We recently completed research exploring the current state of Shopper Marketing in Ireland. The purpose of this study was to understand key practices and challenges in the industry today, and to share the learnings from this to help companies as they endeavor to grow.
The research surveyed 67 directors and managers across 40 different FMCG companies from large multinationals to SMEs. A wide range of functions were represented including general management, consumer marketing, sales, trade marketing, shopper marketing, category, insight and planning.
Shopper engagement is key to growth
Overall, the research suggested that to amplify and sustain growth in todays’ market, shopper engagement needs to become a consistent way of working across companies, rather than a bolt on to marketing, commercial or category functions. What became immediately apparent from the study was that the vast majority (97%) of all the directors and managers agree the changing retail landscape and the fragmentation of media means they have to ‘significantly reassess’ how they communicate and market to consumers and shoppers.
Shopper getting more focus
In tandem with the need for significant reassessment, there has been a prioritisation of shopper marketing across the Irish industry, with 65% of FMCG companies making shopper marketing a priority in the last 5 years. In this short time companies have already compiled many cases of delivering strong results through emphasising more shopper focused marketing activity.
…but facing many barriers
While shopper marketing activity is delivering results, the directors and managers highlighted a long list of barriers, both internal and external, to getting initiatives consistently implemented in store.
Making shopper engagement a way of working…
A number of components were highlighted that would assist companies in breaking down the barriers, and achieving bigger and more sustainable returns on shopper engagement efforts…
- Establish an integrated process – Currently only 7% of companies in Ireland stated to have a consistent integrated process to conducting shopper engagement activity. This lack of process means each activity takes excessive efforts to get traction across functions, and in store. Establishing an integrated process linking consumption opportunities right through to the in-store environment will amplify all marketing and commercial efforts, and make execution more seamless over time.
- Rounded measurement to grow – More rounded measurement needs to be incorporated to create a ‘test and learn’ culture. While sales was used as the key measure of shopper marketing activities by nearly all companies, return on investment was only reviewed by 69%, and compliance and shopper behaviour was reviewed by less than 15%! This means many initiatives may be cut, or not capitalised on, as the real shopper reaction is not understood.
- Establish 3-way Insight – There is growing need to design solutions that are not only relevant to the end consumer, but will engage shoppers in the different retail environments. 3-way insight into consumer needs, shopper behaviour and the target channel environment is a now a must to design solutions that will work in today’s market.
- Build the competencies to ‘make it happen’ – Finally, the last key component is to develop shopper engagement skill-sets across the commercial, marketing, innovation, category, planning and insight teams. 86% of directors and managers stated their company’s skill-sets in applying a shopper centric approach is currently low. Building competencies in this area is fundamental in ensuring effective shopper engagement can be delivered more regularly and consistently across organisations.
Upcoming Shopper Marketing Training Workshop…
Engage will be running a Shopper Marketing training workshop on Tuesday 12th January 2016 in Dublin. The training workshop will be an interactive full day session covering:
– How a shopper-centric approach will help drive growth
– Developing effective and efficient 3-way insight
– Developing a mix that transforms shoppers’ behaviour
– Enhancing returns on retail investment
For more details contact us