Blueprint for a New Era: The Retail Commission on Shopper ... · PDF fileShopper Marketing Dr....
Transcript of Blueprint for a New Era: The Retail Commission on Shopper ... · PDF fileShopper Marketing Dr....
Blueprint for a New Era:
The Retail Commission on
Shopper Marketing
Dr. Brian Harris, The Partnering Group
Diane Wallace, The Coca-Cola Company
Janet Sparkman, SuperValu
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Objectives
• Commission Overview
• Progress Report
• Work To Be Completed
• Commission Member Perspectives
2Copyright © 2009 The Partnering Group
Collaborating as trading partners to market
to both – consumers and shoppers
Shopper Marketing:
In Theory a Simple Idea…
3Copyright © 2009 The Partnering Group
Merchandising
focused
Marketing to Shoppers
In-Store Marketing
Plus
Category Management
Plus
…It Means Different Things To
Different Organizations
Marketing
focused
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Next Generation of Co-Marketing
Copyright © 2009 The Partnering Group
• Build and maintain loyalty to store and brand
among targeted shoppers
• Win the 1st two “Moments of Truth”:
store choice and product choice
But There Are Two
Common Objectives
5Copyright © 2009 The Partnering Group
The Industry Needs a Common
Understanding & Approach
for Shopper Marketing
In-store
experience
Private label
marketing
Shopper cluster
marketing
Customer
marketing
Retail marketing &
merchandising
Commercial
innovation
6Copyright © 2009 The Partnering Group
• Common industry principles, definition and process
• Retailer driven and integrated into business practices
• Collaborative strategic shopper marketing planning
• Delivers real shopper value, improved experience
• Creates efficiencies and improved returns
• Organizational capabilities must be in place
A Success Roadmap
7Copyright © 2009 The Partnering Group
• Define retailer requirements:
strategic, operational, organizational
• Integrate Shopper Marketing into
current business practices
• Establish new collaboration model
for growth & shopper satisfaction
Purpose of the Commission
8Copyright © 2009 The Partnering Group
• Retailer-centric philosophy
• Best Practices approach for Shopper Marketing
• Capabilities required by retailers and suppliers
• Roadmap for retailers and suppliers to follow
Commission Deliverables
The Best Practices Shopper Marketing Report:
11Copyright © 2009 The Partnering Group
Key Principles of
Shopper Marketing
1. Shopper and consumer focused
2. Retailer sponsored and enabled
3. Delivers execution excellence
4. Driven by a collaborative process
5. Results in real shopper value
6. Creates efficiencies and improved returns
12Copyright © 2009 The Partnering Group
Shopper Marketing:
A Working Definition*
Shopper Marketing is the use of
insights –driven marketing and merchandising
initiatives to satisfy targeted customer needs,
enhance the shopping experience, and
optimize business results for
retailers and suppliers.
13* Continues to evolve based on input from Commission Copyright © 2009 The Partnering Group
Collaborative Shopper Marketing
ModelSupplier
Strategic
Foundation
Core
Work
Key Enablers
Retailer
Core
Work
Key Enablers
Strategic
Foundation
Shopper Marketing
Plan
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Key Enablers for
Shopper Marketing
StrategyProcess
Excellence
Information
Systems
& Measurement
Organization
Capability
Best Practice
Companies
15Copyright © 2009 The Partnering Group
“Happiness Starts At The Shelf”
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Shopper Marketing
Diane Wallace
Vice President
Shopper Marketing
Classified - Internal use
Across the Globe …
• Shoppers consume Coca-Cola products 1.6 billion times/day
• Our retail world is more complex and competitive
• Our legacy will be to shape long term habits
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Classified - Internal use
Our Retail Activation Must
Convert Shoppers to Buyers
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Knowledge
& Insights
Consumers/
Shoppers
System
Leaders
Brands
Innovation
Retailers/
Customers
Agencies
Design
Portfolio
Strategy
Retail
Activation
Commercialization
Insight
Shoppers
Become
Buyers
Capability Under Construction…
• Continuing to build the science of
shopper insights
• Fine tuning in-store strategy and
investment
• Building Shopper Marketing
capability
• Sharing knowledge on global basis
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Commission Foundation Critical …
• Ensures alignment of focus with retailer
• Informs capability and overall shopper
marketing direction
• Jumpstarts industry with
common view and language
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Happiness Starts at the Shelf…
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Make shopping easy so that Coca-Cola brands can
deliver on promise to…
Refresh consumers and inspire moments of
optimism and happiness
Shopper Marketing at
SUPERVALU
Janet Sparkman
Corporate Vice President
Customer Strategy & Management
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Where we are…
• Startup following 2006 Albertsons acquisition
• Developed key segmentation models
• Focus is on building our “activation framework”
• Established Shopper Marketing team in Brand organization
• Currently delivering targeted email, direct mail, loyalty card offers on a regular basis
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What we’ve achieved so far…
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• Three segmentation models across all key consumer
touchpoints
Marketing programming
Merchandising and promotion
Real estate/Store design
Operations
• 55 Million targeted shopper contacts and over 141 million
manufacturer coupons delivered since March 2009
• 842 stores de-cluttered to improve shopping experience
• Currently working with 3 strategic partners on key aisle
“reinventions”
Our Shopper Marketing
Foundation is in Place
VISION
Establish and grow a proprietary enterprise-wide Shopper Marketing
program that facilitates industry-leading innovation and ongoing
vendor support.
MINDSET
Shopper vs.
product
focus
Insight-
driven
ORGANIZATION
Core team of
SME’s
supported by
cross-
functional
matrix
STRATEGIC
ALIGNMENT
Integrated
Merch &
Marketing
planning
MEASUREMENT
Analytic
capability to
measure
what … and
who
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Shopper Marketing Objectives
• Drive SUPERVALU growth via incremental vendor
funding
• Position SUPERVALU as a strategic investment partner
by delivering a profitable return on vendor investment
• Standardize an enterprise-wide approach for vendors to
invest incremental Shopper Marketing dollars
• Secure SUPERVALU position in Cannondale’s Top 10
Shopper Marketing rankings within two years
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Lessons Learned
• Timing of securing vendor funds
• Internal coordination between
Marketing/Merchandising
• ROI expectations
• Coordination with Retail Operations
Building for the Future with Our
Partners
FY’11 Planning Kick-Off Meetings later this
month
• Internal Meeting: mid-October
• Vendor Partners: late-October
Focus on:
• Merchandising/marketing key objectives
• Program menu
• Tactical options
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Retail Commission Action PlanQ4, 2009 Q2, 2010Q1, 2010
In-Store Expo Commission Introduction
Strategic Advisory Company
Discovery & Working Sessions
Joint Retailer / Supplier Pilots
Final Report
Publication
Collaborative Process Finalization
In-Store Marketing
Summit
Collaborative Process Development
Joint Commission
Working Session