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Digital Marketing in F&G 2012
 

Digital Marketing in F&G 2012

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Digital media encompasses all forms of communication that are delivered using a binary electronic format, utilising technology such as computers, mobile devices and tablets. The digital media ...

Digital media encompasses all forms of communication that are delivered using a binary electronic format, utilising technology such as computers, mobile devices and tablets. The digital media landscape ranges from text messages, e-mail and social media to internet websites, smartphone applications – and more. Internet connected devices form the backbone of many forms of digital media, and underpin the huge growth in electronic and mobile commerce, and social media.
The advent of digital media and digital marketing can now help facilitate a greater number of touch points with the consumer in shopper mode, making the concept of the path to purchase extending beyond the store environment of even greater importance. Digital marketing introduces the opportunity for FMCGs and retailers to more readily communicate with consumers as shoppers both before, during and after their visit to the supermarket.
This report will:
-Look at digital marketing strategies currently in use
-Show current levels of smartphone ownership
-Look at the different types of delivery in digital marketing, and see which shoppers prefer
-Look in-depth at a variety of initiatives used on smartphones. Specifically looking at: online shopping, shopping lists, detailed product information, price comparison, recipes, digital vouchers, managing loyalty points, healthy eating and improving the in-store experience
-Find out the awareness, usage and appeal of each of the above, and methods of delivery preferred
-Find out the level of ownership and usage of various grocery apps
-Briefly look at how shoppers interact with social media and what they think of NFC in grocery

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    Digital Marketing in F&G 2012 Digital Marketing in F&G 2012 Presentation Transcript

    • Evolution Insights: Shopper Insight Series Digital Mobile Marketing in UK Food & Grocery 2012 – SAMPLE EXTRACT Essential Shopper Insight into the use of Digital Mobile Media & Mobile Commerce Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com www.evolution-insights.com 1
    • Disclaimer Please note No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd. The content of this report is based on information gathered in good faith from both primary and secondary sources and is believed to be correct at the time of publication. Evolution Insights can however provide no guarantee regarding the accuracy of this content and therefore accepts no liability whatsoever for any actions taken that subsequently prove incorrect. © Evolution Insights Ltd 2012 www.evolution-insights.com 2
    • About Evolution InsightsEvolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespokeresearch for manufacturers, retailers and agencies. Our research and analysis helps • Evolution offer a range of products & services for clients develop targeted shopper clients in the field of shopper research:- marketing initiatives designed to • Off-the-shelf research influence shoppers at the point of purchase. – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our We use a range of research regular shopper research projects in advance of publication, tailoring the methodologies to discover genuine scope to suit your needs insights. Our research incorporates a broad spectrum of robust • Bespoke Consulting qualitative and quantitative research techniques. – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects As a leading publisher of shopper – helping to better inform and shape research, we are ideally placed to any further research requirements. offer your business actionable shopper insight. Further information is available at our website http://www.evolution- insights.com Visit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues www.evolution-insights.com 3
    • ContentsKey Findings and Summary 6 Push Vs. Pull 37 When Shoppers Prefer to Receive Marketing Messages 38Digital Mobile Marketing: Introduction 11 Summary 39Introduction 12Path to Purchase 13 Price Comparison 40Benefits 14 Introduction 41M-Commerce 15 Technology Usage 42Current Statistics 16 Using a Smartphone – Awareness & Usage of Initiative 43Shopper Marketing Initiatives 17 Using a Smartphone – Appeal 44Methods of Reach 18 Push Vs. Pull 45 When Shoppers Prefer to Receive Marketing Messages 46Digital Technology at a Glance 19 Summary 47Introduction 20PC/Laptop Ownership & Usage 21 Recipe Ideas 48Tablet Ownership & Usage 22 Introduction 49Ownership of Smartphones – Year-on-year Change 23 Technology Usage 50Ownership of Smartphones - Demographics 24 Using a Smartphone – Awareness & Usage of Initiative 51Smartphone Usage 25 Push Vs. Pull 52Marketing Relevance 26 When Shoppers Prefer to Receive Marketing Messages 53Location-Based Marketing 27 Summary 54SMS and Email 28Method of Receiving Marketing Messages 29 Digital Vouchers & Coupons 55Summary 30 Introduction 56 In Action 57Digital Marketing Initiatives Technology Usage 59Online Shopping 31 Using a Smartphone – Awareness & Usage of Initiative 60Introduction 32 Using a Smartphone – Appeal 61Technology Usage 33 Push Vs. Pull 62Using a Smartphone – Awareness & Usage of Initiative 34 When Shoppers Prefer to Receive Marketing Messages 63Using a Smartphone – Appeal 36 Summary 64 www.evolution-insights.com 4
    • ContentsProduct Information 65 Summary 93Introduction 66Technology Usage 67 In-store Experience 94Using a Smartphone – Awareness & Usage of Initiative 68 Introduction 95Using a Smartphone – Appeal 69 In Action 96Push Vs. Pull 70 Using a Smartphone – Awareness & Usage of Initiative 97When Shoppers Prefer to Receive Marketing Messages 71 Using a Smartphone – Appeal 99Summary 72 Summary 100Loyalty Points 73 Mobile Apps 101Introduction 74 Introduction 102Technology Usage 75 In Action 103Using a Smartphone – Awareness & Usage of Initiative 76 Current Retailer Apps 104Using a Smartphone – Appeal 78 Ownership & Usage 105Push Vs. Pull 79 Summary 112When Shoppers Prefer to Receive Marketing Messages 80Summary 81 NFC 113 Introduction 114Shopping Lists 82 The Future of Mobile Advertising 115Introduction 83 Awareness & Usage 116Technology Usage 84 Uses in Food & Grocery 117Using a Smartphone – Awareness & Usage of Initiative 85 Summary 118Using a Smartphone – Appeal 86Summary 87 Social Media 119 Introduction 120Healthy Eating 88 In action 121Introduction 89 Interaction with Retailers 123Technology Usage 90 Benefits of Interaction with Retailers 124Push Vs. Pull 91 Summary 125When Shoppers Prefer to Receive Marketing Messages 92 Methodology 126 www.evolution-insights.com 5
    • This Report…All the information in this report relates to main Food & Groceryshoppers who own a smartphone.Please note…All of the information provided is in relation toprimary household food & grocery shoppers whoown smartphones!! www.evolution-insights.com 6
    • Digital Mobile Marketing: Introduction Although we will touch on other forms of digital marketing, the majority of this report will focus on mobile marketing (i.e. the use of smartphones). Smartphone Digital media encompasses all forms of communication apps can offer that are delivered using a binary electronic format, shoppers utilising technology such as computers, mobile devices the latest and screens. Digital media lies in contrast to traditional personalised forms of mass media such as analogue radio and coupons, television, print (newspapers and magazines), signs and offers and banners. points rewards The digital media landscape ranges from text messages,Smartphones bring digital based on their e-mail and social media to internet websites,media such as e-mail,websites and apps to mobile shopping smartphone applications – and more. Internetdevices habits and connected devices form the backbone of many forms of location digital media, and underpin the huge growth in electronic and mobile commerce, and social media in recent years. Digital marketing in food and grocery is quite simply the E-mail remains marketing of brands and retailers to consumers using one of the most popular forms digital media channels. Importantly - digital marketing of digital media shares all the same characteristics as traditional for push marketing. It is just marketing delivered using digital marketing channels and should not be considered in isolation from traditional marketing. www.evolution-insights.com 7
    • Digital Mobile Marketing: Benefits Shopper marketing Engage more There are strong opportunities traditionally focuses on directly with for digital shopper marketingmarketing actually in the consumers as in food & grocery. E-mail, SMS, retail environment. shoppers websites and smartphone Initiatives seek to target Influence outside the applications can enable shopping list store Reachthe consumer in shopper targeted, personalised and basket shoppers who mode while they are in before the use traditional marketing messages reach the the store, and are shopper enters media less grocery consumer in shopper designed to influence the store mode, both inside and outside their decision making of the supermarket.process up to the point of purchase. Drive brand Improve consideration shopper and loyalty involvement and use of Benefits through targeted loyalty vouchers and schemes offers Improve Capture response rate shopper and ability to preferences & Moreover, since digital measure return habits via opt shopper marketing allows for on investment Break down in schemes improved targeting of the ‘marketing is intrusive’ shoppers, the results - and barrier with ultimately the return on improved investment - are often easier personalisation to measure. www.evolution-insights.com 8
    • Digital Marketing: PC/Laptop Ownership & Usage It is interesting to understand the ownership and usage of other types of technology. Here we can see that the vast majority of smartphone owners also have a computer at home.Ownership and usage of PC/Laptop bysmartphone owners: Use regularly for an increasing number of tasks Use frequently 15 77 Only use for basic 4 tasks 2 2 Don’t own and not Only 4% of considering smartphone owners 4% don’t own a Don’t own but PC/Laptop would like www.evolution-insights.com 9
    • Digital Marketing: Ownership of Smartphones – Year-on-year ChangeSmartphone ownership is seeing a steep increase year-on-year. We expect this trend to continue as tariffs becomecheaper and contracts come up for renewal.Smartphone ownership: Year-on-year changes 60%* of 47% of shoppers 37% of shoppers own a shoppers own a smart- own a smart- phone smart- phone phone 2010 2011 2012 *who are primary food & grocery shoppers www.evolution-insights.com 10
    • Recipe Ideas: Push Vs. PullSmartphone have all kinds of uses for cooking – recipe ideas, timers, ingredient lists, share ideas, cooking instructions,sharing photos, etc. Push refers to Pull refers to shoppers information being actively seeking out delivered to a information on their Smartphone without smartphone, through a request from the marketing channel. shopper. PUSH PULL 21% - Push 40% - Pull www.evolution-insights.com 11
    • Mobile Apps: Ownership & UsageHere we can see the ownership and usage of the Ocado shopping app amongst smartphone owners. 29% Frequently 37% Occasionally Have app 17% 15% Rarely Don’t have app 83% 20% Never Ownership Usage www.evolution-insights.com 12
    • Social Media: In action The proportion of the UK population to have a Facebook account is reaching 50%, with the highest user group being the 25-34 year olds. Twitter users arent far behind with an explosion up to 26 million in the UK, up from 12 million last year. Social media is having an ever increasing Facebook fans: (million) influence on how people shop, leading to the rise of the ‘social shopper’ (social media guided shoppers). 51 78% expect Currently, a quarter of all FMCG brands to have purchases are made with the influence an active Spent over $1bn on of social media, and is set to rise. Twitter feed digital promotion 9 Recent studies have found that ‘social shoppers’ spend on average 27% more than those without digital mobile devices. Retailers and FMCG’s are racing 37% of shoppers to up their social media game with an access a stores ever increasing portion of their social media site advertising budgets being spent on 41% of digital channels, with a bid to strengthen shoppers shoppers connection with their brand. expect to Social media is used to gain a multitude receive of information from what people this of special you/your product, trends shoppers are76% rely on recommendations offers in interested in, and general attitudes andfrom friends when making return for opinions.purchases compared to 15% who following arely on advertising brand on Facebook www.evolution-insights.com 13
    • Methodologywww.evolution-insights.com 14
    • Methodology Evolution carried out a preliminary survey ofEvolution’s methodology 100 shoppers , to test questions for the main survey. Detailed secondary and desk research was conducted to define the digital shopper Secondary and desk Preliminary marketing landscape, macro drivers and research quantitative survey trends, scope and examples of initiatives to date. Initial insights gained were used to help further design the main survey. The main survey was completed by 1,044 UK adults who said they regularly shop for food Main quantitative & grocery and own a smartphone. Focus groups survey Comprehensive and detailed assessment of all the data received was then used to discover insights. Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary Insights databases, national statistics, news and industry resources. Evolution’s consultants also maintain close relationships with industry figures across retailers and manufacturers. www.evolution-insights.com 15
    • Methodology: quantitative surveyTopics of questions in quantitative survey Detailed shopper insights were gained from Demographic profiling a survey of 1,044 UK adults who say they regularly shop for food and grocery and own a smartphone. The samples were fully Ownership and usage of technology representative of the UK population. The survey contained 35 questions relating to technology ownership and usage; Main supermarket retailer used for grocery shopping awareness, usage & appeal of digital shopper marketing initiatives, and methods of reach – in addition to standard demographic profiling questions. Awareness, usage and appeal of a variety of different digital shopper marketing initiatives in food and grocery The questions were designed to give maximum insight into shoppers perspective on their awareness, usage and appeal of Perspectives on preferred location and timing digital shopper marketing initiatives in food and grocery. The survey was carried out online during General perspective on the use of digital media for food & grocery marketing October 2012. Themes including personalisation, disclosure of information, push versus pull marketing and location based marketing www.evolution-insights.com 16
    • Glossarywww.evolution-insights.com 17
    • Glossary3G – Third generation mobile phone network capable of improved data connectivity On-the-go – Buying any food and/or drink for immediate consumption, i.e. outside the2G – Second generation (GSM) mobile phone network technology homeABC1C2DE – Socio demographic profile using job type (if applicable). Personalisation – Targeting of marketing campaigns to individuals based uponAbove the line (ATL) – Advertising using the main 5 media types of television, press, detailed information about their demographic and shopping habitsradio, cinema, and posters to promote brands. POP – Point of purchaseApp – A smartphone application POS – Point of saleAR – Augmented reality POS Material– Marketing communications at the point of sale.Below the line (BTL) – Advertising using non-media communication. Typically sales Push delivery – delivery where content is sent to the recipient without theirpromotions as short-term incentives, largely aimed at consumers in-store. interaction at the time of deliveryBig Four – The largest four grocer retailers in the UK by market share. Pull delivery – delivery where content is requested by the recipient reactively.Category driver – key influences driving the growth of any given category QR code – Quick response code (new form of 2D barcode that carries moreChannel – Retail distribution type for example supermarket, c-store, CTN information)Circumstances – The circumstances of the shopper when they undertake their shop Revenue – Total reported turnover (excluding VAT).Demographic – Characteristics of the population (including sex, race, age and ROI – Return on investmentincome). Shopper marketing – Any marketing activity aimed at the shopper throughout theirDigital media – digital marketing medium for example social media, mobile, digital path to purchase.signage. Shopper mission – the reason/purpose of the shopping trip from the shopper’sDigital shopper marketing – Shopper marketing that utilises digital media perspective.DSM – Digital shopper marketing Smartphone – An internet enabled mobile phone device that runs applicationsEAN – European Article Number (barcode standard) (‘apps’).E-commerce - buying and selling of products or services over electronic systems such SMS – Short message service (mobile text messaging)as the Internet and other computer networks Socio-demographic - Characteristics of the population (including sex, race, age andePOS – electronic point of sale system, e.g. checkout technology income).EDLP – Everyday low prices. Social network – electronic social interaction platform for example Facebook, TwitterFMCG – Fast moving consumer goods, often used to refer to a manufacturer. URL – Uniform resource locator (web standard for internet website addressing)Food and grocery - Foodstuffs and various household suppliesGondola end - The promotional position at the end of a main aisle.GPS – global positioning system (technology incorporated into mobile devices forgeographic location identification and tracking)Impulse – A sudden wish or urge that prompts an unplanned act or feeling.Location based delivery – delivery of marketing to mobile devices based upon GPSlocationM-commerce - buying and selling of products or services over mobile electronicsystems such as the smartphonesMicrosite – Internet website dedicated to a particular brand, using a different(branded) URLModality – The way a shopper behaves in-storeNFC – Near-field Communication www.evolution-insights.com 18
    • Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6035 e-mail: enquiries@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom © Evolution Insights Ltd. All rights reserved 19