Centers of Excellence: Shopper Marketing/Retail
Neighborhood Retailers Create New Uses for Promotion
Posted by Deborah Martin in Promotion tactics, Shopper Marketing/Retail, Uncategorized, couponing on August 19th, 2010
Just last week, I noted the use of two promotion tactics, traditionally used
by product manufacturers and big retailers, now supporting the service
industry and neighborhood retailers. CVS had a direct mail coupon flyer
with two 20% off coupons — each good on one day only for the pharmacy with
a bonus coupon for talking to the pharmacist, which required his initials.
CPG coupons for the drug store - not new - but a chat with the pharmacist?
The other interesting approach is Discover Card’s promotion of neighborhood
dry cleaning services. Distributed in a full page FSI, Discover Card is
offering five entries to win $1 million if you use your card with a dry
cleaning, tailoring, or laundry service. Interesting idea, promoting an
industry segment of service providers, not a specific brand. I wondered if
they were approached by a national association for dry cleaning to help
promote their members!
What’s next? Meet the accountant, dentist, doctor, personal trainer? Use
your credit card at shoe makers, barber shops, nail salons?
It’s interesting to see traditional tactics morph into a new use. — Bonnie Carlson, President, PMA
Shopper Marketing Takes the Lead
Posted by Rob Fields in Shopper Marketing/Retail on June 8th, 2010
In Advertising Age, SymphonyIRI’s Robert Holston writes:
The past five years has seen a refocus on the store as fertile ground for brand marketers with the advent of shopper marketing and the ability to leverage new insights and develop much more customized programs for customers. While the clear economic benefits from shopper marketing have been elusive for many, the true value of the past five years of the shopper-marketing craze just might be the mind-set change it has brought to CPG manufacturers in helping them migrate away from mass-market brand and execution.
To this, he suggests the following approach for marketers looking to leverage the opportunity that the store presents:
- Create a shopper-centric segmentation model
- Integrate both consumer and shopper understanding.
- Conduct economic modeling
- Plan for scale implementation
- Plan collaboratively
- Monitor and evaluate
Consumers Bullish on Store Brands
Posted by Rob Fields in Consumer Insights, Shopper Marketing/Retail on April 9th, 2010
Globally, consumers feel strongly that store brands are as good as, or in some cases, better than, national brands. That’s a key finding from a recently completed 23-country survey compiled by Ipsos Marketing. According to the report:
At least 80% of global consumers indicated that store brands are the same as or better than national brands on many dimensions, most notably meeting their needs, offering convenience, being good for their families, caring about the environment and exuding trust.
Further, Gail Aitchison, President of Ipsos Marketing, Global Shopper & Retail Research, says:
“The level of trust in store brands across many different product areas at a time of distrust in other sectors like banking may mean that shoppers may be less likely to return to more expensive brands in the future unless the benefits really outweigh the cost – and these will tend to be emotional benefits rather than functional benefits.”
The report also suggest that national brands still maintain an edge in “packaging, innovation, uniqueness and quality.”
Download the executive summary of the report here. Hat tip to Adweek.
SLIDES: The Promise+Pitfalls of Retailer/Vendor Collaboration
Posted by Rob Fields in Shopper Marketing/Retail on October 20th, 2009
This is a recent presentation that was given by PMA President Bonnie Carlson and RPM Connect President Joe Robinson at the recent IIR Shopper Marketing Conference. The presentation focused on four (4) areas of opportunity:
- Aligning objectives
- Aligning metrics for evaluation
- Using the retailer’s segmentation
- Joint planning/joint post-program evaluation
Each section is followed by a case study that highlights results of when the insights were put into action.
WEBINAR: A Fresh Look At In-Store Sampling
Posted by Rob Fields in Promotion tactics, Shopper Marketing/Retail, sampling on October 15th, 2009
Back in August, we highlighted the release of the first Report on In-Store Sampling Effectiveness (R.I.S.E.) that was conducted by Promoworks and Knowledge Network/PDI and shows that it’s time to rethink marketing’s approach to sampling.
We’re thrilled two leaders from both of those companies are joining us for a Webinar today to take a more in-depth look at the study and answer your questions about it. The Webinar starts at 2PM EST and will be conducted by Neal Heffernan of Knowledge Networks/ PDI and Jim Rollberg of Promoworks.
New study redefines role and impact of in-store sampling
Posted by Rob Fields in Experiential Marketing, Promotion tactics, Shopper Marketing/Retail, sampling on August 13th, 2009
As marketers seek every opportunity to get closer to their consumer either online or offline, a traditional “old school” marketing tactic has been proven to be more effective and affordable than ever believed possible.
A new study called R.I.S.E (Report on In-Store Effectiveness) was commissed by PMA member Promoworks and the In-Store Marketing Institute, and conducted by research firm Knowledge Networks-PDI. Results of the study include:
- In-store sampling works—driving trial and sales. The average cumulative trial for the sampled items was +58% over 20 weeks. Sampled items in multiple categories showed an average +475% cumulative sales lift on the day of event.
- In-store sampling impacts sales in ways never thought possible:
- In-store sampling drives additional repeat purchase. The average cumulative first repeat purchase for sampled products was +11% and +6% for the brand franchise over a 20 week period.
- In-store sampling drives sales for existing products and line extensions. The sales lift for the existing product sampled was +177% for day of event and +57% after a 20 week period. The sales lift for the line extension product sampled was +919% for day of event and +107% after a 20 week period.
- In-store sampling drives brand franchise trial and sales. The sampling was found to have a significant impact for the parent brand of the sampled products with +107% average sales lift on the day of event and +21% average sales lift after a 20 week period. The average cumulative trial for the brand franchise was +19% over a 20 week period.
- In-store sampling delivers new buyers - to the sampled items and to the brand franchise1.The average cumulative new buyers for sample products was +85% and +23% for the brand franchise over a 20 week period.
- In-store sampling increases the average household shopping basket size. As a result of the sampling event the involved consumers’ overall shopping basket expenditure increased +10%, as compared to the average frequent shopper basket in the participating retailer. This suggests sampling contributes to incremental growth and does not cannibalize other items within the brands’ own franchise.
- In-store sampling impacts sales long after the day of event, making it incredibly cost effective. By utilizing frequent shopper data, the actual sales impact of the in-store sampling can now be measured. Over the 20-week period, the sampled items saw an average cumulative sales lift of +74%. In-store sampling’s cost effectiveness when applied to all of sampling’s benefits over time is extraordinary.
July ‘09 Economic and Consumer Insights from BIGresearch
Posted by Rob Fields in Consumer Insights, Shopper Marketing/Retail on July 14th, 2009
Economy
With trying times marching on and the economic stimulus package yet to affect those on Main Street, consumer outlook for the future economy dwindles…this month, about two in five (44.6%) indicate they believe the post-recession economy will eventually rebound to previous levels, off from the nearly half (49.7%) who indicated the same back in March. One in four (26.0%) say the economy won’t rebound, up from the March reading (21.9%), while 29.4% still aren’t sure (v. 28.4%).
Not surprisingly, those focused on needs over wants increases as well…in July, three in five (59.9%) maintain they zero in on the necessities when shopping, up nearly five points from June (55.0%) and on the rise from a year ago (58.1%) as well.
More evidence that consumer spending will endure long-term restructuring: about nine in ten (88.9%) believe the current economic crisis will impact their lifestyles over the next five years…the majority (52.1%) simply plans to consider each purchase more carefully, while almost as many (48.8%) intend to be more price-conscious when buying food and clothing. Additional plans include sticking to a budget (46.7%), dining out less (45.2%), and not racking up a large amount of credit card debt (42.4%):
Retail/Holiday ’09 Outlook
While the kiddies just begun their summer break, anxious retailers have their sights set on Holiday ’09 – and rightfully so, according to consumers…more than one in three (36.2%) contend that they will spend less this holiday season compared to last, while a paltry 2.7% anticipates spending more and one in four (26.1%) plans to spend the same. (29.1% say it’s too early to know and 5.8% don’t celebrate the season).
Among those planning to spend less for Holiday ’09, how can we expect these consumers to go about doing this? The majority (69.1%) they will just slash their budgets altogether, while other plans of action include only buying gifts on sale (48.3%), doing more comparison shopping (40.4%), buying for fewer relatives (32.4%), and gifting to fewer friends (30.7%)
Personal/Financial
Relatively affordable pump prices haven’t lured consumers into a false sense of security…three in five (59.0%) contend that gas prices will continue to rise through the beginning of August, while 31.7% anticipates they will remain the same…only one in ten (9.3%) is holding out for a decline. Drivers are estimating an average price of $2.98/gal come August 1, about a dime lower than the Independence Day forecast.
More details from BIGresearch’s July Executive Briefing are here.
PMA members dominate the 2009 PROMO100 Awards
Posted by Rob Fields in Digital Marketing, Entertainment Marketing, Experiential Marketing, Marketing Accountability, Shopper Marketing/Retail on June 5th, 2009
We’re happy to report that PMA members ranked extremely well in the 2009 PROMO100 awards, which were announced earlier this week, with Catapult Action-Based Marketing taking the award for Agency of the Year.
Other highlights:
50% of the Top 10: #1 DraftFCB, #2 Digitas, #5 G2 Worldwide, #9 The Integer Group, and #10 Momentum
Those numbers hold up well over the entire list:
- Top 20: 13 PMA Members - 65%
- Top 50: 28 PMA Members - 56%
- Top 100: 45 PMA Members - 45%
Congrats to all of our members!
You can download the entire list here. Even though the Webinar has passed, login and look for a button on the right that says “download PDF”.
SLIDES: PMA 2009 Shopper Marketing Study
Posted by Rob Fields in Shopper Marketing/Retail on May 7th, 2009
ConAgra’s Rick Abens, who’s also the PMA VP of Research, presented the following recap of our Shopper Marketing Study, Year 2 at the recent 2009 Shopper Marketing Summit.
Here’s the intro to the study’s summary that was published in Brandweek:
Shopper marketing is taking our companies in the right direction at least that’s the perception among manufacturers and retailers who are actively practicing shopper marketing. According to the Promotion Marketing Association’s (PMA) 2nd Annual Shopper Marketing Study, investments in Shopper Insights capabilities are clearly paying off for the industry as half of the companies practicing shopper marketing feel they have a very good understanding of their shoppers, representing a significant increase from last year.
Despite this encouraging news, 82 percent of the industry still feels further improvement in retailer-manufacturer collaboration is needed. There was little difference between retailers (78 percent) and manufacturers (87 percent) in their expression of this need.
The good news is that survey respondents have indicated there are three areas that, if improved, will lead to more effective shopper marketing collaboration between manufacturers and retailers. The three key areas are:
- Common metrics, or lack thereof
- Post promotion evaluation
- Longer-term joint planning
With this in mind, more companies could potentially see ROIs in the range of 5-to-1 that the best practitioners are achieving.
Download the slides here:
Results of The Hub’s 2009 Shopper Marketing Survey Revealed
Posted by Rob Fields in Shopper Marketing/Retail on May 7th, 2009
Bonnie Carlson interviews The Hub’s Tim Manners 2009 from PMA IntegratedMarketing on Vimeo.
PMA President Bonnie Carlson talks with The Hub’s Tim Manners about his publication’s annual shopper marketing survey of the best practitioners on both the agency and client sides of the business.
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