the checkout 6.10 - back-to-school shopping

the

inside the in-store experience

powered by The Integer Group® and M/A/R/C® Research

IN THIS ISSUE

ISSUE 6.10 | BACK-TO-SCHOOL

• Just 14 percent of those shopping for Back-to-School items rate a “fun experience” as the most important factor of the trip

• Grocery retailers receive an A+ from shoppers on “saves me time shopping”

• Only 23 percent of students (grades 1—8) are involved in the Back-to-School shopping process

This issue of The Checkout looks at the Back-to-School shopping occasion and examines key trip and purchase influences. Though the majority of shoppers remain value-driven, there is an increasing amount of importance placed on the overall shopping experience in the store. Is there an opportunity for retailers and brands to make Back-to-School shopping more fun for both parents and students? What does the future of Back-to-School shopping look like for early birds versus last-minute shoppers?

How Shoppers Grade Retailers on the Back-to-School Shopping Experience


Can Fun Increase Channel Frequency? What drives a shopper’s decision regarding where they will conduct the majority of their Back-to-School shopping? Looking at the three channels that rise to the top where the majority of school-related products are purchased (Office Supply, Mass/Discount, and Grocery), it’s no surprise that there are three distinct drivers behind those predictions. Thirty percent of shoppers gave Grocery an A+ on “saves me time shopping;” 34 percent gave Mass/Discount stores an A+ in “gives me the lowest prices;” and Office Supply wins in “makes Back-to-School shopping the most fun,” with 14 percent of shoppers giving the channel an A+ in this area. While many retailers and brands spend time focusing on the more practical aspects of the value equation (time, price, and quality), is there opportunity to focus on experience as a point of differentia-tion?

What is it about the Office Supply channel that allows retailers to win in the “fun arena”? Is it the products—markers and fun-colored pads? Or has this channel created a unique in-store shopping experience that is entertaining for shoppers? Whatever the reason, Office Supply retailers seem to have figured out a way to differentiate themselves via a unique value proposition.

Report Cards Show GPA Across Channels

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Issue 6.10

Advantage for Early-Bird Shoppers?

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Preparedness vs. Last-Minute Shopping. Who Wins? While shoppers may start planning early for Back-to-School shopping, with more than 48 percent of shoppers planning a month or more before the start of the school year (see column A in Graphic 3), when it comes time for those same shoppers to do the actual shopping, the vast majority, 70 percent, do their shopping less than three weeks before school starts (see column B Graphic 3). And whether it’s due to Mom’s busy schedule or the rough transition from summer vacation to the Back-to-School mindset, there are many last-minute shopping instances. One in three people shop a week before school, or even after school starts. So while we see retailers gearing up for Back-to-School directly following the 4th of July holiday, we must better understand which shoppers are ready for trips that early—and create stronger reasons for them to buy sooner.

Enticing shoppers requires learning whatmotivates them when they’re Back-to-School shopping. This year, by no surprise, “lowest price” is the overwhelming driver, with 76 percent of shoppers placing importance on value. However, secondary drivers paint an interesting picture of the differentiating shopping experiences retailers and brands can offer. Fifty-five percent of shoppers also placed importance on “finding quality products” and “spending least time shopping.” While price is clearly important, more than half of shoppers won’t sacrifice a certain amount of convenience and providing their children with quality products. How can brands and retailers use this knowledge to adjust the value proposition they offer during these higher-stress times of year?


Little Student Participation During Back-to-School Shopping.

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Many Students Are Not Along for the Ride. Given the nature of the time period, the focus of messaging typically hinges on the student. But only a small percentage of students are likely to be involved in Back-to-School shopping this year. For brands and retailers, this may mean reevaluating who they are talking to in the store. If only parents or other adult family members are involved in the shopping process, perhaps messaging should focus more on different aspects of value versus leveraging tactics that are more intended to entice students (e.g. a sweepstakes hinging on winning the latest game console).

Recession Recess? Despite the ongoing reports of the economic downturn, signs may point to recession relief in August 2010. Thirty-eight percent of shoppers expect to purchase fewerinexpensive items this year, which is a significant decrease from the 54 percent who reported this last year. Not only are theyexpecting to purchase fewer inexpensive items, but also there is an increase, from 2 percent to 14 percent in those who expect to buy more items, and more expensive items.


In-Store and Direct Marketing to Save Money.

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Shoppers Look to Direct Communication for Back-to-School Preparation.When it comes to information sources for Back-to-School shopping, directive and tangible communications are the most effective. Knowing that these are the primary tools driving purchase means that shoppers are looking for more local and relevant forms of communication (e.g., school lists). And the more direct and relevant the form, the more influential it is. Given this, retailers and brands may need to focus less on mass-marketing efforts and more on personalized messaging and promotions.

What This All MeansBack-to-School is the second largest shopping season of the year, and often considered an indicator for Holiday spending. So, during this key period, the need to differentiate and provide shoppers with a relevant value proposition is critical to not missing opportunities at the register. Awash in a sea of seemingly similar retail value plays, shopper disruption in-store hinges on more than just lowering prices for the “best deals of the season.” Retailer and brand strategies must deliver not only on price, quality and convenience, but wrap those up into a brand-distinguishing proposition. Part of this strategy is to understand the audience: shopper or consumer, Mom or child? Back-to-School may appear student-focused, but knowing that many students aren’t along for the shopping trip, Mom becomes the decision-maker behind the steering wheel and behind the shopping cart. So just how much influence do children have on what goes on the Back-to-School list? Is there a beneficial balance to be found in cater-ing to the needs of both Mom and student? Or should the retailer focus on providing Mom with a relevant value proposition that becomes a future driver for return visits in the store?

powered by The Integer Group® and M/A/R/C® ResearchIssue 6.10

The Integer Group® is one of America’s largest promotional and retail marketing agencies and a key member of the TBWA\Marketing Services portfolio. The Integer Group resides At the Intersection of Branding and Selling® and creates strategic marketing solutions for clients in categories that include beverage, packaged goods, telecommunica-tions, fast food, home and shelter, and power sports. Join Integer® in a conversation on shopping culture and brand strategy:

The Integer GroupCraig ElstonSr. VP, Insight & [email protected] West Alaska DriveLakewood, CO 80226tel +1.303.393.3474

M/A/R/C® Research is a brand develop-ment firm dedicated to helping clients create, evaluate, and strengthen their brands. Our teams design and execute qualitative and quantitative, traditional, and online solutions while adhering to a client-service ethic built on being easy to work with and delivering what is promised. Our core competency is measuring attitudes and behaviors to accu-rately explain and predict market share,revenue, and bottom-line impact of a client’s actions. We help our clients address con-sumer, channel, and B2B marketing issues to launch better products and services attract and retain valuable customers, and build stronger brands. Our proven, marketing-is-sue-focused solutions support clients’ brand-building efforts.

M/A/R/C ResearchRandy WahlEVP, Advanced [email protected] North Westridge CircleIrving, TX 75038

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The Checkout is based on a nationally representative survey of 1,200 U.S. adults conducted monthly by M/A/R/C Research. Please contact us to learn more about the data we collect or additional analysis.

©2010 by The Integer Group® and M/A/R/C® Research. All rights reserved.The data contained in this report may be reproduced in any form as long as the data is cited from The Integer Group and M/A/R/C Research. www.ShopperCulture.com.

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