Shopper Marketing - July 2016 - 127


be one component of its strategy. Another group
might be a sub-segment of urban Millennials, who
are less sensitive about price but want to feel like
they're keeping up with the latest trends in eyewear.
"This segment would have a very different reason
for coming into the store," Smestad says. "You have
to build your assortment and messaging to each of
these segments very differently."
By creating more informed segments in this way,
the retailer will know exactly which customers it
is going after and how best to communicate with
them. It can then use this framework to create a
resonant message for each group.

PILLAR TWO:

Messaging

Creative must be an integral part of
the strategy: Make the message fit the
audience.
In today's non-egalitarian marketing world, a
handful of powerful brands can afford to run
outrageously expensive ad campaigns that may grab
attention without saying anything that might make
a particular group of people want to buy the product.
(A certain chatty green lizard comes to mind.) For all
other marketers, it is far more economical to tailor a
creative strategy to the needs of a specific audience.
And that will require a better understanding of the
people the marketer is trying to reach.
Along this vein, one of the critical decisions in the

above analysis is how many segments to create, and
how many different customer profile and behavioral
attributes to assign to each segment. "Part of this is
you're learning how to segment as you go along,"
Smestad says. "There are an unlimited number of
possible segments, but it's a good idea to start with
less because you can always add more as you get
better at the process."
A CPG manufacturer, for example, might start with
a segment of value-seeking Hispanic shoppers who
live in the southwestern U.S. and then assign lifestyle
attributes to further distinguish consumers within that
segment, such as "pragmatists" or "dreamers." Next,
it might cross-populate the segment with "Mom"
pragmatists or "Mom" dreamers who live in another
part of the country, or with Boomer pragmatists and
Boomer dreamers who live in the Southwest.
Any number of additional behavioral variables
could be added to further illuminate the identities
and motivations of these segments, such as attitudes
towards shopping (e.g., pleasure versus chore) and a
low, medium or high level of coupon usage. Each
permutation creates a potentially valuable new
segment and the need for a dedicated messaging
strategy. For example, this particular CPG brand
would not want to speak to its pragmatic consumers
in the same way it does to dreamers, even if both
groups share the other traits of being value-seeking
shoppers with kids living at home.
Among brick-and-mortar retailers, Kroger has
taken this process to the extreme, using powerful
computer algorithms and granular data from its

7



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

Contents
Shopper Marketing - July 2016 - Intro
Shopper Marketing - July 2016 - 1
Shopper Marketing - July 2016 - 2
Shopper Marketing - July 2016 - 3
Shopper Marketing - July 2016 - Contents
Shopper Marketing - July 2016 - 5
Shopper Marketing - July 2016 - 6
Shopper Marketing - July 2016 - 7
Shopper Marketing - July 2016 - 8
Shopper Marketing - July 2016 - 9
Shopper Marketing - July 2016 - 10
Shopper Marketing - July 2016 - 11
Shopper Marketing - July 2016 - 12
Shopper Marketing - July 2016 - 13
Shopper Marketing - July 2016 - 14
Shopper Marketing - July 2016 - 15
Shopper Marketing - July 2016 - 16
Shopper Marketing - July 2016 - 17
Shopper Marketing - July 2016 - 18
Shopper Marketing - July 2016 - 19
Shopper Marketing - July 2016 - 20
Shopper Marketing - July 2016 - 21
Shopper Marketing - July 2016 - 22
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Shopper Marketing - July 2016 - 24
Shopper Marketing - July 2016 - 25
Shopper Marketing - July 2016 - 26
Shopper Marketing - July 2016 - 27
Shopper Marketing - July 2016 - 28
Shopper Marketing - July 2016 - 29
Shopper Marketing - July 2016 - 30
Shopper Marketing - July 2016 - 31
Shopper Marketing - July 2016 - 32
Shopper Marketing - July 2016 - 33
Shopper Marketing - July 2016 - 34
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Shopper Marketing - July 2016 - 55
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