Shoppers Want Their Packaging “Green”– But What Does That Really Mean?

Published on April 2, 2012 in Jonathan Asher. 0 Comments Tags: , , , , , , , , , , .

Do you love your mother?

The answer to this simple yet loaded question is generally a resounding “yes!” That’s true whether referring to one’s birth mother or Mother Earth. In both cases, most people say they want what’s best for her; but their actions don’t necessarily match their words. Sometimes that’s because it’s simply too hard, other times it’s because they’re not quite sure what to do; or how to do it.

When it comes to “Mother Earth”, we can be of some help – at least with regard to environmentally friendly packaging.

Perception Research Services has been conducting shopper research for the past four years that tracks what shoppers say and do with regard to packaging and the environment. Our latest findings reveal a growing desire to select environmentally friendly packaging, along with increasing frustrations about how to do so.

Last year witnessed a rise in the proportion of shoppers wanting to choose environmentally friendly packaging, and despite the economy, fully half said they are willing to pay more for such packaging. This is especially true of younger shoppers (those under 40).

Importantly, environmental claims on packaging act as meaningful calls to action. Over half of our sample reported that seeing such claims positively impacts their buying behavior.

Fortunately, these types of claims abound. In fact, for the past two years, a majority of shoppers reported seeing more environmental claims when shopping for grocery products.

But, unfortunately, there is evidence that this abundance of messaging may not be providing as much benefit as it could be. Despite so many claims being made, more shoppers stated that:

  • there isn’t enough environmental information
  • they’re confused by all of the different environmental claims
  • they don’t know which package is best for the environment

Of the various claims seen, those having to do with recycling (recyclable, made from recycled material) are both noticed most and have the most impact on buying behavior.  Conversely, the made with less material claim is less influential.

In order to understand more specifically which environmental claims work well on packaging, we conducted a separate study last year assessing eight different claims that exist on various national and regional brands of bottled water.  We evaluated these claims in terms of how meaningful they are to shoppers, as well as how noticeable they are on pack (using PRS Eye-Tracking).

We learned that while “100% recyclable” was the most meaningful message, it was the least noticeable, by far (seen by only 4% of shoppers). None of the claims were seen by more than 30% of shoppers (meaning 70% or more did not see the claims!).

In addition, many of the claims – such as Plant Based, Eco-Shaped and 1% for the planet – were not at all meaningful to shoppers.

Of course, stating that a package is recyclable will only be truly meaningful if shoppers do, in fact, recycle their packaging. In our tracking survey, two-thirds said they recycle packaging on a regular basis – and last year we saw a rise in the proportion of shoppers checking to see if a package can be recycled prior to buying it.

Notably, those who do not recycle said that the single biggest reason they don’t is because they forget to do so. This suggests that messaging could serve as a useful reminder.  Encouraging more recycling would also help bridge the gap between shoppers’ stated concern for the environment (66% very/somewhat concerned) and their level of activity in helping the environment (46% very/somewhat active).

Helping consumers to remember to recycle at home fits nicely with recent efforts on the part of several food and beverage companies in the United States to assume the costs of recycling their packaging after use – known as “extended producer responsibility”. These efforts include setting up recycling collection bins at retailers such as Whole Foods, or at sporting events such as NASCAR.

The reclaimed packaging is re-made into a similar product container, or transformed for some other purpose – such as toothbrushes and razors from plastic yogurt cups, or napkins from paper coffee cups.

As most CPG companies are developing various kinds of overarching “Sustainability” plans which include some considerations for packaging (reducing the amount of material used, using recycled content and/or recyclable or renewable materials), it will be important to align with shoppers’ desires and behaviors, as well as continuing to educate (or at a minimum, inform) them about the efforts that have been made.

With packaging serving as the brand touch point that shoppers notice most, it makes sense that it is a key part of manufacturers’ sustainability programs. It should be noted though, that as shoppers become more active in this area, they are scrutinizing efforts and claims that are being made. These efforts must therefore be handled carefully.

For example, stating that a bottle is made with 30% less material will start to lose its benefit as shoppers wonder “less than what?”. If it’s less than the bottle that was sold over a year ago, that may no longer seem all that meaningful.  This will seem more egregious if the containment properties of the new bottle are not equal to those of the prior version (e.g., if it is so thin that it collapses when opening, thereby spilling water).

If a bottle is recyclable, then stating that message clearly will be compelling.  And if the communication can also remind shoppers to actually recycle the package, then all the better.

Finally, the more complex activities, such as providing plant-based bottles, will require extensive educational efforts – beyond simple on pack messaging – that both inform shoppers about the environmental benefits, as well as reassuring them about the package’s ability to perform.

Shoppers really do want to help the environment but they need help to do so effectively and consistently. While they will not compromise functionality, they are willing to pay a bit more for more for environmentally friendly packaging as long as they understand which packages are better for the environment and are reminded of steps they can take.

In addition to providing meaningful alternatives in terms of products and packages that truly provide environmental benefits, manufacturers can help shoppers by crafting appropriate messages that reassure (e.g., “still 16 oz.”), inform (e.g., “made from 30% recycled content”) and encourage (“100% recyclable”).

It should be noted that while the content of the message is important, so too is the manner of execution. When applied to packaging, care must be taken to ensure that it will be sufficiently visible. If it goes unseen, then all of the efforts to provide environmental benefits could be for naught.

By creating eco-friendly packaging that delivers benefits that shoppers care about, understand, and will make use of, will ultimately reduce waste and lessen the carbon footprint.

And that’s something that every Mother could be proud of!

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher, EVP at Perception Research Services

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

Packaging & The Environment

Published on March 20, 2012 in Jonathan Asher. 0 Comments Tags: , , , .

Shoppers Say: “Please Help Me!”

Shoppers Try To Be Environmentally Conscious But They Struggle With Confusing Messaging

At Perception Research Services we recently fielded a study to uncover shopper’s perspectives of packaging as it relates to the environment. We were surprised by the findings. Shoppers demonstrated that they are interested in choosing environmentally-friendly packaging.  Significantly more shoppers state they would like to choose environmentally friendly packaging compared to 2010 (36% vs 28%), with fully half still willing to pay more (despite the economy). This is especially true of younger (under 40) shoppers.  Over half (59%) of our sample state that seeing environmental claims on packaging positively impacts their behavior (to either buy more of the brands they usually do, or switch to others).

Ironically, while shoppers continue to notice environmental claims at a high level (roughly half state seeing more of them in the past 6 months, just as in 2010), they are increasingly frustrated by the information provided. Significantly more report there isn’t enough environmental information (26% vs 20%), that they are confused by all the different environmental claims (20% vs 12%), and that they don’t know which packages are best for the environment (22% vs 17%).

Importantly, fewer shoppers feel that manufacturers’ motives are primarily honorable (57% vs 61%).  Shoppers are becoming more skeptical of manufacturers behaviors and motives in this area, as more state that companies are increasingly self-serving (enhance reputation; realize profit gains) and show less concern for the environment.

Of the various claims seen, those having to do with recycling (recyclable, made from recycled material) are both noticed most and have the most impact on buying behavior.  Conversely, made with less material is less influential.

In 2011, we noticed a significant increase in shoppers checking to see if a package can be recycled prior to buying it. Since seeing environmental claims positively impacts purchase behavior, it is incumbent upon manufactures to clearly convey this feature.

Fully two-thirds of shoppers indicate that they recycle on a regular basis.   Those who do not recycle claim that the single biggest reason they don’t is that they forget to do so (44%) – suggesting that messaging could serve as a useful reminder.  This could also help bridge the gap between shoppers’ stated concern for the environment (66% very/somewhat concerned) and their level of activity regarding the environment (46% very/somewhat active).

This is a great opportunity for manufacturers to provide truly value-added packaging to their target shoppers by making it more environmentally friendly – primarily in the form of recyclability and recycled content – and clearly communicating these aspects. We have seen that it is vital to get both the message right (what is said) as well as the delivery (how it is executed on pack) – because one without the other will create a missed opportunity.”

In addition, it is becoming apparent that the days of disguising cost reductions (e.g., smaller, thinner packages) as being driven by environmental concerns may be coming to an end, and continuing to do so may test shoppers’ good will.

By creating eco-friendly packaging that delivers benefits that shoppers care about, understand, and will make use of, will ultimately reduce waste and lessen their carbon footprint.

And that’s something shoppers and manufacturers could be proud of!

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher, EVP at Perception Research Services

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

12 Key Concepts

Published on March 13, 2012 in Harvey Hartman. 0 Comments Tags: , , , , , .

Marketers are always on the lookout for trends with traction, so here are 12 trends we believe have legs. Many have been percolating for some time and now represent paradigm shifts in culture as well as in business. In general, how Americans eat has dramatically changed and will continue to change, which in and of itself should be enough to make anyone working in or connected to the food industry take a moment to pause and consider.

  1. Changing Food Culture—Meal Fragmentation: Unlike 50 years ago when primarily mothers dictated norms within the home, today’s households are run as loose democracies where, if they are present, children have an equal say in many household concerns—chief among them, what, where and when the family should eat.
  2. All By Myself—Eating Alone: 44% of adult eating happens alone, with nobody else—friend or family member—present. Many CPG companies continue to market to family occasions, all but ignoring the vast number of adults who are increasingly eating alone, especially meals alone.
  3. Did You Say Meal? Sorry, We’re a Snack Culture: Make no mistake—we are living in the Great Age of Snacking: 48% of all adult eating occurs between meals. Our data suggests that the growing percentage of snacking occasions is primarily a result of changing American eating habits—in this case, the simultaneous, culturally interlinked growth in eating alone and the decline in family eating.
  4. Immediate Food Consumption—My Way, Now Please: Today, adult eating, even kids eating, is increasingly about whimsy and mood. ‘What do I feel like having for dinner?’ is now a legitimate question to ask oneself or one’s family at 3 or 4 PM. More than 11% of all adult eating today includes foods or beverages consumed within one hour of purchase. Immediate consumption is about a long-term shift toward impulsive, unplanned eating of all kinds.
  5. Sorry, June; It’s a Modern Family: While we suspect that meeting June Cleaver today really is as likely as, say, meeting D.B. Cooper, marketers still like to portray and promote to stay-at-home moms and the traditional nuclear family. Who We Really Are: Today’s family really is more like Modern Family: Inter-generational, non-traditional, single parent, unmarried, and multi-ethnic.
  6. Wellness Is Quality of Life: Move over Jane Fonda and Dr Weil; consumers want to enjoy trying to live healthier by seeking a higher quality of life—this translates to all things intersecting with health and wellness—food, exercise, health practices—and having fun doing them. “Health and wellness” is an aspirational lifestyle. Health is no longer a goal in and of itself. Health (and wellness) is about maintaining the ability to enjoy a higher quality of life.
  7. Food Culture—Classes Begin Today: We think that in order to truly understand food and see beyond your category or competitive set, you need to first understand something we call “Food Culture.” Food Culture is the sum total of values, ideas, practices, ingredients, preparations, tools, techniques, actors and everything else that allows us to make sense of the world of food. In short, Food Culture represents everything there is to know about food that lies beyond our own personal preferences.
  8. Nutrition Education—Class Dismissed: While our social focus is seemingly permanently stuck on “nutrition education,” findings both within our firm and elsewhere are so far inconclusive that actions like requiring calorie counts on food service menus actually change consumer purchase behaviors. What consumers really want is help that is relevant to their daily lives—help that inspires their interest in all things food and cooking—not symbols, icons and calorie counts.
  9. Food Occasions— New Vision for Meals:—Our analysis of food culture shows that over 150 distinct eating occasions exist beyond the traditional vision of what used to constitute traditional daypart “meals.” While our occasion-based findings have a quantitative basis, rigorous, ethnographically-based cultural analysis brings clarity to occasions and reveals shifts in American Food Culture affecting retailers (e.g., snacking frequency) as well as CPG brands. Understanding occasions and occasion-based trips can spotlight opportunities for both retailers and CPG brands alike.
  10. Millennial Marketing—Fun Please: When trying to market to Millennials, technology is obviously important: The secret is to tease out the specific role of technology with regard to Millennials vs. technology with regard to the wider society. As an example, we believe Millennials are leading the way into the adoption of Smartphone technology for shopping. In terms of building brands that resonate with Millennials, remember that transparency, integrity and a sense of fun with less of a preoccupation with building “loyalty,” are paramount.
  11. Moooo-ve Over Cash Cow: Today’s food marketers managing legacy cash cow brands should realize that innovation is increasingly the victim of today’s marketing mix. To find whitespace opportunities in crowded CPG categories, marketers should assess food and beverage categories culturally and consider investing in small emerging brands as well as deeper understandings of changes in food culture.
  12. Retail—Crossing the Chasm: Retail, and designing the retail experience, is ripe for change—ready to be stood on its head. Much of what passes for retail experience has quite literally lost significance with today’s shoppers. Understanding how to combine culturally-developed, creative insights, stories and concepts with data analysis can produce transformative and culturally relevant retail and brand experiences.

Harvey Hartman - Guest Blogger for Phenomena.com

Harvey Hartman – Founder and CEO, Hartman Group, Inc. and author of “A Brand Called Hope”

With a penchant for seeing what others cannot, Harvey Hartman received national recognition in America for accurately predicting the shifts in consumer behavior that would drive the sustainability, wellness and organic movements into mainstream prominence across the food and beverage marketplace. He is an author, business school lecturer and former Fortune 500 senior executive.

His passionate belief in a consumer-driven marketplace paved the way for the Hartman Group to become synonymous with providing unique provocative consumer perspectives of measurable value to clients. Harvey has authored three marketing texts, the most recent being A Brand Called Hope: Reimagining Consumer Culture, which explores food culture and today’s consumer-driven interpretations of quality.

For more on The Hartman Group’s unique perspectives into consumer culture, please contact Blaine Becker: blaine@hartman-group.com.

Smart Phones Make Shoppers Smarter

Published on February 14, 2012 in Jonathan Asher and Uncategorized. 0 Comments Tags: , , , , , , , , .

At Perception Research Services International (PRS), we recently conducted research to find out how smart phone users are actually using these hand-held gadgets. First of all, we found out that ownership of smart phones is rapidly approaching levels of traditional mobile phones (36% vs 53%), and most smart phone owners (83%) use them while shopping. Interestingly, they’re not being used solely for big ticket items such as appliances (39%) and electronics (59%), but also for everyday items such as groceries (49%).

Similar to how consumers have shifted from paying in cash for purchases to debit cards another transition is taking place. For instance, Starbucks has seen a significant uptick in the number of people who pay for their purchases (or coffee experience) with a mobile application. As one news outlet put it, “Starbucks is the worldwide leader in mobile payment transactions”.  The manner which we have integrated the use of smart phones into our daily tasks is revolutionizing business transactions.

Our research into smart phone usage further indicates that smart phone owners, who use their phones while shopping, most often utilize them during the decision making process (comparing prices, gathering product information, searching for sales/coupons or reading reviews/opinions), and about one-third make actual purchases with their phones.

Importantly, Hispanics and African-Americans are more apt than Caucasians to use their Smart phones while shopping.  Smart phone owners, who use their phones to shop, tend to be under 35 years old, are employed full-time and are better educated than the average consumer.

Most recently, I read that some retailers are bringing mobile shopping to commuters. First, Tesco was exploring this space in Asia and now commuters in Philadelphia are able to scan the QR code on posters located in transit stations to order groceries and have them delivered to their home the same day!

Marketers would do well to ensure that they understand the role of smart phones and digital content – relative to packaging and POS materials – in the shopping process within their categories. They need to ensure that all their communications are complementing each other and working together. And retailers should now consider how they set their shelves and create merchandising that is “smart phone-friendly.”

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

As Executive Vice President, Director of Account Management, Jonathan oversees the company’s client services function including account management and marketing communications, and also manages client relationships for qualitative and quantitative studies.  He is highly sensitive to the information needs of designers while also having a researcher’s ability to ask questions in an effective and appropriate manner. He is particularly adept at illuminating the risk of making wrong decisions as well as the opportunity cost of missing out on the right ones.

Jonathan has over 30 years of experience in consumer goods marketing beginning as a project director for Newman Stein, Inc. He also held research positions with Thomas J. Lipton (now Unilever) and the Lorillard division of Loews Corporation.  Jonathan entered the design field by joining Gerstman+Meyers (now Interbrand) where he was vice president, director of marketing services.  He went on to lead The Coleman Group where he developed the company’s proprietary strategic services.  From there, he established the New York office of Dragon Rouge, a leading, privately held European design agency.

A frequent speaker and lecturer on topics pertaining to marketing and design, Jonathan, has been quoted in major publications including Fortune, The New York Times, The Wall Street Journal, Brandweek, and Advertising Age.

Jonathan is also a Distinguished Faculty Member at the Path to Purchase Institute (formerly The In-Store Marketing Institute). He can be reached at jasher@prsresearch.com.

Why Shopper Marketing is A Good Idea for Retail Brands

Published on January 12, 2012 in Jim Lucas. 0 Comments Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , .

Changes in consumers/shoppers and the retail landscape make it an opportune time for retail branding efforts to take advantage of a shopper marketing approach. With more choices than ever, shoppers are becoming more discriminating, taking advantage of new shopping occasions, and  shopper journeys are how consumers experience brands and how brands are coming to be defined.  The retail landscape witnessed changes in 2011—e.g., Interbrand’s Best Retail Brands look at the future of retail brands, Carrefour Planet’s bold experiment to revitalize the hypermart, the success of the discounters, experiments with smaller format stores (Walmart, Ahold, Best Buy), and the changes India made to its Foreign Direct Investment— all underscore the importance of a shopper centric approach to retail branding.

Retail Brands: Impact Consumer/Shopper Decisions

To some extent, the reason for branding has always been about making consumer/shopper decisions easier. Brands provide an assurance of quality, dependability, or fit and style. Once consumers learn about a brand and decide it is a fit, decision-making has been made easier!  Retail brands are no different—  they  make a difference in consumer decision-making in three key roles they play:

  • Relevance/Fit—retail brands help shoppers express who they are, effectively making their choice of retail brands a lifestyle statement (Whole Foods’ clear fit with natural and organic or  Lululemon’s  yoga-
    inspired approach to athletic apparel). Retail brands become choice editors who fit their consumers’ lifestyle.
  • Shop-ability/Accessibility—retail  brands provide shoppers with orientation. They make it easier to process information, help save time, make it easier to find the right product (e.g., IKEA’s guided choice—how to buy a pillow; or  Best Buy’s use of QR codes to access peer reviews, product specs and availability all aid “here-now” decisions).
  • Trust/Reducing Risk—retail brands reduce the perceived risk involved in making a purchase. Thus they provide shoppers with a safe choice; reduce buyer’s remorse (e.g., Best Buy’s Twelpforce and Buy-back Program, Apple’s Genius Bar). Their transparency and trust speak to the ongoing nature of relationships and provide entree into the shopper’s circle of trust.

Retail branding is moving from sole reliance on pricing (EDLP vs. high-low pricing) and locational convenience. Shopper intimacy is essential to creating retail brands that demonstrate relevance, simplify shopping and engender trust, and therefore make it easy to decide on a retailer. Successful retail branding provides a unique shopper experience, a desired destination, creates separation from the competition, and provides a reason for an ongoing relationship between a shopper and retailer.

One Brand, Many Dimensions, Seamless Experience

Retail brands typically have more dimensions than CPG brands. Not only do retail brands typically have more attributes than CPG brands, but they have many more touchpoints by which they can express their brand and be evaluated (e.g., store formats, layouts, assortment, pricing, store brands, associates, merchandising, loyalty program, website, circulars, etc.). This is more important than ever as consumers have come to expect a “seamless experience” across a retailer’s touchpoints.

Retail Branding must address three key dimensions of the retail brand to create a “seamless experience.”

  • Umbrella brand –what does the overall brand stand for (e.g., Walmart: “Save Money. Live Better”)
  • Store/format—clear articulation to help define experience and set expectations about different formats (e.g., Walmart, Walmart Express, Walmart.com, Walmart Marketside, Sam’s Club,  etc.);  most prevalent shopper segments or types of shopping trips (e.g., Tesco Express vs. Tesco Extra)
  • Own brand products—value, exclusivity, segment-specific benefits (e.g., Great Value, Equate, White Stag, Ol’ Roy, World Table, George, Faded Glory, Canopy, etc.).

In a very real sense, the retail brand is indistinguishable from the marketing of the brand. Shoppers define a brand based on their shopping journey and the touchpoints which comprise it. Any of the touchpoints on the shopper’s journey can serve as a purchase trigger, everything blends into one story. Understanding the shopper can help weave these three dimensions to produce a coherent brand story, a seamless experience.

Building & Sustaining a Strong Retail Brand

Finally, building and sustaining a strong retail brand require two things:

An attention to balancing creativity and consistency can:

  • Endow a brand with an emotional appeal which builds on its heritage
  • Update, contemporize and re-establish the relevance of the brand (e.g., think about Carphone Warehouse’s origins, and where it stands in shoppers’ minds today).

Retail brands have been built through traditional (advertising) and less-traditional media (store, employees, assortment, own brands, etc.). Retail brands are more than awareness — they have many moments of truth. Understanding the brand’s strengths and weaknesses throughout a shopper’s path-to-purchase is key to leveraging all of its touchpoints, to define an experience, and to express the brand. The brand must be rigorously managed across all of its touchpoints.

Shopper Marketing at the Heart of Retail Brands

As retailers grapple to differentiate themselves from each other, compete for share of shoppers’ wallets, increase frequency of visits or basket size, shopper intimacy plays an essential role in helping shape and express a retail brand. Establishing relevancy, making it easier to shop and garnering shopper trust help a retail brand move beyond price and physical location as the only choice factors.

Because much of a retail brand’s equity resides in the minds of shoppers, the brand experience is shaped by shoppers. It is a reflection of their needs and wants. Adopting a shopper marketing approach can help retail brands better reflect and accommodate their shoppers’ needs and wants. Ultimately, they must become their shoppers’ advocate.

Finally, a shopper-centric approach will identify, design and implement those touchpoints or apertures that are most relevant to the shopper and fit best with their journey. Today’s shopper is no longer constrained by a purchase funnel or linear path-to-purchase. To build strong, sustainable retail brands, we should not be either.

About the author

Jim Lucas - Guest blogger for Phenomena.com

Jim Lucas is executive vice president, global director, retail insight and strategy, at Draftfcb.  The acknowledged founder of the science of retail ecology, he is internationally recognized as an experienced marketer and leading authority on understanding how consumers interact with brands and how they behave in retail environments.  His article, Shopper Marketing: the discipline, the approach” appeared in the 2010 international book titled “Shopper Marketing” (Kogan Page, April 2010), featuring subject experts from around the world.

Path to Purchase 4.0

Published on January 3, 2012 in Gwen Dixon Morrison. 0 Comments Tags: , , , , , , , , , , , , .

The explosion of digital is forcing retail brands to transform their relationships with shoppers. 

Retailers and brand marketers face a hugely complex and fragmented new world. As the uncertainties of the global economy create a sea of change in shopping behavior, the digital world has been exploding.  Shoppers are approaching their decision making with a whole new bag of tricks to guide them.

It used to be that the path to purchase was linear   A brand would build brand affinity outside the store, help drive traffic to the store and then engage with a  call-to-action to trigger the shoppers to put the product into the shopping cart. Now, with all of the digital tools at the consumer’s disposal, the path to purchase is more of a circular one. 

Thanks to the likes of   social media and geo-social applications, consumers have toppled the linear path to purchase. They now have the ability to research product information via Google, Facebook and other social media, and access information at point of purchase with their smart phones. I’m not telling you anything you don’t know but the convergence of change demands that innovation and creativity become business essentials.

Brands are pushing their agencies and media partners to be clever in leveraging digital opportunities in a more cost-effective manner. And because many retailers aren’t able to invest in bricks-and-mortar capital improvements, they may focus on the digital arena as the one place where they can make a difference for their brands.  

In fact, one of the lasting effects from this past recession is that consumers remain price sensitive and value conscious. Because times have been tough and could get tough again, they are demanding greater transparency and engaging experiences from retailers and brand marketers.

So when you evaluate the new path to purchase for your category, keep in mind the shopper is empowered and seeking richer retail experiences. not less. 

 “In the 80’s, brands were striving to become a part of the popular culture,” recalls Morrison. “Nowadays, it is about going viral.  The trick is to integrate rich experiences online with bricks-and-mortar.” 

About the author

Gwen Dixon Morrison - Guest Blogger for Phenomena.com

Gwen Dixon Morrison’s career has been devoted to heightening brand connections throughout the retail environment as consumers move closer to purchase. 

As CEO of The Store, Gwen is responsible for extending WPP’s leadership in retail innovation and supporting resources for WPP group companies throughout the Americas.

The Store, WPP’s unique retail practice, provides expertise and added value to WPP client initiatives in retail and fast moving consumer goods. Through a network of communications & retail professionals from WPP companies around the globe, The Store builds on collective knowledge and skill sets to help clients navigate the changing landscape of retail, shifting shopping behaviour, format development, technology, and sales activation.

Leverage Dimensions of Consumption to Effectively Market Health and Wellness

Published on December 6, 2011 in Laurie Demeritt. 0 Comments Tags: , , , , , , , , , , , .

It seems buzz is building across food and beverage, retail and shopper marketing arenas around expansion of healthier product offerings in the coming years. For companies intent on ramping up their “better for you” product portfolios, we find that far too many manufacturers, marketers, brand managers, and retailers are often too preoccupied with identifying their target “health and wellness consumer.” The good news we have to report is that there is no single “type” of wellness consumers. This is a good thing because it means the potential market is far less limited. Instead of a microscopic view on consumers, we’d suggest that the pathway to unlocking potential health and wellness market opportunities lies in taking a broad view into the larger “world of wellness” to learn how to better serve consumers from the Core to the Periphery of their respective product worlds. Consumers’ orientation toward health and wellness manifests itself in worlds of activity. How that orientation plays out depends upon the arena of activity that a person is involved in…and the intensity of involvement within that world.

Remember back in the 1990′s how alternative medicine, Dr. Weil and natural and organic brands exploded into the mainstream, all signaling a heightened cultural fascination with health and wellness lifestyles? At the time, and moving into the early 2000′s, the Hartman Group developed our proprietary “World Model” that delineates attitudes, behaviors, products and services through which a consumer might move as they become increasingly involved with wellness lifestyles. In the mid-2000′s it was relatively easy to say that consumers at the “Core” of health and wellness (typified by fully incorporating spiritual as well as physical and emotional behaviors into their lives) were fairly distinct from consumers in the Periphery. From a literal perspective, the two types of consumers were unlikely to meet up in certain settings, such as an aromatherapy clinic (Core) or a GNC store (Periphery).

Today, findings from our new Health + Wellness Deep Dive report document that Periphery wellness consumers’ articulation of wellness is becoming more sophisticated and reflective of traditionally Core notions of wellness. Although their actual participation in health and wellness lifestyles is not nearly as intense, the fact that the Periphery is coming to possess a more encompassing view of wellness today is evidence of cultural diffusion as Core concepts of health and wellness trickle steadily into the mainstream.

Overall, Hartman Group research continues to show that consumer interest in pursuing healthier lifestyles and a higher quality of wellbeing is on the increase: Consumers increasingly understand wellness to be a “positive” proposition rather than a “perfunctory” one. We are witnessing a cultural shift from “health” toward “quality of life” and find that consumers are increasingly thinking and talking about wellness in terms of “quality of life” where non-physical notions of well-being (mental, emotional, and spiritual) are just as important as physical well-being.

We believe our World Model—which offers an empirically accurate account of consumer behavior grounded in the reality and context of everyday life—is ideally suited to a contemporary understanding of health and wellness consumers because it allows us to frame consumption behavior in meaningful contexts. Briefly, the World Model suggests that within each world there is a set of principles (what we term dimensions of consumption) that allow consumers to make meaningful distinctions and choices. These internal dynamics, or dimensions of consumption, are the basis from which consumers frame their understandings and meaning.

Along with concepts linking to quality, other dimensions of consumption drive the values that inform consumer behavior in the World of Wellness and include Price, Convenience, Brand, Experience, Expert Opinion, Fun/Enjoyment, Knowledge, Authenticity, and Sustainability. The influence of certain dimensions of consumption on consumer behavior depends on where they are situated in the World of health and wellness. Periphery consumers (those least involved in health and wellness lifestyles), for example, are far more likely to be Price sensitive and Convenience focused, while Core health and wellness consumers (those most intensely involved in wellness lifestyles) are more likely to consider Sustainability and Authenticity in purchase decisions.

While diverse consumers are on the lookout for companies, brands, products and services that can help them fulfill their health and wellness aspirations and goals, it is important that marketers understand the influence of certain dimensions of consumption on consumer behavior and how such values influence perceptions, purchase and use of health and wellness brands and services. As an example, Mid-level health and wellness consumers, who represent a great opportunity for diverse marketers—making up 62% of the population—are focused on dimensions relating to Experience, Expert Opinion, and Fun and Enjoyment. As such, Mid-level consumers are increasing personal Knowledge through mainstream information sources, experimenting with diverse health and wellness products, services and brands and seeking balance between fun and discipline. To maintain relevance and develop opportunities with today’s Mid-level consumers, brands should reflect pragmatic sensibilities (reflective of Mid-level dimensions) yet offer Core aspirations and quality distinctions.

Companies looking to expand their healthier products and services portfolio should look to the dimensions of consumption within the World of Wellness as the gateway to unlocking potential market opportunities. With virtually all consumers participating in health and wellness lifestyles to varying degrees, we see great opportunity ahead for companies and brands to strengthen their health and wellness halo’s and drive sales growth by effectively executing programs and tailoring messages that relate key health and wellness dimensions of consumption to the type of health and wellness consumer their brand speaks to.

For more on Hartman Group’s Health + Wellness Deep Dive report, please contact Blaine Becker by email at: blaine@hartman-group.com

About the author

Laurie Demeritt - Guest Blogger for Phenomena.com

As president and COO, Laurie Demeritt provides strategic and operational leadership for Hartman Group’s research and consulting teams. Laurie and Hartman Group analysts are recognized for their unique ability to blend primary qualitative, quantitative and trends research to help clients develop successful marketing strategies by understanding the subtle complexities of how consumers live, shop and use products and how to apply that understanding in ways that lead to purchase.

 A nationally recognized authority on consumer behavior, Laurie is highly sought after as a keynote speaker at industry conferences and client events. Her insightful quotes appear frequently in national media and industry journals such as The New York Times, National Public Radio, Washington Post, Wall Street Journal, Progressive Grocer, Food Business News and Forbes among many others.

Early in her career at Hartman Group, Laurie paved the way to innovate a new way to understand consumer behavior in what has become known as the Hartman World Model, a type of segmentation based on consumers’ level of intensity in a given “world of activity” rather than standard demographics. Clients have found this proven worldview approach highly successful and inspirational in innovation, building brands, new product development, creating compelling product and retail experiences, and developing marketing strategies that connect with consumers and engage shoppers.

 Laurie received her MBA in Marketing and Environmental Management from the University of Washington and her BA in Political Science from Cornell University.

Laurie can be reached by email at laurie@hartman-group.com

Millennials’ Brand Preferences Shift Due to Household Structure

Published on November 21, 2011 in Harvey Hartman. 0 Comments Tags: , , , , .

While use of technology and social media among Millennials is legendary (they’ve never known a time that wasn’t digital), new Hartman Group research finds that their relationships with brands is less definitive and thus fertile ground for creating brand affinity. No longer can Millennials be viewed as young kids playing video games or texting friends between classes. Millennials are young adults, many firmly entrenched on career and family pathways. It is little wonder that this emerging generation garners so much attention and is clearly in every marketer’s bullseye. Here a little understanding on their culture can go a long way towards influencing the path to purchase for your products and brands.

Today’s Millennials are coming of age in a postmodern world—which encourages consumption with playful, carefree abandon. In 2011, two-thirds of Millennials are over the age of 21, the oldest now entering their 30s. By 2015, almost half of the world’s population will be under that age of 25. Raised in a digital age, they wield a tremendous amount of influence through their use of technology and digital media. They have the power to set trends, are open to trying new products, services, retailers and brands. As we all well know, they then share their experiences with others in their social (and global) universe.

It is likely this group will be consuming at levels relatively higher than their predecessors. And, in a future where it is likely that we will all be buying more stuff, Millennials will be leading the way. What does this mean for brands?

Millennials identify with brands, but not in the same manner as their elder Boomer cohorts consume and relate to brands.

In our Culture of Millennials research, we found Millennials beginning to shift their brand preferences away from the brands they grew up with when leaving home. Close to a third (29%) of Millennnials shift back toward their parents’ brands after having children. One out of five Millennials switch almost entirely to different brands when they move out on their own.

We also found that Millennials have a different—less definitive—relationship with brands and products: As a whole, Millennials only care about brands in categories where there is a significant cost to getting it wrong (e.g., cars, computers) and surprisingly few claim to be interested in popular fashion brands—or fashion brands in general.

Among Millennials who claim to want brand relationships, they are most interested in categories that contribute to their own image: fresh foods, personal care products, local groceries, and electronics. Most Millennials who don’t want brand relationships (60%) haven’t thought about why.

This isn’t to say that Millennials are radically different from other generations. There are more similarities than differences between Millennials and other generations. Many of their attitudes and behaviors are reflections of broader culture. Households with children, whatever the age, face the same challenges.

Creating a relationship between your brands and Millennial consumers requires due diligence with regards to transparency. Be true to who you are. Be honest about your products. This means a word of caution with regard to social media: Millennials can easily spot “cluelessness” among those dabbling in social media marketing.

Connecting with Millennials is less about building loyalty and more about having fun. Don’t take yourself too seriously. Millennials will relate and bond with brands they deem are less serious and dowdy, and possess a great deal of integrity.

About the author

Harvey Hartman - Guest Blogger for Phenomena.com

Harvey Hartman – Founder and CEO, Hartman Group, Inc. and author of “A Brand Called Hope”

With a penchant for seeing what others cannot, Harvey Hartman received national recognition in America for accurately predicting the shifts in consumer behavior that would drive the sustainability, wellness and organic movements into mainstream prominence across the food and beverage marketplace. He is an author, business school lecturer and former Fortune 500 senior executive.

His passionate belief in a consumer-driven marketplace paved the way for the Hartman Group to become synonymous with providing unique provocative consumer perspectives of measurable value to clients. Harvey has authored three marketing texts, the most recent being A Brand Called Hope: Reimagining Consumer Culture, which explores food culture and today’s consumer-driven interpretations of quality.

Retail Word of Mouth in Real Time – Really?

Published on November 9, 2011 in Dave Rockenbaugh. 0 Comments Tags: , , , , , , , , , , .

While thinking about how to improve the shopping experience for customers as well as the retailers and brands that fight to get on the shelves, I pondered the best practices of shopper marketing, as well as the most influential marketing tool of all: word of mouth. Then the idea of a “mash up” smashed into me.  (I’m fine. I didn’t even bruise.)

Mash ups are a recent development from the world of popular music where one takes two unrelated songs and combines them to make a new “tune.” Sorta.

So then, what if we mashed up in-store best practices with word of mouth marketing? Based on recent technological advances and what we see every day in ecommerce, I believe it’s possible. I call my mash up WOM-ASAP. A person who takes part is a WOMPAR or a Word Of Mouth Practioner at Retail.

And no, I don’t mean I’d hire my Aunt Mayverd to stand in Aisle Three in my local Jewel and shout at the top of her lungs how much she loves Inglehoffer Cream Style Horseradish. Nor, an army of Aunt Mayverds stationed across the country.

There are interesting ways to use technology and social media to get shoppers talking to each other at the store level, sometimes without anyone actually having to speak to each other.

Paid WOMPARs

Many people ask their waiter, “What’s good tonight?” or to suggest a wine that goes with the meal. I’ve often begged the Best Buy employee to tell me which is the hot new Xbox game to buy for a nephew. (Of course, I’m actually buying it for myself, but I don’t want her to know I’m a 50-something game geek.) So why not put a paid ambassador on the retail floor, whose sole purpose is to help people make purchase decisions based on their recommendations and those from other customers. Here are a couple of suggestions.

The Shopcierge. Somewhere near the entrance, a Shopcierge could be stationed with a mobile device that offers up a myriad of information to help the customer: Brand ratings by shoppers, even in real time. Reminders on weekly specials. News about new product introductions. Recipe/party planning help. Suggestions on “top-rated” accessories that go perfectly with the item one is about to purchase. The Shopcierge could even interview customers on why they made their choices and then add that information to the database.

The Samplierge. The typical store sampler offers up a bite/sniff/swig of some product sold in that establishment, sometimes followed by a coupon. My Samplierge, before you begin biting/sniffing/swigging, will give you a report on other peoples’ responses and ratings from the last few hours. That added reassurance that you’re about to become one of the in-crowd makes trying something new much less risky. You may possibly be more prone to respond positively. “If the last 17 people who sampled this gluten-free cheese-food icing loved it, who am I to disagree? I’ll take three, please.” And what if you can then add your rating right at the table, either by high-tech tablet or be videoed with your glowing response to the supping/smelling/swallowing? The videos could then be uploaded and compiled into a best-of video to be played online in that store, or at others, within minutes.

Peer2Peer WOMPARs

Word of mouth is best when it comes from a friend or acquaintance or even someone you may not know, but who has no vested interest in promoting the product. That’s why the following are stronger, but also harder to control and implement.

Coffee Klatch. A number of retailers feature coffee shops. Target has Starbucks. Barnes and Noble features Seattle’s Best. What if, after Wanda buys a Missoni blouse at Target, she immediately shares her experience over a caramel latte? Tablets or notebooks could be set up with instant forum access or a group chat (moderated, of course) with other shoppers in that store and across the country. And if a date or two transpires, even better.

Digital Kiosks. These are already available in a number of shopping environments. But it’s usually an “information out” experience to locate stores, events, specials, etc. What if the customer could take a quick survey or incorporate a rating or two and be rewarded for their input? Kiosks stationed around a store and open to the store’s Facebook page or other social media give a shopper the opportunity to ask others who are online about products in store.

On-The-Shelf QR Codes. QR codes are small enough that they can be easily placed on a store shelf’s edge. A customer looking at a product can scan the code next to it and instantly retrieve ratings from fellow shoppers. The customer could also add his/her comment as well.

Top Ten. Shoppers can offer up a list of their favorite brands they purchased that week through a simple in-store or online survey. All respondents are given an incentive to participate. The top ten most popular brands could then be published online and/or printed up as a small flyer or shown in a display located near the store’s entrance.  Those items could even be offered at a discount.

In-Store Ambassadors. I love showing off my expertise at certain stores. (Go ahead and ask me an iguana question the next time you see me in a pet shop.) Other people will too. So is there a way to create a “club” of ambassadors that are somehow identified by a button they wear or the color of the shopping cart they use? Other shoppers would then be able to approach them for their WOM advice or suggestions. This might be more valuable at a store selling more specialized products, like electronics, fashion and automobiles. If a person is in the BMW showroom picking out their 5th 300 series, you can bet a first-time buyer would do well to start up a conversation with him.

Mobile Mob. Create an app that connects fellow shoppers around the country. Much like a match service or chat app, people can log in and ask advice, share insights about brands and remind each other about special offers that may get overlooked.

Not all of these may be practical, or they may be too expensive, or they may just plain suck. Also remember that there has been some negative press recently about paid ambassadors and reviewers. My intent here is to prime the innovation pump, not for instant implementation. There’s a whole theory out there nowadays that says most new ideas are a mash up of previous ones anyways. So if you can mash up any of mine with some of yours, go for it. When you do implement it/them I would love to hear how it went. Contact me in care of this blog when you do. Thanks!

About the author

Dave Rockenbaugh - Guest Blogger for Phenomena.com

Dave Rockenbaugh is the Executive Creative Director at Robinson & Maites.

Robinson & Maties are a leading marketing agency with offices in Chicago and San Francisco.

R&M, The Marketing Transformation Agency®, helps clients achieve greater results by taking advantage of the massive transformations constantly taking place in today’s business environment, technology, social media and consumer behavior.

Buying Groceries Goes Beyond Grocery Stores

Published on October 27, 2011 in Jonathan Asher. 0 Comments Tags: , , , , , , , , , , , , , , , , .

Research Shows New Shopping Patterns Emerging

What do Target, CVS, Dollar Tree and Starbucks have in common?

These days, they all share the desire to sell groceries. A trip to any of these in your neighborhood will reveal how they are encroaching on grocery sales that had once been reserved for traditional supermarkets.

The New York Times reports that Target invested about $500 million in 2010 to push more groceries into their stores. Target shoppers may visit a couple of times a week for various items, and the addition of groceries heightens the likelihood that they will pick up items that are outside the scope of their original shopping intentions.

Drug stores are aware of these tendencies as well and have significantly increased the amount of groceries they sell. While prescription drugs may still be their mainstay, groceries now account for about 30 – 35% of their sales.   According to the St. Louis Post-Dispatch, “CVS has already doubled the food assortment in more than half of its stores within the last year and a half and Dollar General and Family Dollar have been adding more coolers for frozen foods, too.”

Starbucks is the newest entrant in this effort, as it now offers bistro-boxed snacks, lunches and a wide selection of packaged beverages. They also recently announced that they will begin to offer a new line of grocery merchandise.

We wondered if having grocery items available in more places than just supermarkets changes how consumers shop for these staples.  At Perception Research Services International (PRS), we recently unveiled results from our shopper research survey focused on grocery sales and the related shift in shopping trends*.

PRS’ survey results indicate that while most shoppers (92%) say they’ve purchased groceries in supermarkets or grocery stores in the past 3 months, many (76%) also indicate they’ve purchased them at Mass Merchandisers, and nearly half (47%) mention Drug stores as a venue for purchasing grocery items. Importantly, one third of shoppers interviewed (32%) reported buying groceries in Dollar stores in the past 3 months.

Given the considerable efforts on the part of retailers such as Wal-Mart and Target to bolster their grocery offerings, it’s not surprising to see the shift to Mass outlets for grocery purchases. However, rather than stating a benefit or preference for buying groceries at these stores, shoppers cite price as the primary reason for doing so, followed by the fact that they’re already there, buying other merchandise or waiting for a prescription to be filled.

Drug stores are a convenient alternative to larger grocery and megastores, and shoppers say the ability to get in and out quickly or pick up a grocery item while shopping for non-grocery items is the reason for buying groceries in drug stores.

As would be expected, price is the primary motive for purchasing groceries in Dollar stores.

Interestingly, purchase shifts by product category are evident as shoppers indicate buying less cleaning and personal products in supermarkets in the past 3 months. They claim to be buying more of all grocery items in Mass outlets – primarily food; while in Drug stores, they buy more personal products, and more of both personal and cleaning products in Dollar stores.

Many factors are contributing to this ‘channel-crossing’ trend. Principally, shoppers are both streamlining and consolidating several shopping trips into one to save both time and gas. Also, the recent spate of mergers and acquisitions has left fewer competitors within channels, and so the focus of competition has naturally shifted across channels.

Another reason many outlets are selling groceries in their stores may have to do with First Lady Michelle Obama’s quest to eradicate “food deserts”. She’s been working with various retailers to ensure that neighborhoods lacking fresh food choices have more options. This focus aligns well with the desire of retailers to increase register rings by offering more types of non-customary items, bringing more shoppers into their stores; as well as encouraging them to buy more while there.

All of this suggests important implications for retailers in the various classes of trade. Supermarket chains must be concerned about losing traffic to other retailers that provide more of a reason to visit such as price or convenience. While supermarkets are generally credited with offering a large selection at present, they can be out-maneuvered by Club Stores and larger “super store” versions of Mass merchandise outlets.

If Mass Merchants truly want to play in this space, they will need to become a destination for grocery shopping and not simply count on shoppers buying groceries while in the store buying other things; nor will they be able to cling to their low price point-of-difference as Dollar stores continue to surge. And Drug chains will need to balance the benefit of providing a broader array of products so as to enlarge each shopper’s basket, against losing the benefit of a quick and easy shopping experience that they now enjoy as a point-of-difference.

As the non-grocery retailers continue to expand their grocery offerings, they will begin to contend with issues that may be foreign to their normal business activities.  In addition to making major investments in displays, including refrigeration, these retailers will also need to consider which items to carry and of these, which package sizes or configurations would best entice shoppers, as well as how much advertising should be allocated to their grocery offerings compared to their traditional wares.  

As all of these factors continue to play a role, retailers will need to apply their skills and expertise in new ways, learning how to merchandise products they had not previously carried or paying new attention to items that have been collecting dust on their shelves for a long time.

Unlike building a baseball field in a corn field, it may not be safe to assume that, if you stock it, they will come.

*This online study was conducted among over 1,500 shoppers, aged 18+, during May, 2011.

About the author

Jonathan Asher - Guest Blogger for Phenomena.com

Jonathan Asher has over 25 years of consumer goods marketing experience.

Jonathan is Senior Vice President at Perception Research Services International (www.prsresearch.com), a packaging and shopper research firm that conducts over 800 packaging and shopper marketing studies annually.

Jonathan is a recognized industry expert and a frequent speaker at marketing, research and design conferences.