In anticipation of Shopper Insights in Action International next week, Campofrio Food Group (CFG) Customer & Shopper Director Luis Fernandes sat down for an interview with The Research Insighter podcast series to discuss how shopper insights are evolving at Europe’s leading manufacturer of processed meat products.
Fernandes noted that, compared to other FMCG categories, the processed meats industry is relatively immature when it comes to shopper marketing and understanding what drives shopper behavior.
He’s on a mission to turn that around.
In this episode of The Research Insighter series, Fernandes reviews his efforts at Campofrio focused on:
- Partnering with retailers to develop robust category insights
- Understanding trip missions
- Decoding the path to purchase, and more!
Editor’s note: Luis Fernandes will present “The Successful 360º Launch of Campofrio’s Cross-Category Healthy Range” at the 4th Annual International Shopper Insights in Action Conference taking place November 3-5 in Edinburgh, Scotland.
For more information or to register, please visit www.shopperinsightsintl.com
ABOUT THE INTERVIEWER
Marc Dresner is IIR USA’s sr. editor and special communication project lead. He is the former executive editor of Research Business Report, a confidential newsletter for the marketing research and consumer insights industry. He may be reached at email@example.com. Follow him @mdrezz.
Imagine the mildly bored CEO of a fashion sportswear chain as I tell him that 74% of his shoppers never interact with products hanging high on the wall. Now, picture his eyes popping open as we watch a video clip of a teenager dressed in pink jumping up and down as she unsuccessfully attempts to select a 50 Euro sweatshirt and finally says, “So frustrating. It makes me never want to come back to this store.”
So often in shopper work, the numbers are right and should say it all, but fail to get through to stakeholders and trade partners. We humans need stories to put numbers in context, to remember what they mean and to convince other people.
Shopper marketing is a commitment to working with other people. How often does someone in your team come to you with a question such as “Why are shoppers not engaging with our brand at shelf?” or “If shelf layout is a major barrier to conversion, how to fix it?” “Is 47% at-shelf conversion good?”
in•sight [ˈinˌsīt ] n. The capacity to gain an accurate and deep intuitive understanding of a person or thing.
In our companies, stakeholders often have many years of experience with sales data, brand tracking, IPD, pack and advertising testing, and have developed the intuition they combine with facts to make decisions. Intuition allows people to connect the dots, put findings into context, view statistics critically and ask better questions. However in shopper marketing, many stakeholders are unable to do this.
“Information isn’t knowledge.” Albert Einstein
In Shopper, storytelling (=connecting the dots!) is so urgent because so many people need help in understanding the why behind the what. Many of our traditional models depend heavily on rational decision making. However, Kahneman, Thaler, and Cialdini have taught us that people rarely make rational decisions: most of what we do, we do unconsciously. Looking only at conscious-driven behaviour is therefore not effective.
We need to make shopper understanding less technical and more human. This is where qualitative work comes in. Conducting qualitative research in shopper is essential, and it’s essential to do shopper qual right.
We all know that good quantitative shopper research requires shopper expertise. Hopefully, this is who you choose to partner with. Similarly, the qualitative work you do should be based on an understanding that people are notoriously unreliable witnesses to their own motivations and behaviour, and that what they do in a situation is shaped by a variety of contextual influences that are hard to articulate. Talking to people provides an incomplete picture, and qualitative shopper work requires that we get as close as possible to real behaviour in real contexts.
This can come from live observation or video records, and also from a growing range of technology-enabled methods like life logging, mobile diaries or mobile in-situ research which offer deeper understanding and powerfully convey what today’s shopper is experiencing. Well executed qualitative research not only provides a more textured and human account of events, it also weaves together different threads in a way that help reframe issues and remove blind spots. It provides a view of the bigger picture and fosters the fundamental human understanding necessary for long-term strategic thinking.
The image of a pink girl jumping to reach a sweatshirt might be just what you need to transform the way people see Shopper marketing: it’s a capability, not a project.
ABOUT THE AUTHOR
Lee Smith, TNS
Global Director, Retail & Shopper (Quant)
Lee started doing in-store observations, interviews and video work in 1994 before ‘shopper’ was known as a discipline. She has since directed hundreds of projects for leading consumer product manufacturers and retailers in almost every kind of store all over the world. Before joining TNS in 2010, Lee spent nine years at Envirosell and seven years in her own firm, instorefactor. What she enjoys most about shopper research is understanding its role along societal changes and helping clients discover the practical aspects it offers to growing business.
Lee will take us through GETTING INSIDE THE MODERN SHOPPER’S MIND next week at the International Shopper Insights in Action 2014 event. Combining digital technologies with qualitative research offers deeper views into the modern shopper’s day and decision-making process. Engaging approaches, such as the use of wearable technology with cognitive interviewing, give us richer shopper understanding, provide detailed narratives of shopper behaviour that may otherwise have been difficult to access, making it easier to win internal and external stakeholders’ commitment to shopper marketing. We hope to see you there.
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About the Author:
Ryan Polachi is a contributing writer concentrating his focus on Marketing, Finance and Innovation. He can be reached at rpolachi@IIRUSA.com.
Is shopper marketing impactful enough?
Are you interested in understanding how companies are integrating Shopper thinking into their organisations? It’s not too late to find out. Your insight is incredibly important to us and the industry.
Participate in the Kantar Retail Shopper Marketing Power Survey
Join other industry experts by clicking here to take part in our short survey and you’ll be automatically entered into a prize draw to WIN a brand new iPad mini. Entries must be in by end of the day on Tuesday, 28th October 2014. We appreciate just 5 minutes of your time to complete our short survey.
The results will be shared with you following The International Shopper Insights in Action Event in a couple of weeks in Edinburgh. If you haven’t booked your place to attend yet, tickets are still available. Join us in Edinburgh this November and help build the future of retail with your industry together.
In the spirit of #ThrowbackThursday, we’re opening the vaults here and offering you another chance to play back our live chat with Siemon Scamell-Katz, a leading expert in shopper behaviour and David Roth, CEO of The Store – WPP, which sheds light on consumer and shopper habits and what prompts their behaviour.
From the result of 20 years of pioneering research, Siemon shares thoughts for using shopper understanding to create strategies for growth in developed and emerging markets. In his new book, The Art of Shopping: How we Shop and Why we Buy, Siemon examines how well we really KNOW the shopper, questions the formalized decision-making process, the role of the retailer and advertiser and gives some thought to the future of retail. In this free webinar, you’ll learn:
- How the latest learnings from neuroscience illustrate the realities of decision-making
- How consumer and shopper insight can link together to create maximum impact at the point of purchase
- What retailing will look like in 2020, particularly how off and online will migrate
- The future for brands in that new world
One of the key notes at the Shopper Insights In Action event by IIR@IIRUSA will be Radio Shacks vice president Mr de Fazio presenting Radio Shack’s new store concepts. They have now launched interactive pilot stores in the Washington DC area that have spaces where shoppers can interact with head sets and speakers. Also they will talk about a store and shopper segmentation they have done to support this process. This will be an interesting case to follow because many traditional retailers are struggling with the balance between two worlds. First, an interactive and appealing store experience which requires up to date models of the latest gadgets that work, and staff that understands them better than the well prepared shoppers. Second: the need for a competing price despite the more expensive store concept. Of course presenting products and advice like this is an expensive retail model. Also it is difficult to keep it on the edge. Often shoppers are facing plastic prototypes or store staff does to want to unpack a latest model phone to show it to a shopper. Most shoppers have read reviews and test reports and know a lot about the model they are asking the staff about. They don’t want the staff to read the box to answer their questions. Interactive store concepts have been around for decades already. The challenge for radio Shack will be to give it new meaning and not lose shoppers along the way with under trained staff and too high price premiums. There needs to be a clear fun and sharing element which is missing in most store concepts, sharing needs to be about new technology that adds learning experiences to shoppers and gives them experiences not seen on the internet. Staff needs to have real knowledge about all products and have a fun way of sharing this with shoppers, and there needs to be well designed extra offers of related hard or software to make the products attractive and still profitable versus low priced internet deals. Let’s see if Radio Shack is up for the challenge!
Retailing, and supermarket retailing in particular, is going through a period of real change. People have always chosen their supermarket predominately because it was the most convenient.
The problem now is that the definition if convenience is changing radically.
Change leaves us with important questions to answer like:
• How will you respond?
• What are the key trends all retailers face?
• What is the future likely to hold?
Find out what Sainsbury’s Supermarkets is doing to address these trends and leave with real takeaways you can apply to your own business at The International Shopper Insights in Action Event.
“At a time when consumer shopping habits are changing more quickly than ever before, I am looking forward to share my perspective as to what retailers need to do to meet these customer needs, and share a little detail as to how Sainsbury’s are reacting to this changing world.”
- Kevin Barrett, Director of Space and Formats, Sainsbury’s Supermarkets
Plus, go back to the office with insider information on:
• How retailers can stand out in an increasingly competitive market
• Leveraging decision science to influence shopper behavior
• CRM capabilities
• Psychology of online persuasion
• Maximising retail opportunities digitally
• Closing the purchase decision gap through shopper centricity
• How a small amount of insight beats an ocean of data
• Winning category vision
• Location-based services
• Turning shoppers into buyers
These are just some of the topics to be discussed and case studies to be shared across 4 days of a cross-market agenda.
Join 250+ attendees from the world’s most influential FMCG Suppliers and Retailers across 35+ countries to drive both your shopper and retail strategy forward. Get involved!
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About the Author:
Ryan Polachi is a contributing writer concentrating his focus on Marketing, Finance and Innovation. He can be reached at rpolachi@IIRUSA.com.
While SABMiller launched its first fruit flavoured beer in South Africa this year, Flying Fish – available in orange and lemon flavours, it has become a top player in the category through innovation around the world, in over 90% of their markets.
Recently they have started a new collaboration with their retailers and applied two main principles: triple win and cross-functional collaboration. Utilizing recent work with Tesco, they’ve put together a case study that demonstrates how they brought more excitement into the beer shopper’s world.
We spoke with Jan Solta, Shopper Marketing Manager Off-trade at SABMILLER who filled us in what works for this category and how they collaborate with Tesco:
What trend, discipline or school of thinking has had the most influence on the way you think about retail strategy (and why and how)?
The most influential to my thinking was my former trade marketing boss who introduced me into the world of the shopper insight and showed me how to translate it into impactful shopper based triple win strategies. Today, the shopper insight plays the crucial role in our retail strategies.
To what extent has mobile technology affected how you market to the shopper (as opposed to the consumer) and/or conduct research around shopping? (Any anecdotes or specific examples you can provide?)
So far the mobile technology does not play a big role in our shopper activations.
It is caused mainly by the fact that ecommerce is not very much developed here in the Czech Republic.
We test and learn with Tesco who is the only one retailer providing ecommerce today.
As the mobile technology is wide spread among consumers our brand marketing focuses on digital very strongly and we try to find ways how to be part of it.
The mobile technology also helps us to find new opportunities in the market and to improve our in-store execution.
How has the proliferation of channels and touch points affected how you engage shoppers? What are you doing differently as a result?
As our resources are not unlimited we had to learn much more about the shopper’s behavior in the store so we could invest into the right touch points with the best possible impact.
Today we know much better which touch points are the most powerful, which POSM work the best and how shoppers read our communication so our messages are delivered.
In the video below, Alan Clark, Chief Executive of SABMiller, celebrates some brand highlights, and shares the brand stories which have underpinned their success
We invite you to Taking the Beer Category Further with Jan Solta, who will share how SABMiller collaborates with retailers and applies two main principles: triple win and cross-functional collaboration. Discover how to apply your category vision into life, fostering a joint collaboration with your retailer where everybody wins, and shopper based activations that build a highly saturated category at The International Shopper Insight in Action Event taking place 3-5 November in Edinburgh.
‘Matching Luggage’ is what the client was implying, she was a senior marketer looking after one of the largest brands in Europe, and she was describing her approach to shopper marketing. The client was about to invest heavily in shopper marketing and we were doing a number of stakeholder interviews to benchmark them at the start of that project. She went on ‘It’s was about negotiation with Sales to get the best deal’. If she paid for promotions in store she was ‘damn well going to make sure her advertising was on the point of sale’ she said… and that the brand was consistent and all over the fixture…It was the way I was brought up… Reminding the consumer of the brand, about getting the advertising message across, it’s about consistency…’
As a Marketing Director of 15 years I perhaps would have agreed with her, I once had a similar mindset. Shopper marketing was really just a way of spinning sales promotions to get your brand message across and compensate for the increasing cost of TV. It was tactical; the time horizon of the plan was 12 months tops and only with those accounts you had a ‘joint business plan’ as a way of getting them on your side, as was being flexible fitting into their campaigns, as long as you got your brand message across there was no harm.
In fact as it was so tactical it was often given to the junior member of the team to sort out and ‘cut their teeth on’, just like brand extensions and minor pack designs. TV and consumer understanding were really what made a difference, created value and had a longer time horizon. That was where you changed behaviour, delivered growth and value.
So ‘same on the TV, same on the shelf’ i.e. ‘matching luggage’ is what ‘shopper’ is about to many in Marketing. This supposition ignores the fact that the shopper is often not the consumer; that the mindset of shopping is very different and the shopper spends time, money and emotional currency as they battle to find solutions that are relevant; that their behaviour is affected by many influences that do not affect the consumer. If these are not met or known their behaviour cannot be changed, the product cannot be bought and it cannot be consumed. If that goes on long enough you do not get paid!
This is why we believe that the ‘Physical Availability’ of a brand is not just about making sure the shopper ‘trips over’ it but that the choice is framed in relevant, easily understood, motivational and emotional ways. Shopping affects, contributes to, and builds ‘Mental Availability’ for a brand. Only when the ‘Mental ‘and ‘Physical’ availability overlap will there be a sale. Only when it is done with emotion and relevance will it be repeated over and over again by many. Shopper marketing is therefore very strategic.
So what about ‘Marketing’, how do you get to change their behaviour? After all the ‘consistency’ paradigm runs very deep. Well, like most aspects of behavioural change it is about reframing the problem. Consistency does not mean uniformity. After all if a person had exactly the same approach (tone of voice) to everyone they met, in every situation they encountered, then you would be a bit concerned about their mental health. If you believe in ‘brand personality’ why would you subscribe to this version of consistency? It has to be to mean ‘integrity’ in its truest sense. It is the ability to flex your communication situationally whilst still being true to your core values.
That’s all well and good but how do you get that message across to ‘Marketing’ simply, in a way to get their real engagement and bring their real skills to bear. Well we have found reframing ‘Shopper Marketing’ from a matter of promotion to one of media helps for them. ‘Marketing’ is used to seeing ‘Media’ as strategic and important. It is where a lot of money gets spent. It is how you change behaviour. Targeting and gaining insight into the viewers and their motivations are paramount. Making sure you appear in the right place, with the right advert, with the right message is vital. Making sure the program or context that the advert is consumed within is appropriate is second nature. It is not ‘hit and run’ activity but about a planning a long lasting campaign, with the best running years not just weeks.
For all just listed you can read channel, retailer, facia, adjacencies, shelf position, pack type, shopper mission, shopper solution being bought for in terms of consumer needs and occasions, shopper, significant budgets and campaigns designed to change real behaviour. It is about owning an idea (a solution) in the mind of the shopper over many years and ahead of anyone else. ‘Shopper ‘really is media choice. All these choices affect the performance of the brand both in terms of ‘Mental’ and ‘Physical’ availability. They affect sales.
So ‘Shopper Marketing’ is not just about ‘matching luggage’ and is definitely not just a tactical discipline.
It’s strategic; it’s about understanding the audience and changing their behaviour. What you choose to sell, where, to whom, why and how you do all impact the brand and its meaning. Shopper marketing is about framing these choices and making a difference. So taking the media analogy to heart then there is perhaps no better person than Marshall McLuhan, to summarise, who famously said that ‘The medium is the message’.
Richard Tolley, Director of Consulting and Joint Consumer and Offer Lead, Kantar Retail Europe
Richard joined Kantar Retail in 2012 working in the Consumer Shopper practice bringing with him over 23 years’ experience, mainly in Consumer Packaged Goods, through working for companies such as Unilever, Kraft General Foods, Mars and a couple of local champions such as Dairy Crest and Northern foods in the UK.