Today’s Chinese consumer is different than the one of just two or three years ago. Increasingly sophisticated, connected and with upgraded preferences, today’s consumer is willing to pay a higher price for certain goods if the value proposition is right. Gaining competitive advantage in China, whether in traditional brick and mortar stores or in the emerging online retail landscape, takes more than just good strategy—it takes indepth knowledge of the consumer.
Identify what they want
Sometimes less means more to lose. By optimizing your product portfolio to provide the greatest incremental volume, you can maximize sales value to align with what consumers actually want. Tactical listing and delisting decisions based on facts requires identifying the risks and opportunities of listing/delisting and evaluating the assortment health of categories in the aisle.
A study of 38 categories in the east region of China revealed that the smaller the store, the bigger the gain. Only 58 percent of the categories reviewed actually reach the smaller channels. With a bigger gap to fill, there is a bigger opportunity to offer an assortment structure that is aligned with shopper needs. Determining the product characteristics that drive demand across channels in the right number of stores will provide the most optimal assortment strategy.
Build a better linkage between online and offline
Current online shopping in China is dominated by a few key stores, but is that the right strategy? At least for fast-moving consumer goods (FMCG), it might not be, since those channels are owned by non-FMCG categories and the presence of FMCG categories is low. Also, there is a limited opportunity for FMCG exposure within those stores since online shopping occasions are more planned, focused and direct in terms of their shopping behavior, compared with offline shopping.
A potential solution is to build an online space owned by FMCG categories. Hypermarket online stores offer the best opportunity for expansion as online shopping and hypermarket shopping share commonality in terms of shopping occasion and shopping needs. As such, by building a better linkage between online and offline shopping and utilizing existing resources, FMCG categories might be able to create a dedicated online space to further take advantage of growing online shopping trend.
Make your TV money work harder
Knowing how much to spend on advertising, where to allocate spending and how to optimize on a real-time basis to maximize return on investment (ROI) are some of the most challenging issues facing marketers today when it comes to TV optimization.
TV ad performance is more than just good creative. Other factors such as programming, media weight, placement, cross-platform exposure and competitive activity also have significant impact on advertising breakthrough and branding performance.
The new news is that brands can now optimize their TV advertising and media plans in flight, to achieve more than 10–20 percent gains in effectiveness. By measuring breakthrough and branding on a daily basis, brand advertisers can optimize performance by:
- Optimizing creative rotation to focus on strongest spots.
- Editing spots to improve branding and messaging.
- Moving spend from 30 second spots to high-performing 15 second spots.
- Shifting spending out of lower performing genres and into higher ones.
- Determining when ads are worn out and need replacement.
- Learning from and applying insights from competitive advertising.
Real-time ad effectiveness measurement is now a reality. Smart marketers are leveraging this capability to optimize their creative and media allocation decisions in-flight to greatly improve advertising performance.
Diagnose effective/ineffective ads
Using the power of science, you can capture consumer’s unarticulated deep subconscious response to ads, logos, package, brand attributes, in-store displays and merchandising layouts, therefore you can impact sales dramatically.
Nielsen NeuroFocus has done thousands of ad testing and gathers the core Neurometrics of Attention, Emotion, and Memory for every second of the consumer’s experience with the ad. This level of detail allows you to diagnose effective/ineffective segments and to uncover areas for improvement, second-by-second. A study carried out by a third party using approximately 50 television ads in 14 campaigns found that Nielsen NeuroFocus effectiveness is highly correlated with sales, significantly higher than traditional research methods.