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SHELF-SAVVY

TOOLS

Introduction to
Shelf-Savvy
Marketing
Book Cover, Spine and Back

Global Customer &


Shopper Marketing SHELF-SAVVY
Converting Shoppers TOOLS
to Buyers

Introduction to
Shelf-Savvy
Shelf-Savvy Marketing

Marketing
FOR INTERNAL USE ONLY.
Copyright© 2010 The Coca-Cola Company.
DNA: The Coca-Cola Way of Marketing,
Brand Value | Brand Love and the Dynamic Ribbon
are all trademarks of the Coca-Cola Company.
Introduction to
Shelf-Savvy
Marketing

Capturing the value of


our brands by converting
shoppers into buyers.
Shelf-Savvy Marketing  7

Shelf-Savvy The Shelf-Savvy Tools Series is intended to


provide you with information about
Tools Series the different ways we create value at retail
for all the stake-holders in our System.
Each book explores a different topic in
depth, and provides you with resources
and tools to help you put the content
into action.
Use these books as a reference, as a
Commercializing with
Customers repository for global best practices, and
as a refresher.

Differentiating
Picture of Activating for
Brand / Pack
Success Retail Impact
Strategy

Prioritizing Shopper
Opportunities

Metrics
Shelf-Savvy Marketing  9

Shelf-Savvy Whatis shelf-savvy marketing?


Shelf-savvy marketing converts shoppers
Marketing: into buyers, transforming insights into value
at the shelf.
An Overview Why is it important to be shelf-savvy?
The world we market in is changing rapidly.
In this new world, more people are making
more decisions, amongst more options, in
more stores.
To win at the shelf, we must capture the
value of our brands by optimizing how
shoppers experience our brands at retail.

How do we become shelf-savvy marketers?


By thinking with the end in mind. By
understanding our brands and how they
connect with consumers, shoppers and
customers. By activating holistically, so that
we bring value to all of our stakeholders.
Shelf-Savvy Marketing  11

1
What does
it mean to be
shelf-savvy?
What Shelf-Savvy Marketing  13

Our mission:
To inspire moments
of optimism...
and happiness.
To create value.
To make a difference.
What Shelf-Savvy Marketing  15

SHOPPERS

Converting
Shoppers
Into Buyers

Our objective:
BRANDS Creating value
Collaborating
for Value
Creating
Brands
People Love for all the
CON
stakeholders
S
ER

UM S
M
TO

in our System.
RS
S
CU

What does it mean to create value?

For consumers For shoppers For customers

A positive impact An easier—and less Improved beverage


on the body, mind, price-elastic— incidence, basket size,
and spirit shopping experience and shopper loyalty
for each unique
shopping mission
What Shelf-Savvy Marketing  17

SHOPPERS
Our vision:
Design with
the end in mind—
creating holistic
BRANDS
brand and channel
experiences that
not only inspire
CO
N
RS

SU
E

M
OM

people to buy into


ER
T

S
US
C

the brand, but to


buy the brand.
What Shelf-Savvy Marketing  19

love
Fusing inspiring
brand ideas
BRANDS
with commercial
discipline
value to create value.
What Shelf-Savvy Marketing  21

Our Shopper
Marketing Manifesto:
We believe shelf-savvy
marketing converts
shoppers into
buyers, transforming
insights into value at
the shelf.
Shelf-Savvy Marketing  23

2 Why should
we evolve?
WhY Shelf-Savvy Marketing  25

The global beverage


market is fragmenting,
creating more
alternatives and 20%
greater elasticity.
20% of global growth is projected to come from
Sparkling, where we have leadership share.
80% of global growth is projected to come
from new Still categories, where we don’t.

80%

We need to be more
relevant in a world of
more options.

Source: KO
WhY Shelf-Savvy Marketing  27

As the global retail


landscape evolves, We need to actively
collaborate with

large retailers are


our customers to
create value.

creating more leverage.


Large retailers are rapidly expanding in
developing markets—creating new retail
formats and challenging traditional
shopping behaviors.
Retailers are becoming increasingly sophisticated,
leveraging scale and shopper data to build
their brands and compete directly through
customer/private label brands.
GLOBECO

Source: Planet Retail


WhY Shelf-Savvy Marketing  29

Demographic and Future Consumption Missions

social trends are


changing how people
shop—and the Stocking Up Special Occasion

beverage choices
Imminent Consumption Missions

they make. We need to adapt our


portfolio to capture new
shopping behaviors.
As lifestyles change, people are shopping
more often, with smaller transactions. Filling in Daily Shop

This creates new shopping occasions


and motivations, with more channel and
beverage options.

JIT Meals Urgent Items

Immediate Consumption Missions

Source: SONAR/MOTOR Away from Home Meals Non Grocery


WhY Shelf-Savvy Marketing  31

We are building brands


people love—but not
consistently capturing
the value. $
Globally, there is a 10 point gap between our
brand preference and volume share. Bridging
that gap is equivalent to adding an incremental
Latin American group to our business.

We must balance our


activation to capture
both Brand Value and
Brand Love.

Source: Nielsen/B3
WhY Shelf-Savvy Marketing  33

Wooing Brand Lovers


is critical—but we
can’t forget about the
opportunists.
While 60% of volume comes from
preferrers, 40% comes from more
elastic, less loyal non-preferrers.

60%
lovers
40%
opportunists

We must embrace our


most loyal users—and activate
the store to capture the large
number of trialists.

Source: Nielsen/B3
WhY Shelf-Savvy Marketing  35

A traditional media In some markets,


model will be much the leading retailer
less impactful in our reaches as many
changing world. people each week
There have been more new media
additions in the past 20 years than in
as the top 10
the past 200 years. television shows
combined.

To close the sale, we


must actively communicate
throughout the path to
purchase.

Source: Advertising Age


WhY Shelf-Savvy Marketing  37

Influences on Purchase Decisions


More purchase
decisions are being new lower price
40%
made in store. 2
$ 98
was $3.50
Shelf signage

DRUGCO Sale
While most grocery buyers have a rough
list of their planned purchases, 60%
of food and beverage purchase decisions
are made in store. Beverage buyers nothing beats
32%
Free
Store circular
tend to have more preferred brands,
but package, size and quantity decisions
tend to be made at the shelf. We must make it easy
for shoppers to buy our
brands.

28%
Brand display

Buy 1 Get 1
26%
Source: Booz & Co.
In-store coupons
28%
Package
Shelf-Savvy Marketing  39

The challenge: Are we ready to


In our new world, win at the shelf
more people are by capturing the
making more value of our brands
decisions in more at retail?
stores.
Shelf-Savvy Marketing  41

3
How do
we become
shelf-savvy
marketers?
HOW Shelf-Savvy Marketing  43

Execution is core to
our DNA.
The goal of marketing at The Coca-Cola
Company is to combine art and science at
every touchpoint to build Brand Love and
Brand Value.
HOW Shelf-Savvy Marketing  45

Leveraging
commercial
discipline to
create value at Commercializing with

retail for all our Customers

stakeholders
Differentiating
Picture of Activating for
Brand / Pack
Success Retail Impact
Strategy

Prioritizing Shopper
Opportunities

Metrics
HOW Shelf-Savvy Marketing  47

Defining the
profit pools

We can leverage our insights


to help us identify:

Commercializing with Which occasions and missions?


Customers
Which customers and channels?
Which shopper segments?
Differentiating
Picture of Activating for
Brand / Pack
Strategy
Success Retail Impact How do we unlock value?
The outcome: A clearly defined set of
target occasions, missions, customers,
Prioritizing Shopper
Opportunities
channels and shopper segments.

Metrics
HOW Shelf-Savvy Marketing  49

Creating a
differentiated offer
Portfolio strategy can help
us determine:
Which occasions?

Commercializing with Which brands?


Customers
Which packages?
Which price points?
Differentiating
Picture of Activating for
Brand / Pack
Strategy
Success Retail Impact Which channels?
Which equipment?
Prioritizing Shopper The outcome: A differentiated bundle
Opportunities
that is uniquely suited for an outlet and
the shoppers it serves.

Metrics
HOW Shelf-Savvy Marketing  51

Creating a retail
experience

Effective retail activation


will help us:
Optimize shoppability
Commercializing with
Customers
Optimize in-store
communication

Differentiating Optimize promotions


Picture of Activating for
Brand / Pack
Success Retail Impact
Strategy Optimize packages
The outcome: A retail activation that
Prioritizing Shopper communicates directly to—
Opportunities and connects with—the shopper.

Metrics
HOW Shelf-Savvy Marketing  53

Making it happen
in the market

We can quickly commercialize our


efforts across our System through:

Commercializing with
Collaborative Customer Plans
Customers
Scalable Activation Platforms
Common development process
Differentiating
Picture of Activating for
Brand / Pack
Strategy
Success Retail Impact Transferring best practices
The outcome: Effective and
efficient plans that are commercialized
Prioritizing Shopper
Opportunities
with speed and scale.

Metrics
HOW Shelf-Savvy Marketing  55

Simple metrics to
measure our progress
Accessible metrics will help us measure:
Value growth vs. volume growth
Are we creating leverage with a segmented
portfolio?
Volume share vs. preference
Commercializing with
Customers Are we monetizing the value of our brands?
Incidence
Transaction frequency
Differentiating
Brand / Pack
Picture of Activating for Amount of transaction
Strategy
Success Retail Impact
Are we impacting consumption and
purchase habits?
The outcome: A scorecard to
Prioritizing Shopper
Opportunities measure the impact of our retail
activation.

Metrics
HOW Shelf-Savvy Marketing  57

A suite of tools to
bring Shelf-Savvy
Marketing to life

Commercializing with
_DNA 3.0: Marketplace Execution Customers
(Process & Best Practice)

_Shopper Strategy
_Point of Purchase Principles
_Merchandising Principles Differentiating
Picture of Activating for
_Packaging Principles Brand / Pack
Success Retail Impact
_Promotions Strategy

_OBBPC Architecture
_Shopper Driven Category Management
Prioritizing Shopper
_Shopper Insights Opportunities
_Shopper Segmentation

Metrics
HOW Shelf-Savvy Marketing  59

7
Habits
to Win
at Retail
HOW Shelf-Savvy Marketing  61

1. Balance
Balance Brand Love
and Brand Value in all
$$$ we do
$
HOW Shelf-Savvy Marketing  63

$
2. Prioritization
Prioritize growth
and investment
opportunities
HOW Shelf-Savvy Marketing  65

3. Portfolio
Make disciplined
Portfolio choices
HOW Shelf-Savvy Marketing  67

4.
Segmentation
Build segmentation
capability for strategy
and execution
HOW Shelf-Savvy Marketing  69

5.
Differentiation
Create pack /
price differentiation
and innovation
HOW Shelf-Savvy Marketing  71

6. Occasions
Provide a compelling
reason when and why
our brands should
be consumed
HOW Shelf-Savvy Marketing  73

7. Interruption
Create retail brand
experiences…in
and beyond the
beverage aisle
Shelf-Savvy
Marketing
Capturing the
value of our
brands by
converting
shoppers into
buyers.
Global Customer &
Shopper Marketing
Converting Shoppers
to Buyers

FOR INTERNAL USE ONLY.


Copyright© 2010 The Coca-Cola Company.
DNA: The Coca-Cola Way of Marketing,
Brand Value | Brand Love and the Dynamic Ribbon
are all trademarks of the Coca-Cola Company.