Shopper Marketing - May 2016 - 26


PROGRAMS

WPP's Sorrell Offers Tips
for Standing Out, Staying
Competitive
By Samantha Nelson

new yorK - "The world is a fairly tough place,"
WPP chief executive officer Sir Martin Sorrell
said during a March 16 telecast at the Shopper Marketing Summit. Between slow global
GDP growth, disruptive companies like Airbnb and Uber, and activist investors emphasizing short-term growth, retailers and brands
are forced to work harder than ever for less
financial gain. "Never before have marketers
had less control over brands and their messages," Sorrell said.
Over the past six years, the average American head of household has dropped the number of outlets where they shop by 30%, Sorrell
said. Meanwhile, CPGs can no longer rely on
a few major media to reach mass audiences.
New technology and fragmentation have encouraged the rise of niche brands, and 75%
of brand managers are concerned about the
impact of threats from more agile competitors, according to a 2015 American Marketing
Association survey.
"You are not in control," Sorrell said. "Between these two major forces of choice and
technology, power is squarely in the hands
of the consumer. In this environment building brands has become much more difficult.
Selling brands is much more difficult too. The
26

y SHOPPER MARKETING MAY 2016

brave among us, those who are willing to take
risk, will seize the opportunity."
Retailers have to adapt to a consumer who
expects to be able to shop for whatever they
want, whenever they want, Sorrell said. That
means paying attention to key players in ecommerce and mobile. Amazon.com accounts
for 26% of all online purchases and nearly 50%
of digital purchases are made on mobile devices. "Mobile is not an additional channel, it's a
way of life," Sorrell said. "Every time Apple introduces a new device or operating system, shopper behavior changes and we have to react."
Sorrell detailed numerous examples of
brands and retailers that have been able to react to changing consumer expectations and
needs in a wide variety of ways. Waitrose, a
retail chain in the U.K., gives customers loyalty cards and a 20% discount on 10 items of
their choice, no matter how many times they
buy them, so they can choose their own offer
rather than waiting for a favorite item to go
on sale. The program now has 5 million members, with 70% of transactions being made by
cardholders. "Transactions are morphing into
a customer relationship," Sorrell said.
Along with building loyalty, brands need
to find ways to inspire impulse purchases that


http://www.Amazon.com

Table of Contents for the Digital Edition of Shopper Marketing - May 2016

Contents
Shopper Marketing - May 2016 - Intro
Shopper Marketing - May 2016 - 1
Shopper Marketing - May 2016 - 2
Shopper Marketing - May 2016 - 3
Shopper Marketing - May 2016 - Contents
Shopper Marketing - May 2016 - 5
Shopper Marketing - May 2016 - 6
Shopper Marketing - May 2016 - 7
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