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

At the point of sale you can use different strategies to guide the purchase intention and make a particular brand and product more visible. Therefore, the implementation of an additional exhibition becomes a key action for this purpose.

Valeria Di Cicco, InformaBTL columnist and expert in retail, shopper and trade marketing, points out that using an exhibition of this nature, such as an island or headboard, interrupts the tour of the shopper in the store, which allows the customer to attend certain product shown there, and in this way you feel motivated to buy, even though you had not planned to do so.

 
Generating this type of impulse purchases benefits not only the brands, but also the retailer in its sales and profitability.

POP material, ally of the additional exhibitions

Although the protagonist in an additional exhibition is the product and manufacturer, it is necessary that the buyer perceives a good communication and clear messages, in such a way that the purchase intention is greater and the exhibition really fulfills its purpose.

In this sense, POP material (Point of Purchase) can be a strategic ally to make the impact of the headland or island greater, attract more attention and contribute to a sale.

But what is the POP material that helps an additional exhibit to be more profitable?

Alberto Flores, Creative Director of the design agency FOIC LECANDA, commented in an interview that this type of material allows a brand to reinforce and expand the communication of a certain message, as well as to put before the consumer additional information that will influence its final decision shopping.

To praise that there is a promotion as a discount, a gift when acquiring a certain article, exposing the benefits that a certain product has, mentioning that with the purchase of certain merchandise a social cause is helped, it will make the POP material responsible for communicating that persuade the client , to the point of motivating a special interest to buy.

According to Storecheck data, 44 percent of shoppers direct their gaze to headers, another 42 percent to the islands and 10 percent to stoppers or hanging on the shelf.

These figures show the relevance of POP material not only within a department and category, but also in an additional exhibition.

According to the Research Department of InformaBTL, of the total invested in 2017, 4.1 percent was allocated to the creation and application of POP material at the point of sale.

Source: Informabtl.com

As of today, promotional items continue to be enjoyed not only by consumers, but also by the brands that make use of them.

Diana Lozada, brand beer manager Tecate mentioned in an interview with InformaBTL that, as well as other marketing actions, the promotions have evolved in terms of design, the type of product delivered, as well as the mechanics to give them to consumers, which has led to prevail and have gone from being a commodity to products that awaken desire in the target.

 
According to data from the Research Department of InformaBTL, in 2018, 87 percent of Mexicans received at least one promotional item, and 85 percent said that they use these products.

Promotional, why should you use them?

One might think that when using promotional items, what a brand wants is just to be grateful to the consumer for their preference or, in the future, to resort to their goods or services.

However, these are not the only benefits that a company gets from a promotional item.

Data from this research department indicate that among the advantages it offers, there are points that stand out and make this marketing action one of the favorites for certain brands.

• Reminder: not only is it about having the name and image of a company in mind, but also to encourage your recall influences future purchases that will favor the brand in question, in addition to promoting the preference towards it.
• Generate a purchase: special edition glasses, cylinders with a certain image, notebooks with personalized designs, among others can lead a consumer to buy a good or service, just to get that promotional, and in Mexico there are people who would even pay more for a product, as long as you have the promotional that accompanies it.
• Win the customer’s preference: by making this type of items appeal to the emotional side of customers, it is easier to gain the preference of the target, since giving these products denotes a form of appreciation by the brand.

Source: Informabtl.com

In 2018, Dior was the luxury brand that most excited the Mexican consumer, according to a study.

The luxury goods and services industry has grown considerably in Mexico, so much so that it has made the country the largest market in Latin America, after having reported around 7,000 million dollars in sales, only in 2018, according to Euromonitor data. International.

Even though India is the country with the highest growth in this sector worldwide, the Mexican Republic continues to be a strategic country for the brands that belong to this industry, and more before, an increasing demand for premium products derived from the lifestyle, as well as the influence that marketing campaigns have on the consumer’s purchasing decision.

 
In August of last year, the MLBM agency published its ranking of luxury brands that most excited Mexicans, top ten in which Dior was placed as the leading firm to obtain 48.3 points, followed by Channel, Tiffany & Co. and Rolex, which obtained 41.8, 34.5 and 34.1 points, respectively.

 This is how luxury brands seduce in PDV

One of the distinctive elements that characterize both brands and their products, as well as their promotional campaigns, is the aspirational factor, since much of their communication is about the client can achieve a certain status thanks to certain good or luxury service, something that directly impacts your emotional side and that can take you not only to a purchase, but also to a long-term relationship and sense of belonging.

But in addition to this discourse, the points of sale of this type of brands represent a key element to attract the public, make them enter and feel even excited to be there. What makes these retailers get the customer’s attention?

The visual merchandising is one of its greatest allies, because thanks to its decoration, color in its walls, aromas, music, lighting, stock arrangement and layout design make it not only the access and movement inside the point of sale be simple, but also pleasant, which makes the shopper spend more time inside the store and with this his purchase intention increases.

The shop windows are also another factor of great influence, since the vast majority not only shows the latest collection of clothing, jewelry or footwear, but also tell stories that invite you to enter, as pointed out by Alma Martínez, a teacher in Industrial Design the UNAM and specialist in window design, who also states that supported by a good assembly and the integration of other disciplines such as architecture, museography, urban geography, psychology, design and marketing, among others, make a showcase a means of communication between brand and target

In the same way, the service and customer service also turns out to be a factor that prolongs the time of each visit, thanks to personalized consultancies that make the consumer feel like a unique client.

Source: Informabtl.com

Currently, there is a retail price, and a retail of other things. Just look at the history and realize that the retail price never survived. While it is true, the price always worked and always works: the retailers of price, the hard discount (which always existed in all sectors), always gained market shares, led for decades their markets, but what was between them and his clients was a marriage of convenience. The price is always defeated by the price. There always comes someone who defeats you on your land if this is the price.

Analyzing the history of retail in most markets, it will be noted that all those who were leaders did so for more than the price: Hubson Buy in the nineteenth century, Piggly Wiggly in the 20s and 30s, Sears in the 40s, 50, 60, El Corte Inglés, Harrod’s, Macy’s, Isetan, Walmart in the 90s and 2000s, Alibaba, Amazon … And if you analyze the fall of many of them it was when they approached what they were not, when they flooded their corridors of discounts and it happened that the price became its maximum attribute, when they could not be competitive with other retailers whose DNA was the price.

It is enough to walk through the streets and see so much of the same, so much store that will flee from my memory as soon as I leave it. They change the color of the carpets, the light of the ceilings, the assortment, the things they sell … but in the end one has the feeling many times that it is in the same store, where everything revolves around the discount, the cheapest possible , to search and compare, to 2 x 1, among others.
That is why I try to find those retailers that seek more the experiential side, the natural destiny of thousands, millions, hundreds of millions of consumers who prioritize other things that is not the price. An example of this is the supermarket Carulla, of the Éxito group, which is a very interesting proposal from the conceptual point of view. Founded more than 113 years ago, one of the oldest, has more than 100 premium supermarkets in Colombia but its new Carulla Fresh format represents that retail that goes beyond the price, This new format has 26,000 national and international organic products rotating all around the “experience” such as: cava and wine schools, flower workshops, bread ovens, mozarella workshops, coffee experience.

For this reason, companies that succeed in retail will be those that, more than products, are capable of providing experiences.

Fuente: Mercadonegro.pe

One of the secrets in the world of marketing is knowing how to take advantage of the importance of colors to position a brand in the market and keep it in the long term.

The objective is that the consumer associates a certain sensation with a brand through color. By being consistent with a specific color, the brands show a continuity with the consumer in the market.

The German sociologist Arnd Zchiesche explains that brands are only value judgments about the product and that association can be achieved in a positive way through colors.
 
“A brand is always a social phenomenon with commercial repercussion. Also this does not work in reverse. When a social phenomenon is achieved […] it is a market asset that can not recreate or pay millions, “says Zchiesche told Deutsche Welle.

Example

Companies like Telekom used this strategic decision to completely change their appearance before the consumer. After millions of dollars marketing campaigns, the German telecommunications company assumed the color magenta replacing yellow and is now protected internationally.

“We have five people in the legal department responsible for protecting the color of the brand,” says a representative of Telekom.

The copious legal disputes between companies for the question of whether a brand can seize a specific color shows the relevance of this marketing strategy.

Source: Informarketing.pe

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

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