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Research + Insights Consulting + Strategy Brand Strategy + Positioning Design + Marketing Patrick Rodmell

President + CEO Watt International prodmell@wattintl.com

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 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 20 examples that we feel are worthy of your consideration. Some are interesting for their approach, others for their execution. In any event, I think you’ll find them all to be provocative and perhaps help shape your new media 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,

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

•  In the US, smartphones experienced a 29% increase in sales among phone purchasers over the latter half of 2009(1)

•  74% of consumers globally who use retail touchpoints and the internet to research products will make their purchases in-store(2)

•  In the US, the total number of app users increased by 42% year on year in 2009(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)

•  Social networking users grew by 83% in 2009(5)

The importance of mobile marketing

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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…

Navigating new media

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Asda in the UK has initiated a “price guarantee” program, in response to recent price wars being waged between the major supermarket retailers in the UK.

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 P.O.V.

1. Shopper Empowerment

•  http://www.asdapriceguarantee.co.uk/

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

Building a trust interface

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Watt’s P.O.V.

Social shopping: group-buying websites

Customers of 4Food in NYC 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.

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.

2. Shopper Empowerment

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•  http://4food.com/

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.

Social media and the brand

The Facebook “like” feature on websites is a clever solution to the potential problem of brands invading the personal space of the social networking site.

3.

Watt’s P.O.V.

•  http://bit.ly/9VehQz

Shopper Empowerment

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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.

Social media and shopping

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Just bought.it is like Facebook for shoppers, and illustrates how consumers like to compartmentalize their online social activity.

Watt’s P.O.V.

•  http://justbought.it/

Shopper Empowerment

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The clothing store tobi trialed a virtual dressing room on their website last year.

Using a webcam in the shopper’s home, the shopper uploads an image of herself onto which images of clothing can be superimposed, or “tried on”.

Macys 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.

Interactive browsing

When integrated with social networking sites like Facebook, this tool becomes a retail extension of a social networking experience.

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Watt’s P.O.V.

Shopper Empowerment

•  http://bit.ly/aeQNqs

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A recently developed app called “Stickybits” allows users to imbed 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.

Socially interactive objects

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.

6.

Watt’s P.O.V.

•  http://www.stickybits.com/

Shopper Empowerment

Smart phone apps to navigate retail

The ShopSavvy app for Android and iPhone platforms enables users to do instant price comparisons when they scan any barcode at a retail store.

Optional online prices appear on screen, sorted by geographic proximity.

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Applications such as ShopSavvy exemplify how much more control mobile shoppers now have over their shopping experience.

Watt’s P.O.V.

Shopper Empowerment

•  http://bit.ly/bWiWRd

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Whole Foods Market features an iPhone application that allows shoppers to make shopping lists based on recipes they choose from the Whole Foods recipe list.

They can also filter recipe choices based on key words such as “budget” and “kids”.

Brand apps to enhance retail experience

Whole Foods has created an app that is both fun to use, practical for shoppers and very relevant to its retail channel.

8.

Watt’s P.O.V.

Shopper Empowerment

•  http://bit.ly/9nBA1g

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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.

Browse and buy

Best Buy is taking ownership of the information that shoppers seek on their smart-phones before making a purchase in-store.

Watt’s P.O.V.

•  http://bestbuyideax.com/currents/14

Brand Engagement 9.

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

As of August 2010, there are a number of stores that have transmitters installed for the application, including about 300 malls.

10.

Just walk in to get your kicks

Brand Engagement

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.

Watt’s P.O.V.

•  http://www.shopkick.com/app.html

Pizza Tracker is a system that tracks your Dominos 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.

Brand apps to enhance experience

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

Watt’s P.O.V.

Brand Engagement

•  http://bit.ly/cM6rTP

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Oberto Sausage Company launched a mobile campaign in 2009 that integrated with their Ultimate Alpha Zone website, which jokingly appealed to the “alpha male” beef jerky eater.

Users were invited to “Text-taunt-win”, by choosing from a list of taunts that could be sent to their friends. These activities built up loyalty points, which increased a user’s chance to win prizes. Wallpapers and ringtones can also be downloaded.

Texting for fun

The style of this initiative helped the brand ingratiate itself among a young, text-savvy audience, broadening its marketing scope.

Watt’s P.O.V.

Brand Engagement

•  http://www.eatlikeanalpha.com/

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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 about deals or new products.

This is a great example of successful integration between many new media channels.

Integrating social media touch-points

Watt’s P.O.V.

Brand Engagement

•  http://twitter.com/toysrus

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Watt’s P.O.V.

The Maynard’s “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, up to a $25,000 “reward”.

Online ordering made fun

Brand Engagement

This campaign is fun and inventive, and includes a tangible and generous incentive that easily outdoes the offers of other brands.

•  http://www.facebook.com/maynardscanada

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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 caninteract with the posters. A successful engagement leads to a “capture” that drives them to a Facebook application, wherethe $25,000 reward contest plays out.

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

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Watt’s P.O.V.

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 Quizno’s locations on the image of the area captured by the user’s smartphone.

Augment your reality

Brand Engagement

Augmented reality is being experimented with by many brands, but in this example, Quizno’s is offering a more practical application.

•  http://www.layar.com/

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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.

Interacting with the consumer

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

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Watt’s P.O.V.

Brand Engagement

•  http://mystarbucksidea.force.com/

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Watt’s P.O.V.

Dunkin’ Donuts has devised an online and mobile app ordering system called the “Dunkin’ Run”.

The user, or “runner” invites friends to participate, they send in their order to the runner who then sends the order to the restaurant where it is prepared for pick up.

Online ordering made fun

Brand Engagement

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/

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Using the mobile gaming app Foursquare, users can achieve 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.

Rewards go mobile

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

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Watt’s P.O.V.

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Incentives & Loyalty

•  http://foursquare.com/

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.

Location-based mobile marketing

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

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Watt’s P.O.V.

•  http://bit.ly/9fd9St

Incentives & Loyalty

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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.

2D barcodes in large print

Watt’s P.O.V.

Incentives & Loyalty 20.

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. 24  

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 upon or are just not as exciting as they were 5 months ago!

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Watt’s P.O.V.

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.

These sites encourage trial and build excitement around the brand. The benefits include positive brand self-promotion among shopper groups.

•  http://www.groupon.com/ •  http://www.socialbuy.com/

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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 & Best Buy.

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

Watt’s P.O.V.

•  http://www.loopt.com/

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

Social media and the brand

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.

Watt’s P.O.V.

•  http://www.facebook.com/

Shopper Empowerment

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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.

Browse and buy

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

Watt’s P.O.V.

•  http://bit.ly/bMGePO

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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.

Browse and research

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

Watt’s P.O.V.

•  http://bit.ly/diLDUu

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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.

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

Watt’s P.O.V.

•  http://www.booyah.com/

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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.

Texting to save

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

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Appendix

−  Page 3: Nielsen Wire; “Smartphones to overtake feature phones in US by 2011”, R. Enter; March 26, 2010 (1); TNS, “Global Telecom insights, 2010 Priorities” (2); The Mobile Marketing Association; CMA Mobile Marketing Conference, Apr 8, 2010 (3); Morpace, emarketer, “Facebook’s Impact on Retailers”, Apr 1, 2010 (4); Comscore, B. Segal, “State of the Mobile Nation”, April 2010 (5)

−  Page 5: Sample 1: Asda Press Release, “Asda Price Guarantee: Our new promise every time you shop”, Apr 27, 2010 −  Page 9: Sample 5: Stores Magazine, D.M. Amato-McCoy, “That’s So “You””, Apr 2010 −  Page 10: Sample 6: Los Angeles Times, J. Guynn “Stickybits allows you to embed digital content on objects”, Mar 11, 2010 −  Page 11: Sample 7: The Record/Northjersey.com, “Retailers finding ways to put buying power in shoppers’ hands”, Mar 38,

2010 −  Page 14: Sample 10: South Orange Patch, P. Hoops “Get a Kick out of Shopping with a New App”, Aug 25, 2010 −  Page 23: The New York Times, S. Clifford, “Linking customer loyalty with social networking”, Apr 28, 2010 −  Page 24: Sample 20: Drug Store News, A. Alexander, “Duane Reade Teams up with JagTag”, Apr 28, 2010 −  Page 26: Contra Costa Times, E Mitchell, “Pack mentality can round up deals”, Apr 4, 2010 −  Page 27: The Wall Street Journal, G.A. Fowler, “Software Apps Provide Shoppers With Rewards to Help Lure Them Into

Stores”, Apr 21, 2010 −  Page 28: Stores Magazine, S. Reda, “NRF Retail Innovation & Marketing Conference Highlights Conference Wrap-up, Apr

2010 −  Page 29: Stores Magazine, E. Davis, “Mobile 101: a retailer’s guide”, Jan 25, 2010 −  Page 31: Social Times, N. Vidyarthi, “H&M offers virtual goods within location-based game MyTown”, Mar 2, 2010

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

300 Bayview Avenue Toronto, ON Canada M5A 3R7

Website: www.wattintl.com Twitter: http://www.twitter.com/wattintl Linkedin: http://bit.ly/bAlMyo

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Scan the QR code to join us for more up to the minute discussions on new media and other industry trends on our Watt Bullseye Linkedin page!