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00/00/00005/6/2010

Engaging and Activating Digitally Enabled Shoppers Along the Purchase Decision JourneyPresentation to PMA

Conventional Wisdom 70% of purchase decisions are made in-store.

Source: Zero-Moment of Truth: Redefining the Consumer Decision Making Process, IRI, October 2009

New Data More than 80% of purchase decisions are now being made outside the store.

65%

always shop from shopping lists

Source: G2/Allrecipes.com Today’s Recipe Box Study, April 2010

Sources: G2/Allrecipes.com Today’s Recipe Box Study, April 2010; IRI 2009; “Planning to Make Unplanned Purchases? The Role of In-store Slack in Budget Deviation”, Journal of Consumer Research, August 2010

Only 26% of shopping list items are branded.

24% of grocery purchases are unplanned.Three in four shoppers plan for those unplanned

purchases.

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The Rise of the Digitally Empowered Shopper

Three Converging Forces

The Google Mindset

24/7 Connectivity

Social Media

1. Research, Research, and More Research

Source: Consumer Packaged Goods Survey, Prospecitiv, Jan 2008

Conventional Wisdom Consumers only research big ticket items online.

Reality 70% research everyday grocery products online.

2. Social Media

Sources: Edelman Trust Barometer, Nielsen

90% trust the opinions of friends who have used the product.

Only 25% of consumers believe advertising is a credible source of product information?

70% trust opinions posted online.

“The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly.”Jonathan Carson, President of Online International, Nielsen

The Conversation

Prism

3. 24/7 ConnectivityMobile is the connective tissue.

51.4%

33.2%

50.1%

64.0%

Global AverageBoomers Gen XGen Y

Q: “Did you use your mobile phone for any shopping activities during the past two

weeks?”

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Emerging Retail Technologies Assessment

Mobile Phone Shopping Activity –by Age Group

Recipe Searches:

49%Shopping Lists:

38%

Coupons:

9%

2/3 of smartphone owners areusing them in the grocery store

(59% for iPhone owners) (46% for iPhone owners)

Source: G2/Allrecipes.com Today’s Recipe Box Study, April 2010

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The Purchase Decision Journey

Consumers are moving outside the purchasing funnel, changing the way they research and buy products.

AWARENESS CONSIDERATION SELECTION PURCHASE LOYALTY

Go to

store

View TV

or print ad

Compare

options

Choose

best option

Buy item Join/align

with brand

FROM A FUNNEL…

TO A PURCHASE DECISION JOURNEY

See TV and OOH

ads

Research product

View video

Visit a store

Purchase product

Send mobile pic

Upload pics of

purchase

Read Facebook

feeds

Customize

a product

Website experience

Discuss product online

Interact with rich media ad Create/

upload video

with an ecosystem of shopper touchpoints

“The shift in consumer decision making means that marketers need to adjust their spending and view the change not as a loss of power over consumers but as an opportunity to be in the right place at the right time, giving them the information and support they need to make the right decisions”The Consumer Decision Journey, McKinsey Quarterly, June 2009

Inspiration

Community

Solutions

Information

Maximizing Commitment

Consumers experience the

brand

Consumers evaluate the entire experience, solidify

opinions and share with others

Consumers seek information that will influence purchase

Consumers survey the store, seek out products, and select brands for purchase

The Purchase Decision Journey

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The Digital Toolkit: Research and Planning Utilities Content Distribution Social Shopping Tools Location Based Marketing Attaching Digital Content to Objects Augmented Reality

PAGE

The Digital Toolkit: Research and Planning Utilities

Pre-Purchase

Point of Purchase

Pre-PurchasePoint of Purchase

Pre-Purchase

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The Digital Toolkit:Content Distribution

KitchenDaily > Dinner Tonight

A meal for every night of the week

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For Wednesday, April 28

Ranchero Macaroni Bake

Mac 'n' cheese lovers get a boost with Pace

Salsa and a crunchy topping of tortilla chips.

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Pre-Purchase

Pre-PurchasePoint of Purchase

Pre-PurchaseExperience

Pre-PurchasePoint of Purchase

Pre-Purchase

Point of Purchase

Point of Purchase

Point of Purchase

Point of Purchase

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Digital Toolkit:The Social Side of Shopping

Point of Purchase

Should I pair with flats or heels?I'm a sucka for sequins ... so obviously when I scored this vintage purplesequins dress for $26 I HAD to get it. It was 50% off!!! Should I pair it with flatsor heels? And should they be NON sequin?

Sammydvintagesubmitted 2 days ago.

42

64 pts.

0

bonnnasubmitted about 11 hours ago

16 pts.

0

erstwhilestylesubmitted about 24 hours ago

40 pts. AshleyJeanne

250

Not amember?

82% 63% 75% 75% 84% 83% 35% 42% 64

%

HEELZ!

Sammy you're so cute! Definitelyneeds to be above the knee. Oryou could make it a mini, throwon some black cage heels and ablack (vintage) boyfriend blazerover it. :-)

Point of Purchase

Point of Purchase

Point of Purchase

Reflection

ExperienceReflection

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The Digital Toolkit:Location Based Marketing

Source: MMA/Luth Research , Mobile Consumer Briefing, March 2010

Consumers are interested in allowing their phone to automatically share their location in exchange for perks, such as free use of mobile applications or mobile coupons.

10% of cell phone owners use mobile location services at least weekly (e.g., map or mobile service that automatically detects location).

(63% for iPhone owners)

50% of those who notice ads while using location-based apps take some action.

Pre-PurchasePoint of Purchase

Pre-PurchasePoint of Purchase

Pre-PurchasePoint of Purchase

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The Digital Toolkit:Attaching Digital Content to Objects

33

Barcodes reveal the secret lives of objects.

Pre-Purchase

ExperienceReflection

Pre-PurchasePoint of PurchaseExperience

Pre-PurchasePoint of Purchase

Pepperidge Farms MilanoPepperidge Farms Milano

CookiesCookies

download barcodedownload barcode

8 scans8 scans

9 bits9 bits

Most recently at: 10 East 40th StreetMost recently at: 10 East 40th Street

LocationsLocations

Scan this barcode to see all the attached bits.Scan this barcode to see all the attached bits.

ImagesImages

NicoleWNicoleW25 days ago25 days ago

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NicoleWNicoleW25 days ago25 days ago

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RexRex22 days ago22 days ago

flagflagRita WheatRita Wheat

21 days ago21 days ago

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CommentsComments

NicoleWNicoleW25 days ago25 days ago

flagflag

We all gathered today for post-lunch Milanos!We all gathered today for post-lunch Milanos!

Rita WheatRita Wheat22 days ago22 days ago

flagflag

Lunchtime!Lunchtime!

LoboLobo22 days ago22 days ago

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My personal philosophy: Eat a Milano a day and joy will follow.My personal philosophy: Eat a Milano a day and joy will follow.

Rita WheatRita Wheat21 days ago21 days ago

flagflag

Has anyone tried the orange ones? Love orange and chic combo.Has anyone tried the orange ones? Love orange and chic combo.

Pepperidge Farms Milano Cookies

Barcode

HomeHome

Get the appGet the app

Download barcodesDownload barcodes

Get stickersGet stickers

Get productsGet products

Bit streamBit stream

Our BlogOur Blog

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PressPress

Point of PurchaseExperienceReflection

PAGE

The Digital Toolkit: Augmented Reality

Pre-Purchase

Pre-Purchase

Pre-Purchase

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Bringing it to Life:CoverGirl

Consumers search for information to help plan their shopping trip

Consumers survey the store, search for products and select brands for purchase

Consumers experience the product after bringing it home

Consumers assess the experience and share with others

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Takeaways

1. Know who your shopper is.

2. Think about the total path to purchase.

3. Integrate channels and retailers into the mix.

4. Innovate wisely.

5. Measure and evaluate.

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Thank You