Back to School Trends and Observations 2011


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Trends and observations related to back to school including youth audience spending, social and technology habits along with best in class examples.

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  • retailers have taught consumers to wait for the hottest deals
  • Over 60% of parents say their children influence at least half of back-to-school purchases (US NRF BTS trends for 2010)
  • Opportunity for retailers - focus less on mass-marketing efforts and more on personalized messaging and promotions
  • Back to School Trends and Observations 2011

    1. 1. Back-to-School Trends & Observations March 2011 Prepared by: James Powell, Director Insights and Planning Jeff Pontes, Director Digital Strategy
    2. 2. <ul><li>Agenda </li></ul><ul><ul><li>Back-to-school trends </li></ul></ul><ul><ul><li>Back-to-school shoppers </li></ul></ul><ul><ul><li>Back-to-school engagement vehicles </li></ul></ul><ul><ul><li>Best-in-class examples </li></ul></ul>
    3. 3. 1) back-to-school trends
    4. 4. BTS shopping <ul><ul><li>Back-to-school has grown from a pens & paper event into the second busiest shopping season of the year.   </li></ul></ul><ul><ul><ul><li>Canadians spent 34.5B in retail stores in August 2009. </li></ul></ul></ul><ul><li>  </li></ul><ul><ul><li>Of the $10,262 it costs to educate the average Canadian student in 2009 only $4,724 goes towards tuition.  This leaves lots on the table for other 'school related' purchases across the year. </li></ul></ul><ul><li>  </li></ul><ul><ul><li>This insight document takes a look a number of secondary sources in Canada and US to provide you with some high level and directional insights to get you into the spirit of heading back to school. </li></ul></ul><ul><li>  </li></ul>CDN source: CBC August 2010
    5. 5. Spending on BTS is increasing US source: Deloitte's 2010 BTS Survey <ul><ul><li>Canadians planned to spend an average of $621 online and in-store for back-to-school in 2010.  This is up from $600 in 2009. </li></ul></ul>CDN source: VISA 2010 BTS Survey
    6. 6. Back-to-school  starts early
    7. 7. BTS is starting earlier <ul><ul><li>Since 2009, the day after Canada Day marks the un-official start to BTS gear up for retailers  </li></ul></ul><ul><ul><li>48 percent of shoppers start planning a month before the start of the school year and yet 70% do their actual shopping less than three weeks before school starts </li></ul></ul>
    8. 8. Back-to-school  starts online
    9. 9. Shopping starts online <ul><ul><li>55% of Canadian shoppers will look to the Internet for their back-to-school shopping preparations </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Canadians are turning online for better prices (48%), convenience (40%) and better sales and promotions (35%) </li></ul></ul><ul><ul><ul><li>VISA Canada 2010 BTS Survey </li></ul></ul></ul>
    10. 10. New gear, new gadgets
    11. 11. Back-to-School Spending
    12. 12. Back-to-College Spending
    13. 13. 2) back-to-school shoppers
    14. 14. Millenials (15-32) <ul><ul><li>Success is rooted in personal satisfaction, not only material status** </li></ul></ul><ul><li>  </li></ul>Global source: Iconoculture Quant Analyzer
    15. 15. Millenials (15-32) <ul><ul><li>  1 in 5 Millenials have posted a video of themselves online </li></ul></ul><ul><ul><li>  4 in 10 have a tattoo (70% hidden beneath clothing) </li></ul></ul><ul><ul><li>  1 in 4 are unaffiliated with any religion, far more than older generations when they were this age </li></ul></ul><ul><ul><li>Only 32% think gay couples raising children is bad for society </li></ul></ul>US source: Pew Research Centre, 2010 Global source: Iconoculture Quant Analyzer
    16. 16. teens & tweens
    17. 17. teens & tweens <ul><ul><li>The teen & tween population has never known a world without broadband </li></ul></ul>Global source: Collective Intellect 2011 Global source: Iconoculture Quant Analyzer
    18. 18. teens & tweens <ul><ul><li>35% of teens haven't &quot;friended&quot; their parents on Facebook </li></ul></ul><ul><ul><ul><li>Kaplan Test Prep, January 18, 2011 </li></ul></ul></ul><ul><ul><li>93% of tween girls and 91% of tween boys play games online </li></ul></ul><ul><ul><ul><li>, August 19, 2010 </li></ul></ul></ul><ul><ul><li>72% of teens & tweens are active texters </li></ul></ul><ul><ul><ul><li>Pew Research Centre, April 20, 2010 </li></ul></ul></ul><ul><ul><li>Breaking down male/female stereotypes.  Teens and tweens aren't making the same boy-thing or girl-thing judgements </li></ul></ul><ul><ul><ul><li>Iconoculture, January 2011 </li></ul></ul></ul><ul><ul><li>  Men will spend 35% than women on back-to-school merchandise </li></ul></ul><ul><ul><ul><li>Men plan to spend more on electronics, clothing, personal care and dorm decor. </li></ul></ul></ul><ul><ul><ul><li>US Source: National Retail Foundation, Top 2010 BTS Trends </li></ul></ul></ul>
    19. 19. teens & tweens <ul><ul><li>The majority of conversations teens are having in school hallways originate on Facebook </li></ul></ul>CDN source: 2011 DECODING Digital Friends study
    20. 20. Don't forget mom & dad
    21. 21. Don't forget about mom & dad <ul><ul><li>Many students are not along for the ride for BTS shopping.  Promotions and messaging should incorporate, or at least consider, the actual person doing the shopping. </li></ul></ul><ul><li>  </li></ul>
    22. 22. 3) BTS engagement vehicles
    23. 23. Keep it direct <ul><ul><li>Retailers are rewarded for focusing on direct, personalized messaging and promotions. </li></ul></ul>
    24. 24. Mobile is the killer app
    25. 25. Mobile is the killer app <ul><ul><li>Demand for local relevance, in-the-moment social connection, and immediate access to content has quickly migrated mobile devices from third to first screen </li></ul></ul><ul><ul><li>Mobile's role is an ultra-personalized &quot;life remote&quot; and as a status badge to many teens, tweens and twenty-somethings </li></ul></ul><ul><ul><li>Standalone &quot;smart&quot; devices aren't enough, consumers are looking for intelligent networking solutions that connect all their devices together. </li></ul></ul><ul><ul><li>As mobile integration continues to grow expect consumer tension to grow again data caps and as new service providers challenge older pricing models </li></ul></ul>
    26. 26. Mobile is the killer app Global source: Iconoculture Quant Analyzer
    27. 27. Mobile is the killer app US source: Deloitte's 2010 BTS Survey
    28. 28. Let's Get  Social
    29. 29. Everything is now rateable <ul><ul><li>What started off as ratings only on products has now evolved into educators, doctors, service providers, relatives and friends </li></ul></ul><ul><ul><li>67% of high school students rate things through social media </li></ul></ul><ul><ul><ul><li>CDN source: 2011 DECODING Digital Friends study </li></ul></ul></ul>
    30. 30. It's not the size of the network... <ul><ul><li>It's about the size of the core </li></ul></ul><ul><ul><ul><li>Average total network for teens: 380 </li></ul></ul></ul><ul><ul><ul><li>(Average total for people 15 to 35 = 283) </li></ul></ul></ul><ul><ul><ul><li>The core teen network: 43 </li></ul></ul></ul><ul><ul><ul><li>Average number of best friends: 6 </li></ul></ul></ul><ul><ul><ul><li>Average number of close friends: 22 </li></ul></ul></ul><ul><ul><ul><li>Average number of family members: 15 </li></ul></ul></ul><ul><li>  </li></ul><ul><ul><li>Trusted opinions, recommendations and influence come from the core, not from the broader network of &quot;friends&quot; </li></ul></ul>CDN source: 2011 DECODING Digital Friends study
    31. 31. Older students are more active content creators
    32. 32. High Online Activity Does not translate to High Interactions With Brand <ul><ul><li>They don’t want to be your friend on Facebook </li></ul></ul><ul><ul><ul><li>More than half of 12- to 17-year-olds are using social networks to stay in touch with friends* </li></ul></ul></ul><ul><ul><li>They want brands to &quot;speak when spoken to&quot; </li></ul></ul><ul><ul><ul><li>28% of youths expect companies to listen to what they’re saying on social networks and respond if they have questions* </li></ul></ul></ul><ul><ul><li>Social networks are their customer review sites </li></ul></ul><ul><ul><ul><li>15% of young consumers have posted their opinions of a product or service 41 or more times on Facebook* </li></ul></ul></ul><ul><ul><li>The top favourite types of information received digitally from brands are 65% Free stuff, 35% Promotions, 33% Contest </li></ul></ul><ul><ul><ul><li>CDN source: 2011 DECODING Digital Friends study </li></ul></ul></ul>*Source: Understanding the Intricate Digital Behaviors of Young Consumers, March 1, 2011, Forrester Research
    33. 33. I want to be famous... <ul><ul><li>Youth are looking to YouTube to  </li></ul></ul><ul><li>      to get noticed for their talents </li></ul><ul><ul><li>An industry supporting amateur artists </li></ul></ul><ul><li>     in their pursuit is on the rise </li></ul>
    34. 34. Let's Get  Local
    35. 35. Let's get local <ul><ul><li>Almost 80% of location-based service users are male </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Close to 70% of them are between the ages of 19 and 35 </li></ul></ul><ul><li>  </li></ul><ul><ul><li>70% have college degrees or higher </li></ul></ul><ul><li>  </li></ul><ul><ul><li>38% are buying influencers </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Forrester recommends that gaming, consumer electronics and sportswear marketers should lead the way with testing these apps </li></ul></ul>Location-Based Social Networks: A Hint Of Mobile Engagement Emerges, Melissa Parrish, July 2010
    36. 36. Gamification is the new Web     2.0
    37. 37. Gamification influences consumer behaviour <ul><ul><li>ga-mi-fi-ca-tion: Integrating game dynamics into your site, service, community, content or campaign, in order to drive participation* </li></ul></ul><ul><ul><li>Been around since loyalty programs in the 1800's while technology has now introduced more advanced mechanics (eg. virtual goods) </li></ul></ul><ul><li>  </li></ul>Since humans have a psychological predisposition to engage in gaming it may be applied to anyone *Gamification 101: An Introduction to the Use of Game Dynamics to INfluence Behavior, Bunchball, 2010
    38. 38. Game mechanics fulfill human desires <ul><ul><li>How can your brand capitalize? </li></ul></ul>*Gamification 101: An Introduction to the Use of Game Dynamics to INfluence Behavior, Bunchball, 2010
    39. 39. Status is king <ul><ul><li>Status serves as a form of currency holding a high perceived value within the social circle in which it is held </li></ul></ul>
    40. 40. Price isn't the  only game in town
    41. 41. FREEdom reigns TEEN's respond &quot;I like this brand and have communicated with them digitally .
    42. 42. Make it FUN <ul><ul><li>When talking to consumers in August you are in the middle of their summer break. </li></ul></ul><ul><ul><li>Back-to-school promotions have lots to compete with </li></ul></ul><ul><ul><ul><li>summer vacations </li></ul></ul></ul><ul><ul><ul><li>summer entertainment options </li></ul></ul></ul><ul><ul><ul><ul><li>movies, sports, amusements, outdoors </li></ul></ul></ul></ul><ul><ul><ul><li>time with friends </li></ul></ul></ul><ul><ul><ul><li>summer jobs </li></ul></ul></ul><ul><ul><li>Don't forget to add in the fun factor to your offer </li></ul></ul>
    43. 43. You've got to give to get
    44. 44. You've got to give to get <ul><ul><li>Brand/cause partnerships have evolved into one of the most powerful ways to authentically (re)connect with consumers </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Consumers are looking to go beyond pink ribbons and yellow bracelets to have more meaningful cause connections </li></ul></ul><ul><li>  </li></ul><ul><ul><li>Companies need to show authentic long-term commitments to the cause they algin with and provide deeper engagement (and customer rewards) to build a legacy </li></ul></ul><ul><ul><ul><li>Iconoculture insights </li></ul></ul></ul>
    45. 45. 4) Best in Class
    46. 46.
    47. 47.
    48. 48. Diesel Cam
    49. 49. <ul><li>Facebook Coca-Cola Village Israel  </li></ul><ul><ul><li>3 day event (like VirginFest) using RFID chip tied to Facebook account </li></ul></ul>
    50. 50. <ul><ul><li>5th most “liked” Canadian brand on Facebook </li></ul></ul><ul><ul><ul><li>Behind giants RIM, Tim Horton’s, Budweiser and Telus) </li></ul></ul></ul><ul><ul><li>Launching a game </li></ul></ul><ul><ul><ul><li>Build your own amusement park like Farmville </li></ul></ul></ul><ul><ul><li>Will be incorporating additional games similar to the games found at the park </li></ul></ul>
    51. 51. Thank You Jeff Pontes Director Digital Strategy E-mail: [email_address] Twitter: @jeffpontes Blog: LinkedIn: James Powell Director Insights and Strategy E-mail: [email_address] LinkedIn: