Shopper Marketing - July 2016 - 34


PROGRAMS

Research Shows Product
Placement, Pricing Key to Sales
By Carol Angrisani

new YoRk - Marketers who analyze how supermarket shoppers navigate a category and
make the necessary pricing and merchandising changes could see increased conversion
rates. That message was delivered in March
at a Shopper Marketing Summit seminar titled "Measuring and Managing Category and
Brand Shoppability."
Store shoppability is the ability of the retail
environment to translate consumer demand
into a purchase, said presenter Raymond
Burke, professor of business administration at
Indiana University's Kelley School of Business. This means the store provides a convenient and enjoyable shopping experience,
and satisfies a consumer's needs.
Shoppable categories clearly communicate
the benefits and value of a brand. Sometimes
this requires a new planogram. "The question
is, 'How can we rearrange shelves to make it
easier for shoppers to find what they want?'"
Burke said.
Analyzing shopping behavior is important
at a time when product proliferation and duplication has created confusion at the shelf.
A typical supermarket carries about 42,000
products, and many brands have multiple
SKUs. Procter & Gamble's Head & Shoulders
hair-care line, for instance, has about 25 varieties, Burke said. "Consumers are overwhelmed
in the supermarket with too many product
34

y SHOPPER MARKETING JULY 2016

choices and varieties."
Ineffective signage, excessive clutter and
out-of-stocks are other reasons for shopper
confusion. It is estimated that 10% of sales are
lost because products are out of stock, Burke
said. This can lead to high levels of consumer
stress, reduced shopper frequency and duration, and low purchase conversion.
It's also causing "purchase procrastination," as it can take nine months from the time
consumers recognize they have a need for a
product to the time they make a purchase,
Burke said.
Marketers can measure a category's shoppability by analyzing how long shoppers
spend in the category and how they interact with products. This can be determined
through attitudinal and behavioral research,
eye tracking and shelf interaction analysis,
among other tools.
This means recording every product shoppers pick up, the order in which they examine
the product, and for how long they examine
it, Burke said. That information needs to be
considered in relation to in-store marketing
activity.
Making the necessary planogram changes
to improve a store's shoppability is worth the
effort, said co-presenter Oyvind Christensen,
founding partner of shopper research company Flow Insights. "It's a lot easier to increase



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
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