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Creating a win, win, win situation in retail really is possible

Martin Shellaker Director at SMP - Creative Marketing Agency
By Martin Shellaker  //  Fri 21st December 2012
It never ceases to amaze me that despite the countless volumes of research highlighting that 70% (or more, depending on which research you read) of purchase decisions are made at the point of sale that brands tend towards the maintenance of a traditional approach towards marketing communications. The sales team look after the trade budget - supporting retailers price discounting initiatives (and therefore listings), whilst the brand team gravitate towards driving awareness using traditional advertising techniques.

Of course, all the evidence suggests this approach works in terms of sales volume but at what cost? The retailer wins and the shopper wins but for brands, well they lose margin. Maybe for smaller brands it could be argued that they have at least maintained their distribution i.e. more a case of not losing than winning.

Therefore, the challenge is how do you create a triple win situation - delivering benefits for shopper, retailer and brand alike. The answer lies in the brand and agency team working closely with the sales team to ensure the key customer strategies, and shopper insights are fully understood and that brand communication plans are aligned on a retailer by retailer basis.

Fantastic examples of double wins can often be seen in retailers from brands such as Coke where their sponsorship of global events and supporting TV advertising can be used to create display and visibility, effectively giving the retailer sponsorship benefits without the cost and the shopper a price deal (and often the chance to win tickets although this is rarely retailer specific). The brand of course pays the price as the total investment is massive.

Our Andrex "Puppy in Pack" campaign was delivered at time when few people had even heard the term Shopper Marketing, it delivered the triple win situation without the benefits of global sponsorship or TV advertising support. Inspired by shopper insights, this campaign broke the classic toilet tissue promotion of 12 for 9 (three rolls free) by replacing the free rolls with an Andrex soft toy in pack whilst increasing the price of the pack to reflect the value of the toy.

The shopper was delighted as they had managed to secure an Andrex toy and 9 toilet rolls for under £6. The retailer benefited from growth in category value and increased footfall. And the brand? Andrex protected their margin, built brand equity and delivered a self liquidating promotion!

To see a detailed case history click here.
Creating a win, win, win situation in retail really is possible, Martin Shellaker
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