In-Store Marketing: Why malls want a slice of the experiential pie

The research - on what visitors think about advertising, promotions and experiential marketing - has been compiled over two years at Bluewater, which sees a footfall of 28 million visitors a year, says Chris Meredith, the centre's commercialisation and corporate partnership manager. His findings underline what marketers know already: that consumers are hot for experiential marketing.

And marketers are certainly allocating more spend to it, as research from live events agency MICE Group illustrates: when it asked senior brand managers across the globe what they spent their budgets on, nearly all of them said they already allocated at least a third to experience-based activities. And nearly half anticipate increasing that spend over the next two or three years.

But this popularity has created a problem for marketers when it comes to rolling out the medium. Supermarkets have long been the natural choice for brands engaged in sampling. But retailers are becoming more stringent in accommodating such activity as the number of marketers wanting to bring their brands to life on the shopfloor grows. "The problem lies in the sheer number of lines vying for attention, and multiple grocers have to act as customer guardians," believes Dominic Margetson, commercial planning director at Inferno.

Which leaves some brands opting for the next best thing: shopping malls.

According to Glen Barkworth, general manager for the Manchester Arndale Centre, brands are waking up to the potential of experiential activity in shopping centres as part of their marketing arsenal. "They are beginning to understand the worth of space in shopping centres and are starting to push the boundaries with experiential activity," he says.

Lakeside shopping centre's marketing manager, Clare Lamont, concurs: "Brands are just beginning to truly understand the power of shopping centres as a platform for exposure. A weekend of sampling activity in a busy shopping centre can expose your brand to tens of thousands of consumers."

With restrictions in-store limiting the creativity of experiential marketing, shopping centres are welcoming interactive campaigns that provide a brand experience for consumers. "We welcome the quirky because it adds value to the shopper experience," claims Simon Tracey, marketing director of retail marketing agency Spirit Communications. The agency works on project management and strategic planning for shopping centres, and its client portfolio includes the Manchester Arndale and Birmingham Bullring.

BROADENING THE EXPERIENCE

The extra space - and more welcoming stance - afforded by shopping centres is pushing the boundaries of experiential activity as brands vie to attract shoppers' attention, says Georgina Thompson, marketing manager at Meadowhall. The Sheffield centre, too, has seen significant growth in brand activity. But what's changing over recent months is "a realisation from brands that they have to produce something that really stands out and is different in order to draw consumers over," she observes.

With more space and fewer restrictions on what their brands are able to do, marketers are using this freedom to contribute to their brand-building objectives rather than to solely drive sales.

Past activity in centres has included penalty shoot-outs, taste challenges, fashion shows and more. By creating such interactive experiences, as opposed to simply handing out samples, consumers gain a clearer idea of a brand's positioning. They will also be more inclined to share their experiences with others, further spreading the brand's message. The longer dwell times in a shopping centre also mean that brands have a higher chance of engaging the consumer, who is more relaxed and open to interacting with the brand than a supermarket shopper.

Shopping centres also offer support by providing guest touch points throughout the malls, which drive consumers to the activity to increase customer participation. "Arndale has a fully integrated digital platform including pods with plasma screens across the centre telling visitors what is happening in the mall. We also often promote the activity on our website as a draw for consumers because we see it as an attraction and event for our guests to take part in," says Tracey. Lakeside can also communicate events and offers to its existing database of visitors.

This eagerness from shopping centre management doesn't mean brands can do what they like: centres police promotions to ensure brands do not approach consumers directly, but wait for them to participate. Activity must pass guidelines before being implemented to ensure there is no conflict with consumer interest, says the Arndale's Barkworth. And, of course, centres have to keep retailers happy. "As long as the activity doesn't draw too big a crowd away from the retailers, they are usually in favour of it.

And visiting brands can agree to point out shops that stock the products they are promoting," says Spirit Communications' Tracey.

But as Nick Adams, managing director of experiential agency Sense Marketing Services says, brands that exhibit without a retailer in the centre that stocks their products will obviously find immediate conversion to purchase lower than in-store, although over time, return on investment may be higher.

"Supermarkets still have advantages and can provide a short, sharp sales uplift. For brands looking for straightforward sampling and conversion to purchase, then supermarkets work best. They are the closest to the POP which impacts on sales as consumers are more likely to buy," he says.

"It is also easier to evaluate sales in-store. For our activity, we look at the EPOS data at the end of the day and also find out the base sales seven days before, seven days after and on the day of the campaign," he adds.

STRATEGIC MOVE

This year's ISP Awards Grand Prix winner, Branston Beans's The Great British Bean Poll campaign, illustrates the point. Supermarkets were the only option for this push, but it needed space, so agency The Big Kick chose to set up in car parks. "The benefit of supermarkets is that you are as close to the point of purchase as possible," says Nick Rabin, marketing manager at Branston Beans. "The activity was part of the launch strategy and gave the brand huge visibility, with 250,000 people sampling our beans. The main objective was trial, which we wanted to lead directly to sales; so shopping centres were not relevant for our objectives."

So shopping centres aren't a panacea for all brands looking into experiential marketing. Most commentators agree that the supermarket offers greater relevance for the majority of FMCG brands, but the shopping centres are obviously touting their validity as a strong option. Whether they can match the uplift and ROI delivered by supermarkets depends, as ever, on brand objectives.

BLUEWATER AMBI PUR

The Ambi Pur Fragrance Challenge Roadshow promotion targeted women in shopping centres across the country to choose their favourite scent.

Consumers were encouraged to smell a pure perfume sample, and compare it to an unmarked Ambi Pur fragrance and a competitor freshener. They were then asked to choose which smelt most like the perfume and which they then preferred. Results on the ongoing campaign as P&I went to press found that 73 per cent of consumers felt that Ambi Pur was closer to the perfume and 68 per cent preferred the smell of it.

The roadshow stand had three sides: one displayed the inspiration behind the products, another showcased its latest product, 3volution, and the other displayed the Christmas range in a house setting. Money-off coupons were handed out to participants, and consumers also had the chance to win one of three holidays in a free prize draw. Balloons were given out to spread awareness of the activity around the shopping centre and participants will be sent follow-up emails to further market the brand. The Roadshow runs for 30 weeks, visiting the UK's top 28 shopping centres and the Autumn Ideal Home Show.

"In this category you are only as good as your last innovation," says Andy Snuggs, managing director of Geronimo, the agency behind the promotion. "The lower the interest in the category, the more you have to do to interact with them.

Experiential work like this interrupts people when they are walking between their shopping, and is a more considered involvement for the consumer."

Debbie Archer, a participant in the challenge, admitted that she is not brand loyal and buys any freshener she sees, irrespective of the brand.

"I was attracted to the stand because of the new product on display. This type of activity does make me want to buy the products, particularly with the money-off coupons given away," she said.