In a webseminar for the Path to Purchase Institute, Copernicus' Jeff Maloy illustrated how to develop an actionable shopping occasion framework and activate against it to improve sales.

1. Mission Possible:
Profiling Shopping Occasions for
Retail and Channel Partners
Jeffrey Maloy
Senior Vice President
Copernicus Marketing Consulting and Research
March 21, 2013

2. Who Am I?
Jeffrey Maloy
Senior Vice President
Copernicus Marketing Consulting & Research
Leading our CPG practice
Former Director of Marketing, with multiple brand and shopper marketing assignments.
Developing relationships with clients such as Kraft, P&G, Nestlé, and Hershey’s.
Helping my clients develop and execute transformational shopper marketing strategies

3. SWAG!
Get and Share ideas for
developing a transformational
shopper marketing strategy….
• Request this presentation and
our white paper
• Send an email to:
ami.bowen@copernicusmarketing.com
3

4. The Importance of Shopper Marketing
“Shopper marketing’s potential is rooted in its
focus on gathering insights about shoppers
when they are in the shopping mode and
applying these insights to influence their
purchase decision.”
4

5. Multiple Stakeholders use – and benefit from – Shopper Insights:
 Assortment Strategy
 Merchandising
Retailer/
Customer
 Distribution Strategy  Category
 Account-Specific Brand Shopper Sales/
Account
Management
Marketing
 IMC
Marketing
Insights Team  Selling Stories
 Promotional Strategy
Agencies
 Marketing Mix (incl. Shopper
Marketing)
 Creative Development
5

6. Consumers and Shoppers are often different groups, requiring different marketing
strategies.
Consumers Shoppers
How, when, where, why
How, when, where, why shoppers
Focus: consumers use/consume the
shop/buy the category
category
Consumer Insights Shopper Insights
Primary
Brand Marketing Shopper Marketing
End User: R&D Sales/Account Teams
In-store,
Key Marcomm
Path-to-Purchase influencers/
End Uses: Innovation
tactics
6

7. Three Things You Can Do
 Identify the most profitable shoppers
? ?
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
 Understand the occasions when they buy
 Isolate the “moments of truth” in their Shopper Journey
7
7

8. Identify the Most Profitable Shopper
Develop a Meaningful, Actionable Shopper Segmentation
CREATE
Hundreds of
Variables TEST
1. Decision-Making To identify
Power characteristics of
2. Attributes Desired in shoppers who
Store Experience,
offer high PRODUCE
Product Category
3. Purchase Process/ opportunity: Optimal
Channel Preference
 Decision-making Shopper
4. Shopping Habits Power Segmentation
5. Demographics/
 Market Basket: Framework
Psychographics
Currently and
6. Links to Household Potentially
Panels
7. Links to Shopper Card  “Openness” to
Databases Brand, Retailer
8. Links to Marketing
Databases
8

9. Identify the Most Profitable Shopper
In a Television Study, Five Unique Shopper Segments Emerged…
Techies Impulsives Sponges Settled Aspirers
Different Decision-Making Power
Different Economic Value
Different Demographically
Different Attitudinally and Psychographically
Different Attributes Desired
Different Media Habits
Very Different in Shopping Process
Very Different in Channel Preferences
9

10. Identify the Most Profitable Shopper
Shopper segments are distinct in terms of their “value” to manufacturer and retailer…
Likelihood to Buy Potential ROI
27%
% of Buyers % of Revenues
21%
16% 22%
11% 44%
9% 19%
16%
27%
18%
15%
25% 9%
7%
Techies Impulsives Sponges Settled Aspirers
10

11. Identify the Most Profitable Shopper
Shopper segments also are different in the ways to capture this “value”
Techies Impulsives Sponges Settled Aspirers
Search Involved In & Out (Instant Involved Uninvolved Uninvolved
Process: (DIY) Gratification) (Fact-Finding) (Simple) (Deal Seeker)
Online,
Channels: High-End Big Box Stores Big Box Stores Mass Merch. Mass Merch.
Electronics
Specs,
Touchpoints/ Displays, Salespeople “Push,” WOM, Deals/ Promotions,
Ratings &
Influencers: Demos Collateral Materials EDLP Payment Terms
Reviews
11

12. Three Things You Can Do
 Identify the most profitable shoppers
? ?
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
 Understand the occasions when they buy
 Isolate the “moments of truth” in their Shopper Journey
12

13. Why focus on Shopping Occasions?
People are busier than ever
Pre-trip planning is up
62% Of shopping trips are occasions-based
(buying with occasion in mind)
13

14. The key dimensions in defining a shopping occasion:
Mission Why they shop?
Location Where they shop?
Navigation How they shop?
14

15. Understand the Occasions When They Buy
The Shopping
“Diary”
15

16. When probing on occasions, be very thorough in your line-of-inquiry
When: Pre-Trip: In-Trip: Post-Trip:
 Day of week?  What “drivers” started the  Where did you go first,  Did you register any
shopping process? second, third, etc.? products?
 Time of day?
 What sources did you  What did you consider  Did you tell anyone (face-
consult? buying, at each stop? to-face and/or via social
Who: networks)?
 Did you make a list?  How long did you spend in
 Who were you with? each section?  Did/will you review the
 Did you talk to friends, product?
Why: family, colleagues, about  Key in-store influencers
it? during trip?
 What attributes and benefits
 Touchpoints most receptive
are you looking for from the
to?
store and/or specific products?
 Decision-making process
Where: at shelf?
 Channels, Retailers, Websites
16

17. Then use this data to develop an insightful, actionable segmentation of
occasions
Collect data on several
recent shopping occasions X ~2,000 respondents = ~6,000 shopping occasions
via diary (or mobile app)
Occasi
Occasi
on 1 on 2 Occasi
on 3
Who? Who?
What? Who?
What? What?
When? When?
Etc… When?
Etc… Etc…
Segment into 5-10 shopping “typologies” based on
trip mission, location, and navigation.
17

18. Shoppers experience many different types of shopping occasions
Frequent Infrequent
Just In Weekly Dash for Treasure
Stock Up Special Treat
Time Replenishment Deals Hunt
Different on:
 Sizing (opportunity)
 Trip mission (needs/drivers)
 Location (channels)
 Navigation (shopping behaviors/process)
18

19. The occasion will be different in terms of sizing and opportunity
It is imperative for Shopper Marketing to understand these occasions:
Frequent Infrequent
Just In Weekly Dash for Treasure
Stock Up Special Treat
Time Replenishment Deals Hunt
% of Trips 28% 24% 20% 9% 11% 8%
% Spent 17% 33% 12% 17% 8% 13%
High Frequency Low Frequency
High Frequency High Frequency Low Frequency Low Frequency
Moderate Moderate
Low Spending High Spending High Spending High Spending
Spending Spending
19

20. The different types of occasions will cater to different shopper missions
MISSION
Just In Weekly Dash for Stock Treasure Special
Time Replenishment Deals Up Hunt Treat
Infrequent: No Infrequent:
When: Last Minute Weekly Weekly Monthly
Set Pattern Quarterly
Why: • Immediate • Fill cupboard/ • Take • Stock-Up on • Browsing for • Treat self to
need due to cabinet for advantage of key staples entertainment special
out-of-stock week, get hot deals value products
items on list
Needs: • Store located • Product variety • Special • Staple goods • Enjoyable • Prestige
close to home • Reasonable promotions • Bulk sizes shopping brands
• Easy-to-find prices • Accepts experience/ • Personal
• Low prices/ environment
item(s) • One-stop manufacturers Value selling
• Get in/out shopping coupons • Unique, hard- • Ability to
quickly to-find items sample/try
• Convenient
store layout
20

21. The different types of occasions will occur in different channels
L O C AT I O N
Just In Weekly Dash for Stock Treasure Special
Time Replenishment Deals Up Hunt Treat
Drugstore Grocery Grocery Club Store Mass Merch Department
C-Store Supercenter Dollar Store Online Store
Specialty
Retailer
21

22. The occasions also will be distinct in terms of the way shoppers
navigate the Path-to-Purchase
N AV I G AT I O Pre-Trip In-Trip Post-Trip
N (Before shopping) (In-store) (After shopping)
Perimeter and in-aisle
Make List
Weekly Shopper card
Review circulars
Replenishment
Online research (product Loyalty programs
specs, prices, etc.) Coupons
Features, displays, TPRs,
sampling
Oh shit! In and Out
Just In
Time
22

23. By understanding what shoppers do inside the store, you’ll know what in-store
communications vehicles are optimal during each occasion
Navigation
What In-Store Communications Work? The “Last 3 Feet”
 = Shelf talkers
 = In-store TV
 = Circulars
 = Displays
 = In-cart ad
 = QR Codes
 = Sales Associates
23

24. Specifically, it is important to understand the shopper marketing tactics and/or
programs that are influential during each step of the path-to purchase.
Pre-Trip: In-Trip: Post-Trip:
 Advertising  Displays  Check-Out/Bounce-Back Coupons
 Circulars  Signage  Rebate Programs
 Digital  Sampling  Product Registration
 Direct Mail  Manufacturers Coupons  Loyalty/Shopper Card Programs
 Packaging/On-Pack  Customer Ratings and Reviews
 Promotions  In-Pack Offers
 Retail-tainment
 Sales Associates
24

25. Mobile devices have changed the path-to-purchase
30% of US adults now have a 50% of US adults now
tablet. Of these, 75% say have a smart phone.
70% they use it to “browse and
shop for products.”
Of these, 38% say they
use it “to compare
prices while in a store.”
Have used a smart phone
while shopping in store:
77% at beginning of trip It isn’t about cardboard displays anymore – you need to
61% in the middle of trip accommodate the way shoppers behave now, and that means in
stores and on-line.
Dina Howell
43% at the end of trip
CEO
Saatchi &
Saatchi
25

26. As a result, nowadays, mobile devices are being utilized throughout the path-to-
purchase
Pre-Trip In-Trip Post-Trip
Mobile Advertising Mobile Coupons Entertainment
Registration and
Search QR Codes
Loyalty
Price Comparison Location-Based Apps, such as: Social Media
Store Locator Shopkick
Deals and Offers Foursquare
26

27. The “Shopper Landscape”
Overlaying the Shopping Occasions onto the Shopper Segmentation provides a
“shopper landscape”… and insights into specific shopper marketing opportunities.
Shopper Segment
Just in Time
Weekly In each “cell”:
Replenishment
Shopping  Category $
Occasions Dash for Deals  Channels Used
Stock up  Key Influencers/
Touchpoints
Treasure Hunt
Special Treat
27

28. The “Shopper Landscape”
Importantly, we can analyze each retailers’ opportunities using the “Shopper Landscape”
 Where are they getting a good share of the buying?
 Where are the growth opportunities?
 What product portfolio/assortment is needed?
 And, by omission, which products/brands are less needed?
 What shopper marketing tactics should be employed?
Retailer X’s Current Sales Dollars Movable to Retailer X
Shopper Segmentation Shopper Segmentation
Seg 1 Seg 2 Seg 3 Seg 4 Seg 1 Seg 2 Seg 3 Seg 4
Just in Time $$$ $$$$ $ Just in Time $$$ $$$$ $
Shopping Occasions
Weekly
$ Shopping Occasions Weekly
$
Replenishment Replenishment
Dash for Deals $$ $ Dash for Deals $$ $
Stockup $$$ $ Stockup $$$ $
Treasure Hunt $ $$$ Treasure Hunt $ $$$
Special Treat $ $$ Special Treat $ $$
28

29. Three Things You Can Do
 Identify the most profitable shoppers
? ?
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
 Understand the occasions when they buy
 Isolate the “moments of truth” in their Shopper Journey
29

30. Two Ways to Identify the “Moments of Truth”
Ethnographies and shop-alongs are the most common way to understand the “Shopper Journey.”
A more novel approach:
Co-Creation Sessions: Ethnographies, Shopalongs
Bring together in a “workshop”
shoppers and marketers/agencies:
 To further flesh-out the Shopper
Journey
“Co-Creation Sessions”
 To enlighten marketers as to how
I REALLY
shoppers really talk and how they HATE IT
WHEN…
really feel.
I REALLY
WISH THAT…
 To brainstorm ways to better align
the brand and experience with
shopper needs, lifestyles, etc.
COULD YOU
MAKE IT SO
THAT…
30

31. Isolate the Moments of Truth
31

33. Three Things You Can Do
 Identify the most profitable shoppers ? ?
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
 Understand the occasions when they buy
 Isolate the “moments of truth” in their Shopper Journey
 Integrate Shopping and Consumption Occasions
33

34. Enlightened clients understand the “link” between shopping occasions
and consumption occasions
Shopping
Consumption
Missions
Occasions
(why they
(why they use)
shop)
Need to understand the
intersection
34

35. You should try to connect the consumption occasion and shopping mission
Size the “cells” in grid below, and identify key products purchased/consumed
Consumption Occasions
Breakfast Lunch Snack Dinner Winddown
Immediate
Need
$ $ $$ $$$$
Replenishment
Shopping Occasions
Regular
$$ $$ $ $$$ $
Immediate Need Dinner = Easy Meal Solution:
 Mom shopping for products for tonight’s
Long-term
family dinner.
Stock-up
$ $$$ $ $  Low/no preparation required.
 Meal whole family enjoys.
 Total meal solution
Browsing
$ $$
35

36. By understanding the underlying need and “market basket” during these occasions,
retailers and manufacturers can develop powerful shopper marketing tactics and
programs (e.g., cross-promotions)
Identify Need: Conduct Market Basket Deliver Shopper-Centric
Analysis: Solution
Easy Meal Solution Buy Frozen Pizza or
Rotisserie Chicken,
Get Free 2-Liter Soda
Sources:
 Retail POS
 Homescan Panel Data
 Shopper Card Data
 Survey Data
36

37. Conclusions
Shopper Marketing is increasingly complex: there are so many options
To develop an effective and efficient strategy:
 Have a clear – and profitable -- target shopper in mind
 Identify -- and value -- the different occasions on which they shop and buy
 Understand the shopper “journey” and key “moments of truth”
 Leverage the right touchpoints throughout the shopping process
1. Who? 2. When? 3. Where 4. How? 5. For What?
37

38. Conclusions
The Key to Success
Shopper Segment
Just in Time
Weekly In each “cell”:
Replenishment
Shopping  Category $
Occasions Dash for Deals  Channels Used
Stock up  Key Influencers/
Touchpoints
Treasure Hunt
Special Treat
Understand the + Offer a relevant + At key “Moments = Increased foot
“Shopper solution to of Truth” in traffic and market
Landscape” shoppers their Journey baskets
38

39. Understanding shopper occasions benefits all key stakeholders: a win-win-win
Better shopping
Shopper experience
Increased brand Manufacturer/ Increased foot traffic
purchase and loyalty Brand Retailer and market baskets
39

40. Jeffrey Maloy, Senior Vice President
(203) 831-2375
Jeff.Maloy@copernicusmarketing.com