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Building Brands. Building Business.




Digital Marketing 2011
20 Best-In-Class New Media Campaigns You Should Know About




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2
Our clients are asking a lot of questions about new media. Which applications
resonate with consumers? Which ones will deliver brand equity? Which are fads and which
have staying power? Which deliver the best ROI?



To help answer these questions, we’ve scanned the virtual world to find examples that we think
are noteworthy; NOT to suggest they are applications to follow, but simply initiatives
that have influenced our thinking.

The following report highlights more than 20 examples that we feel are worthy of your
consideration. Some are interesting for their approach, others for their execution. At any rate, I
think you’ll find them all to be provocative and perhaps helpful in shaping your digital strategy.

I’d be happy to hear from you if you want to explore this further, or if you’re interested in
finding out how Watt International can help you get more people, to buy more things,
more often.

Sincerely,




Patrick Rodmell
President + CEO
Watt International
prodmell@wattintl.com



                                                                                                     3
introduction

the growth of
               mobile marketing
Here are a few trends that highlight the growth in importance
of new media and mobile marketing:

> In the US, nearly 47% of mobile subscribers were mobile media users
  (browsed the mobile web, accessed apps, downloaded content or used
  SMS)(1)

> In early 2011, smartphone ownership in the US increased to over 27%
  (from 16.8% the previous year)(2)

> 74% of consumers globally who use retail touchpoints and the
  Internet to research products will make their purchases in-store(3)

> 68% of Facebook users in the US are more likely to buy a product
  or visit a retailer based on a positive Facebook friend referral(4)

> There are over 5.3 billion mobile subscribers worldwide (77% of the
  world population)(5)




                                                                        4
the changing landscape of
                       digital marketing
In response to the rapidly evolving new media landscape, brands today must successfully navigate
many new media channels. Using text messaging, mobile and regular websites, mobile ads,
proximity marketing, and smartphone applications, brands have the potential to know where the
shopper is and to interact with them, often in real-time.

As they develop their approach to new media channels, retailers and brand owners are increasingly
focusing on the following areas of brand leverage:

Shopper Empowerment (creating tailored experiences controlled by the user)

Brand Engagement (integrating the brand with social media, apps and games)

Incentives & Loyalty (text, location-based apps and 2D barcodes for coupons and deals)

Here are our top 20 picks for these categories.




                                                                                                    5
shopper empowerment

building
            a trust interface

ASDA in the UK has initiated a “price guarantee” program, in response to
recent price wars being waged between the major supermarket retailers.
Shoppers are invited to visit the Price Guarantee website, and enter
the items they purchased the day before to compare the cost with the
competition’s prices. ASDA reimburses shoppers the difference, plus a
penny, if any items prove to be cheaper elsewhere.




  Watt’s
  POV
Although it’s had some cynical response from competitors, ASDA’s system
reinforces a sense of trust in shoppers by institutionalizing transparency.




                                                            http://www.asdapriceguarantee.co.uk



                                                                                                  7
shopper empowerment

social shopping:
                               group-buying websites
Customers of 4Food in New York City have the option to create and advertise,
via social networking sites, their own version of a burger. If that customized
burger is selected by any other customers, the originator will receive 25 cents
off of any subsequent purchases. Orders taken in the restaurant are processed
on iPads.




  Watt’s
  POV
This concept blends customization, social networking and incentives
for an in-store and online experience that is fully integrated.
We like the use of iPads for order-taking too.




                                                                                  http://4food.com




                                                                                                     8
shopper empowerment

social media
                         and the brand
The Facebook “Like” button on branded websites allows
users to indicate their preference for a brand and share
other information with their friends. Brands like Levi’s are
gradually incorporating this feature into their sites on a
per-item basis, creating interaction with each product.




  Watt’s
  POV
The Facebook “Like” feature on
websites is a clever solution to
the potential problem of brands                                http://www.levi.com
invading the personal space of
the social networking site.




                                                                                     9
shopper empowerment

social media
       and shopping
The “Just bought it” app allows shoppers to exchange ideas,
photographs and comments on items they have recently
purchased. Signing on through Twitter allows users to browse
categorized purchases made by other Twitter shoppers as
they tweet details of their shopping trips.




  Watt’s
  POV
Justbought.it is like Facebook for shoppers, and illustrates
how consumers like to compartmentalize their online
social activity.


                                                               http://justbought.it




                                                                                      10
shopper empowerment

interactive
                        browsing
The clothing store Tobi trialed a virtual dressing room on their
website last year that gave at-home shoppers the ability to
virtually try on clothing using a web cam.

Macy’s Department stores have a version in-store currently
that allows the user to send images to their friends for
feedback, or to share them on Facebook.




  Watt’s
  POV                                                              http://bit.ly/aeQNqs
When integrated with social networking sites like Facebook,
this tool becomes a retail extension of a social networking
experience.




                                                                                          11
shopper empowerment

socially
     interactive objects
A recently developed app called “Stickybits” allows users
to embed digitally coded messages to physical objects,
using barcode stickers that they buy from the site, or
by attaching messages to an existing barcode.

Others who scan the code can view content and add their
own responses.




  Watt’s
  POV
This app could be used by manufacturers or retailers
for attaching digital information to products in-store:
an appliance with a manual and instructional video
attached, for example.




                                                            http://www.stickybits.com




                                                                                        12
shopper empowerment

relationship
                             building
Ford Motor Company recently concluded a six-month social media
experiment in which they gave 100 “agents” (members of the public)
a free Fiesta for publicly “lifecasting” their experiences in the car.
Recipients reviewed the car – which had yet to be released in the
United States – and documented their experiences on blogs, Twitter,
Flickr and YouTube. Their experiences built an authentic story that
was then published online at FiestaMovement.com

This campaign generated over 5 million engagements on social
networks but more importantly, 50,000 individuals said that they
desired to know more about the Fiesta when it comes out and 97%
of those didn’t currently drive a Ford vehicle.




  Watt’s
  POV
As customers become more skeptical and distrusting of the product
claims of corporations, allowing other people to extol the virtues
of your brand through social media can help create trust and an
“authentic” emotional bond between a consumer and your brand.



                                                                         http://www.fiestamovement.com




                                                                                                         13
shopper empowerment

mobile marketing apps
     for shopping centers
Yorkdale Shopping Centre, one of Canada’s premier shopping
destinations, recently launched an iPhone app to provide a more
convenient and enhanced shopping experience. The app helps
shoppers and retailers connect on the latest offers and dynamic
promotions, driving traffic to their stores. Parking availability is
updated in real time and an interactive map gives shoppers the
convenience of mapping their route from store to store.




  Watt’s
  POV
Long before the recession hit, consumers had already begun
developing mall fatigue. Larger retailers, the anchor in most
shopping centers, are increasingly shuttering their doors, putting
greater pressure on smaller retailers to remain relevant and drive
traffic to their stores. Mobile apps are one tool that retailers can
use to engage shoppers and create an enhanced customer
experience. Retailers can track the navigation patterns of shoppers
and learn which stores they are visiting, giving them valuable data
in which to base personalized offers and loyalty promotions.
                                                                       http://www.yorkdale.com




                                                                                                 14
shopper empowerment

product information
                                      at your finger tips
Consumer Reports Mobile Shopper™ gives customers the ability to
search, browse, or scan a barcode to access information and pricing
for the product, as well as reviews and buying advice. You can also
view local results, shop online and see a PriceGrabber comparison
chart in-app before selecting an actual retailer.




  Watt’s
  POV
It’s no longer enough to just focus on marketing activities that
get customers in-store. With the proliferation of technologies like
barcode scanners, which eliminate the need to be in front of a
computer [often at home] to research product specs and prices,
shoppers are presented with alternative choices in real time.
Retailers will need to contend with savvy, informed shoppers
who are often as, if not more, knowledgeable than their staff.




                                                                      http://www.consumerreports.org



                                                                                                       15
brand engagement

browse
             and buy
Best Buy now features QR codes on in-store products,
allowing shoppers to scan the codes for further information.
Shoppers can also go to the Best Buy idea exchange blog,
IDEAX, to post their suggestions on the brand’s recent
initiatives, including the in-store QR code.




  Watt’s
  POV
Best Buy is taking ownership of the information that shoppers
seek on their smartphones before making a purchase in-store.




                                                                http://bestbuyideax.com




                                                                                          17
brand engagement

just walk in
                     to get your kicks
Shopkick is a smartphone application that uses a transmitter
to register shoppers as they walk through the door, earning
them points (“kickbucks”) toward prizes and the purchase of
store items.

As of August 2010, a number of stores, including about
300 malls, had installed transmitters for the application.




  Watt’s
  POV
This is a simple but powerful enhancement on the retail-based
shopper incentive gaming app. The rule of thumb should
always be: make it simple for the shopper.




                                                                http://www.shopkick.com/app.html




                                                                                                   18
brand engagement

brand apps
               to enhance experience
Pizza Tracker is a system that tracks your Domino’s pizza, from
the oven, to the rack, to the time it left the store, and then
tells you who your delivery person is.

The system operates through an app on a mobile phone, or
through an online interface.




  Watt’s
  POV
Marketing systems like these go a long way in addressing the
consumer desire for transparency and clear communication.




                                                                  http://bit.ly/cM6rTP




                                                                                         19
brand engagement

“it’s your brand”
TWEAK, a lifestyle footwear and apparel brand, leverages
the vast audience of popular celebrities on social media sites
to solicit fan ideas for new product designs. They then collect
these ideas and produce footwear and apparel based on input
from their fans. TWEAK’s motto: “It’s Your Brand”, couldn’t be
more true. Even the TWEAK website gives users the ability to
“tweak” the site and make it their own.




  Watt’s
  POV
By putting the consumer in control, TWEAK has created a
brand that is relevant to the 21st century shopper. Rather than
dictate to its customers, TWEAK listens and incorporates their
ideas into new products, and speaks to them through the
media in their language.




                                                                  http://www.tweakfootwear.com



                                                                                                 20
brand engagement

integrating
               social media touch-points
The Toys-R-Us social media marketing involves Facebook,
YouTube, a Deals Widget, Twitter and blog presence.

The company offers “deals widgets” for desktop, social
media sites and mobile Internet use. The user is alerted via
these channels to deals or new products.




  Watt’s
  POV
This is a great example of successful integration of new
media channels.




                                                               http://twitter.com/toysrus




                                                                                            21
brand engagement
                                                                  Strategy « Big Orange Slide                                                                           http://bigorangeslide.com/category/strategy/




online ordering
                                      made fun
The Maynards “Most Wanted” campaign involves print ads
that invite respondents to hunt for each of the candy bandits
(“Jerry Bomb”, “Sour Face”, “Fuzzy Malone”, “The Swede”
and “Biggie Bear”). Contestants “Like” the Maynards page
on Facebook to enter, then scan the QR code on the poster of
each candy character they find. Contestants are eligible to win
several prizes, and up to a $25,000 “reward”.




  Watt’s
  POV
This campaign is fun and inventive, and includes a tangible                 In addition to their role as brand awareness pieces, the posters are the top level of a highly interactive consumer experience.
                                                                            Using their smart phone (via QR codes, SMS messaging and the Maynards’ Most Wanted mobile site) consumers can
and generous incentive that easily outdoes the offers of                    interact with the posters. A successful engagement leads to a “capture” that drives them to a Facebook application, where
                                                                                                  http://www.facebook.com/maynardscanada
                                                                            the $25,000 reward contest plays out.

other brands.                                                     8 of 18                                                                                                                          10/8/10 11:58 AM




                                                                                                                                                                                                                       22
brand engagement

augment
               your reality
Quiznos has teamed up with makers of the Layar app to
enable users to locate the nearest Quiznos restaurants using
their smartphone.

Using augmented reality technology, Layar overlays a map of
Quiznos locations on the image of the area captured by the
user’s smartphone.




  Watt’s
  POV
Augmented reality is being experimented with by many           http://www.layar.com
brands, but in this example, Quiznos is offering a more
practical application.




                                                                                      23
brand engagement

interacting
                with the consumer
Starbucks invites users of their website and Twitter page
to share ideas on how to improve the brand.

The company then lists the implemented ideas in the “Ideas in
Action” section of their website.




  Watt’s
  POV
This is a simple, fun way of interacting with users, while
showing them the results of their input in real time.




                                                                http://mystarbucksidea.force.com




                                                                                                   24
brand engagement

online ordering
                          made fun
Dunkin’ Donuts has developed a new mobile web and iPhone
app to coordinate and collect group orders for “runs” to the
coffee and donut chain.

The iPhone App features the ability to keep track of past
orders, receive reminders, and display your run status.




  Watt’s
  POV
The Dunkin’ Run represents an effective way to encourage
brand engagement, by providing a simple service that creates
novelty while simplifying and expediting the ordering process.




                                                                 http://www.dunkinrun.com




                                                                                            25
incentives & loyalty

rewards
    go mobile
Using the mobile gaming app Foursquare, users can earn
loyalty points at the stores they frequent. By “checking in”
online as they enter store locations, gamers acquire badges
and points.

When Starbucks customers acquire a “mayor” badge, they
receive a dollar off their favorite drink, every time they enter
the store.




  Watt’s
  POV
In spite of the relatively slight incentives, Starbucks has
enjoyed a lot of attention and healthy participation
among consumers.



                                                                   http://foursquare.com




                                                                                           27
incentives & loyalty

location-based
                              mobile marketing
PepsiCo has partnered with Foursquare, the location-based
gaming app. The gaming app sends invites to users to sign on
for loyalty points that can be redeemed for products, as they
approach stores that carry Pepsi.

Pepsi Loot, introduced in June, works in conjunction with fast
food chains.




  Watt’s
  POV
Foursquare also shares information with its partnering
companies on user activity. This gives companies the ability to
adapt their marketing like never before.




                                                                  http://bit.ly/9fd9St




                                                                                         28
incentives & loyalty

2D barcodes
                          in large print
Duane Reade, the largest retail pharmacy chain in New York
City, now owned by Walgreens, recently used 2D barcodes in
their advertising to build traffic and promote private brands.

The ads are mainly intended to build awareness and promote
interactivity, however users will receive news on deals
on recently introduced private label products and other
deals in-store.




  Watt’s
  POV
This is one of the best examples of 2D barcode marketing we
have seen. It blatantly and humorously addresses the potential
problem of shopper comprehension.




                                                                 29
honorable mentions

We have updated our top list of new media retail samples to include
a few more up-to-date developments.

Here are a few samples that are still relevant, but have either been
enhanced or are just not as exciting as they were 6 months ago!




                                                                       30
social shopping: group buying websites

A number of group-buying websites offer shoppers the
opportunity to receive coupons only once several people sign
up for a discount voucher within a limited time frame.

Often members of Facebook will announce deals, encouraging
others to participate.




  Watt’s
  POV
These sites encourage trial and build excitement around the
brand. The benefits include positive brand self-promotion
among shopper groups.                                          http://www.socialbuy.com




                                                               http://www.groupon.com




                                                                                          31
location-based apps for shopping

Loopt enables users to connect with friends nearby and keep
track of where they are. It also gives users special offers and
coupons as they approach retailers in the vicinity of their phone,
including Macy’s and Best Buy.




  Watt’s
  POV
Applications such as Loopt are enabling retailers to draw
consumers back into the retail store, and away from
PC online shopping.


                                                                     http://www.loopt.com




                                                                                            32
social media and the brand

Facebook users in the US become “fans” of companies, brands
or products 20 million times a day – up 500% in just
one year.

The Facebook “Like” button is going to begin appearing
on outside websites, so that users can indicate their
preference for brands while viewing those websites and share
information with their friends.



                                                                 http://www.facebook.com
  Watt’s
  POV
The plans for the “Like” feature on Facebook indicate a clever
solution to the potential problem of brands invading the
personal space of the social networking site.




                                                                                           33
browse and buy

Best Buy in the US offers shoppers the ability to browse and
purchase items via the website on their phone, browse and
save or receive text alerts for time-sensitive deals.

In conjunction with Loopt, the location-based incentives
app, Best Buy is offering smartphone users loyalty perks and
coupons for entering the vicinity of a Best Buy location.




  Watt’s
  POV
Increasingly, retailers are able to offer shoppers the
opportunity to tailor and control their own product
researching and shopping experience, mainly through apps.




                                                               http://bit.ly/bMGePO




                                                                                      34
browse and research

Retailers such as Canadian Tire and Walmart Canada have
created mobile websites for mobile phones – users can
browse through all products, reviews and flyers on their
mobile phone.




  Watt’s
  POV
Retailers in Canada are aware of the importance of mobile
marketing, and are stepping up their efforts to be involved.




                                                               http://bit.ly/diLDUu




                                                                                      35
location-based gaming apps applied to retail

The MyTown app is a location-based gaming app that invites
players to check in at real-world retail locations in order to
receive points. They can also purchase virtual goods and real
estate and track where their friends are shopping.

H&M offers its “Blues” savings incentives as players approach
the store to entice them inside.




  Watt’s
  POV
These apps are quickly being recognized by retailers as
an opportunity to engage potential shoppers in a more
interactive, fun way through gaming.




                                                                 http://www.booyah.com




                                                                                         36
texting to save

In 2008, Jiffy Lube in the US initiated a text-based promotion
to attract younger customers who may not be as receptive to
Jiffy’s TV or print ads.

Users received ads that were appended to their text alert
content, such as Yahoo News and other services. Users were
then encouraged to text in to receive varying amounts off
their next visit.




  Watt’s
  POV
Even the most basic marketing initiatives using SMS can be
effective at building customer loyalty through incentives.




                                                                 37
Watt International: who we are and why you should care.
Does your brand break through the noise? Getting into the hearts and               and other supporting agencies where existing relationships exist, we
minds of consumers, and eventually their wallets, is challenging at                help uncover the most meaningful insights, set the right strategies,
the best of times. And if all the pieces of your brand – your research,            and deliver results-oriented creative solutions across every brand
insights, strategy and creative – aren’t cut from the same cloth, you’re           touchpoint. Through this integrated approach, our clients get single-
fighting an even tougher uphill battle.                                            source management, efficiencies in account management, and a
                                                                                   brand experience that’s connected from the first insight to the last
The key is quite simple – get everyone to sing from the same song                  creative expression.
sheet. But if you’re dealing with multiple consultants and agencies
something eventually gets lost in translation. We are a truly integrated           So if you’re finding that the pieces of your brand puzzle just don’t seem
retail agency, with over forty years experience working in over forty              to fit, we’d love to talk. Our single-source, best-in-class, integrated retail
countries around the world. Working collaboratively with our clients               model works, and we’d love to show you how.




                             research                   insight     strategy                 innovation     creative



                             • Consumer + Shopper                   • Brand Positioning                     • Brand Name,
                               Research                             • Marketing Strategies                    Identity + Guidelines
                             • Financial Analysis                   • Channel Strategies                    • Retail Design
                             • Stakeholder Interviews               • Product + Merchandise                 • Package Design
                             • Trends + Innovation Reports            Strategies                            • Merchandising +
                                                                    • Private Brand Architecture              POP Displays
                             • SWOT + Best
                                                                    • Business + Strategic                  • Integrated
                               Practice Analysis
                                                                      Planning                                Communications
                             • Need State + Path to                                                         • BrandvertisingTM
                               Purchase Modeling                    • Management Consulting
                                                                    • Performance                           • Web, Mobile +
                                                                      Measurement (KPIs)                      Social Media
                                                                                                            • Total Production
                                                                                                              Management
                                                                                                            • Value Engineering
                                                                                                                                                                    38
appendix
     Page 4: (1) Comscore “Mobile Year in Review”, Feb 2011; (2) Comscore “Mobile Year in Review”, Feb 2011; (3) TNS, “Global Telecom insights, 2010 Priorities”; (4) Morpace, emarketer,
     “Facebook’s Impact on Retailers”, Apr 1, 2010; (5) MobiThinking, Global Mobile Statistics 2011

     Page 7: Sample 1 - ASDA Press Release, “ASDA Price Guarantee: Our new promise every time you shop”, Apr 27, 2010

     Page 11: Sample 5 - Stores Magazine, D.M. Amato-McCoy, “That’s So You”, Apr 2010

     Page 14: Sample 10: South Orange Patch, P. Hoops “Get a Kick out of Shopping with a New App”, Aug 25, 2010

     Page 28: The New York Times, S. Clifford, “Linking customer loyalty with social networking”, Apr 28, 2010

     Page 29: Sample 20: Drug Store News, A. Alexander, “Duane Reade Teams up with JagTag”, Apr 28, 2010

     Page 31: Contra Costa Times, E Mitchell, “Pack mentality can round up deals”, Apr 4, 2010

     Page 32: The Wall Street Journal, G.A. Fowler, “Software Apps Provide Shoppers With Rewards to Help Lure Them Into Stores”, Apr 21, 2010

     Page 33: Stores Magazine, S. Reda, “NRF Retail Innovation & Marketing Conference Highlights Conference Wrap-up, Apr 2010

     Page 34: Stores Magazine, E. Davis, “Mobile 101: a retailer’s guide”, Jan 25, 2010


     Page 36: Social Times, N. Vidyarthi, “H&M offers virtual goods within location-based game MyTown”, Mar 2, 2010




39                                                                                                                                                                                          39
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  Contact us at 416 364 9384 x 240 or contactus@wattintl.com
  to talk about how we might be able to support your business.


  North America            China

  300 Bayview Avenue       24F,520 YiShan Road
  Toronto, ON              Shanghai 200235
  Canada M5A 3R7           P.R. China



T 416 364 9384           T 021-54250172
F 416 364 1098           F 021-64410492


  please visit us at   www.wattintl.com

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Digital Marketing 2011

  • 1. Building Brands. Building Business. Digital Marketing 2011 20 Best-In-Class New Media Campaigns You Should Know About Scan this QR code with your mobile device to join our Linkedin community. Don’t have a QR code reader? Download it for your iPhone or Blackberry.
  • 2. 2
  • 3. Our clients are asking a lot of questions about new media. Which applications resonate with consumers? Which ones will deliver brand equity? Which are fads and which have staying power? Which deliver the best ROI? To help answer these questions, we’ve scanned the virtual world to find examples that we think are noteworthy; NOT to suggest they are applications to follow, but simply initiatives that have influenced our thinking. The following report highlights more than 20 examples that we feel are worthy of your consideration. Some are interesting for their approach, others for their execution. At any rate, I think you’ll find them all to be provocative and perhaps helpful in shaping your digital strategy. I’d be happy to hear from you if you want to explore this further, or if you’re interested in finding out how Watt International can help you get more people, to buy more things, more often. Sincerely, Patrick Rodmell President + CEO Watt International prodmell@wattintl.com 3
  • 4. introduction the growth of mobile marketing Here are a few trends that highlight the growth in importance of new media and mobile marketing: > In the US, nearly 47% of mobile subscribers were mobile media users (browsed the mobile web, accessed apps, downloaded content or used SMS)(1) > In early 2011, smartphone ownership in the US increased to over 27% (from 16.8% the previous year)(2) > 74% of consumers globally who use retail touchpoints and the Internet to research products will make their purchases in-store(3) > 68% of Facebook users in the US are more likely to buy a product or visit a retailer based on a positive Facebook friend referral(4) > There are over 5.3 billion mobile subscribers worldwide (77% of the world population)(5) 4
  • 5. the changing landscape of digital marketing In response to the rapidly evolving new media landscape, brands today must successfully navigate many new media channels. Using text messaging, mobile and regular websites, mobile ads, proximity marketing, and smartphone applications, brands have the potential to know where the shopper is and to interact with them, often in real-time. As they develop their approach to new media channels, retailers and brand owners are increasingly focusing on the following areas of brand leverage: Shopper Empowerment (creating tailored experiences controlled by the user) Brand Engagement (integrating the brand with social media, apps and games) Incentives & Loyalty (text, location-based apps and 2D barcodes for coupons and deals) Here are our top 20 picks for these categories. 5
  • 6.
  • 7. shopper empowerment building a trust interface ASDA in the UK has initiated a “price guarantee” program, in response to recent price wars being waged between the major supermarket retailers. Shoppers are invited to visit the Price Guarantee website, and enter the items they purchased the day before to compare the cost with the competition’s prices. ASDA reimburses shoppers the difference, plus a penny, if any items prove to be cheaper elsewhere. Watt’s POV Although it’s had some cynical response from competitors, ASDA’s system reinforces a sense of trust in shoppers by institutionalizing transparency. http://www.asdapriceguarantee.co.uk 7
  • 8. shopper empowerment social shopping: group-buying websites Customers of 4Food in New York City have the option to create and advertise, via social networking sites, their own version of a burger. If that customized burger is selected by any other customers, the originator will receive 25 cents off of any subsequent purchases. Orders taken in the restaurant are processed on iPads. Watt’s POV This concept blends customization, social networking and incentives for an in-store and online experience that is fully integrated. We like the use of iPads for order-taking too. http://4food.com 8
  • 9. shopper empowerment social media and the brand The Facebook “Like” button on branded websites allows users to indicate their preference for a brand and share other information with their friends. Brands like Levi’s are gradually incorporating this feature into their sites on a per-item basis, creating interaction with each product. Watt’s POV The Facebook “Like” feature on websites is a clever solution to the potential problem of brands http://www.levi.com invading the personal space of the social networking site. 9
  • 10. shopper empowerment social media and shopping The “Just bought it” app allows shoppers to exchange ideas, photographs and comments on items they have recently purchased. Signing on through Twitter allows users to browse categorized purchases made by other Twitter shoppers as they tweet details of their shopping trips. Watt’s POV Justbought.it is like Facebook for shoppers, and illustrates how consumers like to compartmentalize their online social activity. http://justbought.it 10
  • 11. shopper empowerment interactive browsing The clothing store Tobi trialed a virtual dressing room on their website last year that gave at-home shoppers the ability to virtually try on clothing using a web cam. Macy’s Department stores have a version in-store currently that allows the user to send images to their friends for feedback, or to share them on Facebook. Watt’s POV http://bit.ly/aeQNqs When integrated with social networking sites like Facebook, this tool becomes a retail extension of a social networking experience. 11
  • 12. shopper empowerment socially interactive objects A recently developed app called “Stickybits” allows users to embed digitally coded messages to physical objects, using barcode stickers that they buy from the site, or by attaching messages to an existing barcode. Others who scan the code can view content and add their own responses. Watt’s POV This app could be used by manufacturers or retailers for attaching digital information to products in-store: an appliance with a manual and instructional video attached, for example. http://www.stickybits.com 12
  • 13. shopper empowerment relationship building Ford Motor Company recently concluded a six-month social media experiment in which they gave 100 “agents” (members of the public) a free Fiesta for publicly “lifecasting” their experiences in the car. Recipients reviewed the car – which had yet to be released in the United States – and documented their experiences on blogs, Twitter, Flickr and YouTube. Their experiences built an authentic story that was then published online at FiestaMovement.com This campaign generated over 5 million engagements on social networks but more importantly, 50,000 individuals said that they desired to know more about the Fiesta when it comes out and 97% of those didn’t currently drive a Ford vehicle. Watt’s POV As customers become more skeptical and distrusting of the product claims of corporations, allowing other people to extol the virtues of your brand through social media can help create trust and an “authentic” emotional bond between a consumer and your brand. http://www.fiestamovement.com 13
  • 14. shopper empowerment mobile marketing apps for shopping centers Yorkdale Shopping Centre, one of Canada’s premier shopping destinations, recently launched an iPhone app to provide a more convenient and enhanced shopping experience. The app helps shoppers and retailers connect on the latest offers and dynamic promotions, driving traffic to their stores. Parking availability is updated in real time and an interactive map gives shoppers the convenience of mapping their route from store to store. Watt’s POV Long before the recession hit, consumers had already begun developing mall fatigue. Larger retailers, the anchor in most shopping centers, are increasingly shuttering their doors, putting greater pressure on smaller retailers to remain relevant and drive traffic to their stores. Mobile apps are one tool that retailers can use to engage shoppers and create an enhanced customer experience. Retailers can track the navigation patterns of shoppers and learn which stores they are visiting, giving them valuable data in which to base personalized offers and loyalty promotions. http://www.yorkdale.com 14
  • 15. shopper empowerment product information at your finger tips Consumer Reports Mobile Shopper™ gives customers the ability to search, browse, or scan a barcode to access information and pricing for the product, as well as reviews and buying advice. You can also view local results, shop online and see a PriceGrabber comparison chart in-app before selecting an actual retailer. Watt’s POV It’s no longer enough to just focus on marketing activities that get customers in-store. With the proliferation of technologies like barcode scanners, which eliminate the need to be in front of a computer [often at home] to research product specs and prices, shoppers are presented with alternative choices in real time. Retailers will need to contend with savvy, informed shoppers who are often as, if not more, knowledgeable than their staff. http://www.consumerreports.org 15
  • 16.
  • 17. brand engagement browse and buy Best Buy now features QR codes on in-store products, allowing shoppers to scan the codes for further information. Shoppers can also go to the Best Buy idea exchange blog, IDEAX, to post their suggestions on the brand’s recent initiatives, including the in-store QR code. Watt’s POV Best Buy is taking ownership of the information that shoppers seek on their smartphones before making a purchase in-store. http://bestbuyideax.com 17
  • 18. brand engagement just walk in to get your kicks Shopkick is a smartphone application that uses a transmitter to register shoppers as they walk through the door, earning them points (“kickbucks”) toward prizes and the purchase of store items. As of August 2010, a number of stores, including about 300 malls, had installed transmitters for the application. Watt’s POV This is a simple but powerful enhancement on the retail-based shopper incentive gaming app. The rule of thumb should always be: make it simple for the shopper. http://www.shopkick.com/app.html 18
  • 19. brand engagement brand apps to enhance experience Pizza Tracker is a system that tracks your Domino’s pizza, from the oven, to the rack, to the time it left the store, and then tells you who your delivery person is. The system operates through an app on a mobile phone, or through an online interface. Watt’s POV Marketing systems like these go a long way in addressing the consumer desire for transparency and clear communication. http://bit.ly/cM6rTP 19
  • 20. brand engagement “it’s your brand” TWEAK, a lifestyle footwear and apparel brand, leverages the vast audience of popular celebrities on social media sites to solicit fan ideas for new product designs. They then collect these ideas and produce footwear and apparel based on input from their fans. TWEAK’s motto: “It’s Your Brand”, couldn’t be more true. Even the TWEAK website gives users the ability to “tweak” the site and make it their own. Watt’s POV By putting the consumer in control, TWEAK has created a brand that is relevant to the 21st century shopper. Rather than dictate to its customers, TWEAK listens and incorporates their ideas into new products, and speaks to them through the media in their language. http://www.tweakfootwear.com 20
  • 21. brand engagement integrating social media touch-points The Toys-R-Us social media marketing involves Facebook, YouTube, a Deals Widget, Twitter and blog presence. The company offers “deals widgets” for desktop, social media sites and mobile Internet use. The user is alerted via these channels to deals or new products. Watt’s POV This is a great example of successful integration of new media channels. http://twitter.com/toysrus 21
  • 22. brand engagement Strategy « Big Orange Slide http://bigorangeslide.com/category/strategy/ online ordering made fun The Maynards “Most Wanted” campaign involves print ads that invite respondents to hunt for each of the candy bandits (“Jerry Bomb”, “Sour Face”, “Fuzzy Malone”, “The Swede” and “Biggie Bear”). Contestants “Like” the Maynards page on Facebook to enter, then scan the QR code on the poster of each candy character they find. Contestants are eligible to win several prizes, and up to a $25,000 “reward”. Watt’s POV This campaign is fun and inventive, and includes a tangible In addition to their role as brand awareness pieces, the posters are the top level of a highly interactive consumer experience. Using their smart phone (via QR codes, SMS messaging and the Maynards’ Most Wanted mobile site) consumers can and generous incentive that easily outdoes the offers of interact with the posters. A successful engagement leads to a “capture” that drives them to a Facebook application, where http://www.facebook.com/maynardscanada the $25,000 reward contest plays out. other brands. 8 of 18 10/8/10 11:58 AM 22
  • 23. brand engagement augment your reality Quiznos has teamed up with makers of the Layar app to enable users to locate the nearest Quiznos restaurants using their smartphone. Using augmented reality technology, Layar overlays a map of Quiznos locations on the image of the area captured by the user’s smartphone. Watt’s POV Augmented reality is being experimented with by many http://www.layar.com brands, but in this example, Quiznos is offering a more practical application. 23
  • 24. brand engagement interacting with the consumer Starbucks invites users of their website and Twitter page to share ideas on how to improve the brand. The company then lists the implemented ideas in the “Ideas in Action” section of their website. Watt’s POV This is a simple, fun way of interacting with users, while showing them the results of their input in real time. http://mystarbucksidea.force.com 24
  • 25. brand engagement online ordering made fun Dunkin’ Donuts has developed a new mobile web and iPhone app to coordinate and collect group orders for “runs” to the coffee and donut chain. The iPhone App features the ability to keep track of past orders, receive reminders, and display your run status. Watt’s POV The Dunkin’ Run represents an effective way to encourage brand engagement, by providing a simple service that creates novelty while simplifying and expediting the ordering process. http://www.dunkinrun.com 25
  • 26.
  • 27. incentives & loyalty rewards go mobile Using the mobile gaming app Foursquare, users can earn loyalty points at the stores they frequent. By “checking in” online as they enter store locations, gamers acquire badges and points. When Starbucks customers acquire a “mayor” badge, they receive a dollar off their favorite drink, every time they enter the store. Watt’s POV In spite of the relatively slight incentives, Starbucks has enjoyed a lot of attention and healthy participation among consumers. http://foursquare.com 27
  • 28. incentives & loyalty location-based mobile marketing PepsiCo has partnered with Foursquare, the location-based gaming app. The gaming app sends invites to users to sign on for loyalty points that can be redeemed for products, as they approach stores that carry Pepsi. Pepsi Loot, introduced in June, works in conjunction with fast food chains. Watt’s POV Foursquare also shares information with its partnering companies on user activity. This gives companies the ability to adapt their marketing like never before. http://bit.ly/9fd9St 28
  • 29. incentives & loyalty 2D barcodes in large print Duane Reade, the largest retail pharmacy chain in New York City, now owned by Walgreens, recently used 2D barcodes in their advertising to build traffic and promote private brands. The ads are mainly intended to build awareness and promote interactivity, however users will receive news on deals on recently introduced private label products and other deals in-store. Watt’s POV This is one of the best examples of 2D barcode marketing we have seen. It blatantly and humorously addresses the potential problem of shopper comprehension. 29
  • 30. honorable mentions We have updated our top list of new media retail samples to include a few more up-to-date developments. Here are a few samples that are still relevant, but have either been enhanced or are just not as exciting as they were 6 months ago! 30
  • 31. social shopping: group buying websites A number of group-buying websites offer shoppers the opportunity to receive coupons only once several people sign up for a discount voucher within a limited time frame. Often members of Facebook will announce deals, encouraging others to participate. Watt’s POV These sites encourage trial and build excitement around the brand. The benefits include positive brand self-promotion among shopper groups. http://www.socialbuy.com http://www.groupon.com 31
  • 32. location-based apps for shopping Loopt enables users to connect with friends nearby and keep track of where they are. It also gives users special offers and coupons as they approach retailers in the vicinity of their phone, including Macy’s and Best Buy. Watt’s POV Applications such as Loopt are enabling retailers to draw consumers back into the retail store, and away from PC online shopping. http://www.loopt.com 32
  • 33. social media and the brand Facebook users in the US become “fans” of companies, brands or products 20 million times a day – up 500% in just one year. The Facebook “Like” button is going to begin appearing on outside websites, so that users can indicate their preference for brands while viewing those websites and share information with their friends. http://www.facebook.com Watt’s POV The plans for the “Like” feature on Facebook indicate a clever solution to the potential problem of brands invading the personal space of the social networking site. 33
  • 34. browse and buy Best Buy in the US offers shoppers the ability to browse and purchase items via the website on their phone, browse and save or receive text alerts for time-sensitive deals. In conjunction with Loopt, the location-based incentives app, Best Buy is offering smartphone users loyalty perks and coupons for entering the vicinity of a Best Buy location. Watt’s POV Increasingly, retailers are able to offer shoppers the opportunity to tailor and control their own product researching and shopping experience, mainly through apps. http://bit.ly/bMGePO 34
  • 35. browse and research Retailers such as Canadian Tire and Walmart Canada have created mobile websites for mobile phones – users can browse through all products, reviews and flyers on their mobile phone. Watt’s POV Retailers in Canada are aware of the importance of mobile marketing, and are stepping up their efforts to be involved. http://bit.ly/diLDUu 35
  • 36. location-based gaming apps applied to retail The MyTown app is a location-based gaming app that invites players to check in at real-world retail locations in order to receive points. They can also purchase virtual goods and real estate and track where their friends are shopping. H&M offers its “Blues” savings incentives as players approach the store to entice them inside. Watt’s POV These apps are quickly being recognized by retailers as an opportunity to engage potential shoppers in a more interactive, fun way through gaming. http://www.booyah.com 36
  • 37. texting to save In 2008, Jiffy Lube in the US initiated a text-based promotion to attract younger customers who may not be as receptive to Jiffy’s TV or print ads. Users received ads that were appended to their text alert content, such as Yahoo News and other services. Users were then encouraged to text in to receive varying amounts off their next visit. Watt’s POV Even the most basic marketing initiatives using SMS can be effective at building customer loyalty through incentives. 37
  • 38. Watt International: who we are and why you should care. Does your brand break through the noise? Getting into the hearts and and other supporting agencies where existing relationships exist, we minds of consumers, and eventually their wallets, is challenging at help uncover the most meaningful insights, set the right strategies, the best of times. And if all the pieces of your brand – your research, and deliver results-oriented creative solutions across every brand insights, strategy and creative – aren’t cut from the same cloth, you’re touchpoint. Through this integrated approach, our clients get single- fighting an even tougher uphill battle. source management, efficiencies in account management, and a brand experience that’s connected from the first insight to the last The key is quite simple – get everyone to sing from the same song creative expression. sheet. But if you’re dealing with multiple consultants and agencies something eventually gets lost in translation. We are a truly integrated So if you’re finding that the pieces of your brand puzzle just don’t seem retail agency, with over forty years experience working in over forty to fit, we’d love to talk. Our single-source, best-in-class, integrated retail countries around the world. Working collaboratively with our clients model works, and we’d love to show you how. research insight strategy innovation creative • Consumer + Shopper • Brand Positioning • Brand Name, Research • Marketing Strategies Identity + Guidelines • Financial Analysis • Channel Strategies • Retail Design • Stakeholder Interviews • Product + Merchandise • Package Design • Trends + Innovation Reports Strategies • Merchandising + • Private Brand Architecture POP Displays • SWOT + Best • Business + Strategic • Integrated Practice Analysis Planning Communications • Need State + Path to • BrandvertisingTM Purchase Modeling • Management Consulting • Performance • Web, Mobile + Measurement (KPIs) Social Media • Total Production Management • Value Engineering 38
  • 39. appendix Page 4: (1) Comscore “Mobile Year in Review”, Feb 2011; (2) Comscore “Mobile Year in Review”, Feb 2011; (3) TNS, “Global Telecom insights, 2010 Priorities”; (4) Morpace, emarketer, “Facebook’s Impact on Retailers”, Apr 1, 2010; (5) MobiThinking, Global Mobile Statistics 2011 Page 7: Sample 1 - ASDA Press Release, “ASDA Price Guarantee: Our new promise every time you shop”, Apr 27, 2010 Page 11: Sample 5 - Stores Magazine, D.M. Amato-McCoy, “That’s So You”, Apr 2010 Page 14: Sample 10: South Orange Patch, P. Hoops “Get a Kick out of Shopping with a New App”, Aug 25, 2010 Page 28: The New York Times, S. Clifford, “Linking customer loyalty with social networking”, Apr 28, 2010 Page 29: Sample 20: Drug Store News, A. Alexander, “Duane Reade Teams up with JagTag”, Apr 28, 2010 Page 31: Contra Costa Times, E Mitchell, “Pack mentality can round up deals”, Apr 4, 2010 Page 32: The Wall Street Journal, G.A. Fowler, “Software Apps Provide Shoppers With Rewards to Help Lure Them Into Stores”, Apr 21, 2010 Page 33: Stores Magazine, S. Reda, “NRF Retail Innovation & Marketing Conference Highlights Conference Wrap-up, Apr 2010 Page 34: Stores Magazine, E. Davis, “Mobile 101: a retailer’s guide”, Jan 25, 2010 Page 36: Social Times, N. Vidyarthi, “H&M offers virtual goods within location-based game MyTown”, Mar 2, 2010 39 39
  • 40. Scan this QR code with your mobile device to join our Linkedin community. Don’t have a QR code reader? Download it for your iPhone or Blackberry. Contact us at 416 364 9384 x 240 or contactus@wattintl.com to talk about how we might be able to support your business. North America China 300 Bayview Avenue 24F,520 YiShan Road Toronto, ON Shanghai 200235 Canada M5A 3R7 P.R. China T 416 364 9384 T 021-54250172 F 416 364 1098 F 021-64410492 please visit us at www.wattintl.com