For instance, she added, when shoppers are in a traditional path-to-purchase venue, which is usually a store, they are referring back to home-based occasions for which they are going through that shopping experience. When they see a particular brand on the shelf, they are thinking back to the time that they tried that brand. When they see something that don’t recognize, they are thinking about future uses for that brand.”
As a result, Mathews said, the path-to-purchase is complete. At any stage in the consumers’ purchase consideration cycle, “the stakes are very high for us – as retailers, as brands, or as agencies – to make or break that tenuous connection. So I really think that the path to purchase is more of a puddle...
Tough marketing challenges, such as measuring loyalty, require sophisticated research methods.
“Retailers want to do one of two things: They want to either increase trips or they want to increase the basket size,” said Candace Adams, president, global retail strategy, SmartRevenue, Stamford, Conn., and a former Wal-Mart executive. “It may sound easy or intuitive, but getting there is the hard part. It really does require the (scientific) rigor. It requires a scientific approach to get to the answers that become actionable and that you can actually develop into strategies,” she said.
Marketers need to rely on advanced analytics, such as structural equation modeling, to get the information they need. Structural equation modeling allows for the modeling or testing of causal relationships, she noted.
“My contention is to drive loyalty and increase basket ring, one must rely on the more sophisticated tools that are in the analytic tool box,” Adams said, speaking recently in Chicago. She was among several presenters at the annual Integrated Marketing Conference of the Association for Integrated Marketing (formerly the Promotion Marketing Association) based in New York...
The path to purchase is not a straight line, and neither is
it a circle as some have described it. It is more like a pool or a “puddle,” says Sonja Mathews, director of strategy and consumer insights, PepsiCo, Purchase, N.Y. “We’ve seen a
lot of models that are circular in nature. It almost infers a linear relationship to the path to purchase, but I don’t think it is linear. I think a shopper is really a time traveler.”
SUPPLY CHAIN
‘Smarter Planet’ Initiative
Aims to Cut Waste, Costs
The well-publicized product recalls in recent years were an urgent call to action for the industry to ensure safer food for consumers. At the same time, the need to reduce waste and reduce costs in the supply chain has become more imperative.
Addressing these challenges is part of a larger effort. Several high-profile manufacturers and retailers are working with IBM as part of its broad 18-month-old “Smarter Planet” initiative, which aims to create and promote systems to make water cleaner, populations healthier and distribution more efficient. The company is also making sure that food is heartier through biological research.
IBM’s sophisticated and innovative software is providing the intelligence to improve the basic processes and systems. For example, IBM is relying on its digital technology and powerful solutions to make sure food is traced properly as it passes through an increasingly complex global supply chain. The track-and-trace technology, including 2D and 3D barcode and radio frequency identification (RFID), allows for tracking of food from “farm to fork...
Most CPG manufacturers understand which promotional tactics work effectively for their brands. They have a good idea of the right frequency of promotions and the amount of discount. But very few manufacturers understand – or even consider – the overall effect on the brand portfolio.
Understanding how spending on customer marketing interacts across the portfolio results in better portfolio management and improved ROI. This understanding is called the “Net
Brand Effect.”
In this CPG Webcast, hear more about the “Net Brand Effect” and the role that market structure plays in promotion decisions. Click on the first arrow in the control bar to listen: listen:
Kraft Scores with Strategies for Better Retail Servicing
In recent years, ensuring that products are presented to shoppers in the best possible light has increasingly become the responsibility of CPG manufacturers. That is why retail servicing has become such a key part of the sales process.
But maintaining an effective retail sales force is a substantial investment. The right mix of training, sales practices and incentives needs to be designed. Moreover, the time and effort invested in developing a brand strategy will be wasted if the strategy isn’t executed effectively on the shelf.
Kraft Foods has put together and deployed effective strategies for better retail servicing. The global food company uses its retail servicing team as a key ingredient in enhancing productivity and customer satisfaction.
Autumn McDonald, Director, Consumer Insight & Strategy at Kraft Foods, outlined Kraft’s strategies in a recent webinar titled “Strategies for Better Retail Servicing: Using Test & Learn to Enhance Performance...
