Saatchi X launches shopper marketing.
Saatchi & Saatchi X, a part of the Publicis Group, has set shop in India as a dedicated “shopper marketing” agency to leverage the burgeoning retail sector. But what exactly is shopper marketing?
Simon Hathaway, regional CEO (Europe, Middle East, India & Africa), Saatchi & Saatchi X has the answer: “A 30-second commercial does one part of the job and in-store communication does another. In emerging markets, the desire for information is high even in provision stores and Saatchi X is eyeing business from brands that want to convert consumers into buyers.
In simple numbers, for bulk of Indian shoppers — one-third of final purchase choices are made in-store, more so in hyper or super markets, claims recent findings of Grey and G2’s ‘Eye on Asia’ report. According to the report, Indians spend an average 36 minutes in supermarkets and about 20 minutes in provision stores. “It’s a no-brainer to see why retail outlets have become critical for brands to engage the customer amidst the shelf competition and clutter,” reasons Bindu Sethi, chief strategy officer of Grey Asia-Pacific.
“One of the important themes for us to understand is that shoppers are willing to do what it takes to maintain their lifestyle while spending less. They’re smart, they’re savvy and they’re resourceful,” Hathaway says. He is confident that Saatchi X’s global clients, who have a presence in India like Diageo, P&G, Pepsico and LG among others will extend their shopper marketing business to the agency in India too.
Hathaway says the agency will work with both brands and retailers. The practice of shopper marketing is evolving rapidly in India, with large format retailers expecting manufacturers to bring solutions that drive trips, leverage the potential of the total store and grow basket size.
Even the Eye on Asia report notes that 50 per cent of consumers decide on the basis of what is the information provided at store level — promotions, demonstrations and advice. One of the biggest insights from the new retail environment is that shopping frequency is increasing. “With more visits per week and a slowing interest in the big weekly shop, the right thing for, say the food brands, would be to suggest customers ‘ideas for dinner tonight’ rather than just ‘ideas for dinner’,” says Hathaway.
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With 60 per cent of Indian shoppers spending an average of 25 minutes in store browsing and comparing brands, it is no easy job to sell them a brand. This only corroborate Saatchi X’s message that relevance commands a price point.
Responsible for Saatchi & Saatchi X in India, Amit Ajwani is betting on breaking even in the next two years and has hired a team of nine members. “We are working with Diageo in India and will soon sign two more international clients eager to extend shopper marketing experience in India.” The agency is also in talks with brands based in New Delhi and Bangalore and would ramp up its team size to service these regional clients in near future.
Ajwani adds that Saatchi X would work to build customer relationships with a brand, right from the time they search for product details online to offline outlets. “Whether digital, e-commerce, m-commerce, traditional media, in-store or direct communications, shopper marketing encourages retailers and manufacturers to communicate more directly with consumers. All effort is to become more helpful to shoppers,” says Ajwani.
Experts say shopper marketing is understanding how consumers behave as shoppers, in different channels and formats, so that this intelligence can be leveraged to the benefit of all stakeholders.
It is not limited to in-store marketing activities and is part of an overall integrated marketing approach that considers the opportunities to drive consumption and identifies the shopper. These shoppers need to be understood in terms of how well they interpret the needs of the consumer, what their own needs as a shopper are, where they are likely to shop, in which stores they can be influenced in, and what in-store activity influences them.