master track a: the store is changing: how emerging technologies are redefining the shopping...

The Store is Changing

How Emerging Technologies are Redefining the Shopping Experience

BRIAN LECOUNTDIRECTOR, INSIGHTS & PLANNING

HANS FREDERICKSVP, MOBILE BUSINESS DEVELOPMENT

MATTHEW GASEPRESIDENT & CEO

VIC CLESCERISR. DIRECTOR, JOINT BUSINESS PLANNING

@blecount

[email protected]

@Matt_Gase

linkedin.com/in/vclesceri

@manuelrosso

MANUEL ROSSOFOUNDER & CEO

Today’s Agenda

• The World We Live In• Opportunities for Marketers– Food on the Table & Stubb’s Bar-B-Q– ConAgra Foods & POSSIBLE

• Q&A• Hands On

3 TRENDS WE’RE WATCHING

Where’s the Store?1

Life is a Game2

The Package is the Key3

Where’s the Store?1

Life is a Game2

The Package is the Key3

UNDERSTANDING HOW AND WHY PEOPLE INTERACT WITH DIGITALALLOWS US TO ENGAGE THEM WITH CONTENT, STORIES & EXPERIENCES THAT GIVE THEM A ROLE TO PLAY WITH THE BRAND.

PARTICIPATIONIDEA

Hans Fredericks Vice President Mobile – [email protected] 2012

Mobile’s Impact on Shopping Behaviors

The World We Live In:

Smartphone 47.4%Not

Smartphone 52.6%

U.S. Smartphone PenetrationJune 2012

CONTINUING TIDAL SHIFT TO SMARTPHONES • Total Smartphone audience increased by 42% year-on-year• Your shoppers have smartphones – or will very soon!!

Product: comScore MobiLens, USData: Three month average ending June 2012

110.9 million

+47% Year on Year Growth

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Growth of U.S. Smartphone Installed Base

# Ph

one

Ow

ners

(000

)

SMARTPHONES ARE CHANGING COMMERCE

Shopping Guides

Deal-A-Day

Electronic Payments

Credit Cards

Online Retail

Bank Accounts

0% 5% 10% 15% 20% 25% 30% 35% 40%

16%

16%

21%

22%

25%

38%

E-commerce and Related Services Accessed By % of Smartphone UsersJune 2012


CONSUMERS SHOP – AND BUY ON-DEVICE

Product: comScore MobiLensData: Three month average ending June 2012

Checked product availability

Purchased goods or services

Made shopping lists

Found coupons or deals

Researched product features

Compared product prices

Found store location

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

17%

18%

20%

21%

21%

22%

34%

Shopping Activities with SmartphoneJune 2012

% Smartphone Audience

CONSUMERS BUY LOTS OF THINGS ON-DEVICE


19.7 million U.S.

Smartphone Shoppers

Sports/Fitness equipment

Groceries

Gift certificates

Personal care / hygiene products

Meals for delivery or pickup

Consumer electronics / household appliances

Daily deals or discount coupons

Books (not ebooks)

Tickets

Clothing or accessories

0% 5% 10% 15% 20% 25% 30% 35%

12%

15%

15%

17%

20%

20%

21%

22%

25%

33%

% Purchased Goods or Services with Smartphone

Type of Goods or Services Purchased Using SmartphoneJune 2012

MOBILE SHARE OF E-COMMERCE GROWING

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Q2 2010

9%8%

9%8%

6%6%

3%3%

2%

Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device

Spike in percentage of e-commerce sales via mobile coincides with surge in tablet

ownership

Source: comScore Mobile Measurements

VARYING USE OF WEB/APPS AMONG RETAILERS

Walgreensshopkick

Home DepotBlockbuster

TicketmasterRedbox

Best BuyTargetNetflix

Wal-MartAmazon

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

WebApp

Top Smartphone Retail Properties, % Share of Time Spent by Access Method

June 2012

Product: comScore Mobile Metrix 2.0, USData: June 2012

MOBILE DISRUPTING BRICK AND MORTAR

Checked Product Availability

Researched Product Features

Found Coupons or Deals

Found Store Location

Compared Product Prices

Sent Picture of Product to Friends/Family

Scanned a Product Barcode

Texted or Called Friends/Family about Product

Took Picture of Product

5%

7%

9%

10%

11%

17%

17%

18%

21%


Penetration of Activities Performed on Phone While in Retail StoreJune 2012

SURGE IN QR CODES LAST HOLIDAY SEASON

Sep 2011 Dec 2011 Mar 2012 Jun 20120.0

5.0

10.0

15.0

20.0

25.0

16.319.9 19.8 20.9

QR Code Users (M) Among Smartphone UsersJune 2012

Almost 21 million U.S. Smartphone owners scan a QR Code at least once per month – up 28% since Sep 2011

19% or nearly 1 in 5 smartphone owners currently scan QR codes each month

48% scanned a QR Code while in a Retail Store


Printed Magazine or Newspaper

Product Packaging Poster or Flyer or Kiosk

Website on PC-10%

0%

10%

20%

30%

40%

50%

60%

46% 44%

26% 25%

Top Sources of QR Codes Scanned by Smartphone Owners June 2012

MOBILE BRIDGES PHYSICAL/DIGITAL CHANNELS

Newsprint Retail Outdoor Digital

Mobile provides link

to

Source: comScore MobiLensData: Three month average ending June 2012, US

Source: Custom Mobile Retail Advisor Survey April 2012

Yes40%

Yes, I would like to be alerted

46%

No, I would not be interested

54%

OPPORTUNITIES FOR PUSH AND CHECK-IN

Yes, I use Check-inServices

38%

Yes, I would share my loca-tion for a discount

No, I would not share my location

45%

55%

Check in services or sharing location for a reward/discount/deal at the store Among Mobile Shoppers

Have you used a retail app to alert you about coupons/deals based on your location (push notifications)?

Among Mobile Shoppers

Source: Custom Mobile Retail Advisor Survey April 2012

21Proprietary and Confidential

CASE STUDY

22

Technology increasingly influences offline purchases

Proprietary and Confidential

• Web–influenced offline commerce is a more attractive segment than e-commerce

• Success will be in ability to prove attribution

• $700 Billion opportunity

“Web2Local”of purchases are determined before a customer leaves the home80%

Mobile Influence in Food/Beverage Bringing Content to Context

Smartphoneshoppingadoption

Frequency ofuse by store

Mobileinfluence

factor (2012)

Projectedinfluence

factor (2012)

35% 58.2% 5.7% 18.7% - 23.0%

23

Stubb’s is a “Craft” brand competingagainst “Kraft”-size companies• Stubb’s is the #1 premium, all natural BBQ

sauce and marinade brand – #6 BBQ sauce and #3 Marinade– Surrounded by large CPG brands

• Stubb’s is available on shelf at leading retailers nationwide (86% ACV)

• Stubb’s consumer is higher income (HHI + $75K), educated, with families. Also lead an active and healthy lifestyle.

• Stubb’s consumer is highly loyal - ranked 2nd in category

• Stubb’s brand awareness is low compared to big brand

24

Stubb’s Opportunity

Opportunities• Increase trial and

brand awareness• Highlight

differentiators• Test market new

product ideas

Can We Use Technology?

• Live in a forward looking city• Every mom has a

smartphone

Find theRight Partner

• Collaboration• Constant Iteration

FOTT is the most comprehensive meal planning app

• Helps Mom through the entire cooking process– New recipe discovery– User’s existing recipes– Local store savings– Discover personalized recipes– Create meal plan– Build shopping list

How FOTT does it• Own the entire meal planning funnel• Can place shopper marketing content so it doesn’t feel like advertising

Proprietary and Confidential 26

What should I make?

Is this good or me?

What’s on sale?

Where do I find…?

What can I make with this?

Where’s my list?

I want the one on sale…

We are out of…Planning

Shopping

27

Case Study: Campaign ElementsRecipe

Preference Sponsored Recipe

Category Branding and Promotion

on Grocery List

28

Case Study: Grew market for barbecue sauce recipes

Details• Campaign targeted a

statistically significant number of mobile users across 2006 stores in 8 grocery chains from 7/3/12 – 7/23/12

Proprietary and Confidential

Results • 260% increase in number

of users adding BBQ sauce recipes to their meal plans

• 25% increase in the number of BBQ sauce recipes added per user

Increase in BBQ Sauce recipes added335%

(compared to non-promotional stores)

29

Trial & Review: New, Seasonal Stubb’s GreenChile Marinade• Stubb’s is testing seasonal

product concept• Used part of FOTT’s Consumer

Panel for Trial and Feedback– Oversubscribed in an hour– 100% completion rate– 7 day turnaround

• Feedback on Stubb’s Facebook page and FOTT recipes– 26 photos– 19 Facebook posts– 21 recipe/product reviews

What’s Next: The Evolution of Collaboration

• Traditional retailers insist promotions be a specific time, implying the same seasonality for every region

• Extend promotional calendar by target consumers based on true seasonality

Target byTrue Seasonality

Target Retailer at the Store Level

• NEW Stubb’s Spice Rubs are only available in select stores at certain retailers

• Promote Rubs only to consumers at that store

80º

JulyJanuary

PHXBOS PHXBOS

Panel Testing New Concepts

• Stubb’s is creating new seasonal products as well as other new products

• Use Food on the Table’s consumer panel to test new products before they’ve even hit the bottle

31Proprietary and Confidential

CASE STUDY

Technology is Reshaping…

• Consumer wants, needs, expectations• Shopping behaviors• The retail experience• How brands plan and execute shopper

marketing initiatives

CPG Brands are Accustomed to Planning Across the Path to Purchase

Digital Path to Purchaseand the Mobile Mediator

Need/Desire Options

Contextually-Relevant Choice

Navigate ‘Store’

Select & ValidateBuy

Brand Experience

Capture Experience

Share / Advocate

Identification of growth opportunities emerge from the intersection of 4 “lenses”

Shopper Category

What are the retailer’s strategic priorities and growth drivers?

What is most important to the shopper or consumer?

What are ConAgra’s strategic priorities and growth drivers?

What segments are growing (Products, Price Tiers)? What gaps exist?

35

Retailer

Frozen Activation Opportunities / Strategic Levers

36

• Low conversion between Frozen & GM

• Focus on GM during Season

• Perception of less variety

• Perception of complex, time-consuming aisles

• Perception of higher prices

EXPANDING THE MEANING OF VALUE

Make Your List & Earn Points

Manage Points, Redeem & Track

Building value into the Marketing

DELIVERING ASSORTMENT WITH DIGITAL

Expanding Consumer Views on Product Offerings

DRIVING SHOPABILITY WITH A DIGITAL DESTINATION

DRIVING BRAND ENGAGEMENT IN UNEXPECTED PLACES

DRIVING IMMEDIATE ENGAGEMENT & GM CONVERSION

Use the 4 Lenses

Shopper Category

Retailer Brand

QUESTIONS?

LET’S GET OUR HANDS ON,ON.

master track a: the store is changing: how emerging technologies are redefining the shopping...

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