creating retail brand presence in the emerging markets

CREATING RETAIL BRAND PRESENCE IN THE EMERGING MARKETS

6th annualPOPAI marketing and retail

INDEX:

• AFRICA: THE OPPORTUNITY

• BRANDS IN AFRICA

• RETAILING IN AFRICA

• TRENDS IN RETAILING

• TECHNOLOGY

• CASH

• AUGMENTED REALITY

• FORTRESS BRANDING

• SOCIAL RETAILING

• CONCLUSION

AFRICA: THE OPPORTUNITY

AFRICA:

THE OPPORTUNITY:

Country Size GDP 2011 GDP 2012

Ghana 24,652,402(July 2012 est.)

$75.9 billion $66.81 billion

Angola 24,652,402(July 2012 est.)

Zimbabwe 12,619,600(July 2012 est.)

Kenya 43,013,341(July 2012 est.)

Uganda 33,640,833 (July 2012 est.)

Zambia 13,817,479(July 2012 est.)

$22.16 billion (2011 est.)

$20.8 billion

Percentage growth highlighted

IMF says that the continent’s GDP will grow 5% this year, down from a predicted 5.4% but still much faster than anywhere else. In 2013 growth may nudge 5.7%.

THE OPPORTUNITY: OIL DISCOVERIES

ETHIOPIA

UGANDA

TANZANIA

MALAWI

BRANDS IN AFRICA

BRANDS IN AFRICA: ANGOLA

BRANDS IN AFRICA: NIGERIA

BRANDS IN AFRICA: KFC IN AFRICA

BRANDS IN AFRICA: SHOPRITE IN AFRICA

RETAILING IN AFRICA

TRENDS IN RETAILING

TRENDS IN RETAILING:

“Prediction is very difficult,especially about the future”

Niels Bohr

TRENDS IN RETAILING:

Pre-tail – Retail – Post-tail

TRENDS IN RETAILING: APPLE

TRENDS IN RETAILING: I-PAD KIOSK

TRENDS IN RETAILING: ITAU BANK

TRENDS IN RETAILING: COMMUNITY BANK

TRENDS IN RETAILING: BANKING KIOSK

TRENDS IN RETAILING: MTN MOBILE MONEY

Manual sleeves.

Protective foam insert.

POS Device.

Laptop.

Sim cards.

Sim Card Copier

Side in Portable Camera

Slot for Camera

TRENDS IN RETAILING: VIRGIN MONEY

TRENDS IN RETAILING: ABSA

TRENDS IN RETAILING: FNB

TECHNOLOGY

TECHNOLOGY:

Embrace Technology or Die

TECHNOLOGY:

Cash is dead

CASH: MOBILE MONEY

CASH: MPESA

• M-pesa is a mobile-phone based money transfer and microfinancing service for Safaricom and vodacom, the largest mobile network operator in Kenya and Tanzania. Currently the most developed mobile payment system in the developing world, M-Pesa allows users with a national ID card or passport to deposit, withdraw, and transfer money easily with a mobile device.

• M-PESA is a Safaricom service allowing you to transfer money using a mobile phone. Kenya is the first country in the world to use this service, which is offered in partnership between Safaricom and Vodafone. M-PESA is available to all Safaricom subscribers (Prepay and Postpay), even if you do not have a bank account. Registration is FREE and available at any M-PESA Agent countrywide. The M-PESA application is installed on your SIM card and works on all makes of handsets.

• Safaricom is a Kenyan mobile service operator behind the M-pesa booming mobile money transfer service. Safaricom entered into partnership with mobile telephony firm to offer voices and SMS service in Uganda.

• Generally Safaricom doesn't have permission to operate M-pesa in Uganda, but some M-pesa agents are assisting customers, to facilitate transfers and payments through M-pesa but charging their own rates. These agents are located mostly in Kampala town and town centres on it

• Did you know that Kenya, Tanzania, Uganda and Rwanda currently have a combined active mobile subscriber base of 43.3 million.

• It is said that at least $1.05 billion (more than Sh1.7 trillion) is transferred monthly through the revolutionary payment app, ‘M-Pesa’ in Kenya, Tanzania, Uganda and Rwanda.

• Since its launch, M-Pesa has captured a significant market share for cash transfers, and grew astoundingly quickly, capturing over 14 million subscribers and well over 28,000 agents across Kenya alone by November 2011.

• Now available in Afghanistan and South Africa, there are plans to expand the service to Egypt and India, while many first world countries rush to embrace the technology, such as Australia’s Commonwealth Bank’s ‘Kaching’ mobile payment app service.

AUGMENTED REALITY

AUGMENTED REALITY:

While retailers in the fashion space have been toying with the idea of virtual dressing rooms for some time, they have yet to break into the mainstream. Online retailers like Amazon.com have released applications that in fact take purchases out of brick and mortar retailers by allowing users to view products in person and price compare via augmented reality applications.

AUGMENTED REALITY:

• 8 percent of today’s augmented reality use for marketing is focused on point of sale experiences (Source: Hidden Study)

• 7 percent of today’s augmented reality use for marketing is focused on “try before you buy” experiences, giving consumers the chance to “see it on” or test drive a product before purchasing (Source: Hidden Study)

AUGMENTED REALITY:

As mobile technologies and bandwidth continue to progress, augmented reality will become the norm for in-store experiences and retail shopping. Brands must be moving at the same pace their consumers are and have a plan in place for augmented reality usage as it relates to navigation, content delivery, and product experiences.

AUGMENTED REALITY: DAILY DINERS DEALS ON IPHONE

AUGMENTED REALITY: DEAL AGGREGATOR ON IPHONE & ANDROID

AUGMENTED REALITY: ATM NEAR YOU

AUGMENTED REALITY: SNAKESHOOTER GAME ON IPHONE & ANDROID

AUGMENTED REALITY: MTN BRANCH LOCATOR

AUGMENTED REALITY: MTN IN STORE ZONE APP

AUGMENTED REALITY: NEDBANK MOBILE APPS

AUGMENTED REALITY: STELLA ARTOIS BAR GUIDE

AUGMENTED REALITY: PERSONAL ASSISTANT

AUGMENTED REALITY: 360 DEGREE AIRBUS

AUGMENTED REALITY: 360 DEGREE CAR DEMO

AUGMENTED REALITY: MINI- SUB

FORTRESS BRANDING

FORTRESS BRANDING:

FORTRESS BRANDING: HEINEKEN - INTERNATIONAL

FORTRESS BRANDING: CASTLE LITE – KENYA: K1

FORTRESS BRANDING: PERONI – KENYA: CASA BLANCA

FORTRESS BRANDING: PERONI – KENYA: SANKARA

SOCIAL RETAILING

SOCIAL MEDIA IS A BAD EXPRESSION AS IT SUGGESTS THAT BY USING IT YOU ARE PER DEFINITION A SOCIAL COMPANY. BUT MEDIA

ARE NOT SOCIAL. PEOPLE ARE.

THAT MEANS THAT USING SOCIAL MEDIA IS NOT AN EXCUSE FOR NOT DOING THE

HOMEWORK ON BRANDING ETC AS COMPANIES HAVE BEEN DOING THE LAST

CENTURY.

IT IS NOT VERY DIFFERENT FROM YESTERDAY. EXCEPT FOR IF YOU MESS THINGS UP,

EVERYBODY WILL KNOW AND LAUGH AT YOU.

SOCIAL RETAILING:

The world of social media is littered with brand mentions and recommendations from friends, friends of friends, and perfect strangers.

Now, more than ever, consumers are turning to social media and the digital space for product research before purchase.

SOCIAL RETAILING:

• 76 percent of consumers recommend companies they trust to a friend or colleague (Source: Edelman)

• Millennials are highly-skeptical of brand content and marketing in social media, instead 86 percent of consumers in that group say that user-generated content has more influence on what they buy (Source: Bazaarvoice Study)

• 62 percent of all online shoppers read product-related comments from friends on Facebook, with 75% of these shopper clicking through to the retailers site (Source: Sociable Labs Social Impact Consumer Study)

SOCIAL RETAILING:

With increased social recommendations being at the forefront of information gathering and product/brand discovery, it’s incredibly important that brands are taking advantage of these touch points and creating opportunities for consumers to create, share, and interact with recommendations via social networks, forums, blogs, and brand-owned websites and storefronts.

SOCIAL RETAILING:

SOCIAL RETAILING: FRIENDS & INFLUENCERS

• 57 percent of shoppers are more likely to buy after receiving opinions from friends (Source: Sociable Labs Social Impact Consumer Study)

• The top-two reasons consumers are driven to action are: 1) Their friends shared reasons the bought a product or prefer a brand 2) Their friends shared discounts (Source: Sociable Labs Social Impact

Consumer Study)

SOCIAL RETAILING: FRIENDS & INFLUENCERS

With the increase in reliance on friends and influencers in the purchase decision process, brands must activate influencers and engage current customers in content and programs that not only continue to meet the needs of current customers or brand advocates, but also provide valuable information or potential customers when shared.

Brands must also build sharing actions and functionality into their sales, marketing, and purchase processes in order to create sufficient levels of social content.

SOCIAL RETAILING: ENTERTAINMENT

Users engaged with TV and movie content aren’t simply sitting on the coach or in a theatre watching the entertainment anymore. Mobile devices and applications aimed at bringing users deeper into the entertainment experience are quickly becoming the norm.

As brands, products, and services are increasingly inserted in entertainment, the chance for integration with social entertainment experiences increases. While the apps in market are still in the early days, the facts about mobile device and PC use while consuming entertainment are undeniable.

• 86 percent of tablet owners and 88% of smartphone owners in the U.S. use them while watching TV (Source: Nielsen)

• The 2012 Super Bowl saw 8 commercials mention Twitter and 8 mention Facebook – the most ever (Source: Advertising Age)

• U.S. and U.K. consumers have higher simultaneous use of TV and smartphones/tablets than the rest of the world… combined (Source: Nielsen)

With a number of clear app leaders and opportunities for branded content delivery alongside and within entertainment content via mobile and tablets, brands must develop a strategy that incorporates advertising and content in order to tie existing on-screen integrations into digital campaigns for extended reach and added impact.)

SOCIAL RETAILING: IMAGE-BASED SOCIAL NETWORKS

There’s something about an image. Where it was that they once were worth a thousand words, images are now translating not only into words, but into real dollars for brands.

The emergence of visual bookmarking site Pinterest and the super-simple mobile image sharing network Instagram have increased the importance of a brand image strategy.

TRACKING

SOCIAL RETAILING: TRACKING

INSTORE EXPERIANCE

SOCIAL RETAILING: IN-STORE EXPERIENCE

IN CONCLUSION:

YOU ARE YOUR PHONEYOUR PHONE IS YOU

IN CONCLUSION:

CONTACT US

8brand

Contact: Laine Barnard

Email: laine@8brand.co.za

Head Office: +27 21 423 2509

Website: www.8brand.co.za

THANK YOU

creating retail brand presence in the emerging markets

africa retailing

africa trends

pesa agents

safaricom service

pesa application

mobile moneyconfidential

mobile money transfer

mobile device

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