Shopper Culture

Clean Store Policy: A Point of View

We have just released a new white paper that takes on the topic of Clean Store policies and their impact on retail marketers. The recent announcement by Information Resources, Inc. of a 10-percent reduction of in-store displays sent a shock wave through the retail merchandising industry; many see this news as evidence that P-O-P is headed for extinction.

We on the other hand see this as good news for smart marketers in an environment where more relevant, customized displays are in demand.

Download the White Paper here.

Stay tuned for a new white paper on the changing digital retail landscape being released next month.

Barcodes and Cell Phones

Because most cell phones now have cameras, the ability to access information quickly by reading barcodes is becoming more common. Viewing an image of a barcode can take a person to a website for more information about products, to enter sweepstakes, to get online coupons, and many more functions based on the type of phone and available software.

There are many types of barcodes that can be used by cell phones with some examples below.

Many of these 2D codes were originally used for tracking parts, packages, envelopes, and more. However the problem with this technology is that many camera phones cannot get an accurate view of 2D barcodes to read them properly. Many bar codes are too dense, and the camera cannot focus at close proximity.

ScanLife and sem@code and are two companies developing 2D barcodes and software especially for mobile devices to read. sem@code has only Facebook integration for now, but ScanLife can be used anywhere, anytime. ScanLife barcodes are low density, and can be easily read by mobile devices. They have software for most of the popular phones available today. As you can see in this graphic, the ScanLife code is a low density, easy to read 2D barcode.

ScanLife EZ Codes can be created by individuals or companies. Once the code has been generated, it can be downloaded and be used on web pages, magazines, packaging, point-of-sale displays, bulk mailings, and many other types of media including billboards. Scanning this barcode with a phone does require processing by the ScanLife server, which may take a few seconds depending on connection speed.  It also requires a small software application to be installed on the phone. A list of compatible phones and more information is available here.

As cell phone cameras get better and connection speeds faster, 2D barcodes will become common to give shoppers the information they want, and will work as an incentive to make purchases in an increasingly mobile environment.

- Contributed by JR Hayden

Do You See What I See?

ShopLab, Philips’ Research and Development Unit, has recently patented a Window Shopper Gaze Tracking System.  It is a system that tracks the eye patterns of window shoppers, allowing stores to see what the shoppers see, and follow their gaze.  Do they focus more on a specific area of the window? Do they spend more time looking at certain products in the window?  Are they contemplating purchasing an item?

The system, which utilizes several video cameras and eye tracking software, allows for stores to track the interests of shoppers before they even enter the store.  It can then identify which item the shopper is staring at the longest and possibly post additional information regarding the item on a screen (could be interactive) above or around the display. I imagine myself staring into an Anthropologie window display, contemplating going in to try on the fabulous dress that is on the mannequin.  “I could always wear it to that wedding I have coming up . . . oh, but I better not, I don’t need to spend the money…” When suddenly, an interactive screen right next to the dress I am daydreaming about, starts showcasing how versatile the dress is, and how it can be worn casually during the day and then dressed up at night. Who knows, this just might give me the incentive I need to enter the store and try the dress on.

So, what’s the point?  Does this apply to categories outside of fashion? What if this same technology were to be used on a beer display in store? Wouldn’t it be exciting to be able to see what grabbed a consumer’s attention and what retained their attention?  Retailers and advertisers could tailor their displays to fit the “gaze” of the consumer.  Various displays and digital mediums could be tested to see what actually grabs and shopper’s attention versus what they scan right by.  This would allow marketers and retailers to partner together to create more effective displays and display locations.  In addition to this, what if, after tracking a consumer’s line of sight, an interactive kiosk next to the display prompted the consumer?  The kiosk could contain coupons, recipes, party planning tips, etc., which may encourage a consumer to make a purchase.  Or, it could ask for consumer data and send information directly to their cell phones. The possibilities are endless as this technology gets off the ground.  How can we use this technology to our advantage?

Image credit to http://www.research.philips.com/

- Contributed by Tera Gill

The Changing Landscape of Health and Wellness

Consumers are redefining status by health and wellness measurements instead of monetary wealth. Spiritual, emotional, and physical wealth are the new standards. In addition, this is not a mindset of a select few who shop at specialty health food stores. Consumer interest in health and wellness has gone mainstream.

Pizza Hut—the world's largest pizza restaurant chain—recently introduced "The Natural,” a new pizza for health-conscious consumers that features a multi-grain crust, organic tomato sauce, and preservative-free toppings. Pizza Hut's CMO said the new pie was in response to an emerging consumer need—the desire to eat pizza and still remain healthy. 

Mainstream marketers like Pizza Hut are recognizing societal cues and providing new options that fulfill the consumer need of making healthier choices—even if those choices are only marginally healthier.

The trend continues outside the restaurant category. In 2007, the Natural Marketing Institute reported that spending on vitamins and other supplements reached $21.7 million (+7%); natural foods and beverages, $19 billion (+4%); natural and organic personal care products, $7.8 billion, (+29%). (Source: MediaPost Marketing Daily, 7/8/08)

These examples, combined with data that shows the increasing importance of health—91% of Americans would prefer to be viewed as someone who is healthy rather than wealthy; 80% of Americans say that being emotionally healthy is a major symbol of success—indicate a major shift in the priorities of our culture. (Source: Business Wire, 1/28/08)

As health and wellness continue to become more accessible and important to the masses, it’s very possible that tangible luxury goods’ relevance will decline. Companies that understand the changing consumer landscape and offer health and wellness goods or services will appeal to these new sensibilities and become increasingly relevant with consumers.

- Contributed by Robyn Gelfand

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