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Shopper Marketing in Vietnam Mobile Retail

1Vu The Du, 26 April 2013, CMO Conference

Snap shot on Vietnam Retail Mobile Market

• 1.5B US$ Market • 16.000.000 Units/year• 14.000 retailers • 50% by ORG stores

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Content

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What�is�Shopper�Marketing�1

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Retail Marketing Revolution Wave

51950

1985

Today

BrandMarketing

CategoryManagement

ShopperMarketing

(source: ECR)

The Power of Shopper Now

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Shopper

Retailers

Brands

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Definition

“Shopper Marketing is the employment of any marketing stimuli designed to build brand equity, engage the shopper, and lead her to make a purchase.”

(Deloitte’s 2008 Delivering the Promise of Shopper Marketing)

8(source: AMA)

Marketing with in-store initiatives to close the deal

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360 degree of shopper and consumers

9Source: 2008 Deloitte/GMA Report: Delivering the Promise of Shopper Marketing

A Path to Purchase

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Consumer Shopper Buyer

Demand Buy

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A Path to Purchase

Shopper Insight

Consumer Insight

A key channels of the path to purchase

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Pre�Ͳ Purchase

Post�Ͳ Purchase

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Why�is�Shopper�Marketing�now�2

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Push vs Pull Strategy:Which is more effective?

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Retailers Brands

Decline in media effectiveness

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Multi Media Platform

Time shift viewing

Message Overload More Demanded

Consumer

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Who Do You Trust?

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25% Advertising

70% Strangers withProduct experience

84% Online customerevaluation

90% Friends who usedthe products

(Source: Edelman Trust Barometer, US Consumer survey, 2010)

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Ad spend wasted if you don’t deliver at POS

April Redmond, Visualize Shopper Marketing Seminar, 2011

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Why Shopper Marketing for the Consumers

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Shopper

22(Source: various sources)

78% Learning new items

76%Seeking pleasure, experience, fulfillment

70% Shelf Decision

Brand Loyal5%

26% Store Loyal

30’Duration in store

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Shopping Duration inVietnam Mobile phone store

23(Source: BMC Survey 2013)

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“They may ignore media but they will always arrive at the point of

purchase”

(Source: Shopper Marketing Magazine)

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Why Shopper Marketing for the Retailers

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Retailers

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• Differentiation• Shopping Experience• Loyalty

• Store traffic• Private brand

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Why Shopper Marketing for the Manufacturers

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Brands

• Consumer’s Demand• Competition (category, private label)

• Retailers’ demand (brand identification, Less shelf space, Clean store policies)• ROI• Relationship (with retailers)

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Companies engaged in successful Shopper Marketing are

consistently delivering ROIs of

4-5:1On their shopper-based initiatives

- The Hub 2011

Sweet Spot in Shopper Marketing

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Shopper

BrandsRetailers

Sweet SpotMotivate shopper to buy the brand

Create consumer demand for the brand

Motivate retailer to support the brand

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Content

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Shopper�Marketing�model3

Shopper Marketing Model

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Shopper InsightConsumer Insight

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PLAN Facts: Vietnam Mobile Retail Consumers

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88% Research before buying

62% Digital research

(Source: BMC Survey 2013)

78% Purchase decision made before

70’ Research duration

Shopper Marketing Model:the PLAN factors

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Online�browsing(mobile�web)

Product�brand�

communication�

(ATL,�BTL)

Previous�Experience

WOM

ExpertsBlogosphere

Print�media,�Catalogue

Opinions�of�friends,�colleague,�famil

y

Direct�mail�from�

retailers,�brands

Targeted�coupons�(loyalty�

cards,�mail�list…)

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What information do you search before buying?

35(Source: BMC Survey 2013)

Zero Moment of Truth

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Shopper Marketing Model:the PLACE factors

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Product�samples,�demo�class

Store�specific�

positioning

Store�ambience

Product�Stock

inͲStore�media

Store�circulars,�fl

yers

Info�desks,�broadcasts,�kios

ks

Product�packaging

Planogram

Sales�assistants,Service

Price,�Promotion,�gifts

POS�display,�POS�action�

(events,�contest)

The�4th

Place

MOB�Media

What characteristics do you dislike most about the store?

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Không có hàng

Nhân viên bán hàngkhông kiӃn thӭc

Không có khuyӃn mãi

Giá trên mҥng khácgiá cӱa hàng

KhuyӃn mãi trên mҥng cócӱa hàng không có

Mһt hàng nghèo nàn

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What characteristics do you like the store to do?

39Trҧ góp ѭu ÿãi

BH Nhanh chóng

Thanh toán nhanh

Nhân viên hiӇu biӃt, Ân cҫn

KhuyӃn mãi nhiӅu

Trang trí hiӋn ÿҥi

Cài ÿһt ӭng dөngnhanh

Nӝi dung web phong phú

NV khôngÿeo khách

Giá hӧp lý Dӏch vө tѭ vҩn qua ÿiӋn thoҥi

Shopper Marketing Model:the PURCHASE factors

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Product�experience�gratificaͲtion

Mobile�Aid

Simpler�&�Strong�message“Smart�choice”

Promotion,top�selling�

POS�display

Sales�Support

Price�check

Similar�Product��segment

Differentiate�planogram

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Why you don’t buy the brand you plan before in the store?

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What the Retailers and Brands should do?

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Shopper

BrandsRetailers

Sweet Spot

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70% of promotion lose money

(the Hub 2011)

48Retailers Brands

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Mutual benefits for Both Retailers and Brands

Shopper Base

Conversion rate

Shopper trip

Invoice salex x

x

Collaboration between Retailers and Brands

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Goal & KPI conflict

Lack of shopper insights

Organizational conflict

Trust

Budget

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Increase sales (40%)

Increase sale (42%)

Strengthen shopper relation (30%)

Enhance brand equity (16%)

Strengthen brand relation (10%)

Strengthen shopper relation (13%)

Strengthen retailer relation (10%)

GOAL CONFLICT

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Retailer profit (31%)Unit sale (42%)

Retailer revenue (25%)Brand revenue (15%)

Unit sales (13%)Retailer revenue (15%)

Retailer profit (4%)

KPI CONFLICT

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What is the Shopper Marketing

Strategy Model?

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Shopper Marketing Strategy Model

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Get�to�know�yourself

Get�to�know�your�market

Get�to�know�your�retailer

Get�to�know�your�shopper

Define�SM�Strategy

Execute�&�Measure

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Shopper Marketing Strategy Model

Get�To�know�your�shopper

•Define�required�insights

•Collection�of�internal�existing�data

•Shopper�research�based�on�insights�needed

•Shopper�Segmentation

•...

Shopper�Demands,�Shopper�

research�methods,�Shopper�

Barriers�

Get�to�know�your�Retailer

•Retailer�strategy�analysis

•Performance�analysis

•Identify�key�contacts

•Identify�key�processes�&�way�of�working

•...

list�of�strategic�retail�partners,�Category�role�per�retailer,�key�

priorities�and�opportunities

Get�to�know�your�market

•Competitor�SWOT�Analysis

•Competitor�portfolio�assessment

•Define�Category�Role

•...

Ranking�of�competition�&�

products,�Category�role

Get to�know�

yourself

•SWOT�analysis

•Portfolio�Assessment�(BCG�Matric)

•Product�life�cycle�analysis

•P&L�analysis

•...

Commercial�Strategy,�company�capabilities,�Product�

strategy�

Execute�&�Measure

•Define�activities

•Set�action�plan

•Identify�involved�departments�&�key�stakeholders

•Set�Backtimings

•Identify�KPI’s

•...

Improved�business�results,�continuous�

learnings

Define�Shopper�Marketing�Strategy

•Define�action�plan�for�each�specific�retailer�based�on�the�needs�of�all�parties�(company,�retailer�&�shopper)�involved

•...

Clear�&�Executional�Shopper�Marketing�

Strategy

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For Shopper Marketing Strategy to work

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…�or�heading�in�different�directionAre�you�working�together�with�your�

partner�…

…�or�leverage�your�joint�potential?Are�you�struggling�walk�in�your�

partner’�shoes�…

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Is it easy to coordinate?

Mistake #1

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informing

communicating

Mistake # 2

Mistake #3

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Mistake # 4

EMOTIONSThe will to change

RATIONALThe recommendation to change

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Speed

Alignment

Commitment

The Tool to Get Shopper Marketing Team Work

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You cannot just absorb other people¸s knowledge…

Solving collaboration problem

¹It¸s not what you know, it¸s how you know it.º

…you can only create your own.

PROGRAMS

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Content

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Conclusions4

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Speed

Alignment

Commitment

We help companies to ALIGN their staffs, get them COMMITTED to achieve goal with SPEED

Who We Are

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Benefits to your business

Speed of execution

• Increased speed to market

• Ability to compete

• Drive performance targets

Alignment

• Share vision and internal alignment

• Reduce silos

• Increased resource sharing

Engagement

• Build confidence and motivation

• Actionable

• Retain high potentials

What We Bring

How�We�Do

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• CrossͲfunctional�communication

• Shopper�Marketing�Coordination

• Cascading�of�strategic�plans�&�goals

• Product�launches

• ReͲBranding

We Can Support in

• Sales�conferences

• Regional�management�conferences

• KickͲoff�events�&�team�building

• HighͲpotential�training�programs

• Strategic�planning�&�Budgeting�rollͲout

• Dealer�&�reseller�conferences

We Can Support when you organize

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Our�Methodology

Our�Clients