Promo - February 2009 - (Page 14)

Jonathan Dodd RETAIL Smart mart Ten ways shopper marketing can help improve sales in a tough economy Shopper marketing has only recently permeated the marketing mainstream. Its proponents argue that it is an important move away from past adversarial trade marketing and sales promotion tactics to a more strategic discipline that has a key role to play in an integrated approach. Now that we find ourselves in a recession, conventional wisdom is suggesting that those very same tactical initiatives are the ones we should favor. So if shopper marketing really is a key strategy for driving sales in today’s economy, what principles can we draw upon to deliver greater returns? Here are 10 ways shopper marketing can help improve sales in these challenging times. 1 SELL TO THE SHOPPER, NOT THE CONSUMER Utilizing insight into shopper behaviors and motivations is a key principle of shopper marketing and the main differentiator over traditional “brand push” strategies. In times of change, when shoppers will be thinking harder about every item they put in 3 OFFER SOLUTIONS their baskets, such understanding is more critical than ever. Consumers use, shoppers buy. Shopper marketing comple- Keep in mind that the final purchase decision is made in favor ments the passive awareness and preference-building role of of the product that provides the shopper with the most conveconsumer marketing by focusing on the shopper’s active pur- nient response to her or his shopping need. chase-decision-making process. What is that need and how is it impacted by financial conDo you understand the barriers to purchase for siderations? For example, if the need is for value, your brand and category and how they may think about themes, co-locations and adjahave changed as a result of the current cencies that address healthy meal options economic pressures? Has the consumpfor the whole family; fun nights-in that COMPANIES tion occasion changed? What role won’t break the bank; pamper-yourWITH SIGNIFICANT does price now play versus other self-and-be-kind-to-your-purse SHOPPER MARKETING factors such as convenience, wellopportunities; save-money-andORGANIZATIONS (MORE THAN 20 PEOPLE) ness or sustainability? save-the-planet products. Are shoppers’ trips changing in 4 COLLABORATE 2007 2008 ways that will affect your brand? Are your shoppers making fewer, If shopper insight is a central Retailers 0% 60% bigger and more planned trips? Are pillar of shopper marketing, so is they shopping different channels in retailer collaboration. Manufacturers 6% 29% different ways? Recessionary pressures will affect shopper segments in different Source: 2008 GMA/Deloitte Shopper 2 KNOW YOUR BRAND ways, presenting different challenges Marketing Study All brand marketers commit signifiand opportunities to each retailer. cant resources to understanding how their As a marketer, understanding how brands are perceived by consumers, but do they—you—have the same understanding of the assets and equities that influence shopper choices? In a recession, non-essentials are hit the hardest—so how can you make your product essential? Price is undoubtedly a major driver of choice, but it is not the only one. Trust, quality and familiarity are important too. Opportunities are created by changes in usage or the consumption occasion. How can you re-frame value to maximize relevance? Consider how you can up the benefit and down the price to minimize the inevitable tradeoffs shoppers will have to make. Here are some examples: • Kraft is promoting the taste, value and nutritional benefits of its cheese slices when they are used to make a toasted cheese sandwich. • Trading up to a premium laundry detergent to prolong the life of expensive clothes may be a wise financial decision. • Remaining loyal to a bottled premium beer may be important if nights on the town are substituted by nights in. • Hallmark is stressing the variety of powerful emotions that can be unleashed by sending a 99-cent card. • Emotional imagery at the point of purchase may dissuade pet owners from compromising on quality or treats for their beloved pets. 14 February 2009 / WWW.PROMOMAGAZINE.COM / Promo http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - February 2009

Promo - February 2009 Contents Editor's Note A Bitter Pill Moving the Pictures Exclusively Yours Smart Mart Web Watching Tell Your Friends Commentary Second String Q&A: Shop Right Cover Story: Game On! Game On! Resource Center The Agency Center Testing... Testing... Index of Advertisers

Promo - February 2009

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