Shopper Marketing

Building Brands in a Retail World

How you can use the
emerging discipline of Shopper Marketing
to engage shoppers in the store
and convert them into buyers
for your category/brand
 “If people went into stores
only when they needed to buy
and bought only what they needed,
the economy would collapse.”
According to AT Kearney’s
Global Retail Development Index 2007
India is ranked No.1 as the emerging
future global retail market
 Modern Retail Landscape

Exclusive Brand Department Stores

Stores

Specialty Stores Supermarkets

Convenience Stores Hyper-markets

 

  Discount Stores Shopping Malls

 Modern Retail Growth

USD 1999 2002 2005 2010

Billion Projected

Total 151 179 217 250

Retail

Modern 1.1 3.2 7.6 21.7

Retail

% Share of 0.7% 1.8% 3.5% 9.0%

Modern Retail

Source: KSA-Technopak
According to a study by KSA-Technopak,
Modern Retail sales are expected to rise
faster than consumer expenditure during
the period 2003-2008

Modern Retail stores could see an increase

in sales at rates ranging from 30% to 40%
per year
Power to the Store

• First Moment of Truth

• Share of Wallet

• Theatre of Sales
 Power to the Shopper
• 70% purchase decisions are being made in-store

• The store is the 2nd largest source of information on

products/brands (after TV)

• Shopping is amongst people’s favorite pastime/activity

 The Marketing Shift

Store as conduit Focus on consumer/consumption

TO AND

Store as marketing medium Focus on shopper/purchase

Consumer as Shopper…Store as Medium…Retailer as Partner

 The Challenge:
Converting Shoppers into Buyers
 Shopper Marketing
- creating in-store brand solutions aimed at
turning shoppers into buyers
for the benefit of both
brand marketer and retailer
Based on 3 Retail Truths

1. Shoppers vote with their wallets

2. Space follows sales

3. You have to expand the cake

before you can divide it
 Win-Win

SHOPPER

MARKETER RETAILER
BrandMARKETER
objectives/ Store & Category
Brandstrategies
objectives/strategies
objectives/strategies

SHOPPER MARKETING
 Shopper Marketing

Leveraging the store as a marketing medium

+
Partnering key retailers in developing
joint marketing platforms/programs
Who needs Shopper Marketing

Brand at Retail

Retail as Brand
Shopper Marketing

Understanding Shoppers
+
Influencing Shoppers
Understanding Shoppers
How Shoppers Shop
 Studying Shoppers

• Shopping = Social human activity

• Observational art + science- based on Anthropology
• Store observation, tracking, intercepts, mystery shopper…
 CONSUMER PROFILING
Demographics/Psychographics

SHOPPER PROFILING
Need-States
“Starbucks has succeeded because
we’ve focused on the need states of
our consumers. We knew they wanted
a whole lot more than just a cup of coffee.
Once we really understood the needs of
our consumers, things fell into place.
We figured out what our role had to be.”

Howard Schultz, CEO, Starbucks

 What Shopping means to People

STATUS SOCIALIZING ENTERTAINMENT

RELAXATION/ ADVENTURE/
LEISURE FANTASY

EXPRESSION/
SAVING REWARD

CONVENIENCE EMPOWERMENT

LEARNING CARING SELF-IMPROVEMENT

 Unlocking Need-States
Is the person shopping for self-improvement, reward, adventure,
relaxation, socializing or just replenishment?

Is she a deal prone, convenience shopper or someone seeking

experience and entertainment while she shops?

Is the shopping trip a two minute, ‘grab and go’ at a convenience

store or is it a ‘leisurely browsing’ at a cosmetic section of a
department store?

Is it a planned on- the- list purchase or an impulse spur- of- the-

moment one?

Is she shopping with her friend or with her husband or with

her kids?
 Need-States vary by…

• Store/outlet
• Category
• Brand
• Occasion
• Shopping trip
Need-States decide Shopping Trips
Need-States drive Shopping Baskets

• Small < Rs. 100

• Medium 101-500
• Large 501-1000
• X’tra Large >1000
 Need-States define Shopper Goals

Planned

Replenishment Shopper-friendly
Reminder Navigation

Grab ‘n’ Go Browse

Trigger Stimulate
Pick-up Interaction

Impulse
 Need-States help create
Shopper-centric Category Definition

• Based on ‘how shoppers shop’ the category

and not on marketer groupings
• ‘De-selection before selection’ determines
the shopper’s decision tree
 Biscuit Category

Marketer Grouping Shopper Definition

• Glucose • Tea time

• Marie • Snack
• Cookies • Special treat
• Cream • Health
• Salted • Kids
• Digestive
• Salt-Sweet
• Milk
 Some insights on

How Shoppers Shop

 Shoppers shop using peripheral vision

• First 3.0 m – 5.0 m of a store

is often missed-
the ‘decompression’ zone
• Peripheral vision filters out
what is irrelevant and not in
line of sight
• Shoppers tend to navigate
from ‘left to right’
• Strong color blocks attract
attention
 Poor color blocking

Good color blocking

Shoppers have a limited ability to focus

• The human mind can only process 5-7 pieces of

information at one time
• Thousands of stimuli exist in a store:
– Relevant, clear information is absorbed
– Irrelevant, unclear information is screened out
• Too much information leads to ‘lock out’
• Shoppers seek ‘solutions’ and not products
Teen Skincare Dispenser
Oral Care Dispenser
Pictures are stronger than words
Discontinuity creates triggers in-store

The mind ignores

what it knows

and focuses

on differences
Brighter Lights

Curved End

Yellow Baseboards
Discontinuity thru’
• Layout

• Shelving

• Display units

• Colors

• Lighting

• Flooring

• Texture

• Sound/music

• Smell/scent

• Audio-visual
 Shoppers use signpost brands to navigate

• Shoppers use their visual memories of brands to

build mental store maps
• A signpost brand is a brand that stands for the
category; serves as a ‘category driver’
• Signpost brands should be positioned in the
center of the category and color blocked
• Even small categories have signpost brands
 Product adjacencies influence purchase

• Logical adjacencies (particularly to left & right)

build sales and encourage cross buying
• Creative adjacencies drive unplanned/impulse
purchase
Snacks next to Movie DVDs
Men Buy. Women Shop
 Little Things-Big Difference

With shoppers the obvious

isn’t always the most apparent

When men try, they buy

Kids can’t conquer heights

The ‘Butt-Brush’ factor

Influencing Shoppers
Seeing the Store through
the Eyes of the Shopper
Store Exterior Store Interior
Flooring
Location
Lighting
Storefront
Smell
Marquee
Fixtures
Entrances
Walls
Display Windows
Temperature
Building, Façade
Aisles
Neighborhood Store Trial Rooms
Parking
Accessibility Experience Payment Counters
Utilities/Offices
Visibility
Personnel

Store Layout & Merchandising

Space allocation/design format.
Traffic Flow.
Departments/Sections/Categories location.
Assortment/Theme/Ensemble.
Planogram/Racks & Shelves.
Displays/Signage/Media
Cash/Wrap
 Shopper Metrics
Shopper Traffic
Footfalls- no. of shoppers coming into the store

Shopper Conversion
Acquisition- % of shoppers actually buying
something

Shopper Spend
Value- Average spend per converted shopper
 Shopper Activation Zones of Connection
Strategy to Leveraging in-store
attract-arrest-acquire opportunities to engage
the shopper the shopper

In-store Way-finding
Sensory Seduction How to
Making shopping navigate-educate-inspire
multi-sensory and the shopper
interactive
 Shopper Activation

ATTRACT ARREST ACQUIRE

LOCATION 30-10 ft. 10-4 ft. 4-0 ft.

CYCLE Enter Search Select

SHOPPER See this. Understand it. Buy now.

OBJECTIVE
Stop. Hold. Close.
Zones of Connection

Category Insight Shopper Insight

Dandruff is the Youth are the
anti-thesis to most vulnerable
good grooming, to dandruff,
being-fashionable at the same time
fashion conscious

Zone of Connection
Anti-Dandruff shampoo message
at the ‘Youth Apparel’ section
 In-store Way-finding
NAVIGATION EDUCATION
“Help me find “Educate me about the
what I am looking for brands/products. Help me make an
quickly and easily” informed decision”

INSPIRATION
“Present the brands/products
in the context of my life.
Give me solutions, ideas, news”
 Inspiring and compelling in-store
idea + story for the category/brand
Sensory Seduction

• Shoppers first emotionally own products,

and only then physically buy them
• Senses are the portals to a shopper’s
emotions
• Shopping needs to be turbo-charged for
the senses and highly interactive
The 5-D Shopping Experience

SMELL

TASTE TOUCH

SOUND SIGHT
 Are you ready for
Shopper Marketing?
Go to a store and observe a shopper and put down
what you learnt about how he/she shops