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1 Extend your brand reach with M2M Vodafone M2M solutions for the consumer goods industry m2m.vodafone.com Vodafone Power to you

2 M2M solutions for consumer goods The new shopping landscape The consumer goods industry is in a state of change. New channels and markets are changing the competitive landscape and creating opportunities for sales growth. How can technology help you engage with shoppers, increase brand loyalty and grow your market share? Build, strengthen and maintain Whether you manufacture food and drink, fashion or furnishings, and whether you run your own stores or work with retail partners, changes in the industry are affecting you. The rise of the savvy shopper: Shoppers want quality and value for money. How can you exceed their expectations for service, product availability and price? Omnichannel shopping: Consumers are showrooming to research products and then shopping around to get the best price. How can you coordinate your operations across channels and diverse buying paths? Eroding brand loyalty: Customers are more willing to switch to get a good deal. How can you increase their emotional connection with your brand and protect your future revenue? Pressure on margins: Fluctuations in utility prices, exchange rates and transport costs are eating into profits. How can you reduce waste and improve operational efficiency? Changing market dynamics: Relationships between manufacturers, retailers and consumers are changing. How can you ensure your brand and products get the exposure they need? Machine-to-machine (M2M) technology is one of the biggest opportunities for you to change the rules of engagement. It s the technology behind the internet of things (IoT): enabling real-time communication and control of everything from store signage to warehouse systems. With the new data and interactions that M2M brings to life, you can build stronger relationships with shoppers at the point of sale, understand demand trends, identify changes in buying behaviour and improve operational efficiencies throughout the supply chain. In a 2014 survey by the Consumer Goods Forum and KPMG, 54% of respondents said that their digital strategy for engaging consumers was a top of mind concern. Consumer Goods Forum 2014 kpmg.com/cmsurvey2014

3 3 Connecting with your shoppers Using machine-to-machine technology at the time of sale helps you to offer the right promotions for each customer, ensure product quality and influence purchase decisions. Managing product availability Maintaining product availability and quality is critical, particularly for perishable goods, yet it s a challenge to achieve when goods are offered through networks of small retailers. With Vodafone s Connected Cabinet solution you can constantly monitor the location and operational status of retail display cabinets and vending machines. This enables you to detect loss and theft, and ensure the goods they contain are kept in the right conditions for instance, you can spot if a retailer has turned off the power to a cooler. If there s a mechanical problem with the cooler, the M2M solution will detect it and alert you, enabling preventative maintenance, possibly even remote maintenance. And if stock is running low, the cabinet can call for restocking automatically, avoiding costly unnecessary delivery visits. Reaching out to consumers in the store M2M brings merchandising and in-store promotions to life. With connected digital signage boards, you can deliver up-to-date and targeted promotional messages to customers in the store in realtime, and adapt content based on context. Messaging can be more timely, relevant and drive increased sales. You and your retail partners can use a range of M2M solutions to gain insight into consumer behaviour, from connected video cameras to interactive changing rooms and smart product tags. Consumer behaviour, motivations and preferences hold valuable insight that you can use to guide in-store promotional activities, in conjunction with data from social media and other information sources. Connected Cabinets can collect data about customer demand, which provide valuable insight for R&D, production planning and supply chain. With digital signage built into the machine, you can even serve contextually relevant advertising. Case study: Admirror transforms advertising with M2M Vodafone M2M provides connectivity for Admirror s unique advertising mirrors, enabling fashion houses and other retailers to push adverts and other contents to consumers. With M2M, companies can push new advert playlists to displays over the air in an instant.

4 M2M solutions for consumer goods Going green with better energy management With thousands of stores, warehouses and offices, the consumer goods industry is more affected than most by rising energy costs. Cutting consumption benefits the bottom line and the environment. A win-win for you and the environment Vodafone practising what we preach M2M technology can help streamline your energy overheads throughout your multi-site operations, relieving the pressure that these costs place on your margins and helping you meet sustainability and CSR targets. Vodafone is cutting carbon emissions and saving 2 million a year in energy bills by putting smart metering into practice across our network of around 12,000 base stations in the UK. Automated metering equipment provides a reading every 30 minutes, enabling us to identify and prioritise sites with higher energy use for efficiency measures. Smart utility meters allow you to understand the energy demands of systems and equipment from heating, air conditioning, refrigeration and lighting, to IT and in-store machinery. You can see granular, near real-time usage data across your business. The immediate opportunity is to move from estimated to accurate billing, and to use the information about your energy consumption profile to negotiate a better deal with your energy provider. You can also prioritise investments, for instance in energysaving lighting, and prove their payback periods. If you find that equipment is left on when it is not being used, you can implement new working processes that help to avoid wastage. Planning for the future A 2014 McKinsey study of more than 2,500 global CEOs found that 36% of businesses rank sustainability as a top-three priority with a further 13% saying its their number-one goal. Reducing energy is the most popular sustainability activity, cited by 64% of respondents. Vodafone UK is also on track to cut electricity bills by 5% by using smart meters to provide accurate readings even for remote base stations, which had previously depended largely on estimated bills. Monitoring energy use remotely also eliminates the need for staff to access base stations for meter readings, saving time, costs and travel emissions. The significant cost savings enabled by smart meters mean that we were able to recoup the initial investment within a year.

5 5 Managing fixed and mobile assets for optimal performance Efficiently managing your supply chain and critical business assets is essential for business performance. M2M can save you money, improve security, and achieve business agility. Keeping an eye on your operations M2M solutions can be used to monitor the condition and location of your goods during shipping, from the manufacturer to the distributor and on to the retail outlet. Wireless, battery-powered M2M tracking devices can monitor conditions in transit to make sure that, for example, food safety regulations are complied with and that goods are fit for sale upon arrival. The 2014 survey by the Consumer Goods Forum and KPMG found that the supply chain was the number one challenge, with food safety and traceability being key objectives. M2M devices can also monitor where shipments and assets are from entire containers to individual products and pieces of equipment so you can minimise the costs associated with delays and shrinkage. A direct route for fleet management Fleet tracking solutions allow you to monitor the exact location of each vehicle in your fleet while they re on the road and communicate with them in real time. This enables you to: Allocate jobs and routes for maximum efficiency, speeding up deliveries and cutting fuel costs. Monitor and enforce driver safety, cutting insurance costs. Monitor vehicle performance, for pre-emptive servicing and maintenance. Using Vodafone and TomTom fleet management solutions, one fleet of just 61 vehicles cut its fuel costs by 10,000 each month and reduced the value of its annual insurance claims by nearly 60%. But you can track more than your stock. From computers to warehouse equipment, your on-site assets in warehouses, plants, and stores are a vital part of operations, and they need to be protected from loss and theft. By tracking your assets with M2M, you will always know where they are. And with connected security cameras you can remotely monitor all your sites and receive notifications in the event of a break-in. Case study: VANMOOF makes cycling safer Dutch start-up VANMOOF is transforming the urban bike market. It developed an electric bike for commuters, with GPS connectivity for tracking stolen bikes, and chose Vodafone s Global M2M platform for managed connectivity. The global SIM can roam to other networks, making tracking more robust and making it easy for VANMOOF to expand globally. VANMOOF can manage all of its bikes from one place including monitoring distance covered, sending service alerts or locking the bike remotely if it has been stolen.

6 M2M solutions for consumer goods Making M2M work for you The applications for M2M in the consumer goods industry are broad and far-reaching. Vodafone can help you to get the most from this technology. A proven approach Incorporating M2M technology into the assets and equipment you use throughout your operations has huge potential benefits, but integration, management and governance can be complicated. You need a partner who can help you avoid problems and deliver results quickly. We adopt a consulting-led engagement model to support you at every stage of the technology implementation, helping you to adapt your business model and providing a solid foundation to respond to industry challenges. Our experts will help you answer all the big questions along the way: from the installation of M2M devices in your supply chain and stores, to systems integration that enables data monitoring, reporting and analysis. The end result is an M2M solution that s perfectly tailored to your business and your objectives. Consultancy Requirements analysis Strategy and business case development Solution design and development Workshops Project management Piloting Implementation Technical on-boarding Rollout support Operational services Service desk Training Support Service management A complete solution Vodafone delivers a reliable, end-to-end solution that includes: Packaged Connected Products, such as our Connected Cabinets solution, which include tried-and-tested combinations of hardware and connectivity. Fully managed connectivity, on the world s most expansive wireless networks for reliable national and international coverage. Our Global M2M Platform, which gives you a single web-based tool for monitoring and managing all your M2M services and requesting support. Logistics, including help with forecasting, setting up tariffs and billing, and working with third parties. Comprehensive support, including a dedicated service management team and a global, 24/7 service desk for ordering, fault reporting and operational issues. A global partner network, bringing together the right hardware, application and service providers for your specific requirements. World-leading SLAs, that support your worldwide operations and are tailored to your business objectives at a local or global level. Project and programme management Meeting cost, time, quality and client satisfaction objectives

7 7 Why Vodafone? M2M has the potential to become a key differentiator in the consumer goods industry. So your choice of M2M provider is critically important. Here are three good reasons why you should choose Vodafone. Deep experience transforming business with M2M We ve got more than 20 years of experience in M2M and have delivered some of the world s leading M2M solutions. Today over 400 dedicated M2M experts put this experience to work for you: at a global level, in planning international deployments, and at a local level, to provide essential insight into consumer needs and the retail environment. No other operator can match this level of M2M expert experience, so you can put your trust in Vodafone to transform your business. Global networks you can rely on Vodafone has mobile operations in 27 countries, partners with mobile networks in 48 more, and fixed broadband operations in 17 markets. As of 31 March 2014, Vodafone had 434 million mobile customers and 9 million broadband customers, and 17.5 million M2M connections. Our scale doesn t just give you the confidence that we operate wherever you have sites and shoppers. It means we can offer competitive contracts and can guarantee high-quality service. Want proof of our experience? Don t just take our word for it. We ve been highly rated by leading industry analysts such as Current Analysis and Machina Research. We were also positioned as a Leader in the Gartner Magic Quadrant for Managed Machine-to- Machine Services. Visit m2m.vodafone.com/ why_vodafone/ to find out more. The solutions and support you need to make M2M simple When sales are on the line, you need to be able to trust your provider to give you the support you need. We know that building an M2M solution can be complex. We focus on making it simple. We give you a single point of contact, bringing together the right hardware, application and service providers for you, and ensuring they work together seamlessly with your supply chain and point-ofsale operations on our global network. And our fully owned Global M2M Platform gives you a single web-based interface for tracking the status of all your M2M devices in real time and for raising support issues and provisioning requests. The result? We offer you unrivalled levels of connectivity and service, helping you put M2M to work for your business. Start your journey Vodafone is uniquely positioned to help you to take advantage of M2M technology. We support your brand as you reach out to shoppers through new channels and grow revenues in international markets, helping you to manage costs and control your supply chain. To find out more about Vodafone s M2M solutions for consumer goods, please contact your Vodafone account manager, m2m@vodafone.com, or visit m2m.vodafone.com.

8 m2m.vodafone.com Vodafone Group This document is issued by Vodafone in confidence and is not to be reproduced in whole or in part without the prior written permission of Vodafone. Vodafone and the Vodafone logos are trademarks of the Vodafone Group. Other product and company names mentioned herein may be the trademarks of their respective owners. The information contained in this publication is correct at time of going to print. Such information may be subject to change, and services may be modified supplemented or withdrawn by Vodafone without prior notice. All services are subject to terms and conditions, copies of which may be obtained on request.

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