In general, people are more likely to act on face-to-face product recommendations, versus those sent via social media.  While this holds for youth, they are more likely to act on all types of recommendations, especially from close contacts, regardless of mode used to receive the recommendation. 

Fundamentally, effective experiential marketing should have a compelling consumer focus which can often lead to increased word-of-mouth for participating brands. Social media can be effective at facilitating WOM among youth, as it is integral in their lives and it does not lose impact like it does for adults.

To view the actual case study statistics, broken out by both age (youth versus adults) and by whom (friends, family and acquaintances), please click on the links below for the full article.

For more information on the EMF, visit http://www.experientialforum.com/ where you can join to receive regular updates on the latest experiential news, research and insights.  The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.

Recently on the EMF posts, there has been a lot of reference to a change in consumer buying habits as a result of the economic conditions in recent times.  One such article referenced from Comscore suggests consumers are trading down in price and becoming less loyal to National brands.  Just last week, another EMF post referenced an article from the Globe & Mail suggesting consumers consider short-term reward more strongly than the long-term gains. Thus consumers are irrational, and it has been argued that this emotional context needs to be overlaid to more rational economic models.

These two articles provided impetus to share with the EMF membership what we at IMI International have learned about changes to consumer buying habits from a proprietary study we fielded called “Building Your Brand in Turbulent Times”.  We asked some questions that could be benchmarked versus more “normal” times in 2007, fielded during the ‘dark days’ of  January 2009 and followed up again in early 2010 to see which of these changes have a lasting effect.

First, our study agreed with both the articles referenced above:  

i)        Consumers are indeed trading down to the lowest price more often now than in 2007 (for details, please see the June 2010 EMF/IMI research article in the members section on the EMF site or on IMI International’s Downloads page). 

ii)       What is interesting, however, is the consideration of “short-term reward” in this environment.  Consumers have also increased their consideration for the “best quality”—while this seems inconsistent, consider that there has also been a consistent increase in the attitude that it is “worth spending more time to be a smart shopper”.  

iii)     Another finding reflects a return to the importance of Brand Name products versus price considerations, after a dip in 2009.  

Some other category studies we have done at IMI International (from snack food to autos) lead us to conclude that some of the switching to low priced alternatives may not have turned out so well, and the consumer has learned from this experience.  For bigger purchases, you’ll know this as “buyer’s remorse”. 

One of the key pieces that was missing for me from the previous articles was a big “Now What” – as a marketer or a person working at an agency, what can I do about it?  This thinking is precisely why we added other questions around value, brand benefits and price (essentially, inputs into the value equation) into our Turbulent Times study.  The conclusions we make provide some clear actions steps for EMF members, as price and value are intricately linked.

To summarize action steps for this audience, we would suggest the following: 

i)                    Do your homework to determine your brand’s unique value proposition.  That is – which brand in my portfolio represents high value, which benefits can I highlight to illustrate added value versus my competition (i.e. ‘washes more dishes’ versus ‘soft on hands’…) and,

ii)                   How can I best showcase these benefits to overcome potential purchase barriers? 

While price discounting is a tactic that can be used, and is always a consideration, it tends to erode brand equity (and ROI/margins) over the long term.  Our consistent learning for over 15 years has illustrated the power of Experiential Marketing as an excellent method to convey new benefits or activate new learning areas, whether it is to overcome a shared barrier or perception, showcasing new value benefits or illustrating new ‘reasons to believe’.   

So, it’s time to act. Consumers are still buying. Our shared challenge is to break through the spending concerns that this economic environment has brought to consumers and make them feel good again, as “smart shoppers”.

For more information on the EMF, visit http://www.experientialforum.com/ where you can join to receive regular updates on the latest experiential news, research and insights.  The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.

Category:          Retail, CPG

Date:                May 2010 

Tactic:              Shopper Marketing News 

In Store Aisles, Less Is More:  But the Right Offering is Important

Description:

Retailers are now reducing the amount of choice on their shelves.  After years of tempting customers with ever expanding arrays of brands, hues, sizes and flavours, they’re racing to simplify their offerings.  The recession has encouraged them to focus on top sellers and private labels while throwing marginal products overboard.

Reducing the number of products can help companies increase sales.  But the process of choosing which products will die can be hit and miss – and retailers risk a customer revolt if they get it wrong.  While picking the wrong products to dump can lose sales, a growing body of evidence suggests that reducing the number of products on the shelf can improve the overall shopping experience.

IMI Implication: 

SKU proliferation has happened since the 1950’s.  This new study suggests providing clear and simple alternative (or shelf comprehension) can decrease decision times and increase basket size.  For retailers, consider the opportunity cost of what shoppers are NOT able to get-and are they may be going to competitive retail to get it.

Source:

http://www.theglobeandmail.com/report-on-business/in-store-aisles-less-is-more-but-customers-can-still-be-particular/article1573518/

As the headline notes, “if women hold so much buying power, why aren’t marketers doing a better job of communicating to them?  Kristin Laird outlines the key ways companies can meet the needs of female consumers”.

Of course, different consumer segments exist within the female consumer segment, so be sure you’re understanding your specific target fully prior to acting on any macro insights.

Women consumers: a snapshot

• 71% are more concerned with price than fashion or trends
• 60% enjoy sampling different brands of similar products (e.g. soft drinks) for the sake of comparison
• 47% are loyal to environmentally or socially responsible brands
• 58% actively look for products that offer coupon discounts
• 65% will encourage friends or relatives to purchase a product she likes
• 62% think store brand products are just as good as name brand products
• 39% say name brand products are a status symbol
• 58% usually purchase the lowest-priced product

IMI International provided Marketing Magazine a number of current consumer insights pertaining to female consumers, as a result of conducting three different studies earlier this year.  The studies provided these latest insights by looking at the attitudes and behaviours of Canadian women consumers 13 to 64. 

To read the full article, please visit Marketing Magazine or click on the link for IMI International’s Downloads page and find the article under the Media section.

For more information on ConsumerTrack™ Insights pertaining to Female Shoppers, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

IMI International’s ConsumerTrack™ Insights Team recently completed its latest study, Brand and Private Label Purchases In A Recovering Economy in both Canada and USA.

This module provides a look into how shoppers are thinking about and buying Branded products and Private Label products in North America, how marketers have utilized these insights to their advantage and what marketing techniques will work the hardest as the economy recovers.

Topics include:

• Identifying the proliferation of private label brands, overall, category-specific and brand-specific,
• Investigating the impact the recession had on private label purchasing and the outlook once the recession comes to an end,
• Understanding why consumers do and do not purchase private label brands,
• Comparing marketing tactics and their effectiveness for name brands vs. private label products,
• Looking at the necessary features that both private labels and name brands must maintain in order for consumers to continue purchasing,
• Identifying current attitudes toward the economy, name brands and private labels and see how they relate to and/or explain current purchasing behaviour, and
• Providing recommendations how to counteract the emergence of private labels as a frequent purchase.

For more information on ConsumerTrack™ Insights, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

Dan knows from extensive experience that shopper marketing is a compelling, integrated approach to meeting consumer wants and needs and instilling a sense of confidence from the moment a brand first starts interacting with consumers. 

During his presentation, Dan will deliver consumer-validated insights, case studies and best practices in order to make your shopper marketing program succeed in a measureable way.

To review a summary of Dan’s presentation, please click here to go to the Downloads page and find the presentation under the “Conferences” section.

The panel topic, “What Will Appeal to Tomorrow’s Shopper: Learn from Representatives Across All Sectors of the Shopper Marketing Industry” is sure to create an active discussion regarding the future of shopper marketing.  

It will be interesting to hear what the panelists have to say, given their varied experience and backgrounds in the experiential, consulting, snack food and research spaces. 

IMI International has extensive experience with shopper marketing and views shopper marketing as the management of the full path-to-purchase cycle.  When done correctly, shopper marketing is a compelling, integrated approach to meeting consumer wants and needs and instilling a sense of confidence from the moment a brand first starts interacting with consumers. 

To learn more about Shopper Marketing and how IMI International can help your brand or agency meet its goals, please contact Dan Hunter at 416-440-0310 ext. 233 or email at dhunter@consultIMI.com.

This Canadian consumer insights module conducted in autumn 2009 looks at a number of topics, including:

• How consumers viewed the recession during 2009
• The effect of the recession on various marketing tactics
• The changing attitudes of consumers and how these can explain the change in marketing tactic effectiveness
• Brand health with 85 brands ranked based on consumer responses
• Brand-specific examples of good and bad tactics used over the last 2 years
• Keys to your marketing success in 2010

This module provides a look into how consumers are thinking, what tactics will work the hardest for you and how brands have utilized these to their advantage.

For more information on ConsumerTrack™ Insights, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

Erik Hauser, founder of the EMF, noted a large gap in case studies, best practice learnings and research-validated insight in the field of experiential marketing.  Thus, the partnership between the EMF and IMI International was born to deliver just that. 

The newest articles focus on experiential optimization and evaluation, including “Optimizing Experiential Interaction Time to Impact Purchases” and “Mass or Experiential – the Cost Per Impact is Equal”.  These articles are now available on the EMF website to members.

For more information on the EMF, visit www.experientialforum.com where you can join to receive regular updates on the latest experiential news, research and insights.  The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.

Over 4,000 curious shopper marketing industry experts packed the 2009 In-Store Marketing Expo from October 6 to 8 at Navy Pier in downtown Chicago.  To complement the large in-store trade component of the conference, IMI International was once again asked to lead a focused learning session on the very latest insights on Shopper Marketing from a consumer perspective.  

The conference topic was focused on the “The Last Three Feet” retail environment:  Its aim was to educate brands, retailers and suppliers on the importance of in-store marketing activations.  Dan Hunter, Partner at IMI International, provided recent consumer insights for session attendees based on a broader perspective focused on driving shoppers “From their Living Rooms to Store Center Aisles”.  

Leveraging IMI International’s marketing database of initiatives and the IMI International Consumer Track™ shopper insights learning module, the session provided a holistic view of the purchase cycle.  From online search and product browsing to influence to in-store purchases, Dan led an hour-long presentation that outlined the areas where shoppers were looking to be intercepted with branded messaging that would later drive in-store purchase.  

Most importantly, Dan provided insights on driving maximum impact ‘cost effectively’ thus maximizing customer lifetime value of shoppers.   

Attendees also discovered: 

• The change to focus messaging on a brand’s “inherent value proposition” due to the economic downturn
• The best ways to engage consumers outside of the retail environment by product category,
• The perspective on “how” customers shop, not just “why” they buy.
• Non-traditional shopping insights including online, retail activations, digital signage, experiential interaction and mobile marketing, plus
• How to drive ongoing loyalty touch-points, including, web, mobile and CRM/loyalty programs and Word-of-Mouth. 

To learn more insights from the presentation, please visit IMI International’s Downloads page.