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PROCTER & GAMBLE BUYS INTO SHOPPER MARKETING
While we have been a leading force in Shopper Marketing for years – helping transform shoppers into buyers where it counts, in-store – it is a space traditional marketing agencies have been slow off the mark to recognize for its power to sell.
A recent article that appeared in Advertising Age this September, written by Marc Prichard, P&G’s global brand building officer, captures what we’ve been saying for a long time: “if it doesn’t work at the store, it’s no longer a good marketing idea for Procter and Gamble Co.”
I felt this statement was especially powerful, as P&G has been a leading visionary and architect of marketing as we know it today. When it comes to selling brands, they wrote the book. It is great to see this recognition by a firm like P&G as it adds a lot of credibility to what we have so passionately believed in for so long.
Research from Brandweek, the industry’s leading publication on brands, marketing and promotions, dramatically proves their point. It indicates that at least 70% of brand choices are made in the store, 68% of purchase decisions are not planned in advance, and incredibly, only 5% of shoppers are loyal to one brand of a product group.
For brands and products, the wisdom of buying into Shopper Marketing is supported by another recent study* which found in–store marketing ranked highest in perceived return on investment by respondents, followed by trade promotion /display, TV advertising and interactive / web advertising. In fact, surveys show that brands have been increasingly investing in Shopper Marketing – it has doubled since 2004 and is on track for an annual growth rate of 21% by 2010.
Levis – Walmart Denim Destination (Left), Department Signage (Top Right), Shelf Strips (Bottom Right).
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A CONVERGENCE OF NEW THINKING AND GOOD OLD–FASHIONED EXPERIENCE
With the growing understanding of the importance of Shopper Marketing, many traditional creative agencies are attempting to come up with and implement in–store marketing programs. Such programs are all about developing sales promotions at the retail level, linking the brand from on–line to in–store, including such offerings as bundled deals, expert advice, greater product information, demonstrations, product sampling, and special discounts.
To gain traction quickly, many have purchased, partnered with or formed internal in–store marketing companies; however they often lack the executional, logistical and tactical experience required to make such programs cost–effective and practical. The reality is that they can’t simply or quickly bridge the learning curve gap when it comes to the physical design and implementation of in–store solutions.
More and more CPG firms realize this and are instead entering into strategic partnerships with in–store agencies. They work together from ideation to implementation.
This clearly makes sense, because with the ever–growing need to learn new mediums and practices in the areas of interactive and social networking, there is little chance that a traditional creative agency is up to the task. This is especially true when it comes to the physical design and implementation of many in–store solutions, as they require engineering, design, material knowledge and production expertise that they simply don’t have yet.
In my opinion the knowledge of the production process will in the end drive the in–store strategy, as time, materials and money are critically important to delivering the brand message. As a specialist that has been in this space since our inception, we can arrive at the in–store solution smarter, better and faster.
Want proof? Just check out our recent case study for Levis Strauss, where we achieved a dramatic increase in sales of over 32% with a shop–in–shop concept within Walmart supercenters.
WHAT WORKS AND DOESN'T WORK IN–STORE
Reinforcing what we already know, a recent National Research Network report indicates that:
• End–aisle displays are the most engaging according to 70 percent of those polled, followed by merchandising displays (62 percent), and department signage (58 percent). Ceiling banners and overhead mobiles have the least impact.
• Shelf strips (55 percent) and shelf blades (50 percent) have become more important, especially among the Gen X and Gen Y crowds, who feel the more information the better. Overall, women and Gen Y consumers were most influenced by in–store marketing efforts.
• While price is always a driving factor, so is messaging about product quality.
• Nearly half (46 percent) of those polled would like to see more in–store product comparisons, 43 percent would like more details, and 42 percent would like more product quality information.
The truth is, only a display producer and qualified expert in this space can effectively deliver on the changing needs of the Consumer Packaged Goods firm than other companies that want to motivate consumers in–store to drive sales. Great companies like P&G get it, as does The Home Depot Canada’s Gaye Mandel, Director of Advertising, who states: “No other channel or touchpoint can immerse a consumer as fully and uniquely as the physical store environment.”
While P&G is not currently one of our clients, I look forward to observing their progress and witnessing the success of their Shopper Marketing strategies. I’m confident they will reap the benefits that our many clients have experienced over the years – plus sales and profits at retail.
*2008 report by Deloitte Consulting for the Grocery Manufacturers of America
Bob Gorrie, Chairman & CEO
