The mobile path-to-purchase for Saudi Arabian main shoppers

LONDON - SINGAPORE - DUBAI

OnDeviceResearch.com



February 2017

The mobile path-to-purchase for Saudi Arabian main shoppersKey planning implications for marketers



Now is the time to understand the mobile path-to-purchase!

It is estimated that by the end of 2016, 70.5% of the Saudi Arabian population will own a smartphone,

equating to nearly 20 million people.

Mobile has changed the way consumers behave both online and offline; it has changed how brands

market themselves and in an increasingly fragmented media environment mobile throws up a whole new host of exciting planning implications and considerations that touch all areas of the marketing

process.

This survey aims to unpick how mobile fits in to the path to purchase at all stages in the branding

funnel and to provide actionable recommendations for marketers and brands wanting to take

advantage of mobile marketing to target main shoppers.

The survey also looks at differences between the customers of Saudi Arabia’s major supermarkets:

providing useful planning implications for the supermarkets themselves and also brands distributing their products through these stores.

Sample: 500 smartphone users

Fieldwork dates: 2nd to 14th November 2016

Source: eMarketer 2015





AWARENESS

RESEARCH AND DISCOVERY

PURCHASE

The path to purchase: a well trodden consumer journey from brand awareness, to product research, to purchase and order fulfilment





AWARENESS


PURCHASE



Where are main shoppers buying their household goods?

HyperPanda dominates when it comes to supermarket shopping among main shoppers, but with only

11% saying they shop elsewhere, habits are focused around the thirteen major supermarket brands listed

Base: Main shoppers

11%4%

6%6%7%7%

12%12%

15%17%18%

24%25%

50%

Other

Manuel Super & Hypermarket

Al Sadhan

Grand hypermarket

Nesto Hypermarket

Al Raya

Farm

Bin Dawood

Tamimi

Al Danube

Lulu Hypermarket

Carrefour

Al Othaim

HyperPanda

Which supermarkets have you shopped at in the past month? Base: main shoppers



When talking to main shoppers, mobile offers the frequency of usage to help brands build awareness

91% of main shopper smartphone owners use the mobile internet on a weekly basis (compared to second placed TV on 81%): more than any other form of media. Frequency of exposure to media and advertising builds awareness.

Base: main shoppers, Question: How frequently do you access…

91%81%

77% 76%71%

55%52%

48%

% of users who access media at least once a week

Mobile Web TV Desktop Web On Demand TV Outdoor Radio Newspapers Magazines



Mobile dominates for customers of the big three supermarkets. For Al Othaim, On Demand TV is more popular than desktop web….just

Base: All respondents, Supermarkets shopped in last month. Question: How frequently do you access…

42%

52%

56%

76%

79%

80%

89%

95%Mobile Web

TV

On Demand TV

Desktop Web

Outdoor

Radio

Newspapers

Magazines 38%

49%

56%

73%

75%

80%

81%

94%

45%

52%

52%

72%

75%

83%

86%

97%

% of users who access media at least once a week



On Demand TV viewing is a truly cross device habit

Main shoppers are as likely to watch on demand TV on their smartphone as they are a traditional TV

Base: Main shoppers. Question: How do you watch on demand TV / video

40% 40% 25% 14%

How do you watch on demand TV / video?





1. Frequency: Awareness driving and brand building campaigns are built on

frequency of exposure. Nowhere can you drive frequency faster than with mobile. TV is no longer the medium of choice for main shoppers and marketers should think

beyond traditional channels in their strategic planning.

2. On demand TV: Awareness driving campaigns rely on reach. While still

second to traditional TV in terms of frequency, on demand TV is a mass-media that

cannot be ignored – particularly for Al Othaim’s audience.

3. The on demand mobile video opportunity: The

smartphone is as popular as a traditional TV set for watching on demand. The confluence of mobile and on demand TV represents a still untapped opportunity for

brands to achieve cut through in what is still a relatively nascent market.

Three key learnings for building brand awareness among main shoppers





AWARENESS


PURCHASE





When it comes to researching products to buy the smartphone even beats word of mouth for main shoppers!

Recommendations from friends and family have been supplanted by the smartphone as the channel of choice for product research. The power of physically looking at an item in store should not be overlooked though.

Base: main shoppers

Talk to friends and

family

26%

Use social media / Use

price comparison

sites

22%

Go in to store to look at

items

24%

Read information on my smartphone

27%

1st 2nd 3rd 4th =

Question: When researching a product or service to buy, how do you do it?




OnDeviceResearch.com Base: : main shoppers

1) Go in store2) Friends and

family3) =Smartphone

and Social media

1) Smartphone2) Go in store3) =Price

comparison and Brand websites

1) Social Media2) = Smartphone

and Friends and family

4) Price comparison sites

Question: When researching a product or service to buy, how do you do it?

Planning considerations differ by supermarket. Carrefour’s audience appears to be the most traditional, while for Al Othaim social media comes out on top. Mobile appears in the top four for all brands however.



What information are main shoppers looking for on their phone?

Base: main shoppers

16%

17%

18%

23%

26%

34%

Check product availability

Find if the product is in an alternative shop

Find where an alternative store is

Read product reviews

Check product information

Check prices

When in a store or mall in the past three months have you used your smartphone to…

The rise of showrooming: Searches for prices, product information and reviews all enhance the physical shopping experience



Second screening is a very real phenomenon. Traditional media and digital media can combine to drive product research, especially among Carrefour shoppers

24% of main shoppers have looked up something on their phone which relates to TV adverts they are watching

Base: main shoppers. Question: When watching TV, do you ever:

20%

25%

22%





1) The smartphone is the product research tool: In a world

dominated by an abundance of choice, the smartphone plays a crucial role in keeping main shoppers informed. It is now the dominant method of product research – beating even

word of mouth and visiting an actual store.

2) The rise of showrooming: Over three quarters of smartphone users are

showrooming: enhancing their physical shopping experience with instant mobile

information. Checking prices, product information and reviews are what consumers are looking for on the go while shopping in-store.

3) Multi-screening: The smartphone is a permanent fixture even when consuming other media. When planning TV creative, consider that just under a quarter of

smartphone users search for content related to a TV ad on their smartphone

Three key learnings for driving product research on mobile





AWARENESS


PURCHASE



Main shoppers aren’t shy about making purchases on their smartphone

Base: all respondents; Question: What have you purchased on your smartphone in the past three months?

79% Have purchased a product or service on their smartphone in the past three months

81%

81%

73%Saves me time: 20%

Research on mobile when in store: 19%

Shopping on mobile is convenient: 16%



For main shoppers the supermarket may dominate for food and household product shopping, but the smartphone isn’t far behind, with a quarter purchasing via mobile

24%

14%

25%

6%

58%

29%

Send someone else to do it (e.g. maid)

On the high street

On my smartphone

On my laptop or desktop computer

In a supermarket

In a shopping mall

Food / Grocery / Household

In the past 3 months, have you purchased any of these items in this way? Base: main shoppers

Base: main shoppers



Purchases seem to have been made more recently in Carrefour and HyperPanda

20%

21%

14%

17%

41%

51%In a supermarket

In a shopping mall

On the high street

On my laptop ordesktop computer

On mysmartphone

Send someoneelse to do it (maid,children, partner)

18%

23%

13%

15%

43%

64%

16%

19%

9%

13%

38%

64%

Base: main shoppers

In the past 3 months, have you purchased [food, grocery, household] items in this way?



For those shopping in store, the attraction of tactile product experiences is still strong when it comes to purchase fulfilment

Base: main shoppers,

19%

26%

26%

28%

28%

42%

Shopping in a store or mall is less hassle thanshopping online

Shopping in store or mall is less risky thanshopping online

Shopping in a store or mall is more fun thanshopping online

Shopping in a store or mall makes returns andexchanges easier

Shopping in a store or mall can be a sociableexperience to enjoy with friends and family

I prefer to inspect the actual product I ambuying personally before purchase

For which of these reasons would you shop in a store or mall rather than online?



20%

32%

33%

37%

41%

50%Prefer to inspectproducts

In store is lessrisky

In store is morefun

Returns areeasier

Sociableexperience

Less hassle thanonline

Although product inspection is key for all supermarkets, Carrefour shoppers are more motivated by fun, sociable experiences

Base: main shoppers

20%

35%

30%

39%

30%

46%

17%

29%

32%

32%

32%

52%



The primary motivator of online shopping is people getting their time back to do what they want to do

Which of these statements do you agree with in relation to shopping online?

Base: Mai n shoppers, Question: Which of these statements do you agree with in relation to shopping online?

21%19%

18% 18%17%

xxx

Shopping online gives me more time to do what I want

Researching products to buy is easier online than in store

I find it easier to shop online than going into stores

I can gather the opinions of other people more easily when shopping online than in a store

I have more choice shopping online



18%

27%

28%

25%

27%

Gives me timeback

Researchingproducts iseasier

Gatheringopinions is easier

Easier to shoponline

More choiceonline

For Al Othaim and Carrefour shoppers, ease of opinion gathering is the key driver of online purchase however

Base: Main shoppers, Supermarkets shopped in last month. Which of these statements do you agree with in relation to shopping online?

20%

22%

25%

23%

20%

22%

19%

21%

20%

23%





Digital activity can drive physical purchase fulfilment in multiple ways

40% Have used a coupon or discount on a mobile phone

when shopping instore

46% Of smartphone users make a purchase and have it delivered

to them at least once a week

Base: all respondents. Questions: How often do you get items you have purchased delivered to your home or work? Have you ever used a coupon or discount on your mobile in-store?

12% Like to pay online and then collect in-store





1. Mobile purchasing is mainstream: 79% have made a mobile

purchase in the last three months. Time saving and the desire to research products are key considerations and brands need to make sure they are fully mobile optimised

to capitalise on these consumer demands.

2. The supermarket still dominates for food and household purchases however: The desire to have physical contact

with a product cannot be overlooked. However, with 25% of main shoppers buying food and household products via smartphone, offline and online activities can be

combined to form a unique showrooming experience.

3. Main shoppers want their time back: In a cash rich, time

poor society, the main motivator of online shopping is giving people their time back

to do what they want. Aligning brands with simplicity and convenience is key in the new digital economy.

Three key learnings for driving product purchase on mobile





AWARENESS


PURCHASE

1. CONSIDER MOBILE IN THE MEDIA MIX: 91% of smartphone owners use the mobile internet on a weekly basis. More than any other form of media, including TV

2. ENSURE DISCOVERABILTY OF PRODUCT INFORMATION ONLINE: Smartphones are now the primary product research tool. A quarter of consumers are prompted to conduct mobile research by TV ads

3. MOBILE OPTIMIZATION FOR M-COMMERCE IS KEY: 79% have purchased a product or service on their smartphone in the past three months

Three key considerations on the mobile path to purchase





Thank you

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