Have we all become shrewd consumers? What with the breathtaking speed in which the recession has hit and the loss of faith in the banking system (and politicians) haven't we all been forced into being shrewd consumers - whether we wanted to be or not?  Every promotion, advert, coupon, special offer and competition is scrutinised for the 'what's the catch' motive. We don't believe what we read anymore therefore making these marketing initiatives fail.

It's no surprise to learn that your average shopper has learnt to become a shrewd consumer and, in terms of the supermarket environment, are fully aware of the techniques used to persuade them to buy more.  In fact, they know that everyday items like milk and bread are placed towards the rear of the supermarket in an attempt to force them to trudge around and be exposed to other well-placed products that they did not intend to buy. This knowledge makes the shopper determined not to be coerced into buying products they do not need or want. Bad news for marketers and manufacturers hoping that the humble shopper will part with some cash on their products. So, with all this store layout and psychology knowledge flying about, courtesy of the internet and TV, how do supermarkets and manufacturers catch the eye of the clued up, socially aware, cost conscious consumer?

Interesting question.

A good place to start is with the traditional decision making model.

It follows a logical enough process but these days it seems out of date and open to criticism.  Such as how does the model explain impulse purchases? Does the consumer go through all the steps and in that particular order?

Focus groups tell us that they make their decisions based on the above model of rational thinking, price, selection and convenience.  But what they don't mention is that factors such as emotion and memory are also at work and are clearly very important.

 We look at more then we can see.

 There are various senses that impact the mind. In a study conducted by the Stockholm School of Economics, the various senses are examined:

A massive 83% of all visual based information reaches the brain. Good news for marketers who tend to mainly operate in the visual arena. In product / retail terms the product, packaging or display needs to be visually appealing to warrant recognition in the brain. So far so good.  However, we are also bombarded on a daily basis by adverts, labels, posters etc etc. Now the visual communication becomes diluted and the new question becomes how do marketers & manufacturers differentiate themselves from the rest of the pack? The next step in catching the eye of the shrewd consumer is multi-sensory marketing. Smells of freshly washed sheets in the laundry aisle and freshly baked bread in the bakery section have all been proven to increase sales as consumers are 'stimulated' into buying.  Even artificial sounds such as the sound of the sea in travel agents increases consumer's awareness and connects them with products.

In Europe it is quite common to see mechanised toys on shelving units or in actual cordoned off spaces within supermarkets.  These toys, such as teddy bears, sing and dance to music when approached via motion sensors.  What has tended to happen is that grandparents who tend to shop during the day see the display and tell their grandchildren.  The Grandchildren then force their parents to shop with them in the particular store. The children then tell other children and it continues like that until the display becomes the central point in the supermarket.  It goes without saying that the brand exposure and increase in sales boomed.  There are of course limitations and especially in the UK, most multiples would not allow such devices in store.  However, more and more marketers and manufacturers are using multi-sensory techniques such as lights and motion activated sounds in order to differentiate themselves - and - it seems to be working.

When a product is used in conjunction with a 'special display' such as a point of sale unit or anything different from the normal supermarket shelving or stock holding pallets, there is a notable shift in behaviour.  The results from the Stockholm study below show this:-

 ?2 = Sales change for the displayed brand

It seems from the research that products ranging from freezer bags to detergents all benefited from being placed in a special display. Obviously, not all products can or should be placed in special displays otherwise the supermarkets would be full of them, but certain products that demand a premium or are part of a new product development are ideally suited. 

It goes without saying that the shrewd consumer is becoming familiar with special displays and their influence on purchasing decisions so much so that the special display now needs to be even more 'special'. Research tells us that colour is the most important factor in a display, followed by shape and finally text.  The more innovative and visually stunning the display, the higher consumer recognition.  In terms of innovation there is a lot of exciting developments taking place.  Across Europe and coming to the UK soon will be refrigerated Point of Sale displays.  These temporary display units can keep products, normally found in the fridge aisle, anywhere in the supermarket. This is a real development in the ready to eat sector and especially for fruit juices which can now position themselves away from the ultra competitive juice aisle.

Product organisation and positioning in-store is also critical.  The most profitable impulse buys and special offers are normally placed either immediately inside the entrance of the supermarket or placed on the end of aisles - and supermarket layouts are designed to have a large number of aisles.  The table below concerns an experiment conducted by the Stockholm School of Economics.

In the study above the product was toothbrushes.  A whopping 40.8% looked at the organised display as opposed to only 28% at the unorganised display.  An organised display being when the product is arranged by brand, type, function etc rather then haphazardly placed on the shelf.  The organised display had a much higher sales output as well - 1.5% increase - just by arranging the product in a visually appealing and functional way.

 Summary

The consumer is shrewd operator.  Catching their eye is no easy task.  Supermarket and high street techniques such as placing sought after products at the back of the store are now so commonplace that they have become the norm rather then the exception.  Traditional decision making models no longer go far enough in their analysis to explain the purchasing decisions of the modern day consumer.  Instead, marketers and manufacturers are trying to make an emotional connection with the consumer using multi-sensory marketing.  Research from the Stockholm School of Economics demonstrates that various senses all have an impact on purchasing decisions and when these senses are channelled through a special display, the product and marketing offering becomes extremely powerful.

Finally, catching the eye of the shrewd consumer is an ever changing uphill task made even more difficult due to the fact that consumers are more aware of world around them via a multitude of TV exposure and the prominence of the internet.