the actual retailer (P&G piloted the program with large retailers such as Wal-Mart), MDOs worked to align P&G marketing activities with the retailer’s overall brand position.
With a demonstrated track record for shopper marketing, P&G set out to integrate shopper marketing into the rest of the organization. Advancements in measurement, execution and organization allowed P&G to make long-term improvements to the effectiveness and efficiency of shopper marketing.
Internal Commitment - ‘Commercial Innovation’ & Shopper Marketing Rotations
P&G elevated shopper marketing’s status by internally referring to it as a commercial innovation (i.e. any innovation that does not require a significant packaging or product change). This title placed shop- per marketing on par with product and other marketing innovations. P&G embedded the skill set in other parts of the organization by developing a shopper marketing staff rotation. This program ensures that marketing personnel have a solid understanding of the importance of shopper research and retailer collaboration.
External Collaboration - P.R.I.S.M.
P&G understands that shopper marketing requires a common language to be successful. P&G is helping create and publicly supports the P.R.I.S.M. project, a program designed to identify and develop a more standardized method for measuring in-store marketing effectiveness.
P&G’s journey through the lifecycle demonstrates that an effective shopper marketing program de- pends on many variables, including leadership support, a willingness to experiment with pilots and new programs, a commitment to quality insights, the use of innovative HR policies and team structures and the ability to partner and coordinate with retailers and outside agencies. P&G’s shopper marketing development process is not the only way to cultivate a shopper marketing program, but the company’s history and progress can serve as an excellent model and blueprint for other companies in the industry. It is important to note, however, that the development of shopper marketing needs to build on the foundations of a well-defined strategy and solid execution capability. P&G readily admits they have not yet reached end-state maturity, and the company is still working diligently to further refine and improve many key elements of its shopper marketing program.
Source: 2008 GMA/Deloitte Shopper Marketing Study Interview; pg.com; AMR Research; the Hub; BNET.com
Don’t Mistake Activity for Impact.
There is a Natural Lifecycle for Shopper Marketing.
Go Forward with a Map and a Sextant.
Overcome the Barriers to Genuine Collaboration.
Master Execution for Competitive Advantage.
Go Forward with a Map and a Sextant
Planning the Journey
Shopper marketing is not a fad, a tactic or a onetime exercise. It is a journey. As with any journey, companies need to have a clear idea of where they are going, how they will get there and a way to stay on course. Shopper marketing is not yet a mature science, so it is important to be thoughtful about strategy, infrastructure and measurement, but also to be flexible. The landscape is rapidly changing and competitive advantage is fleeting so the best shopper marketing companies recognize that there is no perfect strategy. They continuously re-assess their capabilities along with the business landscape, adjust their strategy, and act.
Charting Your Shopper Marketing Course
Chart Your Course
Prepare for the Journey
Calibrate Your Compass & Sextant
Implement and Assess Lifecycle
Step 1: Chart Your Course
Retailers facing channel incursions, store saturation, and customer switching need to differentiate their banners. Manufacturers facing consolidating retailer power, new prod- uct proliferation, and private label growth need to be more relevant to both shoppers and retailers.
Shopper marketing is, at its core, about driving relevance – to the consumer, to the shop- per, and to the retail partner. It is this relevance at the point of decision-making that impacts a shopper’s experience, and ultimately drives the sale, brand and banner loyalty. Relevance to the shopper also drives relevance to the retailer by enhancing the banner’s unique positioning in the minds of its target shopper segments.
Articulating where an organization can provide superior relevance begins with understand- ing where both partners’ strategies converge to meet shopper needs. Retailers need to understand the positions of each of their banners in the minds of their shoppers. Manu- facturers must not only understand the relevance of their brands to shoppers compared to competing brands, but also how their brands align with the positioning of their retail partners, and with the positioning of retailers’ private labels.
By analyzing where a manufacturer’s brand relevance overlaps that of each retail banner partner – and knowing where the advantage lies compared to competitors and private labels — it is possible to deliver truly unique win-win-win activations that delight shoppers, grow retail categories and deliver superior top line performance for the manufacturer.