ShoppersMarketing | Retail Sales Accelerator

Shopper Marketing Part 2

The PMA Shopper Marketing Study: Part II
May 26, 2008

PLAYING CATCH-UP
Almost two-thirds of the retailers said they had been practicing shopper marketing for more than five years, while only one-third of manufacturers said they have been involved as long. This could be key, since retailers seem to prefer working with manufacturers who are aligned in their marketing plans and strategies, possess shopper marketing competence and can deliver powerful shopper insights and exclusive programming.

Joint planning is a key component to successful collaboration between retailers and manufacturers. One out of three retailers reported that they do not practice joint planning with their vendors because their planning cycles do not coincide, although less than 10% of manufacturers had the same issue. It may be that there is a difference in perceived importance, as manufacturers reported that they are more than twice as likely to have SVP/C-suite personnel attending shopper marketing presentations as retailers were (35% vs. 16%).

On the positive side, manufacturers who have practiced shopper marketing longer were more likely to be planning with their retailers further in advance. Nearly twice as many retailers as manufacturers reported that they were striving to plan together more than 12 months out (22% vs. 13%); at the same time, almost twice as many manufacturers as retailers said that they were working a bit closer in, six to 12 months from launch (61% vs. 33%).

Anecdotally, there is nearly universal agreement that shopper marketing is driven by insights, and shopper insights are an area where collaboration is often missing. While a high percentage of manufacturers (two out of three) report that they are conducting primary quantitative and qualitative research to better understand shoppers, the same two out of three felt that their shopper insights could be stronger (although four in 10 felt they have a “good understanding” of their retailers’ shoppers).

In general, both sides feel that it is primarily the manufacturers’ responsibility to bring shopper insights to the planning table, though a good portion of manufacturers want to see more shopper insights coming from retailers. Four in 10 manufacturers feel that they alone have the primary responsibility for bringing insights to a joint planning exercise, while only one in seven retailers feel that manufacturers bear this responsibility. Nearly half of manufacturers see bringing core insights to the planning table as a joint responsibility, while just over one-fourth of retailers agree. Well over half of retailers (57%) feel that the primary responsibility for bringing insights to a joint planning session should be theirs alone, while a mere 4% of manufacturers agree.

Shopper marketing planning cannot be disconnected from the business units’ strategic planning process. The No. 1 change that manufacturers plan to improve is requiring that shopper marketing initiatives are an integral part of the annual planning process. In today’s world of integrated marketing, certainly the strategies and plans for the “First Moment of Truth” must be integrated into the brand’s and banner’s strategic plans.

For more Shopper Marketing coverage:
Part I: Desperately Seeking Collaboration
Part II: Playing Catch-Up
Part III: Shopper Segmentation Not Well Known