Grocery brands and the digital landscape

Grocery and digital only a short t ime ago..

Consideration On the go Point of purchase

A distant relationship with the grocery shopper s journey ..

Online consumer act ivity has changed

Internet breakdown Music Book buying Technology focused

Less online purchases due to security concerns

Digital is yet to become a major part of peoples lives

2000 s 2010 sInternet breakdown:

Search engines 20%Software 8%Media/ news 8%Grocery 6%

93% of European net users have made a purchase online

Consumers are now connected and shopping online

Source: Neilsen Top 100 websites (2010) / BBC - Top 100 sites on the Internet

Consumers move online to shop

Four years ago, only 10% (627m) of the global online populat ion had made a purchase using the Internet

Within two years, the number increased to 875m and now stands at over 1bn worldwide

Sainsbury s has seen online sales increase by 25% in the last quarter of 2010

UK housewives (designated as main household shopper) spent 47% of their free t ime surf ing the internet in 2010

Source: Sainsbury s Press release Jan 2011

Google t rends (recipes)

Rise in search and referential interest in recipes online over the last two years

Source: Google Trends

Google int roduces recipe search funct ion

Online appet ite for food sites

Source: DoubleClick Ad Planner Jan 2011

Varying opportunit ies through food sites

Number of unique visitors to food sites now means that advertising opportunities are huge

Not j ust display, but integrated opt ions, recipe insert ions, page sponsorship and more (on well known pages)

Mobile connected devices

Smartphone users and mobile minutes

11.1m smartphone users in the UK

(22.2m people currently use mobile Internet in the UK)

Facebook (5 million unique visitors)Google sites (4.6m unique visitors)

Source: ComScore and GSM Association (GSMA)

Smartphones replace the cookbook

Smartphones are replacing the cook book

People are using connected devices for cooking/ checking ingredients + looking up recipes in the kitchen

Recipe sites/ apps create the perfect opportunity for FMCG brands to be part of the food prep process

Barcode scanning - Tesco app

Tesco barcode scanning app - allows you to store your shopping list on phone by scanning the products

Purchase productsusing your phone

Locat ion-based market ing

Frequent customers checking in on Foursquare unlock Barrista badge

Badge entitlement shown entice in-store sampling of coffee

Users will become prompted to interact with their environment using mobilephones e.g. QR Codes and visible URLs

Scan a QRC takes the user direct ly to website (in this case, the Pepsi store)

Codes can be used on ads, banners, merchandising etc. directing people toonline content (fully traceable using analytics)

QR Codes

Social media

How people are using social media?

Social networking 1/4 time online

Those using social media42% manage a social network profile32% use, upload or share photos11% use, upload or share videos8% write a blog5% use Twitter

What one hour online in the UK now looks like

Source: UKOM (above)Source: Global Web Index (right)

UK social media demographics

(25.9m UK users)

70% aged 20 - 50+

(10m UK users)

64% of Twitter users are aged 35 or older

But how relevant is social media to FMCG?

Just look at a couple of food sectors

Last 30 daysUK Only

Source: Radian6

And a couple of brands

Last 30 daysUK Only

Source: Radian6

Baking conversat ion in the UK (online)

Last 30 days

19,207 mentions on Twitter

3,486 Blog mentions

1,098 Facebook and other social networks

Source: Radian6

Different st rokes for dif ferent folks

Brand types and social media

The image led brand people want to hang

out with

The brand with hidden depths interesting once

you start chatting

Iconic brandslike Coca- Cola,Marmite, Guinness,Tabasco and Skittles

Brands with heritage,brand stories or in categories thatare interesting e.g Patak s, Blue Dragon,Tropicana

The commodity brand once

associated with an interest

people will chat

Brands that are by nature commoditiesor in low interest categories e.g Evian, Harpic, Saxa Salt

Social media brandArchetype 1

Social media brandArchetype 2

Social media brandArchetype 3

Examples of image led online brands

Skit t les Facebook page

Marmite Facebook Love page

ToV in line with brand position

User interaction and marmite sharing

Requests for recipe suggestions and ideals for multiple uses of marmite

500,000 likes

Marmite Facebook Hate page

Launched in 2010 for those that hate Marmite

Branded but non promotional

User interaction and marmite sharing - even though people dislike the product on the page

180,000 likes

Examples of brands with hidden depths

Patak s

Making use of heritage and family history

Product story

And brands that might be perceived as commodity

Brita

BRITA water f ilters support an expedit ion to Nepal and run a charity page

But social media cannot be left ent irely to it s own devices

Brands effect ively driving people to FB

Television adverts referring to Adam & Jane s wedding on 23rd of April

Competition drive

Viewers referred to Facebook

BT capture 50,000 likes on their page

Wrigleys drive to Facebook via Met ro

Press ads in Metro - f ind the food creatures on Facebook to win Starbucks coffee for a year

Ran once

resulting in 150,000 new likes

McCain s Facebook page

Trends to look out for in the social media world .

Facebook Quest ions

Facebook Credits

Facebook want to int roduce their own currencyFacebook set to expand credits into a bill ion dollar marketplaceCredit use for buying and selling products, games, cinema tickets etc.Potent ial for working with t rade partners

Facebook Places and Deals

Locat ion based networking now very popularEasy to useRival to Foursquare due to bet ter coverage

Purchase via social media (social commerce)

Heinz launch new Tomato ketchup range with balsamic vinegar on Facebook

Social commerce potent ial with a PR/ viral element

Easy to share with friends (generates word of mouth)

And what about the good old fashioned website?

Strong food website examples

HiPP Organic s new website

McCain s website

Love Pork website

So the grocery customer j ourney model has changed!.. . .

Digital is now at the heart of the mat ter

Consideration On the go Point of purchase