Summerhill Market - A Rosedale gem, worth visiting!

The Summerhill Market is one of my favourite small grocery stores.  With it's unique offering it drives traffic to it's store at all hours every day of the week.  I think it's a great example of what is possible when you aren't distracted by what the latest research is telling you to do with your pricing, selection, merchandising and layout.

It is clear from the moment you enter the store that the owners are listening and trusting their business sense while using their imagination.  The owners are also cleverly keeping a  close connection with their very important shoppers.  Don't misunderstand me, I think shopper research is and can be very insightful; but the reality is that knowing your shopper and your market while applying your business knowledge beats any research, hands down.

Opened since 1954 and family managed, I absolutely LOVE shopping at the Summerhill Market.  I make any number of excuses to head over.  Thanks to the many unique products as well as fresh produce and meats, including excellent prepared foods, it isn't hard to find a reason.  Word of warning to the shoppers, this isn't the store to go to for a 'great deal'.  It's prices are well,  just plane expensive, and let's face it, anyone shopping at Summerhill Market isn't going there for a deal.  

Why shop at Summerhill Market?  It has excellent produce, meat and deli, a great selection of unique products, Montreal style bagels (my favourite), fun foodie gift ideas, fabulous entertaining tips, and has a great catering service.  Lastly, why shop at Summerhill Market?  It's fun to shop at.  Even when you are running in to pick up the catfood or milk, I am sure you will be inspired by their fabulous selection and perhaps get tempted to pick up a few more items (I know I do!).

I hope you have a chance to drop in when you are in  Toronto. I am sure you will enjoy the trip and will not leave empty handed!

 

Will you be shopping on line this holiday season?

Shopping online is increasing.   49% are planning on shopping online this year versus only 42% last year.  Clearly this is a trend that is here to stay.   But given the convenience of online shopping, why is the planned increase only 7%?  Why not higher?
My thoughts? It can be ALOT better.  I know I'd shop online more if they made some of these improvements.

• Make it faster and easier to move back and forth from the checkout to shopping
• Improve the search capabilities
• Show better pictures i.e show the product being used (versus white/plain backgrounds)
• Identify "New" launches more clearly (this is particularly important with toys!)

What's stopping you from shopping more online?
I'd love to hear back.

The importance of understanding your shopper!!

I had a bad customer service experience shopping yesterday.  I was shopping for a snazzy outfit for a gig I was doing that night.  There was a 99% chance I was going to buy something, I was a motivated shopper.  I knew I wanted something red, I knew I wanted something dressy, and other than that, I was open to what would catch my eye....  I didn't have a lot of time, so I chose to go to one of my favourite stores where I have had good success picking out an outfit in the past.

I went to boutique called, Narnia.  It's on Yonge Street north of Lawrence in Toronto. It's a small boutique, with an interesting selection of merchandize.  What I love about the store is the personalised service you get when you shop. The sales ladies are really great at  helping you find an outfit, well prior to yesterday, anyway.....

Here's how it went...
I walked into the store, started looking around and picking up various tops, and outfits, all with a red motif.  One of the very helpful sales ladies walks up to me and asks if I would like her to start a changing room for me, and I answer back, absolutely!  We give each other big smiles, and I'm happy thinking I made the right choice, I am on my way to one awesome outfit for my gig.

But that's when it all ended with a big BANG.

The sales lady takes the clothes I had chosen and looks at one of my outfits I picked up.  She turns to me and says, that the dress is sized a bit small,  and that she will include this purple dress in an extra large.  FULL STOP.  Did I just hear that?  Did the sales lady just SHOUT in the store that she was pulling another dress for me to try on in EXTRA LARGE?!!!  Are you kidding?

OK, I'll admit I'm not skinny, and even if I do or should wear an extra large, isn't that rule number one that you don't go shouting it around the store?! I was stunned.

What was her big mistake?  Besides embarrassing me by shouting out that I needed to take an extra large, she never even probed to understand what I was looking for.  If she had asked a few simple questions she would have known I wanted something in red, so the EXTRA LARGE purple outfit, wasn't going to cut it, even if it fit me like a glove.

I didn't say anything to her, but I went ahead and tried on the red outfit, and the other items I picked out, which at this point feeling out of sorts, I didn't think any of them looked good on.    I didn't try on the EXTRA LARGE purple dress, hah, I wasn't going to let her be right about that, and I left very quickly without purchasing anything in the store.

What's the lesson here?

Well - #1 never say EXTRA LARGE,  EVER,  in this type of situation.  She could have said any of a number of things, like "I have another, in a different size that you might like to compare".

The other point, is that the sales person didn't take the time to understand what I was looking for, an outfit for an outing that night that was red.

Will I go back to Narnia?  Well at this point probably, as I have had great experiences there in the past.  But the reality, is that a bad customer experience doesn't go away easily.

Lastly, for those of you who are wondering, yes, I did find my outfit for the night.  I went to a competing store across the street, TIQUE, and I got a smokin outfit for my gig!

Work your packaging on SHELF!

Do you consider the shopper in the development of your packaging?  Your brand must attract the shopper in-store to make it to your consumer!  How does it look on shelf? Alone, multiple facings, with it sub-brands, versus the competition, versus the thousands of items in the store...does it pop?   Is it distinctive, and easily recognised by the shopper?  Who does it best?

• Coke:  It's simple red and white packaging mean coke and can be seen from a great distance.

 

• No Name:   The yellow with black working  cut through on shelf communicating value and low price.  

Think of the challenge of sticking out behind a freezer door?  Who does this well?

• Breyers:   It's black packaging probably broke every designer's rules, but it's contrast in the freezer versus it's competition, is a clear winner.

Each of these brands success on shelf is due to it's simplicity and it's ability to stick out versus it's competition on shelf.

How well is your packaging working for you on shelf?

Getting on the Shopping List!

True or false?  Every Marketer wants their brand to be on the shopping list?  True!  After all, the shopper is the gate-keeper to the elusive consumer.

How lists are developed, who prepares them, when, and why, is critical, but still not well understood by all Marketers.   More importantly, with the increase in the number of shoppers making lists, and the focus on value,  how is the shopping list changing?

And even if the product makes it to the list, how does the in-store environment influence the ultimate decision to purchase?

On this latter point, I enjoyed reading the following article about the importance of the marketer understanding how the environment impacts the shopping trip, please have a read -  http://phenomenagroup.wordpress.com/2010/09/19/the-list/  

But take note, it's still critical to get your brand or category on the shopping list.

With more people making lists, they are looking for short-cuts and ways to be more efficient.  So create your own shopping list app, make your on-line sites better by streamlining planning and list making, and remember  the shopper is the gate-keeper to your consumer...so get to know them better.

Interesting Online Shopping "Youtique"

Thank-you to The Shoppologist Blog for introducing me to the "youtique".

What I like about this "youtique" is it's unique use of youtube while focusing on solving the shopper problem, what am I going to wear to....

• Wedding
• Hot Date
• Job Interview, etc

Bravo!

Canadian Tire Goes to the Foods....

What do you think about Canadian Tire's move into Food Retailing as part of it's mix in it's stores?

What I was happy to see pointed out by Mike Arnett, president of Canadian Tire Retail, in the Financial Post was that when they conducted their research, about adding food as part of the mix, the people asked didn't think it was a good idea. Even with this feedback they went and began testing it in their stores and are seeing positive results.

In my work at CPG I have seen ideas cancelled because of market research. Although I know having a success in consumer packaged goods is a challenge, I am disappointed by some companies reliance on the research to the detriment of their own business skills. Certainly research is one input into the process (where you can afford it) but it is an input!

Often times the runaway successes are for products that you would never predict....think the hoola-hoop, the pet rock, mood rings, etc.

See also the article in the Financial Post!
http://www.financialpost.com/most-popular/story.html?id=2602820

LCBO - A High End Must Shop Boutique!

The LCBO have done to alcohol, what Shopper's Drug Mart has done for make-up.  They have made the experience the same as walking into a  high-end boutique.

5 Reason's I love shopping at the LCBO! 

1) 

Beautiful Stores

Gone is any feeling of any shame upon entering these stores....instead you feel special the minute you step in. The stores are beautiful...well lit and inviting with the bottles glittering like jewels on shelves. 

2)

Expertly merchandised

Except for that little challenge with the strike a while back, the shelves are always well stocked, and the sections are easily organised and clearly signed so even the hard of sight can find what they are looking for!

3)

Retailtainment

Between the tasting's, and the courses, there is always something going on in the store that provides the interested shopper in information about the latest wine, or drink.

4)

Leverage the seasons

There is always a reason to visit the store, even if your own cellar is well stocked.  As the seasons change the LCBO is always taking advantage and communicating specials through high gloss flyers with the latest way for you to celebrate...with Beers from around the world, or Summer Drinks to make your BBQ Special.  

5)

The Best Store Magazine Ever

I know I have made a special stop at the LCBO just to pick up the latest issue of their quarterly magazine, with all of the great pictures and recipes, it's a must have, and worthy of display alongside the NewYorker!

Well enough for now...I think I'll think up a reason to head off to the LCBO...Oh yes, I'm heading to a party tonight! Maybe I'll see you there!

What is shopper marketing

What is shopper marketing?  Ask 10 people, and you'll probably get 10 different answers.  Frustrating?  You bet? Surprising, not at all!  After-all, it's a new area of marketing that's just starting out.

I know, many of you would say, it has always been here as an important consideration by both manufacturers and retailers alike.  The difference, you'd say, is that it's  been given a label.  Perhaps you are right, however giving it a label is HUGE!!!   It's forcing us all to consider what it means, and how to apply it in our business.  For those companies that get it right, it's their opportunity to pull ahead of the pack.  And don't kid yourselves, this is BIG.

So what do I think shopper marketing means?  I think that shopper marketing encompasses everything and anything that touches the shopper.   YES.  I think it is broad, and that to win in shopper marketing, those with the guts to go with this definition will WIN.

What does that mean specifically?  Well, I'd say it  covers the 4 P's of Marketing, but from the perspective of the shopper Vs the consumer.  And yes, I also think it also covers the area of bringing marketing programs alive in specific retailers, but that is much too narrow a definition if you want to leverage the power of Shopper Marketing.  

Remember, the shopper is the gate-keeper to your consumers.  If you don't get past the shopper, you will never get to YOUR consumer, and therefore understanding what makes them tick is critical.

So my question to you, is how are you defining your shopper marketing program and leveraging it in your business?!!!

I recommend that you include Shopper Marketing as an integral and equally important area as traditional Consumer Marketing and WIN!

How has the NEW ECONOMY changed shopper behaviour

I just came back from a 'girls' weekend away with a wonderful group of women.  And I took note!! All of us have now been impacted in one way or another by the recent economic downturn.  And although the news reports that the economic downturn is improving, the impact we are facing is more real than ever.  And do you know what?  The recession actually had a direct impact on what we did and where we went!

1. We chose a closer city to visit
2. We stayed at a friends home Vs a hotel
3. We chose a bring your own wine restaurant for our dinner out
4. We ate in for two of the meals 
5. We all spent less when we went out shopping Vs prior years

And as you might suspect, or notice yourself, we are not alone!

"Some of the top lifestyle changes consumers are making to cope with the current economic state include:

1. eat out less/eat in more
2. turn down the thermostat
3. be more efficient with my shopping trips
4. buy less name brand products
5. buy in bulk

• 52% of U.S. grocery shoppers said they plan to eat at home more often than last year.
• 96% of shoppers considered it important that any new product provide them value for the dollar.
• Over 80% of consumers said they will spend the same or more on essential personal care products as they did last year."  http://shopper360.blogspot.com/2009/01/mind-of-american-grocery-shopper.html

So take note!  Expect the changes in purchasing habits to continue throughout 2010.  Consumers of all socio-economic  background are adjusting to the new normal and re-evaluating their spending and the value equation.  Here are a couple of ideas to consider for your business.

1. Leverage 'home' entertainment themes 
• Games Night
• Fine Dining at Home
• Kids Party's
• Bring back the 'family' dinner
2. Communicate value 
• Salon Vs dyeing your hair yourself
• Pizza delivery Vs at make it at home
• Brown bagging it

Now more than ever, being budget conscious is in!  Make it easy for your consumers to find value as they navigate through the new normal!

Good luck and good shopping!

Quick Trip - Dinner Tonight

Did you know that shopper's are spending more than money in your store?
According to the work done by Herb Sorensen, he describes the three currencies being spent in your store as money, time and angst.

Most of the research to date has been spent looking at the money being spent, but what happens when we start considering the other currencies of time and angst. There are relatively easy solutions a retailer could execute to address these challenges that wouldn't involve massive changes and cost to the store. To help paint the picture, think about a typical working mom solving tonight's dinner with a quick trip to the grocery store. By putting yourself in her shoes, and better understanding her challenges, what do you think the store could do to reduce time and angst.

It's Tuesday morning, she gets up, turns on the coffee, grabs a shower, gets dressed, gets her kids up, grabs her coffee, makes breakfast, makes the kids lunch, throws in some laundry, gets the kids in the car, drops them at school, heads to the office, works, heads to the gym at lunch, works some more, and heads home. On her way home to pick up her kids she wonders what she will provide her family for supper. She stops at the grocery store to pick up ingredients for a meal to serve her family that evening. She walks around the store frustrated, worried she'll be late to get her kids. She ends up picking up a few things she's made before, and heads on her way to get the kids. Tired, frustrated, and hoping she got everything she needs for tonight's dinner.

By understanding this shopper better, the grocery store could have reduced her time and angst and made her into a loyal shopper. Here's how:

1) In the meat aisle have 3-5 pictures and/or displays meals with the recipe cards and the ingredients.
2) In the produce section display a 2 vegetable dishes that take 5 minutes or less to prepare.
3) On an end cap, have a display showing healthy lunches for kids, along with the products
4) Change the meal suggestions and end caps regularly to keep it fresh and informative.

If this mom had this shopping experience, where do you think she would stop next time she needed a quick meal solution for her family?

Oh I wish grocery shopping could be more like clothes shopping! Don't you?!

Oh the joy of clothes shopping. Why couldn't grocery shopping be more like clothes shopping? I got to thinking about this question, and wondered whether manufacturers and grocers could learn a thing or two from clothing retailers. Here are a few points I came up with....


Here are a few things my favourite clothes store does well and how it could work at grocery!
Product at my favourite clothing store is always displayed prominently. This allows me to see, touch, and even try on the product!
1) Could manufacturers reduce the packaging and make the products themselves stand out more? It could be a great environmental move too with less wasted packaging.
Clothes are merchandised by outfit: this top, that skirt, this scarf, those tights & voila my 'Friday Night' outfit! I'll take it all!!
2) Wouldn't it be great if the grocery store had areas dedicated to meal solutions with all of the ingredients together?! I'll buy it all, and now I have my outfit and my dinner planned!
My favourite clothes store displays product perfectly in my line of vision, right between my knees and shoulders.
3) Grocers should do more merchandising in our site of vision. They have the right idea in fresh produce, now do more of that in other areas of the store.
Merchandise and displays are changed frequently at clothing stores.
4) You might point out that products are changed frequently at the grocery store too, but did anyone really notice? There is a big opportunity for the grocer who can do a better job displaying new items more prominently!

That's it for today, I think I will go shopping now! ; )

What makes a Customer Loyalty Program Successful

Today I want to share what are key criteria to creating a successful loyalty program and why it works for Tesco! This is based on information I learned from reading the book, Scoring Points! What do you think? Do you agree?!

What makes a successful loyalty program

1) The loyalty program has to be regarded as a strategic tool of the business.
2) It has to reflect the brand’s core strength.
3) It has to be tailored to the brand.
4) It has to reinforce and support the perceptions of the brand it is building loyalty in.
5) It has to be LOVED by the business.

Why it works for Tesco:

1) It fulfills their mission statement of creating value for customers to earn their lifetime loyalty.
2) It ties in with their brand positioning of ‘every little helps’.
3) They don’t treat it as an alternative to creating other types of value, like great customer service, but as a program that helps build and support the brand.

I agree that there would appear to an excellent link between the branding and the program from what I have learned about Tesco. Doesn't any strategy need to be embraced by the business, if it's truly going to be successful, Vs just another attempt by the business to execute the latest trend, like shopper marketing, for example ; ).

Love to hear your comments!

Source:
Humby,C, Hunt,T, Phillips, T. Scoring Points, How Tesco continues to win customer loyalty.Kogan Page 2009

My two cents on the Grocery Shop this week!

I was out in the grocery stores, and was thinking about this experience versus the extreme...the speciality shop...
Speciality shops I can think of off the top of my head are...
1) Butcher's
2) Bakeries
3) Ice Cream or Gelato Bars
4) Chocolatiers
5) Charcuteries
6) Cheese shops
7) Coffee shops
8) Pasta shops
9) Fruit and Vegetable stands
10) Fish shops
11) My favourite : )...wine shops
12) My son's favourite - candy shop!
Contrasting this with my experience in a typical grocery store, well, as you can imagine, it doesn't deliver the same experience. The only sections where Grocer's have made an effort in a consistent way is with the:
1) Bakery
2) Fish
3) Fruits/Vegetables
4) Charcuterie
Opportunity
There is a BIG opportunity for Retail to redefine the centre of the store (to truly pantry items) and bring some of the indulgent 'foodie' sections to life! Have you seen the typical in-aisle candy section!!! What about the in-aisle chocolate? BORING!!! Do you really think that these sections need be treated with the same hand as canned goods, and toilet paper? I have seen a few efforts to do a better a job with this but there is a great deal of room for improvement. And I am not talking about putting up signage in-aisle!! Grocery Retailers should consider bringing these shop experiences to life with the categories where it is no-brainer like with chocolate/candy/coffee.

Can't wait to shop when this happens!

QUICK FIX TO DRIVE SALES .... INCREASE DISTRIBUTION

For a Consumer Packaged Goods Company, one of the most obvious ways to drive sales is to increase the distribution of its existing skus. Makes sense doesn't it? If your product is on shelf and available in more stores (we will assume for the moment there is consumer demand and it's in the right part of the store) more people will see it, and you will convert more shopper's to buyers.

Sounds easy doesn't it??? OK, Sales Team, go out and get 100% distribution!!!

However every sales person will role their eyes (I might even get a nasty note) and rightly so, when their business leaders have the NERVE to say that! Their answer back to the Business Leaders? How? Or, perhaps worse, they will just tune out the request (depending on the people) and figure it's just business leaders making unreasonable requests again!!!

So today, I am going to tell YOU, the business leaders, marketers, and sales team, how to increase distribution. And yes, it's easy, but you would be surprised how few companies are doing this.....

PRIORITIZE Your SKUS!

Yes you heard me, that's what I said, PRIORITIZE. OK, OK you're right it's a bit more complicated than that. I will explain. But before I do, business leaders, marketers, here's the challenge: if your business has 100 unique products (SKU's) and the average grocery store only carries 50 SKUs in the category , we should all agree that you are NEVER going to get 100% distribution on all 100 products.

Do we all agree?!

So does it mean you should cut the number of SKUs? No, not necessarily. It does mean that the business must adjust it's expectations. The business cannot get 100% Distribution on all 100 Skus. However, you could get 100% distribution on your top 5 or so skus (presuming they are all round solid sellers). And I would bet that there are probably a lot of top SKUS that are not 100% in distribution. And understand this, that by increasing the distribution on just these 5 skus, you will drive significant increase in sales (they are after all the top sellers!). You'll have to do your own calculations, but it can be significant!

So how do you improve it?

STEP 1: Gain alignment from Marketing/Sales/Retail Sales/Retailers - on the top 5 skus. (Not always an easy task depending brand marketers etc.)
STEP 2: ACTIVATE as outlined below:

a) 100% of all planograms MUST have all 5 SKUS included (from the biggest to the smallest set) at all customers
b) You must Prepare a List of the 5 SKUS (let's call it the CORE SKU List) for Sales, Retail Sales and Inside Sales
c) You must then measure your distribution of the skus and track the improvement
d) You then must reward your team for achieving these objectives.

I promise you, if you all get aligned and focused on this objective and follow these relatively simple steps you will definitely improve distribution AND you will increase your sales!

So what are you waiting for??????

Hilarious - Focus Group Test - Tesco

Well, as I said I am reading Scoring Points, the book written about the Tesco Club Card Success. I wanted to share with you a hilarious focus group test they did as they were learning the ropes. This kind of focus group test is why companies, even successful ones, can make mistakes! Remember, making mistakes is ok if you learn from them. I am sure Tesco learned from this one!

So, basically Tesco wanted to start a club card for students. Makes sense, develop loyal shoppers from an early age, and then ensure you keep them. In order to go after this target market they decided they should do a focus group!! So they invited students, offered them free beer, wine and sandwiches and began the focus group. Like all focus groups, the company representatives sat behind the two way mirrors and watched. And what did they watch???? The students ate the food, guzzled the beer and wine and proceeded to get 'drunk'! And at the end of the session, the students loaded up the left over sandwiches, beer and wine into their pockets and stumbled out. Likely they forgot about the two way mirrors.

I laughed so hard when I read that story!!! For those of you who remember your student days, perhaps you too could see yourself eating the free food and drinking the beer and walking out with the leftovers (of course). Unfortunately they didn't get much useful information from this focus group. The comments given as the students drank more, made less and less sense!! Next time??? Maybe invite the students in for free breakfast and skip the free drink!! Free food, I'm sure, would still be a powerful draw to the students!

This story in the authors words is on page 83 of Scoring Points.

Reading - Scoring Points - About TESCO

Today I begin my blog! If you’re like me, you struggle finding information on the internet that relates specifically to your professional area. Well, today rather than look, I am creating it for myself! This blog targets what I was looking for...It’s a blog dedicated to giving YOU the consumer product goods professional information on shopper marketing, category management, trade marketing, consumer marketing, and anything else I hunt down that is available and applicable to your business!

THIS MIGHT BE INTERESTING TO YOU:
Just started reading the book SCORING POINTS - it’s about how TESCO learned to use it's customer loyalty information. It was the company, ‘dunnhumby’ that worked with Tesco to pioneer the use of the information (in fact working with TESCO is how dunnhumby came into being!). I’ll let you know if there is anything I think is of use in the book that can be applied to our jobs! Stay tuned.

As another point of interest, did you know that dunnhumby, in addition to it's work with TESCO, has done work with KROGER in the US, and yes, dunnhumby has just started doing business in CANADA. In November they signed a joint venture with METRO! Their offices in Canada are actually literally located within METRO's Offices. For those interested, they are also hiring!

As consumer goods professionals it will be interesting to see how this new agreement will impact METRO's Business!

That's it for today! Feel free to let me know your questions, or share information that you think is of interest to us - CONSUMER PRODUCTS GOODS PROFESSIONAL!