Shopper Marketing - February 2018 - 7

PROGRAMS

FEBRUARY 2018 SHOPPER MARKETING

7

Coca-Cola Cracks the Digital Code in Converting Shoppers
By Erika Flynn

ROSEMONT, ILL. - As shoppers now rely
more extensively on digital throughout the
grocery shopping journey, companies need
to understand where and how to spend
their marketing dollars, and exactly where
to put their messages. This, said Coca-Cola
Co.'s Laura Wallace Houghton, will help
convert more shoppers to buyers in the
most effective and efficient way.
Houghton, director of digital shopper
marketing capability, shopper marketing,
spoke at the Path to Purchase Expo in
September, sharing insights gleaned from
recent research conducted by Coca-Cola
in an effort to better engage consumers
throughout the increasingly complex and
nonlinear path to purchase. "It's all about
how we're going to help them save time
and energy," she said, adding that companies are experts in talking about their
brands. "What we typically don't know in
the digital space is exactly where to put that
message and to whom."
A good place to start is by understanding Gen X, Millennials and Gen Z better in
terms of what they want, what's important
to them and why. A strong focus is placed
on Millennials because of their $400 billion in spending power. "We have to start
thinking about them in a new way," she
said. "They are digital natives, they understand what they're doing in this space, and
they grew up with everything digital."
Gen Z, in comparison, has $200 billion
in spending power, represents 30% of the
global population, and are digital dependents. "Everything is at their digital fingertips," Houghton said. Using apps, search
or anything else, "They can do it faster,
quicker and better today," she said.
Coca-Cola partnered first with Toluna
to conduct passive metering on a pool of

300 Millennials and Gen Xers. Houghton
says they chose this method because what
consumers say they do and what they actually do is often very different. They tracked
everything the subjects did on their mobile
devices, PCs, tablets, home routers, TVs, etc.
Then it was data-mining company RealityMine's turn to help make sense of all the
data. "We wanted to understand grocery
behavior - what these people were doing
on and through these devices as they went
to grocery," said Houghton, adding that
they looked at purchase day behavior, purchase influencers and general behavior, then
bucketed the behaviors and formed insights.
Findings pointed to mobile as highly
important. Data showed that for 99% of
trips that resulted in a purchase at a brickand-mortar grocery store, the mobile device was used, whether the shopper was on
social media, search, using email, on idea
sites, discount sites, retailer sites, streaming
videos or using crowd-source retail executions. There were only two areas where tablet or desktop usurped mobile, Google.com
and Amazon.com. Their activity was much
more planned and targeted on purchase
days, and more leisurely on non-purchase
days. Houghton said they also found there
wasn't a statistical difference in how the
data came out between Gen Xers and Millennials, even if the apps they employed
were. "But when we looked statistically
at where they went in search, social and
email, there was no difference in how they
behaved."
In terms of applying the findings, Houghton stressed the need to think about mobile
first. "Our shopper starts on the mobile
device," she said. "Start at search, which is
highly overlooked. If shoppers can't find
it on mobile, they'll move on." And if they

Coca-Cola's Laura
Wallace Houghton

can't find it the first time, they're not going to look a second time. Coke has long
been talking about a 70-20-10 rule. This
research has proven the 70% should be in
digital, she said.
"No one is going to play where we think
they're going to play because the lines have

been blurring for some time," she said.
Mobile has blurred everything, and it will
continue to do that. "We have to continue
to think how we're going to engage people
to help them save time and energy - and
how we're going to help crack the digital
SM
code."

Hershey Thinks Outside the Box for Halloween Merchandising
By Samantha Nelson

ROSEMONT, ILL. - Corrugate boxes typically line stores' seasonal aisles during
Halloween, with retailers prescribing color
schemes that group products by price or
type. But Hershey Co. thought that the
merchandising tactic was making it harder
for shoppers to find what they wanted, ob-

scuring a brand's familiar color palette and
seasonal creative along with the size and
unit-count of the package.
The manufacturer partnered with Lombard, Illinois-based market research firm
Explorer Research to test the theory. They
shared their process and results in Septem-

Shelley Christianson, Hershey Co.

ber at the Path to Purchase Expo.
In some stores, Hershey took its bags
of candy out of the corrugate boxes and
placed them directly on the shelves. The
company made no changes at a group of
stores with similar demographics to provide a control for the study. Explore Research monitored how long shoppers spent
in the seasonal aisle and how they interacted with the products. They observed
600 shoppers between the test and control
shops, measuring conversion along with
how much time the trip took, with an eye
on when shoppers were grabbing product
immediately or spending time searching
the aisle.
The study found that shoppers in stores
without the boxes spent less time reading
labels or picking up product since purchase
triggers like piece count, size, price and
brand name were more visible. Removing
the extra packaging also ensured shoppers
would never be disappointed after making
their decision by reaching into a box only
to find it was empty. Conversion rates were
higher at those stores than at the control
locations. "It was more efficient and it drove
higher engagement for the shopper," said
Shelley Christianson, Hershey senior manager of shopper insights.

Explorer Research also intercepted some
shoppers as they left the aisle to ask them
about their experience, conducting 400
10-minute interviews. They found that impulse purchases increased 9% in the test
environment. "People have a task mindset,"
said Anne Stephenson, partner at Explorer
Research. "If you can make that task easier,
if you don't frustrate them, you open them
up for discovery. A frustrated shopper typically will not be buying multiple items."
Eye-tracking provided a way to check
against what shoppers were saying. It
found that shoppers were scanning for
brands, since they wanted to buy confectionery they liked in case they wound up
with leftovers after doling their purchases
out to trick-or-treaters. Shoppers often decided what brand they wanted to buy before they entered the store and were mostly
concerned with size and count at shelf. The
study also found that dramatic seasonal
bags were more effective and that shoppers
wanted to check if a product had nuts in it.
The results helped Hershey get buy-in
from their retail partners, which they needed since taking product out of the boxes
was more labor intensive. But it did reduce
labor at the end of the season because the
shift resulted in greater sell-through. SM


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Table of Contents for the Digital Edition of Shopper Marketing - February 2018

Contents
Shopper Marketing - February 2018 - Intro
Shopper Marketing - February 2018 - 1
Shopper Marketing - February 2018 - 2
Shopper Marketing - February 2018 - Contents
Shopper Marketing - February 2018 - 4
Shopper Marketing - February 2018 - 5
Shopper Marketing - February 2018 - 6
Shopper Marketing - February 2018 - 7
Shopper Marketing - February 2018 - 8
Shopper Marketing - February 2018 - 9
Shopper Marketing - February 2018 - 10
Shopper Marketing - February 2018 - 11
Shopper Marketing - February 2018 - 12
Shopper Marketing - February 2018 - 13
Shopper Marketing - February 2018 - 14
Shopper Marketing - February 2018 - 15
Shopper Marketing - February 2018 - 16
Shopper Marketing - February 2018 - 17
Shopper Marketing - February 2018 - 18
Shopper Marketing - February 2018 - 19
Shopper Marketing - February 2018 - 20
Shopper Marketing - February 2018 - 21
Shopper Marketing - February 2018 - 22
Shopper Marketing - February 2018 - 23
Shopper Marketing - February 2018 - 24
Shopper Marketing - February 2018 - 25
Shopper Marketing - February 2018 - 26
Shopper Marketing - February 2018 - 27
Shopper Marketing - February 2018 - 28
Shopper Marketing - February 2018 - 29
Shopper Marketing - February 2018 - 30
Shopper Marketing - February 2018 - 31
Shopper Marketing - February 2018 - 32
Shopper Marketing - February 2018 - 33
Shopper Marketing - February 2018 - 34
Shopper Marketing - February 2018 - 35
Shopper Marketing - February 2018 - 36
Shopper Marketing - February 2018 - 37
Shopper Marketing - February 2018 - 38
Shopper Marketing - February 2018 - 39
Shopper Marketing - February 2018 - 40
Shopper Marketing - February 2018 - 41
Shopper Marketing - February 2018 - 42
Shopper Marketing - February 2018 - 43
Shopper Marketing - February 2018 - 44
Shopper Marketing - February 2018 - 45
Shopper Marketing - February 2018 - 46
Shopper Marketing - February 2018 - 47
Shopper Marketing - February 2018 - 48
Shopper Marketing - February 2018 - 49
Shopper Marketing - February 2018 - 50
Shopper Marketing - February 2018 - 51
Shopper Marketing - February 2018 - 52
Shopper Marketing - February 2018 - 53
Shopper Marketing - February 2018 - 54
Shopper Marketing - February 2018 - 55
Shopper Marketing - February 2018 - 56
Shopper Marketing - February 2018 - 57
Shopper Marketing - February 2018 - 58
Shopper Marketing - February 2018 - 59
Shopper Marketing - February 2018 - 60
Shopper Marketing - February 2018 - 61
Shopper Marketing - February 2018 - 62
Shopper Marketing - February 2018 - 63
Shopper Marketing - February 2018 - 64
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