retail advertising
DESCRIPTION
Insight on retail advertising, subtopics that falls under media planningTRANSCRIPT
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RETAILINSIGHT ON
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INTRODUCTION
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RETAILTo distribute in small portions.
The sale of commodities in small quantities or parcels; consists of the sale of physical goods or merchandise from a fixed location, such as a department store, chain store, boutique or kiosk, in small or individual lots for direct consumption by the purchaser.
Oxford dictionary
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FMCG
Products that are sold quickly and at relatively low cost.
Examples include non-durable goods such as soft drinks, toiletries, and grocery items.
Though profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit can be substantial.
FAST MOVING CONSUMER GOODS
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ADEX SPENDING BY CATEGORY PERIOD JAN-DEC2010 TOP 50
No In-Store Media RM’000
1. Cleaning agent-laundry 12,192
2. Dairy-kids growing up milk 8,793
3. Hair shampoo & conditioner 7,747
4. Bath additives 6,999
5. Face care-woman 5,359
6. Dental care-toothpaste 5,296
7. Dairy-uht milk 4,997
8. Biscuit, bread, cookies & cakes 4,850
9. Snacks 4,674
10. Noodles 4,198
Source: Nielsen Adex Report
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No In-Store Media RM’000
41. Dairy full-cream milk 528
42. Sanitary protection 439
43 Cereal 335
44. Mobile line services 328
45. Soup 315
46. Liquor retail 305
47. Fragrance 273
48. Vehicle range 333
49. Pharmaceutical-other 224
50. Confectionery-sweets 181
Source: Nielsen Adex Report
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TYPES OFRETAIL
OUTLETS
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DEPARTMENT STOREvery large stores offering a huge assortment of "soft" and "hard goods; often bear a resemblance to a collection of specialty stores.
DISCOUNT STOREoffer a wide array of products and services, but they compete mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices.
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WAREHOUSE STORESwarehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelvesSUPERMARKETsell mostly food products & non food products
VARIETY STORESThe range of products are very selective and few in numbers. These stores are seen in local community often are family-run businesses
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SPECIALTY STORESAlso known as branded stores and gives attention to a particular category and provides high level of service to the customers
CONVENIENCE STORESis essentially found in residential areas. They provide limited amount of merchandise at more than average prices with a speedy checkout. It’s ideal for emergency and immediate purchases.
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HYPERMARKETprovides variety and huge volumes of exclusive merchandise at low margins
MALLhas a range of retail shops at a single outlet. They endow with products, food and leisure under a roof.
OTHERSCategory killers, e-retailers and vending machine
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FACTS & FIGURESON POINT OF PURCHASE
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43.2 %Growth of advertising spend in POP were recorded in 2010
12.5days
A shopper visits a hypermarket once every
TESCO
Dominate the retail industry
CARREFOUR
JUSCO
POP has expanded beyond the aisle to trolley, travelots,etc.
Non-FMCG started to make benefits of retail ad in recent years
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1/3Shoppers influencedby in store ads
44 %Notice in-store ads
51 %of shoppers move through all the aisles while shopping
75 %who notice in-store ad likely to purchase the brand advertised
Sensor TM Study, 2010
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RETAIL MEDIA
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Retail is also part of Out-of-home media but since in recent years it also has stand on its own because it had diverse the selection from aisle to trolleys, revelators, in-store billboards, etc.
To name there is also OOH media company that provided platform for retail media like Big Tree and POS Ad.
However the most prominent is Redberry through its subsidiary company, Magic Ads which is the largest retail media network in Malaysia with become the representative for Jusco, Tesco, Mydin, Carrefour and 7-Eleven
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63%of retail network
MagidAds conquer
43 %
Tesco, Jusco , Carre four offer access to
Of PMEB & White Collar Shoppers
10,298,624Transaction per cycles at more than 77 outlet nationwide
MagidAds retail networks provide greater reach in urban and semi urban
Multiple touchpoint along the ways from carpark till the moment they went out back
700 7-Eleven stores nationwide with a total of 424,900 transaction daily and 11,897,200 transaction in a month.
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PROFILE OF HYPERMARKET USERS
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Average Monthly income
RM 1000 - RM2000 25.6%
RM 2000 – RM4000 27.4%
RM 4001 & above 47%
Shopper profile by age
50+ 17%
40 – 49 18%
30 - 39 24%
20 - 29 29%
15 - 19 12%
Shopper profile by race
Malay 44.6%
Chinese 44.6%
Indian 10.8%
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Want to reachthe affluent market?
60.8%Shoppers visiting a MagicAds network outlet with a household of more than RM4,000
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MEDIUM FORMATOF RETAIL MEDIA
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IN-STORE ZONE
•Chiller/Freezer wrapsDesigned to increase the visibility in the frozen goods category.
•Aisle sponsorshipTotal dress-up installed on brand product shelves and category aisles.
•Trolley adsThree-sided ad billboard attached to shopping trolleys and can be adapted to shopping baskets.
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IN-STORE ZONE
•TV in Electrical AreaShows ads and other AV-based promotional materials up to 40 TV screens at a time.
•FloorstoppersA patented process of rendering 3D floor advertising that will literally make your ad pop-up at the shopper.
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PAYMENT ZONE
•Brand AmbassadorsDress up hypermarket personnel as your personal messengers. All T-shirts and dress-up must be co branded with the hypermarket.
•Sensormatic WrapsPlaced at either mall entrance or at payment gateways
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PAYMENT ZONE•Payment Gateway BillboardsAn opportunity to give your brand a “larger than life” presence at payment gateways
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MALL ZONE
•Travelator PanelsDress up key entry and exit points into the mall, ideal for innovative creative ideas.
•Wall spaces
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CARPARK ZONE
•Carpark wallspaces
•Carpark pillars & lightboxesInfluence shoppers while they park. Make your mark as they circle the car park looking for parking.
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ADVANTAGES & DISADVANTAGES
OF RETAIL MEDIA
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Its cover 1.2%, or RM 119.8 million, of the ad spending pie through out 2010
wide reach towards the local mass market
specific consumer segments
provides brands high degrees of visibility in reaching people on the go.
Advertiser claiming that retail media is expensive
Due to costly expenses so most major brands dominate the space
ADVANTAGES DISADVANTAGES