Think BR: Looking at shopper marketing through a new lens

Research from Kantar Worldpanel spells out the most pressing problem facing grocery brands today.

You would think brand leaders would be less reliant on price promotions, yet in the 52 weeks to the end of June last year, more than half their sales (54%) came from promotions that took up to a third off the full price.

Some brands seem to be on permanent promotion and many operate at alarming levels of volume on deal. It’s a vicious circle they dare not give up for fear of becoming uncompetitive.

It’s also a phenomenon that is diminishing the ability of marketers to manage brand equity.

Brand managers are starting to point fingers at their sales and shopper colleagues, suggesting that the business caves in too readily to its customers.

In reality, shopper teams are desperately trying to maintain order and keep revenue in their categories.

Whichever way you look at it, the situation is unsustainable. What then is the answer?

First, we must acknowledge where we’re at.

For shoppers and retail customers alike deep price discounts have become the ‘new normal’.

It’s no good puffing out chests and beating on tables. Wholesale change can’t happen overnight.

Yet this is not to suggest we can’t re-balance the relationship between volume and value. We must look at shopper marketing through a new lens.

Here are three principles for strategic change:

1. Gather true shopper insights to identify alternative currencies beyond price.
2. Be more demanding of your shopper marketing. 
3. Integrate shopper marketing into wider marketing objectives

Identifying alternative shopper currencies

The shopper is still massively under-researched in comparison to the consumer.

Our work with Ipsos Mori has de-bunked more preconceptions than I’m willing to admit.

Qual research and shopper labs are where you’ll find insight and inspiration, your alternatives to price, or at least, opportunities to mitigate the depths of your discounts.

A few years back P&G’s research found that the willingness to pay a premium for its brands was rooted in the shopper’s perception they were getting more for the higher price.  

Whether this ‘more’ meant better quality generally or specific aspects of product performance, it was a collective truth that resonated for a number of P&G brands.

These brands were brought together to create a collection of ‘Extra Free’ packs, providing shoppers with even more of the brand values they clearly cherished.

This newly minted shopper currency was embodied in an umbrella logo using a coin graphic, with the friendly face and chummy tones of Stuart Hall bringing everyone a ‘More for your money’ celebratory message on national TV.

P&G took back ownership of what shopper value meant for its brands and enjoyed significant off-shelf presence in store.

Being more demanding of your shopper marketing

Too much shopper activity has the look and feel of work executed on the hoof. The question shouldn’t be ‘what can we get in-store for £30k?’ It ought to be, ‘what do we need to achieve and what’s the best way to get it?’

It’s time for shopper marketing to embrace planning attitudes consistent with disciplines such as advertising and direct marketing. So if you haven’t yet got a shopper dashboard, set one up.

Test your offers using a mix of off-shelf options and different layers of in-store comms. Get the most from your shopper activities whatever your budget.

Most important, be ready to optimise your big offer plans from a position of strength, from knowing and understanding your ROI.

Integrating shopper marketing into wider marketing objectives

Shopper marketing shouldn’t exist in a silo. Consider how brand managers’ plans often have penetration objectives at their heart.

Happily, shopper campaigns hold out the prospect for huge penetration gains.

Providing you’ve optimised your activities you’ll avoid the deal junkies - a big chunk of your penetration will be incremental.

Such gains are more valuable - and sustainable - when the messaging derives from pre-initiative research that identifies and reacts to shopper barriers and triggers.

With stores keen to stage the dramas of the Olympics, UEFA’s European Championships and the Diamond Jubilee, 2012 is set to be the ‘year of the shopper’.

There’s never been a better time to re-think your approach. 

Kerry Bateman, partner and head of shopper marketing, WARL