FRIDAY FOCUS – Shopper Marketing and You

A major retail news event happened this week with the release of a new study by Grocery Manufacturers Association (GMA) and Deloitte Consulting LLP. Delivering the Promise of Shopper Marketing: Mastering Execution for Competitive Advantage spends most of its attention on the philosophical and cultural aspects of Shopper Marketing. However, once you absorb and dissect the report, there is meaningful information for the members of NARMS and a foreshadowing of continued and increased at-retail service merchandising and marketing opportunities.

So what is Shopper Marketing? According to the report, “Shopper marketing is the employment of any marketing stimuli, developed based on a deep understanding of shopper behavior, designed to build brand equity, engage the shopper, and lead him/her to make a purchase. The premise behind shopper marketing is that manufacturers and retailers can together create a more engaging shopper experience, influencing shoppers at the point of purchase where they make most final buying decisions. Shopper marketing is about using insights, specifically targeting the core shopper… Shopper marketing brings shoppers into the marketing plan, and the marketing plan into stores.” Bringing the marketing plan to the store equals at-retail marketing activity.

In 2007, GMA and Deloitte reported that only 6 percent of manufacturers, and no retailers, had significant shopper marketing organizations. In this study, 29 percent of the manufacturers and 60 percent of the surveyed retailers had organizations of more than 20 people. There’s a reason for the sharp increase. Respondents said that over the next three years in-store marketing activity will continue to grow at a rate higher than that for almost any other marketing tactic. But the research indicates that very few have systematized the capabilities needed to sustain success.

Not surprisingly, at-retail execution is one of the pitfalls standing in the way of sustained success. As in recent findings by the ISI Sharegroup and featured in the NARMS “Value of Using a NARMS Member”, execution seems to be the culprit. The report says that, “Even the organizations with the most advanced shopper marketing operations identify execution as their Achilles’ heel….Companies lack the tools and data to uncover insights and measure results…. Organizations cannot track or ensure compliance.”

Right about now, the phrase, “We can help with that,” comes to mind. The report agrees, “No organization can be good at every component of a shopper marketing effort. Third-party agencies enhance the effectiveness of many organizations’ shopper marketing programs…. They fill key competency gaps in the pathway from insight development to in-store execution of programs.”

So what does all this mean? Clearly sophisticated Shopper Marketing programs are on the horizon and at-retail activities from planning to execution and measurement will be needed if this phenomenon is to reach its full potential. It’s time to find out what your customers intentions are and to let them know, “We can help with that!

Sept. 26, 2008 IRI/ Morning NewsBeat

Below is the list of articles you will find for the week ending 9/26/08 edition of Retail Industry News.

- Walmart’s Goal: Cut Plastic Bag Usage By One-Third
- First Jewel-Osco Store Features Rainbow Of Food Offerings
- Strategies For The End-Of-Year Holiday Shopping Season
- First Walmart Small Stores To Open October 4
- Holiday Sales Forecasts Not Looking Very Merry
- Sansolo Speaks: Dinner Time
- Eating At Home Trend Traceable To Economic Woes
- Eat-At-Home Trend Drives Sales Beyond The Supermarket
- FastNewsBeat
- The MNB Wal-Mart Watch
- The Balance Sheet
- Executive Suite
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NARMS Putting Merchandising at the Center for Retailing Excellence

Okay, my title is a play on words and a tip of the cap to the news this week that NARMS International has become a charter member of the Retail Advisory Board of the Center for Retailing Excellence at the University of Wisconsin – Madison. But we shouldn’t lose sight of the fact that this is a golden opportunity to give our association a seat at the table to promote the use of our members for at-retail merchandising and marketing activities, dispense information on the importance of merchandising activities and advocate a source of retail jobs and potential careers for our customers, both retailer and manufacturer, and our members.

This new and exciting affiliation opens up a world of possibilities between a world class academic institution such as the University of Wisconsin, right down the road from NARMS headquarters in Madison, and the retail industry which has lined up in tremendous support and leadership in this newly formed center. Guest lecturers, campus recruiting and student field trips are just a few of the activities that come to mind. Kohl’s Department Stores has taken the lead in the formation of the center and will enjoy the naming rights, but listen to the rest of the charter corporate members: Shopko, Target, AT & T, Blain’s Farm and Fleet, Bon Ton, Bridgestone/Firestone, Christopher and Banks, Crate and Barrel, Duluth Trading, Diamond Center, Hy-Vee, Land’s End, Macy’s, Maurices, Roundy’s, Sears Holdings, Trek Bicycle and Walgreens have all taken the lead and realize the value of creating a place of learning, sharing and networking for the future of our industry.

When we think of academics, we often think of cutting edge research that changes the way we live, think, work and act. The research potential of this new alliance is staggering and the chance to share the work of the NARMS InfoShare series (such as the recently release MSO Benchmarks and Value of Working with NARMS Members), other outside resources such as the ISI Sharegroup, future expanded trade association participation and manufacturer and retailer data has the potential to create a powerful environment. A place in which we not only produce work that helps us now, but also future executives and leaders and thinkers that represent the future.

Because we are a leading source of retail jobs through the Recruiter, JobBank, and Career Connection, this affiliation provides an outlet to not only enhance the marketability of those jobs and careers, but to actually play a role in nurturing those who would fill them, now and in the future.

World class universities, trade associations and responsible corporate citizens should be leaders when it comes to the overall betterment of society, the economy and the environment in which we live and work. NARMS International is proud to take the lead in bringing a trade association to this table of leaders and looks forward to going down the path with them.

Sept. 19, 2008 IRI /Morning NewsBeat

Below is the list of articles you will find for the week ending 9/19/08 edition of Retail Industry News.

_ Sams Club To Sell Industrial-Strength Reusable Bags
_ Save Mart Offers Guarantee Of Fast Rx Service
_ FMI Points To Strong Early Registrations For 2009 Future Connect Conference
_ For Some Health-Conscious Consumers, The Plate Is Half-Full
_ In UK, Tesco And Asda Expand Low Price Tactics
_ Sansolo Speaks: Hello, Columbus
_ FastNewsBeat
_ The MNB Wal-Mart Watch
_ The Balance Sheet
_ Executive Suite

Thanks to MNB for this selection of articles.
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Virtual Trade Show Takes another Step into a Brave New World

While NARMS Spring Conference & Exposition has always enjoyed a strong networking element, a recent announcement from NARMS HQ promises to take it to a new level. The 14th annual Conference will take place on April 4-7, 2009 at The Broadmoor in Colorado Springs, CO . But how can this vital networking experience be enhanced? Your trade association is giving members a unique opportunity to participate in a virtual trade show both before and after the April event. It is another in the growing list of NARMS internet offerings that will allow the exhibitor and member to interact in the virtual world.

In partnership with Digitell, Inc. of Jamestown , NY , the virtual trade show experience will give actual conference trade show exhibitors both pre and post show exposure via the internet. Conference registrants will have the advantage of an enhanced opportunity to preview the live trade show experience and interact with host exhibit companies before attending the live trade. For a sample of the Virtual Trade Show, visit www.virtualbeginnings.com.

NARMS associate members who are not available to take part in NARMS Conference can also interact with potential business partners via the virtual trade show after April 7th. Site visitors will create their own personalized character for navigation through the Spring Conference campus. The 3D environment will create an experience similar to actually walking through the NARMS International Trade Show at the time of Spring Conference.

To take it a step further, several of the educational breakout sessions and NARMS divisional track learning sessions may become available for post-conference viewing at future scheduled times, allowing for refreshed audience interaction and renewed excitement over popular topics and discussions on a fee basis.

Add the virtual trade show to the growing list of NARMS tech-savvy offerings such as the webinar series, www.narms.com 2.0 and the enhanced reach of the online recruiting tools and you have a trade association that is positioned for growth and prosperity in a brave new world. Contact NARMS International to find out more about this exciting opportunity.

University of Wisconsin - Madison & NARMS Team Up

NARMS Pledges Support of UW –Center for Retailing Excellence

Stevens Point, WI – NARMS International has become a charter member of the Retail Advisory Board of the Center for Retailing Excellence at the University of Wisconsin – Madison. In this capacity NARMS may engage multiple opportunities with the newly formed center, including guest lectures, campus recruiting activities and possible student field trips to member company sites where feasible. The move allows for NARMS participation with the group of corporate executives who will create a bridge between the UW-Madison’s academic programs and the retail industry. Read more

Fanning Joins NARMS Board of Directors

Stevens Point, WI — NARMS International has named Charles Fanning, VP MSO
Division, Synergy Systems, Inc, Richmond, VA to fulfill an unexpired term on the board of directors of NARMS International (National Association for Retail Marketing Services). In making the nomination, NARMS Chairman Don Koller (Lawrence Merchandising Services, Plymouth, MN) returns Fanning to the board where he earlier served three years with this new appointment marking the first time that NARMS has included service on the board by an Associate Member company representative.
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Coupons on the Comeback

The Promotion Marketing Association Coupon Council reminds us that September is National Coupon Month. In support of this time tested sales promotion device, the council has released some pretty compelling statistics. They tell us that, “Eighty-nine percent of the overall population report that they use coupons when shopping for grocery, household and healthcare items at supermarkets.” They add that, “Ninety-seven percent of primary shoppers report that they use coupons at supermarkets.” During tough economic times, manufacturers turn to using coupons, both print and online, to get shoppers back to the store to buy their favorite brand or try a new item. According to Prospectiv’s 2008 Consumer Coupon Poll, 72 percent surveyed say they are using more coupons to make their money go further than they did six months ago. The PMA added that a typical consumer saves 7% on their grocery bill. For NARMS members the increase in coupons, mail-in offers and other sales promotion offers another opportunity to be of service to our clients. Read more

Synergy Systems, Inc. Renews NARMS Sponsorships

Stevens Point, WI – Synergy Systems, Inc. of Richmond, VA has renewed a major sponsorship role of support for the 2009 NARMS International 14th Annual Spring Conference & Exposition; committing to platinum level sponsorship, undertaking co-sponsor naming rights for the annual NARMS Golf Outing and hosting the Synergy Networking Dinner during the four-day conference in April.

“We’re extremely grateful to have member companies stepping up their support of our annual NARMS Spring Conference,” says Dan Borschke, NARMS President and CEO. “It takes a certain level of financial resources to develop and execute the conference at the level that our members have come to expect. Company support from retail industry partners, like Synergy, help make that happen!” Read more

Sept 2008 Competitive Edge

Assessing Private Brands as Threat or Opportunity: A Supplier View
By Jim Hertel

The Benefit
It’s no surprise that in the current economic climate, food retailer interest in Private Brands is growing as fast as its shopper appeal. Many suppliers view the growth of Private Brands with concern and possibly alarm. The fear which suppliers feel is amplified by the limited availability of comprehensive Private Brands performance data; historically, it has been limited to aggregate sales and unit movement data only. But new performance data from Willard Bishop is emerging — including profitability; we’re developing a much clearer view of the full impact of Private Brands, and can better judge the opportunities and threats for suppliers.

Sept 2008 Competitive Edge - Download Here