In-Cosmetics 2013 - Bangkok, Thailand

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Mike Anthonys presentation deck from the In-Cosmetics Conference in Bangkok, Thailand (October 31st 2013) "How shoppers use technology and the implications to cosmetics brand marketing"

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  • http://www.in-cosmetics.com/in-cosmetics-blog/WinningZeroMomentofTruth/
  • Penetration in Thailand is 12%Philippinjes 24.6%
  • In Thailand, ELCA (importer of several cosmetics brands) recently launched e-commerce website; used DKSH as logistics provider http://www.esteelauder.co.th/Targets under 30-year old consumer group who spend a lot of time onlineHopes to get 5-10% sales share from online
  • In-Cosmetics 2013 - Bangkok, Thailand

    1. 1. Marketing to Shoppers How shoppers use technology and the implications to cosmetics brand marketing www.engageconsultants.com facebook.com/engagetheexperts twitter.com/shopperexperts
    2. 2. We have worked with over 50 companies, of which 10 are in the top 25 consumer goods manufacturers globally We help consumer goods companies… Identify massive growth opportunities Identify huge savings in trade spend and marketing Configure teams to be most effective Develop people to be able to make a difference...
    3. 3. Internet usage is growing fast across Asia 27.5% of the population of Asia is online (44% of the world‟s internet users) More than doubled in the last five years Asia Top Internet Countries June 30, 2012 China 538.0 India 137.0 Japan 101.2 Indonesia 55.0 Korea, South 40.3 Philippines 33.6 Vietnam 31.0 Pakistan 29.1 Thailand 20.1 Malaysia 17.7 0 100 200 300 Millions of Users Source : Internet World Stats –http://www.internetworldstats.com/stats3.htm Updated June 30, 2012 Copyright : 2013, Miniwatts Marketing Group 400 500 600
    4. 4. Globally, large quantities of internet users use it to shop 21% of global beauty consumers claim to use online communities “all or most of the time” to make product choice 19% routinely use social media platforms and expert blogs What does this mean for shoppers, and what are the implications for brand marketing? Source: in-cosmtcis Winning the Zero Moment of Truth (ZMOT), February 2013
    5. 5. China is now the world‟s biggest Beauty & Personal Care online market Millions $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $South Korea United Kingdom 2007 2008 France 2009 Japan 2010 North America 2011 China 2012 So what are the implications of this rapid technological adoption on brand marketing? Source: Euromonitor 2013
    6. 6. Consumer goods companies typically have to manage three elements to achieve marketing success Create desire to consume the brand Maximise the opportunity to purchase the brand Motivate retailers to support the brand
    7. 7. Effectively managing brands is about connecting what we are doing with consumers with what happens in stores Consumer priorities Shopper behavior Channel priorities In–store marketing Investment in customers
    8. 8. How does technology affect our marketing? Consumers have different brand relationships Shopper path to purchase is changing New channels Different channel roles New environments within which to influence shopper behavior New customers New investment requirements
    9. 9. The consumer communication world is fragmented; and is fragmenting further at unprecedented rates Global advertising spend by category CAGR (2006-2010) 450 Mobile advertising 300 250 100 50 20 Interactive TV promotions 19 19 20 Global cable/multichannel Traditional ad formats 77.6% 5 Global broadcast 200 150 Global internet U.S. product placement 350 New ad formats 22.4% 41 In-game advertising 400 5 U.S.MSO advertising Global radio and outdoor Global magazine Global newspaper U.S.local station 5 5 4 2 2 0 As media continues to fragment, reaching consumers is increasingly more expensive Source: Morgan Stanley
    10. 10. Brand conversations increasingly take place in the absence of the brand owner
    11. 11. Bangkok and Jakarta are Facebook‟s busiest cities List of cities on Facebook # City Country Users Pen. 1. Bangkok Thailand 8682940 104.74% 2. Jakarta Indonesia 7434580 34.10% 3. Istanbul Turkey 7066700 62.98% 4. London United Kingdom 6139180 73.79% 5. Bogota Colombia 6112120 82.15% 6. Sao Paulo Brazil 5718220 29.88% 7. Mexico city Mexico 4294820 23.30% 8. Santiago Chile 4129700 73.35% 9. Mumbai India 3700460 18.95% Buenos Aires Argentina 3533840 28.52% 10. Source: socialbakers, Sep2012
    12. 12. How does technology affect our shoppers? Consumers have different brand relationships Shopper path to purchase is changing New channels Different channel roles New environments within which to influence shopper behavior New customers New investment requirements
    13. 13. The journey from consumer desire to a sale is getting more complicated Source used by media type 84% 83% 82% 81% 80% 79% 78% 77% 76% 75% 74% Traditional media Internet sources Source: Google inc. 2011 In-store marketing
    14. 14. They use a plethora of different sites What kind of websites do you purchase from most frequently when shopping online? Online-Only Websites Asia-Pacific 31% Middle East/Africa 40% Asia-Pacific 38% 39% Europe Latin America Brick & Mortar store websites Latin America 24% 21% Middle East/Africa 40% 49% 37% 34% Global Average Asia-Pacific 31% Latin America Middle East/Africa North America Global Average 40% 40% North America Catalog/Phone-Order websites Latin America 24% 21% Middle East/Africa 49% 37% 34% Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010 49% 37% 34% 31% North America Global Average 40% 38% 39% Europe 19% 20% 40% 24% 21% Asia-Pacific 38% 39% Europe 19% 20% Global Average Multiple online store websites 40% 38% 39% Europe 19% 20% North America 31% 19% 20% 24% 21% 40% 37% 34% 49%
    15. 15. Mobile is growing rapidly 9,000 Total Asia-Pacific 8,000 +7% 7,084 7,000 7,670 6,647 6,073 6,000 5,377 3435 5,000 +20% 3,366 3,000 2,730 2,196 2,000 1,000 824 (38%) 2005 2889 3,022 1990 2,588 2,116 1,727 1,064 (39%) 2006 3,374 2313 1373 1,376 (41%) 2007 Source: GSMA Asia Pacific Mobile Observatory 2011 3655 3051 2540 1666 3560 3273 4,656 4,039 4,000 - 7,419 (51%) 3,651 (52%) 3,860 (52%) 4,014 (52%) (50%) (48%) (45%) (43%) 2008 2009 2010 2011 2012 2013 2014 2015
    16. 16. Social media has an enormous impact on the way people make decisions about buying I Use Social Media Sites to Make Purchase Decisions 100 90 19 23 80 31 36 38 48 70 50 50 40 52 54 56 60 82 83 85 50 40 81 77 30 69 64 62 52 20 50 50 60 48 46 44 10 18 17 15 AU JP NZ 0 VN CH TH PH ID MY HK Yes Source: Nielsen Global online Survey-April 2010 IN No TW KO SG AP Avg
    17. 17. Digital usage in shopping will increase : 70%+shopper want to shop with digital engagement in the future % of shoppers accessing sources „A lot‟ or „Somewhat‟ in Future Direct Mail 87 Newsapaper 86 In-store 86 Store website using computer 75 Email from retailers 72 Store website using tablet 59 Social media site 37 Smart phone or mobile phone 10% today Millennials Index = 176 31 In-store kiosks 43 Televisions in the store 42 Print Source: Nielsen Digital Circulars Survey Q2 2011 60% today Millennials Index = 114 Digital Other
    18. 18. The path to purchase is affected dramatically Thinking about household grocery shopping, which of the following activities have you done in last month on any online connected device? Global Average Asia-Pacific Conduct research online (for example, checked price, read a consumer review) Purchase a product online Read a grocery retailer‟s circular/flyer online Look for deals online Look for coupons from an online coupon site Compare prices for a grocery product online Look up product information online Browse a manufacturer‟s website for a grocery category Provide feedback about a grocery category through social media (wrote a review, blogged) Use a digital shopping list 0 10 20 30 40 50 60 70 Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012
    19. 19. It is becoming increasingly hard to separate the consumer and the shopper world Consideration of the shopper used to be limited to the in-store world. Shopper activities now clearly take place outside that environment. We must still consider the shopper and the consumer as different targets, but we cannot separate the two “worlds” The consumer and shopper marketing activities need to be developed separately but integrated completely Consumer and shopper marketing efforts must be intergrated
    20. 20. Shoppers are becoming increasingly heterogeneous Their shopping journeys are complex and varied Their „pre-store‟ experience of the category and brand is highly varied. We need to carefully map what is required at each step of the purchase journey Different shoppers will need different things at each point: our approaches must be flexible and responsive “One size fits all” will not work (not everyone is digital)
    21. 21. How does technology affect our brands? Consumers have different brand relationships Shopper path to purchase is changing New channels Different channel roles New environments within which to influence shopper behavior New customers New investment requirements
    22. 22. The most obvious statement is that there will be new channels: new places for shoppers to shop and buy
    23. 23. Everywhere is a potential store….
    24. 24. What is clear is that the roles that channels play may also change 60% expect multichannel play from all retailers 41% would want to be recognized by the smartphone as they enter a store 69% of Chinese respondents say they purchase more online per transaction than in a normal store 80% in developing markets prefer browsing and purchasing online 56% would pay more in a bricks/mortar store if they had browsed online first 51% see showrooming as the norm by 2020 Channel roles will change and continue to evolve Source: Nielsen How Digital Influences How We shop Around The world, August 2012
    25. 25. Some manufacturers/distributors are using the internet to create their own channels Relationships with existing customers need to be considered
    26. 26. In-store is changing rapidly… Consumption opportunities Shopper path to purchase is changing New channels Different channel roles New environments within which to influence shopper behavior New customers New investment requirements
    27. 27. While shoppers continue to interact with traditional forms of marketing, many are also digitally engaged while shopping Over 66 percent of smartphone owners use their phone to help them shop while in a store Women are using their smartphones to get style advice and feedback, search for product information, and look for special offers and discounts while they shop Source: Business Insider How Mobile Marketers Can Use Perfect Timing To Win Droves Of Female Customers, July 2013
    28. 28. There is still a need to develop an “in-store” marketing mix to drive changes in shopping behavior Availability Shopping behavior Communication Offer The “rules of engagement” online are quite different
    29. 29. Ranges can become unlimited: how do we get found? Brands must master how shoppers navigate in the retail world if they are to be found
    30. 30. We have more media options with which to communicate our messages to shoppers An increasing complex landscape provides consumer with a wide array of choices Online ECircular Emails Printable Coupons 3 Website 3 3 1 Searching for coupons 2 Reading a flyer/ Circular 3 3 Looking for Deals 3 3 3 Digital Magazines Social Search/ Display Mobile Copon Text Message Mobile Apps 3 3 3 3 In-store 3 3 3 3 Reviews Social Media Kiosks 3 3 3 3 3 Mobile 3 3 Multiple touch points need to be managed and integrated Source: Nielsen Digital Circulars Survey, Q2 2011 3 QE/Bar Codes 3
    31. 31. And it appears that there will be an even higher reliance on price discounts Great shopper marketing is required to avoid a massive discount dependency
    32. 32. The retail landscape is changing more rapidly than ever Consumers have different brand relationships Shopper path to purchase is changing New channels Different channel roles New environments within which to influence shopper behavior New customers New investment requirements
    33. 33. Your major customers will undoubtedly add and develop their e-retail presence
    34. 34. And some retailers will come, and some will go
    35. 35. Online retail has a dramatic impact on a traditional retailer‟s business Like for like sales go down: stores become a liability Marketing function grows in strength and influence Multiple channels become the norm: channel teams become a necessity Price comparison becomes more of an obsession – putting pressure on margins Things change much more quickly – retailers knee jerk This will have significant implications for your brand
    36. 36. Success will require continual adaptation of the entire marketing approach Recognize that relationships with consumers will change Not all shoppers are the same – so target those that matter Let’s connect! mikeanthony.me facebook.com/engagetheexperts twitter.com/shopperexperts Map paths to purchase Understand channel roles In-store marketing must be flexible, ad aptable, per sonable The retail base is more dynamic than ever: prioritize and invest with care
    37. 37. Find out more in “The Shopper Marketing Revolution” “For those on the fast track of modern business (The Shopper Marketing Revolution) is a must read.” Paco Underhill Author of Why We Buy: The Science of Shopping “Invaluable to the careers of very many of the marketing professionals in the industry." Herb Sorensen Author of Inside the Mind of the Shopper Available now on Amazon!

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