Grocery brands and the digital landscape

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1 Grocery brands and the digital landscape

2 Grocery and digital only a short time ago.. A distant relationship with the grocery shopper s journey.. Consideration On the go Point of purchase

3 Online consumer act ivit y has changed 2000 s 2010 s Internet breakdown Music Book buying Technology focused Less online purchases due to security concerns Digital is yet to become a major part of peoples lives Internet breakdown: Search engines 20% Software 8% Media/ news 8% Grocery 6% 93% of European net users have made a purchase online Consumers are now connected and shopping online Source: Neilsen Top 100 websites (2010) / BBC - Top 100 sites on the Internet

4 Consumers move online to shop Four years ago, only 10% (627m) of the global online population had made a purchase using the Internet Within two years, the number increased to 875m and now stands at over 1bn worldwide Sainsbury s has seen online sales increase by 25% in the last quarter of 2010 UK housewives (designated as main household shopper) spent 47% of their free time surfing the internet in 2010 Source: Sainsbury s Press release Jan 2011

5 Google t rends (recipes) Rise in search and referential interest in recipes online over the last two years Source: Google Trends

6 Google int roduces recipe search funct ion

7 Online appetite for food sites Source: DoubleClick Ad Planner Jan 2011

8 Varying opport unit ies t hrough food sit es Number of unique visitors to food sites now means that advertising opportunities are huge Not j ust display, but integrated options, recipe insertions, page sponsorship and more (on well known pages)

9 Mobile connect ed devices

10 Smartphone users and mobile minutes 11.1m smartphone users in the UK (22.2m people currently use mobile Internet in the UK) Facebook (5 million unique visit ors) Google sit es (4.6m unique visit ors) Source: ComScore and GSM Association (GSMA)

11 Smart phones replace t he cookbook Smartphones are replacing the cook book People are using connected devices for cooking/ checking ingredients + looking up recipes in the kitchen Recipe sites/ apps create the perfect opportunity for FMCG brands to be part of the food prep process

12 Barcode scanning - Tesco app Tesco barcode scanning app - allows you to store your shopping list on phone by scanning the products Purchase products using your phone

13 Locat ion-based market ing Frequent customers checking in on Foursquare unlock Barrista badge Badge entitlement shown entice instore sampling of coffee

14 QR Codes Users will become prompted to interact with their environment using mobile phones e.g. QR Codes and visible URLs Scan a QRC takes the user directly to website (in this case, the Pepsi store) Codes can be used on ads, banners, merchandising etc. directing people to online content (fully traceable using analytics)

15 Social media

16 How people are using social media? What one hour online in the UK now looks like Social networking 1/4 time online Those using social media 42% manage a social network profile 32% use, upload or share photos 11% use, upload or share videos 8% write a blog 5% use Twitter Source: UKOM (above) Source: Global Web Index (right)

17 UK social media demographics (25.9m UK users) 70% aged (10m UK users) 64% of Twitter users are aged 35 or older

18 But how relevant is social media to FMCG?

19 Just look at a couple of food sectors Last 30 days UK Only Source: Radian6

20 And a couple of brands Last 30 days UK Only Source: Radian6

21 Baking conversat ion in t he UK (online) Last 30 days 19,207 mentions on Twitter 3,486 Blog mentions 1,098 Facebook and other social networks Source: Radian6

22 Different st rokes for different folks

23 Brand types and social media Social media brand Archetype 1 The image led brand people want to hang out with Social media brand Archetype 2 The brand with hidden depths interesting once you start chatting Social media brand Archetype 3 The commodity brand once associated with an interest people will chat Iconic brands like Coca- Cola, Marmite, Guinness, Tabasco and Skittles Brands with heritage, brand stories or in categories that are interesting e.g Patak s, Blue Dragon, Tropicana Brands that are by nature commodities or in low interest categories e.g Evian, Harpic, Saxa Salt

24 Examples of image led online brands

25 Skittles Facebook page

26 Marmit e Facebook Love page ToV in line with brand position User interaction and marmite sharing Requests for recipe suggestions and ideals for multiple uses of marmite 500,000 likes

27 Marmite Facebook Hate page Launched in 2010 for those that hate Marmite Branded but non promotional User interaction and marmite sharing - even though people dislike the product on the page 180,000 likes

28 Examples of brands wit h hidden dept hs

29 Patak s Making use of heritage and family history Product story

30 And brands that might be perceived as commodit y

31 Brita BRITA water filters support an expedition to Nepal and run a charity page

32 But social media cannot be left entirely to its own devices

33 Brands effect ively driving people t o FB Television adverts referring to Adam & Jane s wedding on 23rd of April Competition drive Viewers referred to Facebook BT capture 50,000 likes on t heir page

34 Wrigleys drive to Facebook via Metro Press ads in Metro - find the food creatures on Facebook to win Starbucks coffee for a year Ran once resulting in 150,000 new likes

35 McCain s Facebook page

36 Trends to look out for in the social media world.

37 Facebook Quest ions

38 Facebook Credit s Facebook want to introduce their own currency Facebook set to expand credits into a billion dollar marketplace Credit use for buying and selling products, games, cinema tickets etc. Potential for working with trade partners

39 Facebook Places and Deals Locat ion based net working now very popular Easy to use Rival to Foursquare due to better coverage

40 Purchase via social media (social commerce) Heinz launch new Tomato ketchup range with balsamic vinegar on Facebook Social commerce potential with a PR/ viral element Easy to share with friends (generates word of mouth)

41 And what about the good old fashioned websit e?

42 St rong food websit e examples

43 HiPP Organic s new website

44 McCain s website

45 Love Pork website

46 So the grocery customer j ourney model has changed!...

47 Digital is now at the heart of the matter Consideration On the go Point of purchase

48