Kellogg Co. sees 40,000 QR codes scans via mobile campaign

After successfully testing several mobile strategies (QR codes, SMS and mobile apps), Kellogg takes its latest dive into customer-relationship management by launching a new initiative and web portal.

(Mobile Marketer, June 2011)

Highlights

• The CRM initiative allows Kellogg to build highly personalized relationships with their consumers
• A new web portal will let consumers choose how they'd like to receive communications from Kellogg's brands (mobile, email, etc)
• Previous mobile testing includes a Crunchy Nut promotion that drove 40,000 QR scans and 6,000 text

REI Taking Social Media Local

REI is taking a big plunge in social media by tailoring all of its efforts to local markets.

Highlights:

• 1 Twitter account is breaking into 53 individualized handles, each covering a specific market with unique needs
• Local staffers at each location will now contribute to social media, instead of the previously centralized team
• Their stores are migrating toward more regional customization, such as a cyclist-heavy store in NY
• Similar approaches to social media will become increasingly important to brick-and-mortar stores

Target's Trendy Reputation May Be Fading

Target’s recent focus on food and low prices may be diminishing its trendy reputation.

Bloomberg News

Highlights:

• Addition of fresh and expanded refrigerated foods may be attracting more medium- and low-income shoppers
• Seeing sales declines in the highly profitable clothing and home goods department,which make up more than 40% of annual sales and distinguish it from Walmart
• Macy’s has gained post-recession market share in apparel and Bed, Bath & Beyond has gained in home goods, while Target lags behind

 (The Wall Street Journal, June 2011)

Walmart Announces Express Stores

Walmart's Shareholder meeting addresses worst sales slump in history with a list of new priorities.

Chuck Bartels / AP

Announcement highlights:

• Opening Walmart Express stores (15,000 sq ft) in urban markets and small rural towns
• Will contain 10% of current products
• Will compete directly with dollar stores
• May include pharmacy and gas, which competes with drug and c-stores
• First one just opened and 2 are being tested outside Chicago this summer
• Reducing fashion apparel and increasing "staple" items like underwear/socks
• Growth through building a global Internet business
• Expanding the company sustainability effort

Generation Y and Vending Machines

Vending machines have been continuously evolving to remain relevant and appeal to shoppers, and the newest change is upon us: cashless vending machines. PepsiCo is also a leader in vending machine innovation with the announcement of their new “social” vending machines.

Highlights:

·      60% of vending operators plan to implement cashless vending within the next several months.

·      80% of shoppers still prefer vending machines to convenience, grocery and drug stores. The majority of these respondents were Generation Y (consumers ages 18–27).

·      Gen Y favors debit and credit transactions, and they would rather bypass long lines and human interaction for the convenience of purchasing something from a machine.

·      PepsiCo’s “social” vending machines allow shoppers to purchase a drink for their friends during the vending transaction by entering the friend’s name, message and mobile number.

Key Takeaways:

·      Social media can be leveraged in nontraditional ways.

·      These new technology trends, combined with Gen Y’s shopping preferences, can impact C-Store business.

·      Captivating Gen Y through positive, engaging and instantly gratifying shopping experiences will be critical to keeping them in C-Stores.

(Candyindustry.com, May 2011 and Mashable.com, April 2011)

Grocers Use Social Media to Engage Customers

Grocers & CPG are putting more dollars into inexpensive social media platforms that allow direct touch points with customers.

Highlights:

• Most of the Top 75 grocers have at least two social media sites
• Kraft recently ran a Twitter promotion that awarded clever Tweeters the chance to have their comment featured in a TV ad (elicited 1.5 million Tweets)
• Similar to the Shopkick app, Bling Nation is developing a tap-and-connect solution for shoppers – they apply a code-embedded sticker on their smartphones, tap their phone to an NFC-kiosk, and it launches an app that offers real-time rewards in-store

  

Thought Starters:

• Can your client partner with grocery retailers to help them capitalize on the cost-effective, highly engaging resource of social media platforms?
• How can brands be at the frontlines as NFC becomes standardized in stores? How could they utilize tap-and-connect solutions at shelf?

(Grocery Headquarters, May 2011, Image via intomobile.com)

Google and the Zero Moment of Truth

Worldwide, a transformation of consumers is underway. Five billion people have a mobile phone, which is 1B more than have access to a clean toilet. More than half of Americans will own a smartphone by the end of 2011, and 300,000 Android-powered devices are activated in the world every day.

Meanwhile, the incidence of mobile searches grew 400% in the past year - as fast as apps! New data is showing that mobile searches peak on the weekend, during lunch, and after dinner, which clients should take into consideration if their products have a high index of sales during those periods.


Highlights:

• The First Moment of Truth has been replaced with the Zero Moment of Truth (ZMOT) - when shoppers use mobile phones or computers before entering a store
• 30% of purchase decisions are made before going to store—up 15% from early 2010
• By end of 2011 over half of Americans will have a smart phone
• Mobile searches peak on the weekend, at lunch, and after dinner
• 88% of local information seekers on mobile devices take action within a day

(Shopper Marketing Summit 2011, image via androidauthority.com)