Shopper marketing may be grabbing all the headlines as brands from Cornetto to Lil-lets look to create products with designs that stand out on shelves, but the reality is that it doesn’t matter how clever your shopper marketing is, if the basics aren’t in place then your promotion, campaign or launch can be seriously undermined. The Bailey Group UK’s Julia Collis explains how to ensure your retail marketing spend is not being wasted.
Retail marketing may be seen as the latest big thing in marketing terms, with an ever-increasing number of high-profile brands – from Flash to Cornetto to Lil-lets – moving their attention away from traditional techniques, and instead making the shopper their central focus; creating products and campaigns that really grab consumers’ attention in store.
And while this may be rightly demonstrating the power and importance of the in-store environment as a channel in today’s marketplace, many of these same brands still need to make sure that the basics are in place if their campaigns are to really be a success.
Here are three steps to help brands and retailers ensure they are getting the most out of their retail spend:
Check your compliance
No matter how clever or effective your shopper marketing is, the reality is that if the building blocks aren’t in place and the promotion isn’t running as and when it should be in the correct retail outlets, then it is ultimately doomed to failure. One of the biggest barriers to the potential growth of retail marketing is compliance; which can range from 42% to 85% across the industry.
This is also something that is likely to fall under the jurisdiction of the Government-proposed Groceries Code Adjudicator (GCA), which will be able to receive complaints about the way supermarkets interact with their primary suppliers. It will also have the power to levy financial penalties against retailers should they be deemed at fault, so failure to comply with promotions could become an expensive business for retailers.
Make sure items are in stock
On top of this, the level of out of stocks on promotional items are currently running at around 8% across the UK, and most of these lead to lost sales for the brand, and an equally large proportion to lost sales to the retailer.
Put simply, if the product isn’t available, brands and retailers are undermining their own potential profits. Not only that, but getting it wrong in terms of promotional availability can cause significant negative emotions in the shopper and lead to long-lasting damage to a brand’s image.
IGD research highlights the fact that products on promotion not being available in store is the biggest single concern for today’s shoppers. This has been brought into sharp relief again through the recent study by the Institute of Promotional Marketing, which claims that up to 40% of Tesco customers have felt let down by poor availability on promotions.
Get a field marketing team in
Thankfully for both brands and retailers, this is where field marketing can be at its most effective. Many of these problems are caused by systemic issues ranging from poor stock control and in-store placement to problems in the supply chain, which field staff can locate, report on and help solve.
Beyond this, sophisticated measurement and analysis tools now exist that enable field marketing agencies to help brands target the areas where the biggest gains are likely to be made – this can be pinpointed right down to the individual store where campaigns are not reaching targets.
This allows brands to direct their budgets accordingly to generate the highest possible return on investment.
Many brands are still not getting what they’ve paid for in terms of compliance in the retail environment, and employing field marketing teams to work in store is a simple way of ensuring retailers execute promotions correctly and on time. Having the right space and visibility can make a big difference to any promotion, and this in turn can make a real difference to the bottom line for both the brands and retailers involved.
Getting your campaign basics right is essential if both brands and retailers are going to make the most of the opportunities now on offer through retail marketing and ensure that their spend in this area is not wasted.
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