28 creating value
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Cover headinggoes hereCover sub-heading goes here
Creating valuein-storeUnderstanding and proting
rom the dierences between
shoppers and consumers
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Interbrand | Pg. 2
The retail shel: the orward position in
the battle or consumer spending
The battle is on. The current environment has
not only changed the economic realities or
consumers around the world, it has radicallyshited the mind-set o shoppers in-store. In
normal times, companies spend a tremendous
amount o time and resources in the
development and management o their brands
by developing identities, measurement tools,
and communication, including signicant
media spending budgets. Yet, these are
anything but normal times.
When consumers eel pain in the pocketbook,
they react dierently inside the store.
Unortunately, it is this in-store decision
moment that is chronically misunderstoodand under-resourced. Many brand owners
have mistakenly treated the in-store
experience as yet another operational
unction. Major decisions are made with
little connection to brand and marketing
management, with conversations rarely
moving beyond the undamentals o in-stock
position and promotions. Even i they wanted
to extract more value rom the shel, many
brand owners lack the insights and tools to
do anything about it.
Yet, the store plays a major role in the
success or ailure o brands. In many
categories, 70 percent or more o purchase
decisions are made in-store. Recessionary
belt tightening only increases the number o decisions that are made in-store as shoppers
scrutinize every line on their list, double-
checking that they’re spending wisely. With
this in mind, it is crucial that the in-store
experience, and how brands are presented
in the environment, should be managed
with at least as much rigor as the other
components o a branding program.
Shoppers versus consumers
What is the dierence between consumers
and shoppers? Essentially, they are the
same people, but they operate in twodierent environments, subject to dierent
environmental infuences, and possessing
dierent needs.
Consumers are the overall targets or
brands. Aspects like location, demographics,
and the habits and practices o their lie
oten segment them. The goal o brands
is to orm bonds with target segments o
consumers—to touch them where they live,
work, and play.
Shoppers are what consumers become
when they enter the store environment.
Shoppers segment dierently–chiefy
by their shopping behavior, habits, and
practices. They are also more dynamic;willing to change in-store behavior based
on local events (e.g. a great seasonal displa
could turn a programmatic shopper into
an impulse shopper), caprice (e.g. “I’ve
had a rough day—I’m going treat mysel
to something rom the skin care aisle”) or
macro trends (e.g. penny pinching). Outsid
the store, when the same segments are
consumers, nothing may have changed in
how they see brands. However, inside the
store, as shoppers, their behavior is anythin
but static. The goal then, or brands, is
shopper connection. And to achieve this,they need to leverage shopper insights
and use creativity to orchestrate in-store
behavior and drive choice toward the brand
Shopper insights, or an understanding o
how shoppers behave in-store, is a key rst
step to optimizing the value o brands in th
retail environment. But in order to leverage
shopper insights, one must rst understan
the dierences between consumers
and shoppers.
Creating value in-store:understanding and protingrom the diferences between
shoppers and consumers
by Kelly Crouch and Emily Grant
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Why should we make understanding the
shopper a priority?
In-store, shoppers have unique
communication and inormation needs. They
have unique habits and practices that occur
when they are shopping. Cues that attract
a consumer to a brand may not be the same
cues that cause a shopper to choose a brand in
the moment o purchase.
With this in mind, brands must help to deliver
a seamless shopping experience that meets
shopper needs while delivering benets
to the brand and retailer. To do this, brand
manuacturers must understand the dynamics
o the shopping environment—how options
are considered and choices are made. Even i
a brand has successully caught the interest
o a consumer, the shopper’s needs must
still be met in order to convert attachment
into purchase. Imagine a consumer who hasdecided they want to purchase a product,
Brand X. They have seen an ad and decided this
is something they want to buy. This consumer
travels to their avorite store, goes inside, and
becomes a shopper.
This consumer/shopper wants Brand X, but is
not sure where to nd it in the store. This alone
may turn them away. I they do locate the
section, they are presented with more options
than they’d imagined. They can choose Brand
X, or Brand Y, or Brand Z, or even Product Q,
which is a little bit dierent but appears to doalmost the same thing.
What do they do? Remember the statistic
about 70 percent o purchase decisions being
made in the store? I the brand does not cut
through the clutter, communicate why it is
dierent, or otherwise make this situation
simpler or the shopper, the shopper may well
go with another option or even abandon the
purchase entirely.
Creating value in-store: Understanding and proting rom the dierences between shoppers and consumers Interbrand | Pg. 3
How can a brand eectively address the
needs o the shopper?
There are a number o ways to better meet
shopper needs—key operational actors, like
in-stock position, must be solved, but on top
o the basics, other levers can be activated to
better meet shopper needs. These tools are
things like:
•Merchandisinglogicintheformofcategory
principles (e.g. vertical versus horizontal
shel arrangements by brand, scent,
size, etc)
•Plannedadjacenciesandstorelayoutboth
within and across the categories
•Categoryandbrandsign-posting
and waynding
•Totalstoreplanningandow
•Packaging
•Multi-levelcommunication
•Emotiveandinteractivecommunication,
such as imagery, technology, or out-o-
box displays
But rst, to make the right decisions with
tools like these, marketers must also
understand shoppers. Good branding
proessionals know how to get people into
stores. However, in order to get a consume
to make a purchase, marketers must also
understand what happens in-store, and
structure the brand oering in a way that
connects to shoppers in the environment.
How can brands understand whatshoppers really need?
To understand the best use o the tools
mentioned above, the rst objective must
be to understand the shopper. We must
investigate consumers in the role as
shoppers in order or brands to unlock the
mystery o the store and orchestrate valuab
shopping behavior.
Shoppers and shopper behavior must be
studied. Marketers must ollow them,
observe them, and ask questions. This
investigation can’t just happen in the homeor workplace, and cannot be gathered by
looking at market research studies that
outline what people buy. Those insights
are meaningul, but leave out specic
environmental dynamics and are oten
backward looking. Understanding and
observing how people behave and what
infuences them in the store provides an
opportunity to aect change, plan or the
To understand what motivateand infuences the shoppers,brand must understand thebasics o the shopper.
Brand manuacturers must understand thedynamics o the shopping environment.
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uture, and deliver meaningul innovation
or the shopper.
To understand what motivates and
infuences the shopper, brands must
understand the basics o the shopper:
•Whatdrivestheshoppertogotoastore,
and on what kinds o trips to the store is the
brand likely to be purchased?
• Isthecategoryusuallyadestination,
planned, unplanned, or impulse purchase
and what drives that role?
•Whatarethecurrentpurchasedriversand
barriers in-store?
•Whataretheunderlyingassociations
with the category?
•Whatinformationdoshoppersseekinthe
store, specically?
•Howdoshoppersselectandde-select
options and what are the decision
hierarchies?
•Howdoshopperswanttointeractwith
products? What interaction do they need?
•Howdoshoppersorientthemselvesinthe
category? In the store?
Note that these things should be considered
at both a category and brand level. Brands
must careully balance their own interests
with those o the retailers that sell their
products. Understanding the total category,
and how the brand can best perorm within
it, will ensure that brand marketers can
orward their own objectives while retaining
perspective on the needs o the retailers. I
brands can deliver perormance in-store or
both their brand and the retailer’s category,
partnerships with retailers and the ability orbrands to infuence the store environment
will become stronger.
Incorporating strategic objectives o
the brand
In addition to understanding shoppers,
brands must also be clear about what they
want to achieve with shoppers. Knowing the
priority strategy or the brand and category is
the second leg to unlocking value in the store
environment. Strategies or the brand might
be things like:
•Promotingtrial
•Facilitatinggreaterpurchasefrequency
•Encouragingtradeup
•Addingorincreasingmarginvariants
•Motivatingmulti-productroutines
Putting it all together
The marriage o shopper insights with in-
store strategy can lead to the construction
o in-store solutions that increase shopper
satisaction while orchestrating protable
purchase behaviors. In our experience at
Interbrand, brands that have done this in
retail have seen signicant gains.
One o our clients, Procter and Gamble,
consistently utilizes shopper insights to
create store solutions that successully grow
the objectives o their brands. Its eorts have
paid o in a number o categories, in terms
o increased share and volume, and have also
helped to establish P&G as a thought leader
and a key partner to retailers.
In another example, a big-box, North
American retailer instantly saw category
increases in the range o ve percent in
revenue, as well as units within a commonhousehold product category in test markets,
ater a relatively simple shel and category
reorganization built on shopper insights.
In act, because the in-store environment
is so requently overlooked or under-
examined, the opportunity or gains, even
based on relatively simple solutions, can
be signicant. Extracting more value with
little to no incremental investment is always
a good idea. And considering the current
environment,forsomeFMCGplayersand
retailers, it might mean survival.
So, brands must get to know shoppers,
not just consumers. In-store should be
treated as an input to brand strategy. The
store environment is a brand opportunity,
not just a point o tactical operations.
As the competition or share and loyalty
continues to get more intense, brands that
manage the shopper aspect o their brand
put themselves in a position to dierentiate
and create meaningul value as a brand and
retailer partner. ■
Creating value in-store: Understanding and proting rom the dierences between shoppers and consumers Interbrand | Pg. 4
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Creating and managingbrand valueTMinterbrand.com
Kelly Crouch
As Brand Analytics Director, Kelly guides
the integration o analytics programs and
ensures insights are represented within
strategic and creative outputs. Kelly’s
analytics expertise includes the design and
interpretation o research or brandingpurposes, delivery o retail insights,
creation o business cases and decision
rameworks, and ensuring clear links
between brand and business strategy. The
American-born Kelly now lives and works in
Amsterdam.
Emily Grant
As Senior Consultant in the Analytics
group at Interbrand, Emily Grant conducts
research and provides strategic guidance on
projects across a variety o sectors. She has
worked on engagements or a number o
high prole clients.