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1 shopper marketing model kompas voor de trade marketeer Den Haag 20 oktober 2009 Prof. Gino Van Ossel Eva Pelgrims Retail & Trade Marketing Research Centre Reep Gent - Belgium tel ++32/9/ fax ++32/9/

2 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

3 the shopper marketing model: what? behaviour

4 the shopper marketing model: what? behaviour shopper consumer/characteristics/need state

5 the shopper marketing model: what? consumer characteristics level eeof involvement e brand loyalty or preference behaviour shopper consumer/characteristics/need state consumer shopper? consumer = shopper? if not: prescription? brand or product? empathic behaviour?

6 the shopper marketing model: what? shopper characteristics sociodemographics need segmentation behaviour shopper consumer/characteristics/need state need state need state shopping missions

7 the shopper marketing model: what? product category/segment/product/sku brand behaviour shopper consumer/characteristics/need state

8 the shopper marketing model: what? product category/segment/product/sku brand behaviour shopper consumer/characteristics/need state

9 the shopper marketing model: what? channel traditional, convenience, leisure, internet subchannel generalist vs. specialist price level behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner

10 the shopper marketing model: what? channel traditional, convenience, leisure, internet subchannel generalist vs. specialist price level behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner

11 the shopper marketing model: what? channel traditional, convenience, leisure, internet subchannel generalist vs. specialist price level behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner

12 the shopper marketing model: what? channel traditional, convenience, leisure, internet subchannel generalist vs. specialist price level behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner

13 the shopper marketing model: what? product category/segment/product/sku brand behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner trade marketing

14 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

15 the shopper marketing model: the added d value product category/segment/product/sku brand behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner trade marketing

16 the shopper marketing model: the added d value How novel is the chosen distribution an existing channel, where we are already present channel activation an existing channel, where we are not yet present channel development a new channel, that doesn t exist in the market channel creation the checklist: exhaustive cross-industry a double objective: assessment recommendations

17 the shopper marketing model: the added d value The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product

18 the shopper marketing model: the added d value Usage and attitude In this part, please use as benchmark all possible consumer products & services, including for instance cars, screws, mobile phones or tissues. To what extent is the consumer involved? To what extent does the consumer perceive significant differences between the competing products?

19 the shopper marketing model: the added d value 5 variety seeking complex perceived differences routine or habitual cognitive dissonance 0 level of involvement 5 typology of buying behaviour

20 the shopper marketing model: the added d value For the remainder of the checklist: Please rate your answer with a score of 1 to 5; depending on the question, 5 stands for very high, y ; p g q, y g, far above average, totally agree, Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety, and/or the brand.

21 the shopper marketing model: the added d value For the remainder of the checklist: Please rate your answer with a score of 1 to 5; depending on the question, 5 stands for very high, far above average, totally agree, Give a rating for the different levels of analysis: for instance: for the category, the sub category, the segment, the variety, and/or the brand. Is the shopper brand loyal? gaming g console software Wii brand loyalty

22 the shopper marketing model: the added d value How novel is the chosen distribution an existing channel, where we are already present channel activation an existing channel, where we are not yet present channel development a new channel, that doesn t exist in the market channel creation the checklist: exhaustive cross-industry a double objective: assessment recommendations for juniors: do not reinvent the wheel for seniors: strategic assessment

23 the shopper marketing model: the added d value The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product

24 the shopper marketing model: the added d value set the playing field: e.g. FMCG or DIY or other select the product select the distribution e.g. Chocomel Hot pads e.g. supermarkets input At what level do you want to do the analysis? category / subcategory / segment / subsegment / product / variety / / SKU the entire category / all brands of single supplier / a single brand /

25 the shopper marketing model: the added d value case Chocomel Hot - part 1

26 the shopper marketing model: the added d value set the playing field: e.g. telecom or DIY or other select the product select the distribution e.g. KPN Mobile internet - laptop e.g. telecom specialty stores input

27 the shopper marketing model: the added d value case KPN part 1

28 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

29 shopper relevance: what? access price consumer relevance offer experience service

30 shopper relevance: what? access price dominate offer experience differentiate service

31 shopper relevance: what? access differentiate price dominate offer experience service

32 shopper relevance: what? easy to shop value choice experience service

33 shopper relevance: what? product category/segment/product/sku brand value easy to shop choice behaviour shopper consumer/characteristics/need state experience service distribution channel/subchannel/format/ retailer/banner trade marketing

34 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

35 shopper relevance: added d value? value easy to shop offer 1 0 as is experience service

36 shopper relevance: added d value? value easy to shop offer as is to be experience service

37 shopper relevance: added d value? value easy to shop offer retailer category experience service

38 shopper relevance: added d value? retailer = category (to be) yes no retailer: as is = to be yes align motivate no use category as a lever defend

39 shopper relevance: added d value? case KPN part 2

40 shopper relevance: added d value? case Chocomel Hot - part 2

41 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

42 trade marketing & shopper relevance trade marketing model

43 trade marketing & shopper relevance: trade marketing model The scope Assessment generic trade marketing strategy Other distribution characteristics Shopper chosen distribution Chosen distribution vs. competition for this product Other product characteristics Shopper & consumer product Distribution product

44 trade marketing & shopper relevance trade marketing model set the playing field: e.g. FMCG or DIY or telecom select the product select the distribution e.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores input assess the economic & target group value, and collaborative opportunities see The Trade Marketing Dimension e.g. high / high / high

45 trade marketing & shopper relevance trade marketing model target group value low high economic value low high obsolete brand focus sales focus brand & sales visited by the consumer good fit (positioning) suitable to communicate adapted from: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. The Hague, 2007

46 trade marketing & shopper relevance trade marketing model set the playing field: e.g. FMCG or DIY or telecom select the product select the distribution e.g. Chocomel Hot or KPN Mobile internet e.g. supermarkets or telco specialty stores input assess the economic & target group value, and collaborative opportunities see The Trade Marketing Dimension e.g. high / high / high understand the generic trade marketing strategy see The Trade Marketing Dimension for the 8 generic strategies e.g. trade leadership assess the objectives high economic value drive sales high target group value build the brand collaborative opportunities monitor the trade relationship outpu

47 trade marketing & shopper relevance trade marketing model trade marketing strategies withdraw monitor sales brand monitor brand focus defend sales sales focus enhance trade trade leadership sales objectives grow the market increase product penetration increase intensity (volume or value) grow the market share increase brand penetration increase brand loyalty branding objectives cognitive awareness knowledge affective action intent & trial improve trade relationship

48 trade marketing & shopper relevance trade marketing model sales easy to shop sales > branding value choice sales > branding experience branding > sales service branding and sales

49 trade marketing & shopper relevance trade marketing model sales easy to shop sales > branding value improve trade choice sales > branding relationship experience branding > sales service branding and sales

50 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

51 trade marketing & shopper relevance trade marketing mix the 5 pillars of trade marketing: channel category in-store trade business development development marketing communication analysis strategic xx tactical x xx x xx x operational x xx x xx source: Ron Cijs & Herwin van den Berg. The Trade Marketing Dimension. Academic Service, The Hague, 2007

52 trade marketing & shopper relevance trade marketing mix increase distribution more outlets, accounts, (sub)channels store merchandising optimise the range (reduce?) delist redundancies & slow runners focus on fast runners broaden the range ( one stop shopping ) shelf merchandising improve in-store availability give growing SKU s more space POS-communication & signage packaging design consumer marketing!! product logistics (handling, delivery, ) easy to shop value choice experience service

53 trade marketing & shopper relevance trade marketing mix pricing regular vs. promotional perception vs. actual level promotions intensity frequency vs. strength nature of the benefits: discount / volume vs. added value other aspects loyalty programmes joint-promotions tailor-made promotions events sweepstakes, competitions, value easy to shop t experience service choice

54 trade marketing & shopper relevance trade marketing mix consumer decision tree add missing SKU s, delete redundancies increase the range growing categories, segments, brands, add slow runners substitute the range favour strong/profitable brands & SKU s identify opportunities for innovations consumer marketing!!! easy to shop value choice experience service

55 trade marketing & shopper relevance trade marketing mix what? the brand or the product? how? address all senses carriers? the store itself ( fit ) the actual merchandise visual merchandising fixtures (new) technologies staff of the retailer? of the company? own team vs. outsourced? easy to shop value choice experience service

56 trade marketing & shopper relevance trade marketing mix type/when level before / during / after sales full-service vs. (aided) self-service quality staff sales skills vs. product know-how attitude consistency fit with the shopper availability support by manufacturer tools vs. training product promotors easy to shop value choice experience service

57 trade marketing & shopper relevance trade marketing mix case Chocomel Hot - part 3

58 trade marketing & shopper relevance trade marketing mix case KPN part 3

59 agenda the shopper marketing model what? added value shopper relevance what? added value trade marketing & shopper relevance trade marketing model trade marketing mix next steps

60 next steps: for us towards an adaptive model the product, distribution & shopper variables all variables ( questions ) are linked to the objectives: drive sales / build the brand / improve the trade relationship the adaptive model will only call for the variables directly linked to the relevant objectives! the tailor-made versions for a playing field for a geography for a company for a category an automated decision support tool

61 next steps: for us product value easy to shop choice category/segment/product/sku brand experience service behaviour shopper consumer/characteristics/need state distribution channel/subchannel/format/ retailer/banner trade marketing

62 next steps for you and us? training programme Vlerick + TMA hands-on & case based early 2010 watch your (e-)mail!!!

63 contact t us Retail & Trade Marketing Research Centre management education workshops entertrainment research consultancy Join me on

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