Quick Response Codes in Today’s Business Economy Lowes Case Study Group 5INL 631 Mike BevilacquaTechnology Reggie ParksArchitectures Brian PillarSummer 2012July 22, 2012
What is a Quick Response Code?• A QR code is a small bar code that stores data both vertically and horizontally.• Differences between QR coeds and traditional bar codes. 2
History of QR codes• First developed In 1992 by Denso Wave to improve supply chain management. • Picked up by business to improve on a wide variety of business functions. – Inventory management and logistics – Business process improvement – Admitting (healthcare) – Data entry – Promotional material and advertising 3
QR Code Statistics– 6.2% of current smartphone users have scanned QR codes with their smart phone– Approximately 60% was male and 30% was female– About 80% of consumers who scanned QR codes in 2011 were between the ages of 18 and 24, 30% were between the ages of 35 and 54, and 20% were under 18 or over 54.– 28% of QR code scans originated from a printed magazine or newspaper while 20 % originated from product packaging, 16 % originated from websites and, 14 % originated from posters or kiosks 4
How QR Increase Sales• Offers Extensive Marketing• Ties Offline Marketing to online content • Stimulates Location based Activity• Promotes Products and Services• Provides Point of purchase information
QR Hardware/Software• QR Scanning Software for Mobile Devices(Iphones, Blackberry’s, Androids)• Scanning software such as: Scan for Iphone, Optiscan, and I‐nigma) • Hardware: QR Generator
Implementation and Maintenance• In‐house or 3rd party• Goldstein Media LLC• Implementation and Maintenance Costs
Long Term Benefits• “What’s The Beef With QR Codes?”• Educate uninitiated users• Availability of QR Scanners• Ease of use for consumer
Summary• Technology Been Around Since 1992• Businesses Use To Increase Sales• Benefits• Cost Efficient and Easy To Implement• Long Term Benefits and Maintenance
A Case Study: Lowe’s Home Improvement Warehouse• QR Code’s Today• What Lowe’s Can Build On – External Marketing – Internal Operations – Social Media Recognition
A Case Study: Proposal• Start marketing campaign using QR codes on public transportation.• Year 1 create 16 various QR codes, one for each department at Lowe’s and two to link to Lowe’s social media. Double to amount of QR codes every year from years 1‐5.• Start with 5,000 vertical rail adds and grow by 5,000 per year.
A Case Study: Data• Cost per QR code to create $100.• Monthly maintenance $75 (includes unlimited codes)• Cost per rail panel advertisement is $100 per month per advertisement.• 4 new team members will have to be added to preform required internal tasks.
A Case Study: Predictions‐ Estimated expenses associated with Advertising Campaign
A Case Study: Predictions‐ Break Even Analysis‐ Estimated Increase in Marketing Budget
A Case Study: Predictions‐ Estimated return on investment associated with adverting campaign.
Sample advertisement directing customers to Lowess kitchen department
Sample advertisement directing customers to a Lowe’s bathroom remodeling video
Works Cited• BeQRious. (n.d.). Retrieved July 18, 2012, from http://beqrious.com/the‐benefits‐of‐using‐qr‐codes‐as‐a‐ marketing‐vehicle/• Denso Wave. (1021). Retrieved 7 16, 2012, from http://www.denso‐wave.com/en/solution/index.html• Mobile‐Barcodes.com. (2012). Retrieved 20 2012, July, from http://www.mobile‐barcodes.com/about‐qr‐ codes/• Nielsenwire. (2012, March 29). Retrieved July 20, 2012, from http://blog.nielsen.com/nielsenwire/online_mobile/smartphones‐account‐for‐half‐of‐all‐mobile‐phones‐ dominate‐new‐phone‐purchases‐in‐the‐us/• QR Code Guide. (2012). Retrieved July 18, 2012, from http://qrcodeguide.org/• APICS. (n.d.). Retrieved July 19, 2012, from http://blog.apics‐sgv.org/qr‐codes/• Chaffey, D. (2011, September 1). Smart Insights. Retrieved July 18, 2012, from http://www.smartinsights.com/mobile‐marketing/qr‐code‐marketing/qr‐codes‐location‐demographic‐ statistics/• Graham, J. (2011, Octobrer 28). USA Today. Retrieved July 17, 2012, from http://www.usatoday.com/tech/columnist/talkingyourtech/story/2011‐10‐28/qr‐codes/50970554/1• What’s the Beef with QR Codes?” by Ben Baltins • (http://blog.mobileembrace.com/2012/05/whats‐the‐beef‐with‐qr‐codes/) • Date Accessed 7/23/12• Goldstein Media LLC (http://www.goldsteinmedia.com/philadelphia‐web‐design‐services/) • Date Accessed 7/23/12 • Goalcrusher (2011, December 29th) Using QR Codes in Marketing. Retrieved from:• http://www.goalcrusher.com/using‐qr‐codes‐in‐marketing/