Retail Marketing Therapy... by Shopaholic

A NEW HOME FOR TORCHMEDIA

2010-02-22T10:54:00.004+11:00

We'd like to introduce you to the new-look TorchMedia website: www.torchmedia.com.au.

With an integrated site blog (amongst many other exciting new features), we will no longer be updating this blog.

Please update your bookmarks and we hope to see you there!

You can also follow us on Twitter: www.twitter.com/TorchMedia.

The problem with BOGOFs and deep discounting

2010-02-01T09:44:00.002+11:00

Grocery competition has become increasingly fierce over the last 12 months – competition with other manufacturer brands, and also increasingly with store brands. Price-based promotions have played a vital role in enabling brands to compete against store brand products. So popular are BOGOFs and multi-buys in the UK, brands currently spend £25.6 billion annually on such promotions according to data released by the Institute of Sales Promotion.

But with BOGOFs, multi-buys and deep discounting inevitably comes consumer waste. Whether it’s a second block of cheese for $2 or a ‘free’ punnet of strawberries, the simple fact is that much of it gets thrown out. According to recent research from IGD, more than a quarter of respondents (26 per cent) say they want to see an end to multi-buys on fresh food. A further 28 per cent said they are concerned about food waste created by promotions.

There are smarter ways to connect with shoppers – price cutting activities will move stock over the promotional period, but they fail to engender long term loyalty or connect with peoples values.One consumer value that has emerged in the global recession is the move away from excessive consumption – consumers don’t want to be associated with waste and frivolous spending. It simply no longer makes the consumer feel ‘good’. But what does?

UK nappy brand Pampers ran a joint promotion with UNICEF to provide tetanus vaccinations for newborns in developing countries. It promised 'one pack = one vaccine' and outperformed a leading competitor BOGOF promotion because shoppers were offered a straight choice between getting an extra pack free, or saving a life. In contrast to the short-term hit of price, these kinds of promotions build brand equity, activate sales and create long term loyalty.

Key findings from the GMA

2010-01-21T09:25:00.002+11:00

A recent Grocery Manufacturer’s Association (GMA) study revealed a few insights into shopper behaviour.

Shoppers select 41% of the brands they buy across categories before they enter the store. However, the sale can be lost if the brand does not meet the shopper’s expectations in store or if another brand can capture their attention for even just a few seconds. The ability to activate brand equity at the shelf is essential to winning these sales.

For the 59% of items for which brands are selected in-store, 85% of shoppers perceive in-store factors as more influential than out-of-store marketing.

The relative importance of in-store marketing stimuli in getting beyond price and closing the deal for brands for which shoppers have not yet made up their minds varies by product category. For example, while product packaging is an important factor for health & beauty and household products, shelf signage and displays are relatively more influential stimuli for food & beverage products. These differences are reflected in the higher incidence of impulse purchases for food & beverage products, as well as the greater levels of competitive switching between brands.

Download the full report at the GMA website.

Check out this checkout

2010-01-07T10:40:00.003+11:00

This checkout featured as part of a larger campaign created for Denver Water in 2009, to get the word out to save water.

The campaign transforms grocery store checkout belts into flowing rivers, with the order dividers bearing the campaign’s slogan – “Keep our Rivers flowing, use only what you need.”

Nielsen's Top Five US Consumer Goods Spending Trends for 2010

2009-12-23T10:33:00.000+11:00

Read the original full text at Nielsen's blog.

Restraint remains the new normal
The need to save money, unemployment and other economic issues continue to be top of mind. Almost one-third of consumers say that they will use credit less even when conditions improve with 19% saying that they intend to save more money.

Value is a top priority
A focus on low prices at the expense of all other variables threatens margins and brand equity. Value messaging must also include some point of differentiation beyond pricing. Manufacturers and retailers that take an active role in innovation and ad spending are likely to be the big winners.

Store brand growth continues
Consumers returned to cooking and eating at home, boosting grocery channel shopping trips in the process. Store brands became an acceptable alternative — or even preferred brand — for many.

Grocery consolidation intensifies
Local and regional players will become acquisition targets and some larger national and regional supermarkets will divest unprofitable formats and banners to strengthen investments behind their winning formats and banners.

Assortment wars escalate
Brands caught in the trap of greater store brand focus and assortment optimisation will look to forge alliances with key retailers, or step-up efforts as store brand suppliers. Retailers attempting to simplify the consumer shopping experience with reduced ‘clutter’ may lose sales as they shift away from in-store merchandising that drove impulse buying and built shopper baskets.

Global Retail Trends

2009-12-01T10:06:00.006+11:00

Shopaholic attended the recent annual AMI Conference and sat in on a fascinating presentation from John Batistich, General Manager Marketing, Westfield Group.

Based on a recent Westfield Study Tour, Batistich outlines ten changes in global retail trends.In this post we look at two of these:

Technology
Shift to advocacy

Technology

Technology has changed the nature of retail touchpoints. In the last month, Shopaholic has purchased music over iTunes, applications and games through the iPhone app store, and SingStar game tracks through a Playstation 3 console, via the online Playstation Network.

Such innovations have disrupted and redefined how we buy and consume. The computer and mobile phone in particular have joined the in-store environment as very accessible points of purchase. Brands need to ensure consistent alignment of marketing communications across all purchasing environments.

Batistich labels digital screens ‘the new in-store / in-centre medium’. Accordingly, an Arbitron report released earlier this year found that 67 percent of American adults had not only been in the presence of, but recalled seeing a digital out-of-home screen in the past month.

Digital screens offer great scope to engage with consumers through incorporation of touch screens, WiFi and Bluetooth. With the cut-through and flexibility offered by dynamic content, digital screens are sure to continue to deliver results in the retail environment.

Shift to advocacy

Batistich speaks of a technology-enabled shift from marketing models of tell/sell to involvement/participation. Consumers are sharing, advising, guiding and creating within social communities – see Brian Solis' Conversation Flower below.

Although these forms of community involvement take place out-of-store, the insights that can be gained are relevant to the in-store environment. After all, shoppers enter the store with their full range of out-of-store experiences and knowledge.

Consider that 50% of shoppers now research online before entering the in-store environment to make a purchase. With anonymous online opinions carrying the same weighting as trusted recommendations from family and friends, ‘word of mouth’ just became a lot broader.

Westfield has recognised the power of consumer advocacy, creating a Facebook application as part of a wider campaign promoting its gift cards. The application requires the user to opt in so that their status is updated to “All I Want for Christmas is a Westfield Gift Card”, with further copy stating that the user is now in the running to win a $10,000 gift card. This status change is displayed on the individual’s Facebook profile and appears in their friends’ news feeds.

Launched on November 24, over 200,000 Facebook users had opted into the application and updated their status by the 27th. Bearing in mind that this status change appears in friends’ news feeds, the promotion’s reach extends far beyond those 200,000 who have participated.

The Nielsen Global Liquor Symposium and Global Wine Forum

2009-10-30T10:58:00.003+11:00

Last week, the Liquor Merchants Association of Australia (LMAA) in association with Nielsen presented the inaugural Nielsen Global Liquor Symposium and Global Wine Forum at Doltone House in Pyrmont, Sydney.

With key liquor industry representatives from Australia, New Zealand, the UK and America, it was a great opportunity for Shopaholic to gain some valuable market intelligence about the current state of play and emerging trends in the liquor industry.

Highlighted are a few key points worth pondering for any liquor marketer.

Consumer spending habits
“While alcohol beverages are sometimes thought to be ‘recession proof’, we’re seeing significant evidence of changes in consumers’ dining and buying habits,” said Danny Brager, Nielsen Beverage Alcohol Team US. As a marketer, we need to understand those changes.

Job security is still a concern looming over most consumers’ heads, and they are changing their purchasing behaviour accordingly. 30% of those surveyed by Nielsen claimed to have cut down on purchases of alcohol, and almost half have cut back on nights out. This trend was visible across all four markets represented at the Symposium.

Why then do Australian consumers continue to ‘trade up’? BarScan data indicates that the average price per serve has grown in the last year across all categories. Off premise also experienced much stronger growth in the categories of premium spirits, RTDs and beers than in their standard counterparts.

Perhaps more important than price to a shopper, is perceived value. With alcohol there is a degree of status consumption involved, and so shoppers are more open to paying a premium for something they perceive to completely meet their needs. With the strong shift to off premise, retail media has never been better placed to influence shoppers at the point of sale.

Promotional reliance
Overseas shoppers have become conditioned to buy only on price promotion. While price promotion accounts for over half of Australia’s beer and wine sales, this rises to close to 80% in New Zealand. In Australia, while most categories have experienced an increased reliance on promotion for sales, beer has actually experienced a slight decrease. With beer claiming over half of the past year’s new product development sales in Australia, it would seem that shoppers are willing to pay a premium for innovation. Brands should take care to avoid the pitfalls of relying solely on price promotion and consider other activation strategies such as in-store advertising.

Government
Although RTDs now look to be back on track for growth, the 30% short-term decline in the category value (post-excise increase) illustrates how the Australian Government can be a real driver of structural change. Of significance is the current call for the ban of broadcast advertising of alcohol. A ban on television and radio advertising could lead to retail media becoming an even more integral part of the marketing mix.

Wine
The majority of consumers have a real lack of knowledge on wine, but are thirsty to learn. A lot of wine shoppers buy the brand, or the packaging. With the extraordinary success of NZ Sauvignon Blanc worldwide, the question was raised at the Symposium whether the comparative decline of Australian wines was down to the product, or the marketing.

A 2009 report by Miller Zell on effective in-store triggers found that 43% of shoppers want more information on product details. A similar percentage of shoppers want product comparisons. Tesco in the UK provided this in the form of an online wine selector, advising consumers which wines went with which meals. This type of communication needs to be followed through in-store to speak to these consumers as shoppers.

Guest Post: Understanding shopper behaviour

2009-10-23T11:09:00.015+11:00

By Shopportunity.

http://www..sh-opportunity.com.au/

Shopportunity are specialists in shopper research and behaviour. They provide Shopper, FMCG and Retail intelligence, strategies and training for major clients including Foster’s Group, Nestle, Sony and Coca Cola. Shopportunity works closely with TorchMedia, providing channel intelligence and shopper behaviour insights to underpin effective retail media solutions.

A shopper is not a consumer is not a shopper.

‘Consumer Marketing’, the traditional approaches associated with brand campaigns and driving demand, are still as important as ever in the Retail & FMCG marketing mix.

But are consumers the same as shoppers? And is ‘Shopper Marketing’ different?

Often consumers and shoppers are not the same. Basic examples such as pet food and children’s products demonstrate this point, as well as the concept of the ‘main grocery buyer’ buying for the whole family.

Whilst not always so clear cut, in can be helpful to think of Consumer Marketing as ‘before store’ and Shopper Marketing as ‘in store’.

Consumer Marketing is about building awareness and demand. Shopper Marketing is about converting the sale once you’re in store.

Understanding and communicating with shoppers can be broken down in to three key points:

Solve their Problem
Make it Easy for them
Make it nice (or even FUN, if your category allows

Let’s look at each.

Solve Their Problem
Shoppers are most often trying to solve a problem, as quickly as possible. ‘What will we have for dinner tonight?’, ‘How can I feed the family economically for a week’, ‘What will we get John for his birthday’, ‘I’m thirsty’, etc.

Key points to remember in shopper marketing:

Know what primary shopper problem you are solving
Communicate how you solve that problem simply at point of purchase e.g. ‘Healthy dinner in ten minutes!
Think about the kind of shopper that has this problem you help them solve. Who are they? Who are they buying for (the consumer)? Make up a consumer profile and a shopper profile to really understand the differences in how you need to communicate before store versus in store.

Make it Easy
Your average supermarket has about 40,000 different product lines. It’s a minefield, and it can be confusing and annoying trying to find what you want as a shopper.

Some key points:

Use retail media for directional assistance to help them find your product / brand quickly and easily, and again communicate the problem you are solving.
This goes with that: think carefully about the locations and category adjacencies for your product. Does where you are in the store actually make sense from a shopper perspective? Are you where people would expect to find you? If not, conduct some research to back up your case to the retailer about where you think your product should be in the store, what secondary locations you should be in etc. Some retailers are ‘getting with the program’ about occasion-based in store areas (such as ‘dinner tonight’), which more truly reflects how shoppers shop.
Keep your packaging and point of sale marketing pieces SIMPLE. Focus on your primary selling proposition (how you solve their problem better than anyone else). Most point of sale should have no more than four words on it. Just a picture is even better.

Make it Nice
Whilst some shopping (such as fashion) can be a recreational activity, the majority of day-to-day shopping such as groceries are essentially a GRUDGE task. People don’t actually enjoy it. Shopping for things is often nowhere near as much fun as consuming them.

How to make it nicer for them:

Within the parameters of your retailer store policies, think about how you can introduce theatre, entertainment and sensory experience to the shopper experience of your product. Make it fun!
Reward your shoppers. An extra 25% free, loyalty programs, gift with purchase, competitions with meaningful prizes – it all helps take the drudgery out of shopping.

So in summary, the key to successful shopper marketing is MAKING SHOPPERS' LIVES EASIER, BETTER AND MORE FUN. It’s not rocket science – but far too easily (and frequently) forgotten!

We hope this article has been useful. Feedback and questions are welcome: enquiries@sh-opportunity.com.au

Costco: Hot or Not?

2009-09-15T14:24:00.004+10:00

Once a quarter, research firm Synovate Aztec presents an in depth Grocery overview – “What’s Hot?” - to all TorchMedia staff.

Last week Shopperholic sat in on the presentation, which included some interesting discussion points concerning the latest global retail player to enter Australia – Costco. The opening of Costco’s first store in Melbourne certainly created a huge amount of hype with thousands of bargain hunters visiting the store on the first morning. Not even the 50 plus checkouts could cope with the demand.

Costco President and CEO, Jim Sinegal, explains the company’s success to date.

“Costco is able to offer lower prices and better value by eliminating virtually all the fills and costs historically associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts receivable”.

Perhaps one of the most interesting facts about Costco is its impressive MAT (moving annual turnover) compared to the number of stores it has. Costco sits at number 9 on the list of Global Retailers with a MAT of $78,750 million gained from only 559 stores. The highest number of stores in the list of top 10 global retailers is Sven & I, Japan with 25,137 stores while the Metro Group in Germany has the second least number of outlets after Costco with 2,334 stores. This statistic shows just how big and successful each individual store has been overseas.

But will the chain be a success in Australia and break the market dominance of Woolworths and Coles?
There will certainly be shoppers attracted to the low price brand and private label SKUs that Costco offer. However, there are clearly some barriers to success if the retail giant want to steal market share away from the likes of Coles and Woolworths.

Finding locations for the stores is a major issue likely to prohibit expansion. The stores need to be close enough to major cities to be accessible to its middle income family target market, but finding sites big enough is causing huge headaches. Unlike shoppers overseas, Australian’s do not traditionally travel far for their grocery shopping. Having stores too far out of traditional suburban suburbs is likely to limit long term success, with shoppers eventually choosing convenience over price.
Suppliers' relationships with Costco will also be an interesting determinant on the prices Costco will be able to offer and the range of branded SKUs available in the long term. The larger specific pack sizes required by Costco may add considerable costs to suppliers business which may prove difficult to absorb.
Finally it should also be interesting to see how Australians adapt to shopping membership fees, which is a foreign concept in Australia.
While Costco’s arrival may add an extra choice for some Australian shoppers, only time will tell whether the company is a real threat to Woolworths and Coles grocery supremacy.

To delete or not delete?

2009-08-20T12:01:00.011+10:00

Each day Shopaholic’s inbox gets filled with dozens of emails from marketing industry association’s spruiking the latest research results. Most days they get sent straight to the recycle bin but every now and then a worthwhile study stands out and catches Shopaholic’s attention.

One such study was conducted by Arbitron Inc., a New York media and market research firm.

Compared to markets in America and Europe, retail media is in its infancy in Australia and therefore Shopaholic often looks upon overseas studies with a comparable interest. It is always fascinating to gauge the level of success and popularity certain types of media have in other markets.

The Arbitron study, which interviewed a total of 1,666 people to investigate experiences with different forms of media and advertising, reveals that two-thirds (67%) of US residents aged 18 or older have seen an Out-of-Home digital video display in the last month.
The study also found that digital video displays in retail locations alone reach over half (53%) of American adults in an average month. The study found that the general audience for OOH digital video displays represents a cross section of American consumers, and closely mirrors the average U.S population.

These statistics are quite impressive and provide a real indication of the traction OOH digital screens have in the U.S. Other studies have found the public’s reaction to place based TV networks to be extremely positive.

The penetration of OOH digital screens in overseas markets is definitely encouraging for the media here in Australia.

Guest Post: How to leverage the in-store opportunity.

2009-07-17T10:21:00.005+10:00

By Shopportunity.

www.sh-opportunity.com.au

Shopportunity are specialists in shopper research and behaviour. They provide Shopper, FMCG and Retail intelligence, strategies and training for major clients including Foster’s Group, Nestle, Sony and Coca Cola. Shopportunity works closely with TorchMedia, providing channel intelligence and shopper behaviour insights to underpin effective retail media solutions.

In-store promotion is a different beast than before-store. Why? How do we get the most out of it?

Contrary to marketing’s greatest sacred cow: beware the ‘integrated’ campaign (read: rolling out the same concept in store as you put on the telly). Unless ‘integrated’ means significantly morphed for the retail environment, your classic ‘fluffy brand campaign’ simply won’t work in store.

Why? For starters, the shopper and the consumer are not always the same person, television advertising campaigns don’t require the sort of retailer buy-in that in-store promotion does, and the role of in-store promotion is conversion not awareness-building.

The ‘holy trinity’ of promotional bang-for-buck:

1. Retail-Ability
2. Knowledge-Ability
3. Shop-Ability

Let’s look at each.

RetailAbility

The Retail-ability of your promotion is about your retail rationale. What is the business case for the retailer to get on board your promotion? How is it going to meet their objectives as well as yours? Without retailer buy in, you don’t have an in-store promotion. Here’s how to get it:

· Have a clearly developed retailer business case for the promotion

· Demonstrate a vision for growing the whole category (and therefore their whole store), not just your brand (switch alone to your brand offers no incentive to the retailer to get on board, it doesn’t necessarily increase their profit)

· Tailor your promotional offer for the channel and specifically for their chain or store. Retailers always prefer exclusive promotions, why should they get behind you if you’re doing exactly the same promotion in their competition?

· Add value to the retailer by offering insight about shopper behaviour in your category and channel, and why the promotion will work based on this (see point 2: knowledge-ability)

· Be aware of retailer policies (such as ‘clean store) and match your recommendations to them

· Link your promotional mechanic and ‘big idea’ clearly to retailer objectives. For example, is this promotion designed to increase frequency of purchase within the category? Or grow average weight of purchase? If you’re not clear on what retailer objectives are visit http://www.sh-opportunity.com.au/2009/leveraging-retail-objectives-to-drive-growth-frequency-and-inter-purchase-interval/

KnowledgeAbility

The Knowledge-ability of your promotion is about the depth of insight that underpins it. Promotions that really deliver at the cash register are in-store focussed rather than ‘extensions’ of broader branding campaigns. Some key points:
· Differentiate between the roles of mainstream media and the in-store marketing opportunity. In-store is about conversion not about awareness. Before-store promotion is about awareness. If your campaign is not designed specifically and compellingly to encourage shoppers to pick that item up and put it in their shopping basket, it’s a waste of your money.

· Understand shoppers vs consumers, missions vs occasions. This is the great divide between consumer brand marketing and shopper in-store marketing. Consumption occasions differ from shopper missions – the mission is the kind of shopping trip the shopper is on. It affects all their behaviour in-store, in particular shopper movement, which is critical when designing your retail promotion. There is a tome to be written here in itself, but for a snapshot of shopper trip types visit http://www.sh-opportunity.com.au/2008/its-a-trip/

· Know your category. What is the role of the category? Destination? Impulse? What is the purchase decision hierarchy – how important is quality versus price versus ‘newness’ versus other factors? If you are in a category where price is nowhere near as important as quality and ‘newness’ or ‘buzz’ factor, you wouldn’t run a price promotion, for example. There is also a tome to be written on ‘don’t drop your pants on price because the retailer tells you it’s ALWAYS the most important thing’. It’s not, always. Knowing shopper behaviour in your category also affects the logical locations and adjancencies for your promotions in store.

ShopAbility

This part is where the rubber hits the road: how your promotion is received by shoppers in store. Key things to remember:

· Activate appropriately for the channel. Back to point 1 ‘Retail-ability’. Grocery is different to pharmacy is different to liquor is different to convenience. Shoppers behave differently in each channel. Make sure your promotion demonstrates this knowledge. TorchMedia have been working with Shopportunity for many years on channel intelligence – it’s a key point of difference for their promotions. Ensure your other point of purchase applications are also channel specific.

· Clear messaging. Good point of purchase promotions have a clear and compelling offer, an obvious call to action and ideally a focus on the occasion to establish relevance to the shopper (e.g. ‘dinner tonight’ or ‘entertaining’ or ‘gifting’ etc).

· Placement - Right things for right channels in right places. Again this is about relevance to the shopper. You will need to prioritise; where your product is is most important? You may not be able to have a presence on every step of the shopper’s path to purchase, but at a minimum you do need to be where the key decision is made. Most often that is exactly where your product is located in store.Keep it fresh. Most shoppers visit the same store at least every 2 – 4 weeks depending on the channel. Avoid becoming ‘wallpaper’ – stay visible by changing your promotions frequently.

So in summary, by improving your Retail-Ability, Knowledge-Ability and Shop-Ability, you can expect your next promotion to deliver Profit-Ability at the register! We hope this article has been useful. Feedback and questions are welcome: enquiries@sh-opportunity.com.au or illuminate@torchmedia.com.au

Shopper Marketing: A big elephant.

2009-06-25T18:47:00.009+10:00

What the hell is shopper marketing anyway? Whatever you think it is, I can garauntee you someone else is thinking something completely different.

Maybe comparing those of us in the industry to blind men groping around at the various body parts of an elephant is a little harsh, but nevertheless Chris Hoyt speaks the truth in this article.

Hoyt uses the following activities to describe what shopper marketing consists of:

1) Making it easy for the mutual shopper to find and buy one's brand

2) Extending the equity of one's brands through the door of the store straight up to the point-of-sale (Shopaholic's favourite...)

3) Providing a source of differentiation for both sponsoring brands and participating retailers

4) Activating purchase at the point-of-sale by delighting, engaging and motivating the shopper (like this one too...)

5) Tailoring the above activities to align with the objectives, strategies, platforms and protocols (do’s and don’ts) of different channels, formats and retailers.

Hoyt also provides an interesting analysis of the various "blind men", each with their own skewed perception on what shopper marketing is, or what it means to them. Media agencies, consultants, retailers, marketing departments and sales teams all come under the microscope.

If you fall into any of these categories then it's definitely worth reading the full article. Especially if you find yourself occasionally mistaking an elephants tail for something entirely different.

RTD Tax... Answer to binge drinking or political spin?

2009-05-26T12:09:00.014+10:00

Shopaholic has been out and about of late, schmoozing at industry events and listening to discussions on the latest in industry news.

The latest Liquor Merchants Association of Australia breakfast last week provided an avenue for discussion on the topical problem of binge drinking and the governments “answer” - a tax on RTDs.

Being the newest member of the LMAA, it is only fitting that Shopaholic expresses opinion on these issues.

The lack of personal responsibility in regard to binge drinking was a major issue of conjecture at the breakfast forum. The onus of putting responsibility to the individual has been lost in this debate.

One only has to look at the successful transformation of attitudes for cigarettes and drink driving as evidence. In both these cases the onus was on the individual to take responsibility for their behaviour.

In regard to binge drinking, the government seems to be putting a larger onus on alcohol manufacturers than they are on the individuals who drink to excess.

Sure alcohol marketers have a role to play. They need to ensure they promote responsible service of alcohol and never promote excessive drinking. Marketers need to make sure this is communicated in advertisements and never be open to misinterpretation. But to excessively tax a single product type, certainly does little more than encourage product substitution. It is not helping get to the bottom of this issue.

Until a larger responsibility is placed on the individual and it is an offence to be drunk in a public place, a tax on RTDs is little more than political spin.

P.S Watch out for the June edition of National Liquor News for analysis on how wine marketers can target the next generation of drinkers – the 18 - 25s.

Straight from the shopper's mouth.

2009-05-12T10:11:00.012+10:00

You may have noticed that TorchMedia has recently been spruiking research regarding shopper attitudes towards in-store advertising.

Here’s the low down. A the end of last year, TorchMedia commissioned Directional Insights, a research firm that specialises in shopping behaviour, to carry out interviews and accompanied shops with a cross-section of grocery shoppers, in order to discover the impact of in-store advertising. By accompanied shops I mean they stalked people while they were doing their grocery shopping to observe their behaviour.

Directional Insights then came back to TorchMedia with their findings, including filmed vox pops interviews, which can be found here.

Shopaholic has put together a little summary of the results, the implications for marketers, and some tips on how you can use TorchMedia to tap into shopper attitudes and behaviour.

BETTER THAN TV

Shoppers today are more influenced by in-store media than television commercials. When asked about TV advertising, most shoppers said it has little or no impact on their purchase decisions.

MARKETING IDEA:
Link your TV advertising to your in-store marketing for twice the punch. This is called “pull-through” from the couch to the cash register.

TORCHMEDIA TIP
TorchMedia enables brands to “pull-through” from the couch to the car park to the cash register, with media formats located outside supermarkets at key transit and entry points, and in-store in the aisle and at the cash register.

SPEND IS SOLID

Shoppers say they are spending the same – not less – than before the ‘global financial crisis’. Grocery budgets, unlike other spending behaviour, are holding strong.

MARKETING IDEA:
Use occasion-based messaging in-store to increase your brand’s relevance to a shopper’s life. For example, ‘perfect for when friends drop by’, ‘put one in the kids’ lunchbox’.

TORCHMEDIA TIP
The TorchMedia “Take” format is popular as a way to present recipe ideas and other product usage to shoppers, increasing the relevance of your brand to the shopper’s everyday life.

MORE SHOPPING, MORE OFTEN

While we are trading down in value, we are shopping more often than before. Main grocery buyers are more conducting “top-up shops”, visiting the supermarket once or twice a week to top up on essentials and fresh ingredients.

MARKETING IDEA:
It might be possible to group your brand with complementary products, like pasta and sauce. With more shoppers looking for “dinner tonight”, the right positioning can pay off.

TORCHMEDIA TIP
If product grouping is not possible, why not use in-store media to communicate the link between your brand and a matching product. Decals on floor and fridge can act as a pointer to other products in the store.

THE LIST STILL EXISTS

Shoppers are still using a list – though they only write down categories, not specific brands. This opens up opportunity for marketers to encourage “brand switching” via in-store media.

MARKETING IDEA:
If your messaging is about brand trial and brand switching, make sure your in-store communication is primarily about the product – feature the packaging and even the variant prominently, before you consider brand messaging.

TORCHMEDIA TIP
TorchMedia is now offering sampling in-store alongside its “Take” format at shelf, the perfect complement to show the relevance of your product.

Out with the fear and in with the chocolate pigeons

2009-04-08T11:41:00.012+10:00

Let's keep it topical - everybody, and I mean EVERYBODY, is talking about the looming (current?) recession. Marketers in particular are currently fixated on how to avoid the fiery chasm of brand death.

Do any of these quotes sound familiar?

"When it rains, the fish come out."

"A recession is the cheapest time to gain market share."

"The Chinese word for 'crisis' is composed of two characters, one means 'danger' the other means 'opportunity'."

Despite the apparent misconception surrounding the last quote, the Advertising Age has revealed that maybe the true danger of a recession is not seizing the opportunity. They are currently running a series on thriving in a recession and according to this article, research has shown that brands that cut ad spend in tough economic times inevitably lost share to private labels - even in the supposedly recession-proof categories such as household and personal care.

The advice from Professor Jan-Benedict E.M. Steenkamp? Be brave, spend big on advertising and you will reap the rewards.

On a more chocolatey note, the Outdoor Media Association is calling for entries for the new Outdoor Awards by sending out chocolate pigeons to potential entrants. This follows a roadtrip style drive across Australia promoting the awards and the development of a billboard made up of $10,000 worth of scratchies - which will go to the winner of the awards.

Shopaholic is looking forward to seeing some of the best Out-of-Home creative Australian agencies have to offer and although the awards are tailored towards large format outdoor media, lets hope that Retail OOH formats and not just billboards get a look in (we can always hope!). After all, creativity is just as important in the retail space as it is across any other formats.

Sailing Upwind... With a Retail Media sail

2009-03-09T16:13:00.025+11:00

Shopaholic attended an interesting breakfast seminar last week, put on by the AMI (Australian Marketing Institute) and panelled by a number of experts in the marketing, research and advertising game.

The prevailing sentiment of the addresses and discussion were;

1: Consumers are scared. Even the resilient Gen Ys are now worried about losing their jobs and the general state of the economy.

2: Luxury items are being crossed off the shopping list. Comfort and "cocooning" products are being added (ie chocolate, Playstations, pizza).

3: We are on the precipice of a "consumer revolution".

4: Marketing needs to be transparent, trustworthy and empathetic.

Here are some insights that were presented by Peter Harris, MD of research firm Colmar Brunton.
- 53% of people have cut down spending on luxury (non grocery) items
- Almost 1/2 have cut down on grocery spending
- 75% of people have changed the way they shop
- 58% of people not eating at restaurants
- 55% of people buy on price promotions
- Private label reaching an all time high
- Addiction to discounting can hurt a brand

So how can marketers stay in synch with shoppers without falling into the trap of brand-breaking trap of discounting?

Much of the banter following Peter's presentation revolved around the use of social media and online communities as a means to develop an emotional rapport with consumers and develop a two way relationship. "Deep conversations". Everyone seemed to agree that innovative use of online space was important for brands to develop long-term trust and equity.

Marketing must remind shoppers why they should spend more on their product rather than the cheaper private label next to it on the shelf.

Is opening up conversations online enough to foster this kind of brand support?

When a shopper is standing in the aisle of the supermarket or browsing through beer at the bottleshop, are they going to remember that deep conversation they had while they were sitting at their PC, rummaging through Tweets, Facebook updates, Youtube clips and blog posts?

There would have to be a pretty serious emotional bond there to maintain that connection all the way to cash register.

Maybe a trigger is required while in-store to remind shoppers of those conversations and why they "love" the brand in the first place? Something to remind them why, with so many other options on the shelf, purchasing these products made them happy.

TorchMedia supports Victorian Bushfire Appeal

2009-02-25T15:43:00.005+11:00

http://www.mediaforrelief.com.au/

Media for Relief is an initiative developed by TorchMedia to support the Australian Red Cross Victorian Bushfire Appeal. The initiative involves an online auction of $50,000 worth of retail media space, 100% of the winning bid will be donated to the cause.

“It is the least we can do to help those in need. We have successfully raised $6,000 to date, kindly donated by TorchMedia staff and management. Our goal is to match, if not better that with this initiative” said, Group Marketing Director, Kirsty Dollisson.

“We are expecting a great response and trust that our advertisers will get on board”.

The successful bidder will walk away with a $50,000 media campaign, providing them with access to TorchMedia’s retail Out-of-Home portfolio.

For more information and to make a bid, visit www.mediaforrelief.com.au
Bidding is open until 5pm, 25 March 2009.

Crisis… What crisis?

2009-01-28T12:00:00.012+11:00

The “GFC”… it sounds like a Roald Dahl piece of fiction but in reality is its own self-perpetuating story, one that has dominated headlines around the world for the past 3 months.

While there is no doubt that the global financial sector has taken pretty serious hit since the events of September 2008, the real economy in Australia has luckily been fairly insulated (…so far.)

We can also be thankful that the GFC is now starting to go out of fashion with news editors, bloggers and commentators, who perhaps themselves are starting to tire of all the pessimistic talk. Shoppers are an easily influenced bunch, and with the media slowly moving on to good news stories maybe we can avoid the cycle of negative expectations and business sentiment will follow.

Which brings me, in a round-a-bout way, to another form of media that influences shoppers. Published by global commercial consulting firm Booz&Co in their quarterly business journal, this article provides some excellent insights into how in-store media is being used by marketers to “reach shoppers when it matters most” and why retail media is becoming an increasingly significant part of the marketing mix. Well worth the read.

Optimising Sales And Brands In Liquor Stores

2008-11-20T13:22:00.012+11:00

By Shopportunity: TorchMedia’s shopper behaviour and marketing partners. Visit http://www.sh-opportunity.com.au/

Most adult Australian shoppers visit a liquor store on a regular basis. And they don’t just buy liquor. Manufacturers of ‘impulse purchase’ items have been looking to liquor stores to drive additional value for quite some time - from chocolate-coated macadamias, salmon dips and olives through to chips, soft drinks and dinner party gifts.

So, what do you need to know about this channel to determine whether your brand and category can benefit?

Firstly, the Australian liquor channel is relatively sophisticated on a world scale – particularly when compared to liquor in the USA. In Australia, we have large chains and banners (unlike the USA) and a number of different store formats, each attracting different kind of shoppers and behaviours.

SNAPSHOT: ABOUT LIQUOR SHOPPERS

Who shops in liquor stores?

‘Stand alone’ bottleshops such as Bottlemarts, Liquorland and BWS tend to attract more male shoppers. Drivethru formats in particular skew male. On the other hand, liquor stores that are attached / directly next to supermarkets (such as Woolworths Liquor) are a more even mix, or even skew slightly female.

The core age group in the liquor channel is 25-49 years. There is a cross section of incomes, with no particular income skews (this tends to vary by category and price point, as well as by socioeconomic area).

How do shoppers choose the store?

Firstly, whichever store is closest to work or home or is ‘on the way’ to their dinner destination. Secondly, it must have the range (of recognised brands) the shopper needs– ‘I know that they’re likely to have what I’m looking for.’ A third reason is that staff know and acknowledge the shopper.

Store choice is generally not based on price except when driven by catalogue specials (particularly for scotch) or in lower socio economic areas.

What do shoppers buy?

Ready to drink premixes (RTDs), until the recent tax excise and subsequent price increase, had overtaken full-strength glass spirits and were approaching wine in terms of category size. However the recent price increases have seen RTD sales shift back into glass spirits. The biggest category is beer, followed by wine, then rtd, then glass spirits.
What is bought differs markedly by age bracket and gender – no surprises that male shopping baskets are beer dominant, for example. Female shopping baskets tend to be wine dominant, although a sizeable portion of female shopping baskets include beer because they are shopping for the household. RTDs are mainly purchased by 18-30s, while spirits skew older.

Category trends in the Australian Liquor Channel

There are four main category areas within the liquor channel. Within that, there is a great deal of variety. So what is growing and what is declining?

Beer:
· Imports (Corona, Stella) and domestic premiums (Boags, James Squire, craft beers and microbrews like Little Creatures) are growing at the expense of traditional mainstream heavy beers (VB etc).
· Midstrength beers are also in growth.
· Light beers have been in decline for some time. Shoppers are reducing volume but improving quality (i.e. buying a six pack of Stella rather than a case of VB).

Wine:
· Sparkling and rose wines are growing.
· Specific varieties within table whites and reds are in growth e.g. the rise of Pinot Grigio and Sauvignon Blanc at the expense of Chardonnay, growth of Shiraz, Merlot and blends at the expense of Cabernet.
· Fortifieds (port, sherry, muscats, tokays) have been in long slow decline. All about the $10-$15 price point.

Premix / RTD:
· High ABV (alcohol by volume) products are the growth segment in RTD.

Spirits:
· Vodka, gin, and high-end bourbons the are in growth.
· People are also starting to do more at-home cocktail parties. Here lies an opportunity to do more education at point of purchase with cocktail recipes and accessories.

How do shoppers behave in liquor stores?

Shoppers are only in the store on average for 3-5 minutes, and of that a sizeable chunk of time is standing in the queue. They are on a mission – ‘grab and go’.

Approximately two thirds of shoppers plan their category before they enter the store, and a further two thirds of those have planned down to brand (or a tight repertoire of brands, based on what’s on special, particularly for beer and scotch). So the most powerful place to influence them is directly in front of their destination category. Another place to influence is between the shelf and the cash register (for add on/incremental sales e.g. the chocolate macadamias!).

The role of in store media: influencing the liquor shopper

Liquor stores can be a cluttered and ramshackle sort of environment to shop, depending on the store format. ‘Category management’ as an approach varies in liquor stores for all sorts of reasons, including the fact that suppliers often provide their own RTD fridges and mix up all the categories within them. Because of this, one particularly powerful role for in store media is to help shoppers find what they are looking for quickly and influence them to buy your product over others in their mission category.

When planning your campaign, remember that branding alone is not enough for in store promotion, particularly in stores that already have lots of branded posters plastered about. Your communications need to have a clear call to action as well as a price point. While shoppers may not choose the particular store based on price, they certainly will choose their product on price. Most liquor shoppers go to a store with a category in mind, followed by a price point, and they want the best quality they can get within that price point.

In an ideal world in store media will be based on the shopper occasion. For example, roughly two thirds of bottleshop purchases are for stocking up, but the other one third are for events or occasions of some sort, ranging from low key ‘have a few friends over to watch the footy’ through to special events like 40th birthdays. Can you do an occasion based offer? Party pack? Gifting? Shoppers shopping for events are more likely to buy on impulse, and because they are shopping for others will often buy more ‘special’ brands than they would just for themselves. How can you get them to uptrade brands or packs? How can you get them to increase their average weight of purchase from 1 to 2 items?

This is the role of in store media in the liquor channel. You probably won’t change the category the shopper came in for. But you can influence them to switch brands, trade up based on occasion, buy more items and buy impulse products they had not planned for.

The key is understanding the sales drivers for your particular category and how they overlay with shopper behaviour in the liquor channel.

Happy promotional planning!

What’s New Pussycat?

2008-06-06T09:58:00.008+10:00

Tips for great new product launches without the spilt milk.

By Shopportunity: TorchMedia’s shopper behaviour and marketing partners. Visit http://www.sh-opportunity.com.au/

New product development can be one of the biggest drivers of growth and profit, or it can deplete your time, energy, capital and reputation (with retailers as well as shoppers). So, what tips the scales either way?

#1 What problem are you solving?

Shoppers want solutions, not products. Your value proposition needs to offer a compelling and unique solution to something your shopper wants fixed.

It might be an old and well known problem (like dinner tonight), an increasing ‘problem’ based on a trend (like hassle-free grooming and skin care for him) or you may have identified a completely new problem that is currently not being fixed by any of your competitors. A couple of interesting examples in recent years: DIY pest control guns and BBQ cleaning wipes. Both were developed via looking at behaviour and identifying product gaps that haven’t been filled. People clean their BBQs, yet there were no convenient BBQ cleaning products on the market. So Selley’s stepped in. People have problems with pests, but calling pest control companies is a big, expensive step, and potentially nowhere near as much fun as running around like Indiana Jones. Enter Baygon DIY pest control kits.

Determining with crystal clarity exactly what problem your new product idea will solve is the most important step you can take in your path to successful new product launch.

#2 Who are you solving it for?

Keeping in mind that shoppers and consumers are not always the same (think pet food and kids products for starters), you need to be clear on who benefits from your new product / solution.

- What is the benefit to the end-user?
- What is the benefit to the shopper – the person in store parting with their money?
- Who are both of those people likely to be – what sort of people (age, geodemo, life stage, lifestyle, values etc.)?
- What kind of household are they likely to be in? What are the implications of that for pack, size, format etc (apartments versus McMansions)?

Map your product / solution to your consumer (end-user) and shopper profiles. Make a list of potential marketing implications. This map will be developed further in a moment.

#3 Where do you find them?

Where are your target shoppers most likely to be shopping? This will help you to determine your optimum channel mix for your new product.

What else besides supermarkets do you need to be thinking about? Pharmacies? Liquor stores? Petroleum & Convenience?

To answer this question, go back to the problem you are solving. Where would you look for a product to solve that problem? What sort of shopper ‘mission’ would you be on? E.g. top up shop, emergency item shop, impulse buy etc.

Take your map and extend it to include channel choices. Product X appeals most to Shopper types 1 & 2 and they are most likely to look for it here, here and here because they are already there for reasons a) and b).

#4 What does in-store need to look like?

For a new product launch to succeed, the in-store execution needs to:
- clearly communicate a solution,
- be easy to find and notice amidst the clutter,
- be interesting and engaging enough for the shopper to linger; and
- be as simple as possible. Too much choice is confusing.

Furthermore, it needs to do this in ways that are relevant for how shoppers (and retailers) behave in that particular channel. What works in a supermarket may be very different to what works in Pharmacy, for example. So it’s about thinking through and linking your:
1. Occasion – shopper and consumer (to your)
2. Brand (to your)
3. Pack (to your)
4. Price (to your)
5. Channel.

In the process, thinking about all the drivers across Point of Purchase such as range, space and layout (where should it be located? Next to what?), visibility and merchandising, promotion etc.

The key is simulating an in store environment before making major marketing decisions, so that you can make sure it works in context.

For example, packaging. A good idea is to do shelf simulations – ie your new product/pack laid out in the shelf as it currently stands – to see if it actually stands out. Looking at the packaging of your fantastic new widget in isolation is not enough, as the reality of instore is that shoppers will be seeing it amongst approx 100 other SKUS in your category. Consumer and shopper research companies can help you with in-store shopper simulations – placing your new product/packaging on shelf and seeing if shoppers notice it.

Think about how you can use levers such as Retail Media as directional aids to help the shopper find your solution to their problem. Think about their shopper journey in store and where on that journey are the most important touch points to communicate with them. Retail media needs to have a strong call to action. Simply putting ‘New’ and the price point is not enough. ‘New. Great for XXX purpose. Product name. Special $YY’ is better.

The acid test is:
Will a shopper with this problem to solve find our product? Is it an obvious place to look for that kind of solution? Are we communicating the solution clearly, simply and in an engaging way??

#5 What does before-store need to look like?

Back to the shopper journey – where are these people likely to be coming from? Home? Via car? Car pack? Walking through the shopping mall?

Map out various shopper journey scenarios for each of your shopper profiles and shopping occasions. Then, prioritise the points along that journey as a focus for communication.

You may decide that ‘in the home’ is less important than ‘in the car’ for the particular problem your new product solves, or the other way around. This will affect your media spend: more or less on TV versus billboards etc. At each communication point, focus on how your product solves a problem.

#6 What does after-store need to look like?

One of the keys to successful new product launch is to encourage repeat usage. How does your packaging serve to remind the shopper / consumer of the benefits of your solution / product during in-home usage? Is it clear to see when the product is getting low and needs to be replaced?

New product development and launch can be an exciting time of growth in profits and in brand value. The key to avoiding spilt milk is crystal clarity on who your shoppers are and exactly how your product is a solution to their problem, need, or occasion. Then, communicating that solution benefit simply, effectively, and OFTEN, particularly where it counts the most – in store.

So, time to let the cat out of the bag, then?

Whoops! The most common mistakes at POP.

2008-05-26T17:09:00.005+10:00

By Shopportunity: TorchMedia's shopper behaviour and marketing partners. Visit www.sh-opportunity.com.au

Nobody likes feeling foolish! Here's our heads up on the four most common point of purchase marketing mistakes, so you never have a 'whoops' moment yourself !

That much-bandied-about statistic about 70% of decisions being made at point of purchase has been used to justify all manner of in-store marketing programs. Some work a treat and achieve major sales uplifts; others just don't seem to make an impact. There's no doubt that more companies are spending more money in store, and this is a good thing - people are realising that shoppers are not always the same people as consumers, and you need a shopper marketing strategy as well as consumer. Some things to avoid:

1. Whoops - Made the wrong stuff!

Some in-store campaigns fail because the people who design the creative weren't familiar with the reality of how the channel works or the nature of the environment.

Here's a classic: a new food product that is distributed in supermarkets, petrol stations, food courts and some cafes. The promotions people decide a nice, speccy poster would be a good thing. Big bucks are spent.

Guess what? The supermarkets won't take the poster, neither will the service station (ok, maybe one or two independent convenience stores might), there is no room for posters in any of the food court outlets and the cafes like to look nice and don't want to clutter their walls with advertising.

And now there's a whole pile of posters sitting in a warehouse. Whoops.

How to avoid the whoops:

Map out which channels and channel segments your campaign needs to work in, get out in field and look at them, and talk to retailers about what kinds of things work there. And get on board with production and media companies that have good relationships with those retailers so you can be sure your campaign will get up.
Keep it simple - find out the top three things that work the best in the channel segments you're in, and only produce those. This keeps your ROI at the maximum and helps guarantee your budget for next year.

2. Whoops - Looks great, doesn't get any action out of shoppers!

This one is a big one. Don't blame your promotions / media agency if your campaign didn't work because the messaging your company insisted on using didn't resonate with shoppers.

Many companies are still bending their heads around the difference between shoppers and consumers, and trying to make their consumer or straight branding campaigns work in-store. Sometimes this can work in instances where the shopper and consumer are the same or when the branding execution is tailored to suit the environment - but many times it just uses up your precious budget and doesn't really achieve the intended result.

How to avoid the whoops:

Be crystal clear on exactly what you want the retail media to achieve. Is it driving trial of a new product? Education to get over misperceptions of the product and buy? Brand switch within a category? Reminder e.g. during top up shop? Prompt impulse buys? Keep in mind that in-store marketing is about conversion, where before-store marketing is about awareness. A clear call-to-action is needed. Tell your shoppers what they are supposed to do about it.
Understand the shopper purchase decision hierarchy for your particular product (do some shopper research). Is brand more important than price for your shoppers, or the other way around? Is flavour variant the key decision-making factor first? Why do you need to know this? Firstly, so you can determine whether a price promotion will actually work for your particular product - many companies assume in-store marketing is always about price points - not necessarily (especially for premium products). Classic example: a holiday promotion wrap around a can, that actually covered the flavour variant indicator on the pack. Sales went down. Whoops. Solution - use in-store media.
A picture paints a thousand words! The more you can deliver your message through pictures, the better. Shoppers don't have time in-store to read lots of text - and 'lots of text' on retail media equals more than about four words!

3. Whoops - Nobody saw it!

Another biggie. Great idea, wrong place. Very common!

How to avoid the whoops:

Back to knowing how shoppers shop in your channel and category. Most often, your efforts need to be focused where your category is located, which is where the majority of your shoppers are. For example, in the aisle at supermarkets - which is also where shoppers spend the most decision-making time. Next most important is on the path to purchase between your category and the counter e.g. back to the supermarket scenario. gondola ends at front of store near the checkouts (if you can afford them! - also think about relevant category adjacencies for your off-location displays and complimentary media placement in-store - places where your shoppers might look for a similar product). Then at the counter / checkout itself, for impulse items you can purchase there. Then path to purchase between the entry and your category, and entry altogether (of shopping mall, car park etc.). The main thing to remember is to put most of your money where most of your shoppers are: at the category.
Don't do wallpaper. Shoppers generally have a repertoire of stores they visit very regularly. If your campaign is up longer than a month it will become wallpaper - invisible - consider creative/copy changes.

4. Whoops - It didn't make any impact!

Ok, now here's the biggest one of the lot. If you have eliminated all of the above reasons for this - you made the right stuff, messaged it correctly, put it in the right place and followed through to ensure it got up. But it doesn't seem to be doing a hell of a lot.

How to avoid the whoops:

What was your budget for this campaign? And how does that compare to your before-store consumer promotions? If you're expecting miraculous sales uplifts for 5% of what you spend on other forms of advertising, think again. A couple of bits and bobs in-store for a couple of weeks just won't cut the mustard. Have a think about where your marketing budget priorities lie. If shoppers actually buy your product in-store, but your in-store marketing budget is the very poor cousin of your broader consumer-based marketing program, why is that? Does it need to change? Don't abandon your shoppers when they are in store - this is where the rubber actually hits the road, right? Avoid a no-impact whoops and allocate a decent retail media budget.

So, here's to whoops-free marketing in the retail space for the rest of the year!

Bring back the Romance: has the thrill gone for your shoppers?

2008-02-14T10:40:00.001+11:00

By Shopportunity: TorchMedia’s shopper behaviour and marketing partners. Visit www.sh-opportunity.com.au

Valentine’s Day reminds us that a little emotional connection goes a long way, and not just on one day of the year! How emotionally connected are your shoppers with your category and brand, and what should you do about it?

Well, Nielsen research in 2007 introduced the concept of ‘Shopper Modality’ – the fact that shoppers have varying degrees of emotional involvement in the products they buy, and different shopping habits associated with them. What you need to do in store to optimise sales changes according to which mode your shoppers are in when considering purchases in your category.
Here’s our Valentine’s Day edition of Nielsen’s four shopper modes, and how you can bring a little more lurrrrve to the shopping equation!

The four shopper modes:

1: Just not that into you!

It’s your worst Valentine’s Day nightmare – your date is just not emotionally connected.
In shopper land, Nielsen calls this the Auto Pilot mode – shoppers just want to grab and go, and they’re not emotionally switched on by the category (type of product). Old habits die hard in this mode, with shoppers buying the brand they know. Example products that fall into this shopper mode include margarine, bottled water, nuts, coffee, carbonated soft drinks, hot cereal and cheese.
But here’s the good news - Nielsen has also demonstrated that shopper Auto pilot mode can be interrupted. In store triggers are:• Merchandising• Packaging• Promotions• Price• Out of Stocks (trigger annoyance emotion!)
So what do you do when your shoppers just aren’t that into you? Provide strong brand reminder and navigation assistance in store to direct them to their brand of choice, fast. Directional, strongly branded floor and shelf media can assist (preferably with a price promotion in this instance), along with differentiated packaging, merchandising and display.
In essence: remind them why they got into you in the first place, and where to find you now, incase they’ve forgotten.

2: You’re so hot right now!

It’s kind of dreamy, but you know it won’t last – so you ‘make hay while the sun shines’ before they move on to the next more interesting fling.
Nielsen calls this the ‘Buzz-activated’ mode, where the shopper seeks the latest ‘must have’ hype and is fully engaged by ‘buzz’ advertising. Product categories that currently fall into this mode, but will surely change with the next round of ‘newer and better’ include: ready to drink tea, smoothies / yoghurt drinks, sports drinks, energy drinks and chocolate.
How do you capitalize on your opportunities in store if your product is in one of these kinds of categories? By generating excitement and showing innovation.
In store media and all point of purchase communication can afford to be OTT (the latest acronym for over the top, bound to be used by these shoppers!). Say it loud, forget facts and information and focus on pure emotion.
And keep innovating so you have a ‘new thing’ when the gloss wears off and you’re on the scrap heap!

3: Bring back the thrill...

It’s been a long relationship. Loyal, trusting and safe, but geez, romance is not its strong point. Time to bring back the thrill!
Nielsen calls this shopper mode ‘Variety-activated’. The shopper seeks new tastes, flavours and formats of the same trusted products – something new to take home. Products that are shopped in this mode include cookies, salad dressing, chewing gum, salty snacks, breakfast bars, cold cereal, some frozen foods and candy.
What to do before store? Develop new flavour and pack variants. What to do in store? Communicate surprise and boredom relief. Use your in store media and point of purchase promotions to clearly demonstrate that there is now something new to take home from the same trusted brand.
In short: spice it up a little!

4: Dinner’s on you.

You know the drill here – at the end of the day it’s just all about the money.
Nielsen names this ‘Bargain-activated’ shopper mode, and it doesn’t take a rocket scientist to figure out that price and price promotion are really the only effective means to optimize sales when your product falls into this category. Example products include pasta sauce and canned foods like tuna, tomatoes and canned fruit.What to do in store? The clearest, loudest price promotion you can manage. Don’t waste your in store media and promotions on pure branding here. There needs to be a strong price-oriented call to action on every piece of communication.
Moral of the story: No morals - Just money!

So, may you have a Happy Valentine’s Day…… and a happy, healthy ‘relationship’ with your shoppers!

How do you cut through the clutter to engage and convert Christmas shoppers?

2007-11-30T13:46:00.001+11:00

See if these shopper behaviour tips in the mall, grocery, petro-convenience and liquor channels light your tree. There’s one for each of the 12 days of Christmas! By Shopportunity: TorchMedia’s shopper behaviour and marketing partners.Visit www.sh-opportunity.com.au

* One: People are home less often – they are shopping and at social occasions.

The marketing mix therefore needs to prioritise in store and out of home media and point of purchase execution. Note television moves to ‘summer programming’ – read ‘less people watching’...

* Two: Shopping mall traffic increases by 25% over the season and 35% in the last two weeks of December.

At Christmas you can reach more shoppers more directly than at any other time of year! But visibility is critical. Map out the key shopper touchpoints in the centre for your category, and make sure you have visibility there with a strong call to action.

*Three: Shoppers shop by occasion.

To achieve cut through at this time, you need to map out who is likely to buy your product, for whom, and why – what is the occasion or problem? Then focus your marketing and media message on how your product is the solution (e.g. ‘Christmas dinner’ or ‘buying for Mum’).

*Four: Shoppers shop different categories differently in store.

Think about where in store the purchase decision is most likely to be made. Front of store (like gift box sets)? In the aisle? At a gondola end or display? Ensure you are communicating with your shopper where it really counts.

*Five: 83% of women and 75% of men visit a shopping centre once a fortnight.

Don’t forget the men! Are you a ‘buying for her’ category? Spell it out. Help the blokes find you using directional media placement and occasion-based messaging.

*Six: 84% of people come by car to a shopping centre – and the further they travel to get there, the more they spend.

Make sure you have a strong offer and call to action in the car park and entrance!

*Seven: Purchases of $200 or more go up by 14%.

Know your category. If you’re a premium product it’s not about price at this time. Communicate quality and ‘specialness’ for gifting in your media messaging.

*Eight: 9 in 10 people deviate from their shopping list (either written or mental).

Shoppers are open to impulse at this time of year more than ever. Are you an impulse category? Use retail media as a reminder at point of purchase. ‘Have you got your X?’

*Nine: In the supermarket aisles: up to half of shoppers browse a category but walk away without anything!

The role of floor and shelf media in the aisle - convert the shopper before they walk away! Use floor and shelf media to shout the messages you can’t always shout from the pack.

*Ten: Shoppers in the petro-convenience channel are in a hurry; they spend less than seven minutes in store!

The biggest challenge is how to get them to see you in the first place. Repeat messaging is the key. Start at the bowser and follow through, communicating at each shopper touchpoint.

*Eleven: Shoppers in petro-convenience at this time are often husbands / male partners sent on drinks & ice runs.

Male shoppers are less price conscious. Show him bulk packs and use directional floor media so he can find them fast.

*Twelve: More than 80% of shoppers in bottle shops next to supermarkets come directly from the supermarket in to the liquor store.

Use brand visibility at store entrance (on floor) to capture the shoppers as they arrive from the supermarket – wielding a trolley and looking at the floor…

We wish you a merry Christmas, strong sales uplifts and a partridge in a pear tree!