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Research Outline

Prepared for Bob B. | Delivered November 12, 2019

Digital Shopper Marketing

Goals

To understand the concept of shopper digital marketing techniques, including the major tools being used for this principle, the work done by Amazon, Walmart, Target and Kroger in this field and identify the FMCG/CPG brands working with this concept. Also, include overview about shopper digital marketing tactics from the point of view of retailers and consumers.

Early Findings

Through preliminary research, we could find that most of the shopper marketing nowadays is starting online (i.e. digital platform), much before actually arriving in the store. 58% of the in-store customers are looking at comparable products while inside a brick-and-mortar retail location. According to e-commerce and media agency sources, brands are allocating half of their advertising money on Amazon instead of in-store advertising.
  • Digital marketing has the ability to help us learn faster about our customer base and optimize many of the KPIs. However, as compared to 80% of holidays and 25% of fashion purchases made online, only 7% of the grocery shopping is done online. Digital for shopper marketing is important to target the perfect shopper through location based ads, studying consumer online behavior etc.
  • One of the most used shopper digital marketing technique is the "Buy Online, Pick Up In Store". Survey by JDA Software mentions that more than 50% of the consumers have used this feature in 2018. Some other main tools for this type of marketing are social media engagement platforms, local inventory ads and ownership of first party data.
  • This article by Azalea Commerce, company under Brand Networks, highlights the major actions taken by big retailers and e-commerce platforms like Amazon, Walmart and Target in the field of shopper digital marketing.
  • Kroger had a multi channel marketing campaign with Hasbro Games with special in-store merchandising, dedicated web page featuring digital coupons and display ads on Kroger website.
  • FMCG companies like Kellogg's is investing more in retailer-owned ad platforms, programmatic and social media as targets known shoppers and increases in-store sales.
  • FMCG and CPG companies are willing to invest more in retailer networks as their internal marketing teams don't have the breadth of audiences comparable to retailers like Walmart and Target.
  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address the stated goals.

Summary Of Early Findings Relevant To Our Goals

  • We were able to provide an overview about the concept of shopper digital marketing and touch upon major techniques which are currently being used by various brands. Some useful articles related to the work of Amazon, Target and Walmart in this field, have been linked. We have also provided some idea about how FMCG companies are handling the technique of shopper digital marketing.
  • We did not have the time in the initial hour to do research on the point of views of retailers and consumers.