Progressive Grocer

2017 Category Management Handbook

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Page 10 of 59

December 2016 | | 11 commodate the additional investment necessary in digital and the new ways of promoting and ad- vertising, it means some hard decisions are being made. In many companies today, the organiza- tions, budgets and initiatives of these two critical advertising initiatives are only loosely connected. Better alignment and fidelity of marketing messaging to the buyer across all media types lead to higher sales and stronger long-term brand identity and preference. Leveraging your marketing investment across brand/promotion results in a greater return on investment, and a stronger brand leads to a stronger position with retail channels. ere's a lot at stake, and judging from the disparity between demographic groups in how they prefer to interact with messages and shop, time is of the essence to get it right. Advertising Isn't a Zero-sum Game Ever do everything right and you still didn't get the lift on a promotion that you were expecting? You aren't alone. ere's too much fragmentation of atten- tion to expect a home run with a single placement in the circular — unless you're able to pull off one of the best placements with the most compelling offer type and no interference from a digital offer. It's also not possible to execute a great cam- paign in one medium and expect it to reach all of your target audiences. e number of inputs being considered in the leadup to purchase con- tinues to increase. According to our most recent Shopper Insight Survey, in which we asked 1,000 primary house- hold shoppers to share insight into their prefer- ences and behaviors, there are a minimum of three media types being used by the majority of shoppers. So even if you're emphasizing the cir- cular, digital advertising and promotions are still influencing shoppers in their decision-making. In some cases, people are placing their bets on one method instead of another, which is a risky gamble. In other instances, rather than maximiz- ing the strengths of the various communication mechanisms, the silos that exist still create ob- stacles and divisions among promotions, advertis- ing, print, digital and e-commerce. e need for orchestration among all channels and touchpoints with the consumer is based on how they consume information — they don't make distinctions between brand and promotional mes- saging, so why should we? Yet, in many cases, the second-largest line item on many companyies' P&Ls (advertising/promo- tion) is still being approached separately. e good news is, progress and change are happening here as well, with best-in-class organizations leading the way by aligning these efforts. Traditional means of advertising and promotion aren't going away, but are being augmented and strengthened by the additional ways of communicating with the modern consumer. Which of the following do you use to find deals on groceries? Would you switch stores if you knew prices were lower somewhere else? Yes No 72% 70% 60% 50% 40% 30% 20% 10% 0% 28% Would you switch from the brand(s) you usually buy if you saw a different brand was on sale? Yes No 71% 70% 60% 50% 40% 30% 20% 10% 0% 29% Print Retailer Digital Emails from Retail social Retailer Mobile versions TV Print Digital circulars websites version of retailers media sites smartphone of retailer commercials coupons coupons print circular applications websites 65% 60% 50% 40% 30% 20% 10% 0% 37% 20% 26% 9% 10% 7% 21% 40% 25% Continued on page 14 Source: Market Track Source: Market Track

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