Shopper Marketing: Capturing a Shopper's Mind, Heart and Wallet

Key Insights:The Store Is Compelling and an Ideal Marketing CanvasWith 70 percent of purchase decisions being made in-store and 68 percent of in-store purchases being impulse, marketers have a tremendous opportunity to reach consumers, build brand equity and stimulate consumption through effective shopper marketing.Many Definitions Exist, However Only One MattersKey Insights:The Store Is Compelling and an Ideal Marketing CanvasWith 70 percent of purchase decisions being made in-store and 68 percent of in-store purchases being impulse, marketers have a tremendous opportunity to reach consumers, build brand equity and stimulate consumption through effective shopper marketing.Many Definitions Exist, However Only One MattersDespite industry debates and differing opinions, shopper marketing should be consistently defined from the shopper's point-of-view. It should include all marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper (i.e. a consumer in ''shopping mode"), and lead him/her to make a purchase.The Industry Is a BelieverWith respect to shopper marketing, companies are making real change happen in their organization -- backing it up with projected increases in funding (21 percent and 26 percent CAGR 2004-2010 estimate for manufacturers and retailers, respectively) and considering shopper marketing a competitive differentiator well into the future.Transformational Change Is Required, and It's Quite ComplexBuilding shopper marketing capabilities will require a significant transformation of the status quo in marketing and sales organizations. This transformation will include, but is not limited to, how insights are generated, how much is spent on insight generation, how segmentation is performed, how budgets are developed, how teams are structured, what skills are required, and how execution happens in-store.Retailers Are Increasingly Defining the AgendaRetailers are becoming more sophisticated and demanding marketers. Leading manufacturers are succeeding by becoming expert advisors to their retail customers. Compelling insights and effective collaboration will drive competitive advantage for consumer product manufacturers well into the future.Five Things Differentiate Manufacturers in the Eyes of RetailersRetailers view leading manufacturers as those:Who are best aligned with their marketing plans and strategies;With whom they have highly productive and cohesive relationships;Who possess advanced shopper marketing competence;Who develop unique and exclusive programs; andWho can deliver powerful insights on the consumer and the shopper.It Doesn't Need to Be the Cadillac VersionShopper marketing is not an all or nothing proposition. Brand strategies and positioning should define the most appropriate role of shopper marketing and the specific in-store and out-of-store tactics that yield the most effective results.For the full report, click on the attachment at right.

Shopper Marketing: Capturing a Shopper's Mind, Heart and Wallet

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