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The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group

The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group. The Future of Shopper Marketing. What trends are you seeing? What are the top challenges? Which retailers are on the cutting-edge?. Your personal vision.

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The Future of Shopper Marketing 4-22-2010 Shopper Marketing Share Group

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  1. The Future of Shopper Marketing 4-22-2010Shopper Marketing Share Group

  2. The Future of Shopper Marketing • What trends are you seeing? • What are the top challenges? • Which retailers are on the cutting-edge?

  3. Your personal vision • Is “Shopper Marketing” just another word for what Category Managers have been/should have been doing all along? • Lots of people in catman role have been rolling out charts/wowing people - but this is what they should be doing: align with core demographics, align with your shopper segments/customers in your store , think that a lot of companies don’t do that- they were focusing sales data/category – not the shopper • Although shopper marketing is what catman should be doing, we haven’t really had access/know about tools. As the tools evolve this process will evolve. • A lot of companies don’t train people how to think out of the box and search for the nuggets • While this is important for a catman to do, it is not the whole thing…choosing item to place in assortment, then shopper chooses…in between are two supply chains! • The category manager is a key element as a decision-maker, particularly for what is on-shelf. • What is the shopper’s problem? What do they want and at what price… • ‘Devolution’ of catman that started as data + consumer insights driven…devolved to use of tools. We did give them which was actionable - space and assortment and a bit of pricing. • Asking for shopper satisfaction and experience…store itself/design/navigation…assortment/availability…knowledge of the shopper buying history and data…plus more • Shopper marketing is different and new because it is cross-category, also consumer perception of banner all the way through ambience of the store and their whole experience. • From the shopper viewpoint – example of a shopper (like a diabetic) shopping nine+ categories…should be arranged more for their convenience (and represents $9,000 annually) • Align operations and marketing in the retailer to make this work. • It is relative to your perspective in the industry (mfgr and retailer)…is this another word for ‘solution selling’ • Who owns the shopper today?

  4. ‘Solution Center’ to provide solution to what shopper is trying to do. • The person that suffers is the shopper because the aisles aren’t coordinated. • How can we get categories talking to each other? • How can we get disciplines talking to each other? • ....P&G working on this quite well, but when any mfgr go retail it is with their own agenda – but catman should be the disinterested 3rd party who includes competitor, in order to satisfy the shopper

  5. What Top Challenges? • Trading Partners – who to interact with? • In larger retailers we are seeing creation of CMO – who are the skill sets from the mfgr that the marketing group would want to see. (They are not wanting to hear from sales) • What is disadvantage of shopper/catman being in marketing? • Seeing trend of forming 3rd department which sits between sales/marketing and reports to ‘commercial director’ at the same level as SVP/sales • If you look to retailers – buyer evolved to catman and marketing was different. • If shopper needs were being met, then mfgr would sell max product • Mfgrs bring enormous resource to retailers, who are trying to figure this out quickly and it remains to be seen how everyone’s agenda/goals could be met. • Reporting Structure • Marketing, Merchandising, Space, In-store, how make these disciplines work together to implement? • We have allowed retailers to …we have now segmented too much/not working together • Who should have responsibility for this at the manufacturer? • Who should have responsibility for this at the retailer?

  6. What Trends?(HOLD FOR FUTURE MEETING) • Which retailers you feel are most leading-edge, or open to new ideas? • Personality/behavior-based shopper segmentation vs traditional use of demographics? • Will retailers begin collecting shopper opinions via in-aisle laptops? • In-store promotions and use of POS discounts for repeat product purchases

  7. Should we do a Survey? • What questions?

  8. Speaker Nominations • Nominate a retailer or Manufacturer (Please feel free to volunteer yourself) • Which companies are most leading edge - who would you like to hear speak? • Retailers: Walgreens , CVS • Manufacturers: • Nestle Purina, Brad Anderson, • Procter (ask Warren), • Kraft - how organizing/learning/testing • What technology would you like to hear about? • Invite Smart Revenue

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