Sales Promotions Tools with Examples in Advertising Ppt

Document Sample
Sales Promotions Tools with Examples in Advertising Ppt Powered By Docstoc
					Communicating Promotions to Customers


              Presented by


            Donna Rando


      FMI Advertising /Marketing
      Executive Conference 2005
Communicating Promotions to Customers



Other possible titles:

   Getting the most from your vendor partners

   Personalized marketing: “Its all about me!”

   Managing change within your organization

   Applications in action



                                                 2
Communicating Promotions to Customers



What I hope to accomplish:

  A discussion of practical and effective promotions that
  drive customers to your store

  Criteria:
     –Easy to implement
     –Unique/different
     –Proven/effective
     –Builds upon existing methods/tools

                                                            3
What Retailers are Doing Today


Circulars*

     -Print circulars deliver less than
     33% of the market                             5 year Internet Growth*
     -20% say they never read them                80%
                                                  75%
Direct mail                                       70%
    -Co-branding alive and well, limited
                                                  65%
     offers per program                                                                 N e ws pa pe r
                                                  60%
                                                                                        Int e rne t
Some web/email                                    55%

     -Challenge to get customers to go to         50%
     website                                      45%
     -How increase email database?                40%
                                                        F a m ilie s w/ k ids 12 - 17
Radio/Television
     -Great when budget permits.
     -What is impact of TiVo, satellite radio??



                                                                                                      4


                           *Source: Grocery Headquarters 2003
 Components of Electronic Marketing




 Promotion        Targeting                Customer             Promotion               Business
  Planning        & Analytics                                  Management               Processes
                                         Communication
                                                                 Systems

• Data Mart     Household Insights                                                      • Pricing
• Customer      • Purchase History       • Mobile devices
  Tracking                                                   • Distributor Interfaces   • Demand
                • Preferences            • Internet/email                                 Planning
• Strategies                                                 • Offer Administration
                • Demographics           • Direct Mail                                  • Promotion
  and Tactics                                                • Purchase
                • Product Affinities     • Circulars           Validation/Rewards         Analysis
• Budgeting
                • Offer Variables:       • POS Check Out     • Financial Settlement     • Trade Funds
• Graphics                                                                                Management
                 (conditions, price)
  Production                                                                            • SOX Compliance




                                       Campaign Management
                                                                                                    5
Program/Product Examples



 Personalized circular: Grocery Shopping Network

 Product samples: StartSampling

 Paperless Internet offers: SmartSource

 Receipt Rewards: POSNET Services

 Personal Shopping Device: Symbol Technologies

 Cellular Phone/PDA: MobileLime



                                                   6
Personalized Circular


  Objective: Highlight items in circular relevant to important
  customers to draw them into your store

  Execution
    •Match circular database against customer shopping list
    •Send email to customers “highlighting” those items
  What do you need:
   •website
    •t-logs (Data Analysis)
    •email addresses



                                                                 7
Personalized Circular

                               Delivered by Grocery Shopping
                                          Network


                             The Ad is “Customer
                                  Centric”

               •    Digitally delivered weekly ad items
               •    Digitally delivered unadvertised specials
               •   Shopping list activity greatly enhanced by
                   adding specific item variety
               •   Recipe solutions tied to ad items

                                                                8

           Supplied by Grocery Shopping Network
    What is GSN personalized Grocery Media?



                         •    E-mail and digitally delivered advertising that…
                                  •Tracks and scores each customers purchases
                                  • E- media that gives each customer their own ad
                                  items based on what they actually buy

                         •    Personalized electronic manufacturer coupons

                         •    Personalized recipes with attached coupons

                         •    Personalized “click to buy” shopping lists



                                                                                 9
Supplied by Grocery Shopping Network
    Personalized Circular


•It takes the work out of food
shopping
•No more coupon clipping
•Advertising that is completely
customized from your store to
them!




                                       10

Supplied by Grocery Shopping Network
Migrating to the Personalized Circular



               •   Phase I – Retail adoption of the fully
                   integrated digital clickable ad

               •   Phase II – Migration to personalized
                   customer centric marketing

               •   Phase III – Channel-wide adoption of
                   one to one approach
                     • email
                     • direct mail
                     • kiosk
                     • register receipt
                                                            11
Personal Circular: Results



            •   Increase in annual gross sales 4.6%

            •   Average customer sales lift of $9.50
                per month

            •   Improved customer loyalty

            •   Greatly increased net profit




                                                       12



                      Source: Available under NDA
Start Sampling


  Objective: Send CPG sponsored samples to YOUR customers,
  highlighting new items, getting them to YOUR store to buy the
  products

  Execution
    •Collaborate with StartSampling
    •Insert “sampling center” on Retailer website
  What do you need:
   •website
    •email addresses



                                                                  13
Retailer Sampling Center: sponsored by
StartSampling

                              Retailers can join the
                              StartSampling network as
                              a destination site for
                              retail customers to
                              receive product samples
                              in their home, along with
                              an electronic offer for
                              that product, redeemable
                              only at YOUR store

                              This program is funded
                              100% by StartSampling
                              and its CPG customers.

                                                       14
Paperless Internet Offers

  Objective: Capture third party sponsored offers to Retailer
  specific frequent shopper card..add more value to card

  Execution:
    •Collaboration with third party marketing and some IT
    involvement

  What you need:
   •website
    •email addresses
    •ability to capture electronic offers to card
    •settlement

                                                                15
Pathmark/SmartSource Electronic Offer Program




                                                16
Pathmark/SmartSource Electronic Offer Program


                                  Combined
                                  Retailer\Vendor
                                  Database Utilized
                                  for email
                                  distribution

                                  Consumers get an
                                  email of electronic
                                  offers

                                  Frequent shopper
                                  card required
                                    Opportunity for
                                    incremental card sign
                                    up



                                                            17
Pathmark/SmartSource Electronic Offer Program




                                       Customers can
                                       print out a list of
                                       selected offers

                                       Consumers get
                                       discounts
                                       instantly @POS
                                       w/ frequent
                                       shopper card and
                                       product purchase

                                       POSNET manages
                                       settlement


                                                       18
Paperless Internet Offers: Results


   Capture National Brand Dollars for Pathmark advantage
   card program. Converts “Good anywhere coupons” to
   “Good only at YOUR store” electronic offers

   Eliminates paper coupon process

   Customer acquisition through an email invitation to
   participate in the program

   Opportunity to gain email addresses in collaborative
   partnership with vendor

   Redemptions consistent with traditional paper-based
   program



                                                           19
Receipt Offers


  Objective: Utilizes existing media vehicle to speak to customers
  individually about products and events relevant to them

  Execution:
    •Create continuity from circular offers
    •Work with vendor partners to augment existing promotions
    •Branding
  What do you need:
   •Receipt print capability
    •T-logs (for targeted offers)



                                                                     20
Receipt Offers

Harnessing the power of the receipt tape to deliver targeted
   “offers” dynamically at checkout.
   Compliments and enhances existing promotions receipt messaging
   programs

   Unlimited amount of offers/can be different for each customer.

   Receipt offers are redeemed electronically during next transaction
   (or according to offer conditions)

   Offers can be printed based on ANY condition
     -Frequent shopper card number
     -Purchase in transaction
     -time of day
     -store location
     -etc
                                                                        21
Receipt Offers (Examples)



                            All or any
                            cardholder

                            Targeted Store

                            Targeted by
                            product purchase

                            Summary of
                            Savings




                                             22
Receipt Offer Summary



  Most Retailers can execute today

  Stealth marketing

  Inexpensive

  Ability to determine ROI




                                     23
Symbol Personal Shopper


  Objective: Improve the shopping experience with
  convenience and speed

  Execution
    •A tad bit more complex than the others
  What do you need:
   •Not enough time to discuss before the break




                                                    24
Symbol Personal Shopper




                 Insert video




                                25
 Mobilelime

Objective: Build a retailer’s sales, customer loyalty, and improve
efficiency of marketing spend and enhance the shopping
experience by leveraging their customer’s mobile phone.


    Delivering mobile marketing and commerce at the store
    with
       - Real time marketing
        - Card less loyalty
        - Guest Service
        - Payment convenience
        - CRM and Campaign management system
            - Powerful analytics


                                                                     26
MobileLime




                     QuickTime™ and a
             Sorenson Video 3 decompressor
              are needed to see this picture.




                                                27
Utilizing Multiple Media Types™


                                                                 Sampling         PDAs


 Direct
                   Internet
   Mail


                                              H
                                          S    Q
                                         O         Sy
        Mobile                       P
                                re                    s   te
      Shopping                to                             m
       Devices           -s                                      s          Check out
                       In

                       Integrated Customer
                         Loyalty Systems




                 Information Technology
                                                                                         28
What does it Take to Move the Sales and Profit Needle?



    Ability to reach 20-30% of customer base with…

    10-50 compelling, creative, and unique offers (varied discounts and/or
    purchase requirements), across…

    Multiple customer communication contact points with…

    A single, point-of-sale interface with minimal systems impact…

    In real-time, supported by electronic (paperless) offer validation at POS
    within…

    Accelerated reconciliation, reporting and payment cycles that are
    discrepancy free




                                                                                29
Summary:What do Retailers need?

 Existing resources
    -CPG Collaboration (top to top)…not just for Category
    Managers
    -Third party agencies
    -New companies with something to prove

 Outsource administration-who has time??
    -You may capabilities..but not time..take advantage of partner
     resources

 Communicate, communicate, communicate
    -all areas of business
             -IT
             -Merchandising
             -Accounting
             -Customer service & Operations                          30
Summary:What do Retailers need?

 Change management skills
     -stay strong
     -stay patient
     -start small
     -build results

 Technology

   – Bang for your buck….one time efforts…move on
   – Be flexible…pilot effort vs rollout effort
   – Think strategic….act tactical
   – Enlist support from other departments…spread benefits and
   risk

                                                                 31
Company Contact Information

 Grocery Shopping Network            POSnet Services
   www.groceryshopping.net        www.posnetservices.com
      Curt Lund, President           Donna Rando, VP
         612 746 4232                  732 928 4327
  Clund@groceryshopping.net   Donna.rando@posnetservices.com


       SmartSource                Symbol Technologies
   www.smartsource.com              www.symbol.com
     Heather Harde. SVP             Mike Hulthen, VP
       212 782 8153                   330 664 8930
  Hharde@newsamerica.com          Mhulthen@symbol.com


     StartSampling Inc                 MobileLime
   www.startsampling.com           www.mobilelime.com
       Mike Weiss, EVP                Peter Wolf, VP
        630 868 2026                  215 801 7903
 Michaelw@startsampling.com       Pwolf@mobilelime.com
                                                               32

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:460
posted:7/27/2011
language:English
pages:32
Description: Sales Promotions Tools with Examples in Advertising Ppt. document sample