Shoppers are bombarded with thousands of messages in store with brands aggressively vying to grab attention by shouting the loudest. Unfortunately most of what they say is falling on deaf ears. In arguably the most valuable communication space in the Consumer Packaged Goods (CPG) marketing mix, the bulk of communication in store is never noted because most don’t speak to the shopper. Continue reading
I’ve bought all my instant coffee for a year. I’m not a bargain hunter, a fickle switcher nor pantry-filler. I’m a cross-shopper. A cross-shopper that does keep his eye on the most expensive goods that frequents his basket.
I typically patronize three different stores for my monthly and weekly shopping trips. One is a destination for my fresh produce; the other for the remainder of my weekly perishables, and my monthly destination is mainly for cleaning materials, condiments, health and beauty. My monthly trip also included instant coffee for the month (I buy two jars a month) until I found it at a consistently better price at my fresh produce destination.
To my surprise, at the end of July, I stumbled across this gondola end with a great offer. Buy two for R150 and save R49.90 (33% saving). I’ve seen a 10% discount offered before to loyalty cardholders and figured it was a month-end promotion so I bought four. Then two weeks later, mid-month, I see the special again and then buy a whole lot more. As a shopper, I have won but have the retailer and the brand? Continue reading
Recently I stumbled upon one of the best ideas I’ve seen in store this year that drives a new consumption occasion. Ok, so I’m guessing one takes a Magnum, pops it into a mug, turns-on the microwave, stirs with ice cream stick and voilà, instant hot chocolate heaven. As exciting as this new idea is, I need to question why the execution fell short?
Now, before we unpack the execution, let’s revel for a moment in the sheer genius behind the idea. In their book, The Shopper Marketing Revolution, Mike Anthony & Toby Desforges state that the foundation of consummate shopper marketing in their Total Marketing model, must always begin with the identification and targeting of consumption opportunities. In order to drive consumption, one can acquire new consumers, get existing ones to increase purchase frequency or use larger quantities for each (or new) usage occasions. If you can just tick two of these, you’re on track for explosive growth. With the Magnum initiative, Unilever definitely has hit two of the above. What’s more, we need to give them extra kudos for attacking their main ice cream competitor in another category – hot beverages. Continue reading
The consumer goods industry’s growth has slowed to an all-time low in recent years. The top global 250 companies have grown by just 0.3% in 2012. With margins under continued pressure from growth of mega-retailers, hyper competition, explosive increases in input costs, and declining effectiveness in traditional marketing methods the future for the industry looks glum.
“We estimate that the global top 250 consumer goods companies spend US$320 billion a year in retail. Research that we’ve been involved in shows that 70% of that money doesn’t pay back,” says Toby.
The authors cite two major contributors to the haemorrhaging. The first is that the majority are still using a marketing model based on yesteryear. The second is that as a result of an out-dated model, sales, marketing and key accounts continue to operate in silos with their own agendas. Continue reading
Eighty percent is probably a conservative figure when it comes to evaluating efficacy of messaging and design in the in-store environment. Whether it’s point of purchase displays, category banners, point of sale material, window display, digital display or even packaging, the majority are getting it wrong.
This shouldn’t be the case. With all the science, research and behavioural insights one has access to, versus a decade ago, I believe we should be doing a much better job. So what has been the major obstacle? In two words, domain and education. Continue reading
One of my greatest frustrations is shopping for wine. I, like most winers, have my favourites but I’m also a variety seeker. And in a self-service environment, I can go to a number of stores/channels in close proximity that stock my favourites. But as a variety-seeking wine shopper, no one store is speaking to me.
Shopper marketing is a practical discipline; it shouldn’t be complicated and convoluted. If you’ve walked the floor and you are a resolute experimenter, backed by a tenacious attitude and reasonable on-the-ground retail experience, then you probably have the credentials to become a great shopper marketer. Continue reading