Shopper Culture

Eco-Friendly Hangers Sport Beer Ads

A recent article notes a new medium and a new target for some rather unconventional beer advertising - MillerCoors is using clothes hangers to sell beer to women.

Currently testing in Portland and Seattle, MGD 64, the 64-calorie extension of Miller Genuine Draft, is being pitched to female dry cleaners customers via a partnership with EcoHanger. Since July, customers who drop by their local dry cleaners have been taking home EcoHangers (clothes hangers made from 100% recycled materials), carrying the message "64 calories is a light beer - a perfect fit."

"The very nature of the EcoHanger makes it an efficient marketing vehicle because it exclusively reaches our adult female customer in the privacy of thier homes," said Jeff Gardiner, Northwest marketing manager for MillerCoors.

The MGD-64 ads are being distributed through the Hanger Network, which has a roster of 35,000 dry cleaners it uses as an advertising channel. Last year the company shipped more than 10 million hangers carrying messages from clients that include Van Heusen, Hershey, Arrow, L'Oreal, Nivea and Staples.

MillerCoors plans to launch MGD-64 nationally this fall. Heavy starching is in the plans.

User-generated (dis)content

Take a look at the latest issue of the Pulse from our Integer Midwest office here. They talk about the power of negative peer-to-peer recommendations via social networking and the effect it can have on your business. They term it "user-generated (dis)content" and "for every 100 people online, one will create, 10 will interact, but 89 will view it."

And check out past posts from our Des Moines office in the Integer Pulse section under Our Thinking.

Creating a lasting dialogue with Tweens

Would you believe that Tweens -- usually defined as 8 to 12 year olds -- have an overall purchasing power of $260 billion dollars annually? Between their own personal, disposable income of around $11 billion and the $250 billion directly spent on Tweens by their parents on things such as holiday gifts and school clothes, this massive monetary force is a noteworthy fact for retailers and marketers. (AllBusiness.com, January 2005)

According to a recent article, around 87% of 10-14 year-old web crawlers go online three times a day. With money burning holes in their pockets, the Tween group turns to the Internet with 40% collecting information about purchases they want to make utilizing mostly Google (78% compared to the 14% who use Yahoo). From those searches, over a third reported that their online efforts yielded results that had “extreme impact” on their purchases.  (MarketingCharts.com, July 2008)

The success of Tween-centric media such as Hannah Montana, “High School Musical”, and the Jonas Brothers exemplifies that not only have Tweens become a sizable, distinct demographic, but also that many marketers have already taken aim at this influential group. Questioning the proper way to communicate with Tweens reveals an ethical conundrum. The line retailers and marketers walk is extraordinarily thin: we want to create a dialog with Tweens rather than executing the usual competitive sales techniques.

The most important idea for retailers and marketers to note is that tween shoppers are no different than their adult counterparts in many ways: both want their messages hassle-free, informative, and respectful, though Tween consumers are more drawn to music and humor rather than rebellion, angst, sex, and cynicism. And they value their privacy: Tweens want e-mails kept to a considerate minimum and do not want to be bombarded by marketing gathering questions. It's clear that the conversations we start with Tweens today will mean the difference between establishing a lasting dialog with or alienating this influential group for years to come. 

- Contributed by Alli Sands

The Clipping Point

Promomagaine.com just came out with an interesting article about coupon cutters. It discusses a study that was recently conducted that found people still prefer getting coupons from the Sunday paper rather than printing them from the Internet. However, significant growth has occurred in terms of using the Internet to find coupons. Now, 11 percent of households get coupons from the Internet, up by 83 percent since 2005. However, the Sunday paper is still the more popular source; 53 percent of people get coupons from it, up by 8 percent. Culturally speaking, as we enter a recession and the wealth disparity grows, an increase overall in coupon clipping makes sense.

However, while the Sunday newspaper remains the most popular source (perhaps due to habit and tradition), there has been a growth in marrying coupons with technology available through services such as Shortcuts and Cellfire. These services enable consumers to find and choose relevant deals offered by a specific retailer. Once chosen, they are sent to the consumer’s loyalty card and appear at check out. Shortcuts is web-based, while Cellfire informs consumers about deals via cell phones. These services add convenience and save paper, all while tailoring coupons to consumers.

The article also notes that coupon cutters spend more money on groceries, 114 dollars per week, while the general population spends about 110 dollars per week. Coupon cutters also buy a wider variety of products. From a cultural standpoint, this is interesting. Coupons are a price promotion, so why is it that coupon cutters spend more on average on groceries? It makes sense that they buy a wider variety because they buy what is on sale. This statistic begs the question, what is the benefit of coupon cutting? Is it about getting more for their money to care for a larger household efficiently?  Is it about getting a deal, meaning could they be trying products they might not normally buy just because they have a coupon? Maybe it is a hobby, maybe it is a craft skill and only those that are the best at it are actually saving money. It begs the question…what is the true power of a 50 cent off piece of low stock paper?

 Overall, there is a significant rise in Internet couponing. The trend will only continue to grow as people become more accustomed to technology in everyday life. People will begin to change their habits as the benefits of services of Shortcuts and Cellfire make more and more sense. So, many people now get their news from the web. Will coupons follow suit? How much longer will print newspapers be in circulation, anyways?

Submitted by: Claire Foss

What's for dinner? Smell this screen.

There’s more than meets the eye to this digital signage system being tested in a mall in Japan.  Think Smell-O-Vision, only for advertising.

The "Scent-emitting LCD Display System" emits scents that correspond to the material shown on the 42-inch LCD display.  Although the system has the capability to emit a variety of scents, it’s currently being used to share “appetizing” aromas meant to draw mall shoppers to the unit.  The hope is that they’ll then grab one of the coupon books at the kiosk and head into the restaurant being advertised--or should we say “Smell-O-Vised”?  How about “Smellvertised”?

It seems that NTT Communications, the makers of this system could be on to something here.  According to Martin Lindstrom, ex-CEO to numerous marketing agencies, author, and all-around branding expert, “marketers can no longer rely only on a consumer's senses of sight and sound to make their products stand out.” Lindstrom asserts that in order to create “buzz and long-term customer loyalty, marketers will also need to promote their products through touch, taste and especially smell.”  He goes on to say that scent is the sense most directly tied to human emotion.

There are endless possibilities and implications to the use of this gadget.  Here are a few:

1.    Unmanned demos:  No longer having to pay a person to give in-store demos means a more cost efficient option for manufacturers.  Could the perfume ladies at Nordstrom be out of a job?
2.    Reduced product breakage/spillage:  Now, shoppers won’t need to open the top of that laundry detergent to see whether they like that new scent.  Which means less cleanups on aisle three.
3.    Experiential Marketing:  Adding that extra sensory experience gives a manufacturer that much more opportunity to create a brand experience.  In the retail world of stop/hold/close, adding the sense of smell will help encourage the shopper to do all three.

The big watch-out here is that the scent emitted, especially in the case of food, must truly be appetizing and true to the product it’s advertising.  If it isn’t, the advertiser risks losing the sale—or even worse, the shopper buys the product and is disappointed.

We’ll keep an eye on this technology as it develops.  For one, we hope to see it get smaller—as of now it’s not really applicable to many uses outside of a large shopping mall due to its size.

- Contributed by Amanda Moorhouse

New Digital Signage Brings Dynamic Content To Shelf

In an ever-changing retail marketplace, both the brand and the retailer are striving to enhance the shopper’s experience. Technology is playing a growing role in this, not only due to its dynamic nature but also its inherent efficiency. One such technology is ZBD’s epop solution, an electronic point of purchase technology that could redefine retail signage.

A zero-power LCD display, this small shelf-level option brings messaging via high resolution and excellent readability in any light and conditions. The technology provides shoppers with information on product and pricing and can be updated wirelessly across the enterprise, region or store level. The displays are updated via ZBD's Bounce communicator, which fully integrates simply with major retail technology platforms. What’s most amazing is that the technology requires power only during updates which helps drive low cost of ownership and has a minimum life expectancy of five years.

With growing competition within retail, multi-channel shopping trends and turbulence in the economy, the technology could spur some changes in the retailscape. For example, if this technology enables retailers to eliminate labor involved in placing and checking paper labels, will its benefits translate to the shopper by way of cost savings? Will it be capable of enhancing shopper experience and loyalty because the available information is more accurate and easily noticed? What will be interesting is if the technology is leveraged for communicating with shopper on a brand level and how it will impact marketing at retail over the next few years.

- Contributed by Priyanka Sah

Happynomics

Check out Integer Des Moines' latest post on "Happynomics" in the Integer Pulse section under Our Thinking. Happynomics explores an insight that consumers who have a greater sense of belonging are happy, confident, and thus more willing to open their wallet, which in a recession-scared economy is no easy task. Find out which brands are creating a "culture of happiness" when you walk through their doors, creating feel-good, inclusive experiences that create a sense of belonging and increase spending potential.

Sprechen sie Future?

The Germans are onto something here, and it's called Future Store. This new-age supermarket employs a collection of new technologies to help make the shopping experience efficient and entertaining: shop via cell phone, stop by the intelligent freezer, play an interactive game, or simply take product advice from a roaming robot. And rather than cash, check, or charge, feel free to checkout via fingerprint or RFID.

As we look to the future (and the Future Store), it’s essential that we continue to examine the role of marketing in this brave new world. Sure the shopping experience is getting easier, but how do we ensure that our products remain the top consideration? What other technologies can we bring to the Future Store to further enhance the shopping experience? But most importantly, where can we get robots of our own?

- Contributed by Craig Pelz

White Paper: Women and consumer electronics: A love story

Our team in Dallas have just produced a new white paper based on the Consumer Electronics Study undertaken in 2007.  The paper looks at the needs and wants of the female shopper in the Consumer Electronics category and offers some thoughts on how to effectively engage them.  Click here to download the paper.

Advertising - recycled

Given all the conversation surrounding paper versus plastic at the store, we thought this was a great approach to creating reusable shopping bags.  The Commercial Drive Business Society in Vancouver is recycling the street banners it creates for use in the shopping neighbourhood into shopping bags once their campaigns are over.  The bags are sold with the proceeds going to developing new green spaces within the neighbourhood.  Saves the banners going to the landfill making them more sustainable and creates a limited edition, unique bag - giving shoppers a touch of exlusivity.  A great use of old messaging.

Healthy Foods International Conference and Expo Recap

We recently attended the Healthy Foods International (first ever) conference and expo in Dallas. While we are waiting for conference materials to get posted to their website to deep dive on a few topics, we wanted to provide a top line summary of a few interesting things that were discussed between the manufacturers, retailers, distributors and marketers in attendance.

From the consumer side of things, a few interesting topics that arose were around mindsets and understanding. Going into this year's economic slump, consumer wallets are often a consideration. But, as stated at the conference, healthy living and sustainability are a "state of mind not state of wallet." Advocates that are committed to the lifestyle will prioritize spending and rationalize price in the category. What marketers and manufacturers should be concerned about is the average consumer's confusion around organic, natural, lean and enhanced foods. Only around a 5th of the general population really understand healthy and sustainable living, and they're the ones that will cause true growth and profit. Simple education and communication needs to be clearer, including store signage and placement.

To the general population, brands in the healthy/organic/natural category matter less than the industry would like to believe. We tend to think that smaller, local companies are the valued leaders, and big business are merely followers. While this maybe true for the opinion-leading 5th of the population, the general market just notices whether its says organic or not. And when it comes to price, where larger brands oftentimes offer lower prices, they can win.

On the manufacturer end of the spectrum, it was interesting to see the mix of home grown companies to huge corporate entities. Kraft, PepsiCo and Clorox were all there showcasing their latest healthy or green or natural products. On the smaller end of things were companies like Four Sisters and a Brother - Natural Bread Crumbs , a company started literally by four sisters and a brother from their own homes. There were a great many of these companies who were looking for their big break at this show to get distribution in new, larger retailers. Key talking points revolved around all-natural, organic, short ingredient lists (with nothing you couldn't pronounce), and X servings of X. Surprisingly, weight watchers points values were a focus as well.

Another interesting trend readily apparent at this conference is the growth of pharma foods. Whether its milk with Omega-3s or pro biotic cheese, products are definitely aiming to do more for consumers than simply fill them up. This has led companies, like Cargill for example, to develop ingredients that can be added to any food to increase/add nutritional value. Will consumers start buying buy ingredient rather than by food or by brand?

Lastly, from the retailer angle, aside from what products to carry, the biggest debate seemed to be where to put them in the store. While there is a consumer demand for these products, it varies depending on the shopper of each individual retailer. Opinions seemed to be split of whether the store within a store approach is best or simple category integration is the right road. One argument is that shoppers are less likely to buy natural/organic when the price tag is twice that of the regular option. The other is that those who shop organic want to find it all in the same place.

All of these topics seem to beg the question - Is this category ready for the mainstream? Have we gone far enough with our core consumers that we can begin to focus on the general population? As this begins to happen with companies like Pepsico, who have the dollars to make anything mainstream, it will be interesting to see how the category will change and adapt in retail

- Contributed by Armand Parra and Darcey Kramer

Safeway goes Hollywood

The Promo Magazine website recently featured a story about Safeway partnering with Warner Bros. to launch a kid friendly  extension of their Eating Right product line. In a marketplace where many popular kids brands are having to turn away from licensed characters for their "not-so-healthy" products, Safeway is taking advantage and moving aggressively with their private label brands. This isn't their first step in redefining private label (see Safeway to Market Private Label Brand to Other Supermarkets).

According to the article, "More than 1,700 Safeway locations in the U.S. will carry the line, which includes Toasted Os cereal, frozen meals, such as chicken enchiladas, and beverages." By adding popular licensed characters to their Eating Right line, how long will it be before kids have an affinity for healthy private label products over long established kids brands, because they feature Bugs, Taz or Marvin the Martian.

Integer Pulse

Click the Integer Pulse tab under the Our Thinking section for a monthly update from our Midwest office. They explore some really interesting topics surrounding the shopping world. This months issue uncovers a trend/counter-trend they call "Get Real|Unreal World" which dives into the mindset of today's consumers. Getting real about spending habits while at the same time longing to escape to an unreal world.

Recycle this!

Sustainable.  Green.  Recycled.  Environmentally Friendly. It’s the new bandwagon that all marketers are jumping on.   But what can we do that’s real; something that does more than just regurgitate the same message that’s been swirling around and used by brands for the past few years? 

A company like Integer can start with what we actually produce.  We are in a unique position as a retail marketing agency to affect real change on millions of displays and in-store tools by rethinking the way we print and produce our work.  Some ideas to start with:

Printing:
•    Use post-consumer recycled materials for displays
•    Use soy or water-based vegetable inks
•    Minimize ink coverage
•    Avoid additives to the paper like bleach, coatings or minerals

Production:
•    Minimize waste by avoiding extra components, such as fillers
•    Avoid die-cuts to reduce waste disposal on machine

And if you think that this is an impossible feat, take a look at some brands that are already there:

Method Packaging is made from 50% bamboo & 50% recycled paper.

This Eco display is 100% recyclable and uses minimal ink.

So, let’s not only think about what we’re saying but also about what we’re doing to be “green.” 

- Contributed by Katherine Sullivan and Elizabeth Callies

easySHOP: Scan and bag groceries as you shop

In the eyes of Giant Super Food Stores, easy shopping means eliminating check-out lines. Their new "easySHOP" technology lets people scan and bag items as they shop throughout the store, then pay at a self-service check-out kiosk and leave. In other words, groceries go into your cart from the shelves and don’t leave until you get to your car.

easySHOP requires Giant’s BONUSCARD loyalty card. The system aims to empower customers by putting more control in their hands.  Further, the perception is that scanning one’s own groceries is faster than having them scanned in a check-out line. Finally, the scanner lets people keep a rolling tally of their bill, helping them stay within their budget.

Are there ulterior purposes of this system? Is this a way for Giant to better monitor customer behavior in store?  If the scanners contain RFID or GPS, Giant could track exactly how consumers shop the store: the route they take, the time they spend in each aisle or even at each shelf, the items they put in their cart (and those they put back).  Another potential benefit to the store is a reduced need for cashiers.

Shoppers might actually spend equal or more time in store doing all this scanning. But the time might not seem as long since they’re so busy scanning and bagging.

Find out more at:  http://www.giantsuperfoodstore.com/easyshop.cfm



Images from giantsuperfoodstore.com

Safeway to Market Private Label Brand to Other Supermarkets

With the rise in demand for organically produced products, Safeway's private label O Organics brand is expected to do $400 million this year, with sales in the first quarter alone up 50% over last year. In an announcement this week, Safeway's Chairman, Steve Burd, outlined a plan for the company to begin marketing its O Organics brand to supermarkets "other than Safeway" Supermarket News

No small player, the O Organics brand is represented by more than 300 SKU's. From eggs to orange juice, cookies to pretzels and olive oil to frozen dinner entrees, the O Organics brand ranges across multiple product categories. The decision to market these items outside of Safeway to other grocery chains represents a very large endeavor and a break from the traditional role of the retailer.

So goes the recent trend of retailers moving upstream the supply chain to begin taking on the role of manufacturer, or even grower for that matter. Why and what are the implications?

Certainly retailers, like Safeway, create private label brands to increase revenue. More importantly however, these retail exclusive brands build equity that supports the retailer's unique positioning.

In the case of Safeway, the O Organics brand connects directly with Safeway's core positioning - "Ingredients for Life". It provides shoppers with a clear and tangible reason to believe and clearly differentiates the Safeway brand from other retailers. While the packaging does not carry the Safeway name, the O Organics brand is exclusively sold only in Safeway stores (for now). This exclusivity is what reinforces the Safeway brand positioning to its shopper.

So here's where things become a bit paradoxical. On the one hand, Safeway's move up the supply chain offers them a new revenue stream. It offers them a chance to convert competitors ( Kroger) to customers.

On the contrary, when shoppers find that they can buy the O Organics brand at grocery chains other than Safeway will they react? If indeed Safeway is defining itself by the exclusive brands that it carries, will the fact that these brand are no longer exclusive to Safeway erode their equity and lessen the impact of "Ingredients for Life"? Wouldn't Safeway be better served by trying to maintain "Shoppers for Life"?

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Wine pairings. Beer pairings. Soft drink pairings?

Have a look at this picture captured at a Burger King soft drink dispenser.

In an age of wine pairings, beer pairings, and even coffee pairings, do we really think this soft-drink pairing chart will persuade many customers which soft drink to pair with their 1200-calorie sandwich? Do we think the King really spent hours trying to figure out which soda fully complemented your paper-lined, vinyl tray dining experience?

Probably not, but this sticker got a reaction from me, and in a world where the consumer has been conditioned to ignore thousands of marketing messages a day, that’s a good thing.

What's more, this pairing chart brought the irrelevant tone and spirit of the advertising into the store in a natural way. A more obvious approach, to instead say Coke® is Refreshing with a Whopper®, would appear corporate and patronizing. We hand it to Burger King for small details that make a difference.

- Contributed by Tony Fuller

 

Starbucks caffeinates sales with a shot of CRM

After two quarters of declining  sales and  executive-level scrutiny on brand health following reports that the company is straying too far from their brand roots, Starbucks is introducing five new initiatives to realign the company with their true identity. Interestingly, the most attention is being placed on CRM (customer relationship management) approaches to reward their most loyal customers and better understand their needs and desires. One of these initiatives is a standard customer loyalty-rewards program at retail, and another is a new style of website for customers and employees to share thoughts with the people who run the company.

It appears Starbucks is practicing these concentrated CRM tactics to reclaim their position of being the customer's "Third Place" with home and work being number one and two. Third places are social environments generally revolving around beverages. Starbucks is fulfilling on this mission as having become a nationally accepted "Third Place" where consumers spend lots of money, time and collaboration. With their now declining sales, Starbucks recognizes that they must take consumer interaction and entertainment  to  a more subtle but effective level without being too obvious. Who wants a "Third Place" that feels uncomfortable, forced or inauthentic? But that doesn't mean you have to be home-grown and primitive in your communication or approach.

Consumers will soon be seeing something new in Starbucks retail environment with a loyalty-rewards program starting in mid-April. These "on the house" perks are for anyone who buys a Starbucks card and registers the card online, because Starbucks knows they can convert them to loyal users once they get to know them better. Participants will get free refills on coffee, a free cup of coffee when they buy a bag of whole bean coffee, hours of free Wi-Fi a day and "on the house" upgrades including syrups, soy milk, and extra whipped cream on all lattes. The in-person experience will also integrate online through monitoring and MyStarbucksIdea.com.

MyStarbucksIdea.com will initially include about a dozen categories. People can post, discuss and vote for ideas in categories such as coffee, atmosphere, food, music and social responsibility. Forty-eight Starbucks employees will respond to the posts then channel suggestions back to management. "Their job is to show up every day and engage with customers about their ideas," says CTO Chris Bruzzo.

We see two important aspects of CRM at work.

Better understanding core customers. Starbucks is embracing a highly streamlined approach in communicating to and understanding their customer with this online initiative maximizing on a CRM tool which is a smart way to "get to know" your customer, communicate directly with the customer, increase their purchases and monitor and enhance their overall brand experience (Starbucks is using Salesforce which is a top CRM/Sales tool with over 800 applications like these.)

Creating a customer-feedback protocol. Starbucks is getting great ideas directly from their customers creating a sense of involvement in the experience and overall ownership and participation by the customer. They actually show when the consumer's suggestions are "under review" or "coming soon". Each suggestion is acted on; people can view results by participating in this forum. While the suggestions are a form of user-generated content that others enjoy to read, vote on and celebrate successes when Starbucks adopts the new ideas, these comments are also indicative of Starbuck's general business model. The comments imply that Starbucks moves fast and get things done.

Other companies like Dell have joined Starbucks in implementing these innovative tools. Visit www.dellideastorm.com to see the Dell CRPM application taking hold.

We suggest more brands step outside of the comfort zone and taste-test CRM and digital technologies to understand how simple and straightforward they can be. Cost-effective technology is at your fingertips where consumers literally "tell you" what they want, and the tools allow easy customization of direct communication to niche audiences. These techniques could make a venti difference in your sales.

- Contributed by Tracy Kollker

What's in your handbag?

Cause and effect

A few of us sat through a presentation today that started with a bit of a love story. It involves Louis, a giant Pacific octopus who lives at the Newquay Blue Reef Aquarium in Cornwall, UK.  We were told that Louis had been pretty miserable, until at Christmas he was given a Mr. Potato Head to play with in his tank. He loves it.

Louis was used in this presentation in the context of shopping in order to demonstrate how a small change in our environment can lead to a dramatic change in behaviour. However, when you look into the story some more, it turns out Mr. Potato Head is not only an interesting, colorful, tactile toy to enrich his existence in a tank, but it is also a way to deliver tasty treats to Louis. There was further license taken in the story told as it's not exactly clear that he was that miserable before hand! Among the brightest of the cephalopods, Louis needs mental stimulation and Mr. Potato Head delivers.  So what has caused his excitement and interest is under question. Was it the addition of the interesting toy, or the addition of the treats? 

Either way, it was an interesting metaphor (in the context of the presentation, perhaps less so here) for us to consider in shopping environments, where we need to introduce new stimuli in order to engage people and change behaviours. This little story also highlights the difficulty of isolating effects when more than one variable is changed at the same time.  We also need to be mindful that in changing one thing, we may have another as yet unknown or undesirable affect somewhere else in close proximity - after all, we don't know how his other tank mates feel that he gets all the great toys!

- Image courtesy of bluereefaquarium.co.uk