How shopper marketing helps
The most successful CPG companies are now discovering the power of shopper marketing. Research by Deloitte in 2008 showed that firms which integrate shopper marketing into their business operations have seen growth between 50% and 100% faster than the categories they operate in.
Firms which have successfully integrated shopper marketing have found that, in addition to uncovering new growth levers for their brands, their commercial teams are becoming more effective.
- Investment decisions are enhanced: Managers are able to prioritize opportunities and focus investment above-the-line, below-the-line and with customers.
- Internal efficiency improves: Shopper marketing creates more coherent links between consumer marketing and sales, these links enable consistency and alignment behind shared goals.
- Competitive advantage is developed in the trade: The careful targeting of investment into priority channels motivates the customers in these channels to support the company’s brands at the expense of competitors.
- The in-store marketing of the company’s brands is improved: As customers – both in the modern trade and in the traditional trade - become more supportive of the brand, the opportunity to ensure that it is presented in a consistent, compelling fashion in-store increases.
- Purchase of the company’s brands increases: A compelling, targeted in-store marketing mix reinforces the company’s above-the-line marketing efforts, leading to more sales to loyal shoppers and first-time buyers.
- Return on sales and marketing investment improves: Increased off-take of the company’s brands improves the overall return on total marketing investment.
Integrated shopper marketing begins by understanding what opportunities exist to drive consumption of a brand; identifies the shoppers and the shopping behavior required to fuel consumption; analyzes in which retail environments that behavior could be created and what in-store marketing mix is required to create it. At this point, investment decisions can be made which will maximize sales and profitability.
