O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a navegar o site, você aceita o uso de cookies. Leia nosso Contrato do Usuário e nossa Política de Privacidade.
O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a utilizar o site, você aceita o uso de cookies. Leia nossa Política de Privacidade e nosso Contrato do Usuário para obter mais detalhes.
d i g i ta lshoppINGW H AT YO U N E E D TO C O N S I D E ROCTOBER 2012
Meet the d i g i ta l shopper connected, savvy and actively seeking choice, convenience and value for their doll ar. Success in the digital shopping environment requires a deep understanding of shopper needs, how a product category gets shopped and the ability to cost effectively deliver a product to the consumer. The digital revolution has transformed industries like music, books and travel almost entirely because e-commerce solutions delivered shopper needs in ways that traditional channels couldn’t match. Gone are the days where we had to buy an entire album because of a particular track. With iTunes, it is so much easier and economical to customize a personal music library and deliver it digitally. It is much more convenient to visit travel sites like Expedia or Travelocity to research, compare and make purchases, rather than visiting a travel agency. In publishing, Amazon’s endless book selections, authentic reader reviews, personalized book recommendations and e-book options are hard for brick-and-mortar bookstores to match. Amazon’s edge in giving shoppers tailored and relevant choices as well as highly competitive prices has forced traditional booksellers like Borders to close, and has set Amazon on pace to own more than half of the books business in the United States across all formats by the end of 2012.i So are consumer packaged goods (CPG) next in line? Is technology a friend or a foe to retailing in CPG? What does it take for CPG marketers to be shopper centric in a digital world? This paper provides a thorough assessment of the impact of digital on the CPG industry, and outlines key principles for marketing success in a world where digital is a new normal. While we acknowledge that both shopper understanding and economic considerations dictate success in the digital world, this paper focuses primarily on the former: the shopper, their category needs and the digital touchpoints that influence their behavior.2 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
shopper N EEDS Fundamental truths about shopping Digital technology is widely pervasive today and will only continue to grow at a rapid pace into the future. Over 274 million Americans have access to the Internet. ii As of March 2012, 117 million people had smartphones,iii and approximately 80 percent of them were using smartphones for shopping activities like finding stores, making lists, checking prices, researching products, sharing content and purchasing.iv Amidst these activities, people continue to want to satisfy three fundamental needs when they shop: convenience, choice and value for their money. Convenience is the ability to deliver a shopping solution that requires less time and effort. Choice is simply more variety to cater to a broader set of consumer needs. Price-value is the level of quality delivered at a certain price point. For nearly two centuries now, retail formats have evolved to better address these needs. RETAIL FORMATS EVOLVED AROUND FUNDAMENTAL SHOPPER NEEDS natural/specialty food stores hypermarkets/ mass merchandisers CHOICE warehouse club stores pharmacies supermarkets PRICE - VALUE dollar stores CONVENIENCE convenience stores4 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
W HERE PEOPLE BUY The role that category pl ays in e-commerce While e-commerce may not account for a dominant share of CPG sales today, it is still the fastest growing retail channel. Less than four percent of people in America buy CPG products online in any given monthii, but we project e-commerce to grow at a 25 percent annual rate through 2015 and more than double its current share of total CPG sales. Online CPG sales will continue to grow at a robust rate US online CPG sales ($Billions) 2% of CPG sales 5% of CPG sales te 32 Ra h wt ro lG ua nn dA 25 un po om C % 20 25 16 14 12 2010 2011 2012 2013 2014 2015 Source: Nielsen NetView Panel and Nielsen Analysis, 20126 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
Barriers and Enablers to E-Commerce Urgency Barrier Some categories face a pronounced urgency barrier, the seeking CONVENIENCE overwhelming shopper desire to buy and use at once, without waiting to have the product delivered. For confections, the consumption urgent needs need is often immediate. Convenience can be paramount and the immediate consumption nearest store suffices for that shopper mission. low delay tolerance Inspection Barrier This barrier is especially relevant to perishable food such as fresh seeking choice produce and food requiring refrigeration. Concerns about spoilage can discourage online purchasing because they negatively affect the check quality in store product value proposition if items get discarded. The need to inspect difficult to return certain products drives people to a store and they tend to buy sensory product choice other products that they need while they are there. Therefore the (e.g. smell) inspection barrier has a secondary effect on the entire basket. Stock-Up Enabler Products with predictable consumption rates and a long shelf life such as diapers or dog food lend themselves to online purchasing programs such as Amazon’s Subscribe and Save. Shoppers enrolled seeking CONVENIENCE in such programs are automatically shipped specific products on a periodic basis, and also provided with other incentives such steady use-up rate as preferred customer discounts, coupons and new product willing to stock up information. Meanwhile, retailers and manufacturers enjoy the ancillary benefit of building brand loyalty via these automatic replenishment systems. Price Enabler As for price factors, online retailers enjoy several cost advantages seeking price-value over brick-and-mortar operations, particularly related to overhead. Lower costs of doing business often convert directly into lower high price to weight ratio consumer prices or steeper discounts for digital shoppers, which (low shipping costs) allows marketers to retain price sensitive shoppers in a more profitable way. Considerations affecting the digital investment product margin decision for retailers include how online delivery charges and overall (room for discounting) pricing align with offline retail alternatives.8 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
HO W PEOPLE SHOP The importance of touchpoints in digital shopper marketing E-commerce in the CPG industry is in its nascent stages. However, digital technology does present significant potential for timely and personalized marketing. Shoppers do engage in other activities like checking prices and researching products online. Moreover, rapid proliferation of technology certainly provides marketers with a myriad of ways to interact with shoppers. Amidst this increasingly complicated marketing landscape, where should you invest in digital? Are websites more effective than coupon sites? Should you prioritize social media engagement over developing mobile apps? These are indeed difficult questions to answer. Nielsen’s recent research in Q2 2012 set out to answer these questions in the CPG industry. Our results illuminated the role that various digital touchpoints (websites, social media sites, blogs and coupon sites) play in influencing shoppers’ purchase decisions for various CPG products. We discovered that shoppers often default to only using certain touchpoints depending on what they are purchasing. It is important for marketers to understand what the relevant touchpoints are for their products, and the specific shopping decisions they influence. There are interesting differences across categories and people in terms of whether emails, blogs or websites work best. Based upon our analysis, several key principles emerged: • People utilize a variety of media and sources of information, and these vary by category and demographics. • An integrated approach, leveraging traditional and digital touchpoints, is most effective. Focusing solely on a social or mobile strategy is not prudent. • Strategies must recognize which digital touchpoints are effective. Using them judiciously in concert with traditional marketing efforts is key to success.14 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
Shoppers prefer different touchpoints for different categories % shoppers Top 3 Digital utilizing DIGITAL Touchpoints for category shopping for High Digital Usage Categories Carbonated Beverages Source: Nielsen Digital Shopping Study, Q2 201216 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
Diapers vs. Baby Food An examination of the path to purchase for diapers versus baby food provides an interesting perspective into the different role of digital technology for two seemingly related categories. At first glance, more shoppers use digital media when shopping for diapers (62%) compared to baby food (54%). This suggests that diapers are more successful in digital shopper marketing. However, a closer look reveals baby food utilizes multiple digital touchpoints more effectively compared to diapers. It suggests that marketers of diapers have room to further optimize their digital strategy, either by trying to make certain touchpoints, e.g. websites and social networks, work better for their products, or by focusing on a smaller set of more influential touchpoints, e.g. blogs. Similarly, baby food marketers that have evidently enjoyed some success in digital shopper marketing might have even more opportunity to influence certain decisions or activities along the path to purchase, e.g. planning trips and accessing deals.MORE SHOPPERS USE DIGITAL WHEN SHOPPING FOR DIAPERS, BUT BABY FOOD UTILIZES MULTIPLE DIGITAL TOUCHPOINTS MORE EFFECTIVELY DIAPERS BABY FOOD 62% 54% of category shoppers that use digital Source: Nielsen Digital Shopping Study, Q2 201220 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER
Diet Aids vs. Skin Care A similar analysis of the diet aid and skin care categories suggests that a good barometer of success in digital shopper marketing is the extent to which marketers influence key decisions along the path to purchase, rather than penetration alone. Diet aids (53%) trump skin care (42%) in terms of the percentage of overall shoppers that use digital touchpoints while shopping for these products. However, skin care products utilize digital touchpoints more effectively to engage shoppers. Marketers of diet aids can potentially learn how to make websites more influential by analyzing how skin care marketers use websites to engage with shoppers. They could also improve on helping shoppers to make better decisions earlier along the path to purchase, e.g. discovering new products. We live in a digital world and digital marketing can provide significant opportunities to connect with shoppers on a personal and relevant level. However, the increasingly complex multi- platform retail environment requires mastery of online, mobile, social, traditional and in-store media vehicles and the ability to assemble the right tactical mix. Marketers tuned-in to the digital advantage will bolster consumer engagement and involve shoppers in a more vital, authentic way at every decision point along the path to purchase. In the future as shoppers begin to want continuity between the online and offline experience, they will exercise their online expectations in offline environments. THOUGH DIET AIDS HAS MORE DIGITALLY ENGAGED SHOPPERS, SOME TOUCHPOINTS ARE NOT AS USEFUL TO SHOPPERS DIet aids skin care 53% 42% of category shoppers that use digital Source: Nielsen Digital Shopping Study, Q2 201222 DIGITAL SHOPPING | WHAT YOU NEED TO CONSIDER