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 their baskets, such understanding is more critical than ever.

   Consumers use, shoppers buy. Shopper marketing complements the passive awareness and preference-building role of consumer marketing by focusing on the shopper’s active purchase-decision-making process.

   COMPANIES WITH SIGNIFICANT SHOPPER MARKETING ORGANIZATIONS
   (MORE THAN 20 PEOPLE)

   Do you understand the barriers to purchase for your brand and category and how they may have changed as a result of the current economic pressures? Has the consumption occasion changed? What role does price now play versus other factors such as convenience, wellness or sustainability?

   Are shoppers’ trips changing in ways that will affect your brand? Are your shoppers making fewer, bigger and more planned trips? Are they shopping different channels in different ways?

2. KNOW YOUR BRAND

   All brand marketers commit significant resources to understanding how their 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.

3. OFFER SOLUTIONS

   Keep in mind that the final purchase decision is made in favor of the product that provides the shopper with the most convenient response to her or his shopping need.

   What is that need and how is it impacted by financial considerations? For example, if the need is for value, think about themes, co-locations and adjacencies that address healthy meal options for the whole family; fun nights-in that won’t break the bank; pamper-yourself-and-be-kind-to-your-purse opportunities; save-money-and-save-the-planet products.

4. COLLABORATE

   If shopper insight is a central pillar of shopper marketing, so is retailer collaboration.

   Recessionary pressures will affect shopper segments in different ways, presenting different challenges and opportunities to each retailer.

   As a marketer, understanding how your retail partners are reacting to these changing times and working with them to meet their own shoppers’ evolved needs will deliver incremental returns for both you and them.

   What programs will retailers be developing? How do they relate to your shoppers? How can you bring your knowledge of consumption and usage occasions to the retailer’s knowledge of buying behavior?

   Working with Kraft and Walmart under the Simple Mealtime Ideas banner, we provided convenient, affordable and delicious meal solutions for their price-conscious shoppers.

   The program was communicated in-store with P-O-P materials, on in-store screens and via sampling, and out-of-store on www.walmart.com, with e-mail blasts and print ads.

5. ALL SHOPPERS ARE NOT THE SAME

   Just like the general population, shoppers are not one homogeneous mass. Exciting demographic changes present segmentation opportunities for focusing tailored offerings and messages that can be based on ethnicity, age, families or singles. All groups have distinct needs that will be affected by an economic downturn.

   And it’s not just about pure demographics. How does a shopper’s frugal financial mindset relate to other, more positive areas of interest like health and wellness and sustainability?

6. THINK ABOUT THE PATH TO PURCHASE

   While the first moment of truth undoubtedly occurs when a shopper selects one brand over another, the decision-making process does not take place entirely at the shelf.

   If shoppers are combining their trips or looking for deals, what role do coupons (and coupon Web sites) play? Is online a channel for raising awareness? Do retailers’ loyalty programs influence planning decisions? Can radio talk to your shoppers while they drive to the store?

7. ALIGN YOUR BRAND AND SALES TEAMS

   Those organizations that realize that shoppers’ changing habits need to be addressed by the whole organization, not just sales or customer teams, are the most likely to succeed.

   Recession-beating solutions may present new product development opportunities, require new packaging formats, or equity communications that focus on relevant attributes. This will require an integrated planning process with brand and sales teams working in unison.

8. KEEP IT SIMPLE

   In times of change and uncertainty, clarity is key. Value messages, especially in-store, should be simple and to the point. If things get too complex, shoppers will resort to the lowest price.

   Shoppers will also look for familiar cues of trust and reassurance. Combine relevant value messages with these valuable equities. Be proud and confident and not apologetic. Shoppers are looking for reassurance that they are making the right choices. Be transparent and don’t sell people what they don’t need — you will lose their trust and loyalty.

9. INNOVATE WISELY

   While marketing in a recession is undoubtedly about marketing to the core (brands, consumers and retailers), times of change create new opportunities as consumers and shoppers re-evaluate their needs.

   New segments will emerge following changes in consumption and shopping behaviors, while digital technologies in and out of store will present new engagement opportunities.

   While all expenditures should be carefully considered, an insight-led and integrated planning approach can reveal opportunities for competitive advantage that will last well beyond the current recession.

   McDonald’s, for example, is currently targeting Starbucks’ dominance with a value and convenience message that, if successful, may fundamentally change the behavior of certain coffee drinkers. Procter & Gamble’s cold wash detergents appeal to both a value and environmental mindset.

10. EVALUATE CONSTANTLY

    This recession is far from over, and no one knows how things will play out. More change is certain, however.

    It’s important that we stay close to the consumer and our retail partners, ensuring that our products and messages are relevant to their needs and remaining flexible as these needs change.

Jonathan Dodd is the director of strategy, retail and shopper practice leader at G2. He can be reached at [email protected].

Editor’s Note: Jesse Spungin, the vice president of shopper marketing at ConAgra Foods, shares his thoughts on the remarkable increase in retailer shopper marketing programs, the economy’s impact on food marketers and how shopper marketing fits in. (See page 26.)

COMPANIES WITH SIGNIFICANT SHOPPER MARKETING ORGANIZATIONS
(MORE THAN 20 PEOPLE)