Shopper Marketing Expenditures Expected to Rise

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

November 17, 2010

Over the next three years, 83 percent of food, beverage and consumer product manufacturers plan to increase their investments in shopper marketing, according to a new report from the Grocery Manufacturers Association (GMA) and Booz & Company.

A majority of companies (55 percent) rank shopper marketing as their number-one investment and will boost spending by more than 5 percent annually.

The report, titled “Shopper Marketing 4.0 Building Scalable Playbooks that Drive Results,” also found that 62 percent of shoppers search for deals digitally before at least half of their shopping trips. This highlights the urgent need to identify the most effective shopper marketing strategies for engaging consumers along the entire path to purchase, not just in the store, according to GMA and Booz.

Key findings of the study revolve around identifying which shopper marketing vehicles are most effective at achieving various marketing objectives along the path to purchase:

• When looking to build brand awareness and consideration, platforms such as sponsored results and thematic content on manufacturer and retailer websites are most effective.
• In-store displays, deal platforms (coupons, circulars, etc.) and personalized emails are most effective when increasing product trial and purchase is the objective,
• The most effective vehicles for building brand loyalty are of the digital variety: newsletters, word of mouth programs in social media, and virtual displays linked to search results.
• Mobile vehicles are earlier in their lifecycle and show significant promise across different objectives: barcode scanners for awareness, price comparison for action, and mobile commerce apps for loyalty.

“Imposing order on the vehicle proliferation in shopper marketing is an important task, but shopper marketers shouldn’t lose sight of the crucial role that capabilities play in getting the most leverage from the vehicles at their disposal,” says Matt Egol, partner in Booz & Company’s consumer, media and digital practice. “Even the most creative and insightful playbook cannot deliver ROI and brand health if the shopper marketing organization cannot successfully execute it.”

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases