ConAgra Foods’ Jesse Spungin on the Economy

Shoppers want value — and ConAgra Foods wants to provide it. But that takes knowledge, the kind gathered in the process known as shopper marketing. Where does the consumer shop, for example? What do they buy? And when do they buy it? Those are only three of the data points that go into making appropriate offers.

Jesse Spungin, vice president of shopper marketing at the packaged goods giant, talks about his company’s approach to this discipline and how it’s changed during the recession.

PROMO: So ConAgra has embraced shopper marketing.

SPUNGIN: We used to call it customer marketing, but we changed the name a year ago to shopper marketing to be more in line with the industry standard. The one thing manufacturers and retailers can all agree on is the shopper. It’s the common ground we can start with and put all the other issues aside, like fighting over trade dollars and slotting efficiency.

P: Is your customer shopping any differently in this economy?

s: In many ways. When gas prices were up, for example, the number of trips to retailers went down and so did the total basket ring. This crossed all income levels because people with higher incomes love great deals and people at lower levels need great deals. ConAgra has a diverse portfolio that has value, and that provides a big opportunity for us and for retailers.

P: Have you launched any value-driven products?

s: We launched Healthy Choice Fresh Mixers, a lunch product, last September. It’s a great at-work option for $3.

P: What role did shopper marketing play in this?

s: It was part of the integrated plan. We understand who the shoppers are, and we developed customized programs for the launch at SuperValu [grocery retailer]. These included point-of-purchase communications, in-store shippers and other tactics that were different from what we did at Walmart. The Walmart shopper is different, so the messaging has to be different. The programs paid off with profitable results.

P: Is shopper marketing more important in a recession?

s: : In these times, there’s a danger in pulling back on marketing. Now more than ever, you need your message to break through.

P: Has the program changed since you started it?

s: It’s evolved significantly. The senior leadership has accelerated our commitment to help retailers with shopper solutions and differentiate our brand equities from the competition. We’ve stepped up our human and financial commitment, and this has delivered significantly good returns over the last 12 months.

P: Retailers are developing their own shopper marketing programs.

s: Yes, I’m seeing it. Retailers understand that they need to differentiate themselves above price and assortment and to communicate that more effectively to shoppers, so they’re putting in more marketing programs. But we still have the ability to influence, so there’s still a need and desire for customization. I don’t believe that in 10 years retailers will have a standard approach.

P: Is money designated for shopper marketing being used for trade marketing?

s: That’s a common problem in the industry, but we don’t share it because our approach is different. None of our shopper marketing dollars go toward reducing the price of an on-shelf item, which is what trade is for. These dollars go toward enhancing shopper-marketing value and driving our brands to the shoppers in a meaningful way. We have dos and don’ts, and we’re upfront about them. The trade, sales and shopper-marketing teams are all on the same page.

P: Shopper marketing places a huge focus on understanding shoppers. Is there a danger that customers will think you know too much about them?

s: No more than in national marketing.

P: What’s the future of shopper marketing?

s: National marketing will diminish and retailer-specific marketing will increase because you get a better return and it’s more relevant.

Jesse Spungin, vice president of shopper marketing at ConAgra Foods, feels that shopper marketing produces a better return and is more relevant than national marketing.

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