here - POPAI Australia & New Zealand

Contents
Day One
1. Integrating consumer, shopper
and retailer objectives
2. What is Shopper Marketing?
3. The Shopper „Cycle‟ and its
Dynamics
4. Touchpoint Marketing &
Messaging
Day Two
1. Shopper Behaviour Fundamentals
2. Shopper Insights and what to do
with them
3. Measurement and ROI
4. Integrating Shopper Marketing
2

Caveats: „approaches‟ to SM, not „recommendations‟
New discipline – all
muddling along
together
No silver bullet
SM has been
spearheaded by
grocery, hence many
case studies are
grocery
Roundup of ideas and
examples, not panacea
Consumer/shopper
line more blurry in
some channels (eg
P&C) and categories
than others
Ultimately the ceiling
is retailers‟
capabilities and
focus
3

But first, share your „homework‟ thoughts
1. Who you are, where you‟re from and what
you do
2. What you want out of this course
3. Your favourite shop (may be online), and
why
4. What/who you think is local or global best
practice shopper marketing, and why
4

Who is considered overseas best practice? - 2010
(From the 2010 Australian Shopper Marketing industry study)
Mostly USA and UK. More retailers than manufacturers mentioned.
Tesco and WalMart the most frequently mentioned by a country mile.
Manufacturers: similar players to those considered best practice locally.
5

The US view: similar „suspects‟ as the top SM retailers
(From the US Retail Leaders in the Shopper Experience)
Source: RetailWire April 2010
1.
5.
9.
2.
6.
10.
3.
7.
11.
4.
8.
12.
6

Who was considered Australian SM best practice? - 2010
(From the 2010 Australian Shopper Marketing industry study)
A significant minority - both in the online and in the interviews - said nobody in Australia was particularly
good at it, and that Australia is behind the UK and USA by 5+years
7

Top 10 Australian best practice SM - 2011
(From the 2011 Australian Shopper Marketing industry study)
1.
5.
9.
(double the #2 ranked)
2.
6.
10.
3.
4.
7.
8.
•Many of the same
suspects as for 2010
•Often for the same
reason if nominated
twice
•But different reasons
from each other
8

Other mentions – Australian best practice SM - 2011
(From the 2011 Australian Shopper Marketing industry study)
9

1. Integrating consumer, shopper
and retailer objectives
10

Module 1: Content Coverage
Integrating consumer, shopper and retailer objectives
1. Alignment of consumer, shopper and retailer objectives
2. Using shopper and retailer objectives for promotions that
work
3. New Concept: The 5 WAY Retail Multiple
4. Exercise: Match Promotional Mechanics to Shopper and Retail
objectives
5. Special: Glossary of retail terms (see Appendix)
11

Introducing Key Retail Objectives
• Frequency
• IPI - Inter Purchase Interval
• Basket Penetration & Incidence
• Basket Size
• Basket Value
• AWOP – Average Weight of Purchase
• Hurdle Rates / USP / AWS

Frequency
The number of times your category is shopped
over a defined period of time.
• For example, you might shop for milk 3 X per week
= 12 – 14 X per month, but shampoo only once a
month
• This will also depend on what kind of shopper and
household type you are (how many people you are
buying for and their level of consumption)
• To drive category growth, the goal is to increase
frequency
• Relates to driving Traffic via repeat visits

IPI: Inter Purchase Interval
The time between shopping trips to buy a
category or product.
• Changes according to category and channel type
• Back to our milk and shampoo example: the milk
might have an IPI of 2.5 days and shampoo 30
days at the frequency level we described above
• The goal here is the converse of Frequency (same
concept but different lens) – we are trying to
decrease IPI.

Basket Penetration & Incidence
What % of shopper baskets your category or
product goes into.
• Some categories, eg staples like milk and bread,
are in close to 100% of baskets
• Other categories like pet food might only be in 15%
of baskets
• The objective here is to increase basket penetration

Basket Size
How many items are in each shopper‟s „basket‟
when they get to the checkout.
• „Basket‟ here refers to total purchase
• We want more items in the basket therefore we
want to increase basket size

Basket Value
Total $ value of all items in the basket
(sometimes called Transaction Value).
• Common ways to increase this are
encouraging the purchase of either more
items or higher value items via various point
of purchase marketing methods
• This amounts to an increase in Spend

AWOP: Average Weight of Purchase
Refers to number of items or weight in
kilograms or litres.
• A common retail goal is to increase AWOP
• Often via multi-buys, 2 for offers and bulk
packs
• Also amounts to an increase in Spend

Hurdle Rates
Sales per week of a given product / sku in a
given store.
• Also called AWS – Average Weekly Sales
• Or USW – Units per store per Week
• Retailers often have a minimum hurdle rate that a
product has to achieved to stay stocked
• This rate changes depending on the category
and the channel (grocery and convenience
hurdle rates higher than pharmacy, for example)

Which Retail Objectives do these talk to?
PAGE 20

What about this one?
PAGE 21

What about this one? Palmolive Winter Campaign
• Situation: Need to communicate that
Palmolive Antibacterial Handwash is
effective in protecting people from the
germs common in winter months
• Idea: „Protection from Winter Germs‟
• Activation: „Shelf back‟ necktag
execution designed to fit within „clean
store‟ guidelines but provide shelf
standout. Other activations included
sampling staff wearing scarves in-store
talking to shoppers about the benefits
of the product; in-store POS; ATL –
print ads, TV
22

Retail goals can conflict with or complement each other
You need to decide which of the retail goals you are trying to achieve
with a given activity. You can‟t have them all at once.
• Frequency and AWOP are often in conflict. A promotion aimed at
increasing Average Weight of Purchase will often simply bring sales
forward and decrease frequency unless it is married with a strategy to
increase consumption.
• AWOP and Basket Value often complement each other. By increasing the
number of items, weight and / or value of the items, Basket Value
increases.
• Frequency and Inter Purchase Interval are flip sides – if you increase one
you decrease the other
• So, how do you work out how it all relates together? The retail multiple…

Introducing the 5-Way Multiple
Frequency
Profit /
margin
Traffic
Spend
Incidence
AWOP

The Five Way Multiple
Increase home penetration via
meaningful secondary display
placement
Increase average weight of purchase
by expanding household portfolio of
products and increasing frequency of
use at home
No of
homes in
Australia
Homes
penetration
Homes
stocking
Inter
purchase
interval
weeks
Purchases
per year
Av Value
Average
weight of
purchase
Estimated
market value
2 ltr Milk 8,000,000 85% 6,808,000 1.0 52.00 $3.75 1.10 $1,460,316,000 35% $511,110,600
Opportunity 8,000,000 85% 6,800,000 0.9 57.78 $3.85 1.20 $1,815,146,667 35% $635,301,333
124% $124,190,733
GP%
GP$
Reduce inter-purchase interval with
improved shelf presentation,
signage and astute placement of
secondary displays
Increase average SKU value by taking
emphasis off promotions away from
price, trade customers up to premium
or larger pack sizes via shelf layout,
promotions and secondary displays
24% increase
in sales to
$1.815b
Increase in
$ profit of
$124m
25

Implications for Promotions
The retail objectives for your promotions
need to be clear in the planning process.
• Identify the key retail goals that help
address the client problem / opportunity
• Your promotional mechanic should be
selected according to which retail goal it
relates to
CONDUCT EXERCISE.

Promotion Types and Mechanics
Retail Promotions
Consumer Promotions
➟ Price off
➟ Multibuys/2 fors
➟ Bonus packs
➟ Bigger size/extra free
➟ Cross category
➟ Win something –
national/state based
➟ Win in store (often product)
➟ Buy and get (giveaways,
merchandise, glassware)
➟ Sampling & demonstrations
➟ Events
What else?

POP Quiz: Match the promo mechanic to the retail objective
Exercise: Aligning Promotions
Thinking about BluRay, and competitive 2/$50 promos…
Retail Goal
Promotion Mechanic
Frequency
Basket Penetration &
Incidence
AWOP/Basket Size
Spend/Basket Value
Traffic (aisle/store)
Map at least one marketing type/promotion mechanic to each retail goal

Questions to ask yourself
… when developing an activity brief
Who is it for?
Desired Shopper
Outcome?
Retailer Objectives
‣ Loyal brand buyers ‣Frequency
(AWOP/frequency based) ‣AWOP
‣ Occasional buyers
(frequency based)
‣ New consumers (trial
based)
‣Increase spend
‣Trial
‣Brand switch
‣Build loyalty
‣Penetration
‣Awareness
‣Drive traffic
‣Increase frequency
‣Increase spend
‣Improve basket
penetration
‣Increase AWOP

Marketing goals vs shopper & retail goals
To get best traction, campaigns and promotions need to match back to shopper and retailer objectives.
Consumer Shopper Retailer
Past 24hour/7 day
consumption
Consideration set
Brand preference
Adoption scale
Frequency
Interpurchase interval
Basket penetration
Household penetration
Switch vs incremental
AWOP
Spend
Cross category purchase
Category abandonment
Time at shelf
Hurdle rates
Traffic/footfall
Category growth
GSR/NSR
Transaction value
Basket value
Out of stocks
Aisle abandonment
Store dwell time

And a final thought ...
• Herb Sorensen reckons the 3 shopping “currencies" are „time, money and angst‟
• He further thinks the game is about getting them to spend more in their existing
time in store, rather than try to extend their time in store
• This is in contrast to some of the supermarket retailers‟ thinking about putting milk
at the back of the store to make shoppers spend more time in store, traversing
more aisles
What do you think?
PAGE 31
Source: Sorensen, H: The Three Shopping Currencies, in ‘Shopper Marketing’, Markus Stahlberg Ed, Ville Maila, 2010 Pg63

Exercise: Integrating shopper into retail objectives
1. Split into teams of approx 4-5 people
2. Each team is decides a fun new product
to launch (can be silly), matched to a
retailer (this will be the centre of your
application exercises for the rest of the
day)
3. Pick a retail objective (or one may be
allocated per team, each one different)
4. Teams to come up with a topline
promotion for their product in their
selected retailer, including the
mechanic, to achieve that retail
objective
32 Exercise total time: 45 minutes

2. What is Shopper Marketing?
What‟s in the toolbox?
33

Module 2: Content Coverage
What is Shopper Marketing?
1. Evolution of Shopper Marketing
2. Activities & Scope of Shopper Marketing - where does Category
Management fit?
3. Shopper Marketing around the globe – Best Practice & examples
4. Exercise: integrating Consumer & Shopper marketing vehicles
34

What is SM? Not this
Nor „category management‟ rebadged, nor „consumer promos‟ rebadged
35

The story of Cat Man is part of the story of retailing…
Markets of Trajan, 2nd century AD, comprising 150 shops, Rome, Italy
The Owner-Operator model has been around for some time. What‟s happened?

How did we get to this?
• 7,390 stores
• 2 million employees
• 14 countries
• 200 million customers per
year
• China‟s 5 th largest customer
(after 4 other countries)

Retailing was evolving rapidly in the 1980‟s
Rapid advance
of Information
Technology
Decline of brands &
growth of own label
High NPD
failure rate
Focus on
operational
efficiency
Shoppers
Static grocery
market
Increased price
competition
Retail market
saturation &
tightening of
regulation
Retailer
concentration

Fewer and bigger retailers met fewer and bigger suppliers

How could these increasingly dominant companies
continue to grow?
• Retailers were managing their
categories
• How could large suppliers work more
effectively with them?
• „Category Management‟ coined by
Brian Harris and Larry Hernandez
in the mid-late „80s as part of the
notion of looking at categories as
business units
• Went on to found The Partnering
Group in 1990

TPG invented the 8 step process
Review
Definition
Role
Assessment
Scorecard
Strategy
Tactics
Implementation
• This worked in
bringing retailers and
suppliers together
(although funded by
suppliers!)
• Could be chart heavy
and retrospective
•Basic strategic planning
and review process.

In Europe, ECR identified four pillars:
Supply
Demand
Product
Replenishment
Promotions
Range &
Assortment
New Product
Introduction
“Improving business effectiveness through the elimination of non value-added activities
and their associated costs, and passing the benefits on to the customer, thereby improving
customer satisfaction” ECR Europe
Primarily about taking costs out of the supply chain

These became the thirteen ECR Initiatives
Demand Management
Strategy and
Capabilities
Optimise
Assortment
Optimise
Promotions
Optimise
Introductions
Intermediate
Warehousing
Reliable
Operations
Product Supply
Continuous
Replenishment
Cross Docking
Automated Store
Ordering
Enabling Technologies
Electronic Data
Interchange (EDI)
Electronic Data
Transfer (EDT)
Item Coding and Database
Management
Activity Based
Costing
Still about taking costs out of the supply chain!

Nielsen refined this to 5 steps in 1992:
Category
Review
Target
Consumers
Merchandise
Planning
Strategy
Implementation
Results
Evaluation
This is effectively „Cat Man Lite‟, with the 8 steps crammed into the Category Review
Works for a while, but need to fully review the category to really understand the opps

None of it focused on the shopper!
• Purpose was mostly about
efficiencies for retailers and
manufacturers, based on
what sells
• Tweaking of „yesterday‟ for a
better today

Meanwhile, ECR has moved on:
Demand Management
Demand Strategy and Capabilities
Collaborative Shopper Value Creation
Enablers
Common Identification Standards
Electronic Message Standards
Optimise
Assortments
Optimise
Promotions
Optimise
New Product
Introductions
Global Data Synchronization
Supply Management
Supply Strategy and Capabilities
Integrators
Collaborative Planning and Forecasting
Responsive
Supply
Integrated
Demand
Supply
Operational
Excellence
Cost/Profit and Value Management

ECR scorecard today
Demand Management
Demand Strategy and Capabilities
Collaborative Shopper Value Creation
Enablers
Common Identification Standards
Electronic Message Standards
Optimise
Assortments
Optimise
Promotions
Optimise
New Product
Introductions
Global Data Synchronization
Supply Management
Supply Strategy and Capabilities
Integrators
Collaborative Planning and Forecasting
Responsive
Supply
Integrated
Demand
Supply
Operational
Excellence
Cost/Profit and Value Management
Not just demand fulfilment, but demand creation too

8 step process revisited:
Definition
Role
Review
Assessment
Scorecard
Strategy
Best Practice Benchmarking
Category, Shopper & Consumer
Insights & Trends
In-store Vision Development
Tactics
Implementation
The core of this process is
still valid, although we can
expand the scope

ECR Europe definition of Category Management
“The strategic management of product groups
through trade partnerships
which aims to maximize sales and profit
by satisfying consumers‟ needs”
Creating value for shoppers together

Current Category Management Scope (purple)
Planogram and
Category Space
Range
(Choice)
Supply chain
opportunities
Logistics
Creating
shopper value
Price & promos
(Price/Value)
In Store experience
(Environment)
Best for New
Long-term vision
Shopper marketing
Category Marketing
Instore Operations

Instore, CatMan can be viewed through the POP drivers lens
“RSVP3”:
•R
•S
•V
•P
•P
•P
ange
pace
isibility and Display
rice
romotion
ersuasion (store staff – underused just about
everywhere)!

We‟re going to cover both.
Category Management vs Category Development: our view
Category Management & Category
Plans
Category Development
Tweaking yesterday‟s results
for a slightly better today
Incrementality
Annual plans
Existing category norms
Play the existing game better
Horizon/future focussed
Tomorrow‟s growth
Directional
Mid term (3-5 years)
Challenges norms
Determine what the game is

Different types of plans that are linked to the Category Plan
Category Plan
Brand Plan
Channel Plan
Business &
Customer Plans
Internal and retailer facing
plan
Total category / multi-brand
Category segments
Range / Portfolio
Internal facing plan
Consumer marketing focus
All categories / products
relating to one brand
Internal facing plan
Cross customer within a
channel
May be multi-category
Category level
Retailer specific
Retailer facing
Sales focussed
Eg Juice
Eg Berri
Eg Mass, Grocery,
Specialty
Eg WW, Coles
Express, 7 Eleven
Different but related – they all need each other

Brian Harris, „father of CatMan‟, looks at it like this
Retail Marketing – The Big Waves
Scanning
Space
Management
1985
Category
Management
1989
ECR
Category
Management
best practices
1995
Next generation
store designs
2000
Shopper
marketing
TODAY
1975
Source: Harris, B: Bringing Shopper into Category Management, in ‘Shopper Marketing’, Markus Stahlberg Ed, Ville Maila, 2010 Pg29
54

Summary
• Category management – and
trade/customer marketing - is
evolving into more holistic shopper
marketing
• To stay relevant and reap rewards
companies and brands need to look
at the entire shopper experience
• Retailers are looking to suppliers for
insight and inspiration
So now onto Shopper Marketing ...

Shopper Marketing: some definitions
“The application of shopper insights along the path to purchase, to affect purchase behaviour in order
to increase sales for both retailers and manufacturers”.
- POPAI Australia Shopper Marketing Industry Council, January 2011
“The use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted
shoppers, enhance the shopping experience, and improve business results and brand equity for
retailers and manufacturers.”
-USA Retail Commission into Shopper Marketing, April 2010
“All marketing stimuli, developed based on a deep understanding of shopper behavior, designed to
build brand equity, engage the shopper (i.e., a consumer in „shopping mode‟), and lead him/her to
make a purchase.”
- Deloitte/GMA 2007: Shopper Marketing: Capturing a Shopper‟s Mind, Heart and Wallet
56
What‟s yours? Does it differ retailer vs manufacturer?

Themes and Trends
FROM
TO
57

Shopper Marketing status
Key Takeouts from the ShopAbility/POPAI Aust & NZ
Shopper Marketing industry surveys 2010 and 2011
PAGE 58

The new news: majority think shopper starts BEFORE store
22% Mindset before store
26%
Influence at any point
26%
26%
Inside and immed
outside store
Inside Store
2010 study. N = 134. Top 2 box – agree/agree strongly
Fairly evenly split. Over half think it's before store one way or another.
This is a key shift, particularly for brand manufacturers.
59

When does a consumer become a shopper?
N = 134. Graph in # responses
100%
90%
Disagree strongly
80%
70%
Tend to disagree
60%
50%
Neither
40%
30%
Tend to agree
20%
10%
Agree strongly
0%
At Home At Work In Transit Outside Store In Store
All agree is instore. 80% consider Outside Store included. 60% consider At Home and In Transit included
where 60 only 40% consider At Work included. The majority include areas/mediums outside of the store .

Shopper Marketing Activity Scope: fairly even, and broad, split
Q. In your opinion, what type of activities does „shopper marketing‟ involve?
140
120
100
80
60
40
20
0
Source: SM Survey 2010. N = 134.
Graph in # responses
Traditional category management activities included. Ambient/sensory coming up 8th ... Definitely included
(but 61 not necessarily acted on). Rating of media and sensory ties in to need for 'theatre' in interviews.

Shopper Marketing Technologies are evolving rapidly
62

Usage of Digital and Mobile tactics for shopper in the USA
PAGE 63

New technology uses in bricks and mortar (QR codes)
PAGE 64

And here‟s how the digital SM uptake looks in Australia
Q. Which digital, online or social media techniques have you trialled or adopted for shopper
marketing in the past 12 months? %
60%
50%
40%
30%
20%
10%
0%
PAGE 65
Source: SM Survey 2011. N = 126

Instore, there is interest in dynamic (interactive, digital) rather
than static forms of POP
70%
60%
50%
More
Same
Less
40%
30%
20%
10%
0%
Source: SM Survey 2010. N = 134.
Graph in # responses
Moving away from just paper and cardboard (traditional POP). More interest in dynamic vs static forms.
66

Recent thinking from the USA
Key takeouts from:
The Deloitte/GMA studies 2007 and 2008
The Booz/GMA studies 2009 and 2010
PAGE 67

Shopper Marketing Activity Types: Booz 2009
68

Shopper Marketing Vehicles Taxonomy: Booz 2010
(Thinking progressed from their 2009 study)
69

Different vehicles play different roles:
Awareness and Consideration
70

Different vehicles different roles:
Trial and Purchase
71

Different vehicles different roles:
Loyalty and Advocacy
72

Alignment of Shopper Marketing platforms to Brand
Objectives: Booz 2010
73

Other types of vehicle selection considerations
74

What is SM? Implications:
Good news for shopper and brand marketers!
• More holistic : Talks to the prestore/instore/post store „cycle‟
• Not limited to traditional executions: as much about emotional as rational
• A means of engaging brand marketers: using mediums they understand ...
„shopper back‟ into home, rather than „consumer forward‟ into store
• Broadened perspective on what Shopper Marketing activities = agency
opportunity, and opportunity to trial some of the newer forms.
Time for the needle to shift.
75

Exercise: Understanding Shopper Marketing
• Scope: New product launch – shopper marketing
vehicles to use
• Each team „makes up‟ a new product (eg coffee
that already comes in its own mug). They can be
fun and fantastic / joke products
• Determine how you are going to integrate – and
differentiate - consumer and shopper marketing
into the launch of this product? Which consumer
and shopper marketing vehicles would you use,
and why?
• Present to the rest of the group your launch plan.
Topline level and big ideas is fine – you will be
drilling down to more specifics on this campaign
in other exercises.
76 Exercise total time: 45 minutes

3. The Shopper Cycle
… or, the „Path to Purchase‟
77

Module 3: Content Coverage
The Shopper Cycle and its Dynamics
1. Shopper influences - Prestore, Instore and Post store
2. Shopper marketing tools and techniques – where they fit into the cycle
3. Role of traditional consumer marketing in the cycle
4. New Concepts: P2P (path to purchase)
5. Business Model: Shopper cycle
6. Exercise: Map a consumer P2P for a Specific Category in a Specific
Channel
78

The traditional „Path to Purchase‟ started at home ...
Consideration
Conversion
Where they are
At Home/Work In Transit Entrance to
centre
In centre
In store
What they see

While Instore P2P: different roles at different stages

Instore Path to Purchase:
different areas of the store play different roles
• Access, entry, welcome
• Path to shelf (decision corridor)
• Decision at shelf
• Path to pay (impulse zone)
• Queue and payment transaction
• Exit.

Path to Purchase: what shoppers likely see at each stage
… whether and what they NOTICE is a different question …
• Aframes, sandwich boards, external signage, carpark media,
floor mats, hanging signs/navigation signage
• Hanging signs, pallet/floor display headers, gondola ends
• Shelf and floor POS – brochures etc. Price ticketing.
• Pallet/floor displays, impulse category displays
• Checkout displays, checkout separators, headers on
checkouts, impulse displays
• Exit media – A frames, posters

BUT online and mobile technology is blurring the „P2P‟
Where consumers stop and shoppers start is blurring
FROM
TO
Prestore
Instore
Consumer
Shopper
Consideration
Conversion
“70% of decisions are made INSTORE” “ 75+% of decisions are made
BEFORE the store”
PAGE 83

The „first moment of truth‟ is now everywhere
FROM
TO
„First moment of
truth‟
„Second moment
of truth‟
PAGE 84

ECR‟s view of the consumer/shopper journey (April, 2011)
85

Or the GFK Interscope „Web‟
86

In fact, Harvey Hartman has written an entire article on this
Key points from his article „For shoppers, there‟s no
place like home‟:
• Shopping behaviour has more to do with things
happening in the household than things happening in
the store
• Cultural occasions are more important than
behavioural scripts
• Cultural occasions drive shopping behaviour, where
brands and products are tools to complete occasion
specific tasks
PAGE 87
Source: Hartman, H: For Shoppers, There’s No Place Like Home in ‘Shopper Marketing’, Markus Stahlberg Ed, Ville Maila, 2010 Pgs 38-41

Roles along whatever the „P2P‟ is do still change, however
PAGE 88
Courtesy Kraft USA

Techniques can be divided - more or less - into prestore,
instore and post store
Source: POPAI Shopper Marketing Industry
Council, February 2011
PAGE 89

Some examples:
Prestore and instore
PAGE 90

La Famiglia Garlic Bread:
Competing against private label with strong branding and demos
91

Masterchef Australia: Coles Sponsorship Leverage
92

Coles Feed the Family for Under $10:
Opportunities to include branded condiments etc
93

Exercise: Shopper Cycle and Dynamics
• Taking the new product launch plan each
team has developed, develop further by
mapping the path to purchase pre, in and
post store for the nominated retailer and
new product
• Team to present to the group at which
points the shopper will be engaged by
what mechanic during the campaign.
Draw it up on a timeline if you like.
94 Exercise total time: 45 minutes
• Specify why you have chosen the specific
touchpoints and communications vehicles
that you have.

4. Touchpoint Marketing &
Messaging
95

Module 4: Content Coverage
Touchpoint Marketing & Messaging
1. Instore touchpoints using the POP drivers
2. Mapping all touchpoints and points of engagement on the path to
purchase
3. Determining communication messaging needs at each touchpoint
4. Prioritising the touchpoints based on category and channel
5. Determining an instore POP „picture of success‟
6. New Concepts: POE (points of engagement), POP (point of purchase),
Touchpoints,Picture of Success
7. Exercise: Mapping an instore Picture of Success for all points of
engagement for Category X in Channel Y
96

Instore POP Drivers - Introducing RSVP3
Traditional „Category Management‟ sits in Range and Space, with a bit of Price Promo thrown in
• Range
• Space
• Visibility
• Price
• Promotion
• Persuasion
Ranging and deletions strategy
Space and layout – flows, adjacencies, planograms
Visibility and merchandising – what to put where
POS optimisation including calls to action
Price - pricing and promotion role and strategy
Consumer promotion role and strategy
Occasion-based marketing opportunity identification
Persuasion and service – getting incremental sell, switch
sell, upsell
Shopper education tools

Range
Ranging Strategy asks and solves:
• What is the role of our category to trade
and shoppers?
• How does this impact our point of
purchase and category strategy, and ability
to achieve our goals?
• In each of the channels we operate, what
is the optimum range to ensure efficient
stock rotation?
• How should it differ per channel based on
who shops there?
• How do we manage introductions and
deletions?

Range: Category Segmentation (example)
Confectionery
Loose Bars Bags
Block Box
Kids Chocolate Sugar Chocolate Chocolate Chocolate
•How the category is segmented is generally how it should be laid out on shelf.
•Another example might be by audience eg Kids, Family, Adults
•Or by health eg low fat, full fat, weight management etc.
•How is your category segmented and where do your products sit?
•What new opportunities does segmenting the category throw up?

Reach
1
5
9
13
17
21
25
29
33
37
41
45
49
53
57
61
65
69
73
77
81
85
Range rationalisation: traditionally cut „from the tail‟
... where the „tail‟ is skus not contributing to first 80% of volume/value
Offpremise liquor category X example
100%
80% Reach
Channel AU LL WW BWS 1C
Sku count 64 66 54 69 48
80%
60%
„tail‟
60%
Channel AU LL WW BWS 1C
Sku count 25 28 20 28 17
40%
40% Reach
Channel AU LL WW BWS 1C
Sku count 12 12 8 11 8
20%
0%
In this example, 1 st
Choice achieves the
greatest reach
efficiency vs. sku count
National LL WW BWS 1 Choice
100
However, cutting „from the back‟ does not acknowledge the role of

Space & Layout
Bourbon Scotch Rum Vodka
& Gin
Liqueurs
Premium
Mainstream
Value
Bottled spirits example for bottleshops
Space and Layout Strategy asks and solves:
• Where should the category be located in store?
• How should the category be laid out so the shopper
can find what they want most easily?
• Which category segments should be in what order?
• Based on space to sales ratios, what space allocation
and facings should each segment, each brand and
each sku have?
• What can we realistically get over and above what
sales are telling us and what retailer story do we need
to achieve this?
• Outputs: flows, adjacencies, planograms

Space Management: Principles, Definitions, Considerations
This SKU has 3 facings in a medium
density category.
Term
Adjacencies
Definition
What goes next to what at category segment and SKU level.
Days of supply
How many days‟ worth of sales sit on the shelf for any one
product at any given time.
Density
Facing
Flow
Movement (Velocity)
The number of facings each SKU receives where dense
categories have only 1-2 facings per SKU (thus making the
category hard to „read‟, eg Vitamins) and sparse categories have
multiple facings per SKU (eg soft drinks).
A product „slot‟ on shelf. One slot = 1 facing. Generally to be seen
easily (and depending on product size) most products need
minimum 3 facings.
How the category is laid out along the aisle – what goes first,
next, and last from left to right
How quickly the product moves off the shelf. Stock turns per
day/week. Impacted by shelf refilling schedules and promptness.
Over facing
Space to Sales
Under facing
Vertical Blocking
When a brand or product is over represented by the number of
facings it has on shelf . When its % of facings on shelf outnumber
its share of sales. Sometimes seen with „beacon‟ brands in a
category, to avoid Out of Stocks.
The principle that whatever % a SKU represents of category sales
is the % of shelf facings it should receive.
When a brand or product is under represented by the number of
facings it has on shelf ... When its sales outnumber its share of
space. Often occurs in dense categories with long „tails‟.
Brands and/or category segments are traditionally blocked
vertically so they are easily „read‟ by shoppers

Visibility
Visibility, Display & Merchandising is all about what to put
where, why:
• What are the most important types of visibility pieces and
locations for my category?
• Where should our displays be placed? Where are the hot spots
for our categories?
• What POS and shopper education tools should we invest in?
What are the most effective and important ongoing POS pieces
for each channel, based on what the shopper sees?
• What should be communicated on our POS for best effect?
• What are the occasion based marketing opportunities for my
category and how can we use these to get additional displays
and sales throughout the year?
• How will we know how many displays we are achieving, and
their effectiveness?

Primary vs secondary locations
Primary:
• Mostly destination purchase
• Can be destination browse
• May be impulse browse on walk
past
Remembering impulse more likely after „main mission‟ completed.
Secondary:
• Mostly impulse/browse
• Occasion or solution based if colocated
• Pure impulse if an „island‟

Areas of the store:
What are the your chosen category‟s opportunities in each?
Grocery
• Fresh Dept
• Deli
• Grocery dept (aisles)
Plus:
• Checkouts
• Service desk
• Front of store
Mass
Depts:
• Apparel
• Home
• Health & Beauty
• Home Ent
• Others ...
Plus:
• Layby/returns
• Checkouts
• Price checkpoints
Specialty
Depts:
➟ Home ent
➟ Computing
➟ Music
➟ Gaming
➟ Others ...
Plus:
➟ Registers
➟ Impulse bins

Understand the whole store:
POP strategy = where to execute around whole store
Fridges – dairy
Deli
Aisles
Aisles Aisles Aisles Aisles Aisles
Frozen
goods
Fresh fruit
& veg
Check
out
Check
out
Check
out
Check
out
Check
out
Bakery
Tobacco & flowers
Travel/navigation patterns change based on trip type.

Display Role changes by location
‣Prompt/remind
‣Switch (planned purchase)
‣Upsell/trade up
‣Incremental sell (additional purchase)
‣Impulse?
Determine what each of the display locations is intended to do.

Prioritising points of engagement
Based on:
• Category sales data per area of store (where avail
– the holy grail!)
• What‟s destination and where the destination
categories and products are
• Where impulse opportunities are – standalone and
co-located
• Where the major traffic flows are
• Store type/channel segment and why shoppers are
there
• How shoppers behave in the store (shopper
research) – what their major influences are.

Price
Pricing Strategy asks and solves:
• How important is price for our category to shoppers
in each channel?
• How do our shoppers gauge value?
• What are the price ceilings and floors, and optimal
price points?
• How should we price ourselves relative to
competitors?
Pricing Promotion Strategy:
• Is price promotion worthwhile – what‟s the likely
ROI?
• What should price promo frequency and depth be?

What works for DVD category? What doesn‟t?
Pricing Mechanics
• EDLP: everyday low price eg Big W general
positioning
• EDP: everyday price (not necessarily low)
• Hi/Lo: promotional pricing. NB if you do Lo
often enough it winds up resetting (lowering)
the shopper‟s perception of the average
price
• Others?

Price promotion considerations
Promotion principles
Promotion objectives (AWOP, Freq, Spend etc)
Promotion types and mechanics
Price promotion: frequency and depth
Seasonality and key retail occasions
Analysis & application
Baseline vs promotion sales
Cannibalisation
Promotional calendars and slotting
Promotion support mechanisms

Price and purchase decision hierarchies
• Price goes up and down in
importance in purchase decisionmaking,
depending on a number of
factors:
• Category type – level of
involvement
Flavour
Pack size /
format
Same
category,
different
shopper
Price
Flavour
• Shopper type – degree of price
sensitivity
Brand
Brand
These can vary greatly.
Price
Pack size /
format
How do pricing tiers and the trade up tree work in context of the purchase hierarchy?
PAGE 112

Promotion
Consumer Promotion Strategy asks and solves:
• What is the role of instore promotion in our category
in each channel?
• What are the most effective promotion mechanics
based on our category objectives?
• How will our promotions deliver against retailer
objectives - why should they get on board?
• What do we need to know to build an optimal
promotional calendar for our categories and
products?

Promotion objectives: what is the role of promotion?
„I want to grow sales and our market share‟. Well, yes. But how?
Who is it for?
• Loyal brand buyers
(AWOP/frequency
based)
• Occasional buyers
(frequency based)
• New consumers (trial
based)
Desired shopper outcome?
•Frequency
•AWOP
•Increase spend
•Trial
•Brand switch
•Build loyalty
•Penetration
•Awareness
Retailer objectives
•Drive traffic
•Increase frequency
•Increase spend
•Improve basket
penetration
Which mechanics achieve these objectives?
How important is promotion in the purchase decision tree?

Promotion Support mechanisms
• Shelf ticketing
• Advertising (ATL &
BTL)
• Catalogues
• Displays
• Other POS
• Better results when
combined rather than
standalone
Calendar combines all promotions, regardless of support mechanisms.
Discuss: how do we determine which promotions get which support mechanisms?

Persuasion (store staff)
Persuasion Strategy asks and solves:
• Is our category an impulse, add-on or trade up
opportunity?
• With which other products and categories are our
products best sold in tandem?
• Can our brands be switch sold?
• What do we need to do to get store managers and
staff to actively promote our products? (eg training,
incentives)
• Role of switch sell, incremental sell, upsell, cross
sell
Persuasion becomes more important the more involved the product and channel.

Instore „pictures of success‟
• A tool for sales and
merchandising
teams
• A store map,
indicating what
area needs to be
activated with what,
and what priority it
is
• Priorities can be
indicated with
numbers, traffic
lights, letters etc
PAGE 117

Combining instore drivers and out
of store messages
Some examples.
See also case studies: “The Connected Store”,
“Mobile Applications”
118

Case Study: Walmart Simple Steps
• Walmart is inviting
shoppers to „Take a
Healthy Step for
Less‟
• By showing them
how to save on
health and wellness
offerings such as
fitness equipment,
workout gear and
nutrition items, as
well as healthy
options from the
grocery aisle with its
“Simple Steps”
program.
• The retailer has
bundled these
products together in
a variety of touch
points with a “Save
on Healthy Living”
tag.
119
Source: MarketingLab April 2010

Case Study: Target Super Valen Bowl
• Two Big Dates to
Love: The Super
Bowl and Valentine‟s
Day – in shared
POP, media and
other marketing
materials and under
a "Happy
SuperValenBowl"
theme.
• The events were
also united in a
"Super Love Sender"
program on Target‟s
Facebook page.
• “Fans“ could send
customized video
cards to help
determine how to
allocate a $1 million
donation for
educational
programs.
120
Source: MarketingLab April 2010

Case Study: Publix Greenwise
• Greenwise is a part
of Publix‟s broader
health and wellness
program.
• This is a one-stop
shopping
destination for
anyone who
appreciates
organic, all-natural,
and earth-friendly
products, excellent
food and non-food
products, and a
thoroughly
enjoyable shopping
experience.
121
Source: MarketingLab April 2010

Case Study: OfficeMax In Place System
• OfficeMax
reinforced recent
efforts to attract
female shoppers by
introducing an
exclusive In-Place
System brand from
"organization
expert" Peter Walsh
of TLC‟s Clean
Sweep.
• Merchandised on a
dedicated endcap
and an in-line
display, the brand
comprises 21 SKUs
of file folders,
desktop sorters, file
totes, magazine
files, and other
stationery products.
122
Source: MarketingLab April 2010

And a bit closer to home ...
123

Instore POS to suit the retailer
124

Supported with a national TVC
125

And with on-pack stickers
126

And digitally, with a microsite, website and eDM
127

Coca-Cola „360‟ activations of the FIFA World Cup 2010
128

... across Europe
129

Kraft occasion based instore and out of store
activations for „Philly‟
130

Multiple occasions
131

Executed out of store and instore
132

133

Uncle Tobys/Woolworths campaign:
„Go Red For Women‟ 2010
• Situation: UNCLE TOBYS oats wanted to leverage its sponsorship with the
National Heart Foundation‟s Go Red for Women. A great fit with heart wellbeing
for the brand. But getting retailer buy in for a charity event which had no shopper
hook or retailer tie in was proving tricky. After all, we needed the agreement to pay
back in sales.
• Task: Create a compelling campaign that spanned the path to purchase if to
engage one key retailer (Woolworths) including a strong shopper call to action
even though the awareness for the GRFW campaign was still very low.
• Activity: We created a campaign that shoppers could understand in a nano
second and that brought to life our partnership with the heart foundation.
• Result: Impactful displays built in stores, refreshing our oats season mid way
through, keeping our displays up for longer and resulting in a record oats season
in Woolworths.
134

Go Red for Women: Activation
• Out of store: ATL
Radio campaign
encouraging shoppers
into Woolworths.
• Near store: UT Nail
Bars strategically placed
in shopping malls near
prominent Woolworths
stores
• In store: ambassadors
to educate their
shoppers about GRFW
and UT cholesterol
lowering capabilities
135

Coles Oats Season 2011
• Situation: Our aim was to kick off the oats season early in Coles. Usually oats
displays go up post Easter but with Easter being very late in 2011, both UNCLE
TOBYS and Coles were concerned about missing a whole month‟s worth of
sales. Coles had their own winter theme of “Get out and Get Active” where as
ours focused on our key brand messages of “cholesterol” and “Ready in 90
seconds”
• Task: We needed a display unit that would satisfy both Coles and Uncle Tobys in
terms of design and artwork that could go into stores for April (it was now March)
• Activity: We worked collaboratively with Coles to find an artwork solution where
both parties were happy
• Results: The unit was placed in over 500 stores and kick started the oats season
early in Coles, ensuring a successful 2012 oats season.
136

Coles Oats 2011: Activation Challenges
• Creative: creating a Coles look and
feel and a tie in with their winter
theme (“Get Oat and About with
Coles this winter”) which enabled
UT to keep key branded messages.
• Unit design: Coles operations team
design guidelines - making sure it
ticked all Coles‟ boxes and had
enough stockweight
• Product content: Coles requested
Nutella inclusion which Nestle
allowed in order to put the customer
first (despite causing some internal
discussions with confectionery
division). Honey may be included
next year as a more natural fit.
137

Exercise: Touchpoint Messaging and Marketing
Using your team‟s same campaign, determine:
1. What do you need to create/produce?
2. Where does it need to go? (Prioritise the touchpoints)
3. How does the message need to change out of store vs instore,
and within the store?
4. What should the messages say? (campaign tagline, out of
store messages, instore calls to action)
5. Provide a topline „picture of success‟ for that product launch in
that retailer
6. Present your thinking to the group (optional, based on time).
138 Exercise total time: 45 minutes

So What?
• Getting instore execution right is the MINIMUM, not the end point. If you don‟t
execute out-of-store you are missing several tricks
• Multiple media and geographical points to reach shoppers. You can‟t do them all,
so choose those that are most impactful for your target shopper, based on what
you know about them
• Use occasion based and trip type marketing for SALIENCE
• As shoppers become increasingly accustomed to deep discounts, brand winners
will be those who are remembered for an emotion or experience.
139

5. Shopper Behaviour
Fundamentals
See also case studies:
Campbell‟s Meal Solutions
Kraft Occasion Based marketing
140

Module 5: Content Coverage
Shopper Behaviour Fundamentals
1. Usage occasions vs shopping trip missions
2. Marketing to occasions and missions
3. Shopper segmentation and store clustering – changing your offer
according to who your shoppers are
4. New Concepts:-Occasions, Missions, Dayparts
5. Business model: Category/Channel/Occasion/Trip type matrix
6. Exercise: Build an occasion based marketing initiative (may include
multiple manufacturers across the chosen category).
141

Core shopper behaviours: The 5Ws + 5Hs
Ws
WHO
Key shoppers of the category are
WHAT
They buy – subcategory, product,
format, size
WHEN
They buy it – times of day, days of
week, seasonality
WHY
They buy it – occasions, missions,
drivers, motivators, influences
They don‟t buy it – barriers to
purchase
WHERE
Channel , retailer and store choice
Where within the category
layout/shelf they buy
Do they go and not go in the store?
What do they see/not see? Where
are the display „hot spots‟ ?
Hs
HOW
They buy – how they make
decisions
Purchase decision hierarchy
They shop – browsing, degree of
planning vs impulse
HOW MANY
People buy from the aisle, from the
primary and secondary locations?
Items do they buy at a time? What‟s
the average weight of purchase?
HOW MUCH
Do they spend on the category per
purchase occasion?
HOW OFTEN
Do they buy the category? Daily,
weekly, monthly, quarterly?
How long is it between purchases on
average?
HOW LONG
Do they spend in store? In the aisle?
142
© ShopAbility 2009

Information types
Who
What
When
Where
Why
Aspect Includes things like ...
Key shoppers of the category are
Shopper segment profiling
They buy – subcategory, product, pack format, pack size, serve size
They buy it – times of day, days of week, seasonality
They buy - channel , retailer and store choice for that category
Where within the category layout/shelf they buy
Where do they go and not go in the store? What do they see/not see? Where are the display „hot
spots‟ ?
They buy it – usage occasions, missions and trip types, drivers, motivators, influences
They don‟t buy it – barriers to purchase
Likes, dislikes and preferences
How
How Often
How Many
How Much
How 143 Long
They buy – how they make decisions
Purchase decision hierarchy
They shop – browsing, degree of planning vs impulse
Do they buy the category or shop the channel/retailer/store? Daily, weekly, monthly, quarterly,
annually?
How long is it between purchases on average? (IPI - Interpurchase Interval)
People buy from the aisle, from the primary and secondary locations?
Items do they buy at a time?
What‟s the average weight of purchase (AWOP)?
Do they spend on the category/at the store/per basket - over time? Per purchase occasion?
Do they spend in store? In the aisle?

Hows : some key concepts
• Traffic – browse – buy: which is most
important?
• Dwell time: engagement or confusion?
• Planning: what is true impulse?
• Purchase hierarchies: used to help shoppers
navigate the category (space/layout and
pricing strategy, brand blocking) based on how
they make category purchase decisions.
144

„Hows‟ : Let‟s talk about purchase
decision hierarchies
Otherwise known as Consumer Decision Trees
145

Not one-size-fits-all for a category. Herein lies the complexity ...
Filters pre-store are things
like:
• Who the shopper is
(attitudes, behaviours)
• Who they are shopping
for
• What the occasion is
(meal type, degree of
formality)
• Where they are (location)
• Attitudes to cooking
• Attitudes to health
• These then become the
minimum level of
appropriateness criteria
for the category they
are shopping.
Typical Hierarchy Elements
• Brand (including private
labels)
• Pack type/format (eg can,
bottle, tetra pack, bag,
block, bar, box)
• Pack size
• Product type (eg type of
cheese)
• Flavour (eg strawberry,
chocolate)
• Price
• BUT there are
additional elements for
different categories.
Hierarchy elements differ
by category
• Dairy: fat content
• Cat food: will my cat eat it
• Muesli bars: nutrition
content
• AND they change
according to the
shopper segment/type
of shopper.
146

Example: Dairy Category X Decision Hierarchy
Lenses pre-store: Who am I?
Before fixture (subconscious decisions):
Level of
involvement
Occasion
Less variable factors – lens
Attitudes to food & dairy, household type /
who buying for, occasions, Health / diet
Format
Type
Full fat
Eg Tub /
bottle
Lite
No fat
At fixture (conscious decisions):
Size
1kg
500g
500g
500g
Variable factors –
How much will I spend? how much do I
need? what‟s on promotion?
Price
Cheapest
possible
2 for
special
Cheapest
possible
Catalogue
special
Product
WW PL
Brand X
Coles PL
Brand X
147

Typical Xmas gift purchase decision hierarchy
What
recipient is
into
Perceived
worth /
quality
Price
148

Home entertainment category: Shopper Segment X
PreStore
InStore
Range Channel
Genre Newness
Who has a
big range?
Who has the
best
experience?
Influences:
•Theatre
•Hype
•Covers
•Merchandise

Home entertainment category: Shopper Segment Y
Catalogs, online
Title
Price
Store
Who has
best deal?
What‟s on
offer?
•Loyalty
programs
•Multibuys
Price
Available
Is it at the
advertised price?
Do they have it
in stock?
Extremely highly planned, very hard to influence instore.

Wine hierarchy:
Differs according to shopper level of involvement
Occasion Who is buying Mood Location
Trip Type
Alcohol
Wine
Colour
High
involvement
Med
involvement
Low
involvement
Region/ Variety Variety Price
Price Price Variety
Brand Brand Brand
Need to quantify the segments to get dominant type. Even so, how do you talk to them all?
151

How can you apply a purchase decision hierarchy?
• And how does it differ from Navigation?
152

Grocery shopper Who: Not just „MGB‟
Lifestage and household type/size key shopping determinants
SINK/
YOUNG
OLDER
EMPTY
DINK
FAMILY
FAMILY
NESTER
• More disposable
income = less price
conscious
• More into quality,
premium, gourmet
• Pets (small dogs)
• Entertaining
• Smaller living &
storage space =
smaller packs and
volume
• Baby, kids and
school
• Sports and nutrition
• What the kids like/will
eat
• More budget
conscious
(mortgage)
• Brand repertoires for
variety
• Feeding the masses
• Volume for the best
price
• More private label
• Larger packs and
bulk buys
• Catalogue perusers
for planning
• Brand loyals
• Value for money
• Service and
acknowledgement
• Mainstream brands
• Stick to what they
know
• Experimental –
sampling and demos
153
Attitudinal and behavioural, not geodemo.
And blokes are up to 46% of grocery shoppers!

Shopper „types‟ – a number of levels
Attitudinal/behavioural vs geodemographic?
By Category
Within Channel
Cross channel „core type‟
154

Within Channel: Grocery Example
There is no one „right‟ way to segment shoppers
Behavioural
Behavioural
(courtesy Mars Advertising)
(courtesy IMI)
Lifestage/Demographic
(courtesy Torchmedia)
• Drifters
• Grazers
• Planners
• Pragmatists
• Bargain Hunter
• Planner
• Loyalist
• Savvy Saver
• Impulsive
• Experimental/experiential
• Bachelor Pad
• Sex and the City
• DINKs
• Soccer Mum
• Super Dad
• Shared Household
• Empty Nesters
• Golden Oldies
The jury is out on whether the cross channel ‟base‟ typology applies across categories, or whether
behaviour changes by category (the „mode‟ you‟re in) irrespective of your basic cross channel type.
155

Grocery shopper Who: Not just „MGB‟
Lifestage and household type/size key shopping determinants
SINK/
YOUNG
OLDER
DINK
FAMILY
FAMILY
EMPTY
NESTER
• More disposable
income = less price
conscious
• More into quality,
premium, gourmet
• Pets (small dogs) as
kids
• Entertaining
• Smaller living &
storage space =
smaller packs and
volume
• Experimental –
sampling and demos
• Baby, kids and
school
• Sports and nutrition
• What the kids like/will
eat
• More budget
conscious
(mortgage)
• Brand repertoires for
variety
• Feeding the masses
• Volume for the best
price
• More private label
• Larger packs and
bulk buys
• Catalogue perusers
for planning
• Brand loyals
• Value for money
• Service and
acknowledgement
• Mainstream brands
• Stick to what they
know
Lifestage typologies apply but differ per channel (eg P&C is more SINK/DINK).
And blokes are up to 46% of grocery shoppers!
156

Category Specific Shopper Examples
Beer & Wine
Dairy
Home Entertainment
• Enthusiasts & Cellar Manager
(range breadth, depth and
„new stuff‟ most important)
• Entertainers (occasionals –
known brands at good price)
• Quaffers (repertoire buyers
based on price)
• Loyalists (stick to 1-2
preferred products, may stock
up on them when on special)
• Bang For Buck
• Brand Repertoire
• Visual and innovation
stimulation
• Planned value hunters
• Experientials
• Buffs
• Love movies hate shopping
• Bargain bin fossickers
Often based on shopper‟s level of involvement/engagement in the category (direct correlations
to purchase frequency)
157
Decision making tempered by who for, and the occasion

Linking Consumer & Shopper
Consumer and shopper segmentations will more closely align in channels and
categories where the shopper is the consumer more of the time
VS
158
Shopper research can link consumer to shopper profiles using Needscope and other
techniques.

Combining retailer and manufacturer segmentations
(ECR example, April 2011)
159

Whys: Occasions = cross category marketing opportunities
Christmas
Gifting Seasonal Ethnic, religious and
commemorative
Valentines Day
Summer – holidays,
entertaining, at the
beach
Winter – eg „winter
warmers‟, ski
Events &
Sporting
Consumer
Chinese New Year Olympics Entertaining: summer BBQ,
Dinner Party, parties, having
mates over (watch footy finals,
other sporting events), quiet
night in
Cinco de Mayo
(Mexico)
Easter Autumn Anzac Day, Australia
Day
Mothers Day Spring St Patrick‟s Day
Fathers Day Seasonal conditions:
Hay fever, mosquitoes,
cold & flu
4 th of July (US
Independence Day)
Halloween
Bastille Day (France)
F1 Grand
Prix
Footy Finals
Meals: breakfast (at home, in
transit), lunch (at home,
lunchbox for school/work),
dinner tonight, snacks, food to
go (lunch on the run).
Kids: back to school, summer
holiday amusements &
distractions
Birthdays &
anniversaries
Cherry blossom
festival (Japan)
All Saints‟ Day (half of
Europe, it seems!)
160

Occasion based displays in offpremise liquor stores
161

International: SuperValu Holiday Joy
An occasion based platform that yielded a number of activations for the third
largest food retailer in the USA.
Concept:
“Holiday Joy Made Easy”
Joy for Family Joy for Self Joy for Others
Planning
Big
Events
Mid
holiday
meals
Mom time for self
Give back to
community
162

163

Trip types vary by channel:
Market to SHOPPERS, not consumers
Supermarket
Mass Merchant/
Discount
Department Store
Convenience
Liquor
Off Premise
Pharmacy
Stock Up Leisure / Browse Fuel Stock Up Script Fill
Destination
Destination
Destination
(Snack, Beverage,
Newspaper)
Destination
(Replace my regular
tipple)
Destination
(e.g. cosmetics, weight
loss)
Top Up
Gifting
Service
(ATM, Trailer Hire)
Gifting
Services
(Tests, Checks)
Entertaining Entertaining Entertaining
Entertaining
(at my or someone
else‟s place)
Distress
(in pain, fix my problem)
Dinner Tonight Quick Meal With / After Dinner
Main Trip Types by Retail Channel © ShopAbility 2011
164

Degree of planning vs impulse:
Less true „impulse‟ than you would think
Least
100%
90%
80%
70%
60%
50%
40%
30%
20%
Don't know
I didn't plan to browse/buy
this category
I decided to browse the
category in store
I decided to browse the
category before entering the
store
I knew the type of product I
wanted but not the variant
I knew the type of product I
wanted but not the brand
Most
10%
0%
Total
I knew exactly the
product/variant/pack size I
wanted
Depending on the channel ,category and trip type, there may be a lot or a little impulse.
On average in Australia we find that most categories in grocery are planned around 70%
165

Let‟s discuss some examples
Occasions
Missions &
Trip Types
Dayparts
Shopper
segments &
clustering
166 How is degree of planning/impulse involved in each?

Exercise #1: Shopper Behaviour Fundamentals
• For your product‟s category, map all
consumption occasions. Indicate which
you think the largest/most common
occasions are.
• Map the likely trip types/shopping
missions for your category. Indicate
which you the largest/most common
trip types are likely to be (ie the split).
• Hypothesise the different shopper
types for your product‟s category –
geodemo, but also attitudinal and
behavioural.
167 Exercise total time: 45 minutes

Exercise #2: Shopper Behaviour Fundamentals
(Optional Exercise – if time)
• Build an occasion based marketing
initiative based on the occasions
relevant for your product (may include
multiple manufacturers in your
product‟s chosen category and across
complimentary categories).
• Build a shopping mission/trip type
based initiative for your product – make
assumptions about what kind of
shopping trip shoppers of your product
are likely to be on in your chosen
channels.
168 Exercise total time: 45 minutes

6. Shopper Insights: what they are
and what to do with them
169

Module 6: Content Coverage
Shopper Insights and what to do with them
1. Why shopper insights sit at the heart of Shopper Marketing
2. What is an insight vs What is merely information?
3. Types of insights – the 5Ws and 5Hs
4. Stakeholder engagement – manufacturer and retailer
5. Applying the findings
6. New Concepts: research methodology types
7. Case studies: Outputs and Applications from previous studies
8. Exercise: Build a Shopper Research brief
9. Business model: Methodology/Insight matrix
170

Data vs Research: what‟s the difference?
• Shopper research is attitudinal as well as behavioural, where shopper data is
behavioural and/or the outputs of the behaviour. Shopper insights are most
powerful when attitudes and behaviours are married to behavioural outputs. Ie,
when you blend together
• It‟s even more powerful when you marry your shopper data and research with your
consumer research (particularly usage occasions). There‟s not a clear cut line
from when the consumer becomes the shopper. The Shopper Marketing survey
highlighted this, with 75% of respondents believing that shopper starts outside of
or before the store, not just in it.
• We look at shopper research as covering a mix of what we call the „5Ws and 5Hs‟:
Who, What, When, Where, Why, How, How Often, How Many, How Much, and
How Long.
171

Most powerful when data sources are combined
Shopper
Who, why and how:
• How they view the category
• How they behave instore
• How they use the category
• What influences them pre,
during and post purchase
• Degree of pre-planning
What they buy, when, and
with what
Sales and Home scan data eg
• Average weight of purchase
• Basket incidence
• Household penetration
• Spend
Data
Trade
Realistic sense check
• What retailers need
• Retailer objectives
• Category role
• Staff considerations
• Their shopper needs
• Operational logistics
• What will and won‟t fly
Different sources answer different things.
172

Another way to look at this is ...
Input
(Prestore)
Process
(Prestore, Instore)
Outcome
(Instore)
Post Store
• Attitudinal
• Needs
• Behaviour
• PDH – qual and
quant
• Data – scan,
homescan
• Attitudinal
(satisfaction)
• Usage (satisfaction)
• Path to purchase
• Claimed behaviour
• Shopper trackers
• Limited attitudinal
Bespoke research
Bespoke research
Trackers
Scan data
Sales data
Bespoke research
173

Types of shopper research
(selected, not exhaustive)
Diagnostic
„Start from scratch‟
understanding,
answering the
fundamental
questions when you
want to know how a
category, channel or
store works
Specific
To a specific brief, eg.
• Range optimisation, pack
assessments, portfolio gaps
• Space & layout concept evaluations
• Category & shopper segmentation
• Changing specific aspects of in store
execution
• Store trials research support
Pricing &
Promotion
• Choice models
• Conjoints
• Brand/ price/
product trade offs
• Elasticities
• Promotion
mechanics
assessments
174
© ShopAbility 2010

Claimed vs Actual behaviour:
Most holistic when combine both
Claimed:
Actual:
• Perceptions & attitudes
• How they make decisions
• Why they behaved that way
• Spend
• Frequency
• Trip type
• Who buying for
• Purchase occasion
• Intended vs actual purchase
Eg:
Accompanied Shops
Intercept & exit interviews
Online surveys
• Where they go (navigation)
• How many go where (traffic)
• How long they take (duration)
• What they do (interactions –
browse vs buy)
• Who they are (gender, age)
Eg:
Observations
Shopper shadowing
Video capture
Exploratory = soft measures, Evaluation = hard measures.
175
© ShopAbility 2010

Methodology Scope :
Tailored, not one-size-fits-all
„Why‟ and „how‟ insights often come from qual and
out of store.
Instore
Observations – whole of
shopper pathways, specific
zones
Intercepts
Exit interviews
Accompanied shops
Multi channel immersions
Movement tracking
Instore workshops
Trade research
Out of
store
Focus groups
Diaries
Online surveys
Ethnography
Semiotics (category codes)
Clinics (virtual shelf, pack)
176

Instore
What methodology goes where?
Evaluation (quant, measure)
Movement tracking
Observations
Exit interviews
Audio verbatims
Intercept interviews
Diaries
Online surveys
Out of store
Accompanied shops
Focus groups
Immersions
Vox Pops
Workshops
Clinics
Trade research
Explore (qual, „unpick‟)
Exploration (qual) of equal importance to Evaluation (quant).
177

Instore marketing research:
Two levels of measures, need both
Soft:
Hard:
• Awareness
• Consideration
• Appeal/impact
• Purchase intent
• Preference
• Sales
• Increased purchase level
(claimed and actual)
• Behaviours – conversion rates,
browse & dwell times
• Retail multiple – traffic, frequency,
AWOP/transaction size, spend
Short-mid term impact
Longer term impact
Exploratory = soft measures, Evaluation = hard measures.
178

Research methodologies and what they cover
Methodology Research Type 5Ws and 5Hs covered Scope
(includes, not limited to ...)
Qualitative
Claimed
Accompanied shops and
depth interviews
Focus groups
Instore observations
(category specific or
whole-of-trip shopper
shadowing)
Qualitative
Claimed
Quantitative
Actual
All 5Ws and 5Hs
except How Long – in
depth
All 5Ws and 5Hs
except How Long – in
depth
Who
What
When
How Long
Shopper types and segmentation
Likes, frustrations, triggers, barriers,
motivations
Usage
Per Accompanied Shops
Gender, approx age, basket type
Dwell time at fixture
Traffic to browse to buy conversions
Instore interviews
(intercept or exit)
Quantitative
Actual and claimed
Ws: who, what, why
(some), where (some)
Hs: how many, how
often, how much, hows
(some)
They buy the product, category, channel,
store
Degree of planning
Biggest influences
Trip types and usage occasions
Online Surveys
Shopper diaries
(paper or online)
179
Quantitative
Claimed
Qual or Quant
Claimed (perceptions)
Actual (self recorded
behaviours)
All 5Ws and 5Hs
except How Long
All 5Ws and 5Hs
Per Accompanied Shops, but with numbers
put around it
Concept testing – layouts, pricing models
Per Accompanied Shops

Need for channel and retailer specificity
•Behaviours, trips, and occasions differ
across channels and categories
•Findings will differ across retailers in the
same channel, even for the same
category
•Retailer specific research means can
blend manufacturer and retailer
objectives, hypotheses and priorities
•Means can result in tailored programs
specific to individual retailers.
Shopper behaviour and perceptions changes by channel and retailer, and individual retailer
objectives and priorities vary.
180

Insight types & Common Applications
Info/Insight type
Common Applications
Who
(shopper types)
Why
(missions, occasions, motivations)
When
(they shop, how this varies)
Where
(they go, look, select from )
How
(they shop – speed, ‘mode’, what impacts them and
what doesn’t, decision making)
What and How Many (basket items/AWOP, what they
also bought)
How much (spend levels, what drives it)
Purchase decision hierarchy
181
Marketing to specific target audiences (consumer and shopper segments and clusters,
per category and category segment)
Occasion based marketing – messaging, bundled offers, gifts with purchase etc
New products and packs to suit specific occasions
Role of specific category segments and product types
Role of price promotion and consumer promotion in sale conversion
Daypart marketing – time of day and day of week tailored ranging, offers, and specials
Seasonality opportunities
Where to put displays (and where not to – ‘dead zones’)
Map path to purchase touchpoints – what’s important and what’s not
Roles of each part of the store in influencing purchase (path to purchase) – what should
go where and how it should be messaged
Purchase Decision Hierarchy – impacts on layouts, price, promotion
Category definition and segmentation – what’s in the category, what the obvious
product groups are
Product portfolio gaps based on category segmentation
Increases required in number of items purchased
Bundles – most commonly combined items
Spend increase opportunities cross-retailer and cross-channel segment
Trade up opportunities based on pack size/format
Ranging
Layout
Pack strategy
Price and promotion strategy (role of price)

Shopper Research Applications (1)
The following list is not exhaustive, but indicative …
Range & Portfolio
•Category definition and segmentation – portfolio gaps and opportunities
•Pack changes
•Pack formats and pack strategy
•Brand/pack/product/price by occasion and channel
Space & Layout
•Purchase decision hierarchy –how shoppers make purchase decisions, in what
order
•What should go where and next to what – location, adjacencies, flow, planograms
Visibility & Display
•Movement tracking –where they go, what they see and don‟t see (where to put
stuff)
•Greatest points of influence
•Points of engagement priorities
•Missions, occasions and needs – occasion based messaging (types of POS and
what goes on them)
•Execution diagrams for retailers and sales teams of what should go where
•Types of POS that work best
RSVP3 – instore sales drivers.
182

Shopper Research Applications (2)
Price
• Price sensitivities and elasticities
Promotion
• Role, type and mechanics relevance
Store staff persuasion
• Role and opportunities for store personnel to
influence purchase
PAGE 183

Insight or merely Information?
• What‟s the difference?
184

Exercise: Determining Insight from Information
• Use the information provided in the
following slide
• Determine some potential causes and
reasons ... „what‟s going on here is ...‟
• Determine what you think it means „so
what this means is ...‟
• Determine some potential actions ...
„so what we need to do about it is ...‟
185 Exercise total time: 20 minutes

Complete the above.
Exercise: Determining Insight from Information
Exercise
Issue
Information
Insight
Implication
Implementation
Bottleshop sales are static.
•70% of bottleshop purchases are in single item baskets.
•Shoppers on a mission – the one thing they come in for, they
get and nothing else.
So what‟s really going on is ………………………………
This means that ………………………………………….
So what we need to do is ………………………………

Exercise: One potential answer
5Is Exercise: one potential answer
Issue
Information
Insight
Implication
Implementation
Bottleshop sales are static.
•70% of bottleshop purchases are in single item baskets.
•Shoppers on a mission – the one thing they come in for, they
get and nothing else.
Shoppers are not being upsold or offered impulse items
Store staff are not being taught to upsell or incremental sell
Develop and deliver a selling skills training program for store
staff.

Shopper Research case studies

Case Study:
Home Entertainment Shopper Behaviour
Situation
• DVD category growth has slowed
• Category execution in-store immature and disorganised
• Little Home Entertainment shopper behaviour information
Task
• Understand who DVD shoppers are (shopper segmentation)
and how they shop the category – preferred segmentation,
layout, pricing, ranging ... Cross channel and cross retailer
Activity
• Retailer interviews for upfront engagement
• Accompanied shops, in-store observations and intercept
interviews, online survey and TURF analysis
• Retailer workshops (currently in train)
• ... across 6 retailers in 3 channels
5 stage methodology, topped and tailed with retailer workshops.

Case Study:
Home Entertainment Shopper Behaviour
Results to date
• 5 shopper segments identified and valued
• Execution recommendations against each
shopper segment made
• Retailer buy in to proposed new layouts in
grocery
• Retailer buy in to proposed new pricing
scales achieved
• Trial of core range and layout for „genre‟
section plus staffing in a mass merchant
• Subsequent rollout of core range in mass
merchant
• Mass merchant awards client „Home
Entertainment Supplier of Year‟ for core
range trials and rollout program

Case Study:
Fresh Dairy Shopper Research
Situation
• Existing shopper information outdated, needed to be updated for
acceptance by retailers
• Category growth drivers had been identified but needed to be validated
Task
• Understand the 5Ws and 5Hs of VMS shoppers
• Provide retailers with a case for change
Activity
• Retailer interviews for upfront engagement
• Accompanied shops, in-store observations and intercept interviews, online
survey with TURF analysis and layout preferences
Results to date
• New layouts being trialled in one retailer
• Incorporated into strategic category plans (3-5 years) – including
identification of a number of new category drivers
5 stage methodology, topped and tailed with retailer workshops.

Case Study:
Household Cleaning Portfolio Gaps
Situation
• Retailers threatening to delist low performing skus
• Company had no category participation strategy – didn‟t know why they
were there
Task
• Determine role of existing company products to category
• Identify new product opportunities for growth
Activity
• Consumer ethnography – home immersions
• Shopper U&A – accompanied shops
• Consumer focus groups – consumer segmentation
• Company category definition and segmentation exercise – using staff
• Company consumer experience cleaning task exercise – using staff
• Applications /NPD Workshop - for research results and staff exercises
Combined shopper and consumer methodology.
192

Case Study:
Household Cleaning - Results
Results
• Identified two new cleaning segments:
• „outdoor‟ and „specific purpose‟
• Best new cleaning product launch of 2008 – BBQ Wipes („What‟s
New‟):
• most successful innovation for Selleys in a decade
• increased ranging in key channels
• Range of specific purpose cleaning products launched
Selleys‟ reason for being in the cleaning category now clear.
193

Case Study:
POS execution in Cafes
Situation
• Client Company spending $millions on POS in cafes, but sales
declining
• Average POS spend per cafe $10K, mostly on external branding
visibility pieces
Task
• Identify and prioritise points of engagement in cafes
• Determine role of each point of engagement – brand equity vs sales
driving vs customer ranging leverage tool
Activity
• Determine cafe types (inner city, coastal/tourist, suburban)
• Depth interviews in situ – café user U&A, N=24
• Observations, N = 250
• Exit interviews, N = 60
Prioritising the points of engagement.
194

Case Study:
POS in Cafes - Results
Results
• Saved company $3m in POS over 12 months
• Sales increased more than 25% over 2 years (in
conjunction with distribution increases)
• Clearly defined , consistent „picture of success‟
for sales teams to use
• Subsequent new products launched with
Mandatory POS – further cost savings
Applied to all beverages and subsequent new product launches.
195

Case study:
Impulse alcohol RTD – Trial Support Research
Situation
•Retailer and supplier keen to invest in impulse fridges for RTDs at front of store - replicating
„chocolate bar at the checkout‟ thinking in bottleshops
•Trial of impulse fridges placed at counters, ranging Top 10 selling RTDs (category level)
undertaken in 10 test and 10 „control‟ grocery attached liquor stores
Task
•Understand shopper awareness of and interaction with trial impulse beverage fridges
Activity
•Observations across 10 stores, N=1500
•Exit interviews across 10 stores, N= 500
•Interviews with buyers of trial beverage fridge, N=5 (low conversion rate)
Result
•Low levels of shopper awareness and interaction/purchase conversion with impulse units
•Motivators of impulse purchase in bottleshops understood, including differences by channel
segment – and why this trial therefore didn‟t work
•Improvements/changes required per channel segment and to range determined for future
trials.
Saved retailer and supplier $5m in capex investment. Trial failed, but we know why!
196
Trial units similar to this placed at counters. Units category branded, containing „alcopops‟.

Example Outputs

Least
Category shopper typology:
Often a combination of attitudinal and behavioural
Price Sensitivity
Highest
Bargain
Seekers
Informed
Channelswitchers
Category Emotional Involvement
In and Outs
Most
Recreational
Shoppers
Category
Connoisseurs
Lowest
198
Segmentation is only meaningful if how you need to execute per segment changes.

Linking shopper profiles to retail metrics
Indicator
Frequency
Market Average
30% 2-3 months
28% monthly
23% 2-3 weeks
19% weekly or
more
Category
Connoisseur
Very High
(weekly +)
Informed
Channel
Switcher
Med
(1-3 weeks)
In and Outs
Medium – Low
(2-3 weeks)
Bargain Seekers
Low
(2-3 weeks or less)
Recreational
Shoppers
Low
(2-3 wks or less)
Trips 3.4 5.5 3.4 3.0 2.7 3.2
Spend $72.10 99.10 83.10 58.70 55.60 78.80
AWOP 5.7 9.0 6.1 4.6 5.4 5.1
Where instore
Browses all points
Shelves &
secondary locations
Looked on shelves
quickly, asked
service staff
Specials displays
Demonstrations,
sampling, at shelf,
secondary
Degree of
Planning
32% knew brand
30% impulse
22% planned
browse
16% knew
subcategory
Over-index planned
browse/buy
Planned
buy/browse
Plan down to brand
and product name
Impulse
Browse, impulse
Who for (overindex
skews)
42% me
17% me & partner
12% kids
9% whole family
14% partner or
colleague
Family Others Me Me Us
• Over-Index
• Under-Index
199

Shopper segment quantification
Segment X Males Females
Segment 4 Segment 3
Segment 2 Segment 1
• Fashion not really important
to them
• Feel a bit „out of touch‟
• Don‟t pay much attention to
brand
8%
17%
8%
5%
Segmen
t X, 41%
23%
42%
10%
38%
15%
• Don‟t really like shopping
21%
18%
17%
38%
Segment Size
Share of Spend
Each type profiled and quantified – by retailer
200

Shopper profiling: who‟s in the store
Instore obs and interviews. Store, dept, category levels
Gender Age Lifestage
Male,
38%
50+ yo,
23%
16-34
yo, 38%
Kids
38%
Female,
62%
35-49
yo,33%
No kids,
61%
We generally find in grocery that households without kids number those with … further to the „MGB myth‟
201

Occasions vs trip types (missions)
When Eaten
Trip type
For dessert(after dinner)
With breakfast
Mid morning
33%
31%
30%
4%
3% 3% 2%
Routine stock-up
Mid afternoon
30%
Top up
Evening snack
With lunch
19%
28%
14%
Dinner tonight
Late afternoon
17%
Destination X
As breakfast
16%
After lunch
As lunch
Mixed into dessert
16%
12%
11%
74%
Destination other
Don't know
All other occasions
12%
0% 10% 20% 30% 40%
202

Retailer Preference & channel choice:
Example Accomp shops, online, instore
Purchased most from*
Grocery
WW
26
46%
Mass
Coles
26
IGA
11
Specialist
Aldi
8
22%
Convenience
Harris Farm
5
10%
Pharmacy
Thomas Dux
3
4%
1%
Deli
3
17%
Other
Other Specialty
3
Channel
0 10 20 30
203

Retailer perceptions:
Store, category, dept level. Online survey & instore. Specific per retailer.
Easy to shop
Good service
Helpful staff
Enjoyable to shop
Has the latest new releases
Has a good loyalty program
Has new release movies
available earlier
Good returns policy
Has a lot of new release movies
Good value for money
Has hard to find DVD titles
Has cheap sale tables/bins
Wide range of DVD’s
Always has DVD’s I want in
Cheapest price
stock
Good promotions
204

Reasons for retailer choice
Q. What influenced your choice of XXX as YYY retailer today? (%)
100 Price
80
60
71
47 46 46
Proximity
Preferred
Retailer
Range
40
20
0
26 25
18
Advertising
New Products
Catalogue
205

Quantified behaviours (eg Frequency):
Online, some instore
QS6 - How often go XXX shopping by Store?
Retailer Big WX
2
5
14
26
30
23
More than three times a
week
Three times a week
Mass Average
2
7
17
25
25
22
Twice a week
Once a week
Specialty Average
4
8
15
20
26
25
Once every 2-3 weeks
Once a month
Total Market
2
5
11
24
28
29
Once every 2-3 months
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Nearly half are buying more than once every 2-3 weeks.
206

Observations: Shopper pathways
And directional flows, example below
Chilled Categories
Milk
Seafood
Nett Headcount
Grocery, 73%
40%
5%
Sea
Food
Aisles
Aisles
Aisles
Aisles
Aisles
40%
Fresh fruit
& veg,
Chilled foods
Nett Headcount
Fresh , 27%
Frozens
Aisles
Aisles
Aisles
Aisles
7%
Aisles
Deli
6%
2%
Check
out
Check
out
Check
out
Check
out
Service
Desk
Bakery
207

Observations: Traffic hotspots
COOL ROOM
CHILLED
WINE
NARTD
BOTTLE BEERS
BEER SLABS
WINE
WINE
NARTD
• Other formats:
• Heat maps
• Spaghetti maps
• Uses:
RTDS
• Display hot spots
• Instore media placement
BEER SLABS
WINE
SPECIALS
COUNTER
• Dead area identification
(where NOT to put
things)
ENTRY
RTD
SLABS
EXIT
208

Traffic, browse, buy metrics:
Is your category opportunity in more traffic, or more conversion?
(@ 66 hours in total)
166 per hour or
2.7 shoppers per minute
TOTAL CATEGORY TRAFFIC
10,997
33 out of 166 per hour browse
BROWSE
2235
20.3%

In-store influences on Purchase
Instore interviews
Q.To what extent have the following influenced your purchase just now? (%)
100
Price
80
Specials Displays
64
Range
60
49
Organised Layout
40
39 38 37
Product in Stock
20
25
22
18
New Products
Promotions
0
Staff
210

Promotion Mechanics
• Can be tested in online surveys and instore
• Online a number of mechanics can be compared against each other/ranked for a
specific category, eg for each mechanic:
Visit store to investigate offer
Likely impact on last purchase
Definitely would 5
Probably would 4
Might/Might not 3
Probably not 2
Definitely not 1
Would not have any impact on what I bought 1
I would probably have bought more XXX than I did 2
I would probably have bought one of the promoted
XXXs instead of a XXX I purchased
3
Can‟t say 4
211

212
Insight to application examples

International: The „Old Spice Guy‟
• Insight: 75% of men‟s body wash
purchase by women buying „lady scents‟
for guys. Need to bring „virility‟ to men‟s
body wash
• Activation: „I‟m the man your man should
smell like‟, „Smell like a man, man‟ viral
marketing campaign (YouTube, TV, social
media)
• Results: campaign increased sales by
27% over 6 months since launching (year
on year) and sales up 55% over 3 months.
Old Spice now #1 body wash brand for
men. Rejuvenated the category.
213

Some international activations based on insights
• Insight: Shopper research identified that
shoppers determine laundry detergent
purchase by smelling the product
• Activation: Gain „Love at First Sniff‟
activation
Situation: In the Philippines,
deodorant HHPen 33%, much less
than rest of world. Deodorant was
placed next to fragrance in
Supermarket aisle
Insight: Consumer barrier (belief) that
„showers keep me fresh all day, I don‟t
need a deodorant‟
Activation: Shopper solution – „keep
fresh all day‟ bay next to shower gels
Result: HH Pen increased 6%,
growing still
214

International: Diageo Simply Cocktails
• Insight: Women are the primary shoppers for
spirits and liquors. Big events (parties, Xmas)
are the minority of spirits consumption
occasions, „everyday‟ minor occasions are a
bigger opportunity.
• Opportunity: make „infrequent purchasers‟ of
spirits more frequent through promoting
everyday spirits and cocktail occasions.
• Activation: Modular „Simply Cocktails‟ unit.
Three adjacent displays of different types of
spirits, soft drinks and other complementary
products. Each comprises a particular “level of
difficulty” for shoppers who want to make
cocktails. “Ready/Pour” is one, “Simple Mix” is
the next step up, and “Easy Shake” is the
highest level.
• Results: average 11% return across the Diageo
brands involved
215

Exercise: Build a Shopper Insights Brief
• Use the template provided
• The shopper research brief needs to be for
your team‟s selected product / category in the
selected channels
• Is it a specific or diagnostic brief?
• What are the key things you need to
understand about your category‟s shoppers in
order to market to them instore and out of
store?
• Build an engagement plan and
strategy/actions workshopping plan for the
outcomes – both internally and with
manufacturer/retailer stakeholders
216 Exercise total time: 45 minutes

7. Measurement and ROI
It‟s a bit like that famous advertising quote:
“we know half is working, just not which half …”
217

Module 7: Content Coverage
Measurement and ROI
1. What to measure in SM – against initiative objectives
2. Short term vs Long term cumulative measurement and
tracking
3. Types of measures
4. Exercise: Implications for what and how I need to start
measuring in my company
218

Who is measuring what? SM Survey results
Q. Which, if any, of your company’s Shopper Marketing activities, are measured?
N =134
40%
35%
30%
25%
20%
15%
10%
5%
0%
Which types of activities being employed is reflected in the effectiveness rankings for activity
types. The less utilised activities rate lower in effectiveness as fewer are using them and thus
fewer understand their impact.
219

Activity effectiveness ratings: SM Survey (subjective)
Q. How would you rate the effectiveness of the following Shopper Marketing activities?
80%
70%
60%
50%
40%
30%
20%
10%
0%
Displays POP/POS Catalogue Experiential Loyalty
programs
In Store Media
Out of store
media
Social Media
Digital/online
However, the fact the rankings of In-store Media and Experiential reflect the „shopper begins before store‟
opinions see earlier. Social and Digital areas of opportunity – not tried much yet.
220

Activity measures applied: SM Survey
Q. Which, if any, of the following measures apply to your company?
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Most looking at outcomes (Sales) and ROI (spend vs result) with other measures not really being explored.
Similar story in the USA.
221

Measure types: Retailer business measures
Business Level
• Gross Margin
• Rolled up margin
• Fifth margin (includes
store margin and terms,
nett of waste)
• GMROI – occasionally
(internal measure)
• ROCE
• ROI is internal
• Down to 3 decimal points!
Store Level
• Achieve Sales targets
(sales per metre, GP per
metre)
• Achieve GP%, shrinkage
targets
• Achieve Wage Spend
targets
• Out of stocks
• Customer Service
• OH&S
Manufacturers invest in retailers, not the other way around.
222

Measurement types: Promotions
Sales
Sales volume & value uplifts/decline
Baseline vs on-promotion sales
Category growth value / volume, residual effects
Market
Market share changes
Cannibalisation rates
Product/brand switch
Behaviour
AWOP
Day and time of purchase shifts
Purchase and re-purchase frequency

Measurement types: Tangible vs Intangible
Tangible Measures
Intangible Measures
1. Incremental sales generated
2. Payback
3. Consumer market share
4. Customer instore support /
implementation
5. Shifts in consumption drivers
6. Retailer value analysis
7. Relative cost effectiveness
1. Brand attributes
2. Consumer / shopper attitudes
3. Trade Reaction and relationships
gains
4. Retail Operations feedback
5. News / PR / impact
6. Internal departmental feedback
7. Supplier feedback
8. Operation Distribution impact

Measure Types: POP drivers (1)
Range:
• Distribution/existence of specific
products,
• % of core range on shelf,
• New product distribution
Space:
• Shelf share of total category
• Shelf share of sub categories
• # facings
• Set to planogram
Displays:
• How many
• Of what type
• In what location
• What‟s on them
Visibility:
• POS & signage placement
• how many
• Of what type
• Where
Based on what the shopper sees. NOT the retailer scorecard.

Measure Types: POP drivers (2)
Price:
• Price points of specific products (ours,
competitors)
Promotion:
• What is on promotion
• How many promotions are there
• What the mechanic is
• How it is supported
Staff:
• Training carried out,
• Persuasion technique being activated,
• Apparel being worn
Asset type:
• For depreciable permanent assets eg
fixtures,
• What type is it
• How many are there

So, there are a lot of different
types of things I could measure.
So what?
227

Determine what your promotion/activity is meant to do upfront
Sounds obvious, but „GIGO‟ (garbage in, garbage out) applies. Get clear on your objectives
upfront. You might want to increase sales by getting trial or increasing awareness, but what are
the levers for achieving this?
Who is your promotion
designed to attract?
What shopper behaviours do
you want your activity to
impact?
What are your retail
objectives?
• Loyal brand buyers
(AWOP/frequency based)
• Occasional buyers
(frequency based)
• New consumers (trial
based)
• Frequency
• AWOP
• Increase spend
• Trial
• Brand switch
• Build loyalty
• Penetration
• Awareness
• Drive traffic
• Increase frequency
• Increase spend
• Improve basket
penetration.
228

Different stages of measurement
Output Impact & Influence Outcome
What we did
What shoppers noticed
How they behaved
Results: sales and
retail/shopper
behavioural objectives
Currently 229 more focus on outcome, and sometimes on output but impact/influence still little understood.

Outputs: what we did
• Execution provides the context for the
scope and effort put into the promotion.
Output measures include things like:
• Number of stores executing the promotion
• Number of displays achieved
• Support mechanism employed eg shelf
ticketing, advertising, catalogue, mobile/text
marketing, social media, POS, news/PR.
Third party merchandising/field audit teams can
gather the instore data.
230

Impact & Influence
What actually happened? A number of angles to consider here.
Shopper Behaviour
Consumer/Brand
Market
Store & Trade
• Frequency/IPI, AWOP,
traffic, spend, basket
penetration, basket value
• Time of day and day of
week purchase shifts
• Product/brand switch
• What did they actually
notice/which execution
elements influenced
them?
• Brand health measures
up/down (yes you might
have sold more, but
particularly if at deep
discount what impact did
it have on the brand?)
• Price point perceptions
for the brand (constant
promotion at discount
price point resets price
benchmarks in
shoppers‟ heads,
leading to deflation)
• Changes in
consumption (short and
medium term)
• Manufacturer/brand share
shifts within category
• Cannibalisation of other
products, brands,
category segments (this is
a function of high levels of
substitutability/low brand
loyalty)
• Out of stocks
• Level of instore support
received (ie distribution,
displays)
• Retailer impact
• Supplier impact
• Operation Distribution.
231

Outcomes
What difference did the promotion make to our numbers?
Both sales and profitability measures apply here.
• Sales measures:
• Sales vol and val uplift/decline – brand,
category
• Baseline vs sales on promo –
incremental sales generated
• Category growth volume/value
• Residual sales level post promotion (is it
higher or lower than pre-promotion?
Lower would indicate you‟ve pulled sales
forward)
• Profitability:
• Product/brand/category profitability
during promotion
• ROI/payback based on inputs
(execution): to the brand/manufacturer,
to the retailer
• Cost effectiveness compared to other
promotions and activity types.
Having selected your measures from the above, when compiling promotion analysis you would then provide recommendations on
whether the activity is worth running again, and if so what elements would need to be changed for an improved result.
232

Missing Metrics on P2P: Booz 2009
233

Building Better Measurement: Booz 2009
234

Exercise: Measurement and ROI
• Looking at your proposed product
launch campaigns, what would you
measure for each, based on your
objectives?
• THEN, individually: note implications
for what and how I need to start
measuring in my company
235 Exercise total time: 45 minutes

8. Integrating Shopper Marketing
See also case studies:
Barilla, Campbell‟s Soup, Diageo
236

Module 8: Content Coverage
Integrating Shopper Marketing
1. Building shopper marketing intro strategic planning processes
2. Shopper Marketing implications for resourcing – Headcounts, Budgets and
Organizational structure
3. Manufacturer and Retailer collaboration on shopper marketing
4. Exercise: What needs to change in my business from now
237

Setting up for success
Shopper Marketing is not bolt-on tactics, it needs to be integrated as a way of working.
Support and
Commitment
Resources Processes Relationships
•Executive support
•Increased
resource pledge
•Right structure
•Enough
headcount
•Separate budget
(activations and
insights)
•Right structure
•Enough
headcount
•Separate budget
(activations and
insights)
•Integrated with
consumer
marketing
•Retailer and
manufacturer
collaboration
238 More detail on these in the POPAI Shopper Marketing Council Roadmaps.

Key Shopper Marketing Best Practices: Booz 2010
239

SM as Strategic Capability: Booz 2009
240

A 7-step roadmap for effective shopper marketing
1. Understand your corporate and marketing strategies
2. Determine who to play with
3. Understand retailers‟ business situation
4. Understand retailers‟ objectives and strategies
5. Understand your shoppers
6. Develop shopper marketing strategy as part of account plans
7. Execution and measurement.
241
Source: Desmedt, Luc ‘ Seven steps toward effective shopper marketing’; in ‘Shopper Marketing: How to increase purchase decisions at the point of sale’, Markus
Stahlberg Ed, Ville Maila, 2010 Pgs 21-27

Investment matrix: advertising and deals
242

Investment matrix: digital platforms
243

And a final word ...
Learnings to Date: Hints and Tips
As a way of understanding the experience of those on the Shopper Marketing journey, we asked
interviewees in the Australian shopper marketing survey what advice, dos and don‟ts they would give to
someone starting out in the discipline ... if they‟d have had their time over again, what would they have done
differently? Some of the common responses included:
Dos
Invest in shopper insights and understanding upfront to
engage customers and direct activities. Mix your data
sources
Educate the internal and retailer businesses on different
measures
Focus outward (not internally), and on the big stuff – 1-2
major initiatives to get the business or retailer engaged.
Understand both retailer and manufacturer strategies and
KPIs
Use all internal inputs ... everyone is a shopper and good
ideas can often come from areas like Operations. Look at
other categories and markets for ideas
Develop a set of standards based on clear objectives that
can be used for most initiatives
Get out to stores and see for yourself what shoppers are
actually doing (don‟t just sit in the office hypothesizing).
Don‟ts
Overanalyse and get analysis paralysis ... use common
sense
Just look at ROI vs. spend. Use a variety of measures
Underestimate the amount of time it will take to get an
initiative up and running. However much time you think it
will take, double it
Limit ideas ... no idea is a bad idea
244

Exercise: Integrating Shopper Marketing
Individual exercise:
• Plot where your company sits in the
shopper marketing journey using the tool
provided.
• Identify what your company needs to do
now and next in order to maintain
momentum ... What needs to change in
my business from now?
245 Exercise total time: 10 minutes

247
APPENDICES

Glossary of Common Terms: A-D
Term
Abandonment
AWOP
Basket Data (Basket View)
Basket Incidence (Penetration)
Basket Size
Basket Value (Transaction Value)
Deferral
Definition
When a shopper doesn‟t make a planned product purchase due to it being out of stock , unable to be found or
inability to „read‟ the shelf layout. Abandonment can occur at product, category, aisle or store level.
Average Weight of Purchase. Refers to number of items bought in the category, or weight in kilograms or litres.
Data indicating all items purchased in a given shopping transaction – all items in the shopper basket. Shows
what was bought with what.
What % of shopper baskets your category or product goes into.
How many items in the shopping basket at checkout
Total $ value of all items in the basket
When a shopper delays a purchase to a later date. Often due to out of stocks or to waiting for a promotion price
or to
DIFOT Delivery In Full and On Time. Key retailer service level measure. DIFOT measures are usually minimum 90%
Dwell time
How long a shopper spends at shelf/in aisle/in the store. Long dwell times can be a sign of either category
engagement, or confusion.
248

Glossary of Common Terms: F-N
Term
Frequency
Definition
The number of times your category is shopped over a defined period of time ie frequency may be 2.5 times per week
GM Gross Margin (%)
GSR
Homescan (Shopperscan)
Household Penetration (HHPen)
Hurdle Rates
Incremental
Inter Purchase Interval (IPI)
Mission (Trip Type)
NSR
Gross Sales Revenue
Shopper at-home pantry data collected from a panel of shoppers (commonly by Nielsen or Aztec) whereby shoppers
scan items when they get them home from whichever channel of purchase. Typically includes HH Penetration,
AWOP, Frequency/IPI, Spend, Incidence data.
What % of households your category, category segment or product is in (based on Homescan panel data)
Sales per week of a given product / sku in a given store. Retailers often have a minimum hurdle rate that a product
has to achieved to stay stocked. Also referred to as AWS (average weekly sales) or UPSPW (units per store per
week).
Additional purchase, often unplanned and sometimes the result of store staff persuasive sell
The time between shopping trips to buy a category or product (inverse of frequency). Ie quarterly.
The type of shopping trip the shopper is on. Trip types change by channel and include Stock Up, Top Up, Dinner
Tonight, Entertaining, Gifting, Destination, Services.
Net Sales Revenue (sales revenue less operating costs).

Glossary of Common Terms: O-T
Term
Occasion
One in, One out
Out of stocks (OOS)
Pantry Stocking
POP/POS
Scan Data
SKU
SRP/SFP
Substitution
Switch
Traffic (Footfall)
Definition
The reason why a shopper is in the store – what they are shopping for . Occasion types include Gifting (eg Xmas,
Mother‟s Day), Consumption (eg breakfast, lunch, dinner), Ethnic/Religious/Commemorative (eg Anzac Day),
Seasonal (eg Summer, cold & flu), and Events/Sporting (eg footy finals).
Because shelf space is limited and finite, when a new product is ranged an existing product needs to come out of the
shelf layout.
When a product is not physically available on shelf or in store, despite being ticketed at shelf.
Also referred to as „pulling sales forward‟. When a promotion of an item, particularly of bulk packs, results in a
shopper‟s at-home stockpile which takes a while to get through thereby reducing re-purchase frequency.
Point of Purchase, Point of Sale. POP generally means store, POS generally means merchandising materials such
as posters, header cards, shelf ticketing etc.
Actual sales data recorded as it goes across the checkout, usually by Nielsen, Aztec, GFK. Includes what, when,
how much (spend). Recorded at an individual item/category level.
Stock Keeping Unit. Refers to an individual size, format and colour/flavour of something eg Sprite 600ml PET is one
SKU, Sprite 1L PET is another SKU.
Shelf ready packaging or Shelf friendly packaging . Packaging that includes branded trays that the product sits on for
easy offloading from pallets onto the shelf.
When a shopper changes their planned product purchase to another product, normally due to out of stocks or a
promotion.
When a shopper changes from one planned brand/product to another, often due to a promotion, persuasive point of
sale or display materials, or store sales staff recommendation
How many shoppers enter the store/aisle/category over a defined period of time.

References
PRIMARY REFERENCES
• Booz & Company/GMA 2009: “Shopper Marketing
3.0 - Unleashing the Next Wave of Value”
• Booz & Company/GMA 2010: “Shopper Marketing
4.0 - Building Scalable Playbooks That Drive
Results”
• ShopAbility/POPAI Australia & NZ 2010: “Shopper
Marketing: The Journey Begins”
• “Shopper Marketing Best Practices: A Collaborative
Model for Retailers and Manufacturers”, Retail
Commission for Shopper Marketing, April 16, 2010
FURTHER READING:
• “Delivering the Promise of Shopper Marketing:
Mastering Execution for Competitive Advantage”
GMA/Deloitte, 2008
• “Shopper Marketing: Capturing a Shopper‟s Heart,
Mind and Wallet”, GMA/Deloitte, 2007
• “Interscope Survey finds Shopper Marketing slowly
catching on” May 03, 2010. Available via the
Instore Marketing Institute (membership required)
• “Ramping up Shopper Marketing Capability”.
(Audio Included) June 04, 2010. Available via the
Instore Marketing Institute (membership required).
• “Times & Trends: The Next Generation of Shopper
Marketing”, Symphony IRI, July 18 2010. Available
via the Instore Marketing Institute (membership
required)
• “Shopper Marketing: how to increase purchase
decisions at the point of sale”; Markus Stahlberg,
Ville Maila, 2010
251
Plus a number of books on shopper marketing, best practice retailing and
shopper/consumer psychology available on Amazon.com

With interest in the usage of digital and electronic instore POP
Using
Considering
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Not much is being used - top 6 forms between 10% and 30%.
Interest lies in the interactive stuff rather than funky projections and holograms.
252
N - 134

New and emerging instore marketing techniques (SM Survey)
Q. Thinking about new/emerging in-store marketing techniques which of the following
are you aware of and/or considering using?
80%
70%
60%
50%
40%
30%
20%
10%
0%
Aware
Considering
For digital and electronic POP activations, the consideration rate is above the current rate of use, which is encouraging.
Interest lies more in the interactive applications than in projections and holograms, although the latter are certainly
considered to have „wow‟ factor and interruption capability.
253
N = 134

New and emerging SM techniques - digital
Q. Thinking about digital and electronic in-store Point-of-Purchase (POP) material/s,
which of the following are you using or considering?
Using
Considering
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Screens/digital
signage
In-store
networks/TV
Interactive
kiosks
Mobile
marketing
Interactive
signage
Interactive
window
displays
Video walls Holograms Other None of the
above
N = 134
254