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FCMG mobile strategy

An in-depth analysis on how FMCG should approach and implement mobile strategy. Mobile landscape analysis, scope, case studies

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FCMG mobile strategy

  1. 1. Mobile Strategy for FMCG George Achillias MBA
  2. 2. But it becomes obvious that there are great key opportunities in mobile for FMCG 2 According to a 2013 Deloitte study, the conversion rate in the store for shoppers who use a retailer’s dedicated app is 21% higher than those who do not. • $12,8 billion was spent via mobile payments in the US in 2012 • $90 billion will be spent via mobile payments in the US in 2017 • In 2016 an estimated $689 billion will be influenced/driven by mobile retail
  3. 3. 4
  4. 4. MOBILE LANDSCAPE
  5. 5. me[/mi:/] a.k.a mobile everywhere is a strategy to embrace mobility and align peoples’ context with business goals and desired outcomes
  6. 6. me has changed the landscape
  7. 7. me has reshaped our priorities & our human interactions 9
  8. 8. me is defined by human behavior & context 10 Lean In Lean Back Engagement
  9. 9. me has neither physical nor time boundaries 11
  10. 10. me is #1 at all the moments of that day that matter 12
  11. 11. me, means that people instead of switching off during their personal time they get connected 13
  12. 12. me unlocks the next generation of consumers 14 Mobile is the only way to reach the next billion middle class consumers from the emerging markets as it is by far the primary device... By 2050, the developing world will account of two thirds of the global middle class consumption. Source: Jana Mobile, overview of distribution of global middle class consumption In developed markets, mobile enables marketers to reach the rising mobile first generation that can no longer be engaged via traditional digital channels
  13. 13. me time is mostly spent on apps and on personal content 15 Apps continue to dominate the mobile web 68% of time is spent in personal apps
  14. 14. me directly drives massive retail - multi billion $ game 16 Global mobile payment transaction value ($bn, 2012-2015) > 300$ average annual mobile purchase spend per capita ($100bn+ mkt) Use a smartphone to help with shopping
  15. 15. me-influenced offline retail sales skyrocketing 17 Mobile-influenced sales vs. e-Commerce sales (in $ billions)
  16. 16. me, in shopping means to be always 18 If your content doesn’t exist on the mobile screen, it doesn’t exist at all. - Karen McGrane
  17. 17. At the same time, explosion of web-enabled devices means mobile is a material share of total
  18. 18. Mobile only internet users are a huge population, as devices advance they will dramatically drive usage volume
  19. 19. and regional variance evident, very clear ‘headroom’ for access diversification
  20. 20. In the World’s largest (internet) market …
  21. 21. “Mobile is a lot closer to TV than it is to desktop” Zuck
  22. 22. me is central to customer relationships & transactions
  23. 23. Content sharing is most active in emerged / fast emerging markets
  24. 24. BUILDING THE STRATEGY
  25. 25. Building a comprehensive mobile strategy … One size does not fit all! Loyalty Awareness Transaction Engagement Objectives & tactics will differ, but we can define guiding principles
  26. 26. We need to have a holistic approach 28
  27. 27. And we have to re-engineer our approach to mobile and make peoples’ mobile moments 29 • Create value in your brand through the utility you provide • Embrace mobile moments to serve empowered customers • Service-enable your products through mobile moments Use mobile moments to turn processes into tasks • Empower employees with information in mobile moments • Power mobile moments with systems of engagement
  28. 28. Mobile strategy guiding principles 30 Follow the consumer Meet their expectations Demonstrate relevance Exploit functionality
  29. 29. Mobile strategy guiding principles 31 Follow the consumer, meet their expectations, demonstrate relevance, exploit functionality: Start with ‘free’ owned & earned environments “Devices of all shapes, sizes, and capabilities are flooding the market, and users expect to get your content on all of them.” Sara Wachter-Boettcher :: Content Everywhere 45% of Fortune 500 firms lack mobile optimised website IAB US, August 2012 “61% of customers who visit a mobile unfriendly site will go to a competitors site” Karim Temsamani, Google :: IABALM 2012 eCRM to mCRM: “44% of email is now opened on a mobile device.” Litmus :: “Email Analytics”, June 2013
  30. 30. ‘Responsive design’ frameworks support complex layouts across multiple-devices with defined ‘block’ hierarchy 32
  31. 31. Mobile strategy guiding principles 33 Follow the consumer, meet their expectations, demonstrate relevance, exploit functionality: Extend ‘always on’, ‘activation’ & key campaign initiatives cross-platform By 2016, the majority of global search queries will come from mobile devices. Carlos Kirjner :: Alliance Bernstein, Feb ’12 77% of mobile searches are while at home or work (US) 28% result in a conversion (store visit / call / purchase) (US) Google :: Mobile Search Moments, q4 ‘12 fieldwork Device-shift TV inventory remains limited, significant video now via mobile 86% of US mobile internet users ‘companion browse’ while watching TV Aaaa SOURCE 40% of global YouTube traffic is to mobile devices Larry Page :: Q3 Earnings Call, Oct ‘13
  32. 32. Mobile strategy guiding principles Follow the consumer, meet their expectations, demonstrate relevance, exploit functionality: Exploit location data & / or data-driven segmentation techniques to increase relevance to consumers 34 3 targeting approaches to augment campaign strategy: – Current & habitual location / proximity data based on IP block / ‘lat long’ data – ‘Audience’ inferences informed by device ‘finger-printing’ & / or observed content / app utilisation – Contextual or personal affinity based inventory prioritisation
  33. 33. Mobile requires dedicated measurement solutions App utilisation & iPhone default to Safari render cookies irrelevant Tracking users multiple apps, mobile web, across sessions immensely difficult … before consider non mobile touchpoints / conversion Ideally institute attribution modelling to understand contribution from the halo of brand activity & assets Essential to deploy a specialist mobile adserver for tracking & visibility reports: 35
  34. 34. Mobile check list … 36 WEB What happens when someone searches for you on their mobile? Can they find you? Mobile SEO or Mobile PPC? Mobile site? Does the brand’s website work on mobile devices? Does it give a good customer experience? SOCIAL What happens when someone visits your brand pages in social media? Have you checked that your content works on Mobile within Facebook? Do they click through to a mobile site? Do you need a campaign specific microsite? APPS What happens if someone searches for you in the app store? Are other apps referencing your brand? Do you have your own app? Is it current, does it need updating? Are you promoting the app? RESPONSE Can mobile users respond to your ATL ads? Are you using SMS response? Is your brand or audience right for QR or Image Recognition/Audio recognition? Does the media lead directly to lead gen or a branded experience? MEDIA Is the brand achieving its share of voice in mobile media? Are you using mobile display/PPC? Are brands with retail locations using Local aspects to mobile search? Are you driving users to the channel through direct operator channels?
  35. 35. It is no longer a nice to have thing 37
  36. 36. MOBILE EXPERIENCE IN FMCG
  37. 37. Mobile Website 39 • UK research shows that FMCG brands are lagging behind on mobile: “46% of the UK's top FMCG brands do not have a mobile friendly site and 30% have no mobile presence at all”*. Background Functionalities Benefits Don’ts • Dove (Unilever) • Market: UK • Mobile responsive • Reduced content • Presents product range • Includes useful tips & articles • Video Archive • Presents Dove’s self-esteem project • Social Icons • Readable and light website *Source: http://www.warc.com/LatestNews/News/FMCG_brands_are_weak_on_mobile_.news?ID=32976 • Focused on key elements • Easy to navigate (extra menu; single layout) • Loads quickly on the device • May act as a landing page • Do not overload the mobile site with too much content
  38. 38. Mobile Website 40
  39. 39. Mobile Payments 41 Background Functionalities Benefits • Starbucks • Market: US, CA, UK • Loyalty Programme – mobile payments • Mobile App (IOS & Android) + Starbucks Card • A reward system based on Stars (points); for every 15 payments – a free drink • Instead of cash – mobile app sync to a pre-paid Starbucks Loyalty Card • Paying process based on QR codes which are scanned at the till • Mobile app enables to check balance and top up a card, view a transaction history and transfer balances between cards • It track stars in My Starbucks Rewards programme • Starbucks locator • Enhance in-store consumer experience and consumer relation • Quick and easy payments • Automatic Stars (points) for each payment – the reward program is a real draw • In US mobile payments represent 14% of in-store transactions (Mar 2014) • Mobile app helps to collect more info about the customer – preferences, needs, habits
  40. 40. Mobile Coupons 42 Background Functionalities Benefits • Unilever brands • Market: South Africa • Online & Mobile Site www.unileverdeals. co.za • Mobile coupons available on Unilever website • Mobile responsive site • Single layout, extra menu, filters make it easy to navigate mobile site • Three step mechanism: 1. To sign up on the site 2. To select a coupon 3. To receive SMS with a discount coupon to use in store • Easy and quick mechanism • A full range of Unilever offer • The procedure enables to build a consumer base (incl. names and phone numbers) for direct marketing purposes • It allows to create a consumer profile based on the purchase intents Mobile app seems a better solution for mobile coupons platform: may enhance in-store experience, simplify the procedure, personalize the offer
  41. 41. Mobile Coupons #2 43 Background Solution Results • OMO / Presil (Unilever) • Market: South Africa • Loyalty programme based on mobile • The objective was to build brand loyalty among consumers and encourage them to make multiple purchases • Loyalty opt-in programme • Mechanism: 1. Dial in a code on the OMO bag to participate 2. To receive a call from a local celebrity, Nkanysio, who asked questions about purchase habits 3. Incentives: 1 bag = a chance to win R1million of education bursaries 2 bags = R5 of mobile time 3 bags = R8 worth of airtime 4 bags = a voucher for school socks 5 bags = a voucher for school shirt • All participants got a text messages reminding them to buy OMO every month • Repurchase increased by 60% • OMO received 2,7 million entries – an average participant entered the program more than three times • Sales increased by • ROI was 3.5 Instead of typical discount, Unilever offers mobile airtime – a reward of higher value for consumers in South Africa
  42. 42. iBeacons 44 • DEFINITION: iBeacon is an Apple’s microlocation technology that relies on Bluetooth 4.0 Low Energy (BLE) solution. It allows mobile app to listen for the signals from beacon transmitters and react accordingly – push messages, app actions, prompts, for instance. • ADVANTAGES: • Deliver proximity services that create unique consumer experience • More relevant, valuable and timely messages • Target consumers at the point of sale • App don’t have to be active on screen to receive beacon signal • DISADVANTAGES: • BLT must be turned on • Mobile device receives signals only if it has an app which supports beacons Source: Passkit http://blog.passkit.com/ibeacon-101-proximity-services-infographic
  43. 43. iBeacons #1 45 Background Solution Results • American Craft (Hillshire Brands) • Market: US • In-store mobile program through inMarket apps • The objective was to drive sales of American Craft Link Sausages product • If a shopper used one of inMarket apps while in store, he or she would have received a branded push notification with a sausage discount offer • 20% increase in purchase intent • 36% increase in brand awareness • During the first two days 6000 engagements in-store were measured – that many times someone received and opened the push notification. This campaign demonstrates that geotargeting solutions have a big potential to draw sales
  44. 44. iBeacons #2 46 Background Solution Results • 14 P&G brands (i.e. Crest, Scope, Gillette, Old Spice) • Market: US • In-store mobile program through CheckPoints App (inMarket) to reach ‘millennial mums’ • The objective was to lift purchase intent and raise brand awareness. • The campaign was executed in grocery stores across US to reach 20 M mobile users • First they were informed about the promotion via opt-in push messages, mobile ads and social media • While shopping consumers got alerts via CheckPoint App. Its users get points for checking out featured products in store. Eventually these points can be exchanged for gift cards and gadgets • The P&G products were scanned 300 000 times in less then three months
  45. 45. In-store Experience 47 Background In-store experience Benefits • Macy (US retailer) • Market: US • In-store mobile program (iBeacon) through Shopkick App • Shopkick App: • presents various products available in participating shops • rewards users with kicks (points) whenever they enter the store, scan some items and purchase them • kicks can be exchanged for gift cards • iPhone receives Shopkick’s iBeacon signal when localized in Macy • iPhone owner who uses Shopkick App gets a push notification to open it so the app can alert to discounts and sales • If a shopper spotted any products of interest online, Shopkick can also remind of them when visiting the right department • Enhance in-store consumer experience • An individual gets a ‘personalized’ offer based on his/her interests and localisation • Shopper can save some time and money • Direct people to specific parts of the store
  46. 46. In-store Experience 48 Macy (US retailer) BACKGROUND: • Market: US • In-store mobile program (iBeacon) through Shopkick App Shopkick App: • presents various products available in participating shops • rewards users with kicks (points) whenever they enter the store, scan some items and purchase them • kicks can be exchanged for gift cards SOLUTION: • iPhone receives Shopkick’s iBeacon signal when localized in Macy • iPhone owner who uses Shopkick App gets a push notification to open it so the app can alert to discounts and sales • If a shopper spotted any products of interest online, Shopkick can also remind of them when visiting the right department BENEFITS: • Enhance in-store consumer experience • An individual gets a ‘personalized’ offer based on his/her interests and localisation • Shopper can save some time and money • Direct people to specific parts of the store
  47. 47. In-door Experience 49 Background In-door experience Insights • San Francisco International Airport • Market: US • Mobile app using beacon-based navigation technology • San Francisco Airport created a mobile app that helps visually-impaired travellers to move about one of its newest terminal • If the trails prove successful, the beacon network might cover entire airport and SFO app could be modified for all passengers • If connected to iBeacon, SFO App gives aloud directions to the airport gates • It also localizes key areas inside the terminal building such as restrooms, ATMs and baggage claim • It enhances consumer experience • Helps to explore the terminal • Other possible advantages: reminders, special offers etc. Virgin Atlantic use personal notifications to remind upper class passengers to open their eboarding pass when approaching security area at Heathrow. Also Passbook App alerts them to special offers available at near shops
  48. 48. Mobile solutions – Pros and Cons 50 Ad solutions Pros Cons • Designed for mobile users = better experience • Available for various devices • Provides data anytime - anywhere Mobile Payments • It makes a paying process easier and • Easy access to coupon base • Always available • Is it really for FMCG brands? • Targets only those who have downloaded the mobile app • Wrong technology solution = annoying Mobile Site Mobile Coupons quicker at the point of sale • Innovative solution = innovative brand • Targeting at the point of sale • Improve in-store experience • xxx iBeacons
  49. 49. MOBILE CAMPAIGNS
  50. 50. NIVEA: The Protection Ad 52 • BRAND: Nivea Sun (Beiersdorf) • MARKET: Brazil • MEDIA: Print,Mobile App • OBJECTIVE: Nivea is a very traditional and conservative brand. The challenge is to energize the brand for the new target in order to renew a consumer base. • SOLUTION: Nivea has created a paper bracelet which helps parents watch their kids while spending time on the beach, for instance. Finding it inside a subscribed copy of Veja Rio magazine one has to detach it from the press ad and then synchronize with a mobile app (Nivea Protégé). After setting up the maximum distance where child can go, parents will be alarmed if this limit is exceeded. The wristband uses Bluetooth technology – it is a Beacon Solution. • RESULTS: Of the people who were impacted by the project 85% downloaded the Nivea Protégé App. • INSIGHT: This campaign was aimed at a narrow audience, therefore print ad was used in the first place. In this case beacon technology was used so parents got a useful tracking device. It highlights the key message that Nivea Sun was created to protect kids in various ways. But there is a trap – what if a kid wearing the wristband got lost?
  51. 51. Cif: Cif Cleans Romania 53 • BRAND: Cif (Unilever) • MARKET: Romania • MEDIA: Mobile App & Cif Romania Website supported by: TVC, Outdoor, Instore • OBJECTIVE: To change attitudes, dramatize a key product benefit, drive web traffic and raise awareness. • SOLUTION: The campaign is aimed at mothers whose concern is they cannot protect their children against outside dangers. This idea lies at the core of Cif campaign whose mobile app is a pivotal element. Using GPS technology it enables to report the location of the offensive graffiti where Cif crew arrive later and clean it. Before & After photos are posted on the app and Cif Romania website so everyone can see the results. • RESULTS: Three months campaign resulted in 250000 website visits and 385 locations cleaned by Cif crew. The app was the most popular one in its’ category on the App store. This campaign reached 14 million people and generated $1,6 million in free media. • INSIGHT: What characterise this campaign is a creative idea that is easily connoted with the product’s characteristics. It appeals to reason and emotions . A bespoke mobile app made it really easy for the users to choose graffiti to be removed.
  52. 52. Knorr: Inspiring Kitchen 54 • BRAND: Knorr (Unilever) • MARKET: Brazil • MEDIA: Mobile App, Branded Utility • OBJECTIVE: To raise engagement and inspire new cooking ideas. • SOLUTION: Knorr has created a stylish line of kitchen accessories such as dishcloths, aprons, fridge magnets, mitts and bag dispensers distributed for free in the supermarkets. Not only are they useful in the kitchen, but also function as a key to mobile app which proposes customized recipes depending on location, weather, seasonal ingredients, individual preferences. A mechanism that opens the mobile app involves taking a photo of the print which is recognized as QR code. The underling technology is GPS. • INSIGHT: Instead of placing QR codes on product packages, Knorr use beautifully designed kitchen items to activate mobile app. This way Knorr’s accessories will stay outside the cupboards acting as a reminder of the brand. Knorr goes a step further in recommending personalized and contextual recipes. This way they become more relevant to the cooks.
  53. 53. Hellmann’s: Recipe Cart 55 • BRAND: Hellmann’s (Unilever) • MARKET: Brazil • MEDIA: Mobile • OBJECTIVE: The idea is to change the perception of mayonnaise as a sandwich filling and present it as a versatile ingredient that brings the best out of food. The campaign is targeted at new consumers when the are in store doing shopping. An activation at the point of sale is aimed to increase sales of Hellmann’s. • SOLUTION: At Pão de Açúcar supermarket consumers push Recipe Carts which use RFID technology to recognize products on the shelves and then display recipe ideas on LCD screens placed in the front of the trolleys. The built-in map helps to locate all necessary ingredients in store. Consumers can also browse recipes on screen and share them via email. They all are variations on mayonnaise usage. • RESULTS: In the first month 45000 people experienced Recipe Cart and in result sales increased by 68%. The campaign was commented in media generating PR for the brand. • INSIGHT: Introducing Recipe Cart was a way to draw consumers’ attention to Hellmann’s while shopping. Not only were they inspired by the new recipes, but also showed around the shop. In result Hellmann’s sales increased. Relevant content, simple message, targeting shoppers and intriguing device lay behind the success of this campaign.
  54. 54. Building a FMCG CRM programme via mobile: Simple on pack code & on-going relationship by mobile http://www.youtube.com/watch?v=XFyj0_UF6yY
  55. 55. Supply chain transparency to counter entrenched views: AR, GPS, database & social integration from store
  56. 56. MEFOR FMCG
  57. 57. Use mobile to drive conversion before recruitment • “Fish were the fish are” Keith Weed - Unilever CMO • The new moment of truth is when a consumer looks for information in order to help affirm the purchase decision • We need to carefully balance the task of converting those who are expressing an identifiable behaviour (which suggests a one-to-one style of communications) vs. encouraging others to take action (more one- to-many) 59
  58. 58. And in order to do this we need to describe the four pillars and the mobile landscape • Reach; Mobile delivers reach. Web, apps and social channels are of particular importance, but there are variations in usage depending on the smartphone penetration • Engagement; the frequency and depth of usage shows that mobile has the power to bring engagement to FMCG brands. Social media is a channel where considerable time is spent, but the growth of mobile video, particularly in advanced territories, also delivers an opportunity for engagement
  59. 59. Four pillars and the mobile landscape • Impulse; the contextualized nature of mobile creates opportunities 61 to drive impulse. By understanding where and when devices are used and planning media accordingly we can support both discovery and impulse at the moment of purchase • Loyalty; mobile can be the key to driving loyalty. Mobile can be used to bridge across media channels to support loyalty. Regular FMCG product consumers access to mobile channels throughout the day can deepen the engagement and drive loyalty

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An in-depth analysis on how FMCG should approach and implement mobile strategy. Mobile landscape analysis, scope, case studies

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