in-cosmetics 2013 - bangkok, thailand
TRANSCRIPT
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Marketing to Shoppers
How shoppers use technology and the implications to cosmetics brand marketing
We have worked with over 50 companies, of which 10 are in the top 25 consumer goods manufacturers
globally
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...
We help consumer goods companies…
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
Malaysia
Thailand
Pakistan
Vietnam
Philippines
Korea, South
Indonesia
Japan
India
China
0 100 200 300 400 500 600
17.7
20.1
29.1
31.0
33.6
40.3
55.0
101.2
137.0
538.0
Asia Top Internet CountriesJune 30, 2012
Millions of Users
Source : Internet World Stats –http://www.internetworldstats.com/stats3.htmUpdated June 30, 2012Copyright : 2013, Miniwatts Marketing Group
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
Source: in-cosmtcis Winning the Zero Moment of Truth (ZMOT), February 2013
What does this mean for shoppers, and what are the implications for brand marketing?
China is now the world’s biggest Beauty & Personal Care online market
South Korea United Kingdom
France Japan North America China $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2007 2008 2009 2010 2011 2012
Millions
Source: Euromonitor 2013
So what are the implications of this rapid technological adoption on brand marketing?
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
Effectively managing brands is about connecting what we are doing with
consumers with what happens in stores
Shopper behavior
Consumer priorities
Channel priorities
In–store marketing
Investment in customers
How does technology affect our marketing?
Shopper path to
purchase is changing
Consumers have different
brand relationships
New channelsDifferent
channel roles
New environments within which to influence
shopper behavior
New customers
New investment
requirements
2002 2003 2004 2005 2006 2007F2008F2009F2010F0
50
100
150
200
250
300
350
400
450
Mobile advertising
Global internet
Interactive TV promotions
In-game advertising
U.S. product placement
Global cable/multichannel
Global broadcast
U.S.MSO advertising
Global radio and outdoor
Global magazine
Global newspaper
U.S.local station
New ad formats 22.4%
Traditional ad formats 77.6%
41
20
19
19
20
5
5
5
5
4
2
2
CAGR(2006-2010)
5.7%
5.9%
Global advertising spend by category
The consumer communication world is fragmented; and is fragmenting further at unprecedented rates
Source: Morgan Stanley
As media continues to fragment, reaching consumers is increasingly more expensive
Brand conversations increasingly take place in the absence of the brand owner
Bangkok and Jakarta are Facebook’s busiest cities
Source: socialbakers, Sep2012
# 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%
10. Buenos Aires Argentina 3533840 28.52%
List of cities on Facebook
How does technology affect our shoppers?
Shopper path to
purchase is changing
Consumers have different
brand relationships
New channelsDifferent
channel roles
New environments within which to influence
shopper behavior
New customers
New investment
requirements
The journey from consumer desire to a sale is getting more complicated
Traditional media Internet sources In-store marketing74%75%76%77%78%79%80%81%82%83%84%
Source used by media type
Source: Google inc. 2011
They use a plethora of different sites
What kind of websites do you purchase from most frequently when shopping online?
Global Average
North America
Middle East/Africa
Latin America
Europe
Asia-Pacific
34%
49%
21%
20%
39%
31%
37%
40%
24%
19%
38%
40%Online-Only Websites
Global Average
North America
Middle East/Africa
Latin America
Europe
Asia-Pacific
34%
49%
21%
20%
39%
31%
37%
40%
24%
19%
38%
40%
Multiple online store websites
Global Average
North America
Middle East/Africa
Latin America
Europe
Asia-Pacific
34%
49%
21%
20%
39%
31%
37%
40%
24%
19%
38%
40%Brick & Mortar store websites
Global Average
North America
Middle East/Africa
Latin America
Europe
Asia-Pacific
34%
49%
21%
20%
39%
31%
37%
40%
24%
19%
38%
40%
Catalog/Phone-Order websites
Source: Nielsen Global Survey of Online Shopping, Q3 2011 and Q1 2010
Mobile is growing rapidly
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
824 1,064
1,376 1,727
2,116
2,588
3,022 3,374
3,651 3,860 4,014
1373
1666
1990
2313
2540
2889
3051
32733435
35603655
Total
Asia-Pacific
(38%)(39%)
(41%)(43%)
(45%)
(48%)(50%)
(51%)(52%)
(52%)(52%)
2,196
2,730
3,366
4,039
4,656
5,377
6,073
6,647
7,0847,419
7,670
+20%
+7%
Source: GSMA Asia Pacific Mobile Observatory 2011
Social media has an enormous impact on the way people make decisions about buying
VN CH TH PH ID MY HK IN TW KO SG AU JP NZ AP Avg
0
10
20
30
40
50
60
70
80
90
100
81 7769
64 6252 50 50 48 46 44
18 17 15
60
19 2331
36 3848 50 50 52 54 56
82 83 85
40
Yes No
I Use Social Media Sites to Make Purchase Decisions
Source: Nielsen Global online Survey-April 2010
Digital usage in shopping will increase : 70%+shopper want to shop with digital engagement in
the future
Televisions in the store
In-store kiosks
Smart phone or mobile phone
Social media site
Store website using tablet
Email from retailers
Store website using computer
In-store
Newsapaper
Direct Mail
42
43
31
37
59
72
75
86
86
87
% of shoppers accessing sources ‘A lot’ or ‘Somewhat’ in Future
60% today Millennials Index = 114
10% today Millennials Index = 176
Print Digital Other
Source: Nielsen Digital Circulars Survey Q2 2011
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?
Use a digital shopping list
Provide feedback about a grocery category through social media (wrote a review, blogged)
Browse a manufacturer’s website for a grocery category
Look up product information online
Compare prices for a grocery product online
Look for coupons from an online coupon site
Look for deals online
Read a grocery retailer’s circular/flyer online
Purchase a product online
Conduct research online (for example, checked price, read a consumer review)
0 10 20 30 40 50 60 70
Global Average Asia-Pacific
Source: Nielsen Global Survey of Digital’s Influence on Grocery Shopping, Q1 2012
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
Shoppers are becoming increasingly heterogeneous
Their shopping journeys are complex and variedTheir ‘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 journeyDifferent 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)
How does technology affect our brands?
Shopper path to
purchase is changing
Consumers have different
brand relationships
New channelsDifferent
channel roles
New environments within which to influence
shopper behavior
New customers
New investment
requirements
The most obvious statement is that there will be new channels: new places for shoppers to shop and buy
Everywhere is a potential store….
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
Some manufacturers/distributors are using the internet to create their own channels
Relationships with existing customers need to be considered
In-store is changing rapidly…
Shopper path to
purchase is changing
Consumption opportunities
New channelsDifferent
channel roles
New environments within which to influence
shopper behavior
New customers
New investment
requirements
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
There is still a need to develop an “in-store” marketing mix to drive changes in shopping behavior
The “rules of engagement” online are quite different
OfferCommunication
Shopping behavior
Availability
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
An increasing complex landscape provides consumer with a wide array of choices
We have more media options with which to communicate our messages to shoppers
Multiple touch points need to be managed and integrated
Online Mobile Social In-store
WebsiteE-
CircularEmails
Printable
Coupons
Digital Maga-zines
Search/Display
Mobile Copon
Text Messag
e
Mobile Apps
ReviewsSocial Media
KiosksQE/Bar Codes
Searching for coupons
3 3 3 3 3 3 3 3 3
Reading a flyer/Circular
3 3 3 3 3
Looking for Deals 3 3 3 3 3 3 3 3 3 3
1
2
3
Source: Nielsen Digital Circulars Survey, Q2 2011
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
The retail landscape is changing more rapidly than ever
Shopper path to
purchase is changing
Consumers have different
brand relationships
New channelsDifferent
channel roles
New environments within which to influence
shopper behavior
New customers
New investment
requirements
Your major customers will undoubtedly add and develop their e-retail presence
And some retailers will come, and some will go
Online retail has a dramatic impact on a traditional retailer’s business
This will have significant implications for your brand
Things change much more quickly – retailers knee jerk
Price comparison becomes more of an obsession – putting pressure on margins
Multiple channels become the norm: channel teams become a necessity
Marketing function grows in strength and influence
Like for like sales go down: stores become a liability
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
Map paths to purchaseUnderstand
channel roles
In-store marketing must be flexible,
adaptable, personable
The retail base is more
dynamic than ever: prioritize
and invest with care
Let’s connect!
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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 SorensenAuthor of Inside the Mind of the Shopper
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