Collaboration Key in Shopper Marketing: PMA Study

Collaboration Key in Shopper Marketing: PMA Study

When it comes to shopper marketing research, few retailers and manufacturers refute its benefits. But what’s needed is closer collaboration between the two groups, according to a recent study by the Promotion Marketing Association.

The study found that 60% of respondents practice shopper marketing. Of that, 75% of retailers said some of their competitors are also using the research.

The PMA defines shopper marketing as having three main components: a program that is based on consumer insight and how their behavior can be influenced; something that reaches consumers when they want to shop or are shopping and something that requires a teamwork approach with retailers and manufacturers. The study was handled by the PMA Shopper Marketing Center of Excellence and Nielsen Business Media.

Collaboration emerged as the top theme in the findings, which were released yesterday. Both retailers and manufacturers said they want to work closely to match their objectives and run programs to maximize the potential. But it will take some work, the study found.

Of the retailers who said they were collaborating with vendors around shopper marketing, two-thirds received sales increases and profitability improvements. Manufacturers said they had an increase in sales, enhanced brand equity and built stronger retailer and consumer relationships. Another two-thirds of manufacturers also realized enhanced profitability, the study said.

Based on those results, there’s a demand for the programs, according to the study. Some 78% of respondents said they don’t see enough of the programs available and are seeking more. Nearly six in 10 manufacturers said that retailers are offering more support to shopper marketing programs versus one year ago. Likewise, one-third of retailers reported that they are seeing more support from manufacturers compared to a year ago.

While retailers and manufacturers agreed that increased sales are a top objective in shopper marketing, they differ in other goals to launch such programs, Rick Abens director advanced analytics, ConAgra Foods, Global Marketing, who co-led the research as the PMA’s vice president of research, said.

“Many are coming at it from different perspectives in terms of why they initiated their own shopper marketing programs,” he said. “Manufacturers (22%) said they wanted to improve relationships with their retailers. But none of the retailers had as a reason for shopper marketing to improve their relationships with manufacturers.”

Some 31% of retailers cited the need to strengthen consumer relationships as their top reason, but less than 10% of manufacturers had the same goal, the study said.

“We see a need for a better bridge,” Bonnie Carlson, PMA president, said. “There is a greater need toward better understanding and better execution.”

Shopper insight remains key. Two out of three manufacturers said they are conducting quantitative and qualitative research to better understand shoppers, but admit that insight could be stronger, the study found. Manufacturers and retailers said they believe it is up to manufacturers to bring shopper insights to the planning table, yet a number of companies said they want more of that information to come from retailers, it said.

The research, the first for the PMA, is part of an ongoing project.
The PMA offered seven tips to help achieve shopper marketing success.:

* Get retailers and manufacturers to embrace the idea of joint planning.
* Set a date to evaluate the program in advance.
* Integrate consumer insights in your work. Consider joint focus
groups, or investing in research to validate those findings.
* Use a common language that retailers and manufacturers, alike, can understand to achieve your goal.
* Find a common strategy for your objectives.
* Plan ahead (15 to 18 months out).
* Make a commitment and share the work equally.

The online survey was sent to 13,000 people in March, generating a 1% response rate.