One MarketingCreating Sustainable Competitive Advantage

through Holistic and Interconnected Marketing

22 One Marketing

Contents

Executive Summary Page 3

A One Marketing Future Page 4 The challenge of imagining a holistic and unified marketing organization

How Did We End Up Here? Page 6 The origins of separate Brand and Shopper Marketing functions

Tunnel Vision Page 8 The unintended consequences of specialized Marketing functions

Challenges & Complexity Page 9 The bottom-line impact caused by differing Marketing perspectives

Time for Change Page 11 The call for action to begin transitioning to a One marketing approach

Building a One Marketing World Page 11 The approach needed to build a One Marketing capability (with case studies)

Process: Driving Marketing Focus on Aligned Goals Page 12 People: Broadening Competencies, Perspectives, and Connections Page 13 Insights: Developed, Leveraged, and Widely Shared Through Organization Page 14 Tools: Enabling Connection, Alignment, and Integrated Planning Page 15

Creating a One Marketing Organization Page 16 The leadership-led and grass roots approaches for launching One Marketing

Start One Marketing Today Page 18

33 One Marketing

The consumer and shopper are holistically in-tertwined—just one person. One Marketing reflects this reality by converging the activ-ities of Brand Marketing, Shopper Market-ing, and other functional groups to create a seamless, interconnected approach that ad-dresses the person across all touchpoints in the ever-evolving path-to-purchase.

Unfortunately, organizational challenges makes this vision difficult to achieve. Brand and Shopper Marketing teams are discon-

nected. Roles are viewed through a functional lens. Separate scorecards are used to measure performance. Strategies are competing, dis-jointed, and reactive. Development is solely focused on building competencies, not capa-bilities. Achieving One Marketing requires addressing these issues and evolving the mar-keting approach to adopt a holistic view.

A One Marketing capability is built upon four pillars: Process, People, Insights, and Tools.

Building a One Marketing organization can be achieved through a top-down, leadership-led ap-proach, but the call to action can also be driven through grass roots initiatives. Creating immediate impact through quick win pilot programs and generating support and conversation throughout the organization are approachable methods any member of the organization can use to get started.

One MarketingCreating Sustainable Competitive Advantage through Holistic and Interconnected Marketing

Executive Summary

Process: Driving Marketing Focus on Aligned Goals• Processes redesigned with a person-centric marketing approach• Resources allocated to opportunities, not functions• Plans and execution integrated enterprise-wide and across the path-to-purchase

People: Broadening Competencies, Perspectives, and Connections• Nimbleness and collaboration enabled by borderless ecosystems • Roles interconnected across functions and supported by collaborative culture• Competencies broadened to encompass the entire path-to-purchase

Insights: Developed, Leveraged, and Widely Shared• Consumer, shopper, and retailer insights converged to create a holistic view• Research plans integrated to create a full path-to-purchase perspective• Insights designed to be agile and scalable

Tools: Enabling Connection, Alignment and Integrated Planning• Metrics integrated to incent collaboration• ROI evolved to inform targeted resource allocation• Advanced analytics and instant access empowered by Big Data• Knowledge management deployed across organization

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a future state in which the consumer and shopper are holistically intertwined. She moves seamlessly through the path-to-purchase while en-gaging with multiple channels and touch-points. She shifts between consumption and shopping mindsets, attitudes, and behaviors with ease. She’s the same at the store as she is at home—not just a consumer or a shopper, she is one person.

This shopper future state may be easy to imagine because, in many ways, it is al-ready here.

Now imagine a future state in which the marketing organization is holistically in-tertwined. It approaches the marketplace with an integrated vision. It addresses the entire purchase journey in its strat-egies, budgets, and activations. Orga-nizational boundaries have disappeared and plans are integrated to connect with the person from couch to cart—not just Brand Marketing or Shopper Market-ing, it is One Marketing.

Yes, in this future state brands still need to be built, insights discovered, retailers differentiated, and shopping behav-iors influenced. But these activities are no longer performed in isolation; rath-er, the organization aligns its goals, allo-cates resources, and works together toward a unified outcome. Throughout the One Marketing organiza-tion, the human perspective prevails.

This marketing future state is more diffi-cult to imagine because, in many ways, it seems impossible.

A One Marketing Future

Imagine

4 One Marketing

Imagine a future state in which Marketing is holistically intertwined— not just Brand Marketing or Shopper

Marketing, but One Marketing.

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BRAND

INSIGHTS

SHOPPER

CUSTOMER

For some organizations, this One Mar-keting future state is unimaginable. For others, it is a coveted destination, but in-stitutional inertia stands in the way. Both viewpoints are understandable: without a clear vision and strategy for building a One Marketing capability, that future state is inordinately difficult to achieve.

Yet consider that organizations are already practicing One Marketing today. On one end of the spectrum, newer organizations unburdened by size and tradition are able to focus their marketing efforts on a uni-fied outcome. On the other, marketing be-hemoth Procter & Gamble works tirelessly to make One Marketing a reality. Its orga-

nization-wide devotion to the three moments of truth— when searching for brands; when shopping for brands at the shelf; when using the brands at home—holistically connects to the per-son throughout the purchase and usage journey.

A One Marketing future state is not only a possibility—it is a requirement for sus-taining competitive advantage and driv-ing future growth. But how does one build a One Marketing organization? Be-fore we can discuss the One Marketing future, it is helpful to briefly look back.

A One Marketing future state

is not only a possibility—it is a requirement for sustaining com-petitive advantage and driving

future growth.

© Caprē Group 2019

BRAND

INSIGHTS

SHOPPER

CUSTOMER

66 One Marketing

years ago, the marketing landscape was a far less complex environment relative to today. Traditional mediums such as televi-sion, radio, and print were the principal vehicles for driving pre-store attitudes and behaviors. Market research, communication, and brand management mirrored this simplicity—most goals could be accomplished through a handful of tactics.

The shopping experience was straightforward: the shopper navigated her local retailer in predictable fashion, and product choices were believed to be made prior to stepping in the store. It wasn’t until research emerged suggesting nearly 70% of purchase decisions were made in-store that marketers began accommodating the relative power that in-store expe-rience has on purchase decisions. Organizations began to split their attention between the consumer and the shopper. The result was the creation of two primary functions within Marketing: Brand Marketing and Shopper Marketing.

Brand Marketing focused on positioning the brand uniquely in the consumer mind. The primary goals were building aware-ness, becoming part of the considered set, and ultimately establishing brand loyalty with consumers.

Shopper Marketing focused on convert-ing the shopper into a buyer. The primary goals were translating brand equity to the shopping environment, activating brands in the context of the retailer, and winning the moment of truth to drive purchase.

Brand Marketing Shopper Marketing

How Did We End Up Here?

Twenty The power of the in-store experience on purchase decisions resulted in

the creation of two primary functions within Marketing: Brand Marketing

and Shopper Marketing.

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The division of labor between these two groups was neatly divided across the tra-ditional linear path-to-purchase. Brand Marketing bookended the consumer jour-ney, responsible for pre-shop and post-shop activities, while Shopper Marketing zeroed in on the world inside the store.

With distinct objectives and workstreams, coordination and partnership between Brand Marketing and Shopper Market-ing was difficult—but in a linear path-to-purchase, viewed as not entirely neces-sary. Before the lines between consumer and shopper began to blur, the location of the person was indicative of their role. At home, a person was a consumer, because it was impossible to shop from the couch.

In the store, a person was a shopper, be-cause it was impossible to do any-thing else.

But as technological progress and digital omnipresence began to enable shopping from home and me-dia consumption while walking through aisles, the old dominions of Brand Market-ing and Shopper Marketing made less sense. Today, while it is clear the old rules of engagement no longer apply, structures and resources are still in place that reflect yesterday’s understanding of Marketing.

While it is clear the old

rules of engagement no longer apply, structure and resources still

reflect yesterday’s understand-ing of Marketing.

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88 One Marketing

viewpoints are not endemic to Brand and Shopper Marketing—all marketing specializations have become more and more narrowly focused. The sophistication of marketing requires precise viewpoints and increasingly nuanced perspectives on what drives behavior and attitudes within particu-lar realms of influence. A social media expert primarily concerns himself with what brands are liked and shared, while a mobile marketer only cares for what happens on the smartphone. An insights professional typically seeks to define consumers based on demographic and psychographic tendencies, while a con-tent marketer distinguishes consumers by their pop culture preferences.

None of these approaches are wrong, giv-en the priorities and objectives of each function. But the output is a collection of tiny pieces of information, none of which can individually define who a person is.

If organizations are particularly refined they have tools and applications to link the pieces together, yet there is no one in the organization whose role is to see the full perspective—to view and address the consumer and shop-per as one holistic person.

Meanwhile, there is tremendous complex-ity in the person’s world. An explosion of channels and content alongside ubiqui-tous and instant connectivity have essen-tially destroyed the traditional path-to-purchase. There is now seamless shifting between consumer and shopper mindsets regardless of location or time of day—she is just one person throughout all touch-points. Unfortunately, every message she receives from marketers along the path-to-purchase treats her differently.

Tunnel Vision

Myopic There is no one in the organization whose role is to see the full per-

spective—to view the consumer and shopper as one holistic person.

8 One Marketing

99 One Marketing

Marketing requires a different approach in the marketplace, but the complexity and challenges within marketing organizations demand attention as well. There are six critical factors impeding marketers’ ability to effectively achieve their objectives and make One Marketing a reality.

Challenges & Complexity

One

Disconnected Brand and Shopper Marketing Teams. Emerging from a need to special-ize in a complex consumer and shopper environment, the divide between these two groups has widened far beyond what was intended. Shopper and Brand Marketing teams strug-gle to influence each other’s initiatives, face imbalanced resources, and lack alignment on insights and execution.

Roles Viewed Through a Functional Lens. “I’m a shopper marketer.” “I’m in brand.” “I do insights.” When it comes to providing a unified, seamless One Marketing experience, func-tional lenses can be limiting. One Marketing is not about one individual function achiev-ing their objective; it’s about setting an integrated, holistic approach and person-oriented goal that every function connects into to win.

Separate Scorecards. Scorecards measure performance metrics relevant to each team, but they create and instill silo behavior. Without measurements that are jointly shared across teams and support commitment to a One Marketing perspective, disconnected out-puts and misaligned activities typically result.

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1010 One Marketing

These challenges are unfortunately commonplace across even the most successful organi-zations, and their impact on business results is severe. Missing opportunities to reach con-sumers and shoppers limits topline growth and opens the door for competitive incursion. Reactive organizations lose the confidence of Wall Street and see stock prices flat line. Complexity and disjointed strategies impede returns on marketing investment. And in the face of growing retailer consolidation and power, the lack of a One Marketing capability erodes the organization’s ability to provide thought leadership to their partners.

Competing and Disjointed Strategies. Shopper Marketers often build strategies to align to Sales, Category, and especially Retailers. Brand Marketers, in turn, have their own strategies to promote and grow the company’s portfolio. Unfortunately, strategies from these groups do not always align, potentially harming both the retailer relationship and the brand’s ability to win at the shelf.

Slow and Reactive Organizations. Executing a single Shopper Marketing program can require tremendous coordination, resources, and time. Because of this, urgency tends to motivate action—reactive responses to urgent, present-day concerns take precedence over forward-thinking programs that anticipate and address future opportunities.

Lack of Focus on Organizational Capabilities. Marketing specialization has emphasized the need for highly developed individual skills: data analytics, project management, agile strategic thinking, etc. Building these competencies is important, but if the organization fails to also build the capabilities necessary to execute best-in-class One Marketing, suc-cess will not only be unsustainable, but fail to reach maximum potential.

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future state is clear: there is no longer a distinction between consumer and shopper, and so Marketing must evolve its approach. To do so will require more than augmenting existing operations with additional layers of process—it requires the building of a new One Marketing capability.

One Marketing converges diffused marketing perspectives into a seamless view. One Marketing ensures the interconnectivity of functions and responsibilities across the or-ganization. And most importantly, One Marketing adopts a holistic view of the person, accommodating the new reality that the consumer and the shopper are intertwined.

The future state is clear: there is no longer a distinction between

consumer and shopper, and so Marketing must evolve its approach.

Time For Change

The

Organizational capabilities are like muscles in the body: built through discipline, investment, and balancing strength across multiple areas. This en-sures that the organization will not only achieve its goals, but achieve them consis-tently. A capability is built upon four pil-lars: Process, People, Insights, and Tools. To truly build a One Marketing organiza-tion, each area will need to be addressed.

Building A One Marketing World

©2019 Caprē Group

1212 One Marketing

Processes redesigned with a person-centric marketing approach. Specialization has driven marketing teams’ focus to hyper-specific levels of granularity. Tak-ing a broader perspective across all processes helps bring the larger picture to the forefront.

Resources allocated to opportunities, not functions. Funds and people are typically assigned to functions—and functions compete with each other to receive them. In a One Marketing organization, resources are instead allocated to initiatives that drive the business, regardless of functional ownership or involvement.

Business plans and execution integrated across functions and the path-to-purchase. One Marketing requires a nimble and proactive mindset to deliver seamless outputs. Plans should incorporate all necessary functions to achieve a goal, and not be limited by where in the path-to-purchase the execution must occur.

Driving Marketing Focus on Aligned GoalsProcess:

Process

In 2014, Heineken re-tooled their commercial marketing process with the goal of implementing fewer, more impactful strategic marketing campaigns.

Through this joint brand and shopper process, Heineken combined consumer, occasion, and path-to-purchase insights to build brand-cen-tric platforms that more accurately target its consumers and shoppers. Further, these plat-forms were adapted to fit particular channels and customized for retailer-specific campaigns.

By leveraging its strongest brands and de-ploying its capability for personalizing the shopping experience, Heineken has begun to unlock growth opportunities and better in-fluence purchase decisions. Heineken’s retail partners have responded positively, viewing the company as a category leader for alcoholic beverages. The Brand Marketing community has also recognized their success, awarding Heineken the 2015 Cannes Lions award for Creative Marketer of the Year.

Case Study:

‘Heineken’ by Felix Triller, https://flic.kr/triller/2228066149. Photo cropped to fit page. License at http://creativecommons.org/licenses/by/2.0

Logo is a registered trademark of Heineken International used for editorial purposes.

1313 One Marketing

Nimbleness and collaboration enabled by borderless ecosystems. Isolated functions create conflict and unproductive competition. Encouraging borderless and interconnected marketing creates greater alignment around common objectives. Ca-reer pathing should also reflect this borderless philosophy, allowing and encouraging em-ployees to develop knowledge across multiple functions.

Roles and responsibilities interconnected across functions. A One Marketing organization limits competition across functions, instead integrating teams across disciplines and creating a culture that supports collaboration toward joint objectives. This does not necessarily mean the merger of Brand and Shopper Marketing teams, but driving cohesion between the two groups.

Competencies are broadened to encompass the entire path-to-purchase. Every function requires a full understanding of the person’s journey. It is critical and nec-essary for Brand Marketers to understand the retail environment and shopper needs, just as Shopper Marketers should understand the unique positioning of each brand and how that positioning interacts within the retailer’s environment. Formalized development and training ensures this broad understanding is instilled enterprise-wide.

Broadening Competencies, Perspectives, and Connections

People

Intrinsic to KIND Healthy Snacks’ national brand identity is the KIND Movement, a social arm of the com-pany devoted to encouraging random acts of kindness around the world. Their KIND Causes grant program allocates funds to professional and amateur “Cause Teams” voted on by the KIND community. But this message of spreading kindness goes beyond marketing activations to form a core element of the firm’s culture.

KIND encourages working together and collaboration from its executives on down to newest employees. From brand messaging to product development, the cultural emphasis on kindness and cooperation permeates strat-egies across functional groups. By strongly associating “Kindness” with both its people

management and its external brand identity, KIND helps ensure an interconnected or-ganization that works toward common objectives.

Case Study:

People:

‘Kind Snack Bars’ by Mike Mozart, https://flic.kr/jeepersmedia/15948986830. Photo cropped to fit page. License at http://creativecommons.org/licenses/by/2.0

Logo is a registered trademark of Kind Healthy Snacks used for editorial purposes.

1414 One Marketing

Consumer, shopper, and retailer insights converged to create a holistic view. Insights must converge to create a fully-formed picture of the person’s mindset: the con-sumer mindset when she is a consumer, the shopper mindset when she’s shopping, how they interrelate, and how that mindset changes across retailers and channels.

Research plans integrated to create a full path-to-purchase perspective. Research plans must be built with the full path-to-purchase in mind. Too often research misses an opportunity to build critical insights for another department simply because the function running the study is narrowly focused. One Marketing demands an all-encom-passing research approach.

Insights designed to be agile and scalable. Gone are the days when a team can spend three months designing a study, half a year field-ing it, and three more months analyzing results. The world moves too fast—teams must be able to answer questions quickly, rapidly deploy insights across the organization, and adapt on the fly to real-time changes in the marketplace.

Developed, Leveraged, and Widely Shared Through Organization

Insights

CVS Health recently made headlines for deploying an insights-driven strategy that emerged from a holistic inte-gration of shopper loyalty data and brand equity research.

In 2014, research found that shoppers were less trusting of drug stores that sold tobacco products. CVS Health realized that selling to-bacco not only jeopardized the loyalty of their shoppers, but was also in direct opposition to its corporate mission of helping people on their path to better health. This led to the elimina-tion of tobacco from CVS Health stores and, in its place, retail platforms offering shoppers the resources they need to quit smoking.

The decision helped position the CVS Health brand as the leading drug store for health and wellness while concurrently bolstering the trust of its shopper base.

Case Study:

Insights:

‘CVS Pharmacy’ by Mike Mozart, https://flic.kr/jeepersmedia/15037369506. Photo cropped to fit page. License at http://creativecommons.org/licenses/by/2.0 ‘tobacco-free-living’ by MilitaryHealth, https://flic.kr/militaryhealth/8652395915. Photo cropped to fit page. License at http://creativecommons.org/licenses/by/2.0

Logo is a registered trademark of CVS Health used for editorial purposes.

1515 One Marketing

Metrics integrated to incent collaboration. Incentives telegraph what to prioritize, and if groups are not incentivized to care about an-other function’s performance, true interconnectivity will be difficult. Whether it is Brand Marketers rewarded for category growth, or Shopper Marketers rewarded for brand health, using metrics to drive collaboration is critical to One Marketing.

ROI evolved to inform targeted resource allocation. Organizations are always trying to find the best return on their investment, even in a One Marketing world. The key is to assess value delivery by initiative and opportunity (rather than by functional group), as well as consider both the short- and long-term perspectives on potential returns.

Advanced analytics and instant access empowered by Big Data. One Marketing requires an organization to understand and track people’s behaviors, at-titudes, and preferences across multiple touchpoints and channels in real time. Big Data capabilities are critical to this understanding.

Knowledge management deployed across organization. Organizations often neglect to capture, codify, and make available their own insights, severely limiting ROI. A best-in-class knowledge management system allows functional groups to access each other’s information to enhance and broaden their initiatives.

Enabling Connection, Alignment, and Integrated Planning

Tools

Amazon leverages its One Marketing tools to optimize user experience from both the Brand and Shopper perspec-tive. They use their wealth of data and predic-tive analytics tools to provide shoppers with customized product recommendations that, based on previous purchases, are most likely to fit into their current consumption habits.

This recommendation engine is combined with a 1-Click ordering system and free 2-day delivery through Amazon Prime to en-sure convenience and speed throughout the path-to-purchase. By simplifying the shop-per experience, Amazon also delivers on their brand promise of being a user-centric, easy-to-use, everything store.

Case Study:

Tools:

‘New Amazon goodness?’ by Rick Turoczy, https://flic.kr/turoczy/8593766069. Photo cropped to fit page. License at http://creativecommons.org/licenses/by/2.0

Logo is a registered trademark of Amazon.com, Inc. used for editorial purposes.

1616 One Marketing

the processes, people, insights, and tools necessary to build One Marketing is important, but is just the first step on the journey. Connecting the reality of today with the vision of tomorrow requires action, and action can be taken regardless of which role one occupies in his or her organization.

Leadership-LedSenior leaders have the authority and influence to initiate organization-wide change, and the resources to invest in multiple capability building projects. Se-nior leaders can quickly start a dialogue and enable (or insist) functional groups begin working in concert on their mar-keting efforts.

Grass RootsWhile leadership-led One Marketing is faster, it is not the only way—grass roots initiatives can also bring One Marketing to organizations. Making the case for a One Marketing approach and creating immediate impact via test-and-learns transforms One Marketing from an idea to a potential reality.

Creating A One Marketing Organization

Understanding Making the case for a One Marketing approach and creating immediate impact transforms One Marketing from an idea to a potential reality.

16 One Marketing

1717 One Marketing

Everyone should be

thinking about how to transform what they currently do to adopt a holistic, ‘couch-

to-cart’ approach.

Again, it is important to remember that One Marketing is not about functions—it is not a Shopper Marketing initiative or a Brand Marketing initiative. One Marketing is about building seamless capabilities across the organization. Everyone—Brand Marketing, Shop-per Marketing, Insights, Category Management, Sales, and beyond—should be thinking about how to transform what they currently do to adopt a holistic, ‘couch-to-cart’ approach.

Start the Conversation. Bring One Marketing up at a meet-ing, lunch, or industry event. The more dialogue created, the more interest and momentum the concept will gain.

Make the Case. What would One Marketing do for an or-ganization? What improvements and impact on ROI would it drive? Going beyond the idea and describing the potential outcomes will help gain attention and generate support.

Enlist Support. Identifying collaboration partners in other areas of the orga-nization and with external entities (such as agency and consulting resources) can provide a stronger starting point in terms of idea generation, communication, and program devel-opment.

Test & Learn. Find a small initiative with the resources and timeframe that allows exper-imentation with One Marketing concepts. Build a plan, measure results, and share the learnings throughout the organization.

Influence through Quick Wins. The best way to influence is to show how One Market-ing can bring immediate impact to the organization. Build momentum and support by addressing the mole hills first—save the mountains for later.

17 One Marketing

One Marketing is about building seamless capabilities across the organization. Here are five ways to get started:

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wants to partner with you to bring One Marketing capabilities to your organization. We apply our deep industry expertise to elevate the per-formance of marketing from consumer to shopper by deploying proven methodologies and tools to drive in-sights-led strategy and activation across the path to purchase. The result: deeper brand connections, stron-ger shopper conversion, and profitable growth. To start the One Marketing conversation, please contact Pete Tunkey at ptunkey@capregroup.com. You can also reach us by phone at 678.443.2280.

Caprē Group I 1117 Perimeter Center West I Suite N411 I Atlanta, GA 30338 I capregroup.com

To start the One Marketing conversation, please contact

info@capregroup.com. You can also contact us

by phone at 678.443.2280.

Start One Marketing Today

18 One Marketing

The views expressed in this work represent the research and expertise of Caprē Group, Inc. Any quotes used with permission. No confidential client information was used to create this work. References to Procter & Gamble, Heineken, Kind Healthy Snacks, CVS Health, and Amazon.com within were sourced from publicly-available information and presented for editorial purposes only.

© Caprē Group 2019

BRAND

INSIGHTS

SHOPPER

CUSTOMER