Digital and the path to purchase webinar

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




– 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


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”


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



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

http://www.youtube.com/watch?v=esAPuqCQ5Z8

Six Smarter, Faster Ideas for a Better Shopper Marketing Plan

6Smarter and Faster Ideas for a Better Shopper Marketing

Plan

INTEGRATIONCOLLABORATION

IMPLEMENTATIONDIFFERENTIATIONDOCUMENTATION

INSPIRATION


Plan


IMPLEMENTATIONDIFFERENTIATIONDOCUMENTATION

INSPIRATION

Brand Agency

Retailer


Plan


IMPLEMENTATIONDIFFERENTIATION

VALIDATIONINSPIRATION

IMPLEMENTATION

Branding

Strategy

Trade

Packaging

SocialMobile

Location Based

POS / Display

Analytics

ROI

Advertising


Plan


IMPLEMENTATIONDIFFERENTIATION

VALIDATIONINSPIRATION

Questions…Email us at:[email protected] [email protected]

mailto:[email protected]

mailto:[email protected]

Digital and the Path-to-PurchaseFebruary 2011

Digital and the path to purchase webinar

Education

Transcript of Digital and the path to purchase webinar