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Digital and the Path-to-PurchaseFebruary 2011
The Presenters
David LiedVP, Consumer Promotional Services
Ken JohnsSVP, Digital Strategy
Emerging Trends 2011and their Effect on the Digital Path to Purchase
Brunner Intelligence Group
Online Marketing Will Have an Even Bigger Chunk of Marketing Budgets
2011 Emerging Trends
– Shoppers are increasingly going online early in the buying cycle to gather information, form relationships, and make decisions about purchases
Source: Emerging Media Research Council, January 2011
2011 Emerging TrendsThe Rise of Interactive TV
– In 2010, many people were introduced to Internet TV • Google TV, iTV, and
Boxee Box emerged
Source: Emerging Media Research Council, January 2011
2011 Emerging Trends
Source: Emerging Media Research Council, January 2011
– Accessibility to Internet TV will transform television, not only in the way content is presented, but it will disrupt the dominance traditional TV has had in capturing ad dollars
The Rise of Interactive TV
Tablets increase while laptops decrease2011 Emerging Trends
– Tablets will have a noticeable impact on overall laptop sales
– Various market researchers suggest that tablets could reduce total amount of laptops sold 12% over next 2 years
Source: Emerging Media Research Council, January 2011
Mobile devices begin to replace credit cards2011 Emerging Trends
– Using your phone as a credit card for lower value purchases may become a reality
– Google recently announced that NFC (Near Field Communication) technology will be supported in the next release of Android2.3 or “Gingerbread”
Source: Emerging Media Research Council, January 2011
25 Billion Mobile Apps Will Be Sold– Up from 10 billion in 2010– Mobile app ecosystem will restructure the channels
for digital content and services for consumers
2011 Emerging Trends
Source: Emerging Media Research Council, January 2011
Shopper Marketing Today
What is Shopper Marketing?“Is one part of any overall marketing plan that focuses on
shopper-centric insights, strategies, and tactics that occur on the path to purchase bringing measurable actions in specific purchasing environments.”
- Brunner Shopper Marketing Definition
Shopper versus Consumer
SOURCE Booz and Co/GMA, 2010
The world of Shopper
Marketing
AppsSocial Media
MobileText/SMS
In Store Advertising
POSLoyalty programs
Off Shelf Display
Sampling
QR Codes
Packaging
FSIs
Who are the stakeholders in Shopper Marketing? Brand, Retailer and Shopper
What does your brand need to do most?
Form Partnerships
Build Awareness
Generate Trial
Enhance
Loyalty
Build the Shopper Marketing Plan to Fit Your Objectives
Why is Shopper Marketing More Important Than Ever?
KEY STATS
59% purchase decisions are made in store
85% say in-store factors most influential
43% grocery purchases sold on promotion
Source: Grocery Manufacturers Association, Booz & Company and SheSpeaks. "Shopper Marketing 3.0”
Spending on the Increase
Source: Grocery Manufacturers Association
83% of CPG companies will increase shopper marketing expenditures thru ‘13
55% say shopper marketing exceeds all other marketing expenditures’ growth
Historical Path to Purchase
• Stimulus (pre-store: advertising) • First Moment of Truth (at shelf) • Second Moment of Truth (at home:
consumers on whether to repeat purchase)
New Path to Purchase • Stimulus – ZERO Moment of Truth “ZMOT”
(the emergence of online engagement prior to shopping)
Source: Google
Path to Purchase has become asymmetrical and non-linear
The Evolving “Path”
Technology is more pervasive now at each juncture of the shopper’s path.
The Evolving “Path”Digital has inherent benefits.
– First is insights. Digital technology is personal, and hence marketers gain a greater understanding of a consumer’s online patterns, shopping behavior, message response rates, coupon redemption and purchase history directly from digital activities.
– Second is immediacy. Digital, specifically mobile, is the only method of communications that most shoppers have with them in the aisle and at the shelf.
– Third is permission. Unlike offline media or even in-store display, shoppers actually opt-in and express a desire to receive marketers’ communications via technology.
KEY STATS
81% have conducted online
research prior to shopping
94% prepare list before shopping
72% stick to the list
Source: Google
Mobile Usage in the Workforce•52% of business uses the Blackberry as its most common Smartphone.
•19% support the iPhone•14% Android•10% support the iPad•Projections of 2011, drastically change the mix and shift away from Blackberry to:
–60% iPhone–47% iPad–33% Android
Source: ihlservices.com
Digital is Changing Everything
Source: geekwithacomputer.com
13.9 million text messages will be sent in the next hour in the United States
The Ever Changing Path to Purchase
Mobile expansion and portability is the future to reaching tomorrow’s shopper
The Emerging Digital Impact &the Role of Mobile
A phone?
Or a personal assistant?
More people will access the internet via mobile than desktop
2013 Morgan Stanley April 2010
2/3 of smart phone owners use them
in the grocery store
49% recipe searches 38% shopping lists
9% coupons
Add 8-10% for iPhone users
Allrecipies.com Today’s Recipe Box Study April, 2010
54% of retailers will be able to scan coupons from a mobile device into the POS system at store by the end of 2011.
How Marketers Are Responding
Consumers have gone digitalMarketers need to catch up
Consumers• 66% of smartphone
users have downloaded a free app
• 40% have downloaded a paid app
• 34% are interested in receiving mobile coupons
Marketers• 35% of CPG
manufacturers offer apps
• 30% offer mobile coupons
Source: In-store Marketing Institute
Consumers have gone digitalMarketers need to catch up
• 65% of smartphone users have used their GPS
• Almost 70 million smartphones with embedded readers for codes will be in the marketplace by 2012
• 13% are employing location-based services
• 21% are actively engaged with QR codes
Source: In-store Marketing Institute
Consumers Marketers
• 10% of users generate 80% of volume
• 20% of retailers have a mobile marketing strategy
• 30% of HH use their mobile device as their primary computerSource: *Arc, Carrie Newman; **Forrester Reseach/Shop.org;
***Morgan Stanley
Current Mobile Landscape
KEY STATS
288% increase in online coupons
149% increase in local searches
209% increase in recipe searches
188% increase in consumer reviews
Source: Google
The Digital Path
• Text/SMS: regularly used by 68% of all Smartphone users, including a high adoption rate among Baby Boomers
Source: Forrester Reseach/Shop.org;
The Digital Path• Readers: Almost 70 million
smartphones with embedded QR, 2D, UPC readers will be in the marketplace by 2012.
• QR Codes: Less than 1% of shoppers, in a Fall 2010 survey, said they have scanned a QR code
Source: Forrester Reseach/Shop.org;
• Launched mPerks – a mobile coupon program that personalizes coupons on a shoppers loyalty card and allows redemption simply by entering your phone number at the checkout.
• Some Meijer stores are testing “FindIt”, an app that enables shoppers to locate products within the store through a GPS system while in the store.
• Meijer also has a robust text and voice mail program.
• A pioneer in mobile marketing, Walgreens enables customers to view product inventories, reorder prescriptions, and access photo developing through their Smartphone.
Location-Based Marketing
• Best Buy helped to start Shopkick – the location-based multi-retailer incentive app. Macy’s, American Eagle, and others have joined forces.
• Best Buy will send offers to loyalists when the enter the store
A Whole New Arsenal of Tools
Six Smarter, Faster Ideas for a Better Shopper Marketing Plan
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATIONDOCUMENTATION
INSPIRATION
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATIONDOCUMENTATION
INSPIRATION
Brand Agency
Retailer
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATION
VALIDATIONINSPIRATION
IMPLEMENTATION
Branding
Strategy
Trade
Packaging
SocialMobile
Location Based
POS / Display
Analytics
ROI
Advertising
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATION
VALIDATIONINSPIRATION
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATION
VALIDATIONINSPIRATION
6Smarter and Faster Ideas for a Better Shopper Marketing
Plan
INTEGRATIONCOLLABORATION
IMPLEMENTATIONDIFFERENTIATION
VALIDATIONINSPIRATION
Questions…Email us at:kjohns@brunnerworks.comand dlied@brunnerworks.com
Digital and the Path-to-PurchaseFebruary 2011