Blueprint for a New Era: The Retail Commission on Shopper Marketing

Transcription

1 1 Blueprint for a New Era: The Retail Commission on Shopper Marketing Dr. Brian Harris, The Partnering Group Diane Wallace, The Coca-Cola Company Janet Sparkman, SuperValu

2 Objectives Commission Overview Progress Report Work To Be Completed Commission Member Perspectives Copyright 2009 The Partnering Group2

3 Shopper Marketing: In Theory a Simple Idea Collaborating as trading partners to market to both consumers and shoppers Copyright 2009 The Partnering Group3

4 It Means Different Things To Different Organizations Category Management Plus Next Generation of Co-Marketing In-Store Marketing Plus Marketing to Shoppers Merchandising focused Marketing focused Copyright 2009 The Partnering Group 4

5 But There Are Two Common Objectives Build and maintain loyalty to store and brand among targeted shoppers Win the 1 st two Moments of Truth : store choice and product choice Copyright 2009 The Partnering Group5

6 The Industry Needs a Common Understanding & Approach for Shopper Marketing In-store experience Customer marketing Commercial innovation Shopper cluster marketing Retail marketing & merchandising Private label marketing Copyright 2009 The Partnering Group 6

7 A Success Roadmap Common industry principles, definition and process Retailer driven and integrated into business practices Collaborative strategic shopper marketing planning Delivers real shopper value, improved experience Creates efficiencies and improved returns Organizational capabilities must be in place Copyright 2009 The Partnering Group7

8 Purpose of the Commission Define retailer requirements: strategic, operational, organizational Integrate Shopper Marketing into current business practices Establish new collaboration model for growth & shopper satisfaction Copyright 2009 The Partnering Group8

9 Commission Member Companies Copyright 2009 The Partnering Group 9

10 Strategic Advisor Companies 10 Copyright 2009 The Partnering Group

11 Copyright 2009 The Partnering Group 11 Commission Deliverables The Best Practices Shopper Marketing Report: Retailer-centric philosophy Best Practices approach for Shopper Marketing Capabilities required by retailers and suppliers Roadmap for retailers and suppliers to follow

12 Copyright 2009 The Partnering Group 12 Key Principles of Shopper Marketing 1. Shopper and consumer focused 2. Retailer sponsored and enabled 3. Delivers execution excellence 4. Driven by a collaborative process 5. Results in real shopper value 6. Creates efficiencies and improved returns

13 Shopper Marketing: A Working Definition* Shopper Marketing is the use of insights driven marketing and merchandising initiatives to satisfy targeted customer needs, enhance the shopping experience, and optimize business results for retailers and suppliers. * Continues to evolve based on input from Commission Copyright 2009 The Partnering Group 13

14 Copyright 2009 The Partnering Group 14 Collaborative Shopper Marketing Model Retailer Supplier Strategic Foundation Core Work Core Work Strategic Foundation Key Enablers Shopper Marketing Plan Key Enablers

15 Key Enablers for Shopper Marketing Strategy Process Excellence Best Practice Companies Information Systems & Measurement Organization Capability Copyright 2009 The Partnering Group15

16 Shopper Marketing Happiness Starts At The Shelf Diane Wallace Vice President Shopper Marketing Classified - Internal use

17 Across the Globe Shoppers consume Coca-Cola products 1.6 billion times/day Our retail world is more complex and competitive Our legacy will be to shape long term habits Classified - Internal use

18 We Believe

19 Our Retail Activation Must Convert Shoppers to Buyers System Leaders Commercialization Retailers/ Customers Brands Innovation Portfolio Strategy Shoppers Become Buyers Retail Activation Agencies Design Knowledge & Insights Insight Consumers/ Shoppers

20 Retailer Collaboration is Imperative Align Goals Connect w/ Shoppers Invest / Measure

21 Capability Under Construction Continuing to build the science of shopper insights Fine tuning in-store strategy and investment Building Shopper Marketing capability Sharing knowledge on global basis

22 Commission Foundation Critical Ensures alignment of focus with retailer Informs capability and overall shopper marketing direction Jumpstarts industry with common view and language

23 Happiness Starts at the Shelf Make shopping easy so that Coca-Cola brands can deliver on promise to Refresh consumers and inspire moments of optimism and happiness

24 Shopper Marketing at SUPERVALU Janet Sparkman Corporate Vice President Customer Strategy & Management 24

25 25 Where we are Startup following 2006 Albertsons acquisition Developed key segmentation models Focus is on building our activation framework Established Shopper Marketing team in Brand organization Currently delivering targeted , direct mail, loyalty card offers on a regular basis

26 26 What we ve achieved so far Three segmentation models across all key consumer touchpoints Marketing programming Merchandising and promotion Real estate/store design Operations 55 Million targeted shopper contacts and over 141 million manufacturer coupons delivered since March stores de-cluttered to improve shopping experience Currently working with 3 strategic partners on key aisle reinventions

27 27 Our Shopper Marketing Foundation is in Place VISION Establish and grow a proprietary enterprise-wide Shopper Marketing program that facilitates industry-leading innovation and ongoing vendor support. MINDSET ORGANIZATION STRATEGIC ALIGNMENT MEASUREMENT Shopper vs. product focus Insightdriven Core team of SME s supported by crossfunctional matrix Integrated Merch & Marketing planning Analytic capability to measure what and who

28 28 Shopper Marketing Objectives Drive SUPERVALU growth via incremental vendor funding Position SUPERVALU as a strategic investment partner by delivering a profitable return on vendor investment Standardize an enterprise-wide approach for vendors to invest incremental Shopper Marketing dollars Secure SUPERVALU position in Cannondale s Top 10 Shopper Marketing rankings within two years

29 Lessons Learned Timing of securing vendor funds Internal coordination between Marketing/Merchandising ROI expectations Coordination with Retail Operations

30 30 Building for the Future with Our Partners FY 11 Planning Kick-Off Meetings later this month Internal Meeting: mid-october Vendor Partners: late-october Focus on: Merchandising/marketing key objectives Program menu Tactical options

31 Retail Commission Action Plan Q4, 2009 Q1, 2010 Q2, 2010 In-Store Expo Commission Introduction Collaborative Process Development Strategic Advisory Company Discovery & Working Sessions Joint Commission Working Session Joint Retailer / Supplier Pilots Collaborative Process Finalization Final Report Publication In-Store Marketing Summit

32 32 Blueprint for a New Era: The Retail Commission on Shopper Marketing Thank You