Is your brand ready for changes in the Retail?

At present, many companies seem to have an uncertain future if they do not adapt in time.

According to the CISCO report of “Customer Experience in 2020”, 70% of purchasing decisions will be based on the experience of the consumer, who is now more demanding, empowered and with a variety of alternatives in products and services.

On technological advances, its development and innovation such as robotics, virtual reality and artificial intelligence are some tools that are beginning to work through startups. An example of this is Mastercard, who has launched in Peru its first chatbot with artificial intelligence.

Now retail will have to give real value solutions giving more importance to its customers than to its own company applying the trend of purchase based on experience.

Studies confirm that the most precious thing for the consumer is their time, that is why the retailers will have to work 24 hours a day, 7 days a week to adapt to the consumer’s time.

Knowing the preferences of consumers will be of vital importance to know their tastes, level and frequency of consumption. Anticipating what a client says or thinks about what to buy to offer tempting incentives is important to gain their attention.

And your company, are you ready for the next generation?

The experiences inside the store are important to generate an environment that motivates the consumer to buy.

Branding is the concept that indicates the way in which a brand is constituted, and revolves around the development of the attributes and values that constitute a brand, and that are subsequently communicated to the target audience.

The brands are aware that it is a very powerful component, since through the various elements that make it up, the consumer conceives an idea about the value of the offer, and in the end this translates into credibility and confidence towards certain products or Services, even, helps brands differentiate their offer.

Branding is also key in the positioning of a brand. Today more than ever, retail stores must make a clear differentiation in the market. The experiences inside the store are important to generate an environment that motivates the consumer to buy. The use of certain decoration materials, as well as the way the store is built, together create a brand experience.

According to Fit Small Business, digital signage is one of the trends that are marking the design of retail stores to obtain a greater conversion of sales. This type of signage, for example, allows stores to advertise promotions in an attractive manner. One of the disadvantages is that your costs are high. However, it prevents a sign from being designed every time a promotion is launched. In any case, digital signage is a key component to communicate offers and, at the same time, display new products or information about the brand.

Undoubtedly, branding has a powerful effect on the decision of consumer purchase, because if you consider the elements that revolve around this concept, you will be able to project the personality of the brand in order to identify the products and services that a store offers. In the end, it is possible to mark a differentiation, not only at the product level, but also at an intangible level through the service.

Source: Informabtl.com

Inside a point of sale, brands or manufacturers are in a constant struggle to be the ones that stand out the most, as well as being the most favored by the choice of the shopper. For this, in addition to the shelf location, an additional display can be an effective way to gain notoriety in store and get the customer’s attention.

As part of the Trade Marketing area, the additional exhibitions represent key strategies to elevate the promotion of a product, take it into the hands of the consumer, communicate a discount or special offer, and motivate customers to buy, even when this It had not been planned.

 
To make use of an additional exhibition that really implies an investment, but not an expense, it is important that the brand in question defines its business objectives, as well as initiating a negotiation process with the retailer so that the assembly, design and permanence of the exhibition is as optimal and effective as possible.

It may be the case that you have a recent release, which is a great opportunity to use this strategy, but it is necessary to define with caution the use of this additional space and reach an agreement with the retailer, price club or other point of sale in question.

Marketing that complements the exhibition

As it happens with the space allocated in shelf or shelves within a category, it is recommended that in an additional display also the manufacturer supports with other BTL marketing strategies to favor its promotion and thus get the client to stop to look and finish buying the product shown there.

In this sense, the following three marketing actions are suggested to boost the additional exhibitions.

• POP material: seasonal decorations, striking stands with the name of the brand visible, light inside and different designs, are some of the elements that will make pop material an effective resource.
• Proof of product: leaving a little product within reach of the shopper, or having a promoter near the exhibition raises the possibility of the consumer approaching to look, try and even buy.
• Visible prices and promotions: it is important that the client be informed if there is a special price or offer, so that when he sees it, he not only attends the exhibition, but also acquires the product.

Source: Informabtl.com

Despite the uncertainty that currently exists in Mexico, before a series of changes that impact on the economy of the country, the companies have not dispensed with BTL marketing to maintain their promotion. And among the variety of strategies that it integrates, the activations continue as the leading discipline.

In 2018, of the 55,291 million pesos invested in Below The Line, 30.3 percent went to activations, that is, 17,629 million pesos, according to the latest data from the Annual Investment Study in BTL 2019, carried out by the InformaBTL Research Department.

 The promotion offered to a brand, the possibility it gives to interact and be in direct contact with the target, to offer a different experience and put a product in the hands of the consumer, are just some of the benefits that this strategy gives to the companies that use it, which has remained the favorite of the brands for a couple of years, as shown by the figures of said research department.

Activations in retailers

Even when a brand activation is not limited to a certain space to be carried out, that is, it can be done in open or closed places, retailers are places where, given the level of affluence, it is convenient for the activity to be run by more people.

Diana Lozada, brand beer manager Tecate mentioned that carrying them out in self-service stores is effective because, being in the same place where the product is sold, the customer is persuaded more, in order to awaken their interest and desire to Acquire the product in that same visit, in addition to that in that point of sale are given to know new products or promotions that motivate the purchase intention.

The cinemas are also another type of retailer where this strategy is ideal not only to direct the purchase decision, but also to be disruptive and surprise the customers, since until now they are not a point of sale where they see themselves with frequency differentiated activations. A case that illustrates this is what has been done by Cinemex for a few months, a company that invites part of the cast of some movie in theaters to surprise visitors, an action that benefits the branding of the chain of cinemas, while the makes it more relevant for the consumer, who can increase their visits to their complexes, with the desire to have a similar experience.

Bars and restaurants are other points of sale that, being centers of consumption and coexistence, encourage the purchase of food and beverages, so it becomes an excellent point of contact with the customer to activate it, make it known a certain product and motivate it to buy it in that same bar or restaurant, similar to what happens in a self-service.

Pharmacies are usually a retailer where the activations have gained strength, at least in Mexico, especially the categories such as skin care products or personal hygiene items.

Price clubs are other establishments where activations are recurrent, especially in departments where electronic exhibits, non-perishable products, wines and liquors are displayed, among others.

As for the spaces that can be strategic and represent an area of ​​opportunity, are the gyms, places where an activation of products for personal care and beauty, as well as foods low in fat and sugar, to name a few.

Source: Informabtl.com

Due to its high load of creativity you need, sl street marketing usually generates good engagement, but also a good brand awareness.

The activations, the promotions, the material at the point of sale are some examples of the marketing channels, each of which not only has its own specifications, but also has its benefits. Among all the elements that make up the below the line, for its creativity and its visual impact, street marketing is one of the branches that stand out. But, what are the advantages that it has? Precisely ne the following lines will address some of the most important points.

Perhaps one of the main advantages of street marketing is, as already mentioned, the visual impact that campaigns of this type usually generate. Usually, people are caught on public roads by structures or interventions that are generated as part of a strategy of this type.

Street marketing strategies usually require a good amount of creativity. So they have to generate strategies that are considerably creative, which, in one way or another, allows people to live an experience, which they carry with them, which is associated with the brand that made it.

Depending on what is done as part of the street marketing strategy, there are some campaigns that can remain on the public highway for a long time, so that the exhibition is guaranteed 24 hours a day, the feel days of the week.

However, just as it happens with the OOH, when a strategy of this type begins to form part of the landscape, it is necessary to withdraw it or change it so that people can continue to be surprised and in order to generate experiences that leave a deep imprint in the memory of people.

Source: Informa BTL

Like other industries, BTL marketing has been transformed since its emergence to the present day. A very clear example is what is currently known as marketing 3.0, which, instead of focusing on the product or the target, goes a step further.

 In the industry below the line, the medium is what is evolving, because now, through different actions, an emotional connection with the client is sought. Precisely about this spoke Alejandro Corona, marketing director of Aspel, in his conference “Innovation through emotional connections”, on the second day of the BTL Conference.

One of the first questions mentioned by Alejandro Corona in his presentation was the difference between innovation and creativity: while the second refers to thinking about something new, the second is based on doing it. So the main distinction lies in the implementation of a creative idea.

“Emotions sell” ,said Alejandro Corona in his speech, mentioning that it is through the emotional connection that a brand can directly generate a reaction in the consumer and the shopper.

Emotion, as a pristine psychological factor in human nature, can be divided into four distinct categories: happiness, sadness, anger and worry. These elements work as purchase motives, so both brands and agencies must begin to create materials that connect emotionally.

However, how can information be obtained to generate an emotional connection with the consumer? Alejandro Corona explains that it must be done through research, to know the psyche of the clients and thus be able to obtain the necessary insights to generate campaigns and strategies that generate a powerful impact.

“The insights with indispensable” ,said Alejandro Corona, who also said that they are totally necessary to generate campaigns nowadays and that requires, beyond a focus group, an anthropological study.

What strategies work well to connect emotionally with people? Alejandro Corona explains that it can be done through social media; However, he highlighted the relevance of content as “king”, currently in the below the line and in marketing in general.

Source: Alejandro Ramírez – InformaBTL

Big brands like Coca Cola or McDonald’s are very well positioned, they also had a long way to go.

People specialized in the world of advertising, know well the primordial colors to achieve success in a campaign. Just as big brands like Coca Cola or McDonald’s are very well positioned, they also had a long way to go.

The color that is between the two mentioned brands is red, which is in first place in the list.

RED: According to several psychology and marketing specialists, the color red shows power. It also gets the attention of people. This is why it is most used in marketing campaigns.

BLUE: Blue is always a good option when a company wants to be trustworthy and fresh. It also provides better results.

YELLOW: This color provides power and illumination. In addition, it also attracts the audience. Represents confidence and increases levels of optimism because it causes the release of serotonin, the hormone of happiness

ROSA: It is the ideal color for a feminine and young company.

GOLD: It is the perfect color for campaigns focused on power and luxury. At BTL it represents prestige, wealth and is associated with high quality products.

GREEN: Represents harmony, restoration, peace and balance. It also means a balance when it comes to campaigns.

ORANGE: It is powerful and attractive. Representing the most commercialized products in a fun and fresh way.

COFFEE: BTL campaigns demonstrate stability and reliability, also suggest sobriety and friendship. It is used to break the barrier between the business and the customers.

PURPLE: It is a dominant color, connotes sophistication and abundance, also represents royalty.

BLACK: This powerful color can represent the modern or traditional, the exciting or relaxed, is used to contrast colors. It also adds drama and suspense.

Source: Mercado Negro

70% of the consumption is made through the traditional channel and the wineries are a very strong element in the purchase of the Peruvian.

The traditional channel in Peru is one that allows you to sell a product to the consumer through markets, warehouses and kiosks.

Among the main characteristics of the traditional channel is that the number of points of sale does not decrease despite the growth of the modern channel. In addition, it is the main means for sales of the categories of first necessity.

The economic situation causes the shopper to take refuge in the traditional channel and make daily purchases, hitting the self-service channel that is designed to generate a greater purchase routine.

“The average family makes small or medium purchases in the traditional channel. More than 80% of the shopper’s spending is by basic categories, “said Cecilia Ballarin, Client Development Manager of Kantar Worldpanel.

In the interior of Peru, the wineries and markets continue at the top, reflecting more than 90% of sales; and in the case of the capital, 70%.

The traditional channel responds especially to the need of a population whose income is daily or weekly, a population that represents more than 50% of the EAPO that forces them to make the purchase on a daily basis, with a small volume and in a nearby place.

It should be noted that the markets and warehouses are a distribution channel more than the companies choose to take their products to the consumer in the most complete, efficient and economic way possible.

CHARACTERISTICS OF THE TRADITIONAL CHANNEL

– Price is a key element

– There is little brand fidelity

– Daily or weekly income with little access to credit

– Daily purchase frequency

– Does not have own transport

– The high informality of the traditional channel allows to have low operating costs and therefore good prices

CHALLENGES AND STRENGTHS OF PERUVIAN BODEGAS

The wineries are present in our day to day.

These stores compete with the modern commerce that little by little has managed to advance in its penetration in the last 20 years.

“70% of the consumption is done through the traditional channel and the wineries are a very strong element in the purchase of the Peruvian,” said Yadira Kawasaki, business development manager of Fundes Peru.

To date, there are approximately 400,000 wineries throughout Peru, of which about 200,000 are concentrated in Lima on average.

Today, the challenge of the wineries is to renew, diversify and improve the services they offer their customers against the competition.

“The winemakers must diversify the forms of payment and that is not only cash because they are competing with the convenience and discount stores that have implemented POS. A differentiated offer of services and products will allow entrepreneurs to begin to feel the impact on their businesses, “Kawasaki told Peru Retail.

He also said that they want winemakers to realize the important role they have in people’s daily lives.

However, the wineries have great challenges to be able to compete with the convenience and discount businesses.

“Today its new competition is convenience stores and discount, because there is a vacuum that the winemakers have not filled, composed of modernity and technology,” said Víctor Guaylupo Marroquín, director of the School of Business Development of Arca Continental Lindley.

SALE OF BEVERAGES

For the winemaker, the sale of beverages will always be important, approximately 20% of the total. That is, 1 out of every 4 that goes in buys a big or small drink.

Among the buyers, the drinks represent 44% of their spending per purchase trip (average of 6 soles per soft drink).

Source: PerúRetail

Within the variety of disciplines of Below The Line, the organization, planning and execution of events is one of those that generate the greatest expectation among the public, as well as being one of the brands’ favorites.

At the end of last year, the investment destined to event marketing in Mexico was 12,450.9 million pesos, that is, 24.3 percent of the 51,879 million pesos that were invested in the BTL industry, besides being the second most important service. offered by agencies in the country.

Seminars, congresses, conferences, exhibitions, fairs, conventions, product presentations and festivals are some of the types of events that a brand, from the hand of a supplier, can develop for specific promotional purposes.

Trends in events

While a festival is very different from a seminar or convention, there are certain elements or trends that converge in the vast majority of events, and more in response to the demand of audiences to receive memorable experiences, which is ideal for brands that have , as one of its main objectives, to motivate an emotional connection with its audiences.

In this sense, Eventbrite and Global Meet and Events Forecats of American Express suggest the following trends.

• Convenience: that is, that the place where an event takes place has easy access routes, such as roads, airports, nearby hotels and other points that make their arrival and departure simple and optimize times.
• Non-traditional locations: museums, squares, not very used establishments, lounges, among other enclosures or outdoors are some of the sites that can work to improve the experience when dealing with unusual places to make an event, but which are sure to be attractive for the attendees.
• Use of new technologies: virtual reality, for example, is one of the most required in events of various kinds; thus the lived moment is maximized, as well as the emotions experienced.
• Live broadcasts, via streaming: César Monzón, Sony’s Digital Business Manager in Mexico and Latam mentioned in an interview that, thanks to this type of resource, a brand can increase interaction in social networks, as well as awareness and preference for the firm.
• Activation of sponsorships: acting as a sponsor in an event allows the development of other marketing actions at par, such as activations, direct marketing, delivery of promotional items, among others.
• Development of mobile apps of the event: create applications that show schedules of bands presentations and the scenario where they will be, that allow to select the groups of interest and emit alerts when they are close to going on stage, informative content about the event, among other types of Data optimizes the experience even more.
• Sustainable actions: applying circular economy actions such as the creation of thematic vessels, made from barley husk or compostable materials, is a trend that has been well received, which, in turn, bring added value to the consumer, improve branding , help the environment and make attendees feel identified with the brand.

Another aspect that, besides being a trend is a key factor and indispensable in any event, is the security for all attendees. In this regard, Fernando Famanía, Co-Ceo of the Ifahto agency mentioned in an interview that, in Mexico unlike other countries, it is a little care that should be a priority for brands and suppliers to guarantee not only the good execution, experience and results of the event, but also to safeguard the integrity of each and every one of the attendees.

Source: Lizbeth Sierra – InformaBTL

The visual and sensorial aspects in a store are fundamental to be able to specify the sale and generate brand positioning.

The visual aspects in a store are fundamental to be able to specify the sale and generate brand positioning.

Visual merchandising is a strategic tool that involves the generation of an attractive, sensory and emotional environment to encourage purchase in the user using all available physical space.

The consumer should be attracted to the products displayed in the store, for that it is important to ensure that the visual aspects are in harmony and that they are in trend.

To be able to make the purchase, it is important that the items in the store are organized and ranked around the concept of this. These elements involve the products, lighting, furniture, showcases, typography and colors on the signs, among others.

IMPORTANT ASPECTS OF VISUAL MERCHANDISING

Aromas: The sensory senses are important in the shopping experience, therefore, companies select a particular aroma that is present in all its premises and even impregnated in the clothes so that the user can easily identify it.

Lighting: Depending on the products of the store you can find a different lighting and according to the theme of the place. Department stores tend to have more dynamic lighting, while specialty stores such as boutiques tend to be more subtle in terms of lighting to highlight certain products.

Signag: The graphic immersed in the store has a very important identity component, however, the function of guiding the customer inside the store is also important. The testers, boxes, counters, section of shopping bags must be well distributed to ensure that traffic is agile.

¿WHAT IS THE DIFFERENCE BETWEEN VISUAL MERCHANDISING AND WINDOW DRESSING?

In both cases, what you want to achieve is to project a consistent brand image and that the buyer can recognize it just by looking at the appearance of the store, colors, smell, furniture, among other things.

This is why the choice of all these elements should be consistent with what the brand wants to convey to consumers and how they want the competition to see it. The colors as well as the typography, are aspects that determine the style of the products as well as the personality that is wanted to transmit to the objective public.

WINDOW DRESSING AND VISUAL MERCHANDISING

These two activities need to work aligned to the brand concept. The visual merchandising what it achieves is to retain the user in the store thanks to all the visual and sensorial elements and to encourage it to the purchase, the key is to create a close environment with the client, who feels comfortable in the store and who returns in the shortest possible time.

On the other hand, window dressing is responsible for capturing the greatest possible traffic in the surroundings close to the store. This action is responsible for attracting the attention of buyers who are a few meters away from the store and who in passing are interested in the products by the type of showcase assembly found in the showcases.

The value proposal must be identified and be able to mark what is the trend for the consumer and the item in which the store is located. If it is a clothing store, the armed showcase should have the latest trend in that area and make it look like something unique.

Similarly, stores such as toy stores, accessory stores, sports, among others, create a context around their products and the space itself in the shop window. While the experience that emerges from the products is more real seen from outside the showcase, the customer will enter without any doubt.

Source: Perú Retail

By introducing a new product in the market, brands use different strategies to communicate to the consumer about their launch and motivate their interest in it. One of them is packaging, which, besides containing and protecting what it contains, keeps a commercial and image function in such a way that it has a striking presentation for the target.

In 2017, 65.9 percent of consumers in Mexico said that being in front of a packaging that is attractive to them, this may be sufficient reason to change their purchasing decision, as indicated by the Research Department of InformaBTL.

The fact that a package and its design have the ability to modify an intention to purchase, responds to how it is perceived by the client and how it reacts at the brain level.

Charles Spence, professor and head of the Intermodal Research Laboratory, part of the Department of Experimental Psychology at the University of Oxford, affirms that the colors, smells and textures of a packaging are key factors, at the moment not only to make the purchase decision, but also when it comes to identifying a brand, hence several packages, wraps, bottles and others have a certain color palette.

In this sense, there are trends in design that, in addition to influencing the perception of the customer to make their purchase decision, have made the packaging allows a brand to stand out on the shelf.

SIMPLICITY

Minimalist designs, with few graphics but that highlight the image of the firm, facilitate a better reading by the shopper, besides looking cleaner and more orderly.

PASTEL COLOURS

This type of colors and tones are aimed at the sensibility of the users, besides being a great option to give the products a warm aura.

PHRASES WITH LARGE TYPOGRAPHY

A good way to get the attention of the shopper, send a clear message and facilitate the reading and understanding of what you want to communicate, the use of large-scale typography is a trend, which requires a correct choice of typography, as well as of colors and location in the packaging.

STRUCTURES, ILLUSTRATIONS AND VINTAGE DESIGN

This type of packaging, in addition to evoking a fashion and culture, gives the brand and product a strong identity, if it is a launch it strengthens its promotion and awakens in the consumer an emotional connection given the nostalgia it generates.

USE OF HOLOGRAPHIC ELEMENTS

The holographic foil stamping can turn the ordinary into something out of the ordinary, since it is able to add depth, texture and different effects.

Source:  Lizbeth Serrano – InformaBTL

The Pura Vida case, the discussion of whether Sublime was chocolate or not, or the presence of parasites in Florida mackerel preserves have been some crises that affected the main mass consumption brands last year. A year in which, without a doubt, the credibility of the companies was questioned.

In this scenario, the Estudio de Marcas 2018, which is developed every year by Arellano consultant for Día1, has gone further and includes – in addition to remembering – the level of credibility and relevance that consumers give to those brands they use most frequently. . Let’s see.

THOSE THAT LEAVE FOOTPRINT

Aligned to the trend marked since 2017, this year’s ‘top of mind’ has reaffirmed the presence of technological and sports brands in the top ten most memorable ones. Along with, of course, the brands of mass consumption, among which Gloria remains the queen, despite the reputational crisis she experienced last year.

While the leadership of the emblematic brand of the Rodriguez Rodriguez is indisputable, this 2018 fell a point against last year and shortens the gap against its competitors in the ranking. It is worth mentioning that in 2017 he already suffered a setback of five points.

Enrique Bernal, manager of Solutions of the consultant Arellano, explains that the loss is due both to the setbacks that the brand had as to a very active competition, which is gaining more space in the day to day of the people, “he says.

For his part, Marcel Verand, an expert in personal branding and teaching at Pacífico Business School, points out that one should take into consideration that today consumer tolerance has dropped considerably, even with ‘lovemarks’.

The leader is followed by Coca-Cola, Samsung and Inca Kola among the most remembered. Stresses the recovery of beverages within the count against the setback of 2017 because of the El Niño coastal phenomenon. Bernal argues that the absence of a similar event and a greater frequency of consumption allowed them to recover their privileged scepter.

The technological brands, on the other hand, also have a prominent presence in the Arellano list. Samsung is in the third position and a little behind are LG and the giant Apple, which continues to climb in the minds of Peruvians.

Bernal indicates that the technology is gaining a predominant space, to be part of the daily life of people. And do not be wrong. Ítalo Zolezzi, marketing manager of Consumer Electronics of Samsung, reaffirms this when he points out that Samsung has the objective of providing more solutions to be in the different moments of people’s lives through technology.

The sports brands, meanwhile, tread strong among the favorites for the second year in a row, despite a slight setback this year. “His presence is related to a more sporty lifestyle and, above all, to a preference for a more casual way of dressing,” says the consultant’s analyst.

CREDIBILITY IN JAQUE

Although Gloria leads the ‘top of mind’ ranking consecutively, when we talk about credibility with its consumers, the brand appears a little more relegated. According to the study, it ranks behind its direct competitors in the dairy, food and beverage categories. The Pura Vida case is not forgotten? Has the consumer become more suspicious of brands?

For Bernal, it is clear that it has impacted not only Gloria but the entire dairy category. In as much, Verand assures that the lack of credibility transcends to the marks. “The context of the country is a bit felt by corruption and widespread distrust, and that also moves to brands. It costs the consumer to forgive mistakes ” judgment.

In the case of dairy products, for example, the main motivation for a purchase today is respect for the law and transparency. A fundamental issue that denotes consumer demand and a greater concern to ingest quality products. Moreover, after the crises of last year and the latent discussion around the law of healthy eating and changes in labeling.

“The experience with Pura Vida has allowed us to learn on several fronts and one of them is that we must go far beyond what the law requires, to exceed the expectations of our consumers. So we have started several projects that will be announced very soon, “says Gloria to Día1.

According to the report, white line, universities, clinics and beverage companies are those that today enjoy the greatest credibility for Peruvians. With brands such as Samsung, PUCP and AJE with a confidence above 80%. The other side of the coin is insurance, department stores and telecommunications companies. Movistar, Ripley and Rímac throw the worst statistics.

For Verand, Movistar has not managed to establish a strong link with the consumer or to retain it, and now it suffers. Entel, in a short time, conquered that confidence.

As for Ripley, apparently, it would not have been completely cleaned up of the allegations of labor abuses facing the consumer, which is why it barely borders on 33% of credibility, adds the professor. Bernal says that, related to this, consumers begin to value more the contribution of brands to the improvement of society as a real motivation for purchase.

Although respect for the law and contribution to society are not yet among the first motivations of purchase (right now are the quality and fair price) at a general level, the executive ensures that they are factors that appear more and more often as reasons purchase of Peruvians and are escalating in the categories of mass consumption.

What will brands do to reinforce trust and stay fixed in the consumer’s mind?

Source: Claudia Inga – El Comercio