omnichannel marketing 4th summit 2014

By Kestrel Lee

How digital advertising fits in with omni-channel shopper marketing

What We Do Integrated Digital VIP Hospitality

Tournament Management

Golf Hospitality

Sports Activation Press Launches

Product Launches

Conferences Retail Roadshows

Auto shows

Store Openings & Test Drives

Packaging Design Below-the-line Marketing

Retail Shopper Marketing

Multimedia Interactive Campaign Strategy and Planning

Social Media Marketing

Beijing

Shanghai

Taiwan Guangzhou

Hong Kong Across 5 Markets in the Greater China Region

300

Our People

Our Point of View

What and why Omni-channel retail marketing is the answer to China’s ecommerce challenge

Omni-channel or Online to offline consumer marketing?

-  In China O2O has increasingly been viewed as a way to drive brand activation from online to offline channels for lead generation & conversions.

-  For example: Starbucks: https://www.youtube.com/watch?v=p48ZkNKzD64 -  For example: Nippon Paint: http://v.youku.com/v_show/id_XNTg4NDU0MTAw.html

-  For example: British Airways: http://mumbrella.asia/2014/01/british-airways-takes-wechat-chinese-new-year-promotion/

Omni-‐channel marke.ng approach to user-‐centric shopping behavior

Create memorable social campaigns

around brand values to create buzz, raise product awareness and drive lead genera.on

Provide product

content to emphasize the lifestyle, consumer and strategic benefits of using our client’s

brands.

Sampling at stores and road shows for drive to

trial programs

Use social media to drive TA aFer engaging with the brand online,

to buy from ecommerce shops or

actual stores.

Tracking Internet Word-‐of Mouth

(IWOM) and organic search traffic for

brand/ product queries or ecommerce transac.ons.

SPARK SEEK SAMPLE SHOP SHOWROOMING

BLUE = ATL SOCIAL PROGRAM GREEN = POS/SOCIAL/Drive to Trial PROGRAM

6 GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

Omni-‐channel marke.ng approach to user-‐centric shopping behavior

Bought Media (Display, Facebook

Ads) Created Media (Facebook updates).

Bought media

(Search).

Earned media (PR/Blogger Outreach).

Created Media (Digital screens) Owned Media

(Mobile)

Earned Media

SPARK SEEK SAMPLE SHOP SHOWROOMING

BLUE = ATL SOCIAL PROGRAM GREEN = SHOPPER & DRIVE TO TRIAL PROGRAM

7 GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

China’s domestic shopping behavior is now driving its growth of its economy and its brands

Nearly a quarter of Chinese shop on the toilet, and over half admit to shopping while at work. Highly contagious, online shopping is hitting epidemic levels, with over half missing sleep to shop late, and more than one in five saying their shopping addiction is negatively affecting “family harmony”. “Although some of our survey questions were tongue-in-cheek, we cannot overemphasize the importance of online shopping for brands in China,” said Tony Chen, Chief Digital Officer GroupM China. “The top e-commerce sites are no longer mere sales channels, but media in their own right, with hundreds of millions of visitors ripe for brand communication.” - Group M http://www.wpp.com/wpp/press/2014/jun/20/groupm-charts-china-e-commerce-frenzy/ http://v.youku.com/v_show/id_XNzI4NjkwODU2.html

Brand casualties are starting to appear even in growth areas

As the world’s second largest cosmetics market, China market has reached 200 billion Yuan in 2011. Besides, it is also one of the fastest developing markets with a 15% annual growth. National Bureau of Statistics of China also shows that the revenue of above-norm cosmetics enterprises has also reflected the trend. Over 80% of China cosmetics market is dominated by foreign brands. And yet Garnier and Revlon had to leave the market?

Brand casualties are starting to appear even in growth areas

Our Point of View

Why omni channel marketing is necesary

1. E-Commerce and Brand Building Are Colliding in China

Essentially, China’s large and growing middle-class have become accustomed to making frequent e-commerce purchases. Furthermore, as in many longer-standing e-commerce markets, they are also developing brand awareness, an increasing proclivity to purchase high quality and/or individually satisfying products, and showing a commitment to brand loyalty and repeat business: The future development of China’s e-commerce channel is closely linked to technology developments and also the behaviors of Chinese consumers, including the way they research and order products online, and their preference for speed and convenience. - KPMG’s China 360 report: E-commerce in China: Driving a new consumer culture, 14 Jan 2014.

2. E-Commerce growth is offset by economic weakness in traditional Chinese economic drivers

China’s growth in terms on online retail sales grew from 4.3% in 2012 to 6.3% by August 2013.

3. B2C ecommerce has yet to prove itself against B2B ecommerce and C2C ecommerce

l  Government policy to encourage public consumption l  Higher government spending on health care and

pensions encourage households to save less and China has little debt.

l  Rising wages and an ageing population will also shift the balance towards consumption rather than saving.

l  “A massive push to urbanise is also under way, which should produce tens of millions of richer citizens seeking retail therapy. McKinsey, a consultancy, forecasts that consumption by urban Chinese households will increase from 10 trillion yuan in 2012 to nearly 27 trillion yuan in 2022 (see chart 1).”

http://www.economist.com/news/briefing/21595019-market-growing-furiously-getting-tougher-foreign-firms-doing-it-their-way

4. Increasing consumption demand driving desire for more customer touch-points

GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

5. New consumer media habits in mobile, digital, social media are on the rise

6. Media fragmentation is on the rise

Attention span has split. People needed to hear something multiple times from different media sources – to believe anything these days. Most of the time they are getting their news from social media on the brands and products they care about.

SOCIAL OWNED

HYBRID TRADITIONAL

7. Social media marketing is on the wane due to censorship, over-advertising etc

8. Your millennial strategy is also your social and retail strategy

Our Point of View

The Consumer Segment targeted by Onmi-channel marketing

2 Similar Brands in China = 2 Very Different Market Results

l  Adidas gained 11% of the sportswear market compared to Nike’s 12.1%

l  12% rise in fourth-quarter China sales for a 15% climb during the full year

l  Nike is setting up more discount stores to get rid of its inventory which started stockpiling after Beijing Olympics

l  Nike + did not take off in China GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

Retail store counters report that they see more women walking into shop. Anecdotally, tracking of online buzz show "fairly positive" comments written about the campaign, like "This is exactly how I feel", "This encourages me to do sport", "Sports doesn't have to be hard", "This isn't like the brand that I had in mind before"

Adidas Adapted to an Increasingly Sedentary Consumer Segment


McKinsey reports that China's emerging consumer class is more emotional than previous generations of shoppers and firms must shift their marketing strategies to keep pace with them i.e. 51 per cent of city-dwellers by 2020, up from 6 per cent in 2010 http://in.reuters.com/article/2012/09/25/china-economy-consumers-survey-idINL5E8KP0OQ20120925 Group M China’s Dec 2013 Study also stressed the importance of building emotional connections with their consumers. Emotions impact consumers differently with market maturity. Respondents aged 15 to 64 in Tier four cities are the most bonded with brands, citing feel good factors such as 'make me feel more confident and attractive'."

McKinsey: China’s Emerging Millennial Consumer Class Are More Emotional Than Past Generation of Consumers


Pollution, food safety and climate change stand out as major concerns for China’s millennial generation. While China is raising its profile on the world stage, the study notes 88% of Chinese millennials believe their country can effect change in the world, “they care more about improving the world than other generations’. http://www.jwtintelligence.com/trendletters2/#axzz2fowQpbh4

Chinese millennials will form the largest consumer base in China in 2020 i.e. the size of USA’s population


Chinese Millennials Love Brand Experiences That Are Inline with Their Self Expression

China takes 1st place for going online for self-expression and transaction. Australia takes 22nd place for self expression. Mindshare Digital Normal Index 2013.

The Edelman 203 “BRANDSHARE” also shows that the Chinese expects the same from brands i.e. to express their brand heritage beliefs, product development / making approach, product performance, allowing them to co-create with their favorite brands while providing product inputs.


An exclusive look into the China millennial behavior from Edelman's global 8095 millennial study done in 2010 and updated in 2012: http://www.edelman.com/insights/intellectual-property/8095-exchange/

Chinese Millennials Favor and Take Action for Brands With Experiences Different from Their Parents



Chinese Millennial Trust Friends and Search, Not Brands



Chinese Millennial Are Strong Brand Influencers On Friends, Families and Even Elders and Superiors


VIRTUAL ME // REAL ME

“In my real life, I exist as a ‘virtual me.’ I go to work. I try to live up to the expectations and pressures from parents, my coworkers and society. Then, I go home. I open my computer, I put on some music and I start to dance. That’s the real me.” // REBECCA XIA [Without the Internet] I would lose the passion to see the world outside of my parent’s eyes.” // “LIZ,” 22 I would rather be a common person in daily life, but I have to be uncommon online. It’s my own choice. // “CHENG E.T”

Chinese Millennial See Their Online Selves As Their Real Selves


Chinese millennials are open to co-creation and giving product feedback on the brands they like


Chinese Millennial Are Apt to Take Actions on Brands Offline Based on What They Read Online


Source: Tong Ji university

Attract Millennial Shoppers to Increase Your Social Commerce Efforts


Millennial Social & Spending Habits Driving Social e-Commerce




Social Content Drives Brand Preference And Buying Decisions for Chinese Millennials



Millennial Social & Spending Habits Driving Social e-Commerce


Our Point of View

The Consumer Space targeted by Onmi-channel marketing

Our Point of View

Big Data on Designing beyond The Big Idea, Brand Experiences

Starbucks success has inspired many businesses to copy its third space strategy. The next move is the Fourth space strategy. Creating cultural movements for Starbucks fans and

customers by integrating social, in-store, technological and mobile experiences

Integrating retail spaces with millennial consumer behavior is key

IKEA: Third Space for families Nursing area for games, store sleepovers, café rest stop

Starbucks’ 4th space strategy: Drive brand preference via GLOCAL initiatives between Starbuck’s in-store and local culture experiences Starbucks' new Fuzhou store has a Chinese chess (weiqi) theme with pictures of the nearby Fushan mountains built into the store murals. Channeling the ambiance of a thousand-year-old Song Dynasty garden, Starbucks did not ignore Fuzhou's pervasive cultural norms by embracing Fuzhou's historic ambiance and classical Chinese architectural themes.

Starbucks’ 4th space strategy: Integrate social and mobile experiences into the in-store experience to drive traffic and social engagement -  The best global digital practices is not to treat social and mobile as standalone channels to a brand’s experience

but to integrate them.

-  Mobile, social and in-store experiences overlap at Starbucks, especially since 50% of Weibo users access WIFI at Starbucks’ stores via their smart phones. Conversion opportunities arise from campaign with an integrated customer journey from store to online and mobile

How Online-to-Offline is working out for luxury brands

How Online-to-Offline is working out for F&B brands

THAT’S NOT ALL. OMNI CHANNEL MARKETING IS RESHAPING RETAIL MARKETING VIA BIG DATA. MULTI-CHANNEL MARKETING ONLY WORKS WHEN ALL CUSTOMER DATA IS COLLECTED TO A SINGLE INTERFACE FOR ANAYSIS, REPORT AND TRACKING. IN THIS WAY, YOUR CUSTOMER DATA HAS BECAME BIGGER, INSTEAD OF BEING SEGMENTED TO DIFFERENT SILOES.

OMNI CHANNEL MARKETING IS RESHAPING RETAIL MARKETING VIA BIG DATA

From 2013 onwards, Gucci has decided to not open too many new shops in China in new cities, but to renovate and expend the existing ones, to raise customer service standards, creating VIP events, and creating new promotions. So how is it going to do that? Reference:https://www.youtube.com/watch?v=3Vg5idj_590

BIG DATA RESHAPING RETAIL MARKETING

1. BIG DATA ALLOWS US TO CONNECT AT SCALE STARBUCKS REFERENCE: https://www.youtube.com/watch?v=MSLCCsncJEU



BIG DATA ALLOWS US TO CHANGE PUBLIC PERCEPTIONS RICE CODE REFERENCE: http://v.youku.com/v_show/id_XNzQwMTIxNTA4.html



BIG DATA ALLOWS US TO CONTROL THE NEWS RICE CODE REFERENCE: http://v.youku.com/v_show/id_XNzQwMTIxNTA4.html

Adidas wants to own those stories. It wants to ensure that its brand is front and centre of its audience’s minds as and when the action unfolds in Brazil and it wants to be central to the successes of its athletes, as it was when Andy Murray ended that long, long wait for a British Wimbledon champion. ‘Newsjacking’ other people’s news isn’t enough. GPJ Experience Marketing proprietary and strictly confidential. Copyright reserved 2014.

Our Point of View

Omni-channel marketing are best driven by emotional impulses

Need to create social/emotional relevance into such experiences to create brand advocates and drive word-of-mouth.

Once a product is known for being reliable, functional and usable, what’s next?

Creating Emotion-based Marketing in the age of digital

How?

What?

Why?

“People don’t buy what you do, they buy why you do it”

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

Inspired by Simon Sinek.


Emotional stories ignite integrated communications programs by answering ‘why’ – why should people care (emotional trigger) and then why should people share (motivations). Crafting campaigns based upon an emotional insight gives us the best chance to scale via earned/traditional media – which is at the center of every great digital campaign (e.g. Sketches, World’s Greatest Job etc).

INTEGRATING PAID, OWNED & EARNED MEDIA

DHL China created a retail experience using World Cup Fever

http://v.youku.com/v_show/id_XNzQwMTIzNjQ0.html http://v.youku.com/v_show/id_XNzQwMTIzODE2.html

Campaign introduction: http://v.youku.com/v_show/id_XMzM3NTM3MzAw.html

1 Dove Art Project Mars / Dove Chocolates (China)

2 3-year itch campaign Continental Tires (China)

Campaign introduction: http://v.youku.com/v_show/id_XNTY4MTMyMDA4.html

3 Spare Space, Spread Love Johnson & Johnson (China)

Campaign introduction: http://www.damndigital.com/archives/74205

Creating Emotion-based Marketing Through Social Purpose Branding


Please Consider this document proprietary and strictly Confidential. The Concepts, methodology and information produced by George P. Johnson (A Project: Worldwide Agency) and Contained in this document shall not be used or adapted in any form,

either in part or as a whole without the written permission of George P. Johnson (A Project: Worldwide Agency). Copyright Reserved 2014.

本文档所述信息须严格保密。文档中所述创意概念、方法、信息属于George P. Johnson (A Project: Worldwide Agency)拥有的知识产权。未经George P. Johnson (A Project: Worldwide Agency)书面允许，均不得以任何形式（无论局部或整体）使用。版权所有 2014年

Please contact us directly if you wish to learn more about GPJ and the Project Worldwide Group of Companies. Joe Wong, Business Director, Integrated Marketing Services (Greater China). E: [email protected]