Retailers must work with suppliers on much more savvy and motivating marketing communications, says Ian Humphris
Grocery shopper marketing: never have two sides been so far apart in the same discussion. Retailers want to talk about price, and brands want to talk about their values.
Retailers will always win. They'll continue to talk about their latest price promotion while the brands, who have funded it, watch the marketing communications budget disappear into a trading black hole. So, what to do?
A 12-month study by Life Agency's TAG Brand Insight programme into in-store grocery shopper marketing found that most can be categorised into two groups: retailer-owned, and brand-owned and funded. The problem is that most retailer shopper marketing efforts look, feel and sound the same. Price, price, price.
This is bad news for brand managers who as they try to neutralise the growing own-label threat have their hands tied by all manner of customer PoS restrictions.
The result is a short-term and unprofitable spike from a trading deal or discount offered via the stores' loyalty card mailers, all supported by a couple of wobblers a brand manager's dream! The net gain is zero retailer loyalty and simultaneously crashing category and brand profitability.
So, I have two recommendations: retailer marketing teams should build their brand, both in-store and through marketing communications, beyond price. Pretend bogofs don't exist for a moment and find something new to say. Then balance this output with trading and translate it to all areas of the business and customer touchpoints. Embrace your suppliers' marketing more meaningfully. They still have big budgets! Work together to find the shared value and benefits.
Brand teams should embrace the discipline and put as much energy and time into it as into the above-the-line creatives. Forget the 25-store 'experiential'. Review pack designs and operations. Consider integrated sales promotion campaigns.
The boring fact is that for some time price promotions are going to dominate. Retailers and brands must strike a better balance in the mix by de-escalating trading offers and plugging the gaps with something motivating.
Grocery shopper marketing: never have two sides been so far apart in the same discussion. Retailers want to talk about price, and brands want to talk about their values.
Retailers will always win. They'll continue to talk about their latest price promotion while the brands, who have funded it, watch the marketing communications budget disappear into a trading black hole. So, what to do?
A 12-month study by Life Agency's TAG Brand Insight programme into in-store grocery shopper marketing found that most can be categorised into two groups: retailer-owned, and brand-owned and funded. The problem is that most retailer shopper marketing efforts look, feel and sound the same. Price, price, price.
This is bad news for brand managers who as they try to neutralise the growing own-label threat have their hands tied by all manner of customer PoS restrictions.
The result is a short-term and unprofitable spike from a trading deal or discount offered via the stores' loyalty card mailers, all supported by a couple of wobblers a brand manager's dream! The net gain is zero retailer loyalty and simultaneously crashing category and brand profitability.
So, I have two recommendations: retailer marketing teams should build their brand, both in-store and through marketing communications, beyond price. Pretend bogofs don't exist for a moment and find something new to say. Then balance this output with trading and translate it to all areas of the business and customer touchpoints. Embrace your suppliers' marketing more meaningfully. They still have big budgets! Work together to find the shared value and benefits.
Brand teams should embrace the discipline and put as much energy and time into it as into the above-the-line creatives. Forget the 25-store 'experiential'. Review pack designs and operations. Consider integrated sales promotion campaigns.
The boring fact is that for some time price promotions are going to dominate. Retailers and brands must strike a better balance in the mix by de-escalating trading offers and plugging the gaps with something motivating.
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