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Social Media & Retail Industry in the US
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Social Media & Retail Industry in the US

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This presentation shows how the big retailers in US are performing in the Social Media space and how they can leverage the power of social media to grow its business

This presentation shows how the big retailers in US are performing in the Social Media space and how they can leverage the power of social media to grow its business

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Social Media & Retail Industry in the US Presentation Transcript

  • 1. MULTI BRANDED OUTLET RETAIL INDUSTRY IN US HOW MULTI BRANDED OUTLET RETAILERS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS © InRev Systems 2011 1
  • 2. AGENDAB 1 1. INDUSTRY OVERVIEWB 2 1. WHY SOCIAL MEDIAB 3 1. PROFILE OF MAJOR PLAYERSB 4 1. SOCIAL MEDIA INDEX 5 1. RESEARCH FINDINGS © InRev Systems 2011 2
  • 3. INDUSTRY OVERVIEWMarket Overview Retail Segment Share in US 2008• Retail sales in the U.S. (total Motor Vehicle & Parts retail sales include the Dealers Furniture & Hole Furnishings categories of Electronics & Appliances gasoline, automobiles, and food 10.26% Store 17.97% Building Materials & Garden service, as well as merchandise) 6.74% Equipments 2.66% 2.39% totalled an estimated $4413 2.52% Food & Beverages Stores billion in 2009 13.51% 7.33% Health & Personal Care Stores Total Retail Sales(in $ billion) 1.99% Gasoline Stations 4.89% 13.32%4450 10.85%5.57% Clothing & Accessories4400 Sporting Goods, Music &4350 Book Stores General Merchandise Store4300 4413 Miscellaneous Store4250 4281 Retailers4200 Clothing & Accessories Non Store Retailers 2008 2009 in 2008 – 215.8 US$ bn Food Services & Drinking Places Source: Plunkett Research Ltd © InRev Systems 2011 3
  • 4. WHY SOCIAL MEDIA (1/4)NEED Brand loyalty will become vital as Threat from Specialist consumers move towards premium (Exclusive) Retailers is products, and exclusive outlets for such increasing as they brands will discourage them from visiting increase their presence department stores instead of an exclusive throughout the country outlet, where they can see more product variety under the same brand Large no of MBO SOCIAL MEDIA Multi Branded Outlet (MBO) Retailer Category RETAILER needs to move to high brand awareness region by ENGAGING WITH CUSTOMERS MORE THAN EVER The bigger your brands share of the online conversation, the bigger its Single SPECIALIST share of the market is likely to be Category RETAILER Low Brand Awareness High Brand Awareness © InRev Systems 2011 4
  • 5. WHY SOCIAL MEDIA (2/4)NEEDDissonance-reducing buying behaviour occurs when the Complex Varietyconsumer is highly involved but sees little difference Buying Seekingbetween brands. After making a purchase under such Behavior Behaviorcircumstances, a consumer is likely to experience thedissonance that comes from noticing that other brandswould have been just as good, if not slightly. MultiBranded Outlet Retailers belong to this category MBO Dissonance- Retailers Habitual ReducingAs such Word of Mouth is very important for MBO Buying Buying BehaviorRetailers Behavior A great strength of social media is that it encourages word-of-mouth marketing of your brand. In an environment in which potential customers trust the recommendations of friends far more than those from the media, good word-of-mouth buzz about your brand can be invaluable © InRev Systems 2011 5
  • 6. WHY SOCIAL MEDIA (3/4)POWER CREATE fan pages to post contact information, recent updates, and most importantly allow “fans” and the Company a means of communication on the main page and through the implementation of discussions on the fan page DEVELOP catchy and clever ways to express the most recent company information. Consumers can share recent experiences with the company, as well as recommend potential product ideas and innovations UPLOAD and share videos and educate your customers with awareness and videos showcasing what your Company truly is and what your brand image is CONNECT the staffs of your Company and RECRUIT the best talents in the industry in this most professional social networking site © InRev Systems 2011 6
  • 7. WHY SOCIAL MEDIA (4/4)POWER If the retailer can identify the characteristics of the target consumer, recognize the type of risk Reassurance associated with the product category and the way by which the consumers Expensive Brand handle the perceived risk, appropriate positioning strategies can be developed for Rely on Store Image specific brands Different segments of consumers for Go for Brand Image different categories of products undergo different types of decision Be Brand Loyal processes Seek Information There is no shortage of information. Social Networking Sites such as Facebook provide access to site demographic and Perceived Risk of Customers behavioural information © InRev Systems 2011 7
  • 8. PROFILE OF MAJOR PLAYERS (1/4) Patio Home Store Women Men Kids Baby JCP Teen Shoes Handbags & Accessories Jewelry & Watches ClearanceSocial Media Ranking : Calculated based on the interactivity level of the HealthCare Centers in Facebook, Twitter, LinkedIn, YouTube and Blogs 2.9 JCP has 1,749,856 fan base in Facebook and 4.2 it use the social media for engaging 3.85 continuously with customers; providing the facility to shop 3.975 online through Facebook page too0 2 4 JC Penney Facebook Page © InRev Systems 2011 8
  • 9. PROFILE OF MAJOR PLAYERS (2/4) Designer Collections At Home & Gifts Women Men Juniors Baby & Kids Beauty & Fragrance Shoes Handbags & Accessories Weddings SaleSocial Media Ranking Nordstrom tries to 4.1 connect to its customers by 3.8 regularly updating their blogs on various topics such 4.9 as Beauty, Style, Fashi 4.3 on, Food, Hobbies, etc.0 2 4 Nordstrom Blog © InRev Systems 2011 9
  • 10. PROFILE OF MAJOR PLAYERS (3/4) For the Home Bed & Bath Women Men Juniors Kids Beauty & Fragrance Shoes Handbags & Accessories Jewelry & Watches SaleSocial Media Ranking Macy’s use YouTube 5 to promote their own reality show 3 “Macy’s Million Dollar Makeover” which is a target to 4.25 attract women to buy and shop at 4.45 Macy’s0 2 4 Macy’s YouTube Channel © InRev Systems 2011 10
  • 11. PROFILE OF MAJOR PLAYERS (4/4) Appliances Automotive & Baby Beauty Bed, Bath & Tires Home Books & Clothing Electronics & Fitness & Home Magazines Computers Sports Services Jewelry & Lawn & Music, Movies & Office OutdoorSocial Media Ranking Games Watches Garden Products Living Replacement Shoes Tools Toys & Games Clearance Parts 4.5 Sears has 78891 followers in Twitter 4.2 and it gas been using twitter for announcing its 4.05 promotional deals and offers 3.7250 2 4 Sears Twitter Page © InRev Systems 2011 11
  • 12. SOCIAL MEDIA INDEX (1/2)SOCIAL MEDIA GRADES is calculated based on the interactivity level ofthe mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs.It shows how active the mixed retailers are in the social media spaceNo of Channels represents the number of social networking sites aMBO retailer is present in Retailers No of Channels Social Grades NORDSTROM 5 4.16 MACY’S 4 3.82 SEARS 4 3.65 JC PENNEY 5 3.45 © InRev Systems 2011 12
  • 13. SOCIAL MEDIA INDEX (2/2) 4.5 4 3.5 3Interactivity Level 2.5 2 1.5 1 0.5 0 0 1 2 3 4 5 No of Channels Social Engagement Graph: Interaction Plot of Retailers in the Social Media Space © InRev Systems 2011 13
  • 14. RESEARCH FINDINGS (1/7)BRAND AWARENESS: Online conversations are happening about your brand right now. The Chartshows the number of conversations across web Nordstrom is the most talk about brand in the social media with 3650 conversations within a period of 10 days. Sears should be concerned about the recent spike in its negative sentiment © InRev Systems 2011 14
  • 15. RESEARCH FINDINGS (2/7)BRAND SENTIMENT: Positive conversations inevitably mean positive sales results, and eventhe discovery of negative sentiment presents an opportunity for a brand advocate to step in andtry to change the tone of the conversationMacy’s is the most hated brand amongthe four MBO retailers while Nordstromand JC Penney does good in this regard JC Penney Nordstrom Macy’s SearsPositive Sentiment % 64.2% 68.1% 55.9% 54.8%Negative Sentiment % 6.6% 8% 15.9% 11.7% © InRev Systems 2011 15
  • 16. RESEARCH FINDINGS (3/7)COMPARE the demographics – age group of your brand talkers with competitors Macy’s is patronize highly by teens while Sears by middle age people; both JC Penney and Nordstrom are famous among younger people © InRev Systems 2011 16
  • 17. RESEARCH FINDINGS (4/7)COMPARE the demographics – location of your brand talkers with competitors JC Penney should be concerned about its less buzz in the US. The talk about JC Penney is almost negligible while Sears & Nordstrom are doing quite strong © InRev Systems 2011 17
  • 18. RESEARCH FINDINGS (5/7)COMPARE the SOURCES of messages about your Brand with Competitors JC Penney is the only MBO Retailer which is more stronger in Facebook than in Twitter. Macy’s has the highest absolute presence in Twitter © InRev Systems 2011 18
  • 19. RESEARCH FINDINGS (6/7)INDUSTRY INTELLIGENCE There are 5821 mention of the keyword “Sports Apparel” in the social media within a period of 2 weeks alone Tracking the keyword “Sports Apparel” in Simplify360 Twitter Demographics shows 26-35 age’s Majority of talkers about Sports Apparel population most active in the conversation are from Chicago region followed by 36-45 age group © InRev Systems 2011 19
  • 20. RESEARCH FINDINGS (7/7)INDUSTRY INTELLIGENCE There are 3504 mention of the keyword “Winter Apparel” in the social media within a period of 2 weeks alone Tracking the keyword “Winter Apparel” in Simplify360 Understand Consumer Insights and Conversation like the one above shows Industry trends which will help you to the lack of supply of winter apparels and greatly improve your Retailers could stock more inventories marketing, research, communications and, ultimately sales © InRev Systems 2011 20
  • 21. Start Using Simplify360 TodayFor Details, Visit - Or Send a Mail to -http://simplify360.com/ david@in-rev.comhttp://simplify360.com/blog/ VP - Sales, http://www.facebook.com/simplify360 InRev Systems @simplify360 © InRev Systems 2011 21