Contributing to this is what Toby Desforges & Mike Anthony, authors of book 'The Shopper Marketing Revolution' label the "US $200 Billion Crime."
"We estimate that the global top 250 consumer goods companies spend US $320 billion a year in retail. Research that we've been involved in shows that 70% of that money doesn't pay back," says Desforges.
The authors cite two major contributors to the haemorrhaging. The first is that the majority are still using a marketing model based on yesteryear. The second is that because of an out-dated model, sales, marketing and key accounts continue to operate in silos with their own agendas.
Local shopper marketer expert, Jason (Frich) Frichol states, "Having worked on a number of categories and with various retailers over the last decade, the same rings true in South Africa. In some categories, there is 80% wastage. Many companies are too focussed on vacuous price and trade promotions, as a driver of short-term sales and market share, versus changing medium to long-term behaviour for sustained growth and bankable profitability. The root cause of this is that shopper marketing to this day remains on the periphery. Making shopper marketing an organisational discipline from the top down is paramount to curb and decline and stagnation. It should be on every CPG board's agenda."
In their book, the authors state that there are exceptions. There are companies that are doubling revenue, growing their brands four-fold and moving from negative ROI promotions to positive 200% in just one year. The formula is a pragmatic approach that succinctly integrates consumers, shoppers and retail customers. An approach that breaks internal silos and drives bottom line congruency. These companies have broken out of the traditional marketing practices and structures, fully embracing a revolutionary approach reinventing their business model.
Desforges will be in South Africa for a one-day intensive workshop on 11 September in Sandton to profile his proprietary models and approaches. He will be highlighting the profound impact shopper marketing can have on the business and how brand positioning needs to change to incorporate shoppers and retailers.
"Marketers need to ask better questions. How can we grow consumption? Which consumers do we need to encourage to consume more and more often? How do we get shoppers to behave in a way that will get consumers what they need?" says Desforges.
Frichol concludes, "Time and time again based on successful local case studies the central tenant for shopper marketing remains true, when you can influence and change behaviour - internally, externally and from a trading perspective - you spend less and make more. The authors' methodology and pragmatic approach is the one of the most consummate I've been exposed to."
To book seats to The Shopper Marketing Live workshop, click here.
Toby Desforges is a recognised expert in shopper marketing and customer management. He has worked with over 50 of the top 250 consumer goods companies globally, across three continents, in both line management and consultancy. A speaker, author and blogger, Toby is passionate about shopper marketing, but just as pragmatic in implementing change.
Toby Desforges began working in consumer goods in eighties, taking summer jobs in high school and college. His career has taken him all over the world and he has worked with leading manufacturers in more than 20 countries. As a line manager, he has worked with Pepsi's bottler, Britvic in the UK, Mars and Columbia Pictures across Western Europe. When his wife left him to work with the UN in Asia, Toby followed her and began a second career consulting.
In 2005, Toby co-founded engage with Mike Anthony. Toby now leads its consulting business unit internationally. In June 2013, Mike and Toby published The Shopper Marketing Revolution, their first book.
I help companies sell more products, to more shoppers, more often. With a focus on incremental and sustainable baseline growth, I offer training, coaching, workshop facilitation, creative execution & shopper messaging evaluation, measurable ROI solutions and strategic planning.
My passions are shopper marketing, consumer packaging, visual merchandising, ideation, bankable innovation, integrated marketing, tangible ROI and execution efficacy. My motto is, "Passion and persistence will get you everywhere." I strive for simplicity, practicality and information frugality.
I previously headed up the marketing for Duracell, Pringles, Braun, Canderel, Old Spice, The Snack Factory, Tampax, Kraft Sauces, Clearblue, Miracle Whip and Planters amongst many other brands. I was part of the team that grew the Fore Good group from 4 to 4,500 employees in just under 7 years. During that time, we also launched one of the first dedicated shopper marketing firms in South Africa to service the alcohol, beverage, hardware, home care and snack industries in addition to various retailers.
My teams have won numerous local and international shopper marketing, category management, marketing, public relations, in store execution and sales performance awards.
