Digital Marketing in Food & Grocery: Essential shopper insight into the use of digital media and mobile commerce

www.evolution-insights.com 1

Digital Marketing in Food & Grocery

Essential shopper insight into the use of digital media and mobile commerce

Evolution Insights LtdProspect House

32 Sovereign StreetLeeds

LS1 4BJTel: 0113 389 1038

http://www.evolution-insights.com

Evolution Insights

http://www.evolution-insights.com/


www.evolution-insights.com

Disclaimer

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Please note

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd.

The content of this presentation is based on information gathered in good faith from various primary and secondary sources and is believed to be correct at the time of publication. Evolution Insights can however provide no guarantee regarding the accuracy of this content and therefore accepts no liability whatsoever for any actions taken that subsequently prove incorrect.

© Evolution Insights Ltd 2010


This presentation is an excerpt from Evolution Insights’ latest report Digital Marketing in Food and Grocery: Essential shopper insight into the use of digital media and mobile commerce.

For more information about the full report please visit www.evolution-insights.com/ or call Craig Bradley directly on +44 (0)113 336 6035

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Digital shopper marketing: introduction

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• Digital media lies in contrast to traditional forms of mass media such as analogue radio and television, print (newspapers and magazines), signs and banners.

• And while digital media is often considered synonymous with internet connected devices, it in fact extends beyond this to include other forms of media such as mobile text messaging, digital signage, kiosks and in-store TV.

• Indeed the digital media landscape ranges from text messages, e-mail and social media to internet websites, smartphone applications, digital signage and in-store kiosks – and more.

• Nevertheless, internet connected devices do form the backbone of many forms of digital media, and underpin the huge growth in electronic and mobile commerce, and social media in recent years.

• Digital marketing in food and grocery is quite simply the marketing of brands and retailers to consumers using digital media channels. In the same way that digital media extends beyond internet connected devices, digital marketing extends beyond use of the internet - to include digital media such as mobile text messaging, digital signage, kiosks and screens in store.

• Importantly - digital marketing shares all the same characteristics as traditional marketing. It is just marketing delivered using digital channels and should not be considered in isolation from traditional marketing.

Digital media encompasses all forms of communication that are delivered using a binary electronic format, utilising technology such as computers, mobile devices and screens.

Digital media and digital marketing: definition

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Smartphones bring digital media such as e-mail, websites and apps to mobile devices

Smartphone apps can offer shoppers the latest personalised coupons, offers

and points rewards based on their shopping habits and location

E-mail remains one of the most popular digital media for push

marketing

Digital media also extends to in-store scanners and screens.


• Opportunities for shopper marketing are however not necessarily constrained to the store environment – consumers often enter into the shopper mind-set before they enter the store, and increasingly decide what to buy when at home or on-the-go. Yet traditional marketing outside the store more often than not targets consumers with traditional brand marketing designed to build awareness, rather than offer a specific call to action or directly influence their decision making process.

• The advent of digital media and digital marketing can now help facilitate a greater number of touch points with the consumer in shopper mode, making the concept of the path to purchase extending beyond the store environment of even greater importance. Digital marketing introduces the opportunity for FMCGs and retailers to more readily communicate with consumers as shoppers both before, during and after their visit to the supermarket.

• While ‘digital shopper marketing’ (DSM) is therefore in essence just traditional shopper marketing using digital media as the methods of distribution, the role of the ‘extended’ path to purchase becomes much more apparent. Essentially, it enables marketers to look beyond traditional above the line marketing via mass media, to a world where personalisation and the ability to connect more directly the consumer as a shopper outside the store is possible.

Shopper marketing traditionally focuses on marketing actually in the retail environment. Initiatives seek to target the consumer in shopper mode while they are in the store, and are designed to influence their decision making process up to the point of purchase.

Digital shopper marketing: definition and scope

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At Home

•Printable vouchers by e-mail•Latest offers by e-mail circular

•Price comparison websites•Voucher aggregation websites

•Brand ‘microsites’•User reviews•Digital shopping list & online basket management

•Social media based shopping•Recipes and suggestions on brand and retailer websites

•Brand and product news by e-mail

On-the-go*

•Vouchers delivered to smartphone apps

•Macro-location based offers•Store and product finders•Add items to your digital shopping list / online basket on the move by scanning with your phone.

•User reviews and price comparisons on the go.

•Mobile friendly brand and retailer websites

•Social media based shopping on-the-go

•Check loyalty points balance on-the-go

•Text message alerts about the latest offers

In-store

•Vouchers delivered to smartphone apps based on micro-location

•Special offers via digital signage, touchscreens and in-store TV

•Self service checkouts•Printable vouchers and offers at digital kiosks

•Demonstrations on monitors and screens.

•Enhanced product information via on-pack SMS or barcode using mobile phone.

•Competitions on-pack via SMS

•Price and stock check using digital scanners

•User reviews on demand via mobile phone.

•Handheld scanning to reduce checkout time.

Digital shopper marketing and the ‘extended’ path to purchase

Source: Evolution Insights

* With the rise of intelligent mobile devices and smartphones, the application of many of these initiatives increasingly extends throughout the entire path to purchase.


Benefits

Engage more directly with consumers as

shoppers outside the

store Reach shoppers who use traditional

media less

Drive brand consideration

and loyalty through targeted

vouchers and offers

Capture shopper

preferences & habits via opt

in schemesBreak down the ‘marketing

is intrusive’ barrier with

improved personalisation

Improve response rate and ability to

measure return on investment

Improve shopper

involvement and use of

loyalty schemes

Influence shopping list and basket before the

shopper enters the store

Digital shopper marketing presents a number of key benefits for retailers and manufacturers of consumer goods alike.

Digital shopper marketing: benefits

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• There are strong opportunities for digital shopper marketing in food & grocery. E-mail, SMS, websites and smartphone applications can enable targeted, personalised marketing messages reach the grocery consumer in shopper mode, both inside and outside of the supermarket.

• Moreover, since digital shopper marketing allows for improved targeting of shoppers, the results - and ultimately the return on investment - are often easier to measure.

Benefits of digital shopper marketing



• Digital shopper marketing should not be confused with the use of digital media for consumer marketing, although the opportunities for integrated consumer and shopper marketing campaigns are notable.

• Digital consumer marketing is particularly prevalent with social media. Brands and retailers are increasingly utilising social media to connect with consumers, reinforce brand awareness and build emotional loyalty. Social networking sites like Facebook in particular allows brands to engage and communicate directly with consumers, keeping their brand relevant by imagery and association, and offsetting the decline in use of traditional mass media channels. With over half a billion users worldwide, it is easy to see why Coca Cola has over 11 million followers on Facebook.

• Yet much fewer manufacturers, retailers and brands utilise social media for shopper marketing. Two good examples however of brands that have begun to utilise the shopper marketing and sales potential of Facebook are P&G’s Max Factor, and Hallmark cards. Facebook users are able to purchase Max Factor products directly through Facebook utilising an application portal, while Hallmark offers a similar opportunity for fans to purchase both physical and electronic greetings cards for their friends offline and online. Hallmark even offer free credit up front once the shopper has added the application to their Facebook profile, opting to disclose their profile details in doing so.

• At Evolution we believe there is an opportunity for food & grocery brands and retailers to deliver shopper marketing campaigns directly to Facebook users, intended to influence their decision making process and purchasing. This might range from digital voucher distribution and sales promotions to complete e-commerce portals contained within the Facebook platform. Of course we also believe there remains a particularly important role for social media and consumer marketing - the opportunity it provides for engaging consumers in brands will ultimately lead to inclusion within the shopper’s brand repertoire, and therefore an increased likelihood of purchase when in the store.

Digital marketing in food and grocery spans both consumer and shopper. Here we consider the differences, and in particular the role of social media.

Digital shopper marketing: consumer versus shopper

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Nestle’s Facebook site focuses largely on connecting with consumers, reinforcing reputation and building brand awareness and loyalty.

P&G’s Max Factor Facebook page incorporates a shopping application that allows followers to

buy their products directly from Facebook.

Hallmark’s social calendar

application enables users to purchase

greetings cards without leaving the Facebook platform.


• M-commerce is of particular importance to the digital shopper marketing landscape since it provides a platform for the increasing acceptance of mobile based shopper marketing. The advent of smartphones such as the iPhone in particular have helped generate a huge increase in m-commerce related activity, and recent statistics show that mobile internet is growing faster today than desktop internet did back in the day.

• A number of different digital shopper marketing initiatives in grocery can be considered in the context of mobile marketing. These range from digital vouchers and rewards points, location based targeting and the provision of enhanced product information, to the integration of marketing with digital shopping list management, and online shopping using mobile friendly websites or ‘apps’.

• To date, many in the industry consider mobile marketing a particularly effective means for targeting consumers and shoppers with personalised marketing campaigns, and are reporting higher responses rates and return than traditional marketing. However, many shoppers consider their mobile as highly personal to them, and marketers should not underestimate the level of intrusiveness many might associate with poorly targeted campaigns.

• Our research suggests that shoppers perceive a big difference between ‘bog standard marketing offers’ and initiatives that offer genuine value and engagement at a conversational level, when it comes to their mobile phone. Some of the most appealing initiatives our shopper research has identified relate more to the convenience and solutions they offer the shopping experience – for example digital shopping list management. FMCGs and retailers should carefully consider their objective when considering the use of mobile, and seek to balance marketing messages with value in order to find their way successfully onto the shopper’s phone. Unfortunately, the fragmentation and proprietary nature of different technologies and platforms complicate the challenge further .

• One interesting characteristic of mobile shopper marketing that many believe can assist in improving relevance is location based targeting, whether this be on a macro or micro level, and whether it be in the context of push or pull marketing. While macro based targeting might enable an FMCG or retailer to offer the latest local deals to shoppers, micro based targeting can enable location based targeting from a ‘timing’ perspective – for example by pushing the latest offers to the shopper as they actually enter the supermarket.

With the rise of internet connected mobile devices and the resultant growth in mobile commerce, many brands, manufacturers and retailers are seeking to exploit the opportunities mobile marketing offers for grocery shopper marketing.

Digital shopper marketing: the role of mobile

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With over 250,000 ‘apps’ available in Apple’s iPhone store, and 6.5bn apps downloaded to date, the challenge for retailers and FMCGs is to be heard. Despite this, smartphone apps present a huge opportunity to integrate marketing into grocery shopping apps that offer the shopper value beyond traditional marketing - such as list management, store finders and recipe suggestions.

More traditional push SMS marketing relies on shoppers

choosing to opt in to receive the service, and our research

suggests many consider this form of marketing intrusive unless it is

highly personalised

Tesco chose Nokia’s OVI app store for the launch of its recent online grocery shopping application that enables digital marketing to be targeted at consumers in ‘shopping mode’


Digital shopper marketing: a framework

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•Coupons and offers•Loyalty points rewards•Product information•Recipe suggestions•Competitions• Improving shopping experience

Initiative

•Push vs. pull/search•Location and timing•Personalisation vs. one size fits all

Reach

•Supermarket retailer•FMCG manufacturer•Loyalty scheme operator•Social network•Third party website operator•Third party smartphone app

Provider

•SMS•Smartphone app•E-mail (mobile devices or PCs)•Website (mobile devices or PCs)•Digital signage and touchscreens•In-store TV and monitors•Barcodes•In-store kiosks

Media

• Digital shopper marketing initiatives can be effectively considered in terms of four key dimensions; the shopper marketing initiative itself, the method of reaching shoppers, the provider or platform (the body with whom the shopper directly engages with), and the digital media utilised.

• At the simplest level digital shopper marketing initiatives share the same characteristics as traditional shopper marketing initiatives, and this aspect can be separated from the way in which the initiative is targeted at the shopper. Initiatives range from coupons, special offers and loyalty rewards to enhanced product information, recipe suggestions and even initiatives that seek to improve the shoppers experience (for example by making their grocery shopping easier).

• The method of reach becomes more important for digital shopper marketing initiatives, as the ability for example to push personalised content to a shopper based upon their geographical location becomes a reality. However the choice between push and pull, location, timing and extent of personalisation can depend upon the chosen initiative and its target audience.

• Another characteristic of the world of digital media and digital marketing is the variation among different ‘providers’ from the shopper’s perspective. E-commerce and m-commerce have opened up opportunities for social network platforms, third party website intermediaries (for example mysupermarket.co.uk) and even third party smartphone app developers (for example vouchercloud) to engage directly with shoppers. From the shopper perspective, the provider is the platform whom they interact with directly (even if the ultimate provider of content remains the retailer or FMCG) and this increasingly becomes fragmented with the take up of digital media.

• The digital media itself used to target the marketing campaign at the shopper also varies and offers differing characteristics that are useful for targeting different types of shoppers, and in different circumstances. Digital media and digital shopper marketing does focus primarily on use of the internet on a PC or mobile, but it also extends to both traditional text messaging (SMS) and digital signs, screens and interactive TV.

Our 4-dimensional framework presents a simple method for considering the digital shopper marketing landscape.

Digital shopper marketing: a framework

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Evolution’s framework for digital shopper marketing


Shopper marketing initiatives

Coupons and offers

Loyalty point rewards

Product information

Recipe suggestions

Competitions

Improving shopping

experience

• Shopper marketing initiatives range considerably, from coupons, special offers and loyalty rewards to enhanced product information and recipe suggestions – and more. They share the same ultimate goal however, to influence shoppers’ decision making process along their path to purchase. With the advent of digital media, while the methods of reach, providers of content and technologies differ, the actual initiatives can still be thought of in the same way.

• For example, while traditional coupons and offers are targeted at shoppers through mailings, newspapers, traditional signs and leaflets in store, digital coupons and offers are delivered by e-mail, SMS, websites, smartphone apps and digital screens in-store. The method of reach, provider and ability to measure return on investment are all enhanced but nevertheless the fundamental initiative remains a coupon or special offer.

• Two groups of initiatives that are particularly suited to digital media - in addition to digital coupons, offers and points rewards - are enhanced product information and improving the shopping experience.

• Product information can range from detailed nutritional content and health advice to price comparison, user reviews and product locators. Digital media enables marketers to target shoppers with highly personalised content, in turn influencing the shopper’s decision making process.

• Improving the shopping experience through the use of digital media is a broad concept. Potential initiatives range from digital shopping list management and ‘apps’ that allow shoppers to scan items and add them to their basket, to self service checkouts and even hand held scanners that enable shoppers to checkout items as they add them to their trolley - negating the need to queue at the supermarket checkout.

• Integration of different initiatives is also enhanced through the use of digital media. Marketers can for example link redemption of digital coupons with loyalty schemes, or even special offers directly with digital shopping lists or online baskets.

At an initiative level, digital shopper marketing initiatives can be thought of in the same way as traditional shopper marketing initiatives.

Digital shopper marketing: a framework – shopper marketing initiatives

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Shopper marketing initiatives


• Push versus pull marketing is of particular relevance with digital media. Push digital shopper marketing involves the marketer sending content to the shopper, while pull involves the shopper choosing to seek content on demand. Traditional shopper marketing in grocery is largely push oriented in the store, and e-mail and SMS are two obvious examples of push digital media. Internet websites and smartphone applications in contrast are typical examples of pull digital media (although smartphone apps are now increasingly incorporating push functionality).

• Both methods have their pros and cons. Push digital marketing is almost always reliant on some form of opt-in on behalf of the shopper, which in turn allows for improved personalisation (relevance) of content. However many shoppers consider push marketing intrusive and this can lead to a negative impact. Pull digital marketing is often more attractive from the shopper perspective since they choose when they wish to access the content, and can still allow for collection of data when content is requested, yet it relies on the shopper to act.

• Either way, digital media allows for enhanced targeting of relevant content to shoppers, in particular where the shopper chooses to opt-in in order to receive the incentives. Whether it be via registration for a loyalty scheme, online grocery mailing list, voucher website or ‘app’, or even a competition; the extent of personalisation made possible through this - combined with the capabilities of technology - can allow marketers to greatly improve the effectiveness of shopper marketing initiatives.

• Location and timing are also enhanced with the advent of digital media. In the world of m-commerce, location enabled mobile devices and their apps can allow for push shopper marketing based upon micro-location, for example as the shopper enters the supermarket. Even where technology remains constrained from a push perspective, location based marketing based on pull technology is still of importance. The ability for shoppers to pull the latest coupons on their mobile device when they enter the store is an equally important angle of location based marketing. Marketers should also not overlook the timing aspect of location, with e-mail for example enabling push marketing at certain times of the week.

Digital media allows for enhanced methods for reaching the shopper at the right time, in the right place, and with the right content.

Push Pull

Digital shopper marketing: a framework – methods of reach

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One size fits all

PersonalisationDelivered to the shopper while they are actually in the storeDelivered to the shopper while they are near the store

Delivered at any time and any place

Methods of reach



Supermarket retailer

FMCG manufacturer

Loyalty scheme operator

Third party intermediary website

(for example mysupermarket.co.uk

)

Third party ‘app’ developer (for

example Vouchercloud,

Redlaser)

Social network (for example Facebook, Twitter, Foursquare)

Online retailer or payment service (for

example ebay, paypal, rightcliq)

• E-commerce and m-commerce have opened up opportunities for social network platforms, third party website intermediaries (for example mysupermarket.co.uk) and even third party smartphone app developers (for example vouchercloud) to engage directly with shoppers.

• Marketers should consider which digital platform offers the best reach for their target shoppers, and whether to act as a provider whom directly engages with the shopper or to utilise an alternative platform as the interface.

• Sainsbury’s and Nectar have for example recently launched two versions of the same iPhone app, one badged by Sainsbury’s and the other by Nectar. The app allows shoppers to pull personalised offers, coupons and points rewards using their iPhone wherever and whenever they are, and yet targets both shoppers who identify with Sainsbury’s and those who identify with Nectar.

• Third party apps and websites offering grocery coupons, offers, price comparison and user reviews are also commonplace. These offer a more effective means for shoppers to find everything they need in one place, and marketers should consider whether they offer an alternative or an addition to direct communication with shoppers.

• Social networking platforms have seen an unprecedented explosion in take up in recent times, none more so than Facebook. Originally intended for social activities, Facebook is increasingly becoming a platform for marketing in retail with huge potential for personalisation and targeting, and over half a billion users worldwide. While much activity to date has taken the form of more traditional consumer oriented brand marketing; platforms like Facebook and Twitter – plus location aware platforms such as Foursquare and Gowalla, present an interesting opportunity for targeting consumers as shoppers with a call to action. While a shopper may not consider visiting cokezone.com to collect points from their purchases, many Coca Cola shoppers do visit Facebook.

• Ease of shopping is also an important aspect of effective digital shopper marketing and one that isn’t necessarily achieved by individual FMCGs creating their own e-commerce sites. Nor is a shopper likely to choose your product or store over an alternative if the benefit is marginal but the extra factor hassle is high. Online payment service Rightcliq from Visa for example seeks to bring together enhanced product information, the latest offers, online shopping list management and payment services under one easy to use banner.

From the shopper perspective, the provider is the platform whom they interact with directly (even if the ultimate provider of content remains the retailer or FMCG) , and this is becoming increasingly fragmented with the take up of digital media.

Digital shopper marketing: a framework - provider

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Platforms and providers of content


http://www.nectar.com/

http://www.mysupermarket.co.uk/

http://www.facebook.com/playfoursquare

http://twitter.com/foursquare

https://rightcliq.visa.com/ECSWebApp/enroll/welcome.go

http://www.myvouchercodes.co.uk/

http://www.tesco.com/clubcard/clubcard/

https://www.paypal.com/uk/cgi-bin/webscr?cmd=_home

http://www.unilever.co.uk/

http://www.sainsburys.co.uk/sol/index.jsp?GLOBAL_DATA._searchType=0


• Digital shopper marketing to date has focused primarily on the use of the internet on a PC or mobile device, with media such as e-mail, websites and ‘apps’ supporting the most activity. However digital media also extends beyond the internet both towards simpler SMS text messaging, and towards digital signs, screens and interactive TV in-store. In fact, some of the earliest digital shopper marketing campaigns relate to the use of in-store television and mass push marketing, with little in the way of targeting or ability to measure ROI.

• The rise of advanced mobile devices such as smartphones however now offers a particular opportunity with internet connected ‘apps’, e-mail and mobile optimised websites including social network platforms. Mobile marketing and m-commerce is perhaps the most exciting and promising angle of digital shopper marketing, due primarily to its ability to target all different types of shopper marketing initiatives in a highly personalised format, down to a micro-location and at any time. Perhaps most importantly, it enables the marketer to target campaigns designed to influence shoppers with a call to action outside of the store.

• Despite this particularly important role of m-commerce and the advent of smartphone technology however, many grocery shoppers have yet to enter the upgrade curve and many more are yet to be convinced of the merits of using mobile devices for anything beyond phone calls and text messaging. ‘Old fashioned’ e-mail and SMS remain two of the most accessible digital media for communicating with the majority of shoppers, and marketers should be careful to balance efforts to innovate around the latest technology with the interests and needs of their target segments.

The choice of digital media used to target the shopper varies, offering differing characteristics that are useful for targeting different types of shoppers, and in different circumstances.

Digital shopper marketing: a framework - media

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Smartphones bring e-mail, websites and apps to mobile devices

Smartphone apps can offer shoppers the latest personalised coupons, offers and points rewards based on their shopping habits and location

E-mail remains one of the most popular digital media for push

marketing

Digital media also extends to in-store scanners and screens.


Mysupermarket.co.uk

Price comparison and offers

Pull marketing, one size fits all

Third party intermediary website

Internet website

Digital shopper marketing: the framework applied

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Walmart TV Network

Special offers and product information

Push marketing, one size fits all


Digital screens in-store

Nectar iPhone app

Special offers, points rewards and store locator

Pull marketing, with location services, high

personalisation

Supermarket retailer and loyalty scheme operator

Smartphone application

Vouchercloud app

Coupons and offers

Pull marketing, with location services

Third party app developer


Tesco.com mailing list

Coupons, offers and points rewards

Push marketing, low personalisation


E-mail

The Co-op iPhone app

Product information

Pull marketing, one size fits all



Tesco iPhone app

Digital shopping list scanning & management,

product information

Pull marketing



Evolution’s framework can be applied to a full range of different digital shopper marketing initiatives.


Digital shopper marketing: in action

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The rapid adoption of smartphones in the UK - driven in particular by Apple’s iPhone and the AppStore - presents a range of digital shopper marketing opportunities through the use of ‘apps’. Shoppers can download apps that find enhanced product information, locate stores, check product availability, compare prices, help create and manage shopping lists, check loyalty points and even play branded games.

Digital shopper marketing: in action – smartphone apps

Some of the UK’s major grocery retailers already offer a variety of smartphone apps that present shoppers with enhanced product information, recipe suggestions, digital shopping list management and the latest offers, vouchers and reward points

Apps like Redlaser and QR scanner are able to utilise

smartphone cameras to scan barcodes to retrieve product information and add items to

digital lists and baskets

Vouchercloud is a popular third party app that aggregates the latest vouchers and

offers in retail, including food & grocery – and presents them to the shopper based

upon their location. Loopt, a social networking app, also presents the latest

vouchers and offers based upon GPS location

The Tesco Clubcard app for Blackberry and iPhone allows shoppers to replace their plastic card and check their balance in-store.

Some FMCGs have launched branded game apps for smartphones that bridge the gap between

consumer and shopper marketing.

Target’s iPhone app combines barcode scanning, digital shopping lists, SMS vouchers, the latest

offers based on location and more!


Websites range from brand microsites and Facebook pages, to mobile phone optimised shopping sites, price comparison independents, voucher code aggregators and even digital shopping list management sites.

Digital shopper marketing: in action – websites

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Price comparison, voucher aggregation and online shopping websites like mysupermarket.co.uk and myvouchercodes.co.uk are popular among many grocery shoppers.

Visa’s Rightcliq is an innovative new website that combines enhanced product information, the latest

offers, online shopping list management and payment services under one easy to use banner.

Facebook pages range from the more ‘traditional’ brand awareness campaigns to distribution of offers

and vouchers, and even fully integrated e- commerce portals

Kroger’s digital coupons website enables loyalty card owners to browse and select coupons for

products online, and automatically transfer them to their loyalty card to redeem next time they are

in-store.

While brand microsites typically focus on reinforcing emotional brand loyalty through traditional consumer marketing, they often bridge the gap between consumer and shopper marketing with incentives, points rewards

and competitions linked to repeat purchasing in-store

Mobile optimised sites like Sephora’s e-commerce portal offer a platform independent

alternative to smartphone apps, making digital shopper

marketing campaigns more accessible to a wider base of

smartphone users.

https://customer.kroger.com/programs/digitalCoupons.aspx?Banner=Kroger


Retailers and manufacturers in grocery can make use of both e-mail and SMS text messaging in support of a range of digital shopper marketing initiatives - ranging from voucher and offer distribution to competitions advertised on-pack.

Digital shopper marketing: in action – text messaging and e-mail

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Supermarket retailers such as Asda in the UK and Target in the USA allow shoppers to sign up to receive the latest grocery offers and vouchers

by SMS direct to their mobile.

Brands like Powerade have offered shoppers

the opportunity to enter competitions

advertised on-pack via SMS.

Kellogg’s Squares’ brand used SMS to deliver an on-pack promotion that

offered shoppers the chance to win a holiday - but also rewarded them with a

coupon on their mobile for a free Sqaures bar, which they could redeem via a local

PayPoint kiosk.

Walmart and Kimberly Clark launched a Huggies Pull-up’s SMS campaign in the US. Parents text a number given

on the pack for their child to receive a call back from their favourite Disney

character. The campaign offers shoppers a strong point of

differentiation at the fixture.

Tesco utilises e-mail marketing as a way to communicate directly with its online grocery shoppers, presenting the latest

offers, vouchers and recipe suggestions .


Digital shopper marketing extends beyond internet connected devices to include digital signage, screens and kiosks in-store. Shopper marketing initiatives that utilise these technologies in grocery to date range from price and stock check, and offers – to coupon dispensing, recipe suggestions and product locators.

Digital shopper marketing: in action – digital signage, screens and kiosks

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Tesco Screens, the in-store TV network deployed by Tesco, was used to target shoppers with the latest deal and offers - but was criticised for the positioning of its screens outside of the shopper’s typical field of vision, and was later decommissioned.

Canada’s metro supermarket chain offers recipe suggestions and a product locator through

its digital kiosks in-store.

7-Eleven TV in the USA is one of the more extensive and successful in-store TV

networks that is used to target the latest offers to shoppers while they walk around

the store.

Asda’s venture with Amstrad, known as AmScreen, is being trialled in select stores offering product and pricing information. Convenience store operator SPAR has also rolled out an in-store TV network through its stores.

Target in the USA and some Tesco Extra stores in the UK offer a fixed price and

stock check scanner attached to the fixture, which enables shoppers to check

the price of a product in-store.

http://www.amscreen.co.uk/screen-media/client_networks_videos.html#asda

http://www.dailydooh.com/wp-content/uploads/2010/04/metro.jpg


• Detailed shopper insights were gained from a survey of 1,546 UK adults who say they regularly shop for food and grocery. The samples were fully representative of the UK population.

• The survey contained 15 questions relating to technology ownership and usage; awareness, usage & appeal of digital shopper marketing initiatives, perspectives on barriers, incentives and methods of reach – in addition to standard demographic profiling questions.

• The questions were designed to give maximum insight into shoppers perspective on their awareness, usage and appeal of digital shopper marketing initiatives in food and grocery.

• The survey was undertaken by PCP Market Research Consultants on behalf of Evolution Insights. PCP is a company partner of the MRS and is therefore bound by the MRS code of conduct.

• The survey was carried out online during the week commencing 9th August 2010.

Methodology: quantitative survey

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Themes including personalisation, disclosure of information, push versus pull marketing and location based marketing

Perspective on incentives

Barriers to adoption

General perspective on the use of digital media for food & grocery marketing

Perspectives on provider and platform trust

Perspectives on preferred location and timing

Awareness, usage and appeal of a variety of different digital shopper marketing initiatives in food and grocery

Main supermarket retailer used for grocery shopping

Ownership and usage of technology including smartphones

Demographic profiling

Topics of questions in quantitative survey


Glossary

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3G – Third generation mobile phone network capable of improved data connectivity2G – Second generation (GSM) mobile phone network technologyABC1C2DE – Socio demographic profile using job type (if applicable).Above the line (ATL) – Advertising using the main 5 media types of television, press, radio, cinema, and posters to promote brands.App – A smartphone applicationBelow the line (BTL) – Advertising using non-media communication. Typically sales promotions as short-term incentives, largely aimed at consumers in-store.Big Four – The largest four grocer retailers in the UK by market share.Category driver – key influences driving the growth of any given categoryChannel – Retail distribution type for example supermarket, c-store, CTNCircumstances – The circumstances of the shopper when they undertake their shopDemographic – Characteristics of the population (including sex, race, age and income).Digital media – digital marketing medium for example social media, mobile, digital signage.Digital shopper marketing – Shopper marketing that utilises digital mediaDSM – Digital shopper marketingEAN – European Article Number (barcode standard)E-commerce - buying and selling of products or services over electronic systems such as the Internet and other computer networksePOS – electronic point of sale system, e.g. checkout technologyEDLP – Everyday low prices.FMCG – Fast moving consumer goods, often used to refer to a manufacturer.Food and grocery - Foodstuffs and various household suppliesGondola end - The promotional position at the end of a main aisle.GPS – global positioning system (technology incorporated into mobile devices for geographic location identification and tracking)Impulse – A sudden wish or urge that prompts an unplanned act or feeling.Location based delivery – delivery of marketing to mobile devices based upon GPS locationM-commerce - buying and selling of products or services over mobile electronic systems such as the smartphonesMicrosite – Internet website dedicated to a particular brand, using a different (branded) URLModality – The way a shopper behaves in-storeOn-the-go – Buying any food and/or drink for immediate consumption, i.e. outside the homePersonalisation – Targeting of marketing campaigns to individuals based upon detailed information about their demographic and shopping habits

POP – Point of purchasePOS – Point of salePOS Material– Marketing communications at the point of sale.Push delivery – delivery where content is sent to the recipient without their interaction at the time of deliveryPull delivery – delivery where content is requested by the recipient reactively.QR code – Quick response code (new form of 2D barcode that carries more information)Revenue – Total reported turnover (excluding VAT).ROI – Return on investmentShopper marketing – Any marketing activity aimed at the shopper throughout their path to purchase.Shopper mission – the reason/purpose of the shopping trip from the shopper’s perspective.Smartphone – An internet enabled mobile phone device that runs applications (‘apps’).SMS – Short message service (mobile text messaging)Socio-demographic - Characteristics of the population (including sex, race, age and income).Social network – electronic social interaction platform for example Facebook, TwitterURL – Uniform resource locator (web standard for internet website addressing)

• Evolution offer a range of products & services for clients in the field of shopper research:-

• Off-the-shelf research

– Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery

• Insight Plus

– Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs

• Bespoke Consulting

– As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements.

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies.

Further information is available at our website http://www.evolution-insights.comVisit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues

About Evolution Insights

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As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.

Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase.

We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques.



Contents

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Key findings and summary 9 Usage of mobile apps, by demographic 49Usage of mobile phones, cont. 50

Digital shopper marketing: introduction 19 Usage of marketing initiatives on mobile phones, by demographic 51Digital media and digital marketing: definition 20Digital shopper marketing: definition and scope 21 Digital shopper marketing: outlook and forecast 53Digital shopper marketing: benefits 22 Winning over baby boomers key to success 54Digital shopper marketing: consumer versus shopper 23 Five year forecast 55Digital shopper marketing: the role of mobile 24

Digital shopper marketing: the shopper perspective at a glance 56Digital shopper marketing: a framework 25 Awareness and usage of different initiatives 57Shopper marketing initiatives 26 Appeal of different initiatives 58Methods of reach 28 Key initiatives 59Providers and platforms 29 Outlook for growth 60Types of digital media 30 General shopper appeal of digital marketing 61The framework applied - examples 31 Barriers 63

Overcoming barriers 65Digital shopper marketing: in action 32 Shopper preferences 66Smartphone apps 33 Incentives 67Websites 34 FMCGs as providers of content 68Text messaging and e-mail 35Digital signage, screens and kiosks 36 Digital shopper marketing: the shopper perspective in detail 69

Digital shopper marketing: emerging technologies 37 Initiatives in detail: digital coupons and offers 70GPS location and barcode scanning 38 Definition 71Social media and e-commerce 39 Methods of delivery 72

Benefits 75Digital shopper marketing and mobile: macro drivers and trends 40 Trends and issues 76UK internet access 42UK mobile penetration 43 Initiatives in detail: digital coupons and offers - the shopper perspective 77Ownership of mobile phones 44 Appeal and relevance 78Ownership of smartphones, by demographic 45 Personalisation, opting in and disclosure of information 79Ownership of smartphones, by retailer 46 Appeal, by demographic and retailer 81Usage of mobile phones 47 Push versus pull delivery 82Usage of mobile internet, by demographic 48 Location based delivery 85

Location based delivery and timing 87Location based delivery, macro versus micro location 89


Contents (2)

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Location based delivery and choice 90 Initiatives in detail: enhanced product information – the shopper perspective

128

Perspective on different providers and platforms 91 Price check and comparison 129Mobile versus desktop devices 95 Recipes and meal suggestions 132Mobile transfer and redemption 97 Personalised health and allergy recommendations 134

Nutritional and calorific content 135Initiatives in detail: loyalty point schemes 98 User reviews 136Definition 99Methods of delivery 100 Initiatives in detail: improving the shopper experience 137Examples of use 101 Definition 138Benefits 102 Finding items in-store 139Barriers 103 Smartphone checkout 140Innovation 104

Methodology 141Initiatives in detail: loyalty point schemes – the shopper perspective 105 Quantitative survey 143Virtual loyalty cards 106 Qualitative focus groups 144Checking loyalty points balance 107Earning additional loyalty points 108 Glossary 145Finding information about products and loyalty points 109

Initiatives in detail: digital list and basket management 110Definition 111Benefits 112Issues and trends 113Examples of use 115

Initiatives in detail: digital list and basket management – the shopper perspective

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Using digital shopping lists 117Building digital shopping lists 118Integrating digital shopping lists with online baskets 119Additional features 120Pros and cons analysis of different providers and platforms 121

Initiatives in detail: enhanced product information 123Definition 124Methods of delivery 125Benefits 127


Figures & Graphs

PageTypeTitle

21 Figure Digital shopper marketing and the extended path to purchase

22 Figure Evolutions ‘Benefits of digital shopper marketing’

26 Figure Evolutions ‘Framework for digital shopper marketing’

27 Figure Shopper marketing initiatives

28 Figure Methods of digital shopper marketing reach

31 Figure Evolutions framework for digital shopper marketing – applied to practical examples39 Graph Proportion of time spent social networking, by device39 Table Top UK mobile Internet sites, December 200942 Graph UK household Internet penetration 2006-201042 Graph Home internet access, by demographic, 2009 and 201042 Graph Proportion of UK adults using the Internet every day, 2006 - 201043 Graph Mobile phone penetration, Q1 2010, by age group43 Graph Number of smartphone users and penetration of smartphones in the UK, 2008 Q1 to 2010 Q2

44 Graph Mobile phone ownership in the UK

44 Graph Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own any sort of mobile phone’, by demographic

45 Graph Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own a smartphone’, by demographic45 Graph Active connections, 3G mobile and home Internet, 2004 - 2009

46 Graph Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own a smartphone’, by retailer

47 Graph UK adults - Usage of technology47 Graph UK adults using a mobile phone to access the Internet growth index

48 Graph Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own any sort of mobile and use internet on it’, by demographics

48 Graph Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own a smartphone - and use internet on it’, by demographics

49 Graph Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own any sort of mobile and use ‘apps’ on it’, by demographics

49 Graph Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own a smartphone - and use ‘apps’ on it’, by demographics50 Graph Proportion of UK adults who rate specific technologies as ‘important’

50 Graph Importance of specific technologies

51 Graph Penetration of UK adults who shop grocery regularly and say that being able to purchase items on their mobile is important, by demographic

51 Graph Penetration of UK adults who shop grocery regularly and say that being able to find product information on their mobile is important, by demographic

52 Graph Penetration of UK adults who shop grocery regularly and say that being able to find offers on their mobile is important, by demographic

52 Graph Penetration of UK adults who shop grocery regularly and say that internet on their mobile while in the supermarket is important, by demographic54 Figure UK population age profile, 2010 estimate and 2015 projection

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Figures & Graphs (2)

PageTypeTitle

55 Figure Mobile phone penetration, smartphone penetration and overall appeal of DSM, 2008 – 2010 and forecast to 201557 Graph Awareness of digital shopper marketing initiatives57 Graph Usage of digital shopper marketing initiatives58 Graph Appeal of digital shopper marketing initiatives

59 Figure Evolution’s digital shopper marketing ‘potential matrix’

60 Figure Evolution’s digital shopper marketing ‘potential matrix’-outlook for growth

61 Graph General appeal of digital shopper marketing among shoppers in food and grocery

62 Graph Penetration of those who said they would never consider digital shopper marketing, by demographics

62 Graph Penetration of those who said they would never consider digital shopper marketing, by retailer

63 Graph ‘Hard’ barriers to adoption of digital shopper marketing

65 Graph Shoppers perspective on overcoming receiving digital shopper marketing communications

65 Graph Proportion of shoppers who believe no initiative would overcome their barriers

66 Graph Preferences of shoppers regarding methods of digital shopper marketing delivery

68 Graph Shoppers perspective on the appeal of receiving digital shopper marketing directly from a brand manufacturer

71 Figure Different forms of ‘digital’ coupons, and offers

75 Figure Benefits of digital ‘vouchers’ or ‘coupons’

76 Graph Out of store influences when selecting brands

76 Figure Different forms of mobile digital coupons

78 Graph Shopper perspective on receiving coupons & offers on mobile or desktop device

79 Graph Shopper perspective on opting in to receive coupons & offers on mobile or PC

81 Graph Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by demographic

81 Graph Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by retailer

82 Graph Shopper perspective on opting in and push versus pull in relation to receiving digital coupons and offers

84 Graph Relative appeal of different digital coupon initiatives

87 Graph Perspective on receiving coupons & offers on mobile or desktop device

88 Graph Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by demographic

88 Graph Relative appeal of different digital coupon initiatives

89 Graph Relative appeal of different digital coupon initiatives (2)

91 Graph Relative trust of different potential providers of coupons & offers to mobile or desktop device

99 Figure Different forms of ‘digital loyalty schemes’

102 Figure Benefits of digital loyalty schemes

103 Graph Appeal of digital coupon related shopper marketing initiatives, by mobile phone ownership

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Figures & Graphs (3)

PageTypeTitle

103 Graph Average awareness & usage of loyalty points related shopper marketing initiatives

106 Graph Appeal of redeeming loyalty points using a mobile (virtual loyalty card)

107 Graph Appeal of checking for loyalty points in store using a mobile

107 Graph Awareness & usage of initiative

108 Graph Appeal of earning additional loyalty points from products using your mobile

109 Graph Appeal of digital loyalty point’s initiatives

111 Figure Different forms of ‘digital list and basket management schemes’

112 Figure Benefits of digital loyalty schemes

113 Figure Barriers to use of digital shopping lists and online shopping baskets

117 Graph Digital shopping list initiatives

118 Graph Building shopping lists using mobile devices - initiatives

119 Graph Creating online shopping baskets using mobile devices - initiatives

124 Figure Different forms of enhanced product information initiatives

127 Figure Benefits of digital media for use with product information initiatives

129 Graph Proportion of shoppers who find digital price check and comparison ‘appealing’

129 Graph Proportion of shoppers who find digital price check and comparison ‘appealing’, by demographic

130 Graph Proportion of shoppers who find digital price check and comparison ‘appealing’ (2)

130 Graph Proportion of shoppers who find digital price check and comparison ‘appealing’ (2), by mobile ownership

132 Graph Proportion of shoppers who find recipe and meal suggestions ‘appealing’

132 Graph Proportion of shoppers who find recipe and meal suggestions ‘appealing’, by demographic

134 Graph Proportion of shoppers who find product information ‘appealing’

134 Graph Proportion of shoppers who find product information ‘appealing’, by demographic

135 Graph Proportion of shoppers who find nutritional value information ‘appealing’

135 Graph Proportion of shoppers who find nutritional value information ‘appealing’, by demographic

136 Graph Proportion of shoppers who find user review information ‘appealing’

138 Figure initiatives to improve the shopper experience

139 Graph Appeal of using a mobile to find what you need quicker when you are actually in the supermarket

139 Graph Appeal of using a mobile to find what you need quicker when you are actually in the supermarket’, by age

140 Graph Appeal of using a mobile in the supermarket to checkout item as you put them in your trolley, to save time at the checkout

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Business

Digital Marketing in Food & Grocery: Essential shopper insight into the use of digital media and mobile commerce