Introduction to Shelf-Savvy Marketing
SHELF-SAVVY TOOLS
Book Cover, Spine and Back
Shelf-S
avvy Marketing
Introduction to Shelf-Savvy Marketing
FOR INTERNAL USE ONLY.Copyright© 2010 The Coca-Cola Company. DNA: The Coca-Cola Way of Marketing, Brand Value | Brand Love and the Dynamic Ribbon are all trademarks of the Coca-Cola Company.
Global Customer & Shopper Marketing Converting Shoppers to Buyers
SHELF-SAVVY TOOLS
Introduction to Shelf-Savvy Marketing
Capturing the value of our brands by converting shoppers into buyers.
7Shelf-Savvy Marketing
Shelf-Savvy Tools Series
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
The Shelf-Savvy Tools Series is intended to provide you with information about the different ways we create value at retail for all the stake-holders in our System.
Each book explores a different topic in depth, and provides you with resources and tools to help you put the content into action.
Use these books as a reference, as a repository for global best practices, and as a refresher.
9Shelf-Savvy Marketing
Whatis shelf-savvy marketing? Shelf-savvy marketing converts shoppers into buyers, transforming insights into value at the shelf. Why is it important to be shelf-savvy? The world we market in is changing rapidly.
In this new world, more people are making more decisions, amongst more options, in more stores.
To win at the shelf, we must capture the value of our brands by optimizing how shoppers experience our brands at retail. hoW do we become shelf-savvy marketers?By thinking with the end in mind. By understanding our brands and how they connect with consumers, shoppers and customers. By activating holistically, so that we bring value to all of our stakeholders.
Shelf-Savvy Marketing: An Overview
WhAT does it mean to be shelf-savvy?1
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WhAT 13Shelf-Savvy Marketing
Our mission:To inspire moments of optimism... and happiness. To create value. To make a difference.
For consumers
A positive impact on the body, mind, and spirit
Our objective:Creating value for all the stakeholders in our System.
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What does it mean to create value?
For shoppers
An easier—and less price-elastic— shopping experience for each unique shopping mission
For customers
Improved beverage incidence, basket size, and shopper loyalty
Collaboratingfor Value
Converting ShoppersInto Buyers
Creating Brands
People Love
ShOPPERS
CO
NS
UM
ERS
CUST
OM
ER
S
WhAT
BRANDS
Our vision:Design with the end in mind— creating holistic brand and channel experiences that not only inspire people to buy into the brand, but to buy the brand.
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ShOPPERS
CUST
OM
ER
S
WhAT
CO
NS
UM
ERS
BRANDS
Fusing inspiring brand ideas with commercial discipline to create value.
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love
value
BRANDS
WhAT
Our Shopper Marketing Manifesto:We believe shelf-savvy marketing converts shoppers into buyers, transforming insights into value at the shelf.
21Shelf-Savvy Marketing WhAT
WhY should we evolve?
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2
The global beverage market is fragmenting, creating more alternatives and greater elasticity. 20% of global growth is projected to come from Sparkling, where we have leadership share.
80% of global growth is projected to come from new Still categories, where we don’t.
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80%
20%
Source: KO
We need to be more relevant in a world of more options.
WhY
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As the global retail landscape evolves, large retailers are creating more leverage.Large retailers are rapidly expanding in developing markets—creating new retail formats and challenging traditional shopping behaviors.
Retailers are becoming increasingly sophisticated, leveraging scale and shopper data to build their brands and compete directly through customer/private label brands.
Source: Planet Retail
We need to actively collaborate with our customers to create value.
WhY
GLOBECO
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Demographic and social trends are changing how people shop—and the beverage choices they make.As lifestyles change, people are shopping more often, with smaller transactions.
This creates new shopping occasions and motivations, with more channel and beverage options.
Future Consumption Missions
Imminent Consumption Missions
Immediate Consumption Missions
Stocking Up
Filling in
JIT Meals
Away from home Meals
Special Occasion
Daily Shop
Urgent Items
Non GrocerySource: SONAR/MOTOR
We need to adapt our portfolio to capture new shopping behaviors.
WhY
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We are building brands people love—but not consistently capturing the value. Globally, there is a 10 point gap between our brand preference and volume share. Bridging that gap is equivalent to adding an incremental Latin American group to our business.
Source: Nielsen/B3
We must balance our activation to capture both Brand Value and Brand Love.
WhY
$
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Wooing Brand Lovers is critical—but we can’t forget about the opportunists. While 60% of volume comes from preferrers, 40% comes from more elastic, less loyal non-preferrers.
Source: Nielsen/B3
60%lovers
40% opportunists
WhY
We must embrace our most loyal users—and activate the store to capture the large number of trialists.
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A traditional media model will be much less impactful in our changing world.There have been more new media additions in the past 20 years than in the past 200 years.
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Source: Advertising Age
In some markets, the leading retailer reaches as many people each week as the top 10 television shows combined.
To close the sale, we must actively communicate throughout the path to purchase.
WhY
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More purchase decisions are being made in store.While most grocery buyers have a rough list of their planned purchases, 60% of food and beverage purchase decisions are made in store. Beverage buyers tend to have more preferred brands, but package, size and quantity decisions tend to be made at the shelf.
Source: Booz & Co.
We must make it easy for shoppers to BUY our brands.
28% Brand display
28% Package
Buy 1 Get 1
26% In-store coupons
NEW LOWER PRICE
WAS $3.50$298
Free
Sale
NOThING BEATS32% Store circular
WhY
40% Shelf signage
Influences on Purchase Decisions
DRUGCO
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The challenge: In our new world, more people are making more decisions in more stores.
Are we ready to win at the shelf by capturing the value of our brands at retail?
hOW do we become shelf-savvy marketers?3
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Execution is core to our DNA.The goal of marketing at The Coca-Cola Company is to combine art and science at every touchpoint to build Brand Love and Brand Value.
hOW
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Leveraging commercial discipline to create value at retail for all our stakeholders
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Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
Defining the profit pools
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We can leverage our insights to help us identify:
Which occasions and missions?
Which customers and channels?
Which shopper segments?
How do we unlock value?
the outcome: A clearly defined set of target occasions, missions, customers, channels and shopper segments.
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
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Creating a differentiated offer
Portfolio strategy can help us determine:
Which occasions?
Which brands?
Which packages?
Which price points?
Which channels?
Which equipment?
the outcome: A differentiated bundle that is uniquely suited for an outlet and the shoppers it serves.
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
Creating a retail experience
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Effective retail activation will help us:
Optimize shoppability
Optimize in-store communication
Optimize promotions
Optimize packages
the outcome: A retail activation that communicates directly to— and connects with—the shopper.
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
Making it happen in the market
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We can quickly commercialize our efforts across our System through:
Collaborative Customer Plans
Scalable Activation Platforms
Common development process
Transferring best practices
The outcome: Effective and efficient plans that are commercialized with speed and scale.
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
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Simple metrics to measure our progress
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Accessible metrics will help us measure:
Value growth vs. volume growth Are we creating leverage with a segmented portfolio?
Volume share vs. preference Are we monetizing the value of our brands?
Incidence Transaction frequency Amount of transaction Are we impacting consumption and purchase habits?
The outcome: A scorecard to measure the impact of our retail activation.
Metrics
Commercializing with Customers
Activating for Retail Impact
DifferentiatingBrand / Pack
Strategy
Prioritizing Shopper Opportunities
Picture of Success
hOW
A suite of tools to bring Shelf-Savvy Marketing to life
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_ DNA 3.0: Marketplace Execution (Process & Best Practice)
_ Shopper Strategy_ Point of Purchase Principles_ Merchandising Principles_ Packaging Principles_ Promotions
_OBBPC Architecture_Shopper Driven Category Management
_Shopper Insights_Shopper Segmentation
Metrics
Commercializing with Customers
Activating for Retail Impact
Prioritizing Shopper Opportunities
Picture of Success
DifferentiatingBrand / Pack
Strategy
hOW
habits to Win at Retail
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1. BalanceBalance Brand Love and Brand Value in all we do
$$$$$$$
hOW
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2. Prioritization Prioritize growth and investment opportunities
$hOW
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3. PortfolioMake disciplined Portfolio choices
hOW
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4. SegmentationBuild segmentation capability for strategy and execution
hOW
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5. DifferentiationCreate pack / price differentiation and innovation
hOW
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6. Occasions Provide a compelling reason when and why our brands should be consumed
hOW
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7. InterruptionCreate retail brand experiences…in and beyond the beverage aisle
hOW
Shelf-Savvy Marketing
Capturing the value of our brands by converting shoppers into buyers.
FOR INTERNAL USE ONLY.Copyright© 2010 The Coca-Cola Company. DNA: The Coca-Cola Way of Marketing, Brand Value | Brand Love and the Dynamic Ribbon are all trademarks of the Coca-Cola Company.
Global Customer & Shopper Marketing Converting Shoppers to Buyers