Shopper Marketing - September 2016 - 198


INDUSTRY REPORT

I

t has been a difficult year for much of the retail industry. Many of the major chains have struggled
to keep pace with an increasingly online-driven
business, posting weak sales and losing customers
in droves to Amazon.com. If there is a bright side,
it is that the disappointing results may have provided
the necessary kick in the pants for all marketers to finally embrace the future of e-commerce.
The growth in e-commerce is hardly new. In the U.S.,
online sales have grown in the (mid-teen) double digits annually since the Great Recession. During the next
five years, U.S. online sales are expected to jump 53%,
rising from $342 billion in 2015 to $523 billion by 2020,
according to Internet Retailer. One of the fastest-growing
segments is consumer packaged goods. Online grocery
spending, for example, currently accounts for less than
5% of total online spending in the U.S., but that number
is expected to increase to 11%-17% by 2023, according
to the most recent projections from food retail consultancy Brick Meets Click.
Up to this point, many traditional retailers and CPG
marketers have lagged behind in e-commerce investment and lack a clear and consistent strategy for capitalizing on the growing shift toward online sales. But that
is starting to change. Thanks to unrelenting competition
from Amazon, retailers including Walmart and Target
are expanding service and delivery options (dubbed
"click and collect"), and are working with manufacturers to bolster their e-commerce websites and improve
the online shopping experience.
One of the biggest challenges that brands and retailers face is how to create more impulse purchases online. "When you look to the online space, there aren't
the same types of communications or mechanisms like
displays that a physical store uses to trigger an impulse
buy," says Craig Elston, executive vice president of insight and strategy at The Integer Group. "We know a
lot about how impulsivity affects human behavior in a
brick-and-mortar store. But trip volume is down overall in retail stores, and clearly the trend is with online
shopping. That is why the question of whether or how
impulse behavior translates to an online environment -
particularly for less considered purchases like packaged
goods - needed to be explored in much greater detail."

A LAUNCHING POINT IN NEW RESEARCH
The Integer Group's new study probes the concept of
impulsivity through two sets of data: in-depth interviews with participants in a virtual shopalong exercise
and a detailed survey of 1,000 online grocery shoppers.
(For more on the methodology, see sidebar at right.) The
results contain insights into the goals and motivations of
online grocery shoppers and highlight the major drivers
2

of impulse purchases online. According to Elston, CPG
marketers may use the research as a launching point as
they continue to build and grow their e-commerce operations. "By gaining a better understanding of the online
shopping experience as it relates to specific categories
and need-states, clients will be able to tailor their strategies and tactics to exceed the expectations of shoppers
and snag more impulse purchases," he says.
Marketers in categories that rely heavily on immediate-consumption purchases to drive sales growth need
to know how impulsivity can be fostered online.
"It is a topic that we discuss almost every day," says
Esteban Gamboa, national sales director of e-commerce
at Jack Link's. "The clipstrip at a checkout counter is always going to drive the impulse nature of our business.
At the same time, crafting a relevant 'stock up and save'
message for the online shopper is going to drive expanded consumption and unplanned purchase behavior,
which will deliver explosive growth in our category."
Even marketers that thrive on traditional retail and
planned purchase behavior see an opportunity to motivate more impulse buying online. MillerCoors, for
example, views the e-commerce channel as a way to
expand usage occasions in the overall food and beverage category.
"Food is ahead of beverages right now, but we see the
shopper evolving to the point where e-commerce becomes a critical part of a convenience solution," says
Daniel Warhaftig, senior marketing manager for conve-

HOW WE GOT THERE
The Integer Group conducted its impulsivity study
in two phases over a four-month period in 2015.
n

n

The first phase included 15 one-on-one in-depth
interviews and a virtual shopalong exercise with
shoppers aged 18 to 34.
The second phase employed a 30-question
quantitative survey of 1,000 online shoppers. The
survey included equal numbers of male and female in the age ranges of 18 to 34 (65%); 35 to 45
(24%); 46 to 55 (11%). Half of the respondents were
shoppers of Amazon (Pantry, Fresh and Prime) and
50% shopped a mix of other major retailers.

The data was split between Heavy/Light users:
n

n

Heavy User: At least 41%+ of groceries purchased
online; spends on average more than $51 per trip;
shops for groceries online at least once a month.
Light User: At least 11-40% of groceries are purchased online; spends on average $50 or less per
trip; shops for groceries online roughly once every
two months.


http://www.Amazon.com

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

Contents
Shopper Marketing - September 2016 - Intro
Shopper Marketing - September 2016 - 1
Shopper Marketing - September 2016 - 2
Shopper Marketing - September 2016 - 3
Shopper Marketing - September 2016 - Contents
Shopper Marketing - September 2016 - 5
Shopper Marketing - September 2016 - 6
Shopper Marketing - September 2016 - 7
Shopper Marketing - September 2016 - 8
Shopper Marketing - September 2016 - 9
Shopper Marketing - September 2016 - 10
Shopper Marketing - September 2016 - 11
Shopper Marketing - September 2016 - 12
Shopper Marketing - September 2016 - 13
Shopper Marketing - September 2016 - 14
Shopper Marketing - September 2016 - 15
Shopper Marketing - September 2016 - 16
Shopper Marketing - September 2016 - 17
Shopper Marketing - September 2016 - 18
Shopper Marketing - September 2016 - 19
Shopper Marketing - September 2016 - 20
Shopper Marketing - September 2016 - 21
Shopper Marketing - September 2016 - 22
Shopper Marketing - September 2016 - 23
Shopper Marketing - September 2016 - 24
Shopper Marketing - September 2016 - 25
Shopper Marketing - September 2016 - 26
Shopper Marketing - September 2016 - 27
Shopper Marketing - September 2016 - 28
Shopper Marketing - September 2016 - 29
Shopper Marketing - September 2016 - 30
Shopper Marketing - September 2016 - 31
Shopper Marketing - September 2016 - 32
Shopper Marketing - September 2016 - 33
Shopper Marketing - September 2016 - 34
Shopper Marketing - September 2016 - 35
Shopper Marketing - September 2016 - 36
Shopper Marketing - September 2016 - 37
Shopper Marketing - September 2016 - 38
Shopper Marketing - September 2016 - 39
Shopper Marketing - September 2016 - 40
Shopper Marketing - September 2016 - 41
Shopper Marketing - September 2016 - 42
Shopper Marketing - September 2016 - 43
Shopper Marketing - September 2016 - 44
Shopper Marketing - September 2016 - 45
Shopper Marketing - September 2016 - 46
Shopper Marketing - September 2016 - 47
Shopper Marketing - September 2016 - 48
Shopper Marketing - September 2016 - 49
Shopper Marketing - September 2016 - 50
Shopper Marketing - September 2016 - 51
Shopper Marketing - September 2016 - 52
Shopper Marketing - September 2016 - 53
Shopper Marketing - September 2016 - 54
Shopper Marketing - September 2016 - 55
Shopper Marketing - September 2016 - 56
Shopper Marketing - September 2016 - 57
Shopper Marketing - September 2016 - 58
Shopper Marketing - September 2016 - 59
Shopper Marketing - September 2016 - 60
Shopper Marketing - September 2016 - 61
Shopper Marketing - September 2016 - 62
Shopper Marketing - September 2016 - 63
Shopper Marketing - September 2016 - 64
Shopper Marketing - September 2016 - 65
Shopper Marketing - September 2016 - 66
Shopper Marketing - September 2016 - 67
Shopper Marketing - September 2016 - 68
Shopper Marketing - September 2016 - 69
Shopper Marketing - September 2016 - 70
Shopper Marketing - September 2016 - 71
Shopper Marketing - September 2016 - 72
Shopper Marketing - September 2016 - 73
Shopper Marketing - September 2016 - 74
Shopper Marketing - September 2016 - 75
Shopper Marketing - September 2016 - 76
Shopper Marketing - September 2016 - 77
Shopper Marketing - September 2016 - 78
Shopper Marketing - September 2016 - 79
Shopper Marketing - September 2016 - 80
Shopper Marketing - September 2016 - 81
Shopper Marketing - September 2016 - 82
Shopper Marketing - September 2016 - 83
Shopper Marketing - September 2016 - 84
Shopper Marketing - September 2016 - 85
Shopper Marketing - September 2016 - 86
Shopper Marketing - September 2016 - 87
Shopper Marketing - September 2016 - 88
Shopper Marketing - September 2016 - 89
Shopper Marketing - September 2016 - 90
Shopper Marketing - September 2016 - 91
Shopper Marketing - September 2016 - 92
Shopper Marketing - September 2016 - 93
Shopper Marketing - September 2016 - 94
Shopper Marketing - September 2016 - 95
Shopper Marketing - September 2016 - 96
Shopper Marketing - September 2016 - 97
Shopper Marketing - September 2016 - 98
Shopper Marketing - September 2016 - 99
Shopper Marketing - September 2016 - 100
Shopper Marketing - September 2016 - 101
Shopper Marketing - September 2016 - 102
Shopper Marketing - September 2016 - 103
Shopper Marketing - September 2016 - 104
Shopper Marketing - September 2016 - 105
Shopper Marketing - September 2016 - 106
Shopper Marketing - September 2016 - 107
Shopper Marketing - September 2016 - 108
Shopper Marketing - September 2016 - 109
Shopper Marketing - September 2016 - 110
Shopper Marketing - September 2016 - 111
Shopper Marketing - September 2016 - 112
Shopper Marketing - September 2016 - 113
Shopper Marketing - September 2016 - 114
Shopper Marketing - September 2016 - 115
Shopper Marketing - September 2016 - 116
Shopper Marketing - September 2016 - 117
Shopper Marketing - September 2016 - 118
Shopper Marketing - September 2016 - 119
Shopper Marketing - September 2016 - 120
Shopper Marketing - September 2016 - 121
Shopper Marketing - September 2016 - 122
Shopper Marketing - September 2016 - 123
Shopper Marketing - September 2016 - 124
Shopper Marketing - September 2016 - 125
Shopper Marketing - September 2016 - 126
Shopper Marketing - September 2016 - 127
Shopper Marketing - September 2016 - 128
Shopper Marketing - September 2016 - 129
Shopper Marketing - September 2016 - 130
Shopper Marketing - September 2016 - 131
Shopper Marketing - September 2016 - 132
Shopper Marketing - September 2016 - 133
Shopper Marketing - September 2016 - 134
Shopper Marketing - September 2016 - 135
Shopper Marketing - September 2016 - 136
Shopper Marketing - September 2016 - 137
Shopper Marketing - September 2016 - 138
Shopper Marketing - September 2016 - 139
Shopper Marketing - September 2016 - 140
Shopper Marketing - September 2016 - 141
Shopper Marketing - September 2016 - 142
Shopper Marketing - September 2016 - 143
Shopper Marketing - September 2016 - 144
Shopper Marketing - September 2016 - 145
Shopper Marketing - September 2016 - 146
Shopper Marketing - September 2016 - 147
Shopper Marketing - September 2016 - 148
Shopper Marketing - September 2016 - 149
Shopper Marketing - September 2016 - 150
Shopper Marketing - September 2016 - 151
Shopper Marketing - September 2016 - 152
Shopper Marketing - September 2016 - 153
Shopper Marketing - September 2016 - 154
Shopper Marketing - September 2016 - 155
Shopper Marketing - September 2016 - 156
Shopper Marketing - September 2016 - 157
Shopper Marketing - September 2016 - 158
Shopper Marketing - September 2016 - 159
Shopper Marketing - September 2016 - 160
Shopper Marketing - September 2016 - 161
Shopper Marketing - September 2016 - 162
Shopper Marketing - September 2016 - 163
Shopper Marketing - September 2016 - 164
Shopper Marketing - September 2016 - 165
Shopper Marketing - September 2016 - 166
Shopper Marketing - September 2016 - 167
Shopper Marketing - September 2016 - 168
Shopper Marketing - September 2016 - 169
Shopper Marketing - September 2016 - 170
Shopper Marketing - September 2016 - 171
Shopper Marketing - September 2016 - 172
Shopper Marketing - September 2016 - 173
Shopper Marketing - September 2016 - 174
Shopper Marketing - September 2016 - 175
Shopper Marketing - September 2016 - 176
Shopper Marketing - September 2016 - 177
Shopper Marketing - September 2016 - 178
Shopper Marketing - September 2016 - 179
Shopper Marketing - September 2016 - 180
Shopper Marketing - September 2016 - 181
Shopper Marketing - September 2016 - 182
Shopper Marketing - September 2016 - 183
Shopper Marketing - September 2016 - 184
Shopper Marketing - September 2016 - 185
Shopper Marketing - September 2016 - 186
Shopper Marketing - September 2016 - 187
Shopper Marketing - September 2016 - 188
Shopper Marketing - September 2016 - 189
Shopper Marketing - September 2016 - 190
Shopper Marketing - September 2016 - 191
Shopper Marketing - September 2016 - 192
Shopper Marketing - September 2016 - 193
Shopper Marketing - September 2016 - 194
Shopper Marketing - September 2016 - 195
Shopper Marketing - September 2016 - 196
Shopper Marketing - September 2016 - 197
Shopper Marketing - September 2016 - 198
Shopper Marketing - September 2016 - 199
Shopper Marketing - September 2016 - 200
Shopper Marketing - September 2016 - 201
Shopper Marketing - September 2016 - 202
Shopper Marketing - September 2016 - 203
Shopper Marketing - September 2016 - 204
Shopper Marketing - September 2016 - 205
Shopper Marketing - September 2016 - 206
Shopper Marketing - September 2016 - 207
Shopper Marketing - September 2016 - 208
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_ecommerce2018
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201708
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201707
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201706
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201705
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201704
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201703
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201702
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201701
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201612
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201611
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201610
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201609
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201608
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201607
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201606
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201605
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201604
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201603
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201602
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201601
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201512
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201511
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201510
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201509
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201508
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201507
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201506
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201505
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201504
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201503
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201502
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201501
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201412
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201411
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201410
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201409
http://www.nxtbook.com/nxtbooks/ptp/sm_201408
http://www.nxtbook.com/nxtbooks/ptp/sm_201407
http://www.nxtbook.com/nxtbooks/ptp/sm_201406
http://www.nxtbook.com/nxtbooks/ptp/sm_201405
http://www.nxtbook.com/nxtbooks/ptp/sm_201404
http://www.nxtbook.com/nxtbooks/ptp/sm_201403
http://www.nxtbook.com/nxtbooks/ptp/sm_201402
http://www.nxtbook.com/nxtbooks/ptp/sm_201401
http://www.nxtbook.com/nxtbooks/ptp/sm_201312
http://www.nxtbook.com/nxtbooks/ptp/sm_201311
http://www.nxtbook.com/nxtbooks/ptp/sm_enhancedpreview
http://www.nxtbook.com/nxtbooks/ptp/sm_201310
http://www.nxtbook.com/nxtbooks/ptp/sm_201309
http://www.nxtbook.com/nxtbooks/ptp/sm_201308
http://www.nxtbook.com/nxtbooks/ptp/sm_201307
http://www.nxtbookMEDIA.com