Shopper Marketing: Change the Experience, Experience the Change

Walking through a Whole Foods grocery store a few weeks ago got me observing some interesting things.  Have you ever noticed that refrigerated vegetable shelving has mirrors behind it?  That the international aisle has a different “look and feel” compared to other aisles?  That Burt’s Bees products have their own customized display?  As a marketer, these things caught my attention as efforts to attract consumers through a relatively new concept called shopper marketing.  Deloitte’s publication “Shopper Marketing:  Capturing a Shopper’s Mind, Heart and Wallet” defines shopper marketing:

“…all marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper and lead him/her to make a purchase”

Companies have traditionally focused on using research methods to tap into consumers’ behaviors and attitudes solely toward products and services.  Industry standard led us to believe that focusing on products alone was sufficient.  We’ve been fooled!  Understanding the customers shopping experience is critical to developing an optimal environment to reach consumers, building brand equity and encouraging product purchases.  According to Vice President of Shopper Marketing at Coca-Cola North America Diane Wallace, “shopper marketing is the next big step in the evolution of strategic retail marketing”.  But the In-Store Marketing Institute recently found that only 55% of consumer packaged goods companies have done anything to develop expertise in shopper marketing.  So, why isn’t shopper marketing used more?  What’s the catch?

In fact, leading consumer packaged goods companies are focusing more attention on shopper marketing, explained by the 2004 to 2010E 21% and 26% CAGR of shopper marketing spending from manufacturers and retailers, respectively.  Yet many competitors still aren’t involved in shopper marketing because it requires complex transformational change that disrupts traditional marketing and sales status quos, budgets, funding structures, processes, metrics and incentives.  Most importantly, implementing shopper marketing requires scarce skill and experience, particularly for consistent in-store execution and understanding performance metrics.  While many ponder the risks, innovative competitors are using shopper marketing as a differentiator that is launching them ahead and leaving hesitators in the dust.

In the near future, shopper marketing is expected to spread throughout the consumer packaged goods industries, become a more prominent part of the marketing mix and implement better infrastructures in regards to retailer/manufacturer collaboration, insights, targeting, measurements and technologies.  With 42% of leaders understanding the importance of shopper marketing, organizations are finally giving it due attention.  Looking forward, in-depth shopper marketing insights and research should facilitate organizations’ implementation of shopper marketing and aid in the difficult transition they face now.  So, as you stroll down supermarket aisles in the near future, you might notice you’ve developed an unexplained brand loyalty to Unilever products, cutting edge Coca-Cola displays grab your attention for the first time, and dim lighting and music put you in a pleasant mood.  Accident?  Of course not.  It’s just you experiencing the change of a changed experience.

Contributed by Kelsey Valentine, Associate, Synovate Customer Experience

Comments

[Red Wing Boots]

thanks for your article,like your blog very much,well done

[Jimmy Choo Chaussures]

HHH Yes, the design of national policy is important, how our economic development plans for the next five years, how the implementation, how to make our economy even faster. Are designed to advance our focus to invest money in what ways it should be carefully arranged.

[honolulu federal criminal defense attorney]

An heir is an individual who has been named as the one who will inherit the decedent's property.