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TURNPERS
SHOPNTO
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Next Steps 24
Published in 2008
by Ogilvy & Mather
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Retailers will lure shoppers to their store using heavily Retailers around the world are locked in a battle for the
discounted price promotions on traffic building shopper at a time when the behaviour on a shoppers
categories, in most cases forcing manufacturers to pay path to purchase is changing. Some retailers will balance
the cost of the discount aggressive marketing with sustainable pricing, while
others will be less strategic. The challenge for marketers
Retailer spending on advertising and promotions is helping retailers better navigate the recession with an
will grow to support a more aggressive marketing insight-based approach to engaging shoppers in-store, and
campaign, in many cases it will be manufacturers that keeping them loyal to the retailer.
fund this through new programs and fees
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As weve highlighted in this paper, shoppers are Its a product display that triggers impulse buying more
changing their behaviour and attitudes to where than any other activity in-store
they shop and how they choose what to buy. While
this presents a myriad of challenges for retailers and Promotional pricing was the least effective of all
marketers to navigate, they essentially boil down to: marketing activities in-store at triggering an impulse
purchase or brand choice
1. Getting a shopper into the store
Now that shoppers are reappraising the way they shop,
2. Making sure they buy your product retailers and marketers must do the same. This requires
an understanding of the dynamic between the shopper,
The challenge can be answered by a combination the retailer and the brand.
of subtle persuaders that push, pull, influence and
ultimately satisfy the shopper. This means:
The solution to drawing shoppers to the store could be Know your shoppers habits inside and outside the
about enhancing communication with a value message store, how they get to the store and what they do when
like how much the family saves eating breakfast not shopping or whats important to them
cereal bought at Wal Mart versus a quick serve
restaurant. Similarly, activation events near the store Understand the equation between cost and value, for
are a powerful draw card, events that help shoppers live both the consumer and the shopper
better - like the Flora Pro Activ heart health draw
a crowd and make the retailer the good guy in the Use technology and information, whether its a loyalty
community. program or shopper research data should be the
currency that drives your tactics
The solution when the shopper is in-store to make
them buy your product is complex. To make sense of Understand your competition or it will ambush
the complexity, we spoke to 14,000 shoppers in 24 your plans
countries around the world when they were at the store.
They told us that:
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How we win starts with a disciplined process that In the journey a shopper takes as they become a buyer,
generates credible results. We call it Checkpoint Planning. there are many touchpoints that can trigger the purchase
Our process looks deep into the critical relationship for our Clients brands. Using insights from the
between a consumer and a brand how that consumer Checkpoint Plan, we prioritise and ignite the touchpoints
behaves as a shopper and how retailers approach the to trigger the purchase. Activating touchpoints is the
category and brand. single biggest investment most brands make today. An
insight based approach to identifying the touchpoints that
OgilvyAction has seasoned shopper and trade marketing will work for brands in a recession will be the difference
experts to leverage the global Ogilvy network. We also between good ROI and a lost opportunity.
have the tools to generate powerful insights in each stage
of our Checkpoint planning process. The breadth of our The Last Mile tool structures the shoppers journey to
network is engaged in planning and strategy for FMCG, identify where the best touchpoints are, and those we
consumer durables, luxury brands and retailers around need to ignite first.
the world.
Some touchpoints will help build brand awareness
The process we use may appear simple but we apply it on the journey, while others will physically trigger the
rigorously to generate exciting and effective activation purchase in the store. No matter what the role of each
solutions. We probe to understand shoppers and how touchpoint is, we tie them together on the shoppers
they shop different categories, channels and retailers. journey to generate more sales for our Clients brands.
Then we apply that understanding to generate insights
Figure 2: The Last Mile
that create activation events, which bring brands and
retailers together.
So how do we influence shoppers along their path to purchase in The Last Mile?
Figure 1: The planning process
CONS
UMER
to SHO
PPER
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shopper research is highly valued given the potential 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
to influence shopping behaviour. Manufacturers that
Increase more than 5% Increase 0-5% Niether increase or decrease Decrease 0-5% Decrease more than 5%
are able to help retailers understand their shoppers
behaviour will influence the in-store activation (Source: The Deloittle OMA Report 2008, USA)
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