Sound familiar? Since the introduction of the iPhone, consumers are learning there is a lot more they can do on a wireless handset than simply talk on the phone. And advertisers are discovering a sophisticated new way to launch campaigns, promote events, build brands, track responses and make money.

WHICH BRANDS ARE EXPERIENCING SUCCESS?

• Whole Foods offers a free iPhone app with more than 2,000 online recipes and a store locator.¹

• Pizza Hut has become the most-searched food/restaurant site on the Web—with an average of nearly four million visitors a month.¹

• Kraft allows users to create shopping lists based on the recipes they access from their smart-phones.²

• Tide offers an app that allows users to get answers before stains have a chance to set.⁴

A PROFILE OF THE MOBILE MARKETING CONSUMER

According to a new study by market research firm, Frank N. Magis Associations, more than half of mobile subscribers are accessing content on their phones on a weekly basis, and that’s where the most progressive advertisers can reach their markets.

• 18 to 34 year olds get their content through mobile social networking, while 18 to 54 year olds primarily access the news.¹
• 72% of kids 12 to 17 access mobile content weekly and more than half buy mobile content regularly.¹
• Households earning more than $100,000 a year are more likely to use mobile content than those less affluent consumers.¹

This dilemma actually works in the manufacturer’s favor. It is the perfect time for manufacturers to create retailer destinations based on this need, price and desire. It sounds simple enough, but manufacturers’ budgets are dwindling as well. Therefore, implementing co-marketing practices are in everyone’s best interest.

Co-marketing is a strategic practice in which a retailer and product manufacturer(s) combine their marketing resources and insights to create exclusive, mutually beneficial programs. It differs from account-specific programs, which typically involve much less involvement from the retailer.* Think of co-marketing in general terms of “Buy one get two.” The shopper receives twice as much for half of the cost, and the manufacturer spends half the cost for double the impact. Of course this is a generalization, since some manufacturers might consider co-marketing programs double the headache due to double the marketing departments, double the sales teams, etc.

Bringing in the right shopper marketing agency is essential to the success. The agency must be able to work in tandem with both the retailer’s marketing team/buyers and the manufacturer’s marketing/sales team. The success lies with flawless execution.

Execution is…

• The development of strategic plans that are realistically executable

• The understanding of various strategic distribution systems (direct, broker, distributor)

• The ability to communicate between manufacturers and retailers (buyers and in-store operators)

• Results driven—ROI

• Baseline validation

In conclusion, co-marketing programs are an economically reasonable way for manufacturers to maximize their marketing budgets. Both the retailer and the manufacturer receive increased ROI while the shopper receives increased value—all by maximizing their relationships and partnerships.

* In-Store Marketing Institute, 2008.

It’s an interesting question…Shopper Marketing…Long-Term?

One of the many experiences and lessons that I’ve learned over the years, as it relates to extending and sustaining a Shopper Marketing program success, is that it’s in the layers.

- Insight teams will tell you it’s in the research of the customer that drives incremental sales at a retail specific store.

- Marketing and brand teams will tell you it’s in the program development and flawless execution of a program that will generate a larger basket ring.

- Indirect/direct sales teams will tell you its in their retail specific relationships as to what is displayed at store level that drive sales.

- Retailers will tell you it’s their knowledge of the customer that will drive retail sales.

-Agencies tell you it’s the “Big Idea” and how it’s executed that will increase sales from the previous years.

Are they right or wrong?

In order to truly understand and sustain a long-term Shopper Marketing Program, one needs to fully comprehend the layering aspects of a Shopper Marketing Program. By pealing back the layers of a successful program, we can see the elements that are needed to achieve long-term annual program success.

BY WORKING TOGETHER, SHOPPER MARKETING SUCCEEDS—CASE IN POINT…

A top CPG company has been implementing successful Shopper Marketing Programs for the past decade. In fact, one of their programs is in its 6th year of success with its first year setting the benchmark at achieving 199% lift and each consecutive year achieving at least 80% lift over the previous year. Why was this program so successful?

To start with, they partnered with a Shopper Marketing agency. Not an agency known for their FSIs and national promotions but an agency that specializes in Shopper Marketing—an agency that understands the manufacturer and the retailer, knows how to align marketing and sales, and executes through strategic distribution systems.

Based on key shopper and retailer insights, the foundation layer, the time period, was determined—Frozen Food month. The agency recommended creating a Shopper Marketing Program that would allow the manufacturer to push non-frozen foods during a time traditionally carved out for frozen food brands. Baseline layers were added to drive Shoppers to the cereal aisle by brand specific POP, wall displays and pallet wraps. In lieu of a traditional coupon, the consumer received a FREE limited edition cereal bowl with every 3 brand specific, cereal boxes purchased.

The agency then overlaid the foundation and baseline layer with a retailer incentive that increased the basket ring. They cross promoted the program within the milk category. Shoppers received a FREE half gallon of milk, the retailer’s private label, with every 3 boxes of brand specific, cereal boxes purchased.

The entire promotion proved to be a win-win for everyone and it set the foundation for this to be an annual Shopper Marketing Program. For the Shopper it was about the takeaway—the FREE cereal bowl and milk. In many cases, the shopper purchased additional boxes to receive additional FREE cereal bowls and milk. For the retailer it was about the value add to the Shopper which brought increased basket ring and brand recognition to its private label. For the manufacturer it was about the incremental sales created through a Shopper Marketing experience which ultimately built brand loyalty in an otherwise down month.

By fully comprehending and executing the layering aspects of a Shopper Marketing Program, one can achieve long-term annual success.

Voice your opinion…Is this too good to be true?…Will this work in the real world of business?