Posted on : 2023-09-29 03:50:11
Article : Good evening Friday management TASK 261-While digital marketing and brand marketing are important, in-store marketing is crucial when it comes to sales and market share.
In-store marketing is the ultimate customer magnet for brick and mortar stores. While it might seem like eCommerce platforms are always a step ahead, brick and mortar stores can offer amazing experiences to their customers right at the point of sale. This is the main benefit of in-store marketing tactics: they take place when the customer is engaged and ready to shop, unlike digital marketing tactics that might be too disruptive. Most people have started to raise their expectations when it comes to shopping. They don’t want to just go out, purchase an item, or fill their shopping carts, and then come back home.
In-store marketing is a type of marketing that takes place in brick and mortar shops. It helps promote products and offer a great customer experience to the shoppers. This type of marketing focuses on engaging with customers to provide a personalized experience during the shopping session. Unlike eCommerce platforms, brick and mortar shops provide the possibility to engage with customers in real-time which is the key to getting shoppers’ attention. Once you have the attention of your customers, the chances of them purchasing your products increase. Nowadays, businesses focus more on digital marketing to attract people. However, once customers step foot inside a shop, their attention is not captured.
While digital marketing and brand marketing are important, in-store marketing is crucial when it comes to sales and market share. Most well-known consumer goods brands from all over the world have great in-store marketing strategies, but they lack the tools to promote their brands. in-store advertising solutions are old-school and lack creativity. That is why in-store marketing campaigns are not as impactful or as cool as digital marketing campaigns. Consumer goods brands and retailers alike need to focus on providing the best for their customers with all the different types of marketing and advertising messages bombarding customers. If you have a lower market share compared to your main competitors, then you are making less money, people don’t remember your brand or they just don’t engage with it.
Let’s take a real example: The global potato chips market reached a value of US$ 30 Billion in 2019 and Frito-Lay’s (owned by PepsiCo) led the category by a wide margin, with over 60 percent share of the segment. Pringles, which is owned by Kellogg's, has only an 8.4% market share. How can Pringles increase its market share?
There are 3 ways in which it can increase it’s market share:
1. Take market share from competitors
2. Convince inactive prospects in the market to purchase your product
3. Acquire a competitor
In-store marketing can help marketer take market share from competitors. Promoting their product in-store will help undecided customers to buy their product instead of the one offered by their competition. Also, convincing customers to switch from their competitor’s product to the referred brand marketer helps to increase their market share.
When it comes to inactive prospects, Pringles will need to convince retailers that are not selling its products to make the purchase. For instance, you will see that Lay’s and Frito chips are available in most grocery shops, while Pringles are offered mostly by bigger retailers. The way the product is marketed and distributed might also have an impact on this.
Finally, acquiring a competitor is costlier strategy that will help you increase your market share. For instance, in this case, Pringles could acquire Utz Chips, another competitor with less market share. Of course, this is the last resort for brands because it takes a while and it is mostly a business-led decision instead of a pure marketing decision. Extending this scope of this article we shall discuss few brand examples of Digital and In-store marketing in our Good Morning Management Solution part, that will be posted on 2nd Oct 2023.
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