70% Purchase Decision are made in the store! 68% of in-store purchases are impulse!
Above results are based on global research on SDMIS (Shopper Decision Made in the Store).
Massive growth of Modern trade and changes in the in-store environments has high impact on the needs and behaviors of shoppers in the stores. All the changes are making the Point of Purchase or the store a more compelling place with tremendous opportunity for the marketers to reach shoppers and convert the shoppers into the buyers of the desired brand!
Sales organizations have been utilizing the store through rather substantial trade promotion programs and investments, but very little effort was seen to influence the shoppers inside the store. Brand marketers, however, have only been targeting consumers outside of the store, leading them to the store, but leaving them right at the front door of the store. They have been neglecting an important moment in the consumer’s decision making process, “The First Moment of Truth”.
Who is the shopper?
The consumer is the ultimate user of the product. The shopper is the person who makes the purchase decision at point of sale. Consumers and Shoppers are the two sides of the same coin. All the companies and retailers need to fully understand Shoppers as they understand consumers.
What is Shopper Marketing?
Shopper Marketing is a nebulous buzzword fitting around retail marketing circles in recent years.
Shopper marketing covers all marketing stimuli based on deep understanding of shopper behaviour that engage shoppers and lead them to make purchase.
Essentially it’s all about marketing tactics that transform shoppers into buyers.
A recent shopper marketing initiatives illustrates what this means in practice. Crayola set out a study how decisions are made in the store. This study suggested that many retail aisles with certain products had low “stopability” ( ie- the aisles was not inviting shoppers and not a section to linger in) and as a result leading to low “shopability” ( limited product variety and poor signage didn’t encourage shoppers to purchase).
Based on the study Crayola put together a four step plan to
- build shopper attitudes and behaviour,
- create new prototype concepts ,
- translate those concepts into retail solutions and
- roll out the new directions in the store.
As a result, Crayola was able to generate growth of 17% and it’s retail partners benefited from 20-40% of sales.
Objective: How to win in Point of Purchase
Traditionally most of the FMCG companies have spent many years in understanding consumers, but have given little focus on understanding Shoppers behaviour at point of Purchase (POP) : in the store where shoppers made their decision!
The objectives of this program to help the participants in understanding
- The concept of shopper marketing
- How Shopper marketing is seen by global FMCG leaders
- Modern Trade : Global trends and faster growth in Asia Pacific
- Faster transformation of traditional retailing to modern retailing in India and China
- Learning the new tricks of the trade
- Sharing few best practices and examples of Shopper Marketing
- Challenges of Strategic Shopper Marketing
Workshop topics to be covered:
Session – I
IA. Ice breaking session: Sharing Individual participant’s background and Expectation from the program.
IB. Background of Shopper marketing: This section will focus on today’s market complexities and opportunity of the store as an effective marketing medium.
Session - II
IIA. State of Shopper Marketing: This section describes the definitions of shopper marketing, the extent of industry adoption, and the transformational efforts and essential tactics necessary to succeed.
IIB. Future of Shopper Marketing: predictions for the future of shopper marketing in the consumer products industry. How Shopper marketing is seen by the FMCG leaders.
IIC. Journey to strategic Shopper Marketing.
Session - III
IIIA. Modern Trade: Global trends, how it’s growing in Asia Pacific with special focus on India and China.
Session - IV
IVA. How to understand shopper behaviour: Understanding Shoppers, mission, channels. Review Categories through the lens of mission and channels.
IVB. Sharing the Examples of best practice shopper marketing cases.
IVC. Evaluation and closing.