with gourmet shopping is quickly satiated, the filter of logic replaces greed, lust and temptation and the next few purchases before check-out are usually “what you
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really need”. Where the shopper should have bought five products she buys two, where she should have bought a superpremium variant she buys a premium one. We call this outcome the “choice hazard”. Learning about the “choice hazard” is important because it has an impact on off-take, on the gestation period of the business as well as on the profit. Concept retailing will not achieve exponential growth unless it becomes a regular (even if low frequency) habit for enough shoppers. The “choice hazard” tells us that while shoppers will always say they want choice, more choice leads to more time and trips to get used to the store, making it more difficult to become a regular habit rather than a special trip. For individual categories too, it takes a few successive buys to make the transition from a guilty pleasure to a discerning necessity. What shoppers are really looking for is “manageable choice”. The logical question that follows this understanding is – what is “manageable choice”? It depends – on factors such as the how nascent the category is (the newer and more niche the category, the more overwhelming choice can be as you are still learning about the category and like any new student, the more books to read, the more daunting the subject seems, the more difficult it is to the right starting point), the store layout (multiple levels communicate less area to cover than one sprawling level), aisle layout (covering the two faces of a six-feet aisle rather than one face of a twelve-feet aisle seems like less effort because the eye registers less choice in the former layout and turning the bend to go to the other face of the aisle is a physical break that reduces the burden of choice), aisle height (this depends on the average height in a country but in India, six feet high aisles communicate manageable choice because everything is almost within your line of sight). There are many more aspects to “manageable choice” but the point of this article is to establish that unlike mass retailing, gourmet retailing needs to be wary of giving too much choice and letting shoppers leave without fulfilling the potential of the trip. In these times of spiralling real estate costs and manpower issues knowing that “small is good” is good news, isn’t it? n
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What Global Brands are doing to Woo Shoppers
Jim Lucas Executive VP, Global Director , Retail Insight and Strategy Draftfcb
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lobal brands face a number of external challenges thinning attention spans, increased clutter at the store shelf, shoppers’ demand for gainful experiences and hyperrelevance., myriad of store formats, etc. The internal challenge for global brands then is getting the ”what” of their strategies right (e.g., insights, innovation and communication). Equally important is getting the “how” right (e.g., developing a single global brand strategy, protecting the universal essences that define the brand’s global resonance with consumers, creating marketing alignment, brand expertise across geographies, speed to market, etc.). The rewards for cracking the code on external and internal challenges is strong and sustainable growth.
Global Balancing Act Shopper behavior provides insights that suggest there are some commonalities that transcend borders. Shopper engagement (visual engagement) is driven more by cognitive psychology and human physiology than local patterns Shoppers do not read signage or packaging thoroughly, so key visuals, essential copy, simple, bold design draw the most attention., when shoppers have little bandwidth to process all information.
June 2012
Leveraging consistent visual equities and create a consistent identity globally. Leveraging global human behavior patterns. At the same time, incorporate local insights about brand/category (e.g., immediate vs. future consumption, need vs. want, etc.) into the tailoring of programs. Many leading global brands develop toolkits which provide solutions for many of the different markets and retail formats in which they operate. Typically these assets are accessed online, but produced locally. This allows global brands to harvest and leverage brand expertise throughout their global network, to align on marketing goals. They enjoy the benefits of global branding, while reaping rewards at retail in different markets. Brands evolve and differentiate to create choice -- the right mixture of consistent global identity, local insights and flexibility.
Using Visual Hierarchies There is a good deal of research that suggests that “visual saliency” is heuristic that affects how shoppers look at POS and packaging in a retail setting. Elements that are most visually attractive, dominant attract the most attention. Visually attractive elements not only attract and hold attention, but
produce liking and preference. This same research suggests that shoppers can process 2-3 visual elements in the first 3-5 seconds of viewing POS or packaging We look at three examples from different categories: Fairy dishwashing liquid with Olay, Pampers and Nivea’s Invisible Deodorant. They illustrate a trend toward visual saliency. These three examples of POS were analyzed using 3M’s Visual Attention Model to determine how consumers would view them—attraction of different visual elements, and most likely sequence of viewing 2 Each of these examples has strong visual elements and a minimal amount of copy. Fairy dishwashing liquid communicates both the effectiveness in cleaning and preserving hands. Pampers extols the benefit of “1 dry night”—sleep. And Nivea communicates the deodorant’s benefit of invisibility. Note that each of them is easily taken in within the first 3-5 seconds. Perhaps their greatest strength is their ability to visually communicate benefits, quickly and in an economical manner.
Fairy Dishwashing Liquid Olay Header Card and Floor Graphic (Dubai)
Pampers Dry Night (Dubai)
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aligning efforts by.providing clear direction on communication of brand essences that preserve brand truths that resonate with consumers, while leveraging local brand knowledge and expertise.
Nivea Invisible Deodorant (Various Markets)
WOW Factor The Wow Factor is another approach brands are using to woo shoppers. The Wow Factor can be used to elevate perception within a category, create interest and involve the shopper on new levels. Often groundbreaking in approach, the Wow Factor helps brands stand out in a sea of sameness and emotionally touches the audience. Clinique’s Even Better Clinical Dark Spot Corrector is an interesting example which shoppers readily admit possesses the “Wow Factor.” Perhaps the Wow comes from its ability to communicate with minimal copy! While many leading cpg companies employ the Wow Factor (e.g., Unilever,
P&G, Coca Cola, PepsiCo, etc.), we looked at POM The Wonderful pomegranate products. POM is a relatively young brand, selling pomegranate products in 50 countries around the globe. Some of its ads and POS have created controversy in the UK and USA, they are nonetheless interesting in their ability to produce WOW. They not only attract attention, but pays off the attention by communicating the benefit or relevance to shoppers.
References: 1. “Consumers can make decisions in as little as a third of a second.”, Milica Milosavljevic, Christof Koch and Antonio Rangel, Judegement and Decision Making, Vol. 6, August 2011.
“Relative visual saliency differences induce sizable bias in consumer choice.”, M. Milosaljevic, et al.,
Journal of Consumer 22(2012): 67-74.
Take Aways Global brands are wooing shoppers by addressing both internal and external challenges. l Internally,
l Externally, global brands are evolving the way they differentiate and create choice in the store, while addressing emerging shopper needs— thinning attention spans, desire for gainful experiences in increasingly cluttered retail environments.
leading
brands
are
Psychology,
2. Examples were analyzed with 3M’s Visual Attention Model, which predicts where consumers will look, as well as the sequence of their viewing n
Clinique Even Better Clinical Dark Spot Corrector
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June 2012
Shopper Pulse
Grabbing the pulse of the Shopper Shopper Pulse is the new study undertaken by IIM-Ahmedabad TNS and Ogilvy Action to gauge the influencing factors that make shoppers buy. This study also shows up the fact that as shoppers face an array of choices, brands have no option but to focus strongly on shopper marketing. POP magazine gives you more details on the study.
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o understand the motivating tools and the needs that inf luence the shopper to finetune their antennas while shopping, IIM-Ahmedabad TNS and Ogilvy Action have collaborated to conduct a research based study known as Shopper Pulse. The study aims to explore major inf luences that drive the shopper to buy in Hypermarket formats.
attend a facilitated 3 hour long focus group which covers brands, channels, retailer choice and the motivations and state of mind that drive shopping.
The study also aims to provide a direction for engaging the shopper in an improved fashion where the shopper can be comparatively more active while assisting in-store levers. These in-store levers would ultimately help strategically feed into determining more effective in-store conversion strategies for specific food & personal care categories.
Some of the key features of the study:
The study was carried out in three cities and six stores during September- October. Big Bazaar and HyperCITY were chosen as two ends of the Hypermarket experience - the former an example of a Discounted Hypermarket, the latter of a Premium Hypermarket. Five types of methodology or techniques were used to gauge the shopper’s quantitative and qualitative and behavior. Under quantitative behavior, (1) exit interviews were conducted to intercept them and invite them to participate in an interview. (2)Observations were carried out and based on the data collection, a structure observation sheet would be created (3) Shopper behavior would be recorded live with the help of Filming/Videography. Under quantitative behavior, (1) Shopnography methodology was used for a 3 stage of assessment, (a) Pre-store interviews (b) In store observations(c) and Post store interviews and (2) Focus Group Discussions, where 6 to 8 respondents
June 2012
The study also helps in reiterating the fact that brands would need to spend more time and resources on understanding the shopper as different from the customer.
1. Shopping and Communing: 70% of shoppers visiting hypermarkets are accompanied 2. Democratization of Shopping: Hypermarkets attract more than just ‘SEC A’ shoppers. The percentage of non-Sec A shoppers increases. As the age of shoppers drops it was observed the percentage of non-Sec A shoppers increases. 3. The Ubiquity of Loss: At any given point of time, there is a risk of 12% of lost sales for a retailer (or brand) if the experience is not shopper-centric. Comparatively, the risk of such loss is as low as 2% in traditional trade (with sale being lost most often on account of stock-outs). This is due to the major chunk of shopping is 70% while the Impulse and emergency is 12%. 4. Personal Care – The Pied Piper: Conversion in personal care is as high as 48%. 5. Hypermarkets cater to Niche India: There is a huge opportunity for hypermarkets to attract a wider shopper base by targeting businessmen and traders and consequently increasing overall footfalls at their stores. 6. Shoppers are Trip Shy: Shoppers who shop at hypermarkets only once or twice a month is 62%. The reason is that mostly these shoppers
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consider these trips as up’ destination. By introducing trip based loyalty programs casual hypermarket visit would be a lot more worthwhile for the top up/emergency or even impulse shopper. This will also encourage other shopping missions by increasing shopping visits by making it more fun based activity for the shoppers. 7. Engage and Entertain the Youth: 40% of all co-shoppers who accompanied the primary shopper were his/her friends. Nearly 40% of all students spent less than `500 on their shopping trip. Greater proportion of students visit the hypermarket on an impulse, compared to mature/ veteran householders. And hence Hypermarkets are fast becoming entertainment destinations for the youth. This study obviously gives many leads regarding what makes a product/ brand tick among shoppers and why they buy a particular product. The study shows us that shoppers and consumers are very different and hence the approach taken by the companies need to change in order to have a deep understanding and psyche of the shopper n
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International
And now, an interactive app for shoppers! Integration of technology in your in-store programs will sure help you take that giant leap and foster engagement. Here in this space we source out some really interesting technology applications that retailers and brands are deploying to make the life of the shoppers more easy and interactive. Read on to know what a French Hypermarket does for its shoppers. Crowdsourced App
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eclerc, a French hypermarket banner, has long been known as the cheapest non-discount hypermarket in France. Their website allows shoppers to compare the prices of nearly every product sold in their stores with the prices of the same product at their competitors. The data for the website is provided by Leclerc’s employees who regularly visit hypermarkets of every banner throughout France.
2) This system allows Leclerc to bypass the very restrictive law on pricecomparison in the media in France. Leclerc can therefore fight against its competitors on their own terms. Of course, all of this is nothing if Leclerc is not actually the cheapest. And, according to some comments on the itunes store page for the app, it seems that the app does not work if the product is cheaper at a competitor’s store. Moreover, it does not take private label products into account, a field in which its competitor Intermarché is much stronger. All in all, this new app is another way for the n°1 hypermarket banner in France to show how deeply they are involved in the country’s fight for the improvement of purchasing power, a political theme that Leclerc and former outsider, now strong Intermarché, made their own since the early 2000s, leaving their main competitors Carrefour and Auchan in a complex situation. Here’s a glimpse at how the app works: Step 2 : The app gives the price of the same product at the closest Leclerc store. The shopper is then invited to tell the app at which retailer the product is the cheapest (here Leclerc or Franprix) or if the prices are the same n
Michel Edouard Leclerc, the popular and talkative CEO of Leclerc, had the idea to crowdsource the data for the website thanks to smartphone technology. He launched an iphone app that allows shoppers to scan products while they are shopping at competitors stores. It allows them to know the price of the same product at the nearest Leclerc hypermarket. Then shoppers are invited to tell the app if it is cheaper or more expensive than at the store they are actually purchasing the product.
- Contributed by Eric Coulon, Integer Paris
There are two really good ideas here: 1) The shopper can acknowledge, everytime he/she scans a product, that Leclerc is really, as it claims to be, the cheapest retailer. It is strong proof of a widely advertised promise.
June 2012
Step 1 : The shopper scans a product while shopping at a competitor’s store (here : Franprix)
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International
Way to Shoppers` Mind, Heart & Wallet! Shoppers are becoming tech savvier than ever, they are fast, fickle and hard to catch in a world which is close to becoming ‘digitaldom’. It’s therefore essential that we learn the tricks of the trade. Here is an international piece on how you can capture you ‘Digital and social shopper’, read on and know a little more about this complex being.
Handle With Care Do what’s right for today’s digital shopper -- not just what’s on-trend.
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ny marketer would be excited about the overarching potential benefits that emerging media provide. We can’t help but be enthusiastic as we contemplate the what-ifs.
What if we could target communications to a brand’s most valuable shoppers? What if we could personalize each communication? What if we could deliver the communication based on the shopper’s location? In real time? All the while measuring to understand the tangible business impact and acquiring data to optimize future initiatives? On top of that, add the benefits of being both green and cost-efficient. There are, however, some alarm bells reminiscent of the irrational exuberance of the dot-com years when we hear
June 2012
people speak of “the digital path-topurchase” — implying that this is a strategic foundation. Particularly disconcerting are statements like the recent declaration in an IPG MediaLab trend report that “2011 is the year that our traditional media and consumer tools begin to disappear — 2011 is the year loyalty cards, cable boxes and feature phones jump the shark; at the same time, mobile, gaming, and digital behaviors are now majority activities across all demographics.” While we embrace the opportunities digital affords for communicating with shoppers, statements like these may actually impede successful integration into the shopper’s path. First, they tend to silo emerging media. Second, while we appreciate the enthusiasm, it is important to integrate emerging media in a manner that reflects the pace of the consumer’s ability to absorb them— digital is not a “one size fits all” proposition.
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Lastly — and most important — the hyperbole tends to divert attention away from focus on the shopper and onto the media we use to communicate with that shopper. This is exactly the opposite of what should be happening. The shopper is the hero. The best approach is to start with a thorough understanding of our consumer as a shopper and work back along the path to understand the best combination of online and offline ways to engage with them. Put simply, if it doesn’t work for the shopper, it doesn’t work. In this process, the focus is always on doing what’s right versus what’s ontrend. Consumers as Shoppers: How do we define what’s right? One of the most important reasons for the development of shopper marketing is to understand how one’s core target consumers behave as they morph into a shopper mindset
International — i.e., the “need states” or “shopping modes” that determine what they buy, where they buy it and why. As most know, the most common need states are driven by time, money, care for family and care for self. Understanding shoppers based on their needs provides a convenient way to segment them that cuts across demographic lines and enables marketers to communicate in much more compelling and relevant ways. For example, let’s look at two homeimprovement segmentation case studies. One illustrates the demographic approach while the other demonstrates the needs-based approach. What do we learn from the demographic approach? The following are quotes from the findings: l “Seniors have higher purchasing rates than other generational segments and boomers remain a key segment in the home improvement sector.” l “Boomers and seniors are significantly more likely than younger generations to have purchased at least one item on their last visit.” l
“Affluent shoppers are also more likely to have purchased something compared with lower income households.” l “Until Gen Y emerges as a buying force in the coming years, the older generational cohorts will remain the key drivers of growth in the next five years.” l “Most are in the store to buy but many buy on impulse.” l “Eight percent of all shoppers will walk out empty-handed during a given store visit despite the fact that they came with the intention to buy something.”
What do we learn from the needs-based approach? There are two types of home improvement shoppers: “planners” and “taskers.” l “Planners” typically take on relatively big home-improvement jobs. They have an emotional connection with their work and a sense of pride and confidence when they are successful. They plan and price projects down to the last bolt. They know exactly what they are doing before they start. They value
expert advice. They prefer a highly interactive, high-touch and responsive shopping experience. For this segment, most learning takes place with human interaction from a trusted source. l “Taskers” want to get a specific job done — often in an emergency. They are task-oriented, with a goal to repair or maintain. They are not deeply engaged and just want to complete the job as fast as possible to get back to the television set. l At times they will not even read instructions or take direction. They want to find what they need and get in and out quickly.
Based on these descriptions, what is the best way to market to each segment? For example, if all you knew were the demographics, would you develop an app for tracking progress on the project to meet the “planner’s” needs? Would you develop an in-store finder app for the “tasker”? What is the balance between leading shoppers by providing a digital tool they understand and can use versus leap-frogging their digital capabilities? The best approach is to do an indepth analysis of how “planners” and “taskers” think in each key phase on their respective paths-topurchase and structure media and messaging accordingly. However, the “demographics only” approach is problematic because of its limited scope and lack of meaningful insights. Normally, when confronted with this situation, it is advisable to add the needs-based dimension in order to be as relevant as possible. Path-to-Purchase: There are only three objectives for path-to-purchase marketing: on the list; in the cart and in the heart. The brand’s objective for the pre-shop phase is to get on the shopper’s list. How this is accomplished will vary by brand but may include creating awareness, why your product is right for a particular shopper segment or where it can be purchased. It may include education on product benefits or an incentive to purchase. Traditionally, these types of needs have been addressed through advertising, participation in retailer circulars or free-standing inserts. The digital
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versions of these tools ramp up the convenience factor with searchability, auto-downloading of coupons, mobile retail apps, pricing comparisons and geo-aggregation of retailer websites based on shopper zip codes. However, the most significant and influential factor in the pre-shop phase is word-of-mouth affirmation empowered by social networking. For example Advertising Age reported that 68 percent of Millennials (80 million people!) check with friends before making any major decision. Similarly, a Baby Boomer confirmed that, despite the pre-launch millions spent on movie advertising, a friend’s opinion of the movie was usually the deciding factor in whether he would go or not. A misstep by a brand or retailer is immediately chronicled on Yelp for all to see. The lesson: your target shoppers’ friends and communities can instantly wipe out millions of dollars in marketing efforts if your brand (or service) is not responsible and responsive. The “shop” section of the path has a simple brand objective — get your product in the shopper’s cart. Price and promotion are the traditional standards and — particularly in a price-sensitive economy — play an obviously critical role. Both retailers and marketers are beginning to embrace some in-store digital initiatives — from handhelds to touch screens — but smartphoneenabled tactics have the strongest growth trajectory. Presently, these mobile initiatives are focused primarily in three areas: a) improving the shopping experience by helping shoppers find the right product (e.g., Meijer’s “Find It” app or Robitussin’s “Relief Finder”); b) providing information to help shoppers validate a purchase; and c) promotion — in real time. Smart marketers view the in-store direct-to-consumer brand connection that mobile provides as a necessary hedge against retailer decisions that could disadvantage a brand in-store. According to the Hub magazine “Shopper Marketing Update,” (Ready at Retail, July/August 2011) 86 percent of shopper marketers expect that most of their digital efforts over the next three years will be in mobile.
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International
The objective of the post-shop section of the path is to get one’s brand in the shopper’s heart — to earn that shopper’s personal loyalty and his or her advocacy for one’s brand. The post-shop is the area where combining digital media and social networking has the power to be transformative for marketers and brands. The ideal scenario is not only to generate satisfied users but to exceed expectations so that these users will become your advocates on social networks — which now total 150 million users in the US — 63.7 percent of the online population. The post-shop component of the path completes the loop and feeds the preshop for repeat purchases and increased loyalty. To do this successfully, there must be a return-on-investment for the shopper beyond the value of the brand. This could be emotional or financial, depending on the shopper’s needs. For example, best-in-class cosmetic companies do everything they can to make their shoppers feel beautiful, not just sell them product. The value shopper appreciates coupons or freebies while the status shopper wants to be in an exclusive group. The technophile wants to be first on the block with the newest technology. Costco is one of the best in the business at providing valueadded to its members, while Amazon has the ability to anticipate needs and ensure the highest possible degree of personalization.
DVRs specifically to skip ads. Another 44 percent does not open direct mail. In other words, people don’t want to be sledge hammered; they want to be engaged and guided via relevant conversations. Messages that help a shopper with a problem or meet a need at the time it is needed are actually welcomed and sometimes even shared. Digital marketing is especially appropriate because it’s easily personalized, localized and real-time. Closing the opportunity gap. Despite the hype, everyone is not totally into digital. There are still large segments of consumers that have yet to maximize the opportunity. This is why best-inclass marketers must carefully blend both online and offline to communicate effectively on the path-to-purchase. When doing so, we would encourage you to understand and monitor the evolution of your target shoppers in the digital realm. Where are they now? Are there early adopters who can direct you on which technologies will take hold with your targets? In addition, understand the role of digital on the path-to-purchase for your brands and categories. Where on the path are critical decisions made? What is the most relevant context for the brand and shopper to engage? Which digital executions provide a real or perceived benefit to your shoppers? Commit to data acquisition and analytics. Do you use every touchpoint as a chance to capture data and learn more about your shopper? Have you established key performance indicators? Are you scorecarding results? Have you selected the most meaningful metrics? Most important, have some fun. Add digital components to more traditional executions. Work with your retailers. Experiment. Have conversations. Play games. Let your brand’s personality out of the box. Then learn from it n Author - KEN BARNETT is global CEO of Mars Advertising Source - The Hub Magazine
Context matters: Your shopper has a marketing spam filter. In fact, most are now resistant to intrusive or interruptive advertising. Of 300 million registered phone users in the US, 200 million are on the Federal “Do Not Call” list. Eighty-six percent say they bought
June 2012
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The objective of the postshop section of the path is to get one’s brand in the shopper’s heart — to earn that shopper’s personal loyalty and his or her advocacy for one’s brand. The post-shop is the area where combining digital media and social networking has the power to be transformative for marketers and brands.
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A word of caution on the mobile connection: This is an area where irrational exuberance reigns. Statistics vary wildly as to actual US smartphone penetration and growth projections. The best numbers we have heard (from eMarketer) peg current smartphone penetration at 31 percent of total US mobile users and project this to grow to 43 percent by the end of 2015. In other words, barring a significant price drop in smartphone plans, expect growth to be modest, especially with unemployment over nine percent.
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International
Worldview of Shopper Marketing! One concept, many approaches. Shopper marketing minus the theory is indeed morphing into many shapes world over. Thus in this space we capture the varied perspectives, practices and thoughts related to shopper marketing. Read on to know what we have this time. Making Sense of Shopper marketing – A look at how multi-channel, campaigns influence sales and extend reach Executive Summary
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hopper marketing has reached a tipping point. Marketers can no longer rely on converting shoppers into buyers the old-fashioned way. Shopper marketing is at a crucial intersection: consumers are rapidly adapting their purchase behavior, while brands are quickly trying to understand that behavior. Shopper Marketing campaigns become cost effective and more successful if agencies and brands can adapt. In order to build on its potential, campaigns must evolve beyond siloed, endemic buys, and develop into multichannel strategies that are capable of running seamlessly across the media ecosystem and feeding into offline territories. Advertisers and agencies typically treat in-store, display and mobile campaigns as separate parts of their overall strategy, each with an individual spend. Each platform has exceptional strengths: for display, heavy research capabilities allow consumers to digest information rapidly; for in-store, coupons, interactive media and mobile capabilities influence the point of decision; and for mobile extensions, geo-fencing and strategic targeting capabilities allow for higher performance. Combined in a single holistic campaign, in-store, all three can work together to deliver an ROI while increasing the opportunity to influence a sale. However, the current lack of a fluid structure along the path to purchase has led to segmented marketing messages. The alignment of messaging throughout the path to purchase can lead consumers to make decisions online and drive more in-store purchases. To help quantify the impact, Longboard Media took a look at display campaigns with mobile extensions while analyzing against in-store data provided by various retail partners. Through this study, several key questions were addressed:
l Does the combination of display and mobile improve efficiency?
June 2012
l 85% of shoppers are researching products online.
a late funnel media buy. If we look at the path to purchase this way, we get a better sense as marketers of the new drivers within the decision-making process, or journey. Understanding a shopper’s journey can help marketers develop communication strategies that are more effective and ultimately, lead to a purchase. Marketers need to observe the actions that a consumer makes while understanding on the backend the cause of these actions.
l 40% of the time, a shopper selects a brand prior to entering a store.
Opportunities to Reach Consumers Along Path to Purchase
l There are dozens of influencers along the path to purchase:
Agencies and brands will continue to shift portions of their digital budgets and in-store budgets to address the changing path to purchase.
l What sort of influence does research activity have on in-store purchases? l What are the benefits of digital Shopper Marketing campaigns? l What are the key influencers along the path to purchase?
Key Findings
– Display: Paid media, product placement, product reviews and social media. – Mobile: Geo-fencing, store targeting, couponing and barcodes. – In-store: SOS, coupons, collaborative media, displays and signage. l Price, brand preference and product reviews play a large part in a consumer’s selection. l In-store mobile extensions can increase display reach by 10-20%. l Retail sites are becoming large players in the e-commerce marketplace.
THE PATH TO FRAGMENTED
PURCHASE
IS
The above model starts with a trigger, prompting the demand for a certain product. The path to purchase ends with the trigger itself being fulfilled. From demand to satisfaction, the shopper will go through a series of interconnected actions, each with an outcome that prompts another action. The path to purchase is no longer linear. In fact, most actions are happening at the end of the funnel, and this is where Shopper Marketing is most effective …
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Changes in technology and shopper behavior have changed the path to purchase. Pre- purchase research and digital campaigns on shopping and retail sites are having a quantifiable impact on brick and mortar purchases. Even more noticeable is the use of mobile devices and tablets while consumers are shopping in-store. Consumers are using the devices to check out product details, compare prices and find a local retailer. A growing trend among mobile usage in-store is the opportunity to buy instantly — moving the consumer from consideration, to purchase at any moment. Shoppers Conducting Research - Outof-Store Analyzing the new path to purchase allows marketers to improve communication strategies that target consumers at the right time, right place and with the right message. More and more, consumers are spending good chunks of time preparing for their trips to retailers and making decisions before they even enter the store. As the digital gap widens, marketers have new opportunities and new ways to target consumers while they are in the act of making a purchase decision, or
International brand message 3 or less times, but when campaigns are run on multiple platforms, such as display and mobile, the ability to target consumers and hit them with a brand message increases almost two fold. purchase decisions in the store as most consumers are planning their purchases before they even step foot in a retail store. Factors Influencing Shoppers In-Store Selections The growth of digital media campaigns has led to shoppers coming to retail stores not only more prepared to make a decision, but well informed on product specifications and consumer reviews. The most effective way for marketers to communicate with active shoppers is to customize content such as e-newsletters, digital media and social media to foster a relationship with the consumer.
researching with the intent to enter a store and make a purchase. Marketers must continue to produce programs that target consumers while they are in the act of browsing or making a brand decision. Furthermore, when shoppers are looking for a product online, they don’t always make a brand decision. In fact, before they enter a store, they may have selected a few brands to research, allowing them to continue the evaluation once in front of the product.
Other factors that are continually influencing a shopper’s in-store selections are brand preference, product characteristics, low cost, websites/blogs and coupons. Understanding what drives consumers to a retailer will contribute to the growth of channel categories and help marketers get a better understand of when they should be communicating with consumers: out of store, in store…. or both? Dual Platform Campaigns Enhance Reach
l
Consumer shopping engines
l
Retailer websites
l
Coupon accumulation/acquisition
l
Social media
l
Brand loyalty
As consumers diversify how they digest shopper media beyond display media and embrace an ever- wider array of screens such as mobile / tablet devices, advertisers need to adjust their campaigns accordingly. By complementing a display campaign with a concurrent mobile campaign, advertisers can expand their reach to multiple screens, and help reinforcethe brand’s message while substantially increasing campaign performance. Longboard Media ran a $520,000 mobile extension on top of a custom $560,000 display campaign on our network with a premier advertiser and found that reach of habitual and deal shoppers was increased by close to 10 percentage points.
l
Digital campaigns
Average Frequency Increases
FACTORS INFLUENCING BRAND EVALUATION SETS:
Bottom line: Brands and agencies need to take advantage of digital Shopper Marketing if they want to influence
The division of the media landscape allows for operational regularity. Consumers are generally exposed to a
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Shopper Marketing Capability
as
a
Tactical
Insight is key to measurement at every stage of the path to purchase. The current challenge facing agencies and brands is to put clarity to how multi-channel campaigns and strategies can work together. Shopper marketing should be measured as a tactical capability, with one function working off the next, unilaterally. Measuring Shopper Marketing campaigns unilaterally involves the cohesiveness of three key areas: l Analytics: Collect data throughout the funnel and understand how that is translating to sales on a retailers end. l Integration: How do analytics support the planning and measurement at each stage of the funnel? And for each campaign? l Technology: Utilization of new shopping technologies such as mobile and tablet devices and integrating them into campaigns. Measurement on the back-end.
Conclusion Digital Shopper Marketing clearly has enormous potential and continues to gain momentum among brands looking to test larger budgets. Digital Shopper Marketing must continue to deliver comprehensive returns on investments, and must be multi-channel and no longer a single silo. Shopper marketing must be developed into a strategic marketing capability and it must intersect with every other action and step along the path to purchase. Finally agencies and brands need to institute an effective measurement strategy that assists in understanding the efficiency of campaigns. As digital Shopper Marketing continues to grow and gain favorability among brands, its time for marketers to stop thinking about the platforms as separate pieces to the puzzle, but rather one ad-hoc program that fluidly works together n Source – Longboard Media
June 2012
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
June 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
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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 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. Tel: 91-22-6782 6464 Email: krutipromotions@gmail.com
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Mac Media Signage Pvt. Ltd Tel: +91-22-29271829 Email: sales@macmediaindia.com www.macmediaindia.com 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
June 2012
Calendar October 2012 4-5 October Packaging Innovations London 2012 London http://www.easyfairs.com
July 2012 11-12 July The 20th Shanghai International ad & Sign Technology & Equipment Exhibution Shanghai New International Exhibition Centre www.apppexpo.com
7-10 October NACS Show Las Vegas, NV http://www.nacsonline.com 16-18 October Shopper Marketing Expo Navy Pier, Chicago www.shoppermarketingexpo.com
August 2012 31 July - 1 August The LED Show Annual conference and exhibition, Las Vegas www.theledshow.com
November 2012 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
September 2012
5-7 December A.R.E. Retail Design Collective New conference and showroom format www.retaildesigncollective.com
5-7 September International Retail Design Conference Chicago, IL http://www.irdconline.com/ 6-8 September International Food & Technology Exhibition Karachi, Pakistan http://www.foodtechpakistan.com/
January 2013 20-22 January Sign & Graphic Imaging Middle East Dubai World Centre, Dubai www.signmiddleeast.com
24-26 September Retail 2012 Sydney, Australia http://www.retailexpoandconference.com.au/
February 2013
24-27 September INDEX Exhibition Dubai www.indexexhibition.com
21-23 February
In-Store Asia
Bombay Exhibition Centre, Mumbai www.instoreasia.org
25-26 April Category management & Shopper marketing 2012 London www.igd.com
April 2013 16-18 April Globalshop, Chicago, www.globalshop.org
June 2012
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