1 ©2009 winston weber & associates, inc. 1 confidential winston weber & associates, inc...
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1©2009 Winston Weber & Associates, Inc. 1 Confidential
Winston Weber & Associates, Inc
Shopper Insights, Merchandising and Marketing•A clear vision for shopper centricity •New skill requirements• Training programs and approach
Keith Conard David Zahn
2©2009 Winston Weber & Associates, Inc. 2 Confidential
Webinar Objectives
Provide a brief introduction to WWA and our unique training capability
As context for identifying the new skill requirements, share WWA’s definition of Shopper Insights, Shopper Merchandising and Shopper Marketing along with key structure and process overviews.
Outline the new skill requirements for both category management and sales personnel along with a high level overview of WWA’s training curriculum and approach
3©2009 Winston Weber & Associates, Inc. 3 Confidential
Winston Weber & Associates (WWA)
For 24 years WWA has provided customized solutions to retailers and CPG manufacturers worldwide .
Retailer Solutions
• Strategic Direction
• Organization/Process Design
• Store Merchandising Execution
• Merchandising Support System Guidance
• Center Store Space Optimization
• Category Management
• Shopper Centric RetailingSM
• Supplier Collaboration
• Skills Development
CPG Manufacturer Solutions
•Strategic Direction
•Organization/Process Design
•Customer Alignment
•Retail Customer Collaboration
•Category Management
•Brand Marketing
•Trade Promotion Optimization
•Merchandising Solutions
•Skills Development
4©2009 Winston Weber & Associates, Inc. 4 Confidential
WWA Leadership Highlights
Introduced concept of trading partner collaboration to US in 1985…later in Mexico, Australia and Asia.
Recognized worldwide as one of the original architects of category management.
A resource for the Joint Industry Project on ECR: The Category Management Report
Recently introduced Shopper Centric RetailingSM …the next generation model beyond category management.
One of the industry’s leading experts on shopper insights and shopper marketing transformation
GMA’s Forum Magazine- 2008
WHITE PAPERWINSTON WEBER & ASSOCIATES, INC
Shopper Insights and Shopper Marketing
“Getting it Right”
By: Win Weber
Published in April, 2009
5©2009 Winston Weber & Associates, Inc. 5 Confidential
The expertise of our chief instructional designer, combined with the industry experience of our senior consultants
provides a unique training capability
Instructional Designer WWA Consultants
• David Zahn is recognized industry wide for his expertise in instructional design, development and delivery of training programs.
• Twenty years of training and consulting for the FMCG and retail industries
• Experience in organization design, employee development, training, competency enhancement and behavioral change.
• Consultants all have 20+ years of operational and consulting experience
• Deep understanding of both Retailers and CPG Manufacturers
• Extensive expertise in:‐ Sales strategy‐ Customer strategies‐ Category
management‐ Shopper Insights,
merchandising and marketing
Customized training that is highly relevant to the participants
•Reinforces the integrity of program content
•Ensures the ease of translation from the classroom to business building application
•Virtually guarantees the highest return on investment for our clients.
WWA Training Advantage
6©2009 Winston Weber & Associates, Inc. 6 Confidential
WWA offers a wide range of training programs that focus on “operational” and “technical” skills
Brand/Category Analysis
Trade Promotion
Effectiveness
Basics of Financial
Understanding
CategoryManagement
Shopper/ConsumerInsights Application
DevelopingEffective Sales Presentations
Retailer Insights/Practices
Customer Business Planning
Customer Penetration and
Collaboration
Effective Third-Party
Management
Business Analysis and Understanding
Strategic Customer Development
Category Management and Shopper Insights
Core Business SkillsTeam/Regional
Management Skills
Shopper CentricSolutions Planning
7©2009 Winston Weber & Associates, Inc. 7 Confidential
The need for change and for new skills is being driven by a rapid shift to a shopper centric environment
Leading retailers are now placing greater emphasis on the “demand side”… the shopper and the shopping experience
Store is becoming the primary demand generator… it is the shopper’s knowledge source
Over 70% of final purchase decisions are made in the store… at the shelf
Store must be an information resource and facilitator that helps the shopper make satisfying decisions
The ability of the store to help shoppers make good decisions determines loyalty to the store, department and category
8©2009 Winston Weber & Associates, Inc. 8 Confidential
WWA’s definition of Shopper Insights and the Key Activation Points
Shopper Insights
Insights necessary to understand the shopping experience including shopper need states, shopping occasions, shopper behavior in-store, drivers behind the purchase decision at the shelf and reaction patterns to particular in-store stimuli
Shopper Merchandising• Improving the shopping experience
through better assortment, shelf arrangement, fixture design, shopper communication and displays
• Plan-o-gram aligned with shopper needs• The realm of category management
Shopper Marketing• The employment of marketing stimuli,
developed based on a deep understanding of shopper behavior, designed to build brand equity and/or store banner equity, engage the shopper and lead him/her to make a purchase
Consumer Marketing• Product development• Packaging Communication• Pre-store marketing• Direct to Consumer promotion
Activation in 3 Areas
…is solutions focused and more operationally aligned with most organizations
Confidential ©2009 Winston Weber & Associates, Inc. 9 Confidential
The Shopper Insights/Shopper Marketing function should have the ability to identify, develop…
Strategy formulation for Shopper
Insights/Marketing
Strategy formulation for Shopper
Insights/Marketing
Lead Ideation on Merchandising
Concepts
Lead Ideation on Merchandising
Concepts
Engage Resources for Concept
Development and Execution
Engage Resources for Concept
Development and Execution
Research Selection and Execution
Research Selection and Execution
Distill Research into Insights,
Conclusions and Growth Concepts
Distill Research into Insights,
Conclusions and Growth Concepts
• Understand brand strategies and fit within marketing mix
• Identify key shopper marketing opportunities
‐By brand‐By channel/retailer
• Align Shopper Marketing opportunities with retailer/banner opportunities
• Ideas may be:‐ Consumer facing‐ Customer facing
• Multi-expertise ideation session interpreting:‐ Existing research‐ Customer Research
• Customer ideation sessions
• Develop merchandising solutions
• Test and evaluate in-store merchandising solutions
• Direct Customer interface with account teams
• Manage merchandising solution providers
• Establish baseline and performance metrics
• Enhance consumer decision trees
• Identify shopper segments and need states
• Understand key purchase drivers by segment and need state
• Identify most promising opportunities for generating sales growth
• Mine existing consumer and shopper research
• Determine additional research requirements
•Conduct Customer Specific Shopper Research
• Maintain shopper research knowledge repository
• Manage shopper research partners
and implement differentiated merchandising concepts that drive sustainable growth
Confidential ©2009 Winston Weber & Associates, Inc. 10 Confidential
Shopper Insights directional perspective… several alternatives will emerge
Strategy/Other
ShopperInsights
Category Management
ConsumerResearch
Corporate
Insights Support “Center of Excellence”
FunctionalHead
ShopperInsights
CorporateCategory
Management
Sales
Shopper Insights within Sales/Customer Development
FunctionalHead
Also, a few in Shopper Marketing and Consumer Research
Organizational structure and process redesign will be necessary
Shopper InsightsTypical Structures
©2009 Winston Weber & Associates, Inc.
Confidential ©2009 Winston Weber & Associates, Inc. 11 Confidential
Shopper Marketing directional perspective… several alternatives will emerge
Also, a few in located in Marketing; some combining Shopper Insights/Marketing
Organizational structure and process redesign will be necessary
Shopper Marketing within Sales/Customer Development …embedded in Marketing
ShopperMarketing
ShopperInsights
Sales
Shopper Marketing within Sales/Customer Development
FunctionalHead
CorporateCategory
Management
ShopperMarketing
ShopperInsights
Sales
FunctionalHead
CorporateCategory
Management
Marketing
Embedded
Shopper MarketingTypical Structures
©2009 Winston Weber & Associates, Inc.
Confidential ©2009 Winston Weber & Associates, Inc. 12 Confidential
The structure and cross functional roles will determine the knowledge and skill development requirements for the various functions
Marketing
Retailer
ConsumerResearch
Field Shopper Insights
HQ Shopper Insights
Field Category Management
Sales TeamsCustomer Marketing
HQ Category Management
Field Shopper Marketing
HQ Shopper Marketing
360o Integrated Marketing Solutions
As a starting point, most companies build off of their category management capability
13©2009 Winston Weber & Associates, Inc. 13 Confidential
There are two macro processes that provide the framework for knowledge transfer and application
Identify Category and Brand
Opportunities
Identify Category and Brand
Opportunities
Push Insights and Concepts to
Sales/Cat.Mgt
Push Insights and Concepts to
Sales/Cat.Mgt
Sales/Cat.Mgr Develop Customer
Application and Activation
Sales/Cat.Mgr Develop Customer
Application and Activation
FoundationalResearch
Selection and Execution
FoundationalResearch
Selection and Execution
Distill Research into Insights,
Conclusions and Growth Concepts
Distill Research into Insights,
Conclusions and Growth Concepts
1. Shopper Insights “PUSH” to the Customer
Retailer and/or Supplier Identifies
Shopper Opportunity
Sales and/or Cat. Mgt clarify the
business question
Research Selection and
Execution
Ideation on Merchandising
Concepts
In-store Activation
2. Shopper Insights “PULL” from the Customer
Key Functions involved in Shopper Insights Knowledge Transfer and Application
•Consumer Research•Shopper Insights
•Customer•Sales team Leader•Account Managers•Brokers
•Cat Mgt Leaders•Category Managers
•Consumer Marketing•Consumer Promotion•Customer Marketing•Shopper Marketing
14©2009 Winston Weber & Associates, Inc. 14 Confidential
It will be necessary to build upon traditional category management skills to include shopper insights capabilities
Today Tomorrow
Category Management
Linear thinking
More tactical
Understands purchase dynamics and the consumer
Uses syndicated information and databases to understand and interpret data (numbers)
Deductive reasoning by “boiling the ocean” and analyzing all available research
Presents research
“One size fits all” actions
Shopper Insights
Open ended reasoning
More strategic
Understands and interprets purchase dynamics, the consumer and the shopper
Interweaves syndicated information, consumer insights and shopper insights
Inductive reasoning by ”theorizing opportunities” and confirming with analysis
Interprets research
Customized solutions
15©2009 Winston Weber & Associates, Inc. 15 Confidential
Shopper Insights/Merchandising/Marketing training programs should fulfill the following knowledge and skill requirements
Understand the key drivers of the Market Place looking forward and the need for “Shopper Centric, Solutions Oriented Planning”
Understand the key components that must be in place to create an effective shopping experience
Learn the process for an effective Shopping Experience Audit
Learn the most commonly employed consumer and shopper research methods and their application to different types of shopping experience questions
Understand important shopper insights concepts such as shopper segmentation, trip missions, decision trees, shopper need states, solution groupings , etc
Identify key components of a shopper solutions strategy
Learn to incorporate the 4 P’s and key shopping experience strategies into a cohesive plan that connects with the shopper and the shopping experience
Learn the steps for breakthrough ideation and collaboration with retailers on developing actionable shopper solutions
Learn importance of developing broader retailer contact points including merchandising, marketing and operations to develop and execute Shopper Centric Solution Plans
Understand methods for evaluating and measuring ROI on in-store merchandising and marketing solutions
16©2009 Winston Weber & Associates, Inc. 16 Confidential
Key Elements of Shopper Insights/ Merchandising/Marketing Training Curriculum
Key Shopper Centricity Concepts/Definitions
Key Shopper Centricity Concepts/Definitions
Assessing the Shopping Experience
Assessing the Shopping Experience
Consumer/Shopper Insights
Consumer/Shopper Insights
• The marketplace “looking ahead”
• What is the path to purchase and the role of Shopping Experience
• Understand the two types of self serve shopper behavior and how shoppers shop a category
• Key definitions− Shopper Insights− Shopper Merchandising− Shopper Marketing
• The need for “Shopper Centric , Solutions Oriented Planning
• Key components of an effective shopping experience
• The shopping experience audit process
• Identifying shopper solution opportunities/key business questions
• Identification of most commonly employed consumer and shopper research methods
• Design of various research methods
• Application of research to different types of shopping experience questions
17©2009 Winston Weber & Associates, Inc. 17 Confidential
Synthesizing Data into Insights
Synthesizing Data into Insights
Shopper Solutions Development
Shopper Solutions Development
Shopper Solutions Activation
Shopper Solutions Activation
• Approaches to assessing and analyzing performance
• Synthesizing data from multiple sources
• Shopper insights concepts
− Shopper segmentation− Trip missions− Shopper decision trees− Shopper need states− Solution groupings− Etc.
• Key components of a shopper solution strategy
• SWOT analysis to identify strategic imperatives and tactical initiatives
• Prioritization of potential strategies and tactics for shopper solution development
− 4 P’s− Shopping experience
enhancements
• The concept ideation process and effective collaboration between retailer and manufacturer
• Project implementation checklist
• Developing customer relationships beyond category management and merchandising
• Organization integration strategies and techniques
• Methods for evaluating and measuring ROI on in-store merchandising and marketing solutions
Key Elements of Shopper Insights/ Merchandising/Marketing Training Curriculum (cont’)
18©2009 Winston Weber & Associates, Inc. 18 Confidential
Customized training that is highly relevant to participants
We believe training of this type should be customized as this reinforces the integrity of program content, ensures ease of translation from the class room
to business building application and virtually guarantees the highest ROI
Program Content is customized to the clients approach and capabilities on shopper insights and marketing
• Consumer and Shopper Insights availability and application• Sales and Marketing Planning process• Category Management Approach• Shopper Marketing Approach
Breadth and depth of the training curriculum is customized to the participants and the level of skill development required
• Shopper insights managers and analysts• Category managers and category advisor’s• Sales team leaders and managers
Program structure is customized based on the time and investment available
• 1 day orientation workshop
• Advanced 2 day workshop using select modules
• Two - 2 day advanced training workshops
19©2009 Winston Weber & Associates, Inc. 19 Confidential
SkillsInventory (1)
Orientation/Advanced Training
OrientationTraining
OrientationTraining
SkillsInventory (2)
Reinforce/Institutionalize
Shopper Insights knowledge/skills development must be aligned with roles, responsibilities and near term business needs
The ProcessProgressive developmentof knowledge and skills
based on mostimmediate needs by
functional level
Skills inventory to determine skill needs of the first and second level managers who must be prepared to perform new responsibilities ASAP
Based on outcome of skills inventory, design and conduct training for aforementioned first and second level managers
Conduct orientation for select Sales Managers focused on application of Shopper Insights
Conduct orientation for Field Category Managers focused on application of Shopper Insights
If necessary, consider conducting skills inventory of Field Category Managers to identify available talent as transformation to shopper insights continues
Assess progress and determine plan to reinforce and institutionalize the training
(Client Example)
20©2009 Winston Weber & Associates, Inc. 20 Confidential
• Growing importance of shopper data analysis and longer range planning.• Growing importance of providing merchandising innovation and strategic support.
• Growing importance of having a general management mind set; thinkers and doers.
SituationalAssessment
SituationalAssessment
Trends Influencing
Future SkillsRequirements
Trends Influencing
Future SkillsRequirements
• Over past 15 years most training investment focused on building category management skills…minimal investment on Sales/Customer Team Leader management skills development.
• Multiple streams (sales, category management, shopper insights, shopper marketing) interfacing with customer…sales role becoming increasingly diluted. Key question…Who owns the retail customer business development strategy and is accountable for performance?
Team LeaderSkills
DevelopmentFocus
Team LeaderSkills
DevelopmentFocus
Sales/Customer Team Leader skills must also evolve to meet the needs of retailers in today’s dynamic industry environment
• Understanding of category management, shopper/consumer insights , shopper marketing, marketing and finance through career path exposure or training.
• The ability, from a general management perspective, to coordinate and decide cross functional, customer specific initiatives
• The ability to conceptualize problems and solutions…strategic thinking.• The ability to engage in productive strategic collaboration at the highest levels.
Must have the knowledge and skills to be the hub and leader of all customer management activity
21©2009 Winston Weber & Associates, Inc. 21 Confidential
David ZahnCompetency Enhancement LeaderWinston Weber & Associates, [email protected] www.winstonweber.com203-269-9290
Keith ConardExecutive Vice PresidentWinston Weber & Associates, [email protected] www.winstonweber.com614-202-7292
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