At Summit 2006 Jesper Wiegandt, Marketing Director, Proctor & Gamble told us how P&G work to win the first moment of truth
‘The consumer is boss’ is Procter & Gamble’s motto and given the number of globally successful brands in their portfolio it’s hard to argue with. But it’s not just a motto that makes P&G stand out from the crowd. Their dedication to winning the shopper’s heart and mind is crucial in being a leading FMCG manufacturer.
The importance of the store is not to be underestimated and this can be achieved by integrating the store into the marketing mix by communicating effectively and creating value for the shopper. The key is to win the first moment of truth, that is to say, get and keep the attention of the shopper at the point of purchase where a massive 70% of buying decisions are made.
The second moment of truth is harder for the manufacturer to control as this is when the product purchased is used. But it helps to understand the difference between the shopper and the consumer. The shopper is often busy wondering whether he can afford it, find it, remember it and carry it, whereas the consumer will be more interested in whether it’s easy to use, quick and fun. And it is not always only the consumer who benefits. For example, a pot of Olay Regenerist could potentially be seen as benefiting him as much as it does her.
The media and retail climates have changed almost beyond recognition in the last thirty years. To reach 80% of the population in 1977, you would have needed just three television advertising spots. To reach the same figure today, around 75 spots are required. Equally, the top three retailers represented 25% of all sales thirty years ago while today they account for around 60%.
There are a number of ways to increase your chances of winning the first moment of truth. Creating consumer value, such as the way in which Starbucks have turned a simple hot drink into an entire experience, is vital in gaining consumer advocacy and loyalty. Achieving ‘cut-through’ in-store, as opposed to simply creating clutter is also important, as is understanding the value of the in-store GRP (gross rating points).
Finally, manufacturer/retailer partnerships must be nurtured, making joint value assessments, maintaining high levels of efficiency and accountability and perhaps most importantly, having a genuine and continued focus on the consumer and the shopper.