Latest News from POPAI.co.uk

It's about you: shops reach beyond the till

Fri, 20 Aug 2010 00:19:59 GMT

RETAILERS are investing in increasingly sophisticated marketing strategies to make it harder for shoppers to hold their cash.

A study, the first of its kind, has revealed that about a third of retailers have used strategies that go well beyond point-of-sale marketing and in-store promotion.

Dubbed ''shopper marketing'', the strategies include in-store media and theatre, digital and electronic displays, transit media, websites, social media, more effective lighting and more interactive sampling/demonstrations.

The study, Shopper Marketing: The Journey Begins, was conducted by the Global Association for Marketing at Retail, POPAI Australia and New Zealand and the research firm ShopAbility.

Through face-to-face and telephone interviews and an online survey with industry professionals it found that shopper marketing was still in its infancy in Australia, with two thirds of retailers not yet engaged in it.

Karen Spear, the general manager of POPAI, said shopper marketing was expected to improve the retail experience through enhanced consumer insights and better loyalty programs.

"New marketing trends on the horizon coupled with this greater awareness among retailers will mean that Australian shoppers can expect a much more engaging and exciting shopping experience in the near future," she said.

Nina Hendy
August 20, 2010

Sydney Morning Herald

Blackmores joins POPAI Australia & New Zealand

Thu, 19 Aug 2010 06:24:12 GMT

POPAI Australia & New Zealand are proud to welcome their newest Member, Blackmores.

Blackmores, Australia’s leading natural health brand, improves peoples’ lives by delivering the world’s best natural health solutions, to become peoples’ first choice in healthcare. They achieve this by translating their unrivalled heritage and knowledge into innovative, quality branded healthcare solutions that work.

Their high quality products, reliable free naturopathic advisory service and award-winning website are among the many reasons Blackmores is the most trusted name in natural health.

For more information, see their website at www.blackmores.com.au or see the Member Directory under 'B’.

Australian Retailers: Are Your Promotions Really Promoting Your Brand?

Sun, 08 Aug 2010 23:56:07 GMT

Richard Reeves, Associate Director – Consumer Research, The Nielsen Company, Australia

Brand promotions are vital weapons in the sales and marketing arsenal, whether they are price discounts, multi-buys or additional quantity. In Australia, it is estimated that up to 30% of all grocery purchases are made on promotion and trends indicate that this could increase among key retailers. This proportion is similar to the U.K., where one-third of groceries are bought on promotion.

Nearby, our New Zealand kin are serious about promotions, with almost half (46%) of all grocery purchases being bought on promotion – reflecting the strong historical value focus of this market.

Just as there are differences between countries when it comes to promotions, there are even greater differences by category – this can range anywhere from 25% of volume being sold on promotion in one category, to a staggering 75% in another!

Clearly, for the manufacturer and retailer, promotions represent significant investment in time and money. So, the question is, how do these promotions affect the Australian shopper and what strategies or tactics can be employed to increase their effectiveness?

The Australian Shopper
Nielsen research has shown that the impact of the global financial crisis caused Australian consumers to re-assess how they spend and shop. We have witnessed a fundamental shift in shopper sentiment from the spendthrift, debt-driven early 2000s to a greater sense of caution and restraint post crisis. We have seen the rise of the “savvy shopper” who is happy to buy private label in one category and premium priced brands in another. We have also seen private label products being launched successfully in more and more categories. It would appear shoppers are becoming more willing to try and stick with these products where they perceive them to be just as good or just plain good enough.

Shoppers are increasingly using coupons and visiting more stores during their shopping trips as they search for the best value. This behavior has been observed in Australia with shoppers increasing their store repertoire. Furthermore, 30 per cent of Australian shoppers claim “they will still look for cheaper grocery brands even though the crisis is over” (Nielsen Global Consumer Confidence Survey, June 2010).

Given the shoppers’ search for value, a promotional strategy looks to be an excellent response. However, relatively speaking the Australian shopper is less sensitive to promotions than shoppers in other countries.

We see in this chart that nearly half the shoppers claim promotions rarely change their brand choices, or they only buy promotions when they already like the brand.

Click here to see chart

It is a minority who claim to regularly buy different brands because of promotions. These results are congruent with the view that shoppers tend to have a limited number of brands that they buy regularly even if their total repertoire is quite broad.

Australian shoppers’ knowledge of the prices they pay is relatively weak with nearly half unsure of what they actually pay.

Nielsen research has found that in some heavily promoted categories such as beer and bread, (among consumers who have some knowledge of price); shoppers believe the promoted price is the normal price – not the shelf-price. So, it appears that the number and frequency of promotions has fundamentally shifted shoppers’ price perceptions.

There is also strong evidence that shoppers are aware that another promotion ‘will be along in a minute’ and are willing to wait. This can be seen across the grocery channel and in other areas such as the petrol market with the “cheap Tuesday” phenomenon, the automotive equivalent of pantry stocking, i.e., filling the tank.

So what options are open to the manufacturer in the face of these almost contradictory behaviors of the shopper, that is, being value-focused, but uncertain of the shelf price? We all know sales increase when brands are promoted, but are these additional sales profitable and is the promotion actually supporting the brand?

Key Considerations for Promotions

1.Is the promotion a tactical response to competitor activity? For example, is it a response to a new entrant into the category; or is it to take advantage of above-the-line support? The strength of the brand’s equity and percentage of volume sold on promotion versus its shelf price need to be understood. Relatively speaking, stronger brands tend to sell more at full price than their weaker competitors.
2.Does the promotion increase the number of households buying the brand (household penetration) or does it increase the amount spent on the brand per household (Average Weight of Purchase – AWOP)? If it is the latter, the promotion may be rewarding loyal buyers and protecting share, but may undermine a brand’s price premium in the long term.
To understand if the additional sales are coming from new households (increased penetration) or increased AWOP, one needs to use actual purchase data from services such as Nielsen Homescan.

Nielsen has found in a number of categories that there are a proportion of shoppers who only buy on promotion. We have seen this group to be as high as 60% in some categories. While shoppers are loyal to specific brands, when their preferred brand is not on promotion it’s likely a competitive brand they know and may be partial to is. The role of the preferred brand in this situation is to ensure the competitor is only considered and not purchased.

This presents a dilemma for the brand. Above-the-line support may be needed to help reinforce the brand and its unique position, but if funds are diverted from in-store promotional support, it will lose significant share. Innovation within the category may be the only way to break the promotional cycle.

Additional Considerations

How does the brand repertoire change when on and off promotion?
What is the depth of the price cut, and how deep does it need to be to be effective?
Is it better to have more frequent promotions with smaller price reductions or the opposite?
Is the promotion reflective of historical practices? For example, if the brand has always had a promotion at Easter. Is this really the best time for the promotion?
Is the promotion communicating the right message about the brand?
And finally, will the promotion generate additional profit, as well as generating additional volume?
We know shoppers are looking for value, or at least value among their preferred brands, so communicating the promotion and using the best triggers is vital to maximize its impact. Therefore, are gondola ends and shelf labels enough to drive awareness of the promotion; or is it worth considering additional communication channels?

Given the importance of promotions, it is vital to treat them with the respect they deserve, as their correct use can drive the brand and profitability. Conversely, ill-considered promotions can weaken a brand and undermine a company’s bottom line. So, the question remains: Can you identify what purpose your promotion is serving?

AFI Branding Solutions joins POPAI Australia & New Zealand

Thu, 05 Aug 2010 06:53:18 GMT

POPAI Australia & New Zealand are proud to welcome their newest Member, AFI Branding Solutions.

AFI Branding Solutions is Australia's leading manufacturer of fabric signage and fabric products to the Corporate, Retail, Events and Marketing sectors. AFI manufacture all products in-house and continuously monitor production to ensure perfection. Keeping it all in-house ensures greater quality control, improved accuracy and faster and more efficient turnaround times. And with an constantly expanding product range and market-leading products available in Australia and New Zealand only through AFI, you're guaranteed of endless possibilities on fabric.

For more information, see their website at www.afibranding.com.au or see the Member Directory under 'A’.

Retail Logic joins POPAI Australia & New Zealand

Wed, 21 Jul 2010 01:06:05 GMT

POPAI Australia & New Zealand are proud to welcome their newest Member, Retail Logic.

With over 40 years retail presence expertise Retail Logic ensures their customers’ success in sales execution by providing world class integrated presence solutions.

Retail Logic will ensure your business benefits from:

- Integrating Category drivers into retail presence
- Innovative designs at global best pricing
- Shopper, retailer and sales force efficient solutions.

For more information, see their website at www.retaillogic.com.au or see the Member Directory under 'R’.

Is Walmart's Project Impact Close To Being Pulled?

Wed, 14 Jul 2010 00:16:01 GMT

Walmart officials say they haven't given up on Project Impact, a plan to cut clutter by reducing the number of items in stores, but they are fine-tuning it. However, increased merchandise displays and promotional items stacked on in-aisle pallets hark back to the days of founder Sam Walton bringing the initiative into question.

Move people to buy more!

Tue, 06 Jul 2010 01:57:13 GMT

The first book on and about displays.

For this reason, POPAI Australia & New Zealand member, STI Group has published “Move people to buy more”, the first-ever book about displays, with publishers Deutscher Fachverlag. The 300-page book will be presented for the first time during the “Deutscher Supermarktkongress” conference in Wiesbaden on 15 and 16 June 2010. Read more...

Mobile coupons help retailers track customers

Wed, 30 Jun 2010 06:46:41 GMT

Last month, Tara Kuczykowski walked into a Target store in Columbus, Ohio, pulled out her mobile phone and handed it to the cashier.

The cashier scanned the digital coupon on the phone's tiny screen, and Kuczykowski got $1 off sandwich-size Ziploc bags. Target got something, too: another entry in its database about her.

Invented over a century ago as anonymous pieces of paper that could be traded for discounts, coupons have evolved into tracking devices for companies that want to learn more about the habits of their customers.

Although they might look similar to the ones in Sunday newspaper circulars, many of today's digital versions use special bar codes that are packed with information about the life of the coupon: the dates and times it was obtained, viewed and, ultimately, redeemed; the store where it was used; perhaps even the search terms typed to find it.

A growing number of retailers are marrying this data with information discovered online and off, such as guesses about your age, sex and income, your buying history, what Web sites you've visited, and your current location or geographic routine -- creating profiles of customers that are more detailed than ever, according to marketing companies.

The department stores, grocery stores and fast-food outlets that have begun to use mobile marketing say this information will allow them to provide customers with truly useful, personalized offers in a world where they are constantly bombarded with advertisements.

Originally from Las Vegas but traveling in Seattle? Sears might suggest you pick up an umbrella. Didn't notice the two-for-one sale on rubber-band balls even though you had searched for them online earlier in the day? The office supply store might send you a message suggesting you turn back to aisle 10. So bored of turkey sandwiches that you haven't gone to your regular lunch spot for weeks? The restaurant might beam you an offer for 20 percent off.

"The big advantage of mobile coupons is the convenience, because your phone is like your underwear -- it goes everywhere you go," said Luke Knowles, founder of Coupon Sherpa, which partners with retailers to offer discounts through mobile phones.

There's a trade-off.

"The convenience provided by mobile coupons comes at a price: your privacy," said Jeff Chester, executive director of the Center for Digital Democracy, a Washington-based public-interest group.

The government is still trying to figure out to what extent mobile marketing and the practice of what's known as "behavioral targeting" need to be regulated. Although companies have argued that none is needed, a number of consumer advocacy groups have called on the Federal Trade Commission to create guidelines that would require mobile marketers to reveal what personal information they collect and how they use it.

Pioneers on the phone

Companies such as Starbucks, McDonald's, KFC, Office Depot, CompUSA, Zales, Gap and Planet Hollywood have experimented with mobile marketing for several years, but only recently have some begun to roll out national campaigns as sales of Apple iPhones, Google Androids and other smartphones with screens have surged.

The campaigns are in the early stages, and there's no uniformity in how mobile marketing is done, although nearly all the programs are "opt-in," meaning that you have to sign up. To enroll, you usually only have to send a text message such as "COUPONS" to a special phone number or sign up on a Web site, although some companies require you to download an application onto your smartphone.

Target in March became the first to roll out scannable mobile bar code coupons at its 1,750 stores nationwide. Each month, it offers five coupons on such essentials as sunblock and cereal.

Target's terms and conditions for its mobile coupons service notes that it can collect "your cell phone number, your carrier's name and the date, time and content of your messages." A spokeswoman for Target clarified that it means the company "reads the content of messages sent to Target in order to fulfill guest requests."

The company, she noted, also has an extensive privacy policy that applies to desktop and mobile browsing and details how Target uses cookies to identify how a specific user is using its site, may merge that with information from "other sources" and share the information it collects with "carefully selected" third parties.

Also in March, J.C. Penney unveiled weekly mobile coupons that contain a special code that cashiers must type in; the offers, which have included $10 off on a $50 purchase, are similar to those you might get in your mail or e-mail. And Sears and Kmart have launched mobile shopping sites that promote location- and weather-based items such as Chicago Bulls T-shirts for those in Illinois and power generators to those who have just been through an ice storm.

Beam up savings

Within a month or so, coupon lovers will be able to walk into a national fast-food chain and shake their mobile phones near a cash register to beam over discounts through a system created by CopiaMobile, a Scottsdale, Ariz.-based startup.

Companies are loath to talk about what kind of information they collect and analyze, but Knowles of Coupon Sherpa said that up to 10 to 15 pieces of information -- from what search term you typed in to your phone number -- could be passed to a store from the bar code of a mobile coupon.

Some companies are combining offline demographic and purchase information with online data such as search history to categorize each customer into one of 67 groups, said Karen Greenberg, vice president of sales for CopiaMobile. One system of consumer segmentation -- which includes categories such as "Park Bench Senior," "Young Digerati" and "Heartlander" that were pioneered by a company bought by Nielson -- is a de facto standard among marketers. But until a boom in the amount of information available to marketers thanks to the Internet, the categories were typically applied to Zip codes rather than specific people.

Many companies have the technology -- and customers' permission, thanks to the privacy policies that users accept routinely without reading -- to track minute details of people's movements but have held off from revealing how much they know with marketing offers that might come off as invasive.

"We can already tell if you are near or inside a store and can give you particular offers, but that's the kind of thing we're moving fairly cautiously on so that the user can get to know us and trust us first," said Robert Drescher, chief executive of Cellfire, a San Jose-based mobile coupon company that works mostly with grocery store chains such as Safeway, Kroeger's, Vons and ShopRite.

Even Kuczykowski, a tech-savvy 34-year-old mother of five children younger than 9, isn't exactly sure what she's giving up for the coupons. She said she's comfortable allowing companies to collect all sorts of information -- her age, location, even her children's ages -- but even she draws a line.

"I would be concerned," she said, "if they get very granular and are tracking me specifically."

By Ariana Eunjung Cha
Washington Post Foreign Service
Sunday, June 27, 2010

Marketing at Retail Innovations Set to Transform How Australians Shop

Mon, 28 Jun 2010 08:16:10 GMT

Shopping is set to become even more exciting and enticing for Australians over the coming years as retailers adopt the latest Marketing at Retail trends and innovations from around the planet.

Brands and retailers all over the world are discovering and implementing new ways to appeal to consumers with in-store innovations such as theatre, sound, new technology, digital media and the integration of sustainable retailing.
POPAI Australia and New Zealand General Manager, Karen Spear, said these trends are evolving the global retail marketplace and permanently shifting consumer behaviour.

“The economic climate has made consumers not just cost-conscious but also focused on every aspect of the shopping experience. The world’s strongest retailers are responding by becoming more customer-focused in order to deliver a better retail experience for the shopper,” Karen said.

Retail chains are now making an effort to customise the shopping experience and tailor merchandise assortments to different markets. “The Adidas flagship store in Paris developed the ‘mi Adidas’ concept which allows consumers to create their own shoe or jersey in-store, enhancing the shopping experience and long-term engagement with the brand,” Karen said.

Green has become the new black in retail with mainstream brands such as L’Oreal and Etnies adopting green retailing strategies to help reduce their carbon footprint and cut display production and set-up costs.
“There is great innovation in the use of different materials with a particular move towards sustainability where designers are re-working disused materials into life, creating amazing display units. POPAI has been focused on sustainability for the past few years as this will become the future of retail and Marketing at Retail,” Karen said.

In the US and Europe, there has been an increase in interactive displays and digital screens providing consumers with a rich source of information and helping them better understand the product or service they are seeking.

POPAI Board Director and Pepsico’s Trade Marketing Manager, Debbie Schubert, said Nestle Maggi demonstrated the evolution of technology into mainstream grocery environment through home activation. “A simple LED screen was incorporated into their in-store display which interactively showed shoppers recipe ideas and cooking tips using Maggi products. The information can be updated and changed to suit the market and timing,” she said.

Brands worldwide are also implementing in-store theatre to help increase sales and improve customer loyalty while creating a vibrant retail atmosphere and stronger in-store presence. “In-store theatre is essential for creating eye-catching displays and no one does this better than the cosmetic houses where budgets and sheer artistry are combined to tempt and seduce the shopper,” Debbie said.
Before Australians even begin to see these innovations hit stores, brands and retailers need to shift their focus from just selling their products and think more about shopper-centric solutions.

“A strong global trend is the need to link occasions with brands rather than focus simply on what the brand has to offer. Triggering occasion stimulates the shopper and offers solutions to an existing need when they are ready to purchase,” Debbie said. The current global trends offer potential insights for brands and retailers in Australia that will enable business growth and prosperity in an increasingly competitive retail environment.

“There are plenty of opportunities for Australian retailers to engage customers further with creative in-store marketing,” Debbie said. “The integration of a Marketing at Retail strategy is vital to the success of the overall brand marketing campaign because Marketing at Retail provides the horse power that turns positive purchase intent into a sale,” she said.

For more information on how your business can become a member of POPAI, go to www.popai.com.au or call 02 9984 9322.

CPI Graphics joins POPAI Australia & New Zealand

Mon, 28 Jun 2010 07:25:18 GMT

POPAI Australia & New Zealand are proud to welcome their newest Member, CPI Graphics.

For more information, see their website at www.cpigroup.com.au or see the Member Directory under 'C’.