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.
It’s not often that I share or write about sublime shopper executions but this initiative blew me away. In fact, this is a first for me where the traditional mannequin becomes an interactive shopper information and engagement tool. Read more.
Forget Category Captains. We need Category Lieutenants:
The retailer is interested in the consumers’ behaviour in each of the two or three hundred categories it offers, but owing to a lack of critical mass in each category, the retailer does not have the budget or the personnel to discover the information. However, for a manufacturer, concentrating on a small set of categories, it is worthwhile. Another approach is to become category lieutenants. This is where a smaller supplier looks to complement the category captain by providing niche brands where the captain is weak or absent, and perhaps offering me-toos to reduce the dominance of the Category Captain
“But is trade spend paying back? The evidence suggests not. One AC Nielsen study suggested that 90% of trade-marketing initiatives do not produce a positive ROI. While a staggering 40% of items
sold in US supermarkets were on promotion.”—Store Wars: The FMCG Battle for In-store and Online Success
“Total global trade spend is now estimated to be over $125 billion, well above the total profits of the major retailers, and McKinsey estimate it to be typically 30% of an FMCG manufacturer’s cost base, second only to the cost of goods at 40%. Most manufacturers now spend more on trade marketing than brand/ consumer marketing”—Store Wars: The FMCG Battle for In-store and Online Success
“3,200 Members in the Private Label Manufacturers Association. The market to supply private label is competitive - private label sales were more than US$60 billion in 2011 and no manufacturer
can expect to succeed if their approach is half-hearted.”—Store Wars: The FMCG Battle for In-store and Online Success
“The most vulnerable brands to private label are not the strongest but the weakest. Manufacturers have one advantage that can never be overcome if used witli focus, vigour and investment and that is innovation. Yogurt, seemingly an ideal category for private label to take the lion’s share, has seen private label share decline. The top-five leaders, Danone, Yoplait/Sodiaal, Yalkult Honsha, Nestle and Muller represent half of all yogurt sales. Their innovation has been developing premium products, like pro-biotic yogurt and yogurt enhanced witli fruit, and tliey launch continually; between 2006 and 2010 Danone introduced nine new products.”—http://ow.ly/d8Epf
“No matter how large and enlightened retailers become, they remain generalists, and there are things that are difficult for them to do as well as a manufacturer. In particular retailers cannot:
- Always get the quality they want.
- Advertise specific functions of a brand.
- Create a strong, emotional brand image.
- Give a sense of wide choice.
- Invest in deep understanding of consumer behaviour in all product fields that they operate.”—Store Wars: The Worldwide Battle for Mindspace and Shelfspace, Online and In-store
“The damage done over time by a price war is twofold: everybody loses money unless there is dramatic growth in the overall market, and it can destroy the brand equities built during orderly competition.”—Store Wars
“Within FMCG categories, breakthrough performance from new products has always been difficult to achieve and seems to be getting harder. In the United States, on average, nearly 80% of new product introductions fail to generate more than $ 7.5 million in first-year sales, with less than 3% of products achieving ‘mega hit’ status of over $ 50 million in first-year sales.”—Store Wars
“It is estimated that 97% of new products are not genuine innovations. The failure rate of new products is extremely high, around 90% two years after launch, so even though differentiated brands on the whole perform better than me-toos, me-toos are common in markets where innovation is slowing down.”—Store Wars
“P&G and Coca-Cola leveraged a profound consumer insight: shoppers don’t buy products, they buy benefits. To get the most benefit from a segmentation strategy, marketers must focus on why consumers buy, not what they buy or who they are.”—Store Wars
“In a six-month period, 90% of German households visit an Aldi store. Thus the Aldi brand with the cheapest positioning, has an almost universal penetration among the richest population in Europe who are unwavering in their support of premium brands such as Mercedes, BMW and Audi.”—Store Wars
Five of the top eight FMCG manufacturers globally are retailers. This is according to Greg Thain and John Bradley who’ve just launched Store Wars: The Worldwide Battle for Mindspace and Shelfspace, Online and In-store.
I’m nearly halfway through, and although much of what is put forward will already be known by seasoned FMCG professionals, the book has an uncanny effect of sharply reiterating the future realities manufacturers face. We’ve all seen it on the horizon, debated it ad infinitum, yet there is still an apathetic approach for next retail revolution already in motion. Read more.
If you’re giving something away you have nothing to say?
“If you’re giving something away you have nothing to say”, is the first thing I used to fire back at the marketing teams. There was this incessant desire to find something to say and attract consumers (rather than shoppers) usually through discounted price and/or a convoluted competition. Often this is at the expense of previously successful mechanics and to the detriment of increased return on investment (ROI). Click here for more.
Packaging is the most important media in fast moving consumer goods. Yet, in most cases it doesn’t garner the attention, investment and resource it deserves. This is the hardest working vehicle at grocer retail – 365/24/7 and often the shopper’s first interaction with a product.
So why is the whole packaging process so consumer-centric? Why does a new product launch budget absolutely eclipse the investment in packaging research, testing and validation? The simple answer is context. No doubt everyone will tell you how important they think packaging is. They will frame its significance around additional marketing support, increased usage occasions and how important it is to the mix.
Gondola Ends, End Caps, end-of-aisle displays. Whatever you call them. Treasure, appreciate, respect, dress and love them. They don’t come around as often as you’d like, so give them a big hug and don’t let them go. More
Johannesburg, South Africa. Radio Interview - 702 - Shopper Marketing. Last week we spoke to Craig Page-Lee of Posterscope SA in the first of our series of insights into consumer behavior. Craig spoke about outdoor billboards and how their position very much dictates what they communicate. Those far from malls and high streets will contain different messages from those alongside malls – or even inside malls. Today they took a different tangent and spoke to the Integer Group resides at the intersection of branding and selling and their new MD is Jason Frichol.
I work in one city and live in another. I rent a car nearly every week and usually opt for the two lowest classes, either a 1.3 or 1.4-litre engine choosing air-conditioning for a little extra in the summer months. Last week I had a pleasant surprise.
Open the boot, lots of space. I turn on the engine and the instruments light up. I’m already impressed by the digital display and beautifully crafted instrumentation. It’s spacious and it has multi-functional steering wheel. I drive her out of the lot; it’s a smooth drive. As I hit the highway, I decide to open her up (a little). Digital instrumentation is telling me to put her into sixth gear. This is definitely not the 1.4 litre that I usually get. The car rental company must have given me an upgrade. I was wrong. More