Description
Capturing shoppers and converting them into buyers through a holistic 360 marketing approach
Shopper marketing is becoming an increasing focus for many of the world s major brands. A recent study conducted by Deloitte indicates that the portion of marketing budgets devoted to point-of-purchase activity is expected to reach 8 percent by 2010. Recognising the opportunity to gain a competitive advantage through shopper marketing, manufacturers and retailers are increasing their shopper marketing budgets. While overall marketing budgets are growing at 2 percent CAGR, shopper marketing budgets are growing at 21 percent and 26 percent CAGR for manufacturers and retailers respectively. Manufacturers are critically evaluating the effectiveness of trade promotion spending and are optimising investment effectiveness. Retailers, on the other hand, are investing more in redesigning their stores and improving their customer experience as part of their shopper marketing initiatives. Retailers and manufacturers realise the store s potential as a strong marketing medium, and are now targeting shoppers in an effort called shopper marketing . Shopper marketing is essentially the big picture of what next generation category management is able to achieve and that s only possible through the collaboration and convergence of marketers. It is crucial that firms think ahead and embrace shopper-centricity, beginning with the synergy of all marketing functions using shopper insights to innovate product offerings, product adjacencies, in-store environments, formats and more in order to increase basket size, improve brand differentiation and raise loyalty.
