Packaging, Shopper Marketing and the Retail Experience

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1 Packaging, Shopper Marketing and the Retail Experience Monica Lucas Part of the Pragma Consulting

2 Let me introduce myself Shopper insight Brand communication Retail effectiveness Powerful pointof-sale

3 Packaging is a potent medium

4 A strong in-store choice driver TV advertising Product innovation In-store promos Pack design Pack information Price Brand image Not important at all Very High Importance

5 Shopper Marketing The latest marketing buzz word? What s it all about?

6 Pioneered by Now a key focus for all the major brands

7 Decline in media effectiveness More channels Time-shift viewing Digital message overload Over-saturated consumer

8

9

10

11 A I D A

12 Pragma Consulting

13 Desire Action Interest Awareness

14 Create love Consumer buys

15 But ad spending is being squeezed bn Total UK Ad Spend (constant 2005 prices) Source: Advertising Association/Warc Expenditure Report

16 1

17

18 70% of purchase decisions made in store 68% are brand switchers

19 Retailer power 20 million Tesco shoppers per week 16 million peak X- Factor viewers

20 Tesco own brand: over half of sales

21 Key realisation... Consumers are not......shoppers

22 And so. Shopper Marketing was born

23 One of the three good fairies I drive retailer relationships and ensure the brand is well presented I get shoppers to make buying decisions and act upon them! I create awareness, brand engagement, and consumer desire TRADE MARKETING

24 The formal definition An alignment of all marketing stimuli, based on a deep understanding of the shopper (i.e. a consumer in shopping mode), designed to lead him/her to make a purchase

25 Marketing budgets are rapidly changing out of traditional media Expected Growth in Manufacturers Advertising and Promotions Mix (Average Annual Increase or Decrease over the Next 3 Years)

26 Need to understand the shopper journey

27 Which can be very complex... Need Brands disposition NTC recommen dations Peer advice/wom Purchase Experience know how Ask Mum! Nappies Doctors Price Finally bought one! Advertising Social media 2 brands in mind Sample Stand out on display

28 Neuromarketing Neurobiology Psychology Genetics Psychiatry Semiotics Ethnography

29 The brain converts subliminal stimuli into buying behaviour Emotions + Cognitions

30

31 Three basic neural drivers Stimulation Dominance Exploration Discovery Competition Assertiveness Security Stability Balance

32 Determine most human behaviour e=mc 2 Balance Curiosity Variety Enjoyment Stimulation Security Stability Uniformity Authority Power, Prestige Career Dominance

33 Which change over time Cortisol Dopamine Testosterone up to 20 years years years 60+ years

34 And determine key traits Stimulation fun art pleasure humour curiosity extravagance creativity Imagination / Pleasure sensuality fantasy sociability impulsiveness rebellion victory Adventure / Thrill adventurousnes s individuality tolerance flexibility friendship freedom spontaneity openness praise autonomy trust family loyalty comfort safety courage obedience tradition fame logic permanence power Order / morality Control reliability ambition pride functionality duty status Dominance effort discipline precision practicality Balance

35 The 7 key behavioural drivers Stimulation fun art pleasure humour curiosity extravagance creativity Imagination / Pleasure sensuality Fun and Creativity fantasy Pleasure and Openness sociability impulsiveness rebellion victory Adventure and Risk / Thrill adventurousnes s individuality tolerance flexibility friendship spontaneity openness praise autonomy trust family loyalty Harmony and Care freedom comfort safety courage obedience fame logic permanence tradition Tradition and Security power Success and Status Order / morality Control reliability ambition pride functionality duty status Discipline and Control Dominance effort discipline precision practicality Balance

36 7 key Limbic types Stimulation extravagance Imagination / Pleasure impulsiveness rebellion victory Adventure / Thrill Adventurer Order / morality Control Dominance power creativity adventurousnes courage art s status individuality curiosity spontaneity praise fame ambition Hedonist Performer effort fun fantasy autonomy pride freedom humour tolerance logic functionality discipline openness pleasure flexibility obedience precision Open-minded sensuality sociability Disciplinarian trust family loyalty permanence practicality duty comfort tradition friendship reliability Harmonizer Traditionalist safety Balance

37 Limbic Types 2011 Distribution in the UK population Data provided by:

38 Of course, there are gender and age variations

39 But broadly... Stimulation fun art pleasure humour curiosity extravagance Imagination / Pleasure sensuality creativity fantasy sociability impulsiveness rebellion victory Adventure / Thrill adventurousnes s individuality tolerance freedom flexibility spontaneity openness Older praise autonomy trust family loyalty courage obedience Women comfort tradition friendship safety fame logic permanence power Order / morality Control reliability ambition pride functionality duty status Dominance effort discipline precision practicality Balance

40 Limbic colour psychology Yellow Purple Red Orange Pink Gold Black Green Silver Blue Green Brown White

41 So, who are these most likely to appeal to?

42 The Shopper Marketing Friends Direct Pack

43 Shopper Marketing must start with deep insight of shopper mind set Knowledge? Occasion? Budget? Mood? Time pressure?

44 and provide the right solutions at the right time

45 A chance to win?

46 Save time and effort not shopping around?

47 Get points?

48 Feel you are doing good?

49 Save a child s life?

50

51

52 The rise and rise of Social Media

53 20 million Smartphone users in UK by 2012 Up 71% on last year

54 At home On pack Digital touchpoints Out of home In store

55

56 T Targeted O Out-standing S Simple C Compelling A Appropriate

57 Thank You and enjoy the conference! Part of the

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