The four Ps of experiential marketing: Place

By Andy Youings. 11th September 2018
The four Ps of experiential marketing: Place

The four Ps of marketing – product, price, promotion and place – have been the core tenets of the marketing mix since they were first proposed by E. Jerome McCarthy in his 1960 book, Basic Marketing: A Managerial Approach.

Why have they stood the test of time? Because they’re fundamental. What you’re selling, how much for, where and how you promote it are the crucial things you have to get right to make your marketing strategy a success. Marketing evolves as any discipline does, so another three Ps have subsequently been added – packaging, people and positioning – but it’s the core four we’ll focus on here.

We’re interested in how those four foundational pillars align with the goals of experiential and in-store. For this first part of this four-part series, we’ll focus on place – how the right venue, position and execution can have a huge impact on success.

Experiential marketing

Marketers have to consider place. Adverts have to be on the right billboards or social media channels – if your target demographic views the world through Instagram, it’s no use putting time and money into Facebook, for instance. If you have a premium product, you don’t want it side by side with the discount retailers in Lidl.

Equally, the choice of venue for an experiential campaign has to be spot on. There are two things you need to understand in cast-iron detail.

The first is your target audience. Who are you trying to reach? The second is the options available. What are these venues like, what else is going on, and what will you be up against?

Will doing something experiential in the middle of a shopping centre get the right kind of exposure? What other shops are in that shopping centre? Are they right for the brand? Is there a ‘trendy’ bit of town that might be better?

Perhaps an event or festival might be a better bet? If you’re a food and drinks brand, look up food fests and county shows, which often draw in the same ‘foodie’ demographic. If you’re after the alternative healthcare crowd, branch out into music festivals.

It also pays to understand what else is nearby. If you’re launching a new bottled water at £2 per bottle, and one of your target venues is surrounded by stores running meal deals and offers with free water, it doesn’t matter how amazing your product or your experience are: people looking for water will likely go elsewhere.

In-store

For in-store, you need to ask yourself a similar brace of key questions. Firstly: are you in the right space for your consumers? Supermarkets, department stores and pop-ups have different dynamics and guide people to different actions. Secondly: are you in the right place in the space?

Answering the first one is a matter of brand alignment. If you’re pitching a bargain product with a lot of stylish potential, do you want to be in a supermarket that draws customers in purely on price?

Your target demographic will also have an impact here. If you’re trying to attract millennials, you have to recognise that millennials spend less time in shopping centres, department stores or hypermarkets. As Target have discovered, they prefer to shop at small, focused express-style stores that emphasise an understated, affordable offering with a little name credibility. This is why Gap and Macy’s are closing stores, but Old Navy continues to thrive; it’s also why pop-up shops are booming, turning over £2.3 billion in trade during 2017.

The second has a more complex answer. You want to be near the product, so people can walk away with it in hand ready to buy, but beyond that: where in the store should you set up? Near the entrance? At the end of aisles? Near the back? Where will get the most footfall?

To work that out requires research. Fortunately, we have access to a great deal of that. Retail psychologists and behavioural economists have many, many ways to track, map and model how consumers shop.

The classic talking point that consumers more often look to the right when first entering the shop is only the beginning. It’s also not strictly true: it’s the layout of the whole shop which guides the consumer’s eye. If consumers are moving clockwise around the shop, they look both ways when they come in, and keep looking toward the centre, remembering more products.

Consumers also move differently depending on how long they’re planning to be in store: there are fourteen routes around a typical supermarket that correspond to consumers taking short, medium or long shopping trips.

Other research indicates that the straight line ‘gridiron’ layout of supermarket aisles may not be as common-sense or straightforward as we think, and an experiential presence which introduces a curved detour might disrupt on a subtle yet powerful level. Think about IKEA’s walking tour, with routes through displays that feel more like an ornamental garden than a big shop.

However, the best way to find out where you should be in-store is to ask the store. The dead spots, and the liveliest spots, will vary depending on which branch you’re in, and the only way to know for sure where people stop and shop is to find out from the people who work there. This is yet another reason to get the store management on your side, as we’ve advised before – they know their own space better than anyone.

Place is a cornerstone of marketing for a reason. Your message has a target audience; you need to put it where they’re going to look (or listen, or taste…). Experiential marketing is no different. Be where your target demographic are going to be; don’t be where their attention isn’t. Know what you’re up against and learn as much about the space you’ll be in as you can.

To see how we’ve put the four Ps into practice for our clients, take a look at some case studies.

Segmentation and personalisation in experiential marketing: Can you be all things to all people?

Right now, companies can discover demographic data and buying habits, and pitch a product before customers even think about buying it.

Despite this, only 7% of organisations make personalisation their top priority. To compound the problem further, research by Infosys suggests 31% of consumers wish their shopping experience was more personalised, while Segment’s 2017 State of Personalisation Report claims only 22% of shoppers are satisfied with the personalisation they see.

Put those together and you discover that advertising, marketing and shopping aren’t personal enough. One more stat to prove the point: 53% of consumers are willing to share personal data in exchange for personalised shopping experiences.

The question for field marketers is, can an in-store event be personalised and, if so, to what extent?

Who’s doing personalisation well?

Let’s talk about Share A Coke first – a massively successful personalised marketing campaign that blends user-generated content, social media and experiences.

The campaign kicked off in Australia in 2012, followed by the UK the following year and the US in 2014. Experiential kiosks set up in public areas allowed visitors to customise a Coke mini can for themselves and send another to a friend via Twitter.

In 2015, personalised glass bottles became an option as e-commerce came into the campaign. In 2016, song lyrics found their way onto the cans – in 2017, surnames. The specific names, nicknames and group names on the cans and bottles change around, targeting new market segments every year. At its initial launch, 76,000 virtual cans were shared online, while baseline consumption of Coca-Cola went up by 7%.

Argos’ Kid In The Ad campaign drew attention, too: the retailer produced over 20,000 personalised Christmas ad slots in December 2017, putting individual customers – or rather, the people who mattered most to the customers – into the key shots at the centre of the ad’s narrative.

Argos secured the buy-in from parents by taking advantage of its customer insight: the firm knew the majority of its customers had children aged 5-15 and were willing to share photos on Facebook, so that’s where Argos asked them to join in.

After a custom Facebook chat experience, plus a short editing and screening process, the personalised ad was #ReadyForTakeOff – and even prompted the customers to share with a trackable hashtag. The ad was well received – Kantar Millwood Brown’s end of season survey, which tracks twelve proven purchase motivators, placed the campaign top for engagement, and Argos saw record sales growth across the last quarter of 2017.

Segmentation – key things for brands to think about

These campaigns work because the brands behind them know their target audience. Coke didn’t have to guess which 200 names to print on cans. They were targeting Millennials, i.e. people born in the 1980s and 1990s, so they could look up birth registrations and know which names would be most widespread in that demographic. Argos knew that their customer base had children and used Facebook – so that was the basis for their campaign and the platform they used to reach out.

The same basic principles work for an in-store or on-street experience. All you have to do is think about:

    • Audience. Who are you actually targeting? This is the key to everything – you need a consumer profile so you know who to entice to the stand, how they like to be spoken to, and what they’re likely to be buying on the day.
    • Goals. What is the next action the in-store activity wants these people to do? Buy something? Sign up for something? Share something? Pitch an action that your target segment is likely to take.
    • What is the experience? If it’s for Millennials, it’s probably worth leading with technology, and emphasising something real and authentic. If it’s for older consumers who are less impressed by tech, a VR headset is probably not where you want to go.
    • The aesthetics of the stand. You’ll have brand guidelines – look, style, tone of voice and so on – so apply them, and customise them if you can. If there’s a specific change you’ve made to your brand’s look for a particular product, have that follow through to the stand. Make sure there’s something there which invites people over and promises something unique.
    • Staffing. The people running the event are as important as the event itself. If you’re aiming at retirees, perhaps older people manning the stand would be preferable to on-trend Gen-Zedders?

 

 

Segmentation or personalisation in field marketing?

You can’t be all things to all people. Your field marketing should be highly targeted based on the demographic you’re interested in. But targeting is very different to a personalised experience.

So how can you make something ‘in the moment’ personalised to the people who might be there? One way, potentially, is technology. Could you offer people a QR code via email or app that they can bring with them to an in-store event? That code could trigger something individual and special in-store – melding the physical and digital in delightful ways.

It depends on your brand, of course. Involving customers in something more than simply trying before they buy – allowing them to create with you, and take something away with them – can be highly effective. In 2017, for instance, Lush Cosmetics launched Creative Showcases – a series of in-store events which invited fans of the brand to come and get their hands dirty, not just smelling their products, but making them too.

Not only was this highly shareable on social media, it helped connect the individual with the brand in an exciting way. It wasn’t personalisation in its truest form, but it was an individual experience in which the customer was the star. It was so successful that they approved a series of events in 2018, too.

Another nice example of this is Extract Coffee (Bristol) who offer home barista courses where you get hands-on, brewing your own coffee and really experiencing the brand.

So events can be personalised in a number of creative ways. But it’s perhaps the after events where personalisation can come into its own. If you capture the right data from your customer conversations on the day of your field marketing activities, you can personalise and segment your follow up marketing.

You can go beyond the “use their first name” and actually talk about something they said, something they shared, something they told you, proving that your brand pays attention.

Experiential marketing benefits from segmentation – in fact, every form of marketing does – and offers unique, one to one opportunities to collect the data that makes for top-end customer profiles. It might help question (or back up) some of your existing consumer preconceptions, showing you how you can take the rest of your marketing to the next level

Segmentation for in-store and on-street marketing is the result of customer research into the type of consumer you’re looking for. So naturally, your choice of venue, staff and… well, everything… comes down to your target. You just need to know them, and put that knowhow to good use.

Personalisation requires more thought and more innovation to make it truly original to the individual. It’s possible, and as Coke, Lush and Argos showed, the results can be spectacular.

To see how we’ve helped brands up their marketing game, take a look through our case studies.

Image credit: http://www.quoteswave.com/picture-quotes/317127

Experiential marketing: Breaking the habits of a lifetime

We’re all creatures of habit.

We frequent fewer than 25 places in our day to day lives, and form close relationships with five people. We walk around the supermarket and put exactly the same things in our trolleys, week in week out. We stick with the same brands, because – well, better the devil you know.

The challenge for brands is in breaking those habits.

They’re up against a fundamental principle of human psychology: risk aversion. Change means a loss of control over our circumstances, a loss of face as the things we’re used to become less than desirable, and a concern that the new way of doing things won’t work. Understand that and you understand why most of us prefer a sure outcome, avoiding the grey area where things might or might not be OK.

There’s another factor coming in the opposite direction. Habits are efficient: we form them because they’re more efficient than processing situations and making decisions as though it’s our first time every time. The cognitive loop between cue, routine and reward becomes encoded in our procedural memory, and we keep doing the thing that worked the first few times we did it.

For many brands – particularly new ones, but also incumbents with similarly-sized rivals – these are the deep seated psychological routines that you’re fighting against when you’re trying to get consumers to try a new product.

Why would they change? Why would they want your product over the one they always get?

How brands break the habit

A change in habitual buying patterns can be extraordinarily powerful. The same study which identified the 25 place limit also revealed that people can change. It’s the number of places that stays constant – if people start to frequent a new place, they usually stop going to another, and the overall number of regular haunts stays the same. In other words, if you can persuade people to buy a new product a few times, it can become part of their routine.

The Sainsbury’s “Try something new today” campaign was aiming for £2.5 billion in revenue growth – and achieved it when they worked out that this target boiled down to a trifling £1.14 per customer. Encouraging every customer to pick up one thing they wouldn’t normally consider made the difference, permeating Sainsbury’s marketing messaging and increasing profits by 43%.

It worked because Sainsbury’s understood how people shop: they do it on autopilot, paying so little attention to their surroundings that a literal man in a gorilla suit can pass them by. The supermarket looked into why routine ruled the day in food shopping, and found that 74% of their customers cooked the same things every week, lacking practical inspiration for midweek meals.

Sainsbury’s offered simple ideas for upgraded recipes – adding an ingredient to the sort of meals people throw together on a rainy Tuesday night – in a convenient form, with idea cards at the store entrance and point of sale displays reinforcing the suggestions. They made the change small and simple and easy to execute, showing that there was another way to do things – even if it’s just adding apples to sausages.

It’s these small touches that disrupt habitual thinking, presenting a small change that makes people re-appraise their automatic decisions and think, “is this really the most efficient thing to do?” Pack design – something that’s visually distinctive and makes a disruptive claim – can do the trick, as can apparent innovation, but there’s still an awful lot of noise on the shelves, and the boldest of signals will often struggle to cut through.

The experiential answer

A great experiential campaign can cut through all of this. Real change can come through the personal experience of the consumer, disrupting their routine more directly and offering more incentives to try something different.

Yes, the potential purchaser has to like the product, but a great experiential campaign can create the right environment for enjoyment. Activating all five senses goes further than reaching out to one. Smell and taste in particular are powerful disruptors of the day to day shopping experience, and become the basis for significant memories, experiences around which a future habit can be formed. If the experience can posit a single, repeatable action that ties to a predictable, repeatable cue, the habit formation process can begin within days.

The key to changing habits, according to behavioural analysts at the Interaction Design Foundation, is to identify the cue and reward that reinforce the behaviour, and substitute them with something else. An enjoyable, active, easily repeatable experience can become a new reward – the challenge for experiential marketers, really, is to put their product into the context of the customer’s life, attaching that reward to a new cue.

There are few marketing options that can break and remake customer habits in one go, but experiential marketing comes close. At the very least, it can disrupt the routine into which shoppers fall and take them off purchase autopilot, putting them in a position where they have to make and evaluate a choice – and that’s the stuff of which a future buying habit is made.

Image credit: (CC) Tnarik Innael, via Flickr: https://www.flickr.com/photos/tnarik/2238942024

Iceland is cool: Is your in-store marketing?

By Joanne Walker. 23rd August 2018
Iceland is cool: Is your in-store marketing?

Iceland is cool. Really, really cool.

As trends among British 18-30s shift away from hard partying and toward mini-breaks, new experiences and Instagram opportunities, Iceland’s become a more popular tourist destination than the Bahamas, Brazil and China. US travellers have been drawn in droves, too – Iceland is more affordable than ever, and has unprecedented media exposure after everything from Game of Thrones and Rogue One to Black Mirror and Noah filmed scenes there. Millennial travellers are drawn to Rejkjavík’s live music scene – dozens of bands following in the wake of Sigur Rós and Of Monsters and Men – and to its unique, no-chains café culture.

Basically, it’s hipster heaven – and it’s drawing over two million visitors a year, transforming the Icelandic economy. Challenger brands from outside the country have recognised the boom, and are bringing a honed, powerful in-store marketing experience that’s aligned with the emerging consumer demands. It’s not just that they understand what the tourists want – they’re offering an experience that’s new to Icelandic consumers, and shaking up the retail scene as a whole.

The new retail experience – and why Millennials want it

Iceland’s retail environment has been shaped by high prices and limited choice, so big-name brands from Europe and the US already have economy and novelty on their side. Beyond this, however, they’re offering something else – a different kind of shopping. They understand that lower incomes and e-commerce options have turned the high street from a ‘buying things’ place into a ‘finding things to buy’ place, centred on discovering and experiencing products.

Despite the hue and cry about how they’re killing this industry or that, Millennials do actually love shopping. 41% of them ‘showroom’ – they check out a product on the high street, but shop for it online to find the lowest price. They touch, smell and handle merchandise because they don’t like buying sight unseen, and cross-reference that experience with online offers and reviews. If they feel courted by a brand, particularly a brand that treats them like a valued customer and leans in to this “try in-store, buy online” shopping system by offering a personalised discount, 95% of them will become loyal customers.

Millennials

Millennials also go for different kinds of shops. Pop-ups, which provide distinctive products for a short period, often outperform traditional department stores. They’re more curated and personal, better equipped to provide the courtship experience. Learning zones – environments where the consumer can try out the product, like taking sporting goods for a spin in a fitness studio – also do well. The Boxpark concept – shipping containers that convert into revolving or semi-permanent retail spaces, coworking studios and entertainment venues – offers a blended experience, equal parts work, entertainment and shopping.

Millennial consumers live in a bigger world than before – they’re more connected, they’re always online, but they ‘ache for a sense of unique contribution’. They’re self-advocating, strong-minded, and they don’t believe what they hear from the top. They have to be shown why a product is special, not just told – and that’s why in-store marketing works so well for them.

What Icelandic brands bring to the storefront

The challenger brands who have entered Icelandic retail are used to this experience-driven approach to retail. As a result, they’re beginning to edge out local brands, who aren’t used to foreign competition and, according to McKinsey’s study of the Icelandic economy, have developed in an insular, localised, demand-driven market.

It’s also a small market, and the McKinsey study explicitly references “substantial constraints on how much companies can grow without gaining a dominant market position”. In other words: never mind room at the top, there’s not masses of space for brands underneath it.

What these new brands don’t have, however, is as deep a knowledge of Icelandic culture and retail as the incumbents. Icelanders call each other by their first names, put a specific sauce on almost everything, and are compulsive spenders, working harder and shelling out more than most Europeans.

Culture can easily get lost in translation, particularly with a language that prefers to coin its own words over adopting them from outside and a ruling body concerned about ‘digital extinction’ of its vocabulary traditions.

For instance, signs for Icelanders have to be written in Icelandic – when H&M announced its grand opening in English, it was actually breaking the law. Tech support for Icelandic is poor – Google eventually adopted Icelandic speech recognition, but Apple and Alexa don’t support the language at all, and social media platforms generally implement it poorly. Brands in Iceland are walking a tightrope – they have to be understood by an Icelandic Millennial audience that sees American English as cool, practical, international and reliable, without eroding the sense of attractiveness, relaxation and authenticity that’s attached to the Icelandic language.

In the face to face world of in-store marketing, those values matter. Native brands who can align their Icelandic virtues with the hands-on, “try here buy online” retail experience preferred by Millennial audiences can create something above and beyond what the challengers can offer.

To see how we’ve helped brands build face-to-face in-store experiences in the UK, check out our case studies.

The experiential marketing ecosystem: Before, during and after the event

Experiential marketing and instore campaigns have one big problem.

It’s easy to mistake the visible part of the campaign – the demo, the stand, the samples – for the entirety of the campaign. The savvy brand manager’s goal isn’t just to bump up sales in-store and get some social media responses going on one day.

Experiential marketing extends far further than the event itself, and getting the most out of experiences means putting in the work before, during and after the day.

Experiential marketing: Before

Lead times are absolutely crucial. The more time you give your agency, the better the experience will be. Three months is ideal. Longer lead times mean you can build up previews on social, get traditional advertising out in good time, secure the best people for the job and get them briefed. Briefed on what? Well:

  • What else the brand is doing – The more we know, the more we can build in compatibility and coherence with the rest of your marketing.
  • Broader brand values – This knowledge helps us match people with the right skills to your campaign, delivering the brand training, ensuring they’re walking, talking ambassadors for your brand’s values.
  • Competitor insight – The more we know about what your competitors are up to, the more attention we can secure for you: the goal is to get your event’s signal out there, competing with as little noise as possible.
  • What else is going on in the stores – We need to be aware of the bigger picture, so we can build what we’re doing to complement what else is going on. Why do a product demo in store the week after the product is on offer? (Yes, this has happened to us, and funnily enough, the demo didn’t do well – everyone who would have bought had done so days ago.)

Upfront work is necessary for a quality campaign. The longer you have to create a buzz, the busier you’ll be on the day, and the more notice you can give third parties, the better the execution and creative thought will be. Tight deadlines aren’t the end of the world, but it pays to have thinking and breathing space. Both are essential to great brand experiences.

Experiential marketing: During

This is the visible part – the bit people are good at thinking about. What things look like and whether they’re on brand is the bread and butter of experiential marketing. Most businesses have the basics down pat. But it’s worth mentioning that during the live campaign, brands should:

  • Share on social – Social media posts have a massive impact: they can increase the reach of an in-store experience a thousand times over, and since the day is already about your brand engaging with customers, there’s no reason not to double down.
  • Take photos – Something about a thousand words springs to mind? And to be honest, the unscripted surprises when someone really enjoys your product are light years beyond any posed, carefully curated image.
  • Run competitions – A demo or sample is one thing, but gamifying it brings out the instinct to… well… compete. And win. And be chuffed that you had the opportunity. Competitions and games build loyalty in the simplest way around – they give participants something to be proud of.
  • Gather data for marketing (Within the limitations of GDPR, obviously) – Experiential marketing events are a touchpoint between you and your customers, a chance to learn what they like and why, and because you’re interacting directly, you can ask the follow-up questions that give you qualitative data. It’s one thing to run the numbers on a customer persona – quite another to find out exactly why those numbers look the way they do.

While we’re talking about the events themselves, there’s one thing we have to point out. In-store marketing is out of the routine for some retailers. Look at the difference between Costco, where demos are routine and shoppers make a beeline for them, and the likes of Tesco or Asda, where the demo is often a disturbance to routine, and shoppers often consciously, deliberately avoid them.

That means, on the day, you and your retailers need to advocate for the experience you’re putting on – you need to overcome that sense of disruption, awkwardness, reticence and reluctance, and convince people it’s worth going out of their way for your event.

Experiential marketing: After

There’s a reason we made one of our ten principles for experiential marketing the right way  “aftercare is not an afterthought”. It’s the bit everyone is prone to forgetting. Data is a big opportunity and so many brands miss it entirely. Experiential marketing goes so much further than that. We’re working to influence and change long-held customer behaviours: it won’t be done and dusted in a day!

When it comes to post analysis, take the long view. Where were sales before the event? Where were they during it, and immediately after it, but above all, where do sales settle? That 400% uplift on the day is only the start of the story – where’s the long term change?

Other things to think about after the event include:

  • Follow up campaigns – Make the most of those photos, those experiences, that data – get an idea of who’s into your brand and market to them. Put everything together.
  • Newsletters – Every marketing experience will give you something to share with your customers, some success story – and it’s a bond-building “I was there!” moment for anyone who signed up on the day.
  • Prize draws – Remember what we said about competitions and gamification? Same thing. People love to win, even more so if they didn’t have to risk anything, or even do very much. A prize draw is a great value offer to make in return for people’s data – the names and numbers that will inform your later campaigns.
  • More social – Collect those shareable moments, make those responses, talk to people. Extend the touchpoint out after the event, and keep your eyes out for reviews and responses. They’ll tell you what you did right and wrong, and they’ll give you an opportunity to build relationships down the line.

Lanson Lanyards

To show how it all comes together, look at how Lanson Champagne have worked with us on a recent campaign. Beforehand, they used their retailer’s customer magazine to build awareness for in-store activity, and carry out data capture for future marketing. They distributed a physical invitation to their in-store activity to drive footfall: an invitation which detailed a competition to win a magnum of champagne, and included the Wimbledon schedule, building on the brand’s link with the tennis championship. The invitation also included a branded lanyard, designed to act as a brand ‘reminder’ long after the event. It’s hard to quantify how long this lasted – but we certainly saw evidence weeks later of Costco members shopping with their car keys on the Lanson lanyard.

As you can see, there’s a lot more to field and experiential marketing than just turning up on the day with some goods to share. Give your agency the time to find the right people, brief them on your brand, and join up with your other marketing efforts. Advocate for your experience on the day, bring people out of their routine and into your world. And afterwards,  gather data, sign people up, and share the stories.

You’re creating experiences for people: make the most of them.

To see how we’ve helped brands take the long view – planning before, during and after the experiential event itself – take a look at our work to date.