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

Sharp has introduced us to evidence-based marketing

Ritson said it was the only book in the last 15 years that you had to read “Evidence -based marketers brought rigour and prowled the stage at conferences around the world… …their slides weren’t very cool and they lacked a trademark outfit or funky haircut, but they had their impact on marketing nonetheless .”

Evidence-based approach to Brexit?

Back to Sharp…. Growth comes by gaining more buyers 1. All brands lose buyers, at a predictable rate 2. Most brand and category buyers are light buyers 3.

Sharp’s laws hold true for categories 1920 categories across 7 countries Volume % change Penetration % change Frequency % change Bottom 15% Next 15% Other Losers Other winners Next 15% Top 15% DECLINING CATEGORIES GROWING CATEGORIES

A traditional segmentation Buyers Non-Buyers High Low loyal loyal High frequency Low frequency

Sharp shows growth is all about non-buyers! Buyers Non-Buyers High Low loyal loyal High frequency Low frequency

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

“First Purchases” are required to drive growth First Purchases Repertoire Category Purchases Purchases Regular Purchases

Objective: Understand how suppliers and retailers can best grow categories by winning First Purchases Method: Added Purchase Outcomes™ to categories from the Shopper Intelligence database in the UK 13,000 Purchases; 25 Categories; 5 channels Category DNA, Shopper Satisfaction, Path to Purchase

1 in 10 category purchases were First Purchases 79% Repertoire 11% Regular

92% of First Purchases were made by shoppers who had bought the category previously at another retailer

80% of First Purchases were made by shoppers who regularly shop at the retailer

Younger First Purchases were more likely to be made by younger shoppers

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

Unplanned Nearly 40% of First Purchases were triggered in-store

½ of First Purchases involve shoppers buying a brand they haven’t bought previously

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

1 in 3 First Purchases were picked from a secondary display (twice as many as for other purchases).

< 40% of First Purchases are made on price promotion, similar to other purchases.

just 1 in 10 First Purchases of a category are made because of a price promotion

Specific Occasion First Purchases were more likely made for a specific occasion, rather than for ‘stocking up’

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

mmm First Purchases are essential for category growth ▪ c. 10% of category sales; need to increase to grow ▪ Disproportionately important in longer term ▪ Often involve first purchase of a brand ▪ Clear opportunity for enlightened brands to collaborate ▪ with their customers to win First Purchases

Shopper Intelligence data helps target First Purchases: ▪ Existing shoppers; younger i. Shopping for a specific occasion ii. iii. Not on main shop Display triggers purchase; promotions less important iv. Less is more – make it easy! v. Display is critical to First Purchase of category & brand. ▪ Assess cost of display vs value of First Purchases ▪

Example: Small Trip, Shopping for Dinner

Store Entrance

Recipe Card

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

Shopper Intelligence data helps target First Purchases: ▪ Existing shoppers; younger ✓ ✓ i. Shopping for a specific occasion ✓ ii. ✓ iii. Not on main shop ✓ ✓ Display triggers purchase; promotions less important iv. Less is more – make it easy! ✓ v.

Other First Purchases in my basket