POP May 2012

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Cover

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Editor’s Note Volume : 7

Create many In-Store edges!

Issue : 10

EDITOR & PUBLISHER

May 2012 :

Vasant Jante

CHIEF CONTENT PLANNER &

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his issue captures many ideas and initiatives that can help a brand and retailers create a cutting-edge difference at retail; from splendid in-store communication, to enabling technologies, to effective shopper research. Each of these features at their crux has a way paved to make your shopper marketing endeavors better.

MARKETING STRATEGIST

:

Sachin Jante

ASSOCIATE EDITOR

:

Reena Mehta

CORRESPONDENT (KOLKATA)

:

Nabamita Chatterjee

SR. REPORTER (MUMBAI)

:

Archana Singh

ASST. MANAGER PRODUCTION & OPERATION

:

Vinod Kumar. V

CIRCULATION / EDITORIAL OFFICE: 1019/2, 1st Main, 1st Cross, Geetanjali Layout, New Thippasandara, Bangalore - 560 075. Tel: 91-80-40522777 Email: info@vjmediaworks.com Website: www.vjmediaworks.com MUMBAI OFFICE: 201, 2nd Floor, Krishna Commercial Centre, 6 Udyog Nagar, Nr. Kamat Club, S.V. Road, Goregaon (W), Mumbai - 400 062. Tel: 022-28769616

Addressing one really crucial part of the retail ecosystem, i.e. ‘The trade’ is the feature ‘Tackling your trade’. The feature details out the ‘trade marketing’ practice, its nuances and what today’s retail agencies have to offer in this front. Read to know how you can have your trade work better for your brands.

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While you learn to tackle your trade, this issue also has a feature which addresses the retail branding and retail experience side of the story. We have an International expert John Torella sharing some nuggets of wisdom for retailers and brands in India. Read the feature ‘It is training time for Indian Market’.

Mario Amalraj Ravindra Metilda Asha

98807 06001 90088 11774 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.

Also enabling you to make your shopper research more effective is the feature ‘Sharpen your shopper research’. The feature captures the views of shopper research expert, and they dole out some interesting tips that will help you pick out the inefficiencies prevailing in your shopper research initiatives.

Subscription for one year : Rs. 1200/For Nepal & all other countries : $ 190 by air All subscriptions are to be pre-paid. The claims and statements made in the advertisements in Point-of-Purchase are those of the Advertisers and are in no way endorsed or verified by Point-of-Purchase.

Along with these features, we bring you the usual dose of instore excellence. Don’t miss out on two very interesting instore activities, that of Himalaya Face Wash and Oreo. Read the feature ‘making it large in stores’ and ‘Oreo in motion’ to know what’s the latest buzz in the bazaar. With all this we also bring you some international and indigenous wisdom in form of columns and articles.

For Subscription - India : email: subscribe@vjmediaworks.com

So turn on to a better last mile! Happy Reading!

EDITORIAL ADVISORY BOARD

Cheers!

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

Vasant Jante

Lloyd Mathias, President & CMO, Tata Teleservices Ltd Manish Shukla, Managing Director, Retailscape Rahul Saigal, Vice President - Retail, OgilvyAction R. Kannan, President, RAMMS

May 2012

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Contents POP Parade Column

Damodar mall

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Volume: 7

Issue: 10

May 2012

6

Shopper Marketing

Tracylock 16

Brand Stand

Oreo 18 Himalaya 24

Trend

Shopper Research Trade Marketing

Technology Magic Box

Interview John Torella

Profile

Kruti Promotion

Case study Coca Cola

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18

29

30

33

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Technology

Wipro 34

Shopper Research

The Check Out inside the in-store experience

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International

Way to Shoppers Mind, Heart & Wallet 54 Cellular Levels 56 Toy Story 58 Worldview of Shopper Marketing 59

Resource

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60

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May 2012


POP Parade

Fair Presence Nivea’s Whitening Deodorant earned itself patron’s attention at retail with this well designed floor standing unit, displaying Nivea Whitening deodorants & roll-ons. Designed and fabricated by Brandmark Solutions this FSU has a branding of Anushka Sharma. The materials used are a combination of Sun-board and the storage is of wood. The visuals and the lifesized cutout of Anushka Sharma grabs the required attention without exerting much effort and surely highlights the feel of the tagline “GO SLEEVELESS ON HIM WITH FAIRER, WHITER UNDERARMS” n

Italy in-stores! Mutti, the leading Italian manufacturer of tomato based products launched its pizza and pasta sauces in India by the CEO of Mutti worldwide, Dr Francesco Mutti. The company has created a special product which is crafted with premium Italian tomatoes, Italian herbs and dressing to give real flavor of Italy. DY Works has developed, fabricated and installed innovative FSU which showcases Francesco Mutti Pasta and Pizza Sauce SKUs by bringing alive the Italian heritage story. The inspiration was the Italian architecture of bridges and arches. The incorporation of the gondola within the design focuses on the brand now coming from Italy to India. The FSU was 3x3x5 in size, and is designed to display 21bottles and 22 pouches. A shelf for the display is stepped and is accessible from opposite sides. MDF wood, vinyl prints, wooden platform, back painted acrylic moldings were used to build the entire display. The unit is easy to assemble. These units have been placed in Big Bazaar and Food Bazaar as well as select superstores in and around Noida n

May 2012

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POP Parade

Caution, Axe ahead! communicated in a larger than life way. The unit dons a yellow color and has a fresh look with its high end finishing and high visibility. The visual of girls attracted towards the fragrance represents the core essence of brand. Taking forward the communication, a table top display and AXE tester hanger is also designed to complement the sale process. The concept and design of the unit has created great attraction amongst the visitors thus increasing the footfalls for the brand. The display made of MDF material has three spacious divisions on both the sides that can hold up to 120 cans. The cracking effect on transparent self adhesive vinyl beneath the prominent unit blends with floor and enlightens the powerful impact of the FSU. The FSU & testers have been deployed in malls and stores across India. The FSU surely breaks through the clutter and is the brainchild of Walnut team n

Axe, a leading deodorant brand from the stable of Hindustan Unilever launched its new ‘extra strong’ variant with a word of caution at retail. With an aim to have a visibility element at retail which is readily apparent to the shoppers and emphasize the caution factor HUL had Walnut Advertising, conceptualize and create this interesting FSU. Thus Walnut Advertising designed a FSU which had a Caution board is used to indicate and to bring in peoples notice, conditions ahead using the same prop, the message of Powerful Fragrance in Axe is

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May 2012


POP Parade

Spotless visibility! Garnier launched itself a new product which has 3 in 1 application edge. This fairness cream can be used as a face wash, scrub and a mask and claims to make skin spot free. With this proposition the brand introduced its product at retail riding this FSU. Made of MDF structure and the shelves are made of acrylic. Adding to the visual quotient is the sun-board cut-out of a Dalmatian puppy as the footer. This one was spotted at Spencers, Mumbai n

Happiness Stationed Coca cola, one of the leading Cola reinforced itself at retail with this simple yet suave FSU. Donned in its brand color Red, with a steel grey combination the FSU is made of MDF wood and the header is the logo made in milky acrylic. The FSU stacked the two liters SKUs of Coca-Cola. This one was found refreshing shoppers at Big Bazaar, Malad n

May 2012

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POP Parade

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Mother’s touch On the account of Mothers day, P&G struck the emotional chords and created a gifting opportunity at retail with this FSU. Bringing all its female personal care products in one FSU, P&G prompted the shoppers to gift their mothers a thank you, by buying P&G products and stand a chance to win a two carat diamond and an assured Rs. 100 discount coupon. This was communicated through an FSU made of MDF wood, and clad in vinyl prints. The visual components have Soha Ali Khan with her Mother Sharmila Tagore depicting the bond n

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POP Parade

A refreshing Shake Nescafe, this summer season promoted its ‘shake it & make it’ cold coffee ranges through this really attractive FSU. Made of a wood structure and sun-board cutouts cladding it, the FSU has enticing visuals with the brand ambassador Deepika Padukones cut-out along with a splashing glass of coffee and ice around it. The sight was refreshing shoppers at Spencers, Mumbai n

A visibility tonic! A leading tonic water brand, Schweppes made itself at Spencers, Mumbai through this simple and functional parasite. Made of plastic the parasite has the logo of the brand as the header and the strip is cut in a way to hold the SKUs. This was placed at varied categories of the retail store n

May 2012

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POP Parade

Natural Nudge Johnson & Johnson adds to its baby skin care range, a Johnson’s baby natural oil and launches it at retail across India. Johnson & Johnson with the help of Brandmark Solutions launched their baby natural oil with the goodness of olive oil with the tag line ‘Roz Maalish Karo Khhub Badho; Olive Ke Gunon Se Yukt’. Designed like the product itself this pleasing & eye catching CDU is made up of compact and light materials like Kappa board displaying their 50ml & 100ml packs at 2 levels. These Counter Display Units were deployed at most of the general trade outlets across India n


POP Parade

Oreo takes a bus Cadbury Kraft vintage in its ways yet again creates an attractive in-store presence for its brand Oreo; a life size bus display unit. The display is conceptualized and fabricated by Resync attracted shoppers at Spencers, Mumbai. The display is made of eco-friendly corrugated board and the graphics are printed using eco-solvent digital technology on vinyl. The highlight of the FSU is that as a structure it can be transported in a completely flat state, thus making it functionally viable n

May 2012

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POP Parade

Blue Burst Nestea, an iced tea premix tempted the shoppers in this scorching heat through this fresh & blue FSU. Made of MDF wood and vinyl prints the FSU is clad in the product’s signature color and the header is a cutout of a tea leaf with the logo on it. This one was spotted at Spencers, Mumbai n

Treat for the eyes! Britannia launched its new Treat range of biscuits at retail with great fervor. Creating a feel of a children’s fair the brand deployed a display which looked like an ice-cream trolley. Donned in shades of pink, the header looked like a frilly cover, and the display was covered from all four sides with the branding i.e. the logo and the snapshots of the product with the tag- line ‘pick it, lick it’. Sun-board was used to clad the bin which stocked the product. There were promoted along with the display, they sampled the product and induced trial purchase. This one was spotted at Spencers, Mumbai n

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May 2012


Column

Retailing ‘Green’ Habits! dawns that we are living on a gradually warming planet where resources are getting scarcer.

Damodar Mall, Director – Food Strategy, Future Group

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t the bottom of my children’s wardrobe, there is a large drawer. It is used to store old clothes and plastic shopping bags collected from the various stores around the city, to be reused when the need arises. In the pantry next to the kitchen, there is a large plastic carry bag in which we stuff plastic pouches of varying sizes and plastic grocery bags. These are used as trash bags or for anything that needs to be stored in a pouch. Last Sunday, we ate delicious parathas at lunch which, I then discovered, were made from the leftovers from the Friday dinner party. At mealtimes, we exhort our children to finish what’s on their plate. Every day the old newspapers and magazines are neatly stacked in separate heaps in a corner of our apartment. These stacks are diligently sold to the ‘raddiwala’ for a couple of hundred rupees, every month.

Waste and modernity are almost synonymous, it appears. Modernity is accompanied by convenience, which is almost always derived from habits that are wasteful. Fortunately, in India, we are still not fully ‘modern’. We still believe in simple and thrifty living, and don’t mind putting in effort to propagate such a lifestyle. Not our children. With the onslaught of new age influences, they are becoming more and more distant from such habits and consider them old-fashioned and ‘fuddy-duddy’. Fact is, many times, they don’t make sense in their current form. In the last ten years modernity has wrought many changes in India. Entertainment, telecommunications, holidaying, fashion, retail have all entered a new phase. The old way of

We give all these activities space in our homes and time and attention in our lives. They are our way of living. We don’t call them reducing food waste, segregating trash for recycle and reuse, reducing our carbon footprint, green living and so on. We don’t give these activities any name because they aren’t separate from the rest of our lives. These new terms have emerged from the West where hugely wasteful societies are struggling to change habits and practices as the realisation

May 2012

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doing things in all these sectors have been transformed. Will the traditional ways of handling waste also be simply discontinued as our children enter the modern age? If so, will it not be a calamity for India? Already pollution is rising to dangerous levels. Discarding the natural tendency towards thrift in favour of a more ‘modern’ lifestyle will increase it even further. So while India has no choice but to embrace modernity, there is a choice we can make to retain some good practices, while integrating them into a modern lifestyle. Modern retail in India has been a catalyst for change. It has transformed many things urban Indians are doing, rapidly. The way we discover fashion, buy clothes, toys, even the humble cauliflower, has changed dramatically. Can this modernisation in shopping habits be somehow linked to going ‘green’?


Column

Unlike in the West, we have a headstart. We don’t need to reinvent completely or think up new recycling models. The entire gamut of ‘good and green’ customer habits is already woven into the fabric of our society. They just need to be rekindled, protected against obsolescence and adapted to the way in which society is emerging. For instance, can modern retail find a way of modernising the traditional raddiwala, just as it did the fashion and grocery stores? It should not be too difficult. If customers are given easy and comfortable access to recycling outlets, they’re going to adopt them within no time. How hard would it

be for supermarkets and department stores to persuade customers to sell their old clothes, newspapers, CD players, CPU’s, and make it look like the ‘in’ thing, thus turning it not just into a one-time marketing gimmick but a habit? Can the delivery trucks that bring goods to the stores be used to carry back newspaper bundles, plastic waste, old clothes and other recyclable items to the warehouses on their return trips, thence to be shipped to recycling factories, at a profit?

Can retailers lead the way in making the use of jute and cloth shopping bags become chic and a sign of modernity? Can they find a medium by which our customers can say ‘no’ to plastic without any major inconvenience to them? There are many such ideas waiting to be actualised. In this instance, there is no ready-made model from the West that can be copied. There is no need to. We must develop our own ‘social technology’ for conserving resources! our customers can say ‘no’ to plastic without any major inconvenience to them? There are many such ideas waiting to be actualised. In this instance, there is no readymade model from the West that can be copied. There is no need to. We must develop our own ‘social technology’ for conserving resources! n

Can retailers lead the way in making the use of jute and cloth shopping bags become chic and a sign of modernity? Can they find a medium by which

Reach the author: Mr. Damodar Mall on Twitter, his Twitter handle is - @damodarmall

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May 2012


Shopper marketing

TracyLocke steps in! As shopper marketing as a concept and practice gains traction in India, we have the leading global shopper marketing agencies setting foot in the country. The latest entrant in the Indian shopper marketing terrain is TracyLocke one of the most awarded shopper marketing agencies of the world has partnered with DDB Mudra Group and planted its roots here. We chat up with Pratap Bose, COO, DDB Mudra Group about this venture. Reena Mehta DDB MudraMax, we knew we had the perfect fit. We look forward to delivering to our clients a unique brand of shopper marketing relevant to each segment of the Indian market. Additionally, we hope to share proprietary marketing tools that we can take from India to the rest of the world.”

Pratap Bose, COO, DDB Mudra Group

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racyLocke, part of the DDB Worldwide Network, fits into the DDB Mudra Group in partnership with MudraMax, India’s leading integrated engagement and experiential marketing agency and makes its entry into India. Commenting on the same Pratap Bose, COO, DDB Mudra Group says, “Yes! We have launched TracyLocke in India; it is one of the best shopper marketing companies across the globe. TracyLocke is a part of the Omnicom/DDB Group worldwide, although the tie-up isn’t based on the fact that we share the parent company, but on the aspect that it complements our offerings in the retail and trade marketing space. We will position TracyLocke as the exclusive retail and shopper marketing agency.” For TracyLocke India is the perfect gateway into the Asian market, adding on the same lines Jim Sexton, Global Chief Marketing Officer of TracyLocke says, “Once we saw the level of retail expertise and comprehensive knowledge of the India consumer and shopper at

May 2012

TracyLocke in India will be heavily concentrating on the retail & shopper marketing side of the story because shopper marketing as a concept is relatively new in the country. “To begin with we will concentrate on shopper insights specific to categories we work in, because in our view you it is too ambitious to aim to be an expert in every single category for shopper marketing.” indicates Pratap.

“The entry of TracyLocke complements the DDB MudraMax “feet-on-the-street” strengths and given our huge footprint in India, I believe that the TracyLocke India model will certainly add huge value to both our global and retail brands.” Thus for the first six months all the efforts will channelized towards – l

Mining of insights

l

Modeling of data

l

Data analytics

l

Creating a dashboard which is user friendly for clients to use

Post which shopper marketing goto-market is something that the agency will have a strong support in, elucidating on the same lines Pratap says, “I think we have a huge advantage over other agencies because we

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already run a large media operation therefore consumer trends can be derived from therein. Further on we also have a strong implementation team in the form of our rich trade marketing arm.” Although even with the existing support TracyLocke in India is planning to have a team of 15 people exclusively for shopper marketing. Currently TracyLocke’s global roster of clients include some leading brands such as HP, T-Mobile, Starbucks, Johnson & Johnson, Gatorade, Tropicana, PepsiCo, Sony and Unilever’s Lipton. TracyLocke India will be managed by Pratap, “The entry of TracyLocke complements the DDB MudraMax “feet-on-the-street” strengths and given our huge footprint in India, I believe that the TracyLocke India model will certainly add huge value to both our global and retail brands.” claims Pratap. While this happens we also know that shopper marketing in India is still in its nascence does a question to ask here would be, is it a viable idea to start a shopper marketing agency in these times? To which Pratap says, “Yes! Shopper marketing in India is surely at a nascent stage, there are CMOs who don’t get shopper marketing, there are some who have it as a niggling thought but either doesn’t have the bandwidth or the conviction. But then the onus lies on any and all shopper marketing companies to make them aware of how will it benefit their brand. Also India is a country where shopper marketing will be of utmost importance due to the varied formats it has.” n


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Brand Stand

Oreo in Motion It has always been a challenge for the FMGC companies cultivate and maintain loyalty among shoppers for their brands. With so many new brands coming in the light, the shopper is bound to be a flirt, in here what works is the in-store charms a brand is about to pull. For instance we have Oreo from the house of Cadbury Kraft following it’s ‘love interest’ i.e. the shoppers literally. Point-of-Purchase delves into the details of this in-store gig. Fairy Dharawat

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ampling, the age old trick of wooing shoppers and inducing trials just got better. Cadbury Kraft known for its outstanding shopper marketing efforts undertakes yet another interesting in-store initiative. With the core communication objective of promoting Oreo by the way of sampling and to create a surprise element for shoppers coming in for purchasing their household items, Cadbury Kraft commissioned Hyperspace, part of the Posterscope Group to build around this brief. Thus owing to this brief Hyperspace zeroed onto the idea of making a “larger than life” sized Oreo biscuit dipped in the glass full of milk in a manner milk splashing out of the glass aptly going with the tag line of Oreo’s Twist-Lick-Dunk. And this beautifully designed display was further spiked with a moving factor. The entire unit was placed on a gondola which moves with the help of the remote control operated by the

Promoter. The size of the moving unit is 3ftx3ft with a height of 5ft, made up of fibre, MDF, glass, acrylic & digital print pasted.

Haresh Nayak, Managing Director, Posterscope India

May 2012

Sharing the creative thought process that went in this initiative Haresh Nayak, Managing Director, Posterscope Group says, “Considering the design and the shape and the objective of the unit we decided the material should be such as to give a realistic impact of the Oreo splashing out from the glass of milk which could have not have been achieved without using fibre. For communication of the product price, attractive branding was done and keeping in mind the space in the retail outlet the base of

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the moving unit was made in circular shape and without any sharp edges so that it does not hurt the shoppers.” As the brief was product sampling and also our previous experiences clearly showed that the shoppers are not too keen on manual sampling rather they are more interested in automated stuff. Hence, vending machines are more appreciated nowdays. “The concept of a robot sampling oreo comes 1st in our mind but as it was not fit for the brands so we convert the robot to oreo glass & biscuits.” Haresh further adds. The technology of ‘moving billboard’ is patented with Posterscope


Brand Stand weight, so customized circuit has was made & tested several time.” Three such units have been made so far and deployed at Metro Cash n Carry and Spencers across Mumbai, Delhi and Bangalore. The response is very encouraging & receptive and has helped the brand increase sales and among the kids especially, it has really created the excitement seeing a large Oreo unit moving around the store. Off-takes have surely increased and sampling also received great response. The shopper of today wants an experience that can elevate their mood. This new initiative is different and admirable worthy n Worldwide and after successful executions in Europe; the concept was introduced in India for Danone & Mother Dairy, before the same was presented to Kraft-Cadbury. The remote controlled moving unit was fabricated and manufactured within 15days f lat, of which the top fibre

display unit was done in 10days. Hyperspace’s creative & technical teams were continuously monitoring the situation. Yet this process wasn’t bereft of challenges sharing them Haresh says, “The main challenge was making a remote-controlled unit which can carry more than 100kgs of


Trend

Sharpen your Shopper Research! Moohlas are being spent behind decoding shoppers, Shopper research has sure risen to significance but as we pump in the monies, we also fight the many hazards that threaten to eat up the money. Right from wastage and spillover during research, to the risk of ending up with unyielding insights. Providing a solution to this plight we have some Shopper research experts hailing from leading research organizations. Read to know the tactics for effective shopper research. Reena Mehta

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hen it comes to winning shoppers in this highly competitive scenario actionable insight is the key that ensure effective returns. Comprehending the crucial role of the same, we quizzed leading shopper research experts on three simple turfs i.e. ways to ensure actionable insights, tips to minimize spillovers & wastage in research and finally the tactics to identify and reduce the gap between what shoppers think they do and what they actually do. And what we got was some really interesting approaches and strategies to weave effective shopper research. How do you as a research company while doing shopper research plan such that the insights generated are actionable? Research Organization

Their View

TNS

“We religiously follow a process called I-CUBE: Immerse, Investigate, Imagine.” Says Tara Prabhakar, Development Director, TNS Retail & Shopper. Immerse is the process of spending time understanding the client’s business and in the case of manufacturer clients, understanding their relationship with their retail partners. Very often, this is about understanding the category-brand-outlet dynamics and each stakeholder’s (retailer, manufacturer) desired outcome from the research – doing this helps us understand what in-store levers our clients can influence for maximizing in-store competitiveness and growth. Investigate is the process of getting inside the mind and into the shoes of the shopper through a mix of techniques such as people watching, interviewing, videography, eye tracking, etc. It is not just about what shoppers do but also about providing our expert opinion based on several other studies of what retailers are doing. Very often, shoppers give us only part of the data required to answer the business questions; the rest has to come from the agency’s consulting mindset.

Tara Prabhakar, Development Director, TNS Retail & Shopper

Ipsos

Imagine is the part of the research that makes the insights actionable. It is done via an insights-to-action workshop that we run for clients after the study has been done. The focus here is to use the insights to visualize in-store solutions in the areas of adjacencies, layout, promotions, packaging design, assortment rationalization, media, visual merchandizing, sales training, etc. It is this step that makes us different from other agencies as this requires a deep understanding of the retail business (and not just shoppers). “Typically, shopper research tends to go too broad and macro, covering almost everything pertaining to the shopper. It is therefore critical to understand, as clearly as possible, the specific actions or decisions the Client intends to take. This helps focus the research better, and make the outcomes actionable. For example, is the decision likely to be around merchandising planning? Is it to understand adjacencies? Or is it to evaluate in-store promotions / deployments? The design, including the type of stores selected, the choice of data collection methodology etc. will depend on the key business problem the Client wants to tackle.” Highlights Rajesh Nair, Executive Director, Marketing, Ipsos in India Where possible, the data collection should be through a combination of observation (including nonintrusive technology), exit interviews, and shop-alongs. This makes the data collection possible as the shopping takes place. Generating data real time helps actionability a great deal.

Rajesh Nair, Executive Director, Marketing, Ipsos in India

May 2012

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Trend Tips to minimize wastage while doing shopper research Research Organization

Their View

GFK

a. Avoid a-typical shopper b. Choose a good mix of different shop-type (e.g. Modern format vs Traditional trade) c. Decide on optimum timing of research (e.g. avoid lean period) d. Have a clear idea of the location of research e. Have a clear understanding of clients decisions Shares Kalyanmoy Chatterjee, CEO, Gfk Mode Pvt. Ltd.

Kalyanmoy Chatterjee, CEO, GfK Mode Pvt Ltd

Ipsos

“It is critical to have clarity about the decision context, which helps the design and data collection very focused and specific. The choice of outlets, the selection of neighborhoods, the choice of day (weekday / weekend; peak day / lean day), choice of day-part (morning / afternoon; peak hour / lean hour) etc. will have a bearing on the footfalls. The research gets efficient in shops and during days and hours where there are adequate footfalls of shoppers.” Suggests Rajesh

TNS

Shopper studies can very easily turn into large studies with an excess of information that is not immediately usable unless you work with specific client questions: 1. The first step is to question clients on their specific needs when they say they want “shopper understanding” – for example, do they want to know how shoppers decode VM, how best to utilize sales staff or improve the sales experience, what packaging options work best in the store, what category adjacencies and promotions can improve trial of a new product…etc. 2. The next step is to prioritize the information needs on a 2x2 matrix (urgency-importance matrix) to ensure that we focus on the key questions. This also ensures the study is time and budget efficient and actionable. Next, hypothesizing on the outcomes (vis-à-vis the objectives) and mapping data to hypotheses – to ensure we avoid duplication in data collection. When we avoid duplication, we collect cleaner and smarter data. Rima Gupta, Executive Director, TNS

3. Finally, piloting the process and taking stock at regular intervals of the fieldwork – This ensures that we weed out the inefficiencies (for example, drop certain questions / parameters, reallocate observers across the categories / store sections, adjust camera angles and numbers based on where the action is / or isn’t…) and streamlined data collection means faster project turnarounds. Indicates Rima Gupta, Executive Director, TNS.

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May 2012


Trend Highlight the ways to identify and reduce the gap between what shoppers think they do or say they do and their actual behavior? Research Organization

Their View

Ipsos

“Direct observation, use of technology, and real time data access helps address this to a great extent. To see the extent of over (or under) claims in behavior, a comparison can be made by building a household component of interviews amongst the similar profile of shoppers that are intercepted / observed in the shop.” Rajesh elucidates

TNS

Use solutions that work at two levels – a. help unlock memory blocks / improve articulation and b. help circumvent posturing. “We do the former through ‘memory recreation techniques’ that are specially focused on helping people remember not just what they did (which is often different from what they say they did) but also the context in which they acted, thereby revealing the motivations and the triggers for the behavior.” Explains Rima. “Circumventing posturing is done via technology – we use sophisticated eye tracking equipment, navigation tracking equipment and video cameras to capture shopper behavior, including eye movement. This is something that is useful to overcome deliberate obscuring of actual behavior and is sometimes used to challenge shoppers so they are more accurate about what they did in-store and why. The other way to do this is to use simulation or testing various options at the store in terms of planograms / layouts, or even packaging. This can be done through virtual store / shelf solutions or real stores / shelves. The former allows us to check more options quickly. Given our vast experience around the world in using technology-based solutions, we are able to actually get into the minds and shoes of shoppers.” Entails Tara.

Gfk

May 2012

“Different tools and techniques are used in Shopper research to understand shopper behaviour. Physical observation of behaviour in the shop floor, either by an observer or through cameras strategically placed in the shop often gives more accurate reading than asking questions.” Suggests Kalyanmoy.

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Brand Stand

Making it Large In-Stores! Himalaya Drug Company has managed to gain a leadership position in the highly competitive category of face wash segment which is still in its nascent stage in India and promises a lot of potential. The company recently became India’s largest selling and biggest face wash brand. In order to celebrate this milestone Himalaya decided to ‘make it large’, literally, in-stores. Pointof-Purchase brings you the details on this record breaking in-store visibility. Fairy Dharawat

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he Face Wash segment is valued at Rs. 688 crore, and its trade includes both Modern and General. The category is still in its nascent stage with newer trials and innovations driving it, and is also characterized by intense competition with both national and international players and all major personal care companies aggressively trying to make the most of the potential through promotions, new concepts and markets. Amidst this ambush, Himalaya has managed to earn itself an overall market share of about 14%. In modern trade in particular it is a notch higher, pegged at 20%. “As a major player in this category, we have focused on building our core proposition of ‘Neem’. Within modern trade we have focused on raising awareness for the category, induce trials and simultaneously focus on up-gradation,” explains Sandeep Ghoshal, (Trade Manager- Marketing), The Himalaya Drug Company. According to the company, its Neem Face Wash is a soap-free herbal face wash, which gently removes

Sandeep Ghoshal, (Trade Manager Marketing), The Himalaya Drug Company

May 2012

impurities, unclogs pores and prevents pimples. The face wash is reportedly enriched with nat u rally- der ived ingredients like Neem and Turmeric - time-tested natural ingredients that keeps acne at bay. The Purifying Neem Face Wash is also reportedly the largest selling face wash in the country, with a market share of 13.8% in modern trade continuing to dominate the Face wash category. Elaborating further on this, says Sandeep, “In Modern Trade, Himalaya’s Purifying Neem Face Wash is the single biggest variant and we wanted to draw the attention of the shoppers to this fact. For this, we decided to create an exciting display that would highlight the core message of being the biggest face wash brand in the country. We decided to celebrate this by creating India’s largest instore display for the product and get it certified by the Limca Book of Records. The activity was all about celebrating a winning product and a winning team.” The objective of the activity was to create a clutter breaking display that would give excellent visibility to the product, increase curiosity amongst shoppers and of course, exponentially increase off-takes. 24

The design aspect of the display was very simple – create a giant replica of Purifying Neem Face wash. Thus, the result was an in-store display which was 17 feet in height, 11 feet in width with a base of 5.3 feet in diameter. “The size of the display along with the buzz created around the unveiling helped generate interest and visibility. Bollywood celebrity Nargis Fakhri unveiled this display and the event was attended by the media and a whole lot of shoppers. We also received a provisional certificate from the Limca Book of Records for developing India’s biggest in-store display,” highlights Sandeep.


Brand Stand The materials used to create this structure were MDF, metal fabrication and vinyl printing. This in-store display was a f loor to ceiling structure with nine shelves. Shaped like the Purifying Neem Face Wash tube, this display had the capacity to hold over 3200 units. “We chose Delhi as the market for the activity because Delhi (including NCR) is the biggest Face Wash market in the country, in terms of both General Trade and Modern Trade. We decided to conduct the activity in Big Bazaar based on the fact that Big Bazaar’s Delhi/NCR store is one of the highest face wash sellers in the country in Modern Trade,” Sandeep explains. While the design and concept was developed internally at Himalaya, Ekulid Brand Solutions Private Ltd was the agency-cum-vendor manager for the activity. In a scenario where even the most simply designed POP displays find it difficult to make it to the shop f loor due to retailers’ hesitance, an activity

like this sure had to go through a slew of challenges. Talking about it Sandeep says, “We faced several challenges right from conception to execution. This was a novel idea since it had never been attempted inside a store before. On account of this, no retailer was willing to have it installed inside their store, since a huge display like this takes up a lot of space and hence might inconvenience the shopper. The first challenge was obviously to convince the retailer. Since we had finalized the store based on tertiary data, the next challenge was to find space in the store that would allow us to make a unit big enough to be entered into the Limca Book of Records.” Adding further he says, “The next challenge was to find a vendor who had the resources to create something of this size. During the fabrication, there were numerous changes to the structure/materials to make it sturdy and as lightweight as possible. The final challenge came during the

execution, where the height of the structure stood at 17 Feet and the ceiling was at 18 and putting together on the structure with 1 Feet to spare was a real challenge. The team worked together with dedication to overcome all these challenges and it was a sheer joy to see the structure on the final day.” This activity has had tremendous short-term as well as long-term impact. First, it helped reinforce the dominance of Himalaya’s Purifying Neem Face Wash, creating hype and awareness. Secondly, it strengthened relations with the retailer. The activity resulted in a huge spike in sales – over nine times the monthly average. With this Himalaya truly made it big in the in-store space n

. LTD

May 2012


Trend

Tackling your Trade! The eco system of brand marketing has one crucial aspect –the Trade, which includes the retailer and others who are involved in supplying your product. The success or failure of a product or brand depends on how well the trade positions your brand. Here’s where trade marketing enters. And there are agencies, which help brands woo their trade better. Point of purchase delves deeper into this. N. Jayalakshmi

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hile Trade Marketing as a concept has become quite an integral part of the brand marketing DNA, the concept sure has morphed, changed and had an overhaul owing to the changing times and dynamism of Indian retail. We thus probe this topic with a fresh outlook and quizzed some leading agencies who have built a strong forte in providing trade marketing services. We started off from the very definition and went on to know what they as agencies have been doing in this space for their clients. Read on to get an interesting account of Trade marketing. Trade marketing can be defined in many ways. According to Gaurav Pathak, COO, Solutions India, it is “a brand marketing function that is focused on marketing to your supply chain rather than to consumers”. Says he, “It is about increasing the demand of a brand among the trade eco system (wholesaler, retailer and distributor). It’s about finding out how the retailer thinks and discovering what motivates him, just like consumer marketing targets the consumer, mapping the consumer’s behavior.” And as Gaurav says, essentially this marketing effort is to motivate the

Gaurav Pathak, COO, Solutions India

December 2011

Sameer Mehta, VP, Multiplier, a trade marketing consultant, explains the difference further, “Product Marketing encompasses all “7P”’s of marketing, which are Product, Pricing, Place, Promotion, Packaging, Positioning & People and it covers the whole journey of the Product right from Production till consumption. Trade Marketing is targeted towards Trade Channel only that includes Trade schemes, Trade Loyalty Programs & providing marketing resources in the Trade funnel. In a way, Trade Marketing could be one of the Promotion routes for Product Marketing.” Rahul Saigal, Vice President, Ogilvy Action retailers to buy your products and it includes offering various tangible/ intangible benefits to retailers such as special display allowances and promotional support in exchange for additional display space. Trade marketing is about wooing those who position your product or brand so the end consumer can see it. Rahul Saigal, Vice President, Ogilvy Action explains the difference between consumer marketing and trade marketing by comparing them to the pull and push strategies. Says he, “All brand related activities or consumer related activities can be defined as pull. Trade marketing is push strategy, which is about pushing your brand effectively through various tactics and trade incentives such as loyalty programmes, special schemes etc.” He adds further, “There’s a point at which trade marketing and shopper marketing intersect, for e.g., if I give the retailer the display size and specifications for my brand and the message to be carried on it, and I pay him a certain amount for it, it is trade marketing. But the message carried on the product is shopper marketing and that is the point at which the trader and the shopper intersect.”

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Sameer Mehta, VP, Multiplier Trade marketing thus plays a very important role in determining how your end consumer or shopper perceives your brand or responds to it. Entailing the significance further Gaurav says, “Trade or channel is the foundation for every business and the Brands are investing significantly in Trade marketing to retain an edge over their competitors. Research shows that over 70% purchase decisions about a brand are made at the point of sale by the consumer. Visibility and Availability become critical therefore. Trade marketing aims to ensure that the channel partner is enthused enough to


Trend give the best/maximum shelf-share and stocking-share to the brand, and to even influence the consumer to purchase the brand. In a hugely competitive environment (say FMCG products), a retailer can still influence and change your brand choice.” Rahul couldn’t agree more, “Marketers and brands are spending a lot of money in trade marketing. Traditionally trade marketing has included special schemes for incentivizing the retailer and improving the trade margins. And it is very important because without the retailer support you can’t sell. No matter how much consumer marketing you do if the trade does not put our product upfront, there is no use. Your market share at the consumer level is an exact reflection of the market share of your working capital. So you have to incentivize the trade or retailer to buy more, and you have to make sure that he buys more from you, because that reflects your own market share.” No wonder then there are agencies now offering a bouquet of services to help brands build their relationship with the trade through strategic planning that can help break clutter and they help them do this by offering the right incentives to the retailer. For example, Solutions India focuses on helping brands strengthen their relationships with retailers and distributors by using innovative trade marketing programs. The agency provides brands with trade intelligence for compliances, execution & insights that help in bringing efficiencies & measurement to the client’s trade marketing strategy. Offering a case study Gaurav talks about their trade programme for HP, “We ran

Sreejit Nair, Managing Director, Integer India a very successful trade incentive and a display contest for HP for their inks category across the top 20 markets in India. The program was aimed at increasing visibility at the store level & pushing sales of slow moving SKUs. The entire program comprised of taking orders, tracking sales and providing incentives on score based on SKU sell out and display of merchandise at the store which was measured through mystery audit, with gifts ranging from FMCG products to even silver coins. The program was very well received by the channel community with approximately 90% participation and helped HP meet its objectives as well.” The Integer Group for its part uses the 3 Lens Model™ to help brands with trade marketing. According to Sreejit, it takes into consideration the three key stakeholders- the Retailer, the Brand, and most importantly the Shopper, “since an understanding of each is integral to creating a successful marketing and communication strategy”. The company offers service such as Channel Strategy & Design, Channel Incentives and Relationship, Channel Promotions, Channel loyalty programs etc. Another player in this field, Multiplier, offers end-to-end services across Trade channel including Sales Channel Management, Merchandising (Designing to Deployment), Retail Audit & Analytics, Trade Loyalty Programs and Shopper Marketing Insight. Almost all of them have different kinds of partnership arrangements with their clients who range across industries with the working terms depending on the category, the retailer, the brand needs and many other factors.

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Most of these agencies also focus on different kinds of strategies for their client depending upon the product category. Explains Gaurav Pathak, COO, Solutions India, “While the business dynamics may vary from category to category, the fundamentals of Trade Marketing of motivating the supply chain (Retailer, Wholesalers and Distributors) to buy and promote their products over competition remain the same. Trade marketing finally is aimed at influencing consumers through influencing trade partners. It may also vary a bit for FMCG, Consumer Durables and Services in terms of how we engage with the trade partners in terms of availability (stocking), visibility (shelf-share) & merchandising. Their difference though would be marked

“While the business dynamics may vary from category to category, the fundamentals of Trade Marketing of motivating the supply chain (Retailer, Wholesalers and Distributors) to buy and promote their products over competition remain the same. Trade marketing finally is aimed at influencing consumers through influencing trade partners. at multi-brand retail versus exclusive retail. For the first, the objective would be to outshine competition at the store and get into the consideration set of the consumer. This might mean giving better margins, display incentives, etc. At the second, trade marketing would aim to attract consumers, upsell & cross-sell. And accordingly, trade engagement & marketing would vary. This may mean giving funds for driving traffic to the stores and for consumer promotions at the store.” Considering these dynamics in trade dynamics, it is certainly not surprising that brands are looking to specialized agencies to strategize their position in trade. And it may not be long before trade marketing specialists become an industry by themselves n

May 2012


Technology

Make your displays VOICEferous! Every brand yearns for the much needed edge at retail, and thus a slew of retail displays with design intricacies go live on the shop floor, how about spicing them up further. While we have managed master the art of visual seduction through interesting designs, let’s add one more sense and make our displays VOICEferous with the Magic Box. Read on to know more. Fairy Dharawat on the Magic Box.” explains Girish Kabra, Director of Marketing, MFPA Artists Pvt. Ltd.

Girish Kabra, Director of Marketing, MFPA Artists Pvt. Ltd.

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n today’s world where all brands are vying for the attention of unimpressed shopper, Magic box, also known as Sensor Based Sound Device provides a new palette for the shopper of today who have become immune to many of brands charms. Visual seduction has reached its pinnacle, yes the amazing designs do lure your shoppers but then our shoppers are characterized by the fad factor. And soon what seemed to ‘wow’ them; fades in its effect. Thus to continually innovate in little ways becomes an imperative to maintain the edge in-stores. Helping brands add a new dimension to in-store displays is the Magic Box. With Magic Box any POP display becomes an intelligent sound enabled POP display. “A POP display is primarily made to draw the attention of the person close by and not for the person who is standing or walking far away. What we have achieved with our Magic box is that it detects the presence of a human being and instantly plays the sound which is

May 2012

This device was thought at MFPA Artists out of the observation that shoppers often remain unaware and miss out on the deals and offers going on the products at the store. Thus this device when fitted to your displays ensures that not a single person passing the display is missed out on being informed about the offer, and details of the product. The device is a small box which can be fitted in various ways, like on cut-outs, or shelves and also can be fitted on the walls. The other applications of the device also includes, it being used by certain high value retailers who get very few customers in their shop just to alert them that a customer has walked in or a security system. Sharing details on the technology Magic Box constitutes of Girish says, “The technology is very simple it is a combination of a MP3 player and an advanced sensor, equipped with Lithium ion batteries. It comes with a default 256 MB memory card and it can store many messages which will play one at a time. The sounds have to be recorded in MP3 format.” The magic box has been priced at Rs. 5000/- which in comparison to hiring a human assistance as a promoter which costs Rs. 10000/- turns out to be quite a deal. “We had launched the prototype at the India Fashion forum 2012 at Bombay Exhibition Centre in Mumbai and though we were in the corner of the exhibition we were having people who were turning their heads as they could not realize who is talking to them. The device is being introduced for the first time in the Indian Industry and hence it has just taken birth. Nothing like this exists

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“The technology is very simple it is a combination of a MP3 player and an advanced sensor, equipped with Lithium ion batteries. It comes with a default 256 MB memory card and it can store many messages which will play one at a time. The sounds have to be recorded in MP3 format.” and hence the future is promising and bright.” concludes Girish. The device gives you the creative leeway to add any kind of sound to your displays so it is an open field of imagination as to how you use this to tell your brand story and build further buzz in-stores. Cue in the voice of your brand ambassador, or create a thematic presence, and make your displays VOICEferous n


Interview

“It is training time for Indian Market” Point-of-Purchase managed to engage in a tete-a-tete with John Torella, Senior Partner, JC Williams a retail expert who has received the Canadian Marketing Association Lifetime Achievement Award for his work in the retail industry. We ask converse with him on Indian retail, retail branding and shopper marketing to know his views on this brewing phenomena. Here are some excerpts from our conversation. Fairy Dharawat Your perspective on Indian Retail As a part of the global trend and globalization of retail Modern Trade will see great progress in this country. So you can expect the biggest and the best to enter India. The large middle class here is a gold mine for retailers and thus international giants like Tesco, Carrefour, and Wal-Mart will strengthen their roots. They will first enter the grocery & food segment and then will tap the garment merchandise. I think this in many ways will prove to be beneficial for India in general as it will raise the bar for everyone. With them will come competition, new standards and change in customer expectations. Further on I think traditional trade in India will always be there and one can never replicate that, they are so service oriented, so local and so attuned to the customers no one can manage to duplicate that level of intimacy. So I don’t see this sector threatened and they will be a part of the Indian culture. Being a global retail expert and having seen it all, share with us some peculiarities of Indian retail vis-a-vis the world In my view the more things change, the more they remain the same. What I mean here is we start out local, go bigger add more portfolio stores with hypermarkets and with this huge size we lose contact with our customers. But on the contrary the strength o Indian retail is its closeness to the customers. And this I think should be preserved and maintained no matter how big the store becomes. Throw some light on the possible format innovations Indian retail will see The trend I see will be of Portfolio stores, which mean you, have one banner and varied formats under the same. For instance Tesco in UK has number of different store formats, like traditional supermarkets, large hypermarket, express, natural under one single banner

of Tesco. This approach does not see the market as homogeneous but as unique segments and accordingly tailor make the format. Consolidation of players is sure going to happen, who do you think will rise as leading players then It’s hard to say! A lot depends on the infrastructure support they have, the backend of the business is really the crucial part; thus early investment in infrastructure, backend support, talent, people, skills the crucial ingredients to survive. It is going to be a battle of talent; the skills needed in retail today are much more complex than they ever been. The complex skills include aspects like data, its analysis and its simplification into actionable insights. And here the data is about better understanding of customers and their complex needs. For instance young moms today have such complex needs they are required to feed the family, worry about nutrition, balancing the budget, look for fun & innovation and they are looking for help from retail to answer these needs. Thus we would have to do much more than putting the product on the shelf. Some tips on retail branding First and foremost, if you are not unique or special, you are commodity and thus inter-changeable. Thus be relevantly different, and have well trained staff, strong product knowledge, and empathy for customers. Remember brand is the essence of the enterprise, it is the very DNA. Shopper marketing where do you see it going The Indian market is the most complex of all, and with it is attached a huge potential of 250-300 million middle class shoppers which makes this place both a gold mine and a great challenge for shopper marketing. There are no easy

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John Torella, Senior Partner, JC Williams answers in India, thus when it comes to shoppers marketing – It is training time for the Indian market. What will help here is ‘collaboration’ between retailers and brands. Indian shopper for your is An ambitious shopper, they are focused, has strong sense of values. In my view the Indian shopper will react quickly to the new technologies as they see practical value in things and adjust accordingly. Your plans in India We have entered into a venture with RAMMS, wherein we will be the retail branding side of the marriage and they will be the shopper marketing strategist part. They are true professionals and I love their work. It’s like a marriage made in heaven as a client needs both a strategy on the fore front and an understanding of brand, and we together complete that. Would like to Signoff saying Don’t try to mimic brands try to find your own unique brand. Invest big on infrastructure and people n

May 2012


Profile

The Execution Edge While we have a slew of retail solution providers who have an edge when it comes to design and fabrication, execution is one area which more so remains to be a challenge. Kruti Promotions & Events Pvt. Ltd. (Kruti) is one such retail solution provider who has made execution their edge. Point-of-Purchase gets to know what makes this agency tick successfully. Reena Mehta

promotions l

School Promotions

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Specially designed events

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Product test marketing

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Exhibitions, conferences, seminars, dealer meets

From L to R Naveen Sharma, Sanjay Selukar, Pritam Kadam, Nikhil Pendalwar

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reating an effective reach in the Indian retail arena is sure a herculean task. The sheer scale both geographically and in terms of formats calls for a really strong penetration and presence. Brands are in constant need of a support system that helps them reach out to their widespread consumers. Kruti comprehending this need of brands has emerged as an ideal partner who will ensure that their clients’ retail endeavors percolate effectively across the length and the breadth of the country. Kruti partners with companies and/or advertising agencies in providing 360 degree solutions, encompassing promotion campaigns, events, marketing and brand activation programs. It has the resources to coordinate and consolidate the advertising and marketing needs of brands nationwide. “We have developed the ability to identify people; where and how best to talk to them and eventually how best to influence them. We constantly strive to deliver creative ways of brand interaction, ensuring that we reach consumers at every touch point. This we do by cohesively using our market knowledge and staff expertise.” shares Sanjay Selukar, Director, Kruti Promotions & Events Pvt. Ltd. While execution of retail programs is an area where many fret to enter, what is it that made Kruti take it up

May 2012

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Design, production of dispensing units, POP and POS material

Kruti has two sister concerns called as a forte? Sharing his answer and reminiscence the experience of early days Sanjay says, “When we started we had decided to test ourselves on multiple avenues and wanted to experiment, so we took whatever came our way as a challenge. In those initial days when we got into this business we realized that there are about more than twenty people in the market who can make a banner but to install those at multiple places there was no one. Thus Kruti started with a focus on implementation and has established itself in the area of execution & implementation, but now we have our own printing and fabrication unit and provide a one stop solution to the client for production and implementation.” Kruti Promotions & Events Pvt. Ltd. has amassed an invaluable experience of more than a decade. They have been providing a range of services that include: l

Consumer Contact program

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Merchandise Implementation

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Rural Marketing

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Modern Trade & General Trade 30


Profile is built through tie-ups with other companies. As for Kruti they have a large people force which exclusively works for them. “We have presence in 50 cities, and it is through this presence we have managed to create a network of 114 cities in India to ensure a seamless co-ordination of clients’ advertising and marketing needs.” Sanjay highlights. Kruti has 400 – 500 promoters working on a daily basis for different projects & clients. At any given time Kruti has the capability to mobilize more than 1000 promoters on Pan India basis (i.e. 40 – 60 promoters in a given city). The team at Kruti does much more than merely promoting the clients products at retail, they are synonymous to a sales representative of the brand. Explaining the same Sanjay says, “The fixed promoters we deploy are responsible for managing the shelf, generating purchase & release orders from the store and monitor the inventory. So directly or indirectly we also help our clients increase their sales at retail. At the same time we also take care of the visibility needs of our clients. We constantly update our clients on the space available at retail, and what they can probably use. Thus we have clients who give us standing instructions to use that space for branding.”

Rural Maximize Media Pvt. Ltd. and Karpenter. Rural Maximize is a dedicated division that caters to the rural marketing needs of the clients. While Karpenter focuses on design, production/fabrication, & installation of POP/POS materials, display stands/

racks window display, Signage’s, and facades. The core strength and uniqueness of Kruti, is its national presence. There are agencies who have a national presence but that usually

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Along with driving the promotional activities of the clients Kruti also provides retail visibility assistance and in-store media management. The strong presence also heightens the accountability factor, since the organization and its representative are physically present in the remote areas too, after installation if there are some amendments or repairs required the changes can be carried out without any hurdles. “We have a separate division to handle modern trade related activities of our clients. The reason for this skewed focus is that even the smallest of all brands are and want to be present at modern trade, heavily concentrating on this growing space. Our presence and

May 2012


Profile

hold there is in 90% of the modern trade stores like HyperCity, Big Bazaar, Reliance, Spar, and ABRL (More).” Sanjay elucidates. Kruti is operationally sound, and this has been possible due to an able team. The team at Kruti comprises of dedicated members, which includes strategists, event managers,

d e s ig n e r s ,   t e c h n i c a l / p r o d u c t i o n and field personnel. Each of their promotion associates are carefully chosen looking at their professional presence and enthusiastic attitude and further on they are trained thoroughly. “When we appoint people we deliberately send them out in the market, on shop f loor of modern trade outlets for at-least three months and ask them to learn the nuances of this trade through practical experience.” The core team of Kruti includes Sanjay Selukar who heads the organization, Nikhil Pendalwar head of Operations and Business Development, Naveen Sharma head of Modern Trade, and Pritam Kadam who takes care of the rural vertical. This impeccable implementation capability has helped Kruti gain a huge clientele; some of the big names from their list include Parle, ICICI Prudential, Raymonds, Marico, Future Media, Heinz, Godrej and many more.

May 2012

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Sharing what lies ahead Sanjay says, “Now we are concentrating at expanding in the rural markets where we help the client by deploying permanent POP solutions at the stores in rural India. We already have executed about 33,000 tinplates across rural India, through which we have covered more than 6000 villages. We also do rural campaigns and have 60 vans moving in India.” Thus with a shrewd focus on implementation, at modern trade and rural arena Kruti Promotions & Events Pvt. Ltd. stands out to be an ideal partner for achieving large scale and deeply penetrating retail endeavors. This surely is quite a burning need for brands today n


Case study

POP at its best! Globally there are many path breaking last mile initiatives that make a mark and take shopper marketing to new levels. This space is dedicated to those works of art that help shopper marketing evolve as a concept. This time around we bring a Case Study of a leading brand Coca-Cola which uses technology and emotions at their best to Vend Coca-Cola. Reena Mehta (With inputs from Archana Singh)

Vending Happiness

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he Coca-Cola Company and Ogilvy & Mather have created the ‘Cola-Cola Hug Machine’ to bring doses of happiness into the lives of people anywhere and everywhere. This regional initiative, which is part of “Open Happiness”, The CocaCola Company’s global marketing campaign, started in Singapore. People were pleasantly surprised to see a regular-looking Coca-Cola vending machine, with the words “hug me” in

large letters on the front. Those bold enough to embrace the machine were rewarded with cans of ice-cold CocaCola and left with huge smiles on their faces. “Happiness is contagious. The CocaCola Hug Machine is a simple idea to spread some happiness,” explained Leonardo O’Grady, ASEAN IMC Director, The Coca-Cola Company. “Our strategy is to deliver doses of happiness in an unexpected, innovative

way to engage not only the people present, but the audience at large. “Whether you were hugging the machine or experiencing the event online, our goal was the same - to put a smile on your face and share that emotional connection. Reactions were amazing… people really had fun with it and at one point we had four to five people hugging the machine at the same time as well as each other! In fact, there was a long line of people looking to give hugs – it was really heartwarming. ”

“Open Happiness,” a global creative campaign launched in 2009, invites people around the world to bring positivity, optimism and fun into their lives. At the core of the campaign the message is for consumers to open a Coke and share a little happiness. “We’re excited to work with The Coca-Cola Company in delivering what is really a very simple idea. All you need to do is give the CocaCola Hug Machine a hug and it will love you back, by giving you a free Coke. Something simple and engaging, that lifts people’s spirits and brings a smile to their face,” explained Louise Kuegler, Regional Business Director at Ogilvy & Mather Asia Pacific. Online platforms such as Facebook, Twitter, and even blogs were abuzz with videos and updates of the “Coca-Cola Hug Machine” on the same day. With the success of the Coca-Cola Hug Machine in Singapore, there are now plans to roll it out across Asia to bring the same happiness to consumers from other countries n

Credits Client: Coca-Cola Singapore Clients: Leonardo O’ Grady, Rommel Fuentabella, June Kong Dhanabalan, Stella Yap, Andrew Jeffrey, Shakir Moin, James Chin Agency: Ogilvy & Mather Singapore

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May 2012


Technology

Enabling intelligent data FLoW! Unavailability or segmentation of data has always hampered decision making among retailers. Understanding this plight of fellow retailers and wholesalers, Wipro has developed an application to assist business by using customer feedback. Himalaya Drug Company has managed to gain a leadership position in here, Wipro FLoW technology jumped into this fray as there was a requirement for rapid and precise trading transactions. POP gives you more details on this application and its influence on wholesalers and retailers. Fairy Dharawat

Mike Davies, Vice President, Wipro Retail Europe, Latin America and Wipros Global Oracle Retail Practice

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holesalers and retailers for long have had to reckon with huge levels of chaos with a lack of a proper system, haphazard pricing, unclear billing transactions, hard-to-decode shoppers and improper resource allocation. But all that may now be a thing of the past as Wipro Technologies presents ‘FLoW’ an Oracle-based Pricing, Supply Chain And Finance Management Solution for the retail sector. This application facilitates a comprehensive study of available stocks that helps in arriving at the right business decision. With the help of customer information provided by the application, retailers and wholesalers can now gauge expectations and reactions and support it with new decisions. FLoW has four modules which are pegged to benefit the retailers:

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Foundation data – A single point of information, for all wholesale/ franchise business attributes, like customer information;

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Helps in building the right wholesale/ franchise price. It is flexible, transparent and easy to use;

May 2012

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Supply chain supports the operations: Order, Supply and Replenish. Allows an integrated management with Retail business;

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Finance allows for financial control, offering invoice consolidation, royalties and fees management and accounting mapping;

Any new activity has huge repercussions on the business but with this application, Wipro promises to provide a comprehensive study of all the data required to create sound business decisions. According to Mike Davies, Vice President, Wipro Retail-Europe, Latin America and Wipro’s Global Oracle Retail Practice, “FLoW is being implemented as a solution attached with a service”. As today’s shoppers have more time constraints and they also have a different set of issues influencing their decision; thus their buying habits are getting harder to decipher. FLoW offers a guided approach to help retailers and wholesalers by providing information on the behavior patterns of the shopper of today and on what makes them tick. The solution also offers superior data visibility, needed for quicker and more precise trading transactions and billing. The accounts, royalties and fees management applications help retailers and wholesalers make decisions based on their resources. According to Mike, “The technology used to architect FLoW is a bolt-on module over Oracle RMS (Retail Merchandising System) so it uses the same technology as Oracle RMS. It shares the same database, application server, user interface and security, offering to the user an integrated view of the system. However FLoW by Wipro Retail remains independent. It accesses RMS information that is shaped as FLoW needs it.” Wipro is a tier 1 Oracle Retail Partner and one of the most successful integrators of Oracle Retail solutions.

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While deploying the Wipro FLoW technology, the retailer has to take into account all the parameters like the number of stores, volume of information and performance requirements etc which vary depending on the different infrastructural needs of retailers. Having contributed vastly in the diverse categories of Grocery, Fashion and Health, and having defied geographical boundaries, Wipro has a history of enriching shoppers experience and with these new applications, it has now gone one step further. The company’s focus now is to integrate legacy investments and future proof systems used to manage Operations, CRM (Customer Relationship Management), Shrinkage, ERP (Enterprise Resource Planning), Data Warehousing, Predictive Data Analytics and Price Optimization. “FLoW was recently implemented for a leading food retailer from Latin America and is being implemented on a generic retailer with specialized stores in Europe. After Implementing FLoW, customers increased their visibility and operational efficiency as users can now see and manage their integrated operations of retail, franchise and wholesale. This offers much more control over pricing, fulfilment and billing,” says Mike. Wipro’s strong partnership with Oracle has resulted in many new applications meant to ease the business of transactions. Well, it looks like a controlled retail environment that enhances shopper experience has finally become a reality, thanks to Wipro’s new application n


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Shopper Research

the

inside the in-store experience

The Checkout International 2012 Indian Shoppers IN THIS ISSUE s )NTRODUCTION s #HANNEL 0REFERENCES s 3HOPPING 0RIORITIES s )NDIAN 3HOPPERS !RE 0LANNERS s 3PENDING AND 3AVING s 3HOPPING /CCASIONS s /NLINE 3HOPPING s 2URAL 3HOPPERS s $OMINANT 3HOPPING "EHAVIOR s 3UMMARY OF &INDINGS

The Checkout India IS A SHOPPER STUDY DESIGNED TO UNDERSTAND MOTIVATIONS AND ATTITUDES RITUALS

AND OTHER FACTORS THAT INmUENCE SHOPPING 4HIS STUDY WAS COMMISSIONED BY 4HE )NTEGER 'ROUP )NDIA AND CONDUCTED BY )PSOS -ARKETING )NDIA IN 1

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Introduction 7ITH A POPULATION EXCEEDING BILLION )NDIA IS A LARGE AND DIVERSE MARKET The Checkout India ATTEMPTS TO SHED LIGHT ON RETAIL AND SHOPPING PRACTICES TODAY (OW DO URBAN AND RURAL )NDIAN SHOPPERS SHOP SIMILARLYˆAND DIFFERENTLY 7HAT ARE THE PREDOMINANT )NDIAN SHOPPING STYLES 7HAT NEW RETAIL PRACTICES ARE EMERGING IN THIS FASCINATING MARKET

The Checkout India covers geography and demographics as follows: A 2EGIONS I 5RBAN ! THE FOUR METROS WITH POPULATION OF -II 5RBAN " CITIES WITH POPULATION -III 2URAL )NDIA B &ORMATS 4RADITIONAL 4RADE AND -ODERN 2ETAIL C -ALE AND &EMALE !GES TO

Figure 1.0: Map of India and Sample Population Areas for Report

.OTE 2URAL )NDIA WAS COVERED VIA DISTRICTS AROUND 5RBAN ! AND 5RBAN " CITIES 3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY .

)NDIA IS A MARKET AT ONCE TRADITIONAL AND CONTEMPORARY RESULTING IN A RANGE OF RETAIL OUTLETS CATEGORIZED FOR THIS STUDY AS FOLLOWS Traditional Trade

Modern Retail

s )NCLUDES +IRANA 'ROCERY #HEMIST 0HARMACY s 3TOCKSˆ3TAPLE 'OODS 3PICES "AKERY

0ERSONAL #ARE (OUSEHOLD #ARE ETC s &OUND EASILY IN LOCAL NEIGHBORHOOD

s )NCLUDES 3UPERMARKET (YPERMARKET 3TORES s 3TOCKSˆ&RUITS 6EGETABLES 3TAPLES 3PICES

"AKERY 0ERSONAL #ARE (OUSEHOLD #ARE ETC s (AS AT LEAST TWO ELECTRONIC REGISTERS

2012 Â INDIAN Â SHOPPERS

Multi-Brand Specialty

s )NCLUDES STORES SUCH AS 0ANTALOONS

3HOPPERS 3TOP ,IFESTYLE 'LOBUS ETC s 3TOCKSˆ!PPAREL !CCESSORIES 0ERFUMES

4OYS (OUSEHOLD )TEMS

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Channel Preferences )NDIAN SHOPPERS HAVE A CHOICE OF MULTIPLE CHANNELS ACROSS MODERN AND TRADITIONAL FORMATS #ONVENIENCE VIA PROXIMITY TO HOME WINS OVER STORE ATTRIBUTES LIKE CLEANLINESS AND HYGIENE EASE OF lNDING PRODUCTS AND GOOD ASSORTMENT &REQUENCY OF SHOPPING VARIES BY CHANNEL -ODERN 2ETAIL IS LESS FREQUENTED DUE TO A VARIETY OF FACTORS INCLUDING LACK OF PERSONAL TRANSPORT

Proximity to home is the

#1

factor in selecting a channel.

Figure 2.0: Factors Influencing Channel Selection

Urban A

Urban B Proximity to home Cleanliness & hygiene

One-stop shop

Good variety, range of products

Urban A

Urban B

Cleanliness & hygiene

Proximity to home

Ease of finding products

Good variety, range of products

Quality of products

Cleanliness & hygiene

Urban A

Urban B

Good variety, range of products

Proximity to home

Ease of finding products

Good variety, range of products

One-stop shop

Cleanliness & hygiene

Traditional Trade

Modern Retail

Multi-Brand Specialty

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 1 3HOPPING BEHAVIORS FOR KIRANA STORE YOU WOULD LIKE TO VISIT 7HAT IS YOUR LEVEL OF IMPORTANCE YOU ATTACH WITH THE FOLLOWING STATEMENTS 1 3HOPPING BEHAVIORS FOR 3UPERMARKET (YPERMARKET STORE YOU WOULD LIKE TO VISIT 7HAT IS YOUR LEVEL OF IMPORTANCE YOU ATTACH WITH THE FOLLOWING STATEMENTS

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Channel Preferences (continued) 7ITH )NDIAN SHOPPERS MOVING SEAMLESSLY BETWEEN TRADITIONAL AND MODERN RETAIL CHANNELS BOTH CHANNELS WILL CONTINUE TO PLAY AN IMPORTANT ROLE IN THEIR LIVES 7ITH hPROXIMITYv AS THE NUMBER ONE FACTOR IN SELECTING A CHANNEL AND LOW PENETRATION OF -ODERN 2ETAIL AS ANOTHER FACTOR BOTH CHANNELS WILL CONTINUE TO PLAY AN IMPORTANT ROLE IN THE LIVES OF )NDIAN SHOPPERS !ROUND PERCENT OF SHOPPERS SHOP IN 4RADITIONAL 4RADE AT LEAST EVERY TWO WEEKS WHILE APPROXIMATELY PERCENT OF SHOPPERS SHOP IN -ODERN 2ETAIL ONCE A MONTH

Figure 2.1: Shopping Frequency by Channel

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 1 ) WOULD LIKE TO KNOW ABOUT THE OVERALL FREQUENCY OF YOUR HOUSEHOLD SHOPPING 5RBAN ! . 5RBAN " . 1 ) WOULD LIKE TO KNOW ABOUT THE FREQUENCY OF SHOPPING GROCERY HOUSEHOLD PERSONAL CARE ITEMS FROM A KIRANA STORE 5RBAN ! . 5RBAN " . 1 ) WOULD LIKE TO KNOW ABOUT THE FREQUENCY OF SHOPPING GROCERY HOUSEHOLD PERSONAL CARE ITEMS FROM A SUPERMARKET HYPERMARKET STORE 5RBAN ! . 5RBAN " .

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Shopping Priorities 1UALITY FOLLOWED CLOSELY BY PRICE IS THE MOST IMPORTANT CONSIDERATION WHEN SHOPPING 5RBAN ! SHOPPERS PRIORITIZE QUALITY OF PRODUCTS OVER PRICE ALTHOUGH THE DIFFERENCE IS MARGINAL COMPARED TO 5RBAN " SHOPPERS Quality wins over price with

60%

of shoppers saying it’s the most important priority when shopping.

Figure 3.0: Indian Shoppers’ Value Preferences

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 1 &OR EACH STATEMENT IN THE LIST PLEASE PICK A NUMBER FROM TO TO INDICATE HOW IMPORTANT IT IS TO 9/5 5RBAN ! . 5RBAN " .

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Indian Shoppers Are Planners )NDIAN SHOPPERS LIKE TO PLAN BEFORE THEY GO SHOPPING AND THIS INCLUDES MAKING WRITTEN LISTS lXING BUDGETS AND TAKING ADVICE FROM FAMILY AND FRIENDS (AVING WRITTEN LISTS IS MORE DOMINANT AT 4RADITIONAL 4RADE AND MORE POPULAR AMONG 5RBAN " SHOPPERS $ESPITE THE DIFFERENT PLANNING MECHANISMS SHOPPERS ARE DRIVEN BY IMPULSE ESPECIALLY IN THE CASE OF 4RADITIONAL 4RADE STORES Figure 4.0: Shopping-List Preparation

61% 44%

of Urban A shoppers set aside budgets, though only

make written lists.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 5RBAN ! . 5RBAN " . 1 (OW OFTEN DO YOU SET ASIDE A lXED PERIODIC MONTHLY QUARTERLY BUDGET FOR HOUSEHOLD SHOPPING 1 /F THESE OPTIONS PLEASE TELL ME HOW DO YOU GENERALLY PREPARE A SHOPPING LIST

Figure 4.1: Planned Vs. Impulse Shopping Of the people who prepare shopping lists across channels…

…how many make unplanned purchases?

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 5RBAN ! . 5RBAN " . 1 0LEASE TELL ME TO WHAT EXTENT YOU AGREE OR DISAGREE WITH THIS STATEMENT ) GENERALLY PREPARE A LIST 1 0LEASE TELL ME TO WHAT EXTENT YOU AGREE OR DISAGREE WITH THIS STATEMENT ) OFTEN END UP BUYING THINGS THAT ) DID NOT PLAN TO BUY

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Spending and Saving $UE TO LOW CREDIT CARD PENETRATION IN )NDIA )NDIAN SHOPPERS GENERALLY USE CASH FOR MAKING PAYMENTS #REDIT CARDS ARE MORE POPULAR WITH 5RBAN ! SHOPPERS AND USED FOR MAKING PURCHASES MORE FREQUENTLY IN -ULTI "RAND 3PECIALTY STORES ,OYALTY PROGRAMS AS A CONCEPT NEED TO CATCH UP WITH CONSUMERS WHO DON T SEE ANY SIGNIlCANT BENElTS FROM THEM $IRECT DISCOUNTS ARE POPULAR WITH 5RBAN ! SHOPPERS WHILE 5RBAN " SHOPPERS PREFER BUY ONE GET ONE FREE "/'/

Figure 5.0: Paper Vs. Plastic

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 5RBAN ! . 5RBAN " . 1 ) WOULD LIKE TO KNOW HOW YOU TYPICALLY MAKE THE PAYMENTS AT THE MOST USUALLY VISITED SUPERMARKET HYPERMARKET 1 ) WOULD LIKE TO KNOW HOW YOU TYPICALLY MAKE THE PAYMENTS AT THE MOST USUALLY VISITED MULTI BRAND SPECIALTY STORE

Figure 5.1: Preferred Saving Mechanisms Only

1%

of shoppers mentioned retailer loyalty cards as a preferred saving mechanism.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 5RBAN ! . 5RBAN " . 1 7HILE YOU ARE SHOPPING AT THE KIRANA GROCERY GENERAL MERCHANT STORE WHICH OF THE MONEY SAVING TECHNIQUES ARE YOU MOST LIKELY TO TAKE ADVANTAGE OF

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Shopping Occasions !CROSS 5RBAN ! AND " SHOPPING EXPENSES INCREASE DURING FESTIVALS /CCASIONS LIKE WEDDINGS AND PARTIES RANK SECOND FOR 5RBAN ! SHOPPERS WHILE BACK TO SCHOOL OCCASIONS RANK SECOND FOR 5RBAN " SHOPPERS 7ITH AN INCREASE IN EXPENDITURE DURING FESTIVALS AND BACK TO SCHOOL SEASON THERE IS AN OPPORTUNITY TO CREATE A CUSTOMIZED ANNUAL ACTIVITY CALENDAR THAT HELPS DRIVE EXCITEMENT THROUGHOUT THE YEAR

Figure 6.0: Special Shopping Occasions

17%

of Urban B shoppers say their expenses increase during back-to-school season.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Back to School Festivals

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 5RBAN ! . 5RBAN " . 1 .OW LET S TALK ABOUT EXPENDITURE DURING CERTAIN OCCASIONS ) WOULD LIKE TO UNDERSTAND HOW YOUR HOUSEHOLD SHOPPING EXPENDITURE AT KIRANA GROCERY GENERAL MERCHANT STORE CHANGES DURING THESE OCCASIONS

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Online Shopping /NLINE PURCHASING IS STILL IN ITS INFANCY IN )NDIA ONLY OF )NDIANS SURVEYED HAVE ACCESS TO A 0 # WITH AN )NTERNET CONNECTION /F THOSE WHO SHOP ONLINE TRAVEL IS THE MOST PURCHASED CATEGORY FOLLOWED BY MOVIE AND CONCERT TICKETS (OWEVER OF SHOPPERS SHOW INTEREST IN A PURCHASE OF APPAREL AND ACCESSORIES ONLINE 4RADITIONAL GIFTS ARE THE ITEMS )NDIANS ARE LEAST LIKELY TO PURCHASE ONLINE Travel tickets are the

#1

most purchased items online.

Figure 7.0: Online Purchase by Product Category

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 1 )N RELATION TO EACH PRODUCT CATEGORY WHICH OF THE FOLLOWING REPRESENTS YOUR ONLINE SHOPPING BEHAVIOR

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Rural Shoppers .OT UNLIKE 5RBAN SHOPPERS 2URAL )NDIAN SHOPPERS ALSO PRIORITIZE QUALITY OVER PRICE !LMOST PERCENT OF 2URAL )NDIAN SHOPPERS PREPARE A WRITTEN LIST WHICH MOST OFTEN INCLUDES THE PRODUCT CATEGORY FOLLOWED BY BRAND NAME AND NUMBER OF ITEMS TO BE BOUGHT 2URAL SHOPPERS ALSO SHOP ON IMPULSE WITH OVER PERCENT OF SHOPPERS MAKING PURCHASES OUTSIDE THEIR LISTS 4HE STOREOWNER PLAYS AN IMPORTANT ROLE AS AN )NmUENCER Figure 8.0: Shopping Priorities: Rural Shoppers

46%

of Rural shoppers prefer quality followed by price.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 2URAL . 1 &OR EACH STATEMENT IN THE LIST PLEASE PICK A NUMBER FROM TO TO INDICATE HOW IMPORTANT IT IS TO 9/5

2URAL )NDIA SHOPPERS ARE LOOKING FOR A GOOD VALUE WHICH MEANS THEY SHOP FOR PRODUCTS THAT OFFER GOOD QUALITY AT A FAIR PRICE

Figure 8.1: Preparing Shopping List

45%

of Rural shoppers make written lists.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 2URAL . 1 (OW OFTEN DO YOU MAKE A PLANNED SHOPPING TRIP FOR GROCERY HOUSEHOLD PERSONAL CARE ITEMS "Y PLANNING ) AM REFERRING TO PREPARATION OF A WRITTEN OR MENTAL LIST OF ITEMS THAT NEED TO BE PURCHASED

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Rural Shoppers (continued) 2URAL )NDIA MOSTLY RELIES ON LOCAL NEARBY 4RADITIONAL 4RADE STORES FOR THEIR SHOPPING NEEDS "UT LACK OF ACCESS TO THE -ODERN 2ETAIL FORMATS CREATES THE NEED TO GO TO THE BIGGER STORES IN NEARBY TOWNS OR AT VILLAGE FAIRS FOR A BETTER ASSORTMENT 2URAL SHOPPERS ARE ALSO MORE LIKELY TO MAKE MULTIPLE SMALL TRIPS ON FOOT TO NEARBY STORES Figure 8.2: Impulse Purchase Frequency Over

60%

of Rural shoppers make impulse purchases.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 2URAL . 1 ) WOULD LIKE TO KNOW HOW OFTEN YOU PURCHASE ITEMS THAT ARE NOT MENTIONED IN THE SHOPPING LIST Figure 8.3: Do Storeowners Influence Rural Shoppers?

More than

70%

of Rural shoppers are influenced by storeowners.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 2URAL . 1 0LEASE TELL ME TO WHAT EXTENT DO YOU AGREE OR DISAGREE WHEN ) SAY THAT h4HE STOREOWNER OF THE MOST USUALLY VISITED KIRANA GROCERY GENERAL MERCHANT STORE INmUENCES WHAT ) PURCHASE v Figure 8.4: Where Rural India Shops

Over

80%

of Rural shoppers shop in big stores in a nearby town.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 2URAL . 1 )N THE LAST MONTHS WHICH OF THE FOLLOWING TYPES OF SHOPS HAVE YOU OR YOUR FAMILY MEMBERS VISITED FOR SHOPPING PURPOSES

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Dominant Shopping Behavior )NDIAN SHOPPERS CAN BE GROUPED INTO FOUR SHOPPING SEGMENTS 4ASK %XPLORER 0LANNER AND 4HERAPY 'ROUPS ARE BASED ON ATTITUDINAL AND BEHAVIORAL STATEMENTS ! 4ASK 3HOPPER VIEWS SHOPPING AS A CHORE WHILE THE 4HERAPY 3HOPPER ENJOYS THE EXPERIENCE 4HE %XPLORER 3HOPPER ENJOYS DISCOVERING NEW THINGS AND THE 0LANNER 3HOPPER TENDS TO CONSIDER THEIR FAMILY S OPINION WHEN SHOPPING 4ASK AND %XPLORER SEGMENTS COMPRISE THE MAJORITY OF )NDIAN SHOPPERS AT PERCENT

Figure 9.0: Shopper Segmentation

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 3EGMENTS ARE RESULT OF FACTOR AND CLUSTER ANALYSIS ON A SERIES OF QUESTIONS 1 &OR EACH STATEMENT PLEASE TELL ME TO WHAT EXTENT YOU AGREE OR DISAGREE WITH EACH OF THE FOLLOWING STATEMENTS

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Dominant Shopping Behavior (continued) %XPLORER 3HOPPERS TEND TO SHOP MULTIPLE TIMES A WEEK AND RARELY PREPARE A SHOPPING LIST WHICH INCREASES THEIR EXPOSURE TO NEW PRODUCTS AND THEIR LIKELIHOOD TO MAKE UNPLANNED PURCHASES 7HEN SHOPPING THEY KNOW PRODUCT CATEGORIES AND MAKE DECISIONS AT THE SHELF )N ADDITION THIS GROUP SEEKS SUPPORT FROM STOREOWNERS WHO HAVE A HIGH LEVEL OF INmUENCE 4ASK 3HOPPERS TEND TO HAVE THE LOWEST SHOPPING FREQUENCY OF ALL GROUPS AT ONCE A MONTH 7HEN THEY DO SHOP THEY TEND TO USE A MENTAL LIST AND FOCUS ON WHERE TO SHOP VERSUS PRODUCT CATEGORY OR PRICES 4HE BEST WAY TO REACH THIS SHOPPER IS WHEN THEY ARE PREPARING TO SHOP WHICH IS WHAT 4HE )NTEGER 'ROUP DElNES AS 0RE 4AIL® SEE PAGE

Task Shoppers

Figure 9.1: Shopper Segmentation by Region

are more likely to be female, while Explorer

Shoppers

are more likely to be male.

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 3EGMENTS ARE RESULT OF FACTOR AND CLUSTER ANALYSIS ON A SERIES OF QUESTIONS

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Dominant Shopping Behavior (continued) )N EACH GEOGRAPHIC REGION 5RBAN ! S DOMINANT TRAIT IS 4ASK 3HOPPER WHILE 5RBAN " S IS BOTH AN %XPLORER PERCENT AND 4ASK 3HOPPER PERCENT 4HE 2URAL SHOPPER S DOMINANT TRAIT IS %XPLORER PERCENT FOLLOWED BY 0LANNER PERCENT Nearly

50% of Urban A Shoppers are Task Shoppers.

Figure 9.2: Shopper Segmentation by Region

3OURCE 4HE )NTEGER 'ROUP \ )PSOS -ARKETING !UGUST )NDIA #HECKOUT 3TUDY . 3EGMENTS ARE RESULT OF FACTOR AND CLUSTER ANALYSIS ON A SERIES OF QUESTIONS 1 &OR EACH STATEMENT PLEASE TELL ME TO WHAT EXTENT YOU AGREE OR DISAGREE WITH EACH OF THE FOLLOWING STATEMENTS

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Summar y of Findings

s s s

7HILE LIST MAKING IS AN IMPORTANT RITUAL SHOPPERS DO PURCHASE PRODUCTS ON IMPULSE ACROSS CHANNELS 2ETAILERS NEED TO THINK OF SMART WAYS TO DRIVE IMPULSE LIKE CROSS CATEGORY ADJACENCY AND LEVERAGING INSIGHTS FROM SHOPPER LOYALTY CARD DATA

s

&ESTIVALS AND SPECIAL OCCASIONS DRIVE HIGHER PURCHASES 4HERE IS AN OPPORTUNITY FOR RETAILERS TO CREATE MORE SUCH OCCASIONS INCLUDING LEVERAGING LOCAL FESTIVALS OR DESIGNING CUSTOMIZED PROMOTIONAL PROPERTIES

s s s s

,OW USAGE OF CREDIT DEBIT CARDS AND LOYALTY CARDS MEANS THERE IS A LACK OF UNDERSTANDING OF THEIR BENElTS 4HIS IS AN UNTAPPED OPPORTUNITY FOR MARKETERS AND RETAILERS WHO CAN INCREASE USAGE BY BUILDING AWARENESS AND OFFERING ATTRACTIVE INCENTIVES WITH EACH PURCHASE

s

)N A MULTIPLE CHANNEL RETAIL MARKET EACH CHANNEL HAS A DISTINCT ROLE TO PLAY !ND WHILE THERE MAY BE OVERLAPS THE CONVENIENCE PROXIMITY ELEMENT WILL ENSURE THAT BOTH CHANNELS EXIST 1UALITY FOLLOWED CLOSELY BY PRICE IS THE SHOPPING PRIORITY FOR ALL 5RBAN AND 2URAL SHOPPERS ACROSS CHANNELS "RANDS AND RETAILERS HAVE AN OPPORTUNITY TO FOCUS COMMUNICATION ON QUALITY ALONG WITH VALUE EFFECTIVELY AT THE POINT OF SALE OR ON PACKAGING

$ISCOUNTS AND FREEBIES ARE THE MOST POPULAR SAVINGS MECHANISMS (OWEVER RETAILERS NEED TO DIFFERENTIATE BEYOND PRICE PROMOTIONS TO BUILD SUSTAINABLE LOYALTY 4HIS INCLUDES ENCOURAGING THE USE OF RETAILER LOYALTY CARDS BY ASSOCIATING STORE PROMOTIONS WITH THE LOYALTY CARD /NLINE SHOPPING IS IN ITS INFANCY (OWEVER CATEGORIES LIKE APPAREL ACCESSORIES AND COSMETICS ARE SHOWING THE MOST POTENTIAL IN TERMS OF SHOPPER INTEREST FOR A FUTURE PURCHASE 2URAL SHOPPERS ALSO PRIORITIZE QUALITY OVER PRICE 4HEY DO SHOP AT -ODERN 2ETAIL STORES IN NEARBY TOWNS OCCASIONALLY FOR BETTER QUALITY ASSORTMENT 4HE OPPORTUNITY LIES IN BRINGING A WIDER ASSORTMENT TO THE SHOPPER AND IMPROVING SUPPLY CHAIN EFlCIENCIES 4HE FOUR SEGMENTATIONS YIELD DISTINCT SHOPPING TRAITS &OR EXAMPLE 4ASK 3HOPPERS FEEL AS IF THEY ARE PERFORMING A CHORE AND WOULD RATHER SPEND TIME DOING SOMETHING ELSE WHILE %XPLORER 3HOPPERS DO NOT MIND INVESTING TIME SHOPPING IN FACT THE ACTIVITY PROVIDES THEM WITH SOME LEVEL OF SATISFACTION

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The Shopper Continuum

®

The Shopper Continuum® IS A PROPRIETARY )NTEGER FRAMEWORK THAT HELPS US UNDERSTAND AND ARTICULATE THE ROLE OF COMMUNICATION AND MARKETING ACTIONS DURING THREE DISTINCT PHASES OF SHOPPING BEHAVIOR Pre-Tail® INCLUDES ALL THE ACTIONS PEOPLE TAKE WHEN PREPARING TO SHOP AND SELECTING A RETAILER INCLUDING HOW WE RESPOND TO ALL THE THINGS BRANDS AND RETAILERS DO TO INmUENCE US Retail IS ALL THE ACTIVITIES THAT TAKE PLACE IN A REAL OR VIRTUAL RETAIL ENVIRONMENT 4HIS INCLUDES THE BEHAVIOR OF THE SHOPPER AND THE ACTIONS OF THE RETAILER AND BRANDS ON THE SHELVES REAL OR VIRTUAL Post-Tail® ENCOMPASSES WHAT HAPPENS AFTER A PURCHASE )T INCLUDES WHAT RETAILERS AND BRANDS CAN DO TO REINFORCE AND CELEBRATE THE PURCHASE AND ENCOURAGE SHOPPERS TO REPEAT THEIR BEHAVIOR The Shopper Continuum® FRAMEWORK IS ONE OF THE TOOLS EMPLOYED BY 4HE )NTEGER 'ROUP TO IDENTIFY THE QUESTIONS WE NEED TO ASK ABOUT OUR SHOPPERS HOW WE GO ABOUT GETTING THOSE ANSWERS THE DATA AND THEN WHAT WE DO TO IMPROVE OUR STRATEGY THE ANALYTICS

#OPYRIGHT ¥ 4HE )NTEGER 'ROUP

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International

Way to Shoppers Mind, Heart & Wallet Shoppers are only getting complex with every passing day, with technology at their disposal they become more unpredictable and thus the Path-to-purchase also gets a little twisted. Thus through this space we bring to you some international wisdom which helps you get closer to your shopper. This time we have a feature penned by Jason Rorgers, who that indicates how brands need to fashion their digital-media strategies to satisfy the hierarchy of needs and values of Shoppers. Read on to know more. Maslow’s Shoppers

D

igital-media strategies must satisfy a hierarchy of needs and values. Much has been said and written about the distinction between consumers and shoppers. We’re consumers every moment of our lives. We’re bombarded with marketing from the moment we awake and hear a deejay promoting a concert until late at night when we see a commercial for a new hybrid car. As a result, most consumers shut out all but the most engaging messages. Shoppers, on the other hand, simply want and need something. New car, laptop or home? No question, shoppers are invested. Toilet paper, canned vegetables or after-school snacks for the kids? Hmm! maybe not as invested. Despite operating at very different ends of the consideration spectrum, there is a common denominator: Shoppers have a goal. The level of effort, enthusiasm and time they will invest is based on what that something is. Now, let’s see how digital fits into the equation. Digital is not exclusive to some people’s lives; it’s central to everyone’s lives. The web has fundamentally changed the way we find, discover, share, shop and connect. Whether they know it or not, when consumers use digital, a switch flips in their brains. They become task-oriented. Even when it’s casual browsing, they have something in mind that they want to accomplish. Understanding they have a task means that, as marketers, we need to make sure that how we join them on that journey is relevant.

Younger demographics — the Gen X, Gen Y and below — have been raised as digital natives rather than digital immigrants (as Rupert Murdoch referred to them during his 2005 speech to the American Society of Newspaper Editors). Digital natives have never known a time when there wasn’t email, Firefox or mobile phones. Digital immigrants are the rest of us. We’ve had to adapt to technology. Table stakes are to deliver against core shopper needs of saving time and money, but to succeed you must satisfy higher order needs (see chart one). Shoppers need to feel smarter, they want their shopping experience to be enjoyable and are eager to know you are supporting their values. At the end of the day, they will trade time and cost savings to be fulfilled on these other levels. Let’s explore how expectations have changed and how that impacts the way we connect with shoppers by outlining best practices, drawn from our latest “Digital Shopper Marketing” study. Shopper Needs at Home. The at-home phase of the shopper’s journey has been about pre-planning and list building. However, it’s evolved to include alternate commerce models. While e-commece has been common

When we think about shoppers, a common assumption is that those who are shopping online are early adopters. While perhaps this was true a few years ago, it’s certainly not so today. With the exception of the 65-plus target, all other age demographics are increasing online shopping exponentially.

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in other categories for some time, it’s fairly new for packaged-goods brands and retailers. The key to winning at this stage is getting on their shopping list. The shopper figures out what they need, considers brands, where to find them, and who has the best price. As we think about how the typical consumer uses digital, we can find ways to influence each step in the process. Retailers can improve the instore experience and online presence, ease of access, selection, loyalty model, commerce model, online and in-store selection of items, content, mobile tools and beyond. Brands can enhance the ease of access to product information, premium content or experiences beyond the product itself, promotional strategies, price incentives and leveraging brand equities. Keep in mind that while shopper traffic to brand sites is down, traffic to retailer sites is up — significantly. Amazon. com is the #8 ranked website in the US, with Walmart.com coming in at #33. Retailer sites are where your shoppers are spending time and populating their shopping lists. So, make site search simple to use with clear, intuitive navigation. Deliver content that is in keeping with who you are and how you want to be known.


International and of course, shopper demographics. Data can be applied to enhance the instore experience by leveraging what we learn about how shoppers use digital to pre-plan, list-build and surf the web. The most successful in-store technologies focus on convenience, the simple exchange of information and lastminute savings opportunities. These experiences are delivered through a variety of means, whether the shoppers use a mobile device, proprietary scanner technology, in-store digital signage, loyalty card or kiosks. Many of these tools have been around for a long while and have wide exposure to almost all shoppers (see chart two). In addition, make sure that all your sites are continually optimized for search. This includes the basics, but also extends to all site content: causes, community support, national and local promotions, meal-planning, and lifestyle. Let’s say you are an over-the-counter drug brand and CVS is a top account. When you present your plans, are you including salient search terms (lifestyle and brand keywords) to supplement their standard buys? Doing so may help plan sell-in or get a premium position in-store or online. Retailers should be delivering local search. If shoppers are searching for their local Home Depot, they should be getting results specific to their locality. Take care to reach shoppers through local search in paid plans and searchengine optimization. Shopper Needs On-the-Go. Mobile devices are quickly supplanting out-of-home and radio as a desired platform. We can deliver experiences that meet shopper needs by pushing messages out knowing where they are; or provoking them to reach out. At this stage, it’s about delivering relevance and convenience. We want to push them to the store or at least get them to take a high-value action like opting in to a database. The best route is to tap into their needs through appropriate calls-to-action (text-to-win, QR codes to download coupons) or create the opportunity through digital experiences. Be mindful of the value exchange when delivering on-the-go or in-store. Asking a mom with kids in the cart at the grocery store to download a QR code in

order to access a web page on your site is unrealistic. Unless you’re delivering a premium-incentive that a shopper finds compelling, avoid over-complicating the on-the-go experience. Provide simple access and value in return. Make sure your website is accessible to users with mobile devices. Through GPS and IP-based capabilities, you can deliver content that’s meaningful to the region where a shopper accesses your site. Boosting geographic relevance improves chances of a store visit and brand consideration. Retailer and third-party applications can provide shopper convenience, access to shopping lists, last minute specials, GPS-enabled store locators and even category content (e.g., allergy information during key seasons). When tied to loyalty-card services (such as with Kroger) or incentives (as with Shopkick or SCVNGR), shoppers are more likely to download and use the applications. Retailer applications succeed when they simplify the process by helping users find stores or information on typical purchases based on past purchase behavior or frequency. Third-party apps give brands and retailers access to shoppers when they are engaged via “check-in” tactics. Shopkick shoppers get points redeemable for rewards at different retailers as well as charities when they check in, for example. Shopper Needs In-Store. In-store is greatly dependent on a range of factors, including available technology for point-of-sale, loyalty card availability and structure, retailer type and location, 55

Self-checkout is already widespread, but continues to grow in popularity. Handheld scanners also have potential — where they are available, usage is quite high. These technologies help shoppers circumvent the dreaded checkout line. We also see strong growth in on-pack promotions and Walmart TV, which has been repurposed with screens closer to product, and messaging that’s more pertinent to shopper location in-store. While consumers want to save time, they will engage with content that appeals to them. Third-party vendors such as Visible Technologies are exploring delivering interactive content matched to the store aisle, including product information, comparison tools, printable coupons, and special content or promotions. Although scanner technology benefits the shopper more than the brand at present, the ability to deliver targeted content, offers and reminders through the scanner and mobile device provide value to the shopper. As consumer expectations evolve in terms of how they find information and fulfill their needs, brands must change how they create shopper-marketing plans and retailers have to redefine the shopping experience. Digital helps optimize opportunities for both groups, but the key to connecting with the connected shopper requires building your shopper-marketing strategy and investment decisions around insights, culled during each phase of the shopper’s journey. Source: The HUB Magazine Author: JASON ROGERS, Executive Vice President, Interactive for Catapult Action-Biased Marketing.

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International

Cellular Levels Digital tools offer new clues into shopper behavior.

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hoppers have long put effort into researching high-involvement and expensive purchases like cars and electronics before heading to the store. Suddenly, because of technology, it is now also worth the “effort” to research toothpaste, canned tomatoes and laundry detergent. According to the Wall Street Journal, more than one-fifth of shoppers research food and beverages online, nearly one-third research pet products and 39 percent research baby products. Almost two-thirds (62%) say they search for deals online before at least half of their shopping trips. Ryan Partnership’s multi-year study of digital shopping confirms the widespread — and still growing — use of digital tools to gather information, select retailers and make brand decisions well before the shopper ever sees a product on the shelf. In fact, this past month, 58 percent of the 5,000 shoppers in our survey told us they are more likely than a year ago to “typically” decide what they want before visiting a store. To do this, their usage of all kinds of digital shopping tools is growing. The increased availability of information on mobile devices has been a strong driver in the growth of digital tool adoption for shopping — the tools are simply more useful when they are available whenever and wherever people need them. Shoppers in our study overwhelmingly reported that they use these tools before they get to the store shelf. In many cases this pre-store activity is having an impact on the decisions they make about where they shop, not just what they buy.

behavior, as well: Respondents report that they make unplanned purchases and buy new products and brands as a result of the information digital mobile tools provide for them. What does all this mean for shopperinsights professionals? When people use these shopping tools, they generate a trail of data that is employed routinely by web-analytics teams to optimize brands’ and retailers’ websites and other digital assets. However, it can also be used for other means — in particular, understanding in broader terms how people shop for various categories and brands, how they shop in different retail channels and banners, and some of the things that are motivating those behaviors. There has been heated debate in our field in recent years about the appropriateness of using “social market research” in place of traditional quantitative and qualitative shopper research techniques. In fact, the debate is something of a red herring. It would be foolish to ignore this new source of data that, when approached knowledgeably and responsibly, can provide insights we may not be able to gather any other way. It is also possible to incorporate this information into our insight-generation process without abandoning more direct types of shopper research.

Shoppers also report using mobile digital tools more and more while at the store as an adjunct to the information they find in the store. These tools are having a real impact on people’s in-store shopping

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The positives of using social research platforms for shopper insights are that they are quite easy to access, reasonably priced, and fast (i.e., we can get information in real time) compared to many traditional research tools. They also have the advantage that they provide information that is not biased by shoppers’ ability or willingness to recall or recount their activities — and this is a major positive. The key negative is that it can involve quite a bit of persistence, creativity and imagination to mine social data to glean broader insights about the overall shopping experience. As a result, there is the possibility of misinterpretation, and the dollar savings can be offset to varying degrees by the time investment. We find that using social research techniques to begin our investigation of shopper behaviors and motivations is a great way to maximize the positive and minimize the negative. The ability to document behavior that shoppers may not have been able or willing to tell us is a strong reason to take a look at what can be learned from social research platforms. After the initial exploration, we often have questions or hypotheses about shoppers that we would not have generated on our own. That is the time to turn to some of the more traditional


International approaches and explore these issues further. In general, the insights we can gather from social research platforms are very behavioral. Any insights we generate about shopper motivations — or the why behind the what — probably need to be confirmed with additional direct shopper research (surveys, intercepts, in-store monitoring, etc.). Learning from Digital/Social Tools Social listening and web analytics tools can help shed at least some light on a variety of marketing issues — from positioning to new product development to effective merchandising and pricing. Numerous examples are described in the literature that relate to topics dear to most shopper marketers’ hearts, so I’ve chosen a couple to provide some thought-starters. One example uses search-behavior analytics and another uses social listening. What is important to people shopping for my category? Search behavior tools (such as Google Insights for Search) can be used to understand how people think about the category as a whole and how they start their shopping process for it. We can apply that information to make sure we are delivering on those factors in the store. For instance, an investigation of search activity in hair care reveals that people spend a lot of time searching for ways to recreate celebrity hairstyles. Clearly, that has implications for where a hair-care brand would want to place internet advertising and what kinds of videos it might post on YouTube or its own website. However, it also provides a great starting point for developing in-store activity and merchandising concepts. These could include hair styling tips/

booklets in-store (featuring celebrities and their signature looks) celebrities on packaging and in-store signage, and changes in adjacencies based on tools and products required to achieve certain styles. Where are people shopping for my category and how is that changing? In the book, Listen First!, Stephen Rappaport shares a case study involving Kraft’s social-listening tools. One key insight Kraft (in conjunction with its sociallistening partner Cymfony) discovered was that “shoppers experienced a resurgent interest in home gardens and seasonal eating as a way to save money … eat more healthfully … and support local farmers’ markets.” Using that information to infer that shoppers were likely moving some of their grocery store dollars to farmers’ markets, Kraft responded by “partnering with retailers to create merchandising displays that borrow themes from farmers’ markets and create community supported agriculture-like boxes of complementary items in stores,” thereby helping their customers keep more of those transactions in the store. I’m sure you have your own set of questions about shopping behavior and motivations in your category and I challenge you to think about how you could answer them by tapping into the information available as a result of this new way of shopping. All of this information, gathered online, can help point us in the direction of the right messages to deliver to shoppers at the right point in time through the right media channels — including inside the store. In most organizations — whether manufacturers, retailers or agencies

— the relationship with social media is not part of the insights or market research function. Instead, the responsibility for tapping into the measurement tools generally lies with the teams that develop digital and social media strategies and plans. They use the data to test audience reaction to various online messages and activities. Which banner ad is driving more people to the website? Which vacation spot photo on our site is getting more people to book a flight? Which recipes are getting people to navigate around the site and download coupons for our brand? You want to use the same data, but for different purposes. This is the excuse you’ve been looking for to get out of your office and make new friends with the web analytics or customerintelligence folks. Have lunch with them and talk about the kinds of things you’d like to learn about your shoppers. Chances are they’ll be excited to think about their tools in a slightly different way and to help you get started accessing the right data. In addition, it’s critical to have this team work with you so that any digital activity you launch is set up to collect data that will help you gather the shopper insights you need. Follow up by talking with whichever social-listening platform suppliers your organization uses. Chances are these platforms are already in use somewhere in the organization. So, speak with those experts if you have concerns about the value and relevance of this kind of information and challenge them to look at their data from your perspective. If we truly want to be the voice of the shopper within our organizations, it’s important to listen to that voice whenever and wherever we reasonably can. As trained professionals, it is also up to us to bring that training to bear on these new techniques to improve the quality of data they provide and to interpret them responsibly. After that, it’s up to you where your imagination and intellect take you n Source – The Hub Magazine Author - Kim Finnerty

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Toy Story! M

arketers have long known that the path to purchase is typically a complex one that involves multiple media. A new study from Google and Compete reinforces this and shows transparently how consumers (shopping for toys) use multiple media and, increasingly, multiple screens to make buying decisions. Compete surveyed consumers who had “researched or shopped for toys online within the past 6 months” between July and September, 2011.

These data obviously help Google make the case that online and search in particular are critical parts of the consumer purchase process. Putting that aside, however, the study is more interesting as an argument about how marketers truly need a multi-pronged strategy that includes traditional media, search, display, mobile and reviews/social. There’s way too much data in the study to expose it all in this post. However I’ll pull out a few key bits of information that illustrate the broad points above. While Google and Compete discovered that two-thirds of toy purchases (among this respondent pool) were influenced by online, there are surveys that show higher percentages than this. Indeed, the overwhelming majority of online users tap the internet for product research before buying (north of 80 percent according to multiple sources). Google found that most people shopped at home and almost everyone at some

Although there are some unique aspects of toy shopping (i.e., the influence of children) most of the takeaways and data can probably be generalized to product shopping as a whole. The following are the general findings of the study: • Two-thirds of toy gift givers are influenced by children and they use an average 3 online resources to shop

As mentioned above, Google also found that 74 percent of these shoppers used at least two sites and almost 40 percent used five or more sites to conduct their research. The report drills down into the relative influence of paid and organic search on conversions and the influence and frequency of different types of keywords (brands vs. product categories) used by consumers to search for toys. Display ads also had an impact as did product reviews, which were influential for both online and mobile shoppers. The “big takeaway,” as I’ve already stated, is that consumers now use numerous media and resources to get more information about products. Multiple media categories came into play in this study’s purchase scenarios (traditional, online, mobile) as well as multiple categories of sites. Search was central and influential but clearly not the only tool being used. Reaching consumers at all these touchpoints becomes increasingly

• Shoppers exposed to TV ads and Circulars turn to online research within 1 week

point used PCs. But a meaningful percentage of people (18 percent in this study) also used smartphones and/or tablets as part of their research process, some of which occurred “on the go.”

• Nearly half of buyers use 5+ sites and half of buyers research up to 2+ weeks prior to conversion

Google also found, as have several studies in the past, that traditional media drove people online to do more

• 30% of toy shoppers only search on toy category terms but majority search on retailer terms • Nearly 1 in 5 toy shoppers use mobile to shop and search is their #1 activity

May 2012

research. TV, outdoor, magazines, radio and newspaper ads all showed up as influential. Specifically retailer circular and TV ads drove consumers online within the same week to do further research on the advertised toys.

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complex for marketers, as does the project of figuring out which channels actually had greater influence over purchase decisions and conversions. To say “you’ve got to do it all,” doesn’t seem very useful — but it nonetheless appears to be true n


International

Worldview of Shopper Marketing Here is an account of how shopper marketing has evolved over the years globally some really interesting aspects and milestones crop up in this piece written by Daniel Todaro.

A decade of change in shopper marketing

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ven a casual observer can see how the in-store retail experience has vastly changed for shoppers over the past decade. Since 2002 we have seen an inexorable rise of desirable, lifestyleled brands from personal technology through to luxury goods. Subsequent growing consumer demands for design alongside functionality loom large over the retail space. How these companies have chosen to communicate with their customers has similarly altered to fit this new landscape – through advertising and product lines but notably how they present themselves in the store environment. Over the past ten years since our inception, we have worked with a number of tech brands on their retail presence and noted this change in the landscape. Through recession and now double dip, stores have seen ever more sophisticated retail marketing and access to sales and shopper data. A previous rush for retail share of voice is now much less evident but still relevant in crowded categories such as consumer tech. It is now more usual to see modern demonstration day’s in-store focused on ROI and ensuring a sales upswing from the activity rather than simply brand recognition. Furthermore, this brand experience in-store is often driven in the modern retail world by staff trained to sell ancillary products such as add-on finance or product insurance, than a simple desire to shift the big ticket items alone. This makes for a much more immersive and successful store experience for the shopper, who encounter salespeople able to offer a holistic solution to their needs rather than the hard sell for a specific product.

We have also seen an evolution of the retail space itself – namely, branded displays creating a ‘shop in shop’ format. This represents a great focus from the retailer in terms of recognising the power of the assets they hold – the experience in-store for their shoppers not only for their brand but for the brands they stock. There has been a real increase in the number of name brands seeking standout in the retail space and paying for this space – particularly in specialist consumer tech arena retailers like PC World but also in the major supermarket multiples like Tesco. The greatest game changer over recent years however, would have to be how brands and consumers alike are demanding ever greater value from their retailers and suppliers – often in return for much less. For consumers, this may be a combination of a growing awareness of the worth of their personal data to brands and retailers. This is something which has been exacerbated by the proliferation of price comparison sites and discount voucher code amalgamators furthering shoppers already at home with deal-seeking. This power reversal in terms of brand communications will only strengthen as marketing channels and technology increases and the individual’s time and attention is spread across ever more gadgets and devices. Another powerful factor in this drive towards greater value from interactions for both brands and consumers: few will be willing to invest in large financial outlays without some guarantee of return. For retailers this means they are encountering an ever greater drive to discount, cutting their own profits

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“A previous rush for retail share of voice is now much less evident but still relevant in crowded categories such as consumer tech. It is now more usual to see modern demonstration day’s in-store focused on ROI and ensuring a sales upswing from the activity rather than simply brand recognition.” in the process: in the face of threats from online retailers who lack the overheads of physical store space we have seen many electrical retailers themselves move to entirely digital operations, and some – like Best Buy – enter the UK market before sinking. There is little doubt that times are tough for many. However, investment in the retail space is proven to pay off, and with retailers keen to monetise their space and grow a revenue stream, consumers open to engagement and brands seeking standout, the location where many still make the bulk of their physical sales is the logical place for all three factors to converge. As we have seen, the retail environment has proven a dynamic and changeable landscape over the past decade, shaped by innovative brands and empowered consumers. It is likely that the coming years will see this become ever more marked in the retail space, particularly as brands fight against themselves to encourage repeat purchase and long term customer brand loyalty in an ever fragmenting environment n Author - Daniel Todaro

May 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 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

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 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

May 2012

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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


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Calendar 27-29 June Digital Signage Show Shanghai Shanghai www.chinadigitalsignage.org

May 2012 7-11 May Arabia Shop 2012 Dubai http://www.arabiashop.ae

August 2012

8-10 May Sweets and Snacks Expo Chicago, IL http://www.sweetsandsnacks.com/

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

15-17 May Front End of Innovation Orlando, FL http://www.iirusa.com

September 2012

16-17 May Screenmedia Expo 2012 London http://screenevents.co.uk/screenexpo2011/

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/

June 2012

24-26 September Retail 2012 Sydney, Australia http://www.retailexpoandconference.com.au/ 25-26 September Category Management & Shopper Marketing 2012 London http://www.igd.com

October 2012

8-9 June Outdoor Advertising Convention 2012 Hotel Renaissance Powai, Mumbai. www.oacasia.org

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

12-13 June Digital Signage Expo 2012 Berlin http://www.digitalsignageeurope.com

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

13-16 June PROPACK Asia 2012 Bangkok, Thailand http://www.propakasia.com

16-18 October Shopper Marketing Expo Chicago, IL http://www.shoppermarketexpo.com

May 2012

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