Archive for the ‘Mktg – Shopping Behavior’ Category

Macy’s targeting millennials … pssst: so is everybody else.

November 12, 2012

Punch line: Macy’s is launching 13 new brands and expanding 10 other existing labels that it believes will resonate with shoppers in the 13-to-30 age group.

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Excerpted from The Washington Post’s, “Macy’s launches new brand strategy to cater to millennials, the 13-to-30 age group”


Macy’s new fashion offerings, which are being rolled out this fall and next spring, represent the first phase of the retailer’s intensive campaign to attract the highly sought-after … but challenging bunch. The tech-savvy group likes to spend and it likes brands, but shops differently.

In March, Macy’s restructured its merchandise team to focus on those shoppers and plans to make other major changes in the next three years to further rope them in. Those range from infusing tablets and other technology into the shopping experience to changing displays more frequently.

Boston Consulting Group released a study earlier this year based on a survey of about 4,000 millennials.

The research showed millennials trust their Facebook friends more than corporate ads or experts, and tend to favor spending at specialty stores, discount stores, online or outlet stores.

And they put a premium on speed and convenience.

Christine Barton, a partner at the Boston Consulting Group, says the department stores have a big opportunity to grab this customer, but they need to “refreshen their franchise.”

Edit by JDC

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Stores creating “a sense of privacy, even sanctum” … for men!

July 8, 2011

According to research coming out of Australia, and reported in RetailWire:

Male-only supermarket shopping aisles that focus on gender-specific products rather than merchandise by category could encourage men to browse longer, trial new items and spend more.

“Research has shown that there is a group of male shoppers who have a ‘fear of the feminine’ or fear shopping among women’s health products such as tampons, waxing strips, pink razors and body scrubs,”

“Further, research found that men made more purchases … of health products that were not placed in high traffic areas or next to feminine-inspired products.

Apparently, some men are apprehensive of women’s products and are therefore less likely to spend time perusing their own personal needs.”

The answer: Creating retail ‘man caves’… “Gender specific aisles providie a relief to men, inspiring them to explore and discover new products … and create a sense of privacy, even sanctum.”

I can’t wait to go shopping tomorrow … I need some “privacy, even sanctum.”

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Random Finding: Men also shop differently, valuing efficiency and independence over customer service and tend not ask for help.

Or, as Grandma Homa used to say: “Women shop, men buy.”

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In store service goes virtual … and, oh yeah, help yourself.

March 28, 2011

TakeAway: Digital bar code scanning is being utilized in stores to help customers learn more about the product, watch videos, price shop, and even help make an online purchase. 

Home Depot has taken to this strategy to provide another way for customers to get tips and help especially for those in the digital world often unwilling to ask for help but would rather just look it up or do it themselves.  

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Excerpted from Internet Retailer, “The Home Depot customers get a Quick Response from mobile bar codes” by Katie Deatsch, March 22, 2011

… Home Depot long emphasized its jovial sales staff that is eager to offer product information and tips in stores. Now the retailer is taking that help to the mobile realm.

… a series of ads incorporating QR, or Quick Response, two-dimensional bar codes that smartphone owners can scan using an app tied to a smartphone’s camera to access product ratings and reviews, how-to guides, product videos and a web page on which they can make a purchase.

… Shoppers …will be able to access information like product demos and instruction videos, relevant accessories, buying guides, project guides, and an option to purchase online. …

… Home Depot … will be able to track the scans via Scanbuy bar code system analytics to better gauge customers’ interests, view locations of scans and more…

“… customers already using mobile devices to assist in the purchasing process, and now Home Depot is embracing this technology to more closely connect our stores and customers to our digital content…”

Bar code scanning may lend itself to products such as home furnishings that can have many complex features and are often installed by do-it-yourselfers.

… enables shoppers to scan…codes on Ralph Morris products for more information about the line as well as to gain access to post-sale help such as information on how to install the Randolph Morris products.

Other retailers using bar code scanning to promote their brands. …Macy’s Inc. last month launched a QR bar code scanning marketing program …that lets in-store shoppers use a mobile device …to access videos about the designers and brands. …provide consumers with tips and information on the latest trends, and advice and inspiration from celebrity style icons via 30-second films delivered to a phone.




Edit by HH


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Home Depot Gets in Touch with its Feminine Side

February 2, 2011

TakeAway: To balance a decline in sales related to major renovations, Home Depot is pushing products related to redecorating.

Moreover, realizing that Home Depot stores can intimidate women (who just happen to be half of its customers), the chain is trying to simplify shopping through Martha Stewart Living products that carry icons to assist with coordination across categories.

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Excerpted from NYTimes, “Revamping, Home Depot Woos Women” , January 28, 2011

Without a housing recovery to revive sales of big items or major renovation supplies, Home Depot and its competitors are promoting smaller projects this spring, during what is the major selling season for home improvement stores. And that means sprucing up departments to get female customers excited about window treatments or new colors for makeovers of existing spaces.

Lowe’s, which says it has had a female focus since its beginnings, has added a line of décor products like mood lighting and chrome toilet-paper holders to appeal to women. True Value recently opened a corporate-owned store near Chicago that had wider aisles, better lighting and clear signs, part of an effort to attract women.

Home improvement stores “have been viewed as ‘very large hardware stores’ where big, burly men go to purchase their tools and supplies.”

“These big-box stores need to appear less hardware- and more improvement-driven in the image, and reflect more women in their messages.”

This is not the first time that Home Depot has tried to figure out what women want. It has been running Do-It-Herself workshops for female customers since 2003. In the early 1990s, it opened Expo Design Centers, showrooms with fresh flowers and other feminine touches. (It closed those centers in 2009.)

The Martha Stewart products are aimed at getting women who are already visiting the stores to buy more.

They are meant to spur spending across different categories, so a woman can buy paint, rugs and countertops that coordinate, increasing how much she spends for each visit.

Edit by AMW

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Trading down … from Target to Walmart

March 16, 2009

Excerpted from WSJ, ” Wal-Mart’s Trickle-Down Economics”, March 5, 2009 

The economic crisis is compelling shoppers to dig ever deeper for bargains.

Wal-Mart Stores and Target both stand to benefit from trade-down purchases, but even price-matching can’t trump Wal-Mart’s reputation for value.

Target has been matching Wal-Mart’s prices on identical items in local markets for over 10 years. That’s 20,000 to 30,000 of the roughly 80,000 products in a store.

But Wal-Mart’s image as a bastion of value may be helping it steal traffic, causing customers to purchase items that they could otherwise buy at Target for the same cost.

Target also carries more expensive variations on items such as apparel that consumers are passing over. And more than half of Wal-Mart’s products are regular purchases such as food and personal-care products, while that is about a third of Target’s mix.

Full article:

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Advertising moves from TV and mags… to store aisles

February 13, 2009

Excerpted from Strategy+Business, “Major Media in the Shopping Aisle” by M.Egol and C. Vollmer, Jan 12, 2009

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Marketers are using digital and video technology to reach shoppers at the moment that matters most … During the last few years, marketers, retailers, and media companies have intensified efforts to increase the impact of in-store advertising and make it a bigger part of the marketing mix …

A few numbers make it easier to see the growth potential of in-store media. Advertising spending in traditional media … grew by less than 2% annually during 2006 and 2007. But spending for online advertising grew by more than 20% annually … This shift reflects marketers’ desire for greater targeting, interaction with consumers, and measurability — all qualities offered by in-store media.

A similarly significant trend is the movement away from so-called measured media, such as advertising … to “below-the-line” marketing categories such as promotions, loyalty programs, word-of-mouth, events, and any form of retail store display or shopper marketing

Within the realm of below-the-line marketing, in-store advertising promises to attract substantial marketing dollars, for a number of reasons. First … Since people make most purchase decisions at the shelf, in-store advertising allows marketers to reach them just before the “first moment of truth”, when they pick up the product. Second, in-store advertising can increase the effectiveness of the rest of a marketing campaign, “activating” promotions and sponsorships by making them click in consumers’ minds …

Today, marketers can run ads on in-store video networks spanning thousands of screens in retail stores … these ads reach more consumers than the major broadcast networks [and] can increasingly be targeted to a specific aisle in the store …

The money to fuel in-store advertising’s dramatic growth will come from several sources … The growth in in-store advertising does not rep­resent a zero-sum game; it often signifies an expan­sion in the overall pie … True, some of this spend­ing has come at the ex­pense of traditional television budgets or out-of-home budgets for non-digital ads, such as static billboards, but a significant share is incremental …

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For the promise of in-store advertising to be realized, several challenges need to be addressed.

Targeting Today, the same ad is typically broadcast to every aisle across a chain. But some retailers are experimenting with in-store video advertising that achieves a level of personalization and focus unmatched by broadcast and cable TV, because messages can be customized by store aisle, time of day, and neighborhood to better target specific shopping occasions …

Quality of engagement … To counter the perception that the higher production values of home television make brands look better than retail store displays ever could, in-store video ad networks will need to develop research that demonstrates the ad recall and influence of their campaigns. They will need to show that the ads have an impact on consumers; that they are complementary to ads running on traditional broadcast and cable TV; and that they can represent an essential part of an integrated campaign …

AccountabilityUntil recently, there were no standard metrics for audience delivery that could serve as the currency to negotiate ad sales contracts or to optimize the performance of campaigns … Although existing research efforts are helpful in demonstrating the value of in-store media, they don’t provide the systematic, standard sets of metrics that are available for more established media …

Brand integration. Finally, there is significant potential for CPG manufacturers to integrate their brands more effectively into the store. Video ads, for example, may refer consumers to other products, in the same way that currently suggests complementary titles to its book buyers. Marketers can also weave product placements into programming to provide indirect celebrity endorsement.

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Some factors inhibiting the potential of in-store advertising are already being addressed … But this is not enough to engender an in-store revolution. The entire marketing and media ecosystem needs to tackle three key priorities.

First, marketers and their partners must create a programming model tailored to the retail environment … Marketers need to improve the way they frame their message … a better solution lies in creating programming that is developed specifically for retail stores …

Second, marketers and their partners need to better use in-store marketing efforts to upgrade promotions and analytics

Third, integrating in-store media with the broader marketing mix will require some organizational change. Marketing organizations need to break down the traditional walls between divisions and work more directly with a diverse set of agency and media partners … It also needs to be easier for marketers to buy ad inventory by region, rather than by store or by chain … Players across the ecosystem will also need to find a common way to track and demonstrate results …

As companies address these challenges, in-store advertising will become a more valued and widespread component of marketing campaigns. Indeed, the global market for in-store video advertising is poised to take off. Leaders who take the initiative and invest in the right combination of assets and capabilities stand to reap significant rewards …

Edit by SAC

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Full Article:

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Scan It! Bag It! Save Time! … and, oh yeah, Spend More!

February 5, 2009

Excerpted from Mediaweek, “Stop & Shop Deploys Scan It! in 50 Stores” by Katy Bachman, January 8, 2009

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Launched in Aug. 2007, Modiv Media’s Scan It! system is designed both to save shoppers time, and offer targeted promotions based on current shopping behavior and purchase history. Here’s how the system works: Shoppers pick up a hand-held device as they enter a store and scan their loyalty cards, allowing the system to track the shopper’s progress through the aisles.  They scan and bag their items as they make their way through the store. 

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Coupon offers appears on the device for products in the area where they are shopping.  If the shopper scans the item, the offer is instantly redeemed and the new price is reflected in the total on their scanner.  Once they are ready to check out they scan their loyalty card and pay. 

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A number of major brands have launched campaigns with Modiv Media, including Coca-Cola, Unilever, ConAgra and Procter & Gamble. Retailers—which get a share of the revenue from participating brands—pay for the installation of the system. “Our partnership with Modiv Media is helping us increase customer loyalty and sales by extending our ongoing effort to provide the fastest, easiest and most rewarding personal shopping experience possible,”

According to the CEO of Modiv Media, the Scan It! system saves shoppers as much as 10 to 15 minutes in the store and leads to an increased average spend of $7 more per basket, compared to shoppers that don’t use the system.  

Edit by NRV

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For AMS students – past & present:: A Rogers’ Five Factors analysis of the new device:

The good news…

  • Observable: Yes, very.  Other shoppers notice and watch to see how it works.
  • Trialability: Good.  Store associate there to assist with “training” and answer questions and convince shoppers to give it a try. 

The bad news…

  • Relative advantage: Exclusive coupons may entice some shoppers to continue to use it.  Looking at how long self-scan lines have been in operation it is obvious that most shoppers prefer to use the traditional method of checking out.
  • Simplicity: Questionable.
  • Compatibility: This will likely be the biggest hurdle for most shoppers.  “Trusting” the technology and their ability to master it is likely to take time since it is very different than the current shopping experience. 

Possible vertical niche? 

(Patient) Moms shopping with kids.  Some blog comments from mothers shopping with little ones say that the device keeps their kids engaged and entertained while shopping.

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Full article: 

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