The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
VTD - Shopper Marketing - CMO Conference
1. 4/25/2013
1
Shopper Marketing in Vietnam
Mobile Retail
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Vu The Du, 26 April 2013, CMO Conference
Snap shot on Vietnam Retail
Mobile Market
• 1.5B US$ Market
• 16.000.000 Units/year
• 14.000 retailers
• 50% by ORG stores
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Definition
“Shopper Marketing is the
employment of any marketing
stimuli designed to build
brand equity, engage the
shopper, and lead her to
make a purchase.”
(Deloitte’s 2008 Delivering the Promise of Shopper Marketing)
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(source: AMA)
Marketing with in-store initiatives
to close the deal
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360 degree of shopper and
consumers
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Source: 2008 Deloitte/GMA Report: Delivering the Promise of Shopper Marketing
A Path to Purchase
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Consumer Shopper Buyer
Demand Buy
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A Path to Purchase
Shopper Insight
Consumer Insight
A key channels of the path to
purchase
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Push vs Pull Strategy:
Which is more effective?
15
Retailers Brands
Decline in media effectiveness
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Multi Media
Platform
Time shift
viewing
Message
Overload
More Demanded
Consumer
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Who Do You Trust?
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25% Advertising
70% Strangers with
Product experience
84% Online customer
evaluation
90% Friends who used
the products
(Source: Edelman Trust Barometer, US Consumer survey, 2010)
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Ad spend wasted if you don’t
deliver at POS
April Redmond, Visualize Shopper Marketing Seminar, 2011
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Why Shopper Marketing for
the Consumers
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Shopper
22
(Source: various sources)
78% Learning new items
76%
Seeking
pleasure, experience, fulfillme
nt
70% Shelf Decision
Brand Loyal5%
26% Store Loyal
30’
Duration in store
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Shopping Duration in
Vietnam Mobile phone store
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(Source: BMC Survey 2013)
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“They may ignore media but they will
always arrive at the point of
purchase”
(Source: Shopper Marketing Magazine)
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Why Shopper Marketing for
the Retailers
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Retailers
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• Differentiation
• Shopping Experience
• Loyalty
• Store traffic
• Private brand
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Why Shopper Marketing for
the Manufacturers
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Brands
• Consumer’s Demand
• Competition (category, private label)
• Retailers’ demand (brand identification, Less
shelf space, Clean store policies)
• ROI
• Relationship (with retailers)
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Companies engaged in successful
Shopper Marketing are
consistently delivering ROIs of
4-5:1
On their shopper-based initiatives
- The Hub 2011
Sweet Spot in
Shopper Marketing
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Shopper
BrandsRetailers
Sweet Spot
Motivate shopper to
buy the brand
Create consumer
demand for the brand
Motivate retailer to
support the brand
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PLAN Facts: Vietnam
Mobile Retail Consumers
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88% Research before
buying
62% Digital research
(Source: BMC Survey 2013)
78% Purchase decision
made before
70’ Research duration
Shopper Marketing Model:
the PLAN factors
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Online
browsing
(mobile
web)
Product
brand
communic
ation
(ATL, BTL)
Previous
Experience
WOM
Experts
Blogosphere
Print
media, Cat
alogue
Opinions of
friends, coll
eague, famil
y
Direct mail
from
retailers, br
ands
Targeted
coupons
(loyalty
cards, mail
list…)
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Shopper Marketing Model:
the PLACE factors
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Product
samples, d
emo class
Store
specific
positioning
Store
ambience
Product
Stock
in Store
media
Store
circulars, fl
yers
Info
desks, broa
dcasts, kios
ks
Product
packaging
Planogram
Sales
assistants,
Service
Price, Prom
otion, gifts
POS
display, PO
S action
(events, co
ntest)
The 4th
Place
MOB
Media
What characteristics do you
dislike most about the store?
38
Không có hàng
Nhân viên bán hàng
không ki n th c
Không có khuy n mãi
Giá trên m ng khác
giá c a hàng
Khuy n mãi trên m ng có
c a hàng không có
M t hàng nghèo nàn
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What characteristics do you
like the store to do?
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Tr góp u ãi
BH Nhanh chóng
Thanh toán nhanh
Nhân viên hi u bi t,
Ân c n
Khuy n mãi nhi u
Trang trí hi n i
Cài t ng d ng
nhanh
N i dung web
phong phú
NV không
eo khách
Giá h p lý D ch v t v n qua i n tho i
Shopper Marketing Model:
the PURCHASE factors
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Product
experience
gratifica
tion
Mobile Aid
Simpler &
Strong
message
“Smart
choice”
Promotion,
top selling
POS
display
Sales
Support
Price check
Similar
Product
segment
Differentiate
planogram
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Why you don’t buy the brand
you plan before in the store?
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What the Retailers and Brands
should do?
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Shopper
BrandsRetailers
Sweet Spot
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Mutual benefits for Both
Retailers and Brands
Shopper
Base
Conversion
rate
Shopper
trip
Invoice
salex x
x
Collaboration between
Retailers and Brands
50
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53
Retailer profit (31%)
Unit sale (42%)
Retailer revenue (25%)
Brand revenue (15%)
Unit sales (13%)
Retailer revenue (15%)
Retailer profit (4%)
KPI CONFLICT
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What is the
Shopper Marketing
Strategy Model?
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Shopper Marketing Strategy
Model
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Get to know
yourself
Get to know
your market
Get to know
your retailer
Get to know
your shopper
Define SM
Strategy
Execute &
Measure
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Shopper Marketing Strategy
Model
Get To
know your
shopper
•Define required
insights
•Collection of
internal existing
data
•Shopper
research based
on insights
needed
•Shopper
Segmentation
•...
Shopper
Demands, Shopper
research
methods, Shopper
Barriers
Get to
know your
Retailer
•Retailer strategy
analysis
•Performance
analysis
•Identify key
contacts
•Identify key
processes & way
of working
•...
list of strategic retail
partners, Category
role per retailer, key
priorities and
opportunities
Get to
know your
market
•Competitor
SWOT Analysis
•Competitor
portfolio
assessment
•Define Category
Role
•...
Ranking of
competition &
products, Category
role
Get to
know
yourself
•SWOT analysis
•Portfolio
Assessment
(BCG Matric)
•Product life
cycle analysis
•P&L analysis
•...
Commercial
Strategy, company
capabilities, Product
strategy
Execute &
Measure
•Define activities
•Set action plan
•Identify involved
departments &
key stakeholders
•Set Backtimings
•Identify KPI’s
•...
Improved business
results, continuous
learnings
Define
Shopper
Marketing
Strategy
•Define action
plan for each
specific retailer
based on the
needs of all
parties
(company, retail
er & shopper)
involved
•...
Clear & Executional
Shopper Marketing
Strategy
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For Shopper Marketing
Strategy to work
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… or heading in different direction
Are you working together with your
partner …
… or leverage your joint potential?
Are you struggling walk in your
partner’ shoes …
60
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You cannot just absorb
other people¸s
knowledge…
Solving collaboration problem
¹It¸s not what you know, it¸s how you know it.º
…you can only
create your own.
PROGRAMS
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Benefits to your business
Speed of execution
• Increased speed to market
• Ability to compete
• Drive performance targets
Alignment
• Share vision and internal alignment
• Reduce silos
• Increased resource sharing
Engagement
• Build confidence and motivation
• Actionable
• Retain high potentials
What We Bring
How We Do
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• Cross functional communication
• Shopper Marketing Coordination
• Cascading of strategic plans & goals
• Product launches
• Re Branding
We Can Support in
• Sales conferences
• Regional management
conferences
• Kick off events & team building
• High potential training programs
• Strategic planning & Budgeting
roll out
• Dealer & reseller conferences
We Can Support when you
organize