Shopper Marketing Excellence: Marketing effectively at the POS

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1 Excellence: effectively at the POS Barcelona, September 2009 This document was prepared by Advisium Group staff. The distribution / quotation of this document is allowed but always referring to Advisium Group as the source of it.

2 Excellence Key elements for marketing effectively at the POS An effective approach to sets up the entire shopper experience to lead potential shoppers to buy target products. The goal is to profit from every sales occasion and each opportunity to persuade potential shoppers before, during and after their purchase experience. Insights Intelligence Strategy Excellence In-store Actions Value Propositions per Cluster This document was prepared by Francisco Pestana at Advisium Group p. 2

3 Agenda Key elements for marketing effectively at the POS How can Advisium Group help you improve your? This document was prepared by Francisco Pestana at Advisium Group p. 3

4 Key elements for marketing effectively at the POS Why? effectively at the point of sales (POS) = today s strategic priority: Need to communicate better with shoppers: Loss of efficiency of traditional marketing and communication means (Marcom as we knew it, seems to be doomed!) Need to increase new products adoption and consumption rate: Larger number of product launches during the year but lower success rates while the customers, the channels and the organization gets at least saturated (the innovation race is tough!) Need to optimize Trade expenditure s results : In-Store marketing spending has kept growing during the last 10 years, but not always coherently tied with the manufacturer s marketing and communication strategy (most of the times, driven by a reactive approach to retailers demands!) At every shopping occasion, there is a need to convince potential shoppers that your product is the one that they MUST buy, since: >60% of a shopper s purchasing decisions are actually made at the POS! This document was prepared by Francisco Pestana at Advisium Group p. 4

5 Key elements for marketing effectively at the POS Need to convince before, during and after every purchase experience Brand / Company s Interaction Points with s Pre-purchase act Shopping Experience Post-purchase Experience Product / branding positioning communication and awareness (i.e. ATL, BTL, online, WOM, retailers publishing, ) Targeted coupons (i.e. mailing, loyalty cards, internet, previous purchases, fliers, inserts, ) Shopping recommendations (i.e. internet forums, WOM, ) s mood Shopping list Consumers (non-shoppers) requests (i.e. your children s favorite cocoa powder) Type of shopping trip / occasion Store specific positioning (i.e. best perishables!, convenience, all-inone, ) Store specific lay-out POS signage, displays, graphics POS actions (sampling, events, contests, sidewalks) Shelf layout, product placement and assortment Product design, visibility, appeal, price, rebates, pack promotion, gift with purchase In-store media (TV, radio, ) Product experience / gratification (Was the purchase worth?) Emotional: - How do I feel about it? - Can I claim that it s the best buy? - Did those important people for me liked it? Ate/used/shared it it gladly? Functional: - Did I like the product? - Was it it great use / consumption? - Was it it a valuable buy? - Can I access / profit from interesting post-purchase services / experiences (i.e. gifts, contests, service, information, )? This document was prepared by Francisco Pestana at Advisium Group p. 5

6 Key elements for marketing effectively at the POS Excellence approach Strategy Insights Intelligence Excellence Value Propositions per Cluster In-store Actions This document was prepared by Francisco Pestana at Advisium Group p. 6

7 Key elements for marketing effectively at the POS Strategy The first step to a Excellence is setting up a Strategy, which considers the shoppers purchasing values, the sales channels / retailers own objectives and the company s internal capabilities. External Internal Define shopper marketing strategy based on the opportunities, needs and possibilities for the business to setup shopper marketing actions considering every Key Account and every product category relevant to the target shopper segments (top-down approach) For every product, define target shopper segments and channels and specific goals for: visibility, customer growth/loyalty and influence on shopping attitudes / habits (bottom-up approach) Strategy Build efficient workflows which help all the business areas to accelerate the value offers time-to-market and that offer specific answers to every shopper segment - coordinating marketing, KAMs, RAMs, field force, trademarketing, logistics, R&D (optimize the shopper offer funnel) Define specific goals and plans to develop internal competences to excel in-store marketing and merchandising capabilities to effectively connect in-store activity with the rest of the brand's marketing / communication actions (ensure maximum consistency) This document was prepared by Francisco Pestana at Advisium Group p. 7

8 Key elements for marketing effectively at the POS Cluster Value Propositions Cluster analysis helps defining offers that target better the shopper attitudes towards specific products and categories within a specific POS. General guidelines for product assortment, merchandising, price and promotion policies per cluster are its most important outcome. Clusters Modeling POS Service Levels attitudes, drivers and values Post-purchase experience Store / shelves layout Product / Brand positioning ETC. Shopping Occasions POS Traffic Product visibility / placement s Ticket / Basket POS typology Merchandising Strategy Product range optimal assortment Category performance Shopping Frequency segments 1 Analyze shopper segments attitudes, values and purchasing trends at every POS towards the category, brands & product portfolio 2 Analyze tasks and operations performed at the POS in each cluster (i.e. sales, promotions, ) 3 Clusters Value Propositions Management Review the strategic fit of every product for every shopper segment in every POS typology 4 Develop POS- cluster models 5 6 Define optimal assortment for each POS- cluster Define accessory services for each POS- cluster Continuous feedback loop 7 Test + Optimize + Roll-Out + Optimize 8 Measure impact of the value propositions at every cluster This document was prepared by Francisco Pestana at Advisium Group p. 8

9 Key elements for marketing effectively at the POS In-store Actions The real impact of comes through the execution of in-store shopper actions. Every little detail counts to profit from a continuous flow of potential buyers. Instore Set-Up Checklist Because EVERYTHING counts Very focused communication artworks / merchandising solutions with short, simple and relevant messages; improving visibility, motivating visits and purchase acts, always building consistently on the brand s corporate image Promotions and optimal assortments that help to profit from traffic generated by the category (particularly by competitors products) to push your products sales Detailed activity plan per KAMs / RAMs / trademarketers / fieldmarketers / merchandisers Measurement, analysis, scorecard development and launch of actions to improve shopper marketing activities efficiency Database build-up to help understanding the effects on shopping behavior of the customers preferences, category dynamics, promotions, price policies and store assortments This document was prepared by Francisco Pestana at Advisium Group p. 9

10 Key elements for marketing effectively at the POS Insights Intelligence Collecting and understanding shopper insights closes the loop for accomplishing a Excellence. Data collection, research and analytic capabilities are critical to develop internal Insight Intelligence. Sources of SHOPPER INSIGHTS To help the organization to improve the experience Adhoc interviews, surveys, focus groups, ethnographic research to understand shoppers' psychology: attitudes, preconceptions before shopping experience, point of purchase decision triggers, behaviors and perceptions about the POS and the category, post-shopping attitudes and reflections Product Development Merchandising Actions Product Assortment & Fulfilling Post-sales service Customers' ticket analysis and identification of buying patterns Competitors shopper marketing actions, clusters characterization, assortment Communications Promotional Campaigns Pricing & Rebates Policies Tracking of company s promotions results Online buzz / WOM (i.e. Twitter, blogs, forums) Fieldmarketers, merchandisers points of view / observations / claims / recommendations Other research methodologies (i.e. ethnography, heat mapping, cameras, shopper labs, ) This document was prepared by Francisco Pestana at Advisium Group p. 10

11 Agenda Key elements for marketing effectively at the POS How can Advisium Group help you improve your? This document was prepared by Francisco Pestana at Advisium Group p. 11

12 How can Advisium Group help you improve your? Our expertise areas fit perfectly with the Excellence Model Advisium Group has solid skills and knowledge to help your organization arrive to a Excellence state. & Consumer Knowledge Innovation Management & Sales Strategy Insights Intelligence Strategy Sales Excellence s & Consumers Relationship Management Product Management Campaigns Management Brand Management Measurement & Optimization In-store Actions Excellence Value Propositions per Cluster This document was prepared by Francisco Pestana at Advisium Group p. 12

13 How can Advisium Group help you improve your? A shortlist of our shopper marketing capabilities (non extensive) Focus Area Approach Benefits Interim Management Driven Product Innovation Fieldforce Management Strategy Implementation Develop and design products with improved visibility and attributes to foster impulse buying Lead the product launch pipeline from insights gathering to launch date (and post-launch) Launch in-store merchandising methods and activities Team management, motivation, tracking, measurement and reward Test, fine-tune and roll-out shopper marketing strategies Accelerated time-to-market product launch Enhanced innovation tank capabilities Improved success ratio probabilities Add up to the organization s management skills Field marketing methodologies launched and fine tuned Speed and cost effectiveness Results commitment through proven experience and track record 4 Campaigns Management Campaigns conceptualization, launch, track and optimization Set-up and manage front / back-office circuits and campaign support actions s optimal experience and brand s consistency Responsibility and accountability for results Consulting / Advisory Strategy Clusters Modeling Insights Research In-store Optimal Offers Design Define shopper marketing strategy, specific goals per brand, segment, account, Design efficient workflows and plans to develop internal competences Perform shopper clusters analysis Develop general guidelines for product assortment, merchandising, price and promotion policies per cluster Carry out adhoc interviews, surveys, focus groups, ethnographic research to understand shoppers' psychology Analyze shopper quantitative data Design optimal offer assortments, POP materials guidelines and promotions per POS Solid growth axis and model Decisions and actions led towards best choices Improved efficiency of shopper marketing expenditure Solid shopper marketing intelligence repository Stronger input models for optimal offers / assortments design Improved understanding of shopper behaviors, drivers and triggers Enhanced offers to improve sales close probabilities at the POS This document was prepared by Francisco Pestana at Advisium Group p. 13

14 Contact: Francisco Pestana

15 This document was prepared by Francisco Pestana at Advisium Group p. 15

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