In-store and shopper marketers are adopting a whole new way of doing business, which is being forced by the proliferation of COVID-19 with uncertainty about what will affect buyers on the other hand.
Carla bridge
With the shop! ANZ General Manager Carla Bridge.
Although it is an integral part of the typical FMCG environment, which has increased 20 to 50 percent in many sectors, COVID-19 has impacted the marketing environment in the store with restrictions and behavior changes.
Many members of shop! Are still in evaluation and preparation mode and take stock of the daily changes for supermarket environments and thus the work volume. However, this will soon either change to what the government calls "hibernation" or a new short or long-term way of working.
In-store and shopper marketers serve three “masters”: brands, retailers and buyers. While some brands are still in a healthy position in terms of sales, we are seeing big changes in the stores where their marketing is placed. Consumer inventory has led to unsafe supply chains, which means that POS ads and NPDs may not be in the best interest if there is no inventory for buyers.
The secondary problem is that with increasing social distance restrictions, retailers are clearing their aisles from displays to give buyers as much space as possible to comply with the 4 m² per person distance rules.
Some companies continue to offer displays for important items during this period, which is good news for local manufacturers and suppliers. Local manufacturers of POS displays have reported an increase in workflow that goes beyond what is typical at this time of year. Offshore manufacturers like China have been decommissioned and freight costs have skyrocketed due to the worldwide cessation of flight operations. Certain materials required for marketing may also be more difficult to obtain at the moment.
Some of the FMCG marketers most affected were those in sampling and experience. Sampling was one of the tasks that had to be pulled from supermarkets for security reasons, and large events were quickly canceled.
Many FMCG brands rely on events to bring new products to the market and provide physical brand experiences. The F1 in Melbourne and the Royal Easter Show in Sydney are just two events that fall victim to the security measures of COVID-19.
Some shopper marketing agencies are also struggling to survive. Scheduled campaigns are suspended indefinitely. Even if business returns to normal in the not too distant future, these campaigns may no longer be relevant in the new landscape.
One area where FMCG marketers have been able to gain a foothold has been health and safety, with an exponential increase in socially distant floor decals, checkout plexiglass screens, pull-up banners, and signage warning the public of COVID-19 warn symptoms, barriers to separation and opposite.
Other areas that marketers are focusing on include beauty products. With beauticians and hairdressers largely shut down, products such as hair dyes, wax sets, face masks, eyelash and brow tint sets, and other related services are expected to bring growth.
Cosmetic products, whose sales have declined, should also be prepared for an increase as soon as social restrictions are lifted, with the hope that the “lipstick index” will apply. Marketers who have the time can now start planning contingencies on the other side.
There was also high demand for digital services and campaigns. However, since internal budgets have been cut, agencies are put on hold and brand teams are able to produce digital assets internally. In the event that agencies are used, assets and budgets from previously planned campaigns will be made available for new digital purposes.
The last FMCG marketers of the “masters” are perhaps the most important: buyers and consumers. This is where the greatest uncertainty lies. The behavior of buyers has changed fundamentally and far-reaching in the last few weeks alone. The longer the COVID-19 situation continues, the greater the development of the buyer will be.
The biggest challenge for everyone in this market is to predict these behavior changes and apply them to modeling and marketing campaigns. Are buyers subsequently lured or shut down by messages of togetherness after spending months in close relationship with family members? Will they be more careful or exercise caution when they can finally break their COVID-19 chains?
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Carla Bridge is General Manager of the nonprofit retail marketing association Shop! ANZ (formerly POPAI). Business! offers a range of membership services for retail marketers in addition to the annual Marketing at Retail Awards. Carla has over 15 years of experience in the Australian retail and FMCG industry. Before you come to shop! ANZ, she was Head of Media and Communication at the Australian Retailers Association.
