Sharp has introduced us to evidence-based marketing Ritson said it - - PowerPoint PPT Presentation

Sharp has introduced us to evidence-based marketing

…their slides weren’t very cool and they lacked a trademark outfit or funky haircut, but they had their impact on marketing nonetheless.” “Evidence-based marketers brought rigour and prowled the stage at conferences around the world…

Ritson said it was the only book in the last 15 years that you had to read

Evidence-based approach to Brexit?

1.

Growth comes by gaining more buyers

2.

All brands lose buyers, at a predictable rate

3.

Most brand and category buyers are light buyers

Back to Sharp….

Bottom 15% Next 15% Other Losers Other winners Next 15% Top 15% Volume % change Penetration % change Frequency % change DECLINING CATEGORIES GROWING CATEGORIES 1920 categories across 7 countries

Sharp’s laws hold true for categories

Buyers Non-Buyers High loyal Low loyal High frequency Low frequency

A traditional segmentation

Buyers Non-Buyers High loyal Low loyal High frequency Low frequency

Sharp shows growth is all about non-buyers!

Category Purchases Retained Purchases

For any retailer, retained purchases from category buyers will decline year-on-year

Category Purchases Regular Purchases First Purchases Repertoire Purchases

“First Purchases” are required to drive growth

Objective: Understand how suppliers and retailers can best grow categories by winning First Purchases Method: Added Purchase Outcomes™ to categories from the Shopper Intelligence database in the UK

13,000 Purchases; 25 Categories; 5 channels Category DNA, Shopper Satisfaction, Path to Purchase

1 in 10

category purchases were First Purchases 79% Repertoire 11% Regular

92%

• f First Purchases were made by shoppers who had

bought the category previously at another retailer

80%

• f First Purchases were made by shoppers who

regularly shop at the retailer

Younger

First Purchases were more likely to be made by younger shoppers

Smaller Trips

First Purchases were more likely to happen outside of the Main Shop

Unplanned

Nearly 40% of First Purchases were triggered in-store

½

• f First Purchases involve shoppers buying a brand

they haven’t bought previously

Display

was more than twice as likely as price to trigger a First Purchase

1 in 3

First Purchases were picked from a secondary display (twice as many as for other purchases).

< 40%

• f First Purchases are made on price promotion,

similar to other purchases.

just 1 in 10

First Purchases of a category are made because of a price promotion

Specific Occasion

First Purchases were more likely made for a specific

• ccasion, rather than for ‘stocking up’

Ease of Shop

Shoppers making a First Purchase were looking for navigation to be improved, and suggested FEWER choices!

mmm

▪

First Purchases are essential for category growth

▪

• c. 10% of category sales; need to increase to grow

▪

Disproportionately important in longer term

▪

Often involve first purchase of a brand

▪

Clear opportunity for enlightened brands to collaborate with their customers to win First Purchases

▪

Shopper Intelligence data helps target First Purchases:

i.

Existing shoppers; younger

ii.

Shopping for a specific occasion

• iii. Not on main shop

iv.

Display triggers purchase; promotions less important

v.

Less is more – make it easy!

▪

Display is critical to First Purchase of category & brand.

▪

Assess cost of display vs value of First Purchases

Example: Small Trip, Shopping for Dinner

Store Entrance

Recipe Card

Zhoug

No idea what it is but it ended up in my basket!

▪

Shopper Intelligence data helps target First Purchases:

i.

Existing shoppers; younger

ii.

Shopping for a specific occasion

• iii. Not on main shop

iv.

Display triggers purchase; promotions less important

v.

Less is more – make it easy! ✓ ✓ ✓ ✓ ✓ ✓ ✓

Other First Purchases in my basket