the cpg paradigm shift - ignited · new technologies are creating a fundamental shift in consumer...

The CPG Paradigm ShiftHow Omnichannel Marketing Strategies Provide New Opportunities for CPG Brands

Executive Summary

CPG brands will soon experience a paradigm shift when digital’s overall penetration in the CPG market reaches 5 percent — considered to be a key tipping point of further acceleration.

New technologies are creating a fundamental shift in consumer behavior that is once again altering established CPG marketing strategies.

A new era of retail shopping is now at hand and connecting with consumers through their shopping device of choice — the smartphone — must be a core component of every CPG marketing effort.

Retailers that have adopted omnichannel marketing programs have experienced significant gains across multiple KPIs, including store traffic, sales conversion, order size, and customer loyalty.

From their omnichannel experiences with retailers in 2014, consumers will come to expect the same access to information and services across digital devices from other sectors.

A clear opportunity exists for CPG companies to gain market share and establish a strong competitive advantage by investing in the development of new, digitally focused omnichannel CPG marketing initiatives that improve the lives of consumers.

CPG companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales, while early movers have an opportunity to establish positions that will be difficult to dislodge.

CPG companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales, while early movers have an opportunity to establish positions that will be difficult to dislodge.

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The Digital Tipping Point for CPG Marketing

Today’s CPG marketing environment is undergoing a tremendous paradigm shift. According to a report by the Grocery Manufacturers Association1, digital has already grabbed a 10+ percent share in diapers. Shelf-stable categories like health and beauty, where consumers can switch to online subscription services, could see digital penetration of 30 percent or more over the next five years.

The same GMA report warns of an impending digital “tipping point” for the CPG sector. Currently, digital’s overall penetration in the CPG market is only 1 percent. The GMA estimates this will likely expand to 5 percent in 2018, and quickly accelerate to 10 percent soon after. This is significant since digital penetration of 5 percent represents nearly one-half of total CPG growth over the next five years. Moreover, as digital penetration accelerates further, it will produce two category-changing consequences:

1 Companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales.

2 Early movers have an opportunity to establish positions that will be difficult to dislodge.

Purchasing diapers, health, and beauty products outside the traditional retail channel? That is heresy!

The same doubts probably entered the minds of executives at Tower Records and Blockbuster Video when iTunes and Netflix entered the market. However, consumers relish digital innovation for the simple reason that it makes their lives better.

Music and home entertainment were just the start of changes in consumer behavior brought about by digital innovation.

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Consumers are embracing technologies, devices, and services that make everyday tasks such as shopping, cooking, and even commuting quicker, easier, more fun, and more efficient. Stated simply, consumers relish digital innovation for the simple reason that it makes their lives better.

Make no mistake; the concept of making lives better through digital innovation has been a disruptor that has changed the course of several industries over the last 20 years. The media, travel, entertainment, and music sectors have all experienced an exponential shift in the way consumers interact with brands. Today, new digital and mobile technologies are rapidly changing the face of retail, CGP, and food marketing.

THE EVOLVING CPG MARKETING MODEL

For most of the 2000s, P&G focused its efforts on winning the first (stimulus) and second (shelf) moments of truth. This strategy gave them an early-mover advantage that delivered a significant return on investment. The company’s portfolio of billion-dollar brands grew from 10 to 24, and the number of brands with sales between $500 million and $1 billion increased five-fold.2

With the expansion and advancement of search marketing from 2005 to 2010, technology gave birth to a new consumer dynamic that completely disrupted the P&G marketing model. Winning the “Zero Moment of Truth” — the point where people go online to research product features, look at product reviews, check prices, and get recommendations from their friends before making a purchase — became the key competitive battleground for marketers, including many CPG brands.

THE MERGING MOTS

Today, the global sales growth of smartphones, the resulting increase in mobile search, and new retail-based technologies are further disrupting the CPG purchase cycle. Consumers are no longer just researching brands before heading to out to shop; they are carrying that research with them on mobile devices. At the same time, new omnichannel technologies allow consumers to pick up their product research in-store through kiosks and other interactive devices. Moreover, consumers are sharing their post-purchase experience in real time through the use of user-generated videos and social media posts.

In his eBook titled “Winning the Zero Moment of Truth — ZMOT3,” Jim Lecinski called this new phenomenon a “meeting of the mots.” He described the sales funnel as “something less linear and more like a neuron with impulses going in all directions and firing at an ever-increasing rate.” For consumers, the Zero Moment of Truth (ZMOT), First Moment of Truth (FMOT), and Second Moment of Truth (SMOT) are growing closer by the minute.

To remain relevant, CPG marketers must further evolve their marketing models by developing omnichannel strategies that facilitate a model of merging MOTs in a consumer-centric, digitally driven marketplace.

The Disruption of CPG Marketing

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Although some may argue that omnichannel strategies work best for considered purchases and may not be applicable to groceries and CPG goods, we believe this trend will change.

Consumers want to find and sample new experiences. Armed with mobile search and social media reviews, smartphones allow them to accomplish this whenever they are in the mood to try something new.

Whether it’s finding a new side dish for dinner, getting the best flu remedies, or looking for new toothpaste, mobile search provides the opportunity to evaluate your options and make an immediate purchase on the spur of the moment. Each of those moments could be the beginning of a new brand relationship.

While marketers are focused on online and offline shopping, consumers are not. To consumers, shopping is simply shopping. However, the majority of U.S. consumers shop with their phones, and for many, mobile is the catalyst for sales captured elsewhere.

· An Accenture survey found that 24 percent of consumers plan to use a smartphone while shopping, up from 18 percent last year.4

· A Deloitte study found the use of mobile devices (both pre-shop and in-store) influenced or helped to convert approximately $593 billion in U.S. in-store retail sales in 2013 — nearly a fourfold increase from 2012.5

· Google research found that people who consistently use their smartphones as part of their shopping spend 25 percent more than people who only use their smartphones for shopping occasionally.6

· A Forrester Research report estimates the amount U.S. shoppers spend on Web-influenced offline sales by 2018 would amount to $1.8 trillion, compared with $1.4 trillion in 2014 — a 29 percent increase.7

· An IBM Digital Analytics Benchmark says mobile accounted for 28 percent of 2014 Cyber Monday’s actual sales, a 27 percent jump from last year, and it drove 41 percent of traffic.8

While the vast majority of retail purchases still take place in stores, the purchase decision process increasingly flows through smartphones. Although smartphones are not replacing stores, they are augmenting them by becoming the new hub of retail shopping.

A new era of retail shopping is now at hand and connecting with consumers through their shopping device of choice — the smartphone — must be a core component of every CPG marketing effort.

Smartphones Are the New Retail Hub

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In response to e-commerce threats, retailers were the first to embrace digital, and particularly location-based mobile advertising, as a tool to combat showrooming. A Verve report found that retail accounts for 28 percent of location-powered advertising, significantly more than in any other industry. In comparison, CPG only accounts for 14 percent of location-powered advertising. However, the report also found that CPG-related mobile spending increased by 219 percent from 2012 to 2014, making CPG the fastest-growing segment.9

Retailers also found that digital’s impact is greatest in the early stages of the purchasing pathway, when consumers are discovering brands and searching for product options. However, with the growth of smartphones, consumers regularly switch back and forth between digital and physical channels, and they interact digitally both inside and outside of stores. This second behavior presented an opportunity and was a key driver for the growth of new omnichannel retail strategies.

A Forrester Research study found that consumers have heightened shopping expectations in the era of omnichannel retailing.10

Learning From the Leaders

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· 71 percent expect to view in-store inventory online.

· 39 percent are unlikely or very unlikely to visit a retailer’s store if the online store does not provide the physical store’s inventory information.

· 50 percent expect to buy online and pick up in-store.

When viewed together, all three of these findings relate to convenience. Once again, if marketers can focus on making the lives of consumers better, in this case by saving unnecessary trips to a retail location, they will win the loyalty of consumers.

The same Forrester Research study concluded “offering an omnichannel customer experience is now a key brand differentiator, with increased customer satisfaction, loyalty, and brand perception highlighted as the top benefits.” In other words, it is not just the benefits your product delivers that differentiate your brand; it is also the way your brand delivers its products to consumers that set your brand apart.

RETAIL OMNICHANNEL INNOVATION

We believe three of the most innovative examples of industry-changing omnichannel strategies come from Macy’s, Rebecca Minkoff, and UGG.

MACY’S

Macy’s is the first United States retailer to use Cortexica, an image recognition technology that allows users to snap a photo of an item they like on the street and then find similar items in the store or online.


Like other retailers, Macy’s now offers a buy online and in-store pickup option and is testing same-day delivery services to speed delivery and reduce costs.

Macy’s officials say their omnichannel-testing program is part of their continued use of technology to win customers, and particularly younger customers who spend more time using technology and shopping online.11

During the fourth quarter of 2014, Macy’s tested an in-store, touchscreen kiosk that assists shoppers in searching for a particular fashion look. Customers looking for ideas can flip through touchscreen pages for how to pair clothes with other garments or accessories. They can also click on featured items for more detailed information.

Macy’s also rolled out a browser-based digital-wallet solution called My Wallet, available to in-store, online, and mobile shoppers, that places users’ credit cards and Macy’s digital coupons and promotions in one place. Customers with the new iPhone 6 and Apple Watch will be able to pay at registers with a wave of their devices using NFC technology.

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REBECCA MINKOFF

Rebecca Minkoff, an e-commerce retailer with three physical locations, recently rolled out an omnichannel ecosystem that includes a responsive e-commerce site, mobile app, sales associate app, and state-of-the-art in-store technologies. The strategy was designed to intertwine content and commerce by removing consumer “friction points” as customers go through the content-discovery process and thereby drive purchase.

Paramount to Rebecca Minkoff’s strategy is the use of responsive design that optimizes content across all devices. The company begins by designing its website on the smallest screen to ensure viewability and prioritize item selection around the most popular products to eliminate the clutter and confusion that could stall the purchase process.

Equally impressive, Rebecca Minkoff has deployed “smart technology” in stores through the use of RFID tags on products and interactive, smart-glass technology in dressing rooms. As consumers enter a dressing room, beacons track RFID tags, which allow interactive mirrors to recommend companion products and color options. Shoppers can even request a different size from a sales associate without leaving the dressing room or have companion products shipped to their home.


UGG

UGG Australia is making a significant commitment to omnichannel retailing with the opening of its store in McLean, Virginia, with the goal to create a more seamless and connected customer experience. The store is equipped with RFID technology that allows shoppers to view digitally triggered content on four 65-inch HD touchscreens throughout the store that include product information, options, style tips, and complementary products. Sales associates are equipped with iPads to aid in answering product questions and complete e-commerce transactions for products not available in the store, and customers have access to free Wi-Fi while shopping.

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OTHER RETAIL OMNICHANNEL APPLICATIONS

The above examples are setting the bar for omnichannel retailing in 2015, but other retailers have tested or are currently testing a variety of omnichannel strategies designed to improve the consumer shopping experience.

· Nordstrom offers mobile checkout, much like Apple stores to save time. Playing off of its huge Pinterest following, the retailer also displayed its “most pinned” shoes and handbags in-store across 117 locations to help customers quickly find these pieces.

· Karl Lagerfeld installed iPads in the dressing rooms of his London store to allow visitors to snap selfies and immediately share them across their social networks.

· Adidas is using RFID technology throughout the store to help with product information and outfit ideas. In point-of-sale systems, RFID removes the need to manually scan items. Other deployments allow consumers to browse life-sized products and add them to their mobile cart with a tap of their phone.

· Office Depot is testing audio technology solutions for driving in-store engagements on mobile phones. When shoppers open the Shazam mobile application in-store to identify a song or audio message, the app connects with the retailer’s music system to enable message delivery.


· Toys “R” Us built an app that lets shoppers — or their children — use a smartphone to scan the bar code on items to create a Christmas list.

· Target launched a new real-time inventory map, which lets shoppers locate stores that have the items they want, in order to eliminate unnecessary trips.

· The Crate and Barrel website allows visitors to save and access their shopping cart from multiple devices and browsers, allowing them to pick up where they left off no matter where the are in the shopping process.

· Sephora’s “My Beauty Bag” program makes it easy for its loyal customers to manage their “loved” products and purchase history from any device.

· JCP unwrapped a new iPhone app during holiday season that makes it easier for shoppers to find gifts, arrange shipping options, and use more targeted search functions.

All indicators tell us retail is only the beginning. The on-demand, instant-gratification consumer culture will spread rapidly to other customer service-based sectors, including financial services, healthcare, and more.

Early adoption of new of new technology is often challenged to deliver scale and is limited by a consumers’ willingness to install and use smartphone apps when they enter a store. The key is in creating value by making the lives of consumers easier and improving their shopping experience.

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THE ROI OF OMNICHANNEL RETAILING

It is clear that retailers have gone omnichannel in a big way, and for good reasons. A recent Deloitte Digital report12 underscored the impact of digital on various retail measures of success, including:

· TRAFFIC 84 percent of visitors report using digital for shopping-related activities before or during their most recent trip to a retail store.

· CONVERSION Consumers who use a digital device during their shopping journey convert at a 40 percent higher rate.

· ORDER SIZE 22 percent of consumers spend more as a result of using digital, with just over half spending at least 25 percent more than they had intended.

· LOYALTY 75 percent of consumers said product information found on social channels influenced their shopping behavior and enhanced brand loyalty.


With KPIs like these, it is fairly obvious why CPG companies are significantly increasing their investment in digital media at an estimated CAGR of 14.7 percent from 2014 to 2018 according to an eMarketer report.13

2014 2015 2016 2017 2018

4.25

4.97

5.82

6.55

7.35

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PROJECTED U.S. CPG DIGITAL-MEDIA SPENDING 2014–2018

The Internet has disrupted traditional approaches to shopping, setting up an expectation not just for convenience, but also for immediacy. The “need to know now” behavior is evolving into a “need to have it now” expectation that has forced brands to adopt omnichannel strategies focused on convenience, immediate access to information, and new payment options that facilitate a compressed consumer purchase path.

MAKE LIFE EASIER

To build a successful omnichannel offering, CPG companies will need to up the ante and invent creative ways to make the lives of consumers better. Start by determining the key tasks or actions that consumers perform throughout their daily lives, and then provide ways to help them accomplish those same tasks with less effort.

Omnichannel marketing is not solely about selling across multiple channels; it is also about using those channels for the good of consumers. Whether it is saving time or money, adding value, solving problems, fostering relationships, expressing creativity, strengthening family values, providing security, or ensuring health, an omnichannel strategy should fulfill a basic consumer need.

ADOPT A PHYDIGITAL PLANNING APPROACH

With omnichannel marketing, the line between physical and digital worlds is becoming less distinct. While digital and social media drove e-commerce growth, retail took a back seat. However, consumers now find themselves craving the real, the physical, and the tangible world, but in a new way. A new “phydigital world” has emerged in which consumers shop the real world armed with digital tools that enhance their shopping experience.

While many brands are trying to capitalize on this new trend, marketers are quickly learning that planning by silo doesn’t work in a phydigital world. Consideration must be given to how marketing, media, or sales strategies can come to life through interactions across the omnichannel ecosystem to be successful.

Building a Consumer-Centric Omnichannel CPG Approach

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BUILD A MOBILE FIRST STRATEGY

Today, consumers are no longer just researching brands before heading to out to shop; they are carrying that research with them on mobile devices. Mobile technology has become the bridge that enables omnichannel marketing by connecting the digital and physical worlds.

The growing importance of mobile in omnichannel marketing is underscored by three recent studies.


· An eMarketer study forecasts the number of smartphone users worldwide will surpass 2 billion in 2015. At that point, smartphone users will represent nearly 52 percent of all mobile phone users.14

· Another eMarketer report forecasts mobile search will reach a tipping point in 2015, where the majority of spending, organic traffic, and paid clicks coming from smartphones and tablets will surpass traditional desktop and laptop search activity.15

· A survey of U.S. mobile users conducted by Nielsen found that 65 percent of mobile users are looking to make a purchase the same day, while 56 percent of purchases influenced by mobile research take place in person at a store.16

However, it’s not only the growth of smartphone users and mobile search that will affect omnichannel marketing in the coming years. Inexpensive smartphones are opening new opportunities for marketing and e-commerce to many consumers who previously had no access to the Internet. At the same time, smartphones are quickly shifting the paradigm for consumer media usage and underscoring the need for marketers to become more mobile-centric.

Building a mobile first strategy also forces marketers to confront two important design limitations of mobile devices – screen size and interactivity — that must be dealt with in developing a consistent and seamless cross-channel experience across multiple devices in omnichannel marketing efforts.

Digital media, and particularly mobile, was once viewed as a “department” or something that was added to traditional media if budgets permitted. In omnichannel planning, digital must be viewed as the glue that holds campaigns together. The mobile “moment of truth,” the point at which consumers turn to their mobile phone for the information they need to support their purchase decision, must be the central point of the planning process.

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2014 2015 2016 2017 2018

1.76

2.04

2.232.52

2.73

PROJECTED WORLDWIDE SMARTPHONE USERS 2014–2018

ADDRESS THE INDIVIDUAL NEEDS OF YOUR AUDIENCE SEGMENTS

Millennials want an experience. Mothers seek healthy alternatives for their families. Time-starved consumers want on-the-go alternatives. Older consumers strive to stay healthy. Environmentalists want to save the planet with eco-friendly products. These examples may be slightly oversimplified, but they illustrate the fact that different consumer segments have different reasons for choosing a CPG brand. Each of those reasons provides a different omnichannel marketing opportunity. One sizes does not have to fit all.


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For example, Millennials like to be co-creators. It is an integral part of their shopping experience. You can use platforms like Pinterest to suggest dinner ideas at the right time of day with access to easy-to-read, mobile-formatted recipes. Millennials also want to lead healthier lifestyles. A mobile app with a daily healthy-meal recommendation can keep your brand top of mind.

ENCOURAGE MOBILE STORYTELLING

Storytelling has driven human interactions and civilization since the dawn of man. But the act of storytelling is no longer a one-way static conversation with a singular perspective. With the adoption of social media and interactive devices built to facilitate consumer engagement, one-way storytelling is being replaced by dynamic storytelling where everyone has an opportunity to contribute.

Brands must build stories that offer multiple touchpoints and opportunities across platforms, allowing stories to change, evolve, and grow as people interact and contribute to them on mobile devices. Doing so will increase both the longevity and reach of storytelling. The story of one will become the story of the masses that will influence and motivate others to engage rather than listen passively. It will also lend credibility to CPG brands engaged in omnichannel marketing efforts.


DRIVE RELATIONSHIPS THROUGH DATA

For years, marketers have been talking about their desire for data. Now that they have it, they need to figure out how to take advantage of it. Nowhere is this truer than in omnichannel marketing efforts. Data is the element that will bind and hold omnichannel marketing models together. The ability to use data to understand individual consumer needs, preferences, and desires will be paramount to delivering timely, relevant, and seamless communications across all of their devices.

We believe smart technologies that unlock new insights from the intersection of big data and omnichannel consumer engagement will become a core strategy for many CPG brands in the next 18–24 months. This will be driven by four key factors, including:

1. The acceptance and adoption of omnichannel practices driven by personalization strategies that provide consumers with relevant offers and suggestions based on their purchase history.

2. The return on investment achieved by early adopters in the retail segment that have demonstrated the potential of omnichannel strategies.

3. Access to richer sources that combine both online and offline consumer behaviors that will provide CPG brands with the information they need to build omnichannel marketing segments.

4. An influx of new technology offerings from well-positioned and well-funded providers with the experience, capital resources, and incentive to meet the demands of retail and CPG brands.

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Mintel Group identified several broader consumer trends for 2015 that could serve as catalysts for omnichannel CPG strategies.

TREND: SMARTER EVERYTHING

The growing consumer demand for and interest in different smart devices — from personal wearable tech, like glasses or wristwatches, to smart housing tools, like app-controlled appliances — could become a catalyst for omnichannel CPG opportunities.

· 20 percent of American adults already own a wearable device and the adoption rate — on par with tablets in 2012 — is quickly expected to rise.17

· According to Google Trends, interest in “activity tracker” has jumped 266 percent since November of 2013.

· A Futuresource Consulting study forecasted wearable device shipments would exceed 74 million in 2015, creating a huge demand for new apps.18

· Data released by the Consumer Electronics Association and Parks Associates predicts that shipments of smart-home devices and controllers will rise by 20 percent or more annually in the coming years.19

Consumer Trends Drive Omnichannel Opportunities

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There are several ways for CPG brands to take advantage of smart devices and sensors linked to smartphones, tablets, or computers that could quickly gain the interest of tech-savvy, connected device users. With the expected growth of this category, several devices could be developed by CPG companies, including:

· An app that uses the Apple Watch’s new touch-sensitive, turn-by-turn directions to help consumers locate CPG products at the grocery store.

· A smartphone app that recommends the perfect-calorie meal based on data collected by an activity tracker.

· Sensors that connect with smartphones to monitor the freshness of products.

· Connected smartphone sensors that monitor the quality of wines.

· A kitchen-mounted bar-code reader that allows users to build a shopping cart by sending product data to their smartphones.

Wearable technology and smart-connected devices will slowly shift retail conventions by allowing retailers to connect the dots between pre-store and in-store behavior, creating a new level of interconnected retail. These same smart-device connected opportunities exist for CPG companies.

TREND: THE GENDER AGENDA

People are questioning traditional notions of gender, rejecting the restraints of stereotypes, and embracing the freedom to be themselves. Men are spending more time on shopping and paying attention to their personal appearance, while women are rejecting the perpetually pink messaging of the past.

There are several notable examples of how CPG companies have successfully used gender-based strategies to connect with consumers. Dove’s long-running “Real Beauty” campaign changed the way women perceive beauty today. Secret’s purpose-driven

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“Let Her Jump” campaign of 2008 supported equality in Olympic sports, while generating a 20 percent growth in sales.20 More recently, Cheerios’ “How to Dad” campaign connects with dads by portraying the contribution they make to their families in a humorous way.

Mintel predicts the gender agenda will continue to affect product packaging and brand positioning in retail environments. It should also be considered when designing omnichannel CPG marketing strategies.

TREND: TOXIC AVENGERS

International events — some catastrophic, some inspirational — are putting emissions and toxicity back on the agenda. However, it is the threat of pollution to human health, rather than the environment, that is driving technological innovation and a spate of clean, protective product launches in the CPG space.

The cosmetics industry in particular has been awakening consumers to the immediate, visible, personal effects of pollution. Mintel research shows that 28 percent of women aged 65+ who use facial skincare products in the U.K. use a moisturizer to counter the effects of pollution or the environment on the skin. Across the pond, that number jumps to 49 percent.

Avon used this trend to great success for the launch of its ANEW Clinical E-Defence Deep Recovery Cream in the U.K. by commissioning a report to find out if where you live affects how you age. The study looked at ozone, nitrogen dioxide, particulate matter, pollution, UV, and temperature levels (coined collectively by Avon as “urban dust”) to describe the

“environmental aggressors” that threaten consumers. Avon even created an urban dust map to identify regions in the U.K. with the highest threat levels to the skin and general health of consumers. Imagine the impact on sales of millions of women checking an urban dust map every day to see if they are at risk.

Aside from cosmetics, green consumers are also focused on environmentally friendly cleaning products. According to Global Industry Analysts, Inc., estimates, green cleaning products will become a $9.3 billion category by 2017. In the U.S., 64 percent of consumers claim they expect companies to be more environmentally friendly. Among millennial targets, the number is even higher. To gain a competitive advantage, green product brands could develop omnichannel strategies to help consumers more easily understand, find, and purchase green cleaning products.


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Today’s CPG marketing model has changed. Winning at the shelf requires a series of wins along the entire path to purchase in an increasingly shorter timeframe. Brand marketing is being replaced by brand relationships built through a series of multiple technology-enabled touchpoints that enhance the shopping experience by placing information at the fingertips of consumers.

Conclusion

While CPG companies have been slow to adopt digital media, retailers have already proven the efficacy of omnichannel marketing. Testing has demonstrated significant gains across multiple KPIs, including store traffic, sales conversion, order size, and customer loyalty.

Nearly one-half of total CPG category growth forecasted over the next five years will come from an increase in digital penetration. Therefore, CPG companies must accept the smartphone as the new hub of retail shopping and find ways to provide the same innovative, time-saving, and value-oriented services consumers have come to expect.

Omnichannel marketing represents a clear opportunity for CPG companies to gain market share and establish leadership positions that will be difficult to dislodge. Those without an effective digital capability risk stagnation, loss of share, and shrinking sales.

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About IgnitedFind Your Fire

WHO WE ARE

We are a beacon for better in the advertising world that creates innovative marketing strategies designed to catapult brands ahead of their competitors by igniting culturally-relevant conversations people welcome, gather around, and want to share.

OUR EXPERIENCE

For over a decade, we’ve developed a deep portfolio of integrated digital, mobile, social, experiential marketing, and content development expertise needed to drive successful omnichannel marketing campaigns.

Our related retail and CPG experience ranges from work for start-ups to established brands that include:

· ZICO® Premium Coconut Water, where we helped to triple sales and made the brand a prime acquisition target for Coca-Cola.

· Fresh & Easy, where we transformed a struggling a regional grocery chain by shifting from profit-eroding promotional tactics to a brand that stands for fresh food, quality, and convenience.

· Clinique, where we pioneered the use of digital marketing to drive retail sales in a highly traditional cosmetics category.

· Sony, where we designed, implemented, and managed the use of retail kiosks that produced over 2 million in-store engagements and a 28 to 44 percent sales lift.

www.ignitedusa.com

2221 Park Place El Segundo, CA 90245

(310) 773-3700

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References

1 Source: Grocery Manufacturers Association, The Boston Consulting Group, Inc., Google, Inc., and Information Resources, Inc. (IRI) 2014, “The Digital Future: A Game Plan for Consumer Packaged Goods,” August 2014.

2 Source: The Corporate Counsel Net website (http://www.thecorporatecounsel.net/Conference2009/html/speakers.htm).

3 Source: Jim Lecinski, 2011, Winning the Zero Moment of Truth — ZMOT.

4 Source: Physics.org website (http://phys.org/news/2014-11-retailers-smartphone-technology.html).

5 Source: Deloitte, “The New Digital Divide,” April 15, 2014.

6 Source: Fast Company website (http://www.fastcolabs.com/3010981/future-of-retail/google-is-learning-how-smartphones-impact-in-store-shopping).

7 Source: Forrester Research, “US Cross-Channel Retail Sales Forecast: 2014 to 2018,” September 3, 2014.

8 Source: IBM, “Black Friday Report 2014” and “Cyber Monday Report 2014,” December 2, 2014.

9 Source: Verve, “Location Powered Mobile Advertising Report: Deep Dive on CPG,” December 5, 2014.

10 Source: Forrester Research, “Customer Desires Vs. Retailer Capabilities: Minding The Omni-Channel Commerce Gap,” January 2014.

11 Source: Cincinnati.com website (http://www.cincinnati.com/story/money/2014/10/03/hate-checkout-lines-macys-can-help/16642885/).

12 Source: Deloitte Digital, “The New Digital Divide,” November 9, 2014.

13 Source: eMarketer, “US Ad Spending: Q4 2014 Complete Forecast,” December 19, 2014.

14 Source: eMarketer, “Smartphone Users Worldwide, by Region and Country, 2012–2018,” June 1, 2014.

15 Source: eMarketer, “Mobile Search Market Too Big for Test-and-Learn,” June 2014.

16 Source: MediaPost, “Most Mobile Retail Research Ends In Purchase,” November 26, 2014.

17 Source: PricewaterhouseCoopers LLP, “Consumer Intelligence Series: The Wearable Future,” October 2014.

18 Source: MediaPost, “Wearable Tech Catching On Fast,” November 10, 2014.

19 Source: Consumer Electronics Association and Parks Associates, “Internet of Things: Smart Home Devices and Controllers,” October 16, 2014.

20 Source: AdAge, “How Secret Found Inspiration in Perspiration,” January 2, 2012.

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