Manufacturers GoDirect to Consumers             Dr. Augustine Fou             November 9, 2012.
Executive Summary  Why should manufacturers go direct to consumer?      • Because they can; now with digital and social   ...
Why Go Direct?-3-              Augustine Fou
Empowered customers…      • Research products online      • Find information via search      • Trust peers most           ...
Customer Journeys are Online                        More of the customer journey                        takes place online...
A Direct Way to InteractBrands can directly interact with their own fans; they havemore of them than top magazines have in...
Shift to Performance Marketing      To performance-oriented tactics           Source: IAB, PwC April 2011-7-              ...
ExamplesFrom Different Industries-8-                         Augustine Fou
Burberry – direct interactions                        14 million fans                       historic images               ...
Timex – real-time insights                    Which styles are being                    searched for                    Wh...
Frye Boots - demand planning                    New styles                    piloted via e-                    commerce; ...
L’Oreal – direct sales via site  Tuesday 5 February 2013  The cosmetics company L’Oréal Paris has announced that it will  ...
Intuit          >50% via e-commerce         From boxed          Online         software at      e-commerce           Costc...
Long Term Efficiency and Profitability- 14 -             Augustine Fou
Digitally Mature CompaniesSignificantly Outperform Everyone Else   “A new report released by Capgemeni Consulting based   ...
Digital Maturity by Industry                                       High technology                                       B...
Dr. Augustine Fou – Chief Digital Strategist   “I help clients leverage digital   tools and techniques to create   sustain...
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Manufacturers Go Direct to Consumers by Augustine Fou

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Manufacturers should go direct to consumers to get new insights, real time feedback and drive profitability. This applies to b2b companies as well -- better to directly engage and serve the end customer.

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Manufacturers Go Direct to Consumers by Augustine Fou

  1. 1. Manufacturers GoDirect to Consumers Dr. Augustine Fou November 9, 2012.
  2. 2. Executive Summary Why should manufacturers go direct to consumer? • Because they can; now with digital and social channels, manufacturers can have two-way relationships with consumers and be less reliant on one-way push advertising • More real-time, first-hand insights about consumer demand and needs; increases in loyalty and advocacy • Drastic increases in profitability via marketing performance and supply chain efficiency-2- Augustine Fou
  3. 3. Why Go Direct?-3- Augustine Fou
  4. 4. Empowered customers… • Research products online • Find information via search • Trust peers most Source: Forrester Research Q3 2010-4- Augustine Fou
  5. 5. Customer Journeys are Online More of the customer journey takes place online and via search. Source: Google 2012-5- Augustine Fou
  6. 6. A Direct Way to InteractBrands can directly interact with their own fans; they havemore of them than top magazines have in circulation. Burberry 12.6M 1.0M Marie Claire Dior 7.8M 1.0M GQ Gucci 7.6M 1.1M Lucky Louis Vuitton 7.3M 1.1M Elle Chanel 6.5M 1.2M Vanity Fair Dolce & Gabbana 5.3M 1.3M Vogue Ralph Lauren 4.9M 1.5M Self Calvin Klein 4.0M 1.5M Fitness Coach 3.3M 1.6M Shape Armani 3.1M 1.7M InStyle Prada 1.7M 2.0M Real Simple Fendi 1.6M 2.0M Seventeen Versace 0.8M 2.4M Glamour Cartier 0.7M 3.0M Cosmopolitan Hermes 0.6M 3.6M People Source: Facebook, April 2012 Source: Wikipedia, 2H 2011-6- Augustine Fou
  7. 7. Shift to Performance Marketing To performance-oriented tactics Source: IAB, PwC April 2011-7- Augustine Fou
  8. 8. ExamplesFrom Different Industries-8- Augustine Fou
  9. 9. Burberry – direct interactions 14 million fans historic images 25,495 like the item 1,168 comments-9- Augustine Fou
  10. 10. Timex – real-time insights Which styles are being searched for What users spend time viewing on site What users are buying- 10 - Augustine Fou
  11. 11. Frye Boots - demand planning New styles piloted via e- commerce; the results of which informed demand planning- 11 - Augustine Fou
  12. 12. L’Oreal – direct sales via site Tuesday 5 February 2013 The cosmetics company L’Oréal Paris has announced that it will launch its own online store, where its entire product line will be available for purchase. While most luxury cosmetic brands in France have widely been available online for some time, many mass market cosmetic brands have avoided setting up their own on-line shops so as to not upset their all-powerful mass retail clients.- 12 - Augustine Fou
  13. 13. Intuit >50% via e-commerce From boxed Online software at e-commerce Costco- 13 - Augustine Fou
  14. 14. Long Term Efficiency and Profitability- 14 - Augustine Fou
  15. 15. Digitally Mature CompaniesSignificantly Outperform Everyone Else “A new report released by Capgemeni Consulting based on years of joint research with the MIT Center for Digital Business found that digitally mature companies are, on average, 26 percent more profitable, have a 12 percent higher market capitalization, and get 9 percent more revenue from current assets . The advantage is there in every industry.” BusinessInsider, Nov 5, 2012 Report Source: Cap Gemeni Consulting, Nov 2012- 15 - Augustine Fou
  16. 16. Digital Maturity by Industry High technology Banking Insurange Travel/Hospitality Telecom Retail Consumer Goods Utilities Manufacturing Pharmaceuticals Source: Cap Gemeni Consulting, Nov 2012- 16 - Augustine Fou
  17. 17. Dr. Augustine Fou – Chief Digital Strategist “I help clients leverage digital tools and techniques to create sustainable competitive advantage.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefouNovember 9, 2012 17 acfou@mktsci.com

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