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Our clients are asking a lot of questions about new media. Which applications resonate with consumers? Which ones will deliver brand equity? Which are fads and which have staying power? Which deliver ROI?... To help answer these questions, we’ve scanned the virtual world to find examples that we think are noteworthy; NOT to suggest they are applications to follow, but simply initiatives that have influenced our thinking. The following report highlights 20 examples that we feel are worthy of your consideration. Some are interesting for their approach, others for their execution. In any event, I think you’ll find them all to be provocative and perhaps help shape your new media strategy. I’d be happy to hear from you if you want to explore this further, or if you’re interested in finding out how Watt International can help you get more people, to buy more things, more often.Research + InsightsConsulting + Strategy Sincerely,Brand Strategy + PositioningDesign + Marketing Patrick Rodmell President + CEO Watt International email@example.com
The importance of mobile marketingHere are a few trends that highlight the growth inimportance of new media and mobile marketing:• In the US, smartphones experienced a 29% increase in sales among phone purchasers over the latter half of 2009(1)• 74% of consumers globally who use retail touchpoints and the internet to research products will make their purchases in-store(2)• In the US, the total number of app users increased by 42% year on year in 2009(3)• 68% of Facebook users in the US are more likely to buy a product or visit a retailer based on a positive Facebook friend referral(4)• Social networking users grew by 83% in 2009(5) 3
Navigating new mediaIn response to the rapidly evolving new media landscape, brands today must successfullynavigate many new media channels. Using text messaging, mobile and regular websites,mobile ads, proximity marketing, and Smartphone applications, brands have the potential toknow where the shopper is and to interact with them, often in real-time.As they develop their approach to new media channels, retailers and brand owners areincreasingly focusing on the following areas of brand leverage:• Shopper Empowerment (creating tailored experiences controlled by the user)• Brand Engagement (integrating the brand with social media, apps and games)• Incentives & Loyalty (text, location-based apps and 2D barcodes for coupons and deals)Here are our top 20 picks for these categories… 4
Shopper Empowerment 1.Building a trust interface • http://www.asdapriceguarantee.co.uk/Asda in the UK has initiated a “priceguarantee” program, in response to recentprice wars being waged between the majorsupermarket retailers in the UK.Shoppers are invited to visit the PriceGuarantee website, and enter the itemsthey purchased the day before to comparethe cost with the competition’s prices. Asdareimburses shoppers the difference, plus apenny, if any items prove to be cheaperelsewhere.Watt’s P.O.V.Although it’s had some cynical response fromcompetitors, Asda’s system reinforces a sense oftrust in shoppers by institutionalizing transparency. 5
Shopper Empowerment 2.Social shopping: group-buying websites • http://4food.com/Customers of 4Food in NYC have the option tocreate and advertise, via social networkingsites, their own version of a burger.If that customized burger is selected by anyother customers, the originator will receive 25cents off of any subsequent purchases.Orders taken in the restaurant are processedon iPads.Watt’s P.O.V.This concept blends customization, socialnetworking and incentives for an in-store andonline experience that is fully integrated. Welike the use of iPads for order-taking too. 6
Shopper Empowerment 3.Social media and the brand • http://bit.ly/9VehQzThe Facebook “Like” button on brandedwebsites allows users to indicate theirpreference for a brand and share otherinformation with their friends.Brands like Levi’s are gradually incorporatingthis feature into their sites on a per-item basis,creating interaction with each product.Watt’s P.O.V.The Facebook “like” feature on websites is aclever solution to the potential problem ofbrands invading the personal space of thesocial networking site. 7
Shopper Empowerment 4.Social media and shopping • http://justbought.it/The “Just bought it” app allows shoppersto exchange ideas, photographs andcomments on items they have recentlypurchased.Signing on through Twitter allows users tobrowse categorized purchases made byother Twitter shoppers as they tweetdetails of their shopping trips.Watt’s P.O.V.Just bought.it is like Facebook for shoppers,and illustrates how consumers like tocompartmentalize their online social activity. 8
Shopper Empowerment 5.Interactive browsing • http://bit.ly/aeQNqsThe clothing store tobi trialed a virtualdressing room on their website last year.Using a webcam in the shopper’s home,the shopper uploads an image of herselfonto which images of clothing can besuperimposed, or “tried on”.Macys Department stores have a versionin-store currently that allows the user tosend images to their friends for feedback,or to share them on Facebook.Watt’s P.O.V.When integrated with social networking siteslike Facebook, this tool becomes a retailextension of a social networking experience. 9
Shopper Empowerment 6.Socially interactive objects • http://www.stickybits.com/A recently developed app called“Stickybits” allows users to imbed digitallycoded messages to physical objects,using barcode stickers that they buy fromthe site, or by attaching messages to anexisting barcode.Others who scan the code can viewcontent and add their own responses.Watt’s P.O.V.This app could be used by manufacturers orretailers for attaching digital information toproducts in-store: an appliance with a manualand instructional video attached, for example.
Shopper Empowerment 7.Smart phone apps to navigate retail • http://bit.ly/bWiWRdThe ShopSavvy app for Android and iPhoneplatforms enables users to do instant pricecomparisons when they scan any barcodeat a retail store.Optional online prices appear on screen,sorted by geographic proximity.Watt’s P.O.V.Applications such as ShopSavvy exemplifyhow much more control mobile shoppers nowhave over their shopping experience. 11
Shopper Empowerment 8.Brand apps to enhance retail experience • http://bit.ly/9nBA1gWhole Foods Market features an iPhoneapplication that allows shoppers to makeshopping lists based on recipes theychoose from the Whole Foods recipe list.They can also filter recipe choices basedon key words such as “budget” and “kids”.Watt’s P.O.V.Whole Foods has created an app that is bothfun to use, practical for shoppers and veryrelevant to its retail channel. 12
Brand Engagement 9.Browse and buy • http://bestbuyideax.com/currents/14Best Buy now features QR codes onin-store products, allowing shoppers toscan the codes for further information.Shoppers can also go to the Best Buyidea exchange blog, IDEAX, to posttheir suggestions on the brand’s recentinitiatives, including the in-store QRcode.Watt’s P.O.V.Best Buy is taking ownership of theinformation that shoppers seek on theirsmart-phones before making a purchase in-store. 13
Brand Engagement 10.Just walk in to get your kicks • http://www.shopkick.com/app.htmlShopkick is a smartphone application thatuses a transmitter to register shoppers asthey walk through the door, earning thempoints (“kickbucks”) toward the purchase ofstore items and prizes.As of August 2010, there are a number ofstores that have transmitters installed forthe application, including about 300 malls.Watt’s P.O.V.This is a simple but powerful enhancementon the retail-based shopper incentivegaming app. The rule of thumb shouldalways be: make it simple for the shopper.
Brand Engagement 11.Brand apps to enhance experience • http://bit.ly/cM6rTPPizza Tracker is a system that tracks yourDominos pizza, from the oven, to the rack,to the time it left the store, and then tellsyou who your delivery person is.The system operates through an app on amobile phone, or through an onlineinterface.Watt’s P.O.V.Marketing systems like these go a long wayin addressing the consumer desire fortransparency and clear communication. 15
Brand Engagement 12.Texting for fun • http://www.eatlikeanalpha.com/Oberto Sausage Company launched a mobilecampaign in 2009 that integrated with theirUltimate Alpha Zone website, which jokinglyappealed to the “alpha male” beef jerky eater.Users were invited to “Text-taunt-win”, by choosingfrom a list of taunts that could be sent to theirfriends. These activities built up loyalty points,which increased a user’s chance to win prizes.Wallpapers and ringtones can also bedownloaded.Watt’s P.O.V.The style of this initiative helped the brandingratiate itself among a young, text-savvyaudience, broadening its marketing scope. 16
Brand Engagement 13.Integrating social media touch-points • http://twitter.com/toysrusThe Toys-R-Us social media marketinginvolves Facebook, YouTube, a DealsWidget, Twitter and blog presence.The company offers “deals widgets” fordesktop, social media sites and mobileInternet use. The user is alerted via thesechannels about deals or new products.Watt’s P.O.V.This is a great example of successfulintegration between many new mediachannels. 17
Brand Engagement 14.Online ordering made fun • http://www.facebook.com/maynardscanada Strategy « Big Orange Slide http://bigorangeslide.com/category/strategy/The Maynard’s “Most Wanted” campaigninvolves print ads that invite respondents tohunt for each of the candy bandits (“JerryBomb”; “Sour Face”; “Fuzzy Malone”; “TheSwede” and “Biggie Bear”).Contestants “Like” the Maynards page onFacebook to enter, then scan the QR codeon the poster of each candy character theyfind. Contestants are eligible to win severalprizes, up to a $25,000 “reward”.Watt’s P.O.V.This campaign is fun and inventive, andincludes a tangible and generous incentivethat easily outdoes the offers of other In addition to their role as brand awareness pieces, the posters are the top level of a highly interactive consumer experience.brands. Using their smart phone (via QR codes, SMS messaging and the Maynards’ Most Wanted mobile site) consumers can interact with the posters. A successful engagement leads to a “capture” that drives them to a Facebook application, where the $25,000 reward contest plays out. 18 8 of 18 10/8/10 11:58 AM
Brand Engagement 15.Augment your reality • http://www.layar.com/Quiznos has teamed up with makers of theLayar app to enable users to locate thenearest Quiznos restaurants using theirsmartphone.Using augmented reality technology, Layaroverlays a map of Quizno’s locations on theimage of the area captured by the user’ssmartphone.Watt’s P.O.V.Augmented reality is being experimented withby many brands, but in this example, Quizno’sis offering a more practical application. 19
Brand Engagement 16.Interacting with the consumer • http://mystarbucksidea.force.com/Starbucks invites users of their website andTwitter page to share ideas on how to improvethe brand.The company then lists the implementedideas in the “Ideas in Action” section of theirwebsite.Watt’s P.O.V.This is a simple, fun way of interacting withusers, while showing them the results of theirinput in real-time. 20
Brand Engagement 17.Online ordering made fun • http://www.dunkinrun.com/Dunkin’ Donuts has devised an online andmobile app ordering system called the“Dunkin’ Run”.The user, or “runner” invites friends toparticipate, they send in their order to therunner who then sends the order to therestaurant where it is prepared for pick up.Watt’s P.O.V.The Dunkin’ Run represents an effective way toencourage brand engagement, by providing asimple service that creates novelty whilesimplifying and expediting the ordering process. 21
Incentives & Loyalty 18.Rewards go mobile • http://foursquare.com/Using the mobile gaming app Foursquare,users can achieve loyalty points at thestores they frequent. By “checking in”online as they enter store locations,gamers acquire badges and points.When Starbucks customers acquire a“mayor” badge, they receive a dollar offtheir favorite drink, every time they enterthe store.Watt’s P.O.V.In spite of the relatively slight incentives,Starbucks has enjoyed a lot of attention andhealthy participation among consumers. 22
Incentives & Loyalty 19.Location-based mobile marketing • http://bit.ly/9fd9StPepsiCo has partnered withFoursquare, the location-based gamingapp. The gaming app sends invites tousers to sign on for loyalty points thatcan be redeemed for products, as theyapproach stores that carry Pepsi.Pepsi Loot, introduced in June, worksin conjunction with fast food chains.Watt’s P.O.V.Foursquare also shares information with itspartnering companies on user activity. Thisgives companies the ability to adapt theirmarketing like never before. 23
Incentives & Loyalty 20.2D barcodes in large printDuane Reade, the largest retail pharmacychain in New York City, now owned byWalgreens, recently used 2D barcodes intheir advertising to build traffic and promoteprivate brands.The ads are mainly intended to buildawareness and promote interactivity,however users will receive news on dealson recently introduced private labelproducts and other deals in-store.Watt’s P.O.V.This is one of the best examples of 2Dbarcode marketing we have seen. It blatantlyand humorously addresses the potentialproblem of shopper comprehension. 24
Honorable Mentions:We have updated our top list of New Media retail samplesto include a few more up-to-date developments.Here are a few samples that are still relevant, but haveeither been enhanced upon or are just not as exciting asthey were 5 months ago! 25
Social shopping: group-buying websites • http://www.groupon.com/ • http://www.socialbuy.com/A number of group-buying websites offershoppers the opportunity to receive coupons onlyonce several people sign up for a discountvoucher within a limited time frame.Often members of Facebook will announce deals,encouraging others to participate.Watt’s P.O.V.These sites encourage trial and buildexcitement around the brand. The benefitsinclude positive brand self-promotion amongshopper groups. 26
Location-based apps for shopping • http://www.loopt.com/Loopt enables users to connect withfriends nearby and keep track of wherethey are.It also gives users special offers andcoupons as they approach retailers in thevicinity of their phone, including Macy’s &Best Buy.Watt’s P.O.V.Applications such as Loopt are enablingretailers to draw consumers back into theretail store, and away from PC onlineshopping. 27
Shopper EmpowermentSocial media and the brand • http://www.facebook.com/Facebook users in the US become “fans” ofcompanies, brands or products 20 million timesa day – up 500 percent in just one year.The Facebook “Like” button is going to beginappearing on outside websites, so that userscan indicate their preference for brands whileviewing those websites and share informationwith their friends.Watt’s P.O.V.The plans for the “like” feature on Facebookindicate a clever solution to the potential problemof brands invading the personal space of thesocial networking site. 28
Browse and buy • http://bit.ly/bMGePOBest Buy in the US offers shoppers theability to browse and purchase itemsvia the website on their phone, browseand save or receive text alerts for time-sensitive deals.In conjunction with Loopt, the location-based incentives app, Best Buy isoffering smartphone users loyaltyperks and coupons for entering thevicinity of a Best Buy location.Watt’s P.O.V.Increasingly, retailers are able to offershoppers the opportunity to tailor andcontrol their own product researching andshopping experience, mainly through apps. 29
Browse and research • http://bit.ly/diLDUuRetailers such as Canadian Tire andWalmart Canada have createdmobile websites for mobile phones –users can browse through allproducts, reviews and flyers on theirmobile phone.Watt’s P.O.V.Retailers in Canada are aware of theimportance of mobile marketing, and arestepping up their efforts to be involved. 30
Location-based gaming apps applied to retail • http://www.booyah.com/The MyTown app is a location-basedgaming app that invites players to check inat real-world retail locations in order toreceive points. They can also purchasevirtual goods and real estate and trackwhere their friends are shopping.H&M offers its “Blues” savings incentivesas players approach the store to enticethem inside.Watt’s P.O.V.These apps are quickly being recognized byretailers as an opportunity to engage potentialshoppers in a more interactive, fun waythrough gaming. 31
Texting to saveIn 2008, Jiffy Lube in the US initiated atext-based promotion to attract youngercustomers who may not be as receptive toJiffy’s TV or print ads.Users received ads that were appended totheir text alert content, such as YahooNews and other services. Users were thenencouraged to text in to receive varyingamounts off their next visit.Watt’s P.O.V.Even the most basic marketing initiativesusing SMS can be effective at buildingcustomer loyalty through incentives. 32
Appendix− Page 3: Nielsen Wire; “Smartphones to overtake feature phones in US by 2011”, R. Enter; March 26, 2010 (1); TNS, “Global Telecom insights, 2010 Priorities” (2); The Mobile Marketing Association; CMA Mobile Marketing Conference, Apr 8, 2010 (3); Morpace, emarketer, “Facebook’s Impact on Retailers”, Apr 1, 2010 (4); Comscore, B. Segal, “State of the Mobile Nation”, April 2010 (5)− Page 5: Sample 1: Asda Press Release, “Asda Price Guarantee: Our new promise every time you shop”, Apr 27, 2010− Page 9: Sample 5: Stores Magazine, D.M. Amato-McCoy, “That’s So “You””, Apr 2010− Page 10: Sample 6: Los Angeles Times, J. Guynn “Stickybits allows you to embed digital content on objects”, Mar 11, 2010− Page 11: Sample 7: The Record/Northjersey.com, “Retailers finding ways to put buying power in shoppers’ hands”, Mar 38, 2010− Page 14: Sample 10: South Orange Patch, P. Hoops “Get a Kick out of Shopping with a New App”, Aug 25, 2010− Page 23: The New York Times, S. Clifford, “Linking customer loyalty with social networking”, Apr 28, 2010− Page 24: Sample 20: Drug Store News, A. Alexander, “Duane Reade Teams up with JagTag”, Apr 28, 2010− Page 26: Contra Costa Times, E Mitchell, “Pack mentality can round up deals”, Apr 4, 2010− Page 27: The Wall Street Journal, G.A. Fowler, “Software Apps Provide Shoppers With Rewards to Help Lure Them Into Stores”, Apr 21, 2010− Page 28: Stores Magazine, S. Reda, “NRF Retail Innovation & Marketing Conference Highlights Conference Wrap-up, Apr 2010− Page 29: Stores Magazine, E. Davis, “Mobile 101: a retailer’s guide”, Jan 25, 2010− Page 31: Social Times, N. Vidyarthi, “H&M offers virtual goods within location-based game MyTown”, Mar 2, 2010 33
Watt InternationalPatrick RodmellPresident + CEOprodmell@wattintl.com300 Bayview AvenueToronto, ONCanada M5A 3R7Website: www.wattintl.com Scan the QR code to join us for more up to theTwitter: http://www.twitter.com/wattintl minute discussions on new media and otherLinkedin: http://bit.ly/bAlMyo industry trends on our Watt Bullseye Linkedin page!T 416 364 9384F 416 364 1098Thank youAn envoy group company
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