1. Shopper marketing is seen as an increasingly important area for investment and competitive advantage by manufacturers, retailers, and consumers.
2. While there is enthusiasm for shopper marketing, effectively implementing shopper strategies remains a challenge due to the complexity of influencing shoppers in-store.
3. Future directions for shopper marketing include better integrating insights across the value chain, engaging shoppers through innovative in-store solutions, and aligning shopper strategies with broader marketing efforts.
2. Shopper Break Out Sessions
BO 1.5 - Shopper is King; is your business ready ?
BO 2.5 - Target Shoppers, Activate Insights
BO 3.5 - “Differentiate or Die”; Shopping driven solutions
BO 4.5 - What’s it worth ? Shopping Metrics
2
4. Creating Shopping Value
Usage Value Creation
1
Usage
Value
Shopping Missions
To
lt y
Shopper Segments
-S Store Choice
ya to
Lo re
CONSUMER
3 2
Transaction Store
Value In-Store Value
Category Management
Assortment
Merchandising
Shopping Value Creation
5. Today’s session:
Shopper is King; is your business ready ?
• Introduction – Sjoerd Schaafsma / Rita Marzian
• In store Shopper Insights – Emilie Coles
• Innovative Shopper Services – A. Theotokis /G Lostarakos
• Future directions Shopper Marketing – V. Belcher/B. James
• Q& A panel
5
7. Excerpts GCI Global Score Card (formerly ECR score card)
About Collaborative Shopper Value Creation:
Shopper Targeting Differentiated Solutions
Identifying clear joint shopper segments
Trading partners collaborate to create unique
by sharing strategies and information with
General solutions to meet targeted shopper needs,
Score
Meaning
the purpose of developing differentiated
creating a bond between the shopper, the store
solutions within the context of Joint
and the brand.
Business Plans.
The scope of the work has evolved to as many
Roll-out of Retailer and supplier share and align categories as needed to influence the behavior
implement market, shopper and consumer data to of the target shopper segment in the
3
ation identify and prioritise joint marketplace. The shopper recognizes the
started shopper/consumer segments unique attribute provided by the retailer's
solution.
Clearly defined joint shopper segments The retailer and manufacturer work jointly
agreed and used as the basis for making defined business plans to interact in a unique
Fully
decisions. Process in place to continuously way with a set of shopper segments to make
4 implement
ed improve shopper segment knowledge. them prefer the retailer as a provider for well
System infrastructure and organisation in defined shopper needs or occasions. The
place to track and monitor this work. result is a measurably more loyal shopper.
7
8. the shopper is king
using shopper understanding to maximise
category and brand success
May 2008
By: Emilie Coles, Director - TNS
20. we can use shopper insight to
influence all category levers…
merchandising/layout
packaging
range
shopper sales
NPD marketing insight
in-store brand price/promotion
activation
37. Stop working in silos…
consumer shopper
Marketing Sales
Packaging Merchandising
NPD Shopper! Range
Brand Price/Promos
activation
38. insight vs. information?
X
Information information information
Information information information
insight Information information information
Information information information
Information information information
Information information information
one true insight is more powerful than one hundred pieces of information
31
40. Get people to apply
How? learning
Simplify complex
ideas
use movies to
show what
actually happens
41. Summary
Understand the store environment to
maximise the shopper opportunity
Use shopper knowledge to influence all
areas of our business
Embed shopper knowledge into the
organisation
43. Value Creation beyond Price
The Case of Dynamic Pricing
George Lostarakos Aristeidis Theotokis
Customer Team Leader PhD Student - Researcher
Customer Business Development ELTRUN Research Centre
P&G Hellas Department of Management Science
and Technology
Athens University of Economics and
Business
45. Value Creation Beyond Price
Current trade Environment:
Shopper behavior changes
Loyalty in brands and stores is shrinked and
markets are commoditised.
Value is the difference between cost and perceived
benefit.
The project was aimed to:
Record current value creation practices
Map the local market
Analyze and align common business practices
Provide value creation guidelines
48. Value Creation Beyond Price
Value is not
necessarily
linked with price
in consumer
mind!
49. Value Creation Beyond Price
1. Current Business Practices
Interview with Retailers - Suppliers
2. Super Group with Consumers
Workshop with “innovative” consumers
3. Consumer Survey
50. Current business Practices- Industry
Consumer
After Sale
Research Brand Loyalty
Services
EDI Programs Sign
Free Sampling POS data posting
Out of Stock Shopping Direct mail Consumer
Projects Environment direct line
Loyalty cards
Consumer Innovation
Training Charity Category
Programs Consumer Management
Events
52. Current Business Practices - Retail
Safe & Clean Database Credit
Product Environment marketing Card
Assortment
value for category
POS data
money management
Proximity Service
In store
Environment Loyalty In store
cards communication
Quality of Fresh
Products
54. Super Group Methodology & Results
Methodology
Full day workshop with “special
trained” innovative consumers
Target: Generate Innovative ideas
Results
Up to 100 innovative ideas related
with improved shopper experience
Sorted by satisfaction rate and
implementation feasibility.
55. Super Group Results
• The possibility of get informed dynamically by a display for a
relevant promotion when buying a product.
• Dynamically reducing prices of products according to their
situation or expiry date (especially for fresh foods)
• Electronic tags in shelf that show clearly and dynamically
products’ prices
• An express super-market in store that sells only basic
products and can shop quickly
• An automatic vending machine in store that sells all basic
products and works 24h/day
• Being able during checkout to order products that I didn’t
found on shelf
58. What is Dynamic Pricing ?
Dynamic Pricing = Item-level Price Discrimination
A modern practice…
But also traditional…
59. Dynamic Pricing as an
Innovative Retail Service
Perishables discounting based on “sell by” date
Dynamic Pricing as a value adding consumer
service
Identify factors and situations that affect
consumer perceptions
Dynamic Pricing Project is funded by
Athens University
ICI- Unilever Research Grant of Economics
and Business
61. We ask consumers to choose…
Milk 1 Litre
We test…
• Different levels of
1,38€ 0,98 €
4 days 2 days
discount
– (30-50%)
Chicken Breast 500 gr
• Different days to expire
– ( 1-3 days)
• Different consumer
6€ 4,2€
4 days 2 days segments
– ( Price / Quality
Pre-cut salad 250 gr
consciousness)
• Different Countries
1,85€ 1,3€ – (Ireland and Greece)
4 days 2 days
65. Importance of Product Attributes
Price is not the most important
Expiration Date has importance for consumers
CSR and Quality Guarantees could enhance Dynamic Pricing
67. Determinants Of Consumer Reactions To Dynamic
Pricing
Category-related factors
Product Risk (functional, performance
and physical)
Stockpiling – Stop the aging process
(Category Characteristic
Situation-related factors
Shopping Trip Type
Day of the week Response to Dynamic Pricing
Consumer-related factors Buy the near-to-expiration-date
Price Consciousness Buy the “Fresh”
Quality Consciousness Other
Shopping Frequency
Average Shopping Quantity
Expiration Date Perceived Risk
Store-related factors
Store Trust
Store Loyalty
Brand-related factors
Brand Trust
Brand Loyalty
68. Enabling Technology
Intelligent Integration of Supply Chain Processes and
Consumer Services based on Unique Product
Identification in a Networked Business Environment
(EU FP6: ST-5-034957-STP)
69. Pilot Study
• Time: May- June 2008
• Retailer: METRO ( MyMarket) Greece
• Supplier: Vivartia /∆ΕΛΤΑ
• Category : Milk
70. A “Real-World” Case
Shelf-Talkers
Package with Sticker
MyMarket Store Sepolia,
Athens
Stickers with new barcode
71. Conclusions
Added value can be created beyond price if the
consumer needs is the centre of every stage of new
service design process
THINK SMART OR JUST LET
CONSUMERS DO IT FOR YOU
72. Thank you!
For more information and survey results:
www.eltrun.gr & www.smart-rfid.eu
lostarakos.g@pg.com a.theotokis@aueb.gr
George Lostarakos Aristeidis Theotokis
Customer Team Leader PhD Student - Researcher
Customer Business Development ELTRUN Research Group
P&G Hellas Department of Management Science
and Technology
Athens University of Economics and
Business
90. Dialogue & Co-operation is
Vital!
Q: Co-operation between manufacturers & retailers on Shopper Marketing…
is currently
• Some relationships are still too good 2.7
transactional – focus on deal vs. value add
will be
• Skills issue at both Account Manager & significantly
Buyer level better in 3 3.7
years
• In store activation - control vs. creativity 0 1 2 3 4 5
1 = Strongly disagree 5= strongly agree
Average Agreement Score*
“There’s a handful of retailers
who get this – they can see
the value of insights” Mfr “ Too often it’s linked to trading…IF we
hit our numbers, THEN we can do this
nice stuff together” Rtlr
* Source : The Journey To Strategic Shopper Marketing, OxfordSM May 2008
