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Marketers to Bolster in-Store Efforts in 2006


CHAPEL HILL, N.C. -- Finding significant leverage in "dismal" past performance, marketers will boost their in-store marketing efforts in the next 12 months, according to marketing consultancy Yankelovich Inc., which issued its annual predictions today. President Walker Smith says marketers have the potential to revolutionize the retail experience if they take the time to give consumers the in-store experiences they desire.


"The place where consumers are most receptive to buy something - the point-of-sale - is the place where marketers do the worst marketing," Smith said. "Clutter, crowded aisles and cheap cardboard displays do not create good branding opportunities. Marketers can change consumers' expectations at the point-of-sale if they create experiential and tangible environments for consumers, as Whole Foods has done for grocery shopping."


Other notable predictions from Yankelovich for 2006 include:


--Multicultural - U.S. Hispanics will become an even more important target for marketers as their disposable income and clout continue to rise. Increased acculturation levels, resulting from experience and greater education, will add to the targeting complexities of this population segment.


--Self-Expression - Being quirky will gain steam in 2006 as consumers continue their search for novelty and personal satisfaction, often opting for the offbeat and unexpected.


--Healthcare - Avian flu and the potential for an epidemic will be top of mind in 2006, diverting public attention from other pressing health concerns. Expect ongoing changes in marketing approaches, increased efforts to market a health message, including changes in packaging and labeling, and the launch of more healthful convenience foods.


Hispanic Market Dominates:


Hispanics are a main driving force in the American economy and will continue to be a catalyst for growth in the U.S., said Sonya Suarez-Hammond, Director of Yankelovich. "As the level of disposable income and the number of Hispanic-run businesses continue to rise, Hispanics will become an even greater factor for marketers," she added. "Greater outreach by marketers from a broader array of industries will be seen due to more affluence and higher rates of entrepreneurship."


Suarez-Hammond also predicts:


--Geographic dispersion - A greater geographic dispersion will continue as Hispanics seek more job opportunities, coupled with the more affluent moving from urban areas to suburban communities. Hispanics will continue to move to more non-traditional states, including new settlement states such as Nevada, Georgia, North Carolina, Oregon and Washington, to work and establish new Hispanic communities. Marketers will have to work even harder to reach them, Suarez-Hammond said, taking not only geography into consideration but factoring in acculturation levels, changing family dynamics and dual language considerations.


--Media - An increase in bilingual media is expected as acculturation levels become more sophisticated. Bi-culturalism will be a greater marketing consideration, beyond bilingualism, and feed the development of new media channels and outreach. Examples include TV shows "George Lopez," "Freddie" and "Dora the Explorer" and her cousin Diego, and the newer English language for Hispanic networks such as Si TV and mun2.


Quirky Counts!


Offbeat options will count more in 2006 than ever before.


"From unexpected colors and combos to a new angle or twist on something more mainstream, quirky will count in the New Year," said Ann Clurman, Senior Partner at Yankelovich. "Marketers need to understand that people's desire to be quirky is going to gain steam, and they'll need to bet on offbeat options to appeal and reach people. We will see new definitions of what's attractive or compatible."


Yankelovich predicts that quirky will count more in 2006 for three reasons:


--Be Different - It will be a reaction against the fact that everyone seems to have everything and stores seem to all be selling the same thing. People want to be different. In fact, 61% of people select brands because they express their unique tastes, up from 55% in 2002, according to the 2005 Yankelovich MONITOR(R) Study.


--Exclusivity - It counts more for personal satisfaction than showmanship. In fact, nearly 50% of people say it's important for them to express their creative side, up from 38% in 2004, according to MONITOR.


--Naughty is better than Nice - Being naughty, even flying in the face of your own rules, counts for more. More than half of all people (62%) say doing something naughty once in awhile feels good.


Consumers are now more interested in novelty, risk taking and self-expression, added Smith, so they are interested in brands that facilitate those desires. Examples include:


--Pop Secret popcorn - The website allows people to submit photos of themselves and their secrets.


--Absolut - Its new campaign, Absolut Metropolis, invited 11 people off the street of Tokyo to interpret the Absolut brand.