the supermarket circular: where it's headed and 3 things retailers need to do
TRANSCRIPT
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The Current State of the Supermarket
CircularWhere it’s headed and three things
retailers need to do to prepare
May 2016Bill Bishop, Chief Architect, Brick Meets Click
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What do consumers want from the ad/circular?
Two thingsInput on what to buy – could be added to a written list - or even just mental one.
Ideas on what to eat.
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How does the ad/circular fit into their lives?Shows what’s on sale (aka smart to buy now). • Users are not just cherry
pickers, 60% of core shoppers also compare prices.
An entrenched habit• When changing circular
delivery, make it easy for the customer, but also make it worthwhile.
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How do most consumers think of the ad/circular today?
Mostly still as a print vehicle because they are still a lot of them
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Do you use print or digital circulars?
67%
19%
14%
Percent of all shoppers
Want print Don't want printNo preference
Data Source: Brick Meets Click’s Six Degrees of Digital Connections, 2013
Do you still want the print circular?
Back in 2013
Have had the option of a digital ad/circular for years
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Data Source: Oracle Data Cloud’s The Circular Revolution, 2016
Do you prefer print
or digital supermarket
circulars?63%
19%
18%
Percent of all shoppersTitle
Prefer print No preference Prefer digital
Fast forward to 2016
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If print circulars disappeared…
• Majority of shoppers would search out the same information from a digital source like email, website, or mobile.• About a third, however, don’t want the
digital circular and would rather find the print version in-store.
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The
So what lies ahead?
Evolution - not a revolution> Digitally connect shoppers are looking for better and easier ways to grocery shop.
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The
NextThree things
retailers need to do to prepare
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The
1. Recognize you can’t afford to get too far ahead or too far behind your target customers
> Understand where they are today> Track where they are going> Measure your customers in your
marketRange of customers at risk can vary from 3
– 4%to 13 – 14%.
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The
2. Prepare to change when the target shopper is ready
> Shift when• Core customers want access to digital
and• You’re ready to incorporate it across the
marketing/ branding strategy. > Goal: Take good care of your core customers – they are where the action and the profitability are.
Means testing, learning, reacting, & retesting
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The
3.Work with progressive CPG brands
Use category insights to bring alive digital merchandising.• Work with brands who have a strong
interest in marketing online. • Tap into their knowledge & energy - it is
a great way to accelerate your own learning.