POPAI 2014 Retail Marketing Conference - A Review

The POPAI 2014 Retail Marketing Conference was held on a very wet Thursday in February at the beautiful 30 Euston Square, with speakers from Barbour, Fitch, Google, Mars, Ordnance Survey and POPAI on behalf of Tesco. Not even the tube strikes could dampen what was set to be a informative and engaging event. The atmosphere was that of meeting old friends, rather than the formal and traditional conference feel and topics covered included new technology, consumer behaviour trends and research findings.

First to the stage was POPAI to discuss 'Industry Health'. They inspired the crowd by talking of steady growth in an industry estimated to be worth £1.4 billion, in comparison to media spend, with TV only growing 3.7% and Press, Cinema and Direct Mail all decreasing in 2013. Retail Marketing appears to be enjoying a positive future. However, all isn't rosy on the high street with 3400 shops closing between January and June 2013 and only 3200 opening, leaving a deficit of 200. If this rate continues, then the high street will inevitably disappear. But is it all doom and gloom for retailers? Well no says POPAI; the store mix is changing and understanding this change is key to future success. The growing market share of online retail is undeniable and if stores offer a blend of interactive brand engagement, in-store theatre and E-commerce then they are much more likely to lead the way to retail growth.

Anthony Prior - Head of Research for POPAI UK and IRE explained the results of the recent Tesco Price Promise Study. The study was conducted in the Craigavon Tesco Extra store, using Clip Cam, Store Audits, Recall Tests, Interviews and Digitrack data analysis. The study aimed to understand which POP mechanics had the most impact on customers and provided the most effective use of the budget. Key findings were that FSDU's with offer messages had a much higher impact than those with brand messaging. Car park banners, FSDUs, escalator banners and window stickers had the highest impact rate due to the customer having no other attention distractions and a slower pace of movement in this area of the store.

Onika Simon - Senior Strategic Planner at Fitch talked about the importance of Gen Z. She described under 25's as the 'Mainstream of the Future'. Discussing the change in perspective for a generation growing up post credit crunch, Onika talked of a cautious generation, with access to more offers and shopping knowledge than ever before. Key points to note were the influence of peers that is amplified through social media on purchase decision. As we have talked about before, storytelling marketing is key for brand engagement for this consumer group, as they like to 'beta' test new products and follow the path of innovation and product improvement. This consumer group aspirationally shops using Facebook sharing and Pinterest before considering purchase, gauging peer reaction to see if the purchase is desirable. This generation has a constantly fragmented attention span and needs honest two-way dialogue to cut through the communication clutter, but if a brand cracks this, the rewards are huge due to the broadcasting lifestyle where anyone has the potential for online/media celebrity.

The conference featured two panel debates: Shopper Technology and Working with Suppliers. Questions from the audience were posed to the panels representing Banner Managed Communication, Haygarth, Life Group, L'oreal, Mars and the ex Head of Channel Marketing for Samsung. The conclusion was that digital technology and augmented reality is of growing importance to the retail experience, but consistency in staff knowledge and utilisation is key to customer engagement. A clear strategy with specific desired results is vital to the success of new technology. It was also suggested that with stores offering free WIFI, a loyalty based app model is important to enhance the shopper experience. New technology offers great advances in research and could offer tailored offers in real time to shoppers. In the context of supplier relationships, innovation is king, but a strong understanding of the client brand and challenge is of equal importance. The panel stated that they judged on timeliness, quality, creativity and honest two-way dialogue when evaluating suppliers.

Mars, Barbour and Ordnance Survey all spoke of their brand challenges and the creative approach to solution. Andy Page - In-Store Marketing Controller for Mars used M&M world as an example of an engaging and thriving retail space in a post-recession high street. Stating that interaction with the brand and product is most successful when coupled with in-store theatre. Barbour talked of changing product range to grow into younger markets, but upholding the traditional values of reliability and quality. Good retail design must be flexible, consistent, scale-able, interesting, cost-effective, brand rich, distinctive and acceptable to the audience for Barbour. Stuart Howarth - Global Marketing Manager also spoke of seasonal storytelling as a key marketing strategy for Barbour. Gareth Miller - Head of Marketing Communications discussed Ordnance Survey's new digital offering, designed to open up the product to new markets and develop the traditional brand image into the tools for 'Challenges' brand identity.

Finally David Liversidge - Head of Multi-Channel Attribution at Google teased us with the analytics of the future. We all know that 1:2 people start the buying process online, with smart phones acting as the first screen in a notable number of purchases. But did you know that 65% move screens whilst shopping online? This 'multi-screening' behaviour is not picked up by traditional analytics, and therefore does not trace the marketing collateral involved in the conversion accurately. Well Google have a solution, soon you will be able to track whole conversion across devises which includes PC, tablet, smart-phones, games consoles, and smart TV for logged in Google users. The data is strictly anonymous, a fact that David really stressed, but the analytics will link the various stages of conversion across all devices. This is great news for us a marketers, as this could shape our understanding of changing consumer behaviour and media consumption, whilst ensuring that marketing collateral is strategic and provided strong ROI.

Top tips from POPAI 2014 Retail Marketing Conference are:

1. Really understand the changing needs and behaviour of your customers to provide the service and products that meet their changing attitude to retail.
2. For suppliers, it has never been so important to understand the client, their brand and processes and most importantly their customers. 
3. Location was found to be more important than the mix of POS/display mechanics. Consistency of message was also key to message recall. 
4. Gen Z expect innovation and product development that uses their feedback. They expect involvement in the testing process through two-way dialogue.
5. Staff must fully understand new technology and its correct utilisation in order to provide consistent brand experience. Customers won't engage without trust in the brand offering. 

To summarise, the event was well organised and smooth in transition between speakers. Providing a range of topics that spanned the diverse interests of the attendees. The opportunity for networking was excellent and the ability to provide attendees with such a relaxed atmosphere is very rare.

Maria Parker-Harris

Group marketing Co-ordinator

The SPS Group 

www.thespsgroup.co.uk

#augmentedreality #communication #POPAI #thespsgroup #retailmarketing #consumerbehaviour #contentmarketing #digitalmarketing #experientialmarketing #Google #FSDU #POS #marketing #retailmarketing #socialmedia #ROI