In this period of increasing commoditization, organizations are under enormous pressure to do more with less. As customer expectations continue to raise and budgets are squeezed, the quality of the customer experience has emerged as one of the most important factors in a shopper\'s purchasing decision. This session will explore powerful tactics and tools to strengthen your brand proposition in a way that is relevant and meaningful to your shoppers.
1. Destination + Impulse How to Influence and Guide Shopper Behavior Patrick Rodmell President + CEO [email_address] www.wattintl.com
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3. From insight to integrated, creative execution www.wattintl.com Research + Consulting practices Creative Agencies “ (watt international is) a unique group of talent people, encouraged to think beyond their specialty”…
4. … and lots of examples for inspiration! THE IDEA
12. Insight Development is radically changing at retail - Depth of insights into Hispanic consumer and shopper insights were profound www.wattintl.com Launched in June 2009, the Supermercado de Walmart is already exceeding expectations. ( Source: Wal-Mart press release)
13. And they’re getting more more innovative about how they apply insights to marketing strategies
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16. vs. What can you do that will enhance the experience and build loyalty with your customers? www.wattintl.com Merchandise ($/sq. foot) Experience (Customer satisfaction)
19. Insights Strategy Insights Insights Insights Strategy Strategy Strategy The old retail model... www.wattintl.com Marketing + Advertising Store Planning + Design Merchandising (PB + CPG) Operations A place that sells products
20. Insights Where retailers are heading www.wattintl.com Marketing + Advertising Store Planning + Design Merchandising (PB + CPG) Operations Customer loyalty An integrated, well-oiled, branded customer experience Strategy
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22. Destination + Impulse What drives a “Destination”? What motivates “Impulse”? Most importantly, how are they connected in our new Mobile World? www.wattintl.com
23. Imagine: An application that sources the best overall price for anything you want to buy…in your local market How does a retail environment remain relevant ?
24. What can a retail experience deliver that can’t be realized virtually?
26. For CPGs , it’s about generating the need/want, then getting on the shopping list For Retailers , it’s about getting customers to drive past the competition Primarily driven by understanding the “needs” behind the Needs States Destination www.wattintl.com
28. 7. Packaging that works in the store, and looks great at home! Creating destination through consumer insights
29. Swivel Saucer Tray for meals on the go Juice box holder to allow for mess-free sipping French Fries holder with ketchup container Consumer insights that have the potential to ‘drive’ destination behavior
30. Nike - Pioneers in Need State Merchandising (“Don’t just Do It; Look Great while you’re doing it!”)
31. Gatorade running shoes? Nike sports drink? Understanding “the need behind the need” creates broader brand appeal
36. Whole Foods offers recipes and lists for shoppers’ smart phones The company has teamed up with Apple to provide the applications for the phones
37. The Store as a Media: What is your “ Refresh Frequency ”?
38. 9. …but Clorets perfected it! For CPGs, it’s about creating interest in the category, then being first for consideration For Retailers, it’s about a clear offering and a compelling retail experience Driven by shopper insights and in-store activities Impulse www.wattintl.com
41. Because for most people, it’s not the grape , it’s the taste ! Tesco understands Needs States and delivers packaging and communications solutions that drive behavior
42. Driving impulse through strategic cross promotion 45% 32% 23% 38% 28% 34% Insight: The flavor combination changed the participants ranking of the CSD beverage, suggesting that a consumer’s enjoyment of a CSD beverage is effected by the food it’s paired with. Question: Which beverage do you prefer? Question: Which combination of beverage and chip do you prefer?
43. The Shopper-centric reality Intuitive shopping at Piggly Wiggly Branded merchandising that helps get more out of meals
46. 9. …but Clorets perfected it! For CPGs , it’s about generating the need/want, then getting on the shopping list For Retailers , it’s about getting customers to drive past the competition Consumer Insights and Media For CPGs, it’s about creating interest in the category, then being the preferred choice For Retailers, it’s about a clear offering and a compelling retail experience Shopper Insights and In-store Activities Destination + Impulse The Mobile Connection is driving the need for greater integration www.wattintl.com Integrating Insights: Integrating Execution
47. Integrated Solution www.wattintl.com Set the Strategy brand strategy merchandise strategy experience map creative brief ActionPlan TM Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Analyze synthesize inputs distil conclusions insights Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends Execute brand identity packaging communications retail environment advertising web social media promotions events/p.r. Measure share revenue customer attitudes customer behavior margin profit traffic
48. Integrated Solution www.wattintl.com Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends ROI (Return on Inputs): What combination will deliver optimal insights?
53. Integrated Solution www.wattintl.com Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends ROI (Return on Inputs): What combination will deliver optimal insights? Integrate insights Rationalize conflicting inputs
55. Integrated Solution How do you integrate execution ? www.wattintl.com Set the Strategy Define the opportunity increase share grow category improve margin accelerate frequency enhance brand perception new concept/ product grow footfall reposition Analyze Establish the inputs current state review stakeholder interviews shopper/consumer behavior consumer attitudes financial analysis industry research competitive audit best practices trends Execute brand identity packaging communications retail environment advertising web social media promotions events/p.r. Measure
56. Our Philosophy: Brand Council to ensure Synergy of Activities www.wattintl.com Creative Strategy Tactical Strategies Business Objectives Marketing Advertising / Website / Brochures / Catalogues / Flyers / In-store signage HR Recruitment/Retention Training Incentives & Rewards Business Planning Store Formats Store Operations Price Programs Supply Chain Strategic Partnerships Offering National brands Private label Services Brand Name Identity Colors, Fonts Internal Communications Public Relations Sponsorships Events Launches Environment Architecture Décor Layout
58. Apple: A business that gets it right www.wattintl.com
59. Apple: A business that gets it right www.wattintl.com
60. The end of the “Abundance Era”; the beginning of
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62. “ Authenticity is the benchmark against which all brands are now judged…” John Grant in The New Marketing Manifesto
63. Authenticity Today’s consumer is skeptical about marketing messages, looking for products and experiences that have a closer connection with a true human element.
64. Juan Valdez has been used to promote Colombian coffee since 1959. “ humble but uncompromising, dedicated to the hard work of raising coffee by hand.” Authenticity: Juan Valdez
65. General Mills offered limited time retro packaging from the 1960s and 80s in February 2010 The company was responding in part to the trend on Facebook of members sharing pictures of their favorite retro brands Authenticity: General Mills Nostalgia
66. Nike assembled a Skateboarding team that “lives and breathes” skate. It worked with hard-core skaters to develop a shoe customized for skateboarding, and signed hot young skaters to represent the new Nike SB division. Nike is also building “street cred” with their “Support Your Local” campaign – building authenticity by paying tribute to skateboard retailers who are pioneers in the industry. Authenticity: Nike
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68. Destination + Impulse Comments or Questions? President + CEO [email_address] www.wattintl.com
Editor's Notes
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InStore Marketing Institute: Published: October 2008, Source: 2008 GMA/Deloitte Shopper Marketing Survey According to a GMA/Deliotte Shopper Marketing Survey of 88 Retailers/ Manufacturers, In-store activities represent the majority of “Marketing Mix Growth” over the next three years.
Promoted in flyers and on website.
Cleanwell offers liquid soap dispensers with removable labels giving consumers the option to re-fill them, with a pleasing design and convenience as incentive.
Holisters video wall, showing a live feed from the beach in California. They also have a juke box that allows their youthful customers pick the music to play in the store.
Whole Foods Market, who entered the market with a focused, “retail-push” approach to their target market is continually re-adapting their offering beyond the core to suit the demands and needs of the customers and their lifestyles in a “consumer-pull” market. Staff at Whole Foods are hired to specialize in categories of the store with superior knowledge of products, saving consumers time As a solution to consumer economic pressures, Whole Foods “ value gurus ” are offering bargain tours of its stores.
Although graphically ‘challenged’, this wine identification system helps the neophyte connoisseur get the most out of their selections. A great service to their hypermarket customers.
Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
Define the opportunity:: To ensure that initiatives deliver the desired end-state, we start with a defined opportunity. This helps establish the inputs required to uncover meaningful insights. These insights drive strategic thinking and ultimately, a plan to execute. Measure: And finally, it’s critical to measure results from a number of key metrics to determine if revisions to the strategy or execution are warranted. At watt international, we provide an integrated approach to business planning and execution, delivering economies, speed, and continuity.
Consumer centric solutions involve creating experiences that respond to the immediate and anticipated needs of the consumer In the retail environment In the product experience In the holistic presentation of your brand By looking at trends and opportunities in the marketplace today we can learn how the retail space, the product and the brand as a whole can adapt to inspire the consumer to continue their patronage and cement loyalty, or even to shop in new ways. Some of the trends that are making a big impact on consumer-centric solutions today are:
General Mills Cereal Boxes Go Retro Feb 12, 2010 http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i5ea0ca8b29bfaf1c5c4ed7a1e4f766e4 - Elaine Wong General Mills is evoking childhood nostalgia by launching five of its best-selling cereals in retro boxes. The cereals—which are part of General Mills' "Big G" moniker—include Trix, Honey Nut Cheerios, Cheerios, Cinnamon Toast Crunch and Lucky Charms. The limited edition versions will start appearing on shelves at Target stores this weekend as part of a month long promotion. This marks the third year the food maker has partnered with Target to strengthen the manufacturer-retailer relationship. General Mills is selling the cereals for a suggested retail price of $2.75 a box. They feature “fun, ‘retro’ package designs and premium offers from the 60s and 80s,” said David Oehler, Big G promotion marketing rep. A retro box of Lucky Charms, for instance, shows an older, more storybook-like version of Lucky the Leprechaun, the brand’s mascot. Last year, General Mills rewarded consumers who submitted proof-of-purchase labels from five retro cereal boxes with T-shirts sporting similar designs. This year, however, the promotion includes games and prizes that evoke childhood memories, such as an Atari Flashback 2 game console. “ Retro is so in right now—whether it’s clothing, cars, apparel [or] packaging. Many folks remember some of the fun prizes and games as a child growing up,” Oehler said of how General Mills selected the prizes. Matt Britton, CEO and founder of Mr. Youth, a New York-based social marketing agency, said General Mills’ promotion with Target is just one example of how packaged goods companies are trying to cozy up to their retail partners. In choosing Target as its sole sponsor for the launch, General Mills is aiming to “show its point of differentiation and value to its key merchants,” Britton said, and therefore, the retailer “is able to offer something to consumers that no one else can.” The retro trend is not exclusive to cereals. Pepsi, for example, launched “throwback” versions of its Mtn Dew and flagship, Pepsi cola products. It also used social networks like Facebook to spread the “throwback” concept. “If you look on Facebook, there’s a trend where people are posting their throwback and nostalgic pictures . . . Retro is something that will continue to evolve. It won’t go away,” said Britton. Similar to Pepsi, consumers who manage to snag the limited edition General Mills cereals will likely post pictures on Facebook and will spread the word among friends, Britton added. General Mills spent $262 million advertising its Big G cereals in 2008, and $279 million through the first 11 months of last year, excluding online, per the Nielsen Co.
“Support your local” appears as the home page on the Nike Skateboarding site and creates authenticity (for Nike) by paying tribute to the skateboarding retailers who have been in the industry from the beginning (since Nike has not). By taking "deep dives" into various sports tribes and using the resulting insights to become more relevant--and therefore more authentic--Nike has maintained a renegade edge. As Parker tells it, not so long ago the company believed it was "too big, too corporate" to be accepted by the skateboarding culture. But as the market grew to 15 million skaters who generate $3 billion in annual sales, Nike plunged in. Parker assembled a Nike Skateboarding team that lived and breathed skate. It worked with hard-core skaters to develop a shoe, dubbed the Dunk, customized for skateboarding. It signed hot young skaters to represent the new Nike SB division. And it brought in maverick graphic artists to tell their stories on the canvas of Dunk shoes. To some die-hard skaters, Nike may still be a wannabe, but it has managed to pick off a sizable chunk of customers. The antidote to size and ubiquity--for Nike, at least--has been to go vertical. "As we get bigger," Parker says, "we get deeper."
3. Spending for Food Gas and other consumables during the recession, May 25, 2009, 8 Sages (Survival and Growth Enterprises)