In this presentation, Peter Krieg offers five ideas to shopper marketers for improving the effectiveness of their shopper marketing programs.

1. Transformational
Shopper Marketing Strategy
March 13, 2012

2. Who Am I
Peter Krieg
President & CEO
Copernicus Marketing Consulting and
Research
President & CEO
Copernicus Marketing Consulting and Research
Author
3 books and numerous articles on marketing and
improving business performance.
Obsession
Helping clients achieve transformational results
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3. PETER KRIEG, President & CEO
(203) 831-2373
Peter.Krieg@copernicusmarketing.com

4. The New Marketing Landscape
 Off-line Media  Multiple devices
 Digital Campaigns  Multiple Channels
 Social Media  Digital Out-of Home
 Mobile Strategies  In-Store networks
 Websites/Micro-sites
All converging into single “Cloud”
All changing daily
Producing Thousands of Ways to Make (and Squander) Money
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5. What are “Shopper Insights”?
Field Guide
1. Who is “the Shopper”?
2. Where is his/her nest and territory?
3. How does s/he roam in her territory and when is she
vulnerable?
4. When and Where does s/he go when she’s ready to eat?
5. What traps will ultimately snare him/her?
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6. What are “Shopper Insights”?
Field Weaponry
 Media Strategy  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy
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7. 1. Who is the Shopper?
Many studies segment users More studies should be done among
purchasers
 Certainly the right approach for product  Certainly better for marketing and
and portfolio planning communications planning
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8. 1. Who is the Shopper?
Develop a Meaningful, Profit-Directed and Actionable Segmentation
CREATE
Hundreds of
Variables
1. Category TEST
Involvement
2. Attributes Desired in To identify
Product Category
characteristics PRODUCE
3. Purchase Process/ Optimal
Channel Preference of people who
are profitable Segmentation
4. Demographics
5. Links to Media Habit for your
Panels BRAND
6. Links to Household
Panels
7. Links to Marketing
Databases
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9. 1. Who is the Shopper?
In TV Study, Five Segments Emerged…
Scientific Impulsive Calculating Accommodating Frustrating
Different Demographically
Different Attributes Desired
Very Different in Shopping Process
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10. 1. Who is the Shopper?
Using “predictive” characteristics to define segments leads to clear targeting.
Likelihood to Buy Client Brand Potential ROI
% of Client’s
17% % of Buyers Potential Business
22%
11% 44%
19%
6%
4% 16%
3%
27%
18%
10%
25% 9%
10%
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11. 1. Who is the Shopper?
Identifying an actionable, and financially-optimal target affects everything you do.
 Media Strategy  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy
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12. 2. Where is his/her nest and territory?
By having “links” to databases, can easily track down the Shopper
Media Marketing Customer Sales Households &
Panels Databases Databases Prospecting Neighborhoods
BEST BUY
# 204
American
X
Idol ................ Y
The Office…..
X Y
Dancing
with Stars…... X Y
Etc.
• Algorithms to • Algorithm to • Algorithms to • Easy-to-use  Algorithms to
identify classify every classify client’s classification identify high
segments in household in customers tools (and density zip
U.S.A. “scripts”) for codes
MRI, Simmons
and Carat’s CCS sales associates
to use.
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13. 2. Where is his/her nest and territory?
Proper linkage to databases affects:
 Media Strategy  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy
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14. 3. How does s/he hunt and when is s/he most vulnerable?
The Shopper “Journey”
1. What triggered the search/shopping?
The Inspiration
2. Marketing “Touch points” Experienced
– Other “Influencers” consulted?
The Exploration 3. Receptivity Analysis
– “Moments and Mindset”?
(“Learning”)
– Underlying motivations?
4. Is the “Journey” ever aborted? When? Why?
The Execution
5. Which brands “survive” each step?
(“Shopping”)
– When is brand decision made?
– Before store or at store?
The Post Mortem 6. “Advocacy” at the end?
(“Post-tailing”) – For which brands?
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15. 3. How does s/he hunt and when is s/he most vulnerable?
Qualitative Approach Quantitative Approach
(Ethnography) (Diary)
Pros Pros
 Deeper understanding  Can quantify ROI of specific information
 Effective to show to marketers  Validity
Cons Cons
 Validity?  May need qualitative is pre-requisite
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16. 3. How does s/he hunt and when is s/he most vulnerable?
Ethnography Example: Paint Study
Catalyst
Talk to friends
Info Search… See TV show
If plan to for a “look,” style, etc. Read magazine
Web search
use same
contractor/d
ecorator/ Consult Visit ANY Store:
designer Decorator/Designer First Pass at Color Choice
Screen/Select Contractor
Review fan decks from Visit paint store - contractor
Contractor/decorator of desire may/may not suggest
• Get color samples
• May be same decks as earlier • Talk to sales associate
Wait for job to start. During this time:
• Show color preferences to friends and spouse
• Match color to drapes, rug, etc. (or visa versa)
• Possibly, expand project
Back to store
• Get more samples
• Talk to SA again
Do painting
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17. 3. How does s/he hunt and when is s/he most vulnerable?
Diary/Survey Example: TV’s
%
Single Exposure
Looked at Client Brand in stores only 24
Saw/Heard/Read Advertising only 6
Visited website only 3
Double Exposure
Different
Saw/Heard/Read Ad + Looked in stores 19
Types of
Saw/Heard/Read Ad + Visited website 3 Exposure
Looked in stores + Visited website 6
Triple Exposure
Saw/Heard/Read Ad + Looked in stores +
Visited website 15
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18. 3. How does s/he hunt and when is s/he most vulnerable?
Diary/Survey Example: TV’s
Effect of Type of Exposure on Probability of Purchasing
47%
Store exposure = Big Impact 44%
Web exposure = Modest Impact 34%
Ad exposure = Small Impact 27%
6%
Ad only Store only Store + Ad Store + Web Store + Web + Ad
Level of Exposure to Client Brand
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19. 3. How does s/he hunt and when is s/he most vulnerable?
Ability of Advertising to Drive People to Web/Store
Saw Client Ad
Total Yes No
(100%) (34%) (66%)  Ads DO drive people to look
more closely
Visited Client Website 24 34 17  But, does it drive enough
Saw Client Product in people to pay out?
Store 43 54 34
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20. 3. How does s/he hunt and when is s/he most vulnerable?
Don’t forget to enlist some Shoppers to be Sellers/”Advocates”
“Brand Advocates” are a small, but highly engaged
and influential, group of customers
 Typically representing 5-10% of the customer base
 A strong emotional connection with—and affinity
for—your brand. Like they work for you.
Yesterday Today
Yesterday Today
They have always been valuable because they are
influential. But they are much more so today
because of their reach, the speed with which they
can influence, and the tools at their disposal to
influence.
 Can “drive” for 20% to 30% of total sales
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21. 3. How does s/he hunt and when is s/he most vulnerable?
Understanding of Shopper’s Journey affects:
 Media Strategy  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy
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22. 4. Where does s/he go when she’s ready to eat?
So many products can now be purchased in so many different places!
Share of Purchases at Retail Channels
Supermarket 21%
27%
46% 41%
Mass Merchandiser 60% 17%
63% 12%
77% 75% 1% 1%
3%
Super Center 8%
14%
14% 1%
Warehouse/Club 2% 13% 42%
11% 11%
13% 1% 43%
1%
Drug Store 2%
1% 6% 1%
6% 1% 20% 25%
0% 11% 14% 26%
Specialty Store/Other 14% 4% 5% 5% 16%
6% 9%
3% 3%
Food Beverages Cleaning Paper Pet Food Personal Care Health Care Beauty Care
Products Products Products
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23. 4. Where does s/he go when she’s ready to eat?
You’re P&G: You WANT him/her to buy everything!
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24. 4. Where does s/he go when she’s ready to eat?
Inputs to
Occasion
Segmentation
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25. 4. Where does s/he go when she’s ready to eat?
Segmentation of Shopping Occasions
4 Recent Occasion #1
Occasion #2
When: _________
Occasions Where: ________
Occasion #3
When: _________
Needs: ________ Occasion #4
when bought Where: ________
When: _________
WithNeeds: ________
who:_______
Where: ________
personal care
When: _________
Buy With who:_______
Personal Care:_______
Needs: ________
Where: ________
X 2,000 Respondents = 8,000 Total “Occasions”
What brand:________
Buy WithNeeds: ________
Personal Care:_______
who:_______
products What brand:________
Buy With who:_______
Personal Care:_______
What brand:________
Personal Care Prod:_______
What brand:________
Cluster Analysis of Occasions
2. “Social Splurge 3. “Spontaneous 4. “Great Sale 5. “The Drug 6. “Personal Care
1. “Weekly Shop”
& Spoil” Browse” Trip” Stop” Trip”
     
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26. 4. Where does s/he go when she’s ready to eat?
% of All Key Categories
Personal Care % of All
Purchase Personal Key Skin Oral
Occasions Care $ Channels Shampoo Care Care Fragrance Etc.
Weekly Shop 30% 14% Supermarkets  
Social Splurge &
Spoil 13% 19% Mass/Club 
Spontaneous
Browse 9% 9% Mass  
“Great Sale!” Trip 9% 9% Supermarkets 
The Drug Stop 16% 20% Drug  
Personal Care Trip 23% 29% Mass/Drug  
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27. 4. Where does s/he go when she’s ready to eat?
Understanding of purchase occasions affects:
 Media Strategy  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy
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28. 5. What traps will ultimately snare him/her?
What In-Store Communications Work? The “Last 3 Feet”
 = Shelf talkers
 = In-store TV
 = Circulars
 = End-aisle dump
 = In-cart ad The “First Moment of Truth”
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29. 5. What traps will ultimately snare him/her?
Another kind of “store” to Navigate
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30. 5. What traps will ultimately snare her?
Illustrative Case
The Perfect Fit Hate-to-Shop Gifters Price Pilgrims Browsers
High Low
Spend Spend
On-Line On-Line
Featured “Deals”   
New Product Features  
“Compare” Tool 
Return Policy  
Store Locator/Interaction 
Customer Service Hotline  
Breadth of Selection  
Customer Reviews 

31. 5. What traps will ultimately snare her?
Deep understanding of the “last few feet” will affect:
 Media Strategy (In-Store)  “Scale”/Cross-Selling Programs
 Website  Promotion Strategy
 Assortment  Packaging Strategy
 Messaging Strategy  Shelf Sets
 Sales/Customer Strategy

32. In Sum
Marketing is increasingly complex.
The best approach is to follow—and continually entice—the consumer.
It all starts with identifying financially-optimal, and actionable, target.
1. Who? 2. Where? 3. How? 4. When? 5. What?
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33. Mark Your Calendars!
Wednesday, April 25, 2012
On-Line Shopper Typologies:
Segmenting Your Web Channel Users
Eric Paquette
Senior Vice President
Copernicus Marketing Consulting and Research
Register Now: copernicusmarketing.com/webcasts
Wednesday, April 25, 2012

34. Call or Write If You…..
• Would like a PDF of this presentation
• Our white paper on the topic
• Have questions about this presentation or
Copernicus
Send an email to:
ami.bowen@copernicusmarketing.com
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35. PETER KRIEG, President & CEO
(203) 831-2373
Peter.Krieg@copernicusmarketing.com