Connecting Northwest Arkansas, October/November 2009
BRIAN PEAR
VP, GENERAL MANAGER
SHOPPER EVENTS
The Shopper Events organization was created earlier this year to serve as the authorized planning and coordinating company for all in-store demonstration activities at Walmart. The company oversees all in-store events, which in turn are executed at 2,000 supercenters by employees of Advantage Sales and Marketing and CROSSMARK who operate under a shared services agreement. Brian Pear serves as VP and general manager of Shopper Events and leads the company’s efforts.
CNWA: BRING US UP TO SPEED ON THE PROGRESS SHOPPER EVENTS HAS MADE SINCE THE LAUNCH EARLIER THIS YEAR.
BP: Our launch in February was followed by a second wave of stores in March and a final wave of stores in April that gave us a presence in 2,000 supercenters. Since then, we have expanded to the new Supermercado stores and also are in Neighborhood Markets in a limited launch. Events are conducted Thursday through Sunday, and we use a total of three newly designed event stations that are attractive and portable. Two are designed for use in the food area and can accommodate preparation equipment and refrigerators.
We have one station with a smaller footprint that is used on the general merchandise side of the store, primarily in health and beauty. These fixtures enable us to provide a consistent look and feel while still incorporating branding elements of the featured items.
CNWA: WHAT DOES THE LABOR MODEL LOOK LIKE?
BP: One of the big advantages of the Shopper Events program is the shared services model with Advantage Sales and Marketing and CROSSMARK. The people responsible for executing the events are all W-2 and I-9 employees who have been background checked and food safety certified.
There is a management infrastructure that mirrors a typical [consumer packaged goods] sales force with 75 district managers and eight regional managers. This approach enables us to deliver an on-date execution rate of approximately 95% that we are able to monitor through our EventTrak reporting system.
Most importantly, a favorable and consistent experience is delivered to customers because demonstration specialists are assigned to the same store every week.
CNWA: HOW IS PARTICIPATION IN EVENTS DETERMINED?
BP: All events must be approved by the buyer, as well as deliver relevance to all of Walmart marketing platforms.
CNWA: THIS NEW APPROACH IS A DRAMATIC DEPARTURE FROM HOW DEMONSTRATION ACTIVITIES WERE CONDUCTED IN YEARS PAST. WHAT’S BEEN THE IMPACT ON SALES?
BP: Our sales results on the day of the event are stellar, and the brands that participate in Shopper Events programs maintain healthy sales lift. When you combine the sales results with the added benefit of trial and reach that demonstration activities provide, the net result is a compelling marketing tactic to drive sales at Walmart.
CNWA: DO THE INCREASES INCLUDE PRODUCT PURCHASED FOR USE BY THE DEMONSTRATORS?
BP: They do not. We exclude product purchased for sampling purposes in our assessment of sales lift.
CNWA: ARE THERE OTHER METRICS BEYOND SALES THAT SUPPLIERS SHOULD BE LOOKING AT AS THEY EVALUATE RETURN ON INVESTMENT?
BP: We have created a Walmart sampling event value prism to help suppliers gauge their ROI. For example, we incorporate metrics associated with advertising, brand impressions, sampling, the use of premiums, customer engagement and participation in the Smart Network with measurable results, such as average sales lift and sustained sales lift.
By accounting for a broader range of variables, we are able to provide a more complete picture of an event’s impact beyond even what are some very impressive numbers when it comes to sales lift.
CNWA: WE TOUCHED ON THIS EARLIER, BUT WHAT DOES THE MIX OF DEMONSTRATION ACTIVITIES LOOK LIKE, AND ARE YOU SEEING ANY CHANGES THERE?
BP: Events in such categories as food, beverage and health and beauty have comprised the majority of event activity to date, but we are well equipped to execute events in any category. Going forward, we will be moving into the delivery of technical events as well, so you will see Shopper Events offer suppliers new capabilities in the electronics area, for example, where demonstration personnel are provided specialized training to execute more technical events.
CNWA: LOOKING AT THE MOMENTUM THE PROGRAM HAS GAINED SINCE ITS LAUNCH, WHAT IS THE OUTLOOK FOR THE REMAINDER OF THIS YEAR AND INTO 2010?
BP: We have achieved strong momentum as more suppliers have stepped up to invest in this effective marketing tactic with a clearly identifiable ROI. Looking ahead to next year, we anticipate solid performance as we expect suppliers to utilize in-store sampling in an integrated form with other key Walmart marketing tactics.
