Align, Aim, Perform and Grow with Shopper Marketing P2PX September 22 nd , 2016 The Clorox Approach
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Align, Aim, Perform and Grow with Shopper Marketing
P2PX September 22nd, 2016
The Clorox Approach
To
inspire you!
Today’s Objective
Whosoever
desires constant
success must
change his
conduct with
the times.– Niccolo Machiavelli
FORESIGHT
Bigger budgets mean more scrutiny
Bigger
Budgets
Increased
Scrutiny
Shopper Digital TraditionalMedia
Trade
Spending Growth Rate
Source: Deloitte
Most feel they Don’t Accurately Measure Shopper Marketing ROI
2015 Annual Trend Report
Measurement confusion
Measure ROI Don’t Accurately Measure
63%
Measure ROI Don’t Accurately Measure
2015 Annual Trend Report
Measurement confusion
to top performer
93%
17%
TopPerforming
PoorPerformers
% That Measure SM
Hub Magazine, 2014
The Top Shopper Marketers
Measure Shopper Marketing ROI
Marketing that Works
Optimize Budgets
Justify Bigger Budgets
38%
Baseball Actions-to-Wins Metrics
ROIMarketReach
SalesImpact
P&LImpact
MarketingAction
Player
SalariesStats Runs Wins
Shopper Actions-to-Profit Metrics
MarketReach
SalesImpact
P&LImpact
MarketingAction
Connect Actions to Profit with Analytics
Cost Rate Lift Rate ROIMarketReach
SalesImpact
P&LImpact
MarketingAction
Measure What Matters
In investing, just like baseball, to put runs on the scoreboard, one must watch the
playing field, not the Scoreboard
Warren Buffet
Measurement Standards
• Accurate to prove Shopper Marketing works and to improve it
– Untangle Shopper Marketing and Trade effects
– Measure Shopper Marketing synergy with Trade
• Comparable to other marketing ROI measurements
Other
MMAS
Sales Contribution
OtherMMAS
Trade
Shopper-Trade Synergy
Shopper Tactics
Coupons
Media
Base
14%
0%
1%
5%
8%
72%
11%
2%
3%
5%
7%
71%
Collaborative Planning Tools To WinWith Your Customers
Brand &
Retailer WinRetailer Win
Brand WinOpportunity
Events
Negotiate Price
Change Tactics
Brand ROI
Cate
go
ry G
row
th
HighLow
Pre-store Tactics Drive
Category Growth
Retailer
Support
Drives
Brand
ROI
Collaborate
to Win
Steps toward measurement mastery
Rough estimate
of the program
as a whole
Easy to do
SM impact is
under counted
Data is difficult
to collect
1-time data collection job
Comparable measurement
Learn What Works
Capture data real time
Planning with deep & broad knowledge
Simulations to create the best programs
Best practices knowledge
Bigger budgets, sales impact and customer relationships
Bump Charts
Marketing
Mix Models
Shopper Marketing
Model
Continuous
Improvement
Clorox’s
Approach to ROI
Strengthenthe
Discipline overall
Shopper Marketing
Our Objectives
articulatethe
Shopper Marketingbrings to the
organization
Need to
value
Our Objectives
differencesin our
classes of trade
Really understand
diverseandportfolio
the
Our Objectives
v
Clorox Diversified Portfolio
Our
Challenges
No standard
approach to measuring
Shopper Marketing
dollars spent at
the field level
A lot of personal
bias regarding
tactics
Complacency: need to constantly
challenge our thinking
Work with
Clorox internally
to align withmetrics as “valid”
AdvancedAnalytics
team
market
Join forces
to identifyoptions in the
with our
Solution
to Go FastGo slow,
• Identified 6 key customers
• Picked 2 Clorox categories
Scoping The Work (Pilot)
Collected all the data from FY14 and
forwarded to Foresight ROI to run models
Our Methodology
Benchmarked $150K+
for activity
5-6 weeks for Foresight
to run analytic models
It took a long time
to gather information!
Data turned over to
Advanced Analytics
for interpretation
Go slow, to Go Fast!
Go slow, to Go Fast
+Homecare
+Laundry Glad
+
Cat Litter
Food
Expanded coverage
What did we learn?
Validation for what we knew
Leverage
seasonality Don’t layer “dollars off”
tactics
Experiment more on
targeted tactics
When choosing
between a lower ROI tactic
and trying something new—
try something new!Partnerships yield a
much better ROI
Tell a cohesive story
along the P2P
The power behind partnerships
PineSol Hispanic Campaign
Loyalty Customer Mailer
Experiment more on targeted tactics
In-store large size
signage to drive
awareness
partnership
Strong display
integration
Feature Ad
.com
Direct Mail
Cohesive story across the P2P
• New Items
• Digital Shopper
Marketing
• Couponing
Digging Deeper
for Other “A-ha’s”
1. Efficiency rates for new items are typically lower than for Base
events
2. Industry shopper spend in support of new items averages
16% of total shopper spend
3. Leverage Base products to drive conversion of new items
4. An offer is key
5. Apply P2P approach, skew heavily to in-store
New Items Learnings
1. Coupons work harder at Mass
and Grocery, while messages
have higher returns at Grocery
and Dollar
2. Despite the higher costs,
coupons earn higher-than-
average ROI’s
3. Instant offers and solution books
are the highest-returning coupon
tactics.
Coupon Learnings
Digital Shopper Marketing Learnings
The percent of
Shopper spend on
digital is at
33%in the industry
1. Industry-wide Events with Digital
have better ROI +47%► Lower costs and have the opportunity for
precision targeting
► More likely to be well integrated full PTP
events
2. Clorox benchmarked below
industry on digital ROI► Learned specific actions to close the gap
The information shaped
our strategy and tactical plans,
going from awful to terrific!- Team Lead Strategic Grocery
Positive Reception
Why is this so important for us?
Let me start by defining Us =
Marketing(Brand and MarComm)
Finance
Shopper
Team
Sales(Both Planning
And Field Sales)
Customers
Helped us to better decide level of investment
across demand creation
Helped us better understand shopper marketing
impact across our portfolio
Gave us visibility to the plan elements that are
“working harder” for us
Why is this so important for us?
SPENDSPRING CLEANING ROI K/O/D RATIONALE
Tatic 1
Tatic 2
Tatic 3
$X.XX
$X.XX
$X.XX
High
Low - Avg
Low
Keep: Rationale here
Optimize: Rationale Here
Delete: Rationale Here
1
2
3
Why is this so important for us?
Helped us to better
decide level of
investment across
demand creation
Helped us better
understand shopper
marketing impact
across our portfolio
Strengthened our
relationship with the
shopper agencies
as we progress our
capability together
Gave us visibility to
the plan elements that
are “working harder”
for us
Identify the specific measurement
challenge for your organization
Audience Takeaways
Consider key internal stakeholders
you need to collaborate with
Realize the resources needed to execute
an ROI workstream of this magnitude
1
2
3
Share!
Share!Share!
Audience Takeaways
Thank you
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