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Consumer Consumer Engagement in the Engagement in the
Connected AgeConnected AgeRichard CantwellRichard Cantwell
Chairman – Board of Chairman – Board of Governors,Governors,EPCglobalEPCglobal
MarketingMarketing
A typical scenarioA typical scenario I am an executive at Acme Enterprises.I am an executive at Acme Enterprises. Acme launches a new allergy-free Acme launches a new allergy-free
detergent.detergent. We need consumers to know about this We need consumers to know about this
product.product. How do I reach them?How do I reach them?
(This talk will get to technology… (This talk will get to technology… eventually)eventually)
A history of marketingA history of marketing The “Old Days” (100-150 years ago) The “Old Days” (100-150 years ago) Word of Word of
MouthMouth TargetedTargeted CredibleCredible
2020thth Century Century Mass Media Mass Media TV, Radio, Syndicated PrintTV, Radio, Syndicated Print Everyone received the same messageEveryone received the same message Built big BrandsBuilt big Brands
Today Today Product offerings & target audiences Product offerings & target audiences are are bothboth more segmented more segmented Reaching today’s consumer is a marketing challengeReaching today’s consumer is a marketing challenge
The problemThe problemThe battle for eyeballs:The battle for eyeballs: TV viewer-ship fragmentedTV viewer-ship fragmented Big companies shifting dollars Big companies shifting dollars
out of traditional mediaout of traditional media Internet advertising lacks Internet advertising lacks
meaningful metrics & meaningful metrics & adequate capabilities adequate capabilities (McKinsey, (McKinsey,
8/07)8/07) Other forms of digital media Other forms of digital media
little understoodlittle understood Billboards?Billboards?
Marketing is at a cross-roadsMarketing is at a cross-roads
An answer:An answer: Reach consumers in the storeReach consumers in the store
Pizza Hut ad on the side of a Russian Proton rocket!
The possibilitiesThe possibilitiesInteraction/Interaction/contextcontext
No No interactioninteraction
LocationLocation
(RFID)(RFID)IdentityIdentity
(Loyalty (Loyalty cards)cards)
VideoVideo FixedFixed Cart-videoCart-video
Cycling Cycling advertisementadvertisementss
Video Video attracting you attracting you to items to items related to related to your cart?your cart?
Video Video showing showing product product related to related to previous previous purchases? purchases?
AudioAudio FixedFixed Beamed Beamed
iPod?iPod?
Store Store announcemenannouncementsts
Music in Music in exchange for exchange for location-location-related ads?related ads?
Music related Music related to previous to previous purchases?purchases?
Value-OfferValue-Offer Promotional Promotional announcemenannouncementsts
Offer related Offer related to your to your purchases?purchases?
Promotional Promotional prices & prices & special offers special offers on above?on above?
This is really happeningThis is really happening
I will talk about 3 examplesI will talk about 3 examples Wal-Mart TVWal-Mart TV Smart Shopping CartsSmart Shopping Carts PromotionsPromotions
Wal-Mart TVWal-Mart TV
“… “… the average recall of a brand advertised on Wal-Mart the average recall of a brand advertised on Wal-Mart television is 66%, compared with 24% for brands television is 66%, compared with 24% for brands advertised on in-home television.”advertised on in-home television.”
Customers 15% more likely to buy product today and 25% Customers 15% more likely to buy product today and 25% more likely to buy product in futuremore likely to buy product in future
Sources: Sources: ““Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal
(Sep 22, 2004)(Sep 22, 2004) Research commissioned by Research commissioned by Premier Retail NetworksPremier Retail Networks (PRN) and conducted (PRN) and conducted
by AC Nielsenby AC Nielsen
Displays on the CartDisplays on the Cart
Displays on the Cart: Example ModstreamDisplays on the Cart: Example Modstream
Displays ads on the handleDisplays ads on the handle 5-year life5-year life RF update of messages from one central locationRF update of messages from one central location
Interaction and displayInteraction and display
Media CartMedia Cart
seek
scan navigate
RFID in PromotionsRFID in Promotions
RFID is already being used for RFID is already being used for promotionspromotions
Promotions displays are RFID taggedPromotions displays are RFID tagged Store doors have readersStore doors have readers Display movements are monitoredDisplay movements are monitored Lack of movement is Lack of movement is
detected/correcteddetected/corrected 22% improvement in sales22% improvement in sales
Now add consumer Now add consumer contextcontext
Imagine if the Cart knew:Imagine if the Cart knew: Location from RFID/WiFiLocation from RFID/WiFi Identity from RFIDIdentity from RFID Bluetooth/WiFi to Bluetooth/WiFi to
download audio/video on download audio/video on the flythe fly
Imagine if the display could Imagine if the display could signal:signal:
Rate of sale using Rate of sale using RFID/WiFiRFID/WiFi
Now you could:Now you could: Introduce customers to Introduce customers to
new products, product new products, product categoriescategories
Offer up promotional Offer up promotional pricing & special offerspricing & special offers
Measure efficacy of various Measure efficacy of various promotions & displayspromotions & displays
Do dynamic pricing to Do dynamic pricing to avoid overstocksavoid overstocks
Provide consumer services Provide consumer services like food allergy like food allergy notificationnotification
Further possibilitiesFurther possibilitiesInteraction/Interaction/contextcontext
No No interactioninteraction
LocationLocation
(RFID)(RFID)IdentityIdentity
(Loyalty (Loyalty cards)cards)
ConsumerConsumerBlogging?Blogging?
VideoVideo FixedFixed Cart-videoCart-video
Cycling Cycling advertisementadvertisementss
Video Video attracting you attracting you to items to items related to related to your cart?your cart?
Video showing Video showing product product related to related to previous previous purchases? purchases?
Testimonials?Testimonials?
AudioAudio FixedFixed Beamed Beamed
iPod?iPod?
Store Store announcemenannouncementsts
Music in Music in exchange for exchange for location-location-related ads?related ads?
Music related Music related to previous to previous purchases?purchases?
CommentarieCommentaries?s?
Value-OfferValue-Offer Promotional Promotional announcemenannouncementsts
Offer related Offer related to your to your purchases?purchases?
Promotional Promotional prices & prices & special offers special offers on above?on above?
In-store Consumer In-store Consumer EngagementEngagement
This is an key direction for marketingThis is an key direction for marketing RFID will play a key roleRFID will play a key role
So will other technologies:So will other technologies: WiFiWiFi BluetoothBluetooth GPS?GPS?
How this works is for technologists to How this works is for technologists to figure out figure out
The benefits are huge for everyone!The benefits are huge for everyone!
