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 ShelfSnap Newsletter  
Volume 16  
Shopper Marketing In Store Execution
The 2009 GMA study on Shopper Marketing 3.0 states:  "Although many shopper market­ing programs deliver a demonstrable return on investment (ROI) that is higher than other marketing alternatives, the incremental profit impact of most programs goes unmeasured, and efforts to create accountability for shopper marketing investments remain ad hoc even in companies that are committed to measuring results.  This measurement gap makes it very difficult to decide where to focus investment across the range of potential shopper marketing initiatives both out-of-store and in-store, as well as to establish priorities for the marketing mix overall."  Part of this measurement gap is an understanding of the in-store delivery.  What are these shoppers really seeing? 

The store is the only place a shopper can actually become a buyer.  Usually the in-store components include:  
  • Either temporary or permanent signage.
  • Temporary or permanent display.
  • Temporary pricing.
  • And, perhaps some sort of racking or shelf organizers.
    •  
As Churchill used to quip:  "However beautiful the strategy, you should occasionally look at the results." Sooo . . . 

ShelfSnap looked back at a number of these events during both the initial implementation and after permanent programs had been in place for a while. All of these events occurred in top 25 grocers. Here is a sample of what we found: 

Baking products stocked in branded organizer racks.

Chain A:  
  1. Three different types of racks were used.
  2. Two percent of the racks were installed backward.
  3. Thirteen percent of SKU facings were stocked outside the racks.
 
Baking Rack 3
 
Chain B:
  1. Fifteen percent of the branded rack facings were occupied by private label product.
  2. Five percent of rack facings were OOS.
 
Chain C:
  1. Three different rack systems were used across the chain.
 
 
Chain D:
  1. Ten percent of the stores had no racks at all.
  2. Twenty-six percent of the facings were used for private label.
 
Permanent snack section blades as a part of shopper marketing efforts.

Chain A:
 
  1. Twenty-five percent of stores did not display the section blades.
  2. Two types of signs:
    • Branded in 20% of stores.
    • Retail banner in the other 80% of stores.
  
Branded shelf racks.

Chain A - permanent shelf racks in snack section: 
  1. Thirty-five percent of stores had branded shelf racks.
  2. Twenty-five percent of stores had racks which were broken.
 Chain B:  
  1. Forty-eight percent of stores had manufacturer racks.
  2. Forty-two percent of stores had retailer branded racks.
 
Retailer Branded Rack
 
In each of the many cases reviewed, the pallets, trays, racks, organizers and the like were supposed to have gone into each store, supposed to have been set up, and in the case of the permanent items, supposed to have been maintained.  

Not surprisingly the performance here mimics the performance serious industry practitioners have witnessed for years when measuring compliance for trade promotion, planograms maintenance, and new item introductions. Why would we expect any different results? 

ShelfSnap reviewed a recent multi-media, national shopper marketing program tied into a health issue.  In one account the investment for signage, store visits and displays of newly labeled products was about 1 million dollars.  The expected incremental return was substantial.   While materials, personnel and product were shipped to all of the stores targeted in that chain, only about 60% fully participated.  Another 20% put up some signs but no displays.  The net impact was a 70% execution but the impact on ROI was that it generated less than half the expected rate.  And that was just the short term impact.  

According to Shopper Marketing 3.0:  "Absent a means for developing, sharing, and applying practical shopper insights, and especially for measuring results, shopper marketers in both manufacturing and retailing will begin to run into brick walls. They won't be able to convince their own companies or their trade partners to invest in collaborative initiatives.  Further, they will be increasingly exposed to the risk that their companies will choose to deploy funds and management bandwidth to other opportunities that offer less complexity and more transparency into results." 

Compliance data are considered foundational to the ability to evaluate shopper marketing. 

Make compliance measurement part of your Shopper Marketing program discipline. Shoppers cannot become buyers unless they are exposed to both the program, and the products featured in the program.  Please email
Cyndi.Metallo@ShelfSnap.com or call 847-996-1077.
Measure Twice - Profit at Once

Merchandising compliance has been a problem for so long that some people have concluded that it cannot be solved.  ShelfSnap assembled a Blue Ribbon Panel of the CPG Industry's deep thinkers who have determined that store compliance issues can now finally be solved!  With names like Bishop, Harris and Weber this panel represents the most perceptive, innovative and accurate thinking on all subjects where brand, banner and buyer intersect . . . at the shelf, display or the in store marketing event.

 "I cannot think of an opportunity that will return a bigger ROI (than fixing compliance).  Perhaps Shopper Marketing, but that requires excellent implementation as well!
                                                    B Harris         
                                             Dr. Brian Harris
 
Request a copy of the white paper - Measure Twice, Profit at Once.
ShelfSnap IS Really Cool!
 

ShelfSnap has been selected by Gartner, Inc. as a Cool Vendor in Consumer Goods 2010!  Gartner provides world-class, objective insight on virtually any area of IT based on a rigorous research process which provide the foundation for unbiased, pragmatic and actionable insight. 

 

We at ShelfSnap couldn't agree more!

Panther Mountain Consulting

good bob

 

You have spent millions building your brand.  Now you have been marginalized by SKU rationalization and price erosion.  Well, you are not the only one orphaned from the shelf.  So are your consumers!

 
We can help.
Panther Mountain Companies, LLC
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