Most clients I speak to are increasing their investment in shopper marketing – most surveys seem to support this. And whilst this is potentially good news, to be effective these investments should be focused on activities which will lead to sustainable, profitable growth. For this to happen, the shopper marketing investment must create a change in shopping behavior which in turn creates a long term change in consumption behavior. So what questions should be asked, and what clues should a marketer look for, to suggest that they are likely to get a good return from any planned shopper marketing investment?
Does the main barrier lie with the consumer or the shopper?
Before shopper marketers get carried away and spending bucket loads of cash on in-store activity, the first question they should ask is “Is this fundamentally a consumer related problem, or a shopper one?” Shopping exists to provide a solution which meets a consumer demand, so before we assume that there is a shopper barrier to overcome, the first question is whether there is consumer demand in the first place.
A while ago we were asked to study coffee in a market in Asia: the client was convinced that they needed a shopper marketing solution to drive growth in a specific trade sector; actually the problem was consumer-related. Whilst there was plenty of consumer demand for the brand, it didn’t come from the consumers found shopping in this particular channel. These consumers simply didn’t connect with the brand. If they really wanted to drive sales in this channel they first had to create consumer demand amongst those consumers. Until this was fixed there was little that could be done with the shopper.
However if, upon investigation, you find that there is consumer demand- the consumer has a need which the brand can meet – if the consumer’s experience of that brand suggests that the brand could meet that need, but if the brand isn’t currently being used – then potentially we have a shopper marketing problem to solve.
Key clues that you have a problem shopper marketing investment might fix
Key clue #1- The product isn’t available at the point of consumption.
A simple, but oft-forgotten truth – It’s really difficult to consume a product which isn’t available at the point of consumption. At 6.00am, or whatever time it is to start your daily ablutions, if your preferred brand of shower gel isn’t there in the bathroom, it isn’t going to be used. It would be a dedicated loyalist indeed who would get dressed, head down to the local store and buy their favorite brand under those circumstances. When faced with a lack of availability at the point of consumption, consumers either substitute or go without. P&G’s original reboot of Old Spice was built entirely on the premise that guys will use whatever shower gel is in the bathroom. If you’re brand isn’t available at the point of consumption, then that is a good sign that appropriate shopper marketing investment will make a difference. And if you’re not measuring availability at the point of consumption in some of your research, then you really are missing out on one of the most valuable bits of shopper data.
Key clue #2: If the product was there, would it get used? (or would more get used)
This goes to the concept of consumption elasticity – a simple enough concept that most marketers know I’m sure. However when it comes to planning shopper activity (and I’m thinking promotions primarily!) shopper marketers seem to exhibit collective amnesia and conveniently forget that any brand’s consumption could be anything but completely elastic.
Categories like chocolate and candy (at least certain segments of these categories) are usually highly elastic – supply more chocolate to the point of consumption (i.e. get people to buy more) and more will be eaten. Other categories (let’s say laundry detergent or toothpaste) are almost inelastic – housewives don’t buy extra laundry powder on a deal and celebrate at home with an extra load: nor do housewives rush in from the store armed with three tubes of toothpaste for the price of two shouting ‘honey, let’s brush our teeth three times today!”
If consumption of the category is inelastic, and the brand is available at the point of consumption (how many times have you run out of toothpaste in the last year?) then there are few barriers in the consumer zone, and there is little that can be done in the shopper zone too. Until the consumer demand changes, or could be changed, then changing shopping habits is largely valueless. Shopper marketers should concentrate on ensuring availability at the point of purchase to ensure that shoppers can always buy what they want, to ensure the continuity of supply to the point of consumption. Anything more is likely to be a waste.
Key Clue #3 – Purchase of the product would change the consumer’s perceptions
If the purchase of the product would change how the consumer feels: then the shopper activity could also affect consumption in a positive way. Trial of a new product does this. The act of purchase creates the possibility of trial, which, if it changes the consumer’s opinions, may lead to a change in long term demand, and a change in long term consumption and therefore sustainable growth.
To get a real return on shopper marketing investment, consumption behavior needs to change
It is arguably relatively easy to drive short term sales and a theoretical return on investment. But surely marketers should aim higher. Driving short term sales of products which fester in the home because there is no change in consumption may make this month’s numbers look good, but it does little good for the long term sales line, and less for the brand overall. Marketing a product to shoppers which consumers simply don’t want, or won’t engage with will likewise deliver limited returns. Either the shopper won’t buy (because they know the consumer doesn’t need or like it) or the shopper will buy, but only once.
Once a defined shopper marketing investment opportunity has been identified; and the shopper marketer is clear on which shopper they are targeting, then the next challenge is to understand in which channels that shopper could be influenced. We’ve just published an e-book on channel strategy – it’s available for free here .
