Shopper Marketing Value – it isn’t all about sales!
A client said to me recently that ‘all supermarkets are basically the same’: and at one level, I guess that they are! But, on so many other levels, they are most certainly not. And as shopper marketing and trade marketing teams seek to maximize the impact of their marketing spend, understanding the differences between seemingly similar retailers is increasingly important. From a marketing point there are a number of differences: in this post I want to explore one of the most important: what retailers will allow, and what retailers are capable of delivering and the impact that has on the deliver of our strategy
When it comes to shopper marketing value – Not all retailers are equal
In this article, I examined the main reasons why we need to be shopper-centric rather than retail-centric in our shopper marketing investment decisions. The biggest one is that different retailers attract different shoppers, so clearly our choice of retail partner should, to some extent, be driven by the fit between our target shoppers, and the shoppers who visit that retailer.
Shopper Marketing Value – it all comes down to objectives
But let’s assume that we’ve decided that two retailers are broadly equal in their ability to attract our target shoppers. Then what? Are both retailers of equal value?
If the only objective you have for your activity is to grow sales, then the answer is relatively simple. Which retailer is likely to give me the biggest sales uplift? But Shopper Marketing is more than just increasing sales. Or at least it should be! There is a clue in the name ‘Shopper Marketing’. If it was all about sales – wouldn’t it be better to call it ‘sales activity’?
If we think along these lines, then we need to look beyond sales. We should consider whether the retailer will allow us to effectively implement a plan which meets our shopper marketing objective. To illustrate this, I’d like to use a couple of displays I saw recently: for the same brand, but in two different supermarket chains. The one on the left is in an Asda store, the one on the right is Tesco.
Shopper Marketing Value – which display is better?
So, which is better?
Many of you will argue for the Asda display (on the left). From a brand point of view, you would probably be correct. Some might argue that the Tesco is far more in that it is consistent with the retailer’s overall strategy, look and feel, has a clear call to action, and keeps things simple for the retailer and the shopper.
Which one is better? It depends on the shopper behavior objective. It depends on what we want the shopper to do, and the shopper barrier: why the shopper isn’t doing it. It depends on what we are trying to achieve.
If the main reason that the shopper doesn’t buy herbs and spices is that they don’t see them (a visibility barrier) or that they are a bit too pricy (a price barrier) then the Tesco execution is perfectly acceptable.
If however, the shopper barrier is about perceived benefits or consideration (I don’t think my meals need herbs and spices, or I don’t even consider using herbs & spices) then the Asda execution is clearly better.
Beyond that the stand-out power of the Asda execution is probably going to have more impact.
Possibly, Schwartz have identified that the shopper barrier in each of these retailers is very different and therefore are delighted, and actively pursued, two completely different executions.
Or (and I have a strong suspicion this is the case), Schwartz know or believe that the barriers relate to usage benefits and consideration, but had to compromise the execution to fit with Tesco’s exacting standards of what is and isn’t allowed in a store.
Shopper Marketing Value – be aware of the cost of the compromises we make for retailers
And yes, I know we do need to fit with retailers plans and rules. I’m not saying we shouldn’t.
But we need to make sure we know that one retailer is allowing us to hit our objective, and the other is not.
The danger of hitting the sales number but missing the real marketing value
What do I mean? Both displays are likely to drive sales, aren’t they? Sure, but which shoppers will they attract? Both displays will attract current category shoppers who forgot to buy the category, or only buy it on discount. But (arguably) only the Asda display attracts and inspires new shoppers to the category. Assuming that is the goal, there is a grave danger of the Tesco execution delivering sales objectives, but missing the strategic objective completely.
And to be clear, I’m not arguing that this is necessarily a bad thing. We have to play to the rules of the game – and these are the rules in these retailers. But we need to be aware. The display is Asda may well deliver better strategic value as compared to the one in Tesco. As long as that is factored into our decision making process regarding where to invest, we’re OK. From a sales point of view the Tesco display might be more valuable (as they are a bigger retailer). From a marketing point of view (and the long-term sales value) the Asda display might be a lot more valuable as it is more likely to bring new users to the category.
Using better shopper marketing objectives to persuade retailers to behave differently
And of course, this therefore creates an opportunity to try and persuade a retailer to behave differently. If the Asda-style display is likely to bring new users to the category, then it brings long-term value to the brand. But it also brings long-term value to the retailer. Maybe the retailer will still say no, but by understanding value beyond short-term sales, we at least create the opportunity to try and persuade the retailer to do something different. Where is the harm in at least trying?
Connect strategic objectives to every activity
Because this is where I’ve seen so many brands go wrong. We start with great strategic plans but by the time we execute we’ve hollowed out strategy in the name of sales. Or we don’t have any strategic objectives for our in-store activities. I’m not quite sure which is worse.
Better objectives lead to better execution which leads to better results
Better objectives lead to better execution. But clear objectives, and strategic as well as commercial objectives, help us understand when we are compromising our strategy. If we only assess these executions on their ability to deliver sales: they may well be equal. If we want to assess them on their strategic value, only one might be the winner.
The Shopper Activation WheelTM – A process to drive strategic and commercial value into everything we do in-store
At engage we’ve developed a simply but powerful process, the Shopper Activation Wheel™ which ensures that every activation is connected to our consumer and shopper strategies, and helping us evaluate different executions across different retailers. Get in touch now to learn more, or check out our training programs to see how we can help your team make this part of their daily planning.