DDi - October 2011 - (Page 14)

14 | Shopper Insights In-store marketing works I n this line of business, I am quite often asked the same question: “Does in-store marketing really work?” The answer, as this article will argue and validate, is a resounding “yes.” The real issue for in-store marketing is how well it works, and whether it covers the costs of execution. Recently, the folks at The Center for Advancing Retail & Technology (CART) and Rock Tenn’s ShopperGauge group set out to determine whether in-aisle display fixturing and messaging increases brand and category sales and drives acceptable ROI. CART further sought an understanding of how the activity would impact shopper behavior, in terms of traffic pattern shifts, dwell times, purchase and interaction with product. The cereal aisle was the focus for this study. Specifically, General Mills-branded products were designated to be featured in a new fixture, accompanied by a meaningful, educational, healthy-choice message: “Whole Grain Goodness.” The assortment included products that were currently being positioned very differently. For example, some are targeted for children using the lure of sweet and familiar flavorings, such as Banana Nut, Apple Cinnamon and Berry Burst Cheerios. Others were aimed at the adult segment, such as Total, FiberOne and Wheaties. (It should be noted that neither General Mills nor any other cereal company provided data or participated in any way with the research). The test venue, Green Hills Supermarket in Syracuse, N.Y., provided a traditional grocery store environment with a local, very loyal set of daily and weekly suburban shoppers. To ensure valid research findings, there were no promotions on cereal during the base-line period (three weeks) and the test period (three weeks), and the rest of the cereal category assortment and merchandising remained the same. The design of this study assumed that a relevant, impactful shelf message, combined with a highly visible fixture, would engage shoppers more so than the existing shelf set. The hypothesis was that shoppers would be drawn to the fixture; they would spend more time engaging with the choices and reading the healthy brand message; and that they would ultimately purchase more products than before. Photo: The Center for Advancing Retail & Technology (CART) and ShopperGauge 1 2 3 The results were clear: The in-aisle display was effective at drawing traffic down the aisle. The study found that during the test period, aisle traffic as a percent of store traffic increased. Specifically, during the base period, 18 percent of store traffic went down the cereal aisle, compared to the test period, which resulted in 21 percent of store traffic reaching the cereal aisle. This produced a larger impact on store-to-aisle traffic conversion than any previous promotion effort. More aisle traffic stopped at the category. Overall, the number of shoppers stopping at the display increased 180 percent. They spent an average of 23 seconds in front of the new fixture, while choosing a cereal. More shoppers engaged with the brand, and the number of shoppers who stopped at the General Mills cereal set grew. During the base period, fewer than 500 stopped for at least 8 seconds. After installation of the “Whole Grain Goodness” fixture, nearly 1,400 shoppers shopped for at least 8 seconds. Overall, the “engagement rate” (the percent of the shopper traffic at the display or aisle that stops for X number of seconds or more) improved by 200 percent from the base period. More shoppers converted to buyers. Brand conversion increased 8 percent over the base period, resulting in 650 brand buyers. Nearly half of the shoppers who stopped at the display purchased General Mills products. The new merchandising fixture delivered incredible results both for General Mills, as well as the total category. General Mills-branded product sales revenue grew 17.2 percent (according to CART POS data), and the total cereal category saw a sales increase of 0.8 percent. 4 5 The display was effective in improving the customer experience. One indicator of this was the decrease in average dwell times, calculated as the average amount of time shoppers spent in front of the display, which decreased 7 seconds (23 percent) from the base period. This indicates that shoppers were able to more quickly find the product they wanted. The display was effective in converting competitive brand loyalists. The analysis showed that 11.2 percent of those shoppers buying during the test period had not purchased a General Mills product in the past six months. These results are further proof that in-store marketing not only works, but is good for business! —George Wishart is the president and CEO of Edgewood Industries LLC. He shares his shopper marketing insights with DDI in this regularly appearing column. www.ddionline.com | October 2011 http://www.ddionline.com

Table of Contents for the Digital Edition of DDi - October 2011

DDi - October 2011
From the Editor
From the Show Director
Newsworthy
Shopper Insights
Visual Perspectives
Editor’s Choice
Design Snapshot
Channel Focus: Bridal
Aura
State of the Retail Design Industry Survey
APP Exclusive: Bonus State of the Retail Design Industry Survey Charts
Right Light
In-Store Technology: Duane Reade
Product Spotlight
Calendar
Advertisers
Classifieds
Shopping with Paco

DDi - October 2011

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