Posted by Jim Lucas, Director, Shopper Marketing, Draftfcb

An article by Jack Neff in this week’s Advertising Age is headlined: “Trouble in store for shopper marketing?” It gives rise to some very intriguing questions: Is in-store impact diminishing? What is shopper marketing?

There is much evidence to suggest that shoppers have indeed become more “planful” in their approach to shopping (making lists, checking circulars, clipping coupons and consolidating trips). Along these same lines, the IRI’s “Transforming Economy” series suggests that some channel migration has occurred as shoppers trade-off channels in pursuit of value. The big winners appear to be supercenters. Yet because shoppers tend to purchase more items on these trips, there is a greater chance of their making in-store decisions.

Moreover, as the quoted Ogilvy Study alluded to, not all of these decisions are impulsive in the sense of being “something that wasn’t on my list.” Rather, much of the in-store decision-making is around issues like size, form and value. Increasingly, shoppers are moving from being consumers to investors. Retailers, who want to be perceived as “the value destination,” and manufacturers alike, are trying to communicate value (not just price).

Even fill-in or quick trips, such as for drugs, can typically involve OTC shelf decisions about getting the right product at the right price. So, in truth, in-store communications are probably more important than ever when shoppers want information, education and reassurance about value. Shoppers don’t want to purchase the wrong product (waste their investment).

The second question the article raises is about the nature of shopper marketing. As marketers become more savvy about the ways in which shoppers approach shopping during this recession, they are taking a more holistic view (“our product is one of many items being purchased during the stock-up trip”) and are looking beyond the store to activate shoppers. FSIs, advertising, circulars, retailer websites, online coupon websites and shopper loyalty card programs represent just a few of the things marketers are utilizing to entice shoppers to the store and shelf.