Best Practices in Digital Shopper Marketing

INDUSTRY REPORT
PRESENTS:
Clicking Through
the Path to Purchase:
Best Practices in
Digital Shopper
Marketing
TABLE OF CONTENTS 1. INTRODUCTION

1. Introduction.........................................................1 Read quickly. In the time it takes to read this report, some of the best practices in digital
2. The Digital Landscape.........................................3 shopper marketing that it examines may already be obsolete.
• Step 1: Consumer Demand Generation While this special report was in production, Apple Inc. introduced both the iPad and
• Step 2: Shopper Purchase / Retailer Sales
• Step 3: Consumer Loyalty iPhone 4. On July 1, Unilever’s Dove Men + Care became Apple’s pioneering “iAd” advertiser
3. Key Consumer Behavior.......................................5 by launching a multi-dimensional advertorial (to use an outmoded phrase) that combined
4. What To Do: Strategies For Communication.......9 sports content, product information and a raft of attention-grabbing rich media tricks.
• Branding Shortly thereafter, Kraft Foods launched “Big Fork, Little Fork,” an iPad-specific application
• Sales/Discounts
• Coupons designed to help parents find healthy meal solutions for their children.
• Consumer Promotion Such rapid-fire developments have become commonplace in today’s society, where the
• Consumer / Shopper Solutions rate of new technology introductions is matched only by the speed with which consumers
• Loyalty Marketing
• Cause Marketing adopt them. Among the tools currently at the peak of the consumer adoption curve are
• Co-Marketing numerous digital shopping aids.
• E-Commerce
Morgan Stanley analyst Mary Meeker theorizes that society is undergoing the fifth
5. Where To Be: Strategies For Placement............13
• Online Destinations major technology cycle of the last 60 years. The main difference between this cycle and
• Targeted Sites the previous four – the emergence of mainframe computers in the 1960s, mini-computers
• Social Networks
• Brand Sites in the ‘70s, desktop computers in the ‘80s, and the Internet era of the ‘90s – is that this one
• Retailer Sites frees the user from the prior restrictions of time, place or even device. It is the era of the
• In Stores “Mobile Internet.”
6. How To Deliver: Strategies For Connecting.......17 The consumption of media has changed accordingly. There are 221 million Internet users
• a. Online
• b. In-Store in the United States, which represents 71.2% of the population, according to eMarketer.
• c. On the Go / Anywhere There are 292 million television viewers, although 35% of them actually do some of that
7. Keys To Future Success.......................................22 viewing through the Internet, according to comScore. And, 66 million are occasionally
A supplement to Shopper Marketing magazine

DIGITAL SHOPPER MARKETING
logging on while “digital marketing” has existed for much longer than the
watching TV, according term.
to In-Stat. Packaged goods marketers have been
Such media multi- communicating with consumers online for almost 15
tasking will become years, both through advertising vehicles adapted for the
even more the norm medium and the development of content that could
in the future. Nielsen attract visitors to brand websites.
forecasts that 51% of For a number of years, “digital shopper marketing” –
U.S. consumers will which fine-tunes the practice to directly influence store
own Internet-enabled choice and product purchase – has been a core strategy
smartphones by the end for brands in consumer electronics, automobiles and
of 2011. By 2014, more other “big ticket” categories, where the path to purchase
people will be accessing demands a significant amount of information gathering,
the Internet via mobile product comparison and price checking, and where
devices than desktop online purchase options have been available for years.
Dove Men + Care’s iAd computers, according to Food and beverage marketers, however, have been
Morgan Stanley. more content to use the Internet as a brand-building
These technological changes are wreaking havoc in channel rather than a direct sales-driving mechanism. The
the marketing industry, which enjoyed a relatively easy 75 general belief among CPGs was that consumers didn’t
years of controlling consumer communication, dictating need to conduct “research” to decide between Cheerios
the times, places and delivery channels to a nation of and Special K, and that the information shoppers needed
passive consumers via radio and TV.
The Internet reversed that, turning the act of
consuming into a self-driven exercise rather than a
passive process. Today’s consumer actively seeks out the
information for herself, and increasingly is able to find
everything that she needs quickly, easily and, thanks to
mobile phones, whenever and wherever she needs it.
The result is “an increasingly complex path to
purchase,” said Lori Aulfinger, Procter & Gamble’s director
of consumer and market knowledge, at a recent industry
conference. “Consumers are using more and more
touchpoints to decide what to buy and where to buy it.”
“Digital marketing is now affecting – very directly –
the shopping occasion,” says Peter Cloutier, president of
Catapult Marketing, Westport, CT.
Google Inc., whose primary business model entails
connecting advertisers with interested consumers, has
Kraft’s iPad app
dubbed the digital marketplace the “zero moment of
truth.” If, as Procter & Gamble has famously professed,
the first moment of truth occurs when “consumers stand
in front of a store shelf” and decide whether to buy
a product, then the zero moment is “everything that
happens beforehand,” according to Kevin Kells, Google’s
national industry director for consumer packaged goods.
Increasingly, that “everything” is taking place digitally.
Digital Marketing
The term “digital marketing” applies to any
communication delivered through digital technology,
including the Internet, place-based networked signage,
in-store kiosks and personal shopping assistants,
advergaming and mobile phones. But the practice of
Kraft’s “First Taste” site
2
before heading to the store was delivered in Sunday
newspapers.
2. THE DIGITAL LANDSCAPE
Digital marketing encompasses a wide array of delivery
Likewise, pure-play Internet retailers such as Amazon. mechanisms and promotional tactics that can be used
com and Drugstore.com, along with traditional specialty to reach consumers along the path to purchase, from
chains like Best Buy, have employed digital shopper demand generation through the entire shopping process
marketing practices for a number of years to attract these to post-purchase relationship management.
online researchers, help them make their decisions and, Catapult Marketing segments these various
ultimately, close the sale – either online or in a physical mechanisms and tactics into three distinct phases based
store. on the strategic roles they typically play for marketers
Traditional packaged goods retailers took much and the stages along the path to purchase in which
longer to get involved, due to the understandable belief consumers normally utilize them. For the time being, they
that food and household products weren’t enough of a additionally are segmented by the physical “location”
big-ticket purchase to be made online. When Amazon. in which consumers most often interact with them,
com began selling “groceries” in 2006, few supermarket although the rapid penetration of Internet-enabled
operators even had consumer-facing websites. (The idea smartphones will ultimately make that distinction
that weekly circulars should be posted online had not obsolete.
occurred to most.)
It was only in the last few years that traditional CPG
retailers began attempting to build sites that would
Phase 1: Consumer Demand Generation
A number of digital tactics can be used to build brand
attract shoppers, and even more recently that they
awareness and equity while generating consideration and
realized digital marketing could influence trips and
demand for products, stores and services. Among the
purchase decisions.
more common are:
This shift in thinking was driven by many things,
including the continued fragmentation of traditional
• Search Engine Optimization (SEO): The calculated
media, the near-ubiquitous household penetration of the
use of content and technology to enhance a brand’s
Internet and the economic recession of 2008 – the last of
prominence in search results (by appearing higher on lists,
which made the aforementioned “Cheerios vs. Special K”
more often, etc.) on Google, Yahoo, Bing and other search
decision much more critical for many consumers. Today,
engines.
50% of packaged goods shoppers visit a retailer’s website
one or two days before visiting the store, according to
• Search Engine Marketing (SEM): The use of paid
Catapult Marketing’s second annual Digital Shopper
search, display advertising and other tactics to guarantee
Marketing Study (which will be discussed at length later).
prominent top-of-page positioning in search results for
But what sparked the current surge in digital
specific terms.
shopper marketing more than anything else has been
the emergence of the mobile phone as the consumer’s
• Social Networks: Building communities of brand
primary lifeline.
enthusiasts and/or employing paid advertising to reach
During holiday 2009, 10% of all cellphone users
the millions of registered members of Facebook, MySpace,
already were taking pictures of products in stores,
Twitter and other social networks.
according to Morgan Stanley. These mobilized consumers
also used their phones to obtain (and use) coupons, make
• Brand websites:
shopping lists, compare prices, find better deals at other
Developing unique
stores, and send those aforementioned photos to friends
websites for brands
to get a second opinion.
to draw consumer
Such functionality is making the mobile phone an
traffic, either through
indispensible lifestyle tool for consumers – a personal
straightforward
shopping assistant, if you will.
information
For marketers, the device is fostering direct, one-
(pampers.com),
to-one communication with consumers. But it has also
solutions-themed
ushered in a new age in which the role of marketing is not
content (P&G’s
just to persuade consumers to buy products, but also to
homemadesimple.
provide them with digital tools that can facilitate those
com) or promotions
purchases.
(Coca-Cola’s
mycokerewards.com).
Kraft’s iFood Assistant app
3
The Digital Path to Purchase
Consumer Demand Shopper Purchase/Retailer Sales Consumer Loyalty
In-Home On-the-Go In-Store

• SEO/SEM • Electronic CRM
• Online media • Mobile CRM
• Social networks • Social media
• Brand websites • Word of mouth
• Mobile sites • Advocacy
• Digital coupons • GPS • QR codes
• Smartphone apps • Retailer websites • Mobile search • RFID • Product reviews
• Digital promotions • SEO/SEM • Mobile sites • Paperless coupons
• E-commerce • Shopping apps • Mobile scanner
• Shopping apps • Kiosks/Digital signage
Source: Catapult Marketing, July 2010
• Mobile sites: The reduced screen size, bandwidth and • Electronic CRM (Customer Relationship Management):
graphics of smartphones makes viewing most existing Brands have long been using websites and e-mails to
websites impractical, requiring marketers to develop conduct targeted communication programs with key
more compatible mobile sites to attract repeated use. customers and prospects (although the promise of true
one-to-one marketing remains largely unfulfilled).
• Smartphone apps: Unique interactive software
applications providing some type of functional service. • Mobile CRM: A new wrinkle in the strategy is
The “poster child” of brand apps is Kraft Foods’ iFood the ability to communicate even more directly with
Assistant, which delivers a “Recipe of the Day” to its customers via their mobile phones. The ongoing
hundreds of thousands of users. penetration of smartphones will add even more
capabilities.
• Digital promotions: Conducting action-inspiring
consumer promotions, either exclusively or as part of an • Social Media: Facebook surpassed 500 million
integrated effort. Nearly all national campaigns now use worldwide users in July. Twitter boasts 74 million accounts
the Internet as the primary method of entry/redemption, (although turnover rates are high and actual usage low).
and brands regularly conduct online-only promos as well. MySpace has 120 million. Although their primary goal is to
“Text to win” promos leveraging the user base of text- connect with families and friends, users of these networks
capable mobile phones also have become common. have demonstrated a willingness to interact with – and
even help promote – brands and retailers they like. In
Phase 2: Shopper Purchase/Retailer Sales response, marketers are devoting significant resources to
A relatively new strategic use of digital tools is to directly harnessing the power of these user bases.
influence purchase decisions and/or drive sales at physical
retail locations or online e-commerce sites. The numerous • Word of Mouth: The world’s oldest form of marketing
tools that can be utilized for such shopper marketing has become nearly systemized through social networks
activity include tactics that reach consumers “at-home,” (think of the now-ubiquitous Twitter “re-tweet,” for
“on-the-go” and “in-store.” These three steps in Catapult’s example) and the thousands of online communities and
“Digital Path to Purchase” will be discussed at length in bloggers (from watchdogs to fanboys) now in operation.
sections 4-6. Many of these sites attract audiences that rival those of
consumer magazines and most TV programming, and
Phase 3: Consumer Loyalty marketers therefore are engaging with them.
Digital technologies have made it far easier for brands
and retailers to maintain direct communication with • Advocacy: Marketers can establish relationships
existing customers and recruit new ones. They also – for with the operators of such advocacy sites and provide
better and worse – have made it easier for consumers relevant, helpful content to their audiences, thereby
to share their own (sometimes brutally) candid opinions fostering goodwill within the community. (One brand
about the products and services they encounter. Among marketer says the process is similar to working with media
the tools falling into this area are: editors.) Perhaps most famously, Walmart’s “Elevenmoms”
4
program united • Inspire Me. Consumers want fresh ideas and relevant,
20 independent problem-solving offers that will entice them to try new
“Mommy products and services. This explains the popularity of the
bloggers” in a “meal solution” programs that have become a staple of
bid to insinuate packaged goods merchandising over the last few years.
its own shopper
marketing • Support My Values. Consumers are motivated by
initiatives social causes that make sense and enhance their self-
into the worth. There is no greater example of this motivation
conversation than their response to the scores of marketing campaigns
(although every October in support of breast cancer awareness.
the program Conversely, consumers now have numerous public
appears to have forums through which to rally against brands they believe
been largely to be opposing their personal values.
abandoned Walmart’s “Elevenmoms” community
after only one year). • Connect Me. Today’s consumer not only wants to stay
close to family and friends, but also be connected with
• Products/Reviews: At first, the prospect of letting “others who know,” according to Catapult. The popularity
consumers provide reviews was intimidating to brand of social networks and niche-content blogs is a byproduct
marketers. They soon realized, however, that the Internet of this need. Many consumers also want to be the “first to
made such sharing inevitable, and have therefore know,” a desire illustrated by the rise of Twitter in general
embraced the concept by allowing unedited reviews and, more specifically, P&G’s Tremor and Kraft’s First Taste
on their own sites and actively responding to criticism new-product websites.
elsewhere.
3. KEY CONSUMER BEHAVIOR

Despite the emergence of this new “digital shopper,”
it’s important for marketers to understand that “the
consumer’s core needs don’t change, just how they satisfy
those needs,” says Seth Diamond, vice president-shopper
insights at Catapult. The agency segments these core
needs into five emotional drivers:
• Save Me Time and Money. While always a factor, the

importance of price has escalated since the economy’s
downturn in 2008. This explains the 42% rise in coupon
redemptions since the end of 2008, according to Nielsen.
Current research studies suggest that price will remain Giant Food’s meal solutions microsite
extremely important, since more consumers have learned
that they don’t necessarily need to sacrifice quality by
choosing the best deal.
In addition to the savings aspect, this area also

encompasses the shopper’s need to find deals easily and
navigate the store quickly. The former already has been
enhanced dramatically through digital tools, and the
latter is quickly following suit.
• Surprise and Delight Me. Although they’re more

actively searching for deals, consumers also desire
unexpected rewards for their actions, and task-enhancing
services that exceed their expectations. This brings loyalty
programs and simple path-to-purchase tools to the
forefront of the marketing plan. Coupons.com
5
At-Home Technology Awareness Levels

Aware and Have Used Aware and Have Not Used
Printable Web Coupons

Facebook
Twitter
Ratings/Reviews
Online Circulars
Email/News from Brands
Promos on Retailer Websites
Blogs
Co-Branded Emails
Printable Shopping Lists
Shopping Widgets
0 10 20 30 40 50 60 70 80 90 100
For consumers, the greatest benefit of digital which awareness of digital tools is already high, usage
technology is that it can help fulfill these needs faster and is increasing steadily and interest levels suggest great
more efficiently, through channels that make marketing promise for the future.
far more of an interactive exchange than a one-way Catapult also found a user base that, though still
dialogue. relatively small in numbers, already are starting to discern
which tools enhance each step of their path to purchase,
Digital Behavior Trends and already are questioning the real value of some. These
In order to understand the effect of digital shopper digital shoppers are “identifying which tools can help
marketing tools on these core needs, Catapult fielded its them decide where to shop, and which ones are more
second annual survey in summer 2010 (with assistance helpful for deciding what to buy,” says Cloutier.
from Ipsos OTX). Based on an analysis of responses from
1,345 consumers, Catapult uncovered a landscape in
At-Home Technology Interest Levels
% of People Who Have Used % of People Interested in Using
Printable Web Coupons 73% Promos on Retailer Websites 48%
Online Circulars 63% Online Circulars 48%
Promos on Retailer Websites 53% Printable Web Coupons 45%
Ratings/Reviews 62% Printable Shopping Lists 41%
Email/News from Brands 58% Co-Branded Emails 40%
Facebook 57% Ratings/Reviews 38%
Co-Branded Emails 40% Email/News from Brands 37%
6
The At-Home ‘Shopper’ On-the-Go Technology Awareness Levels
Awareness levels for at-home Aware and Have Used Aware and Have Not Used
digital shopping tools are
generally strong – near 80% or Mobile Search
better for most tactics. That’s Mobile Websites
not surprising, since most of
GPS Locator
the tactics in this group are
personal computer-based Paperless Coupons Sent to Loyalty Card
and have been available for a Brand Apps
number of years. Mobile Coupons
What is surprising, however,
is the dramatic increase in Mobile Phone Shopping List
usage in just one year. Since Text Alerts from Brands
Catapult’s 2009 survey, the Retailer Apps
use of printable coupons
Mobile Coupons Sent to Loyalty Card
jumped from 54% to 73%,
and online circular viewing Location-Based Check-In
rose from 33% to 63%. Less Scannable QR Codes
surprisingly, awareness of
Image Recognition Software
both Facebook and Twitter
increased substantially as well. 0 10 20 30 40 50 60 70
However, Diamond suggests Source: Catapult Marketing, July 2010
that Twitter’s relatively low

usage despite its high awareness implies that the network But the survey’s most significant data may be the
already is experiencing some post-fad decline. Similarly, levels of interest expressed by respondents who are
the use of shopping widgets (“applets” that can be aware of the tactics but still have not used them. In this
downloaded to a user’s computer desktop or embedded regard, better than 35% of respondents are considering
in a web page) was flat from year to year, suggesting that future use, which represents tens of millions of additional
the tool may become passe now that mobile apps have consumers.
emerged.
On-the-Go Technology Interest Levels
Mobile Search 43% Mobile Search 23%

Mobile Websites 29% Mobile Websites 23%
GPS Locator 28% GPS Locator 33%
Text Alerts from Brands 14% Text Alerts from Brands 25%
Brand Apps 13% Brand Apps 21%
Retailer Apps 10% Retailer Apps 26%
Mobile Phone Shopping List 13% Mobile Phone Shopping List 31%
Coupons Sent to Loyalty Card 30% Coupons Sent to Loyalty Card 49%
Mobile Coupons 12% Mobile Coupons 34%
Mobile Coupons Sent to Loyalty Card 9% Mobile Coupons Sent to Loyalty Card 33%
Scannable QR Codes 8% Scannable QR Codes 35%
Image Recognition Software 7% Image Recognition Software 25%
7
In-Store Technology Awareness Levels

Aware and Have Used Aware and Have Not Used
Self-checkout
Payment from cell phone
On-pack promotions: text to win
Walmart TV
In-store kiosks
TV in-store (at shelf )
Handheld scanners*
Touchscreen digital signage

0 10 20 30 40 50 60 70 80 90 100
*Ahold USA shoppers only Source: Catapult Marketing, July 2010
In general, shoppers are using at-home technologies The ‘In-Store’ Shopper

to plan their routine stock-up trips (which explains their In the store, it seems clear that shoppers are “opting in” to
heavy use of circulars, shopping lists and promotions) or technologies that improve their experience and provide
to find specific information about big-ticket items (where clear-cut solutions for their needs. That would explain
they often turn to ratings/reviews). why 88% of shoppers have used self-checkout lanes (up
Therefore, the highest levels of adoption are found from 71% in 2009), and why Redbox video-rental kiosks
among tools that “provide direct value and relevant have proved to be a hit.
information,” says Jason Katz, Catapult’s executive vice It also may explain why so many in-store technologies
president of emerging media. “Consumers are using have failed to penetrate the marketplace in the last 10
these tools to pre-shop the store, to decide where to buy years: Many of the tools that have been tested – shelf-
and what to buy.” edge TVs, “smart” shopping carts, talking beer coolers
– and even fully deployed at retail were focused on pure
The ‘On-the-Go’ Shopper advertising and delivered no discernable advantage for
Compared with at-home tools, awareness of ‘On-the-Go’ shoppers. In addition, the more popular technologies
technologies is lower because most of these tools are in Catapult’s study generally are “opt-in” or permission-
relatively new and engagement requires a smartphone, based tools that let shoppers choose to use.
or at least advanced cellphone functionality. Still, overall Overall, awareness of in-store technologies is high,
awareness is better than 40% in most cases. especially considering that few of the tools have been
Yet penetration rates are significant and growing widely deployed. Nearly 50% of shoppers are now aware
steadily: use of Internet coupons delivered directly to of such tactics as kiosks and in-store TV.
loyalty cards tripled to 30% between 2009 and 2010. What’s more, usage levels have jumped considerably
More than 43% of respondents are already using mobile over the last 12 months: Walmart TV from 6% to 29%,
search, and nearly one-third are taking advantage of “text to win” on-pack promos from 5% to 25%, kiosks from
mobile websites and GPS (global positioning satellite) 12% to 31%, in-store TV from 16% to 29%.
mapping and directions. “These tools are gaining The fact that a portion of these increases can be
tractions as smartphone penetration grows,” says Katz. attributed to wider deployment on the part of marketers
Likewise, interest levels among non-users are lower – especially for “text to win” promos and kiosks – does
than with at-home digital tools. “There’s clearly an not diminish their magnitude overall. (In fact, the number
education component here,” says Diamond, suggesting of TV screens installed at retail in the packaged goods
that some good old-fashioned awareness building may industry may very well have dropped since spring 2009.)
be in order. Interest in these tools is also strong, with more
Unlike the at-home tools, which shoppers are using than 40% of non-users expressing a desire for kiosks,
for some fairly clear shopping missions, these on-the-go touchscreen digital signs and in-store TV.
tools are utilized more consistently across trip type – from Based on the survey, Catapult theorizes that in-store
stock-up to impulse, says Diamond. technologies are having a much greater effect on impulse
8
In-Store Technology Interest Levels
Self-checkout 88% Self-checkout 34%
In-store kiosks 31% In-store kiosks 45%
Walmart TV 29% Walmart TV 37%
TV in-store (at shelf ) 29% TV in-store (at shelf ) 43%
Touchscreen digital signage 24% Touchscreen digital signage 45%
Handheld scanners* 39% Handheld scanners* 63%
Payment from cell phone 18% Payment from cell phone 20%
On-pack promos: text to win 25% On-pack promos: text to win 30%
*Ahold USA shoppers only Source: Catapult Marketing, July 2010
purchases than they are on pre-meditated shopping trips, that greeted users as they browsed. Over time, a
which are more likely planned out using at-home and on- compromise was reached, with consumers resigning
the-go tools. themselves to a fair amount of commercial messages and
marketers getting a little more sensitive about the ways in
The ‘Integrated Consumer’ which they made contact.
The emergence of smartphones is a technological Consumers will not be as understanding of intrusive,
breakthrough that could blur the use of many of these unwanted messages delivered to their smartphones.
now-unique shopper tasks, tools and missions. Ultimately, Telemarketers were quickly dispatched from the
it also could lessen the distinction between consumer cellphone medium early in its growth, and reputable
and shopper, because the mechanisms that turn the latter marketers are collecting opt-ins before delivering text
into the former will be omnipresent. messages. In stores, shoppers – as they’ve already
Already, many of the shopping tasks traditionally shown – tend to avoid any technologies that offer
performed “at-home” are migrating to the smartphone. nothing but blatant advertising.
“On-the-go” shoppers are searching the mobile Internet, Although the word has become somewhat of a
downloading coupons, looking at circulars, building cliché within the marketing industry, the overall goal
lists and looking for deals. (See chart above.) The pre- for marketers employing digital tools is to provide
shop planning stage now can be conducted anywhere, “solutions” – offers, services and content that fulfill
anytime. shopper needs. Thus, some traditional levers of marketing
“In-store,” shoppers likewise now can search for communications will have to be pushed harder, and some
product information, find coupons, consult with friends perhaps hardly used at all.
and compare the store’s price with those at other retailers
– making the planning process an ongoing activity. • Branding: While there may be opportunity for pure
branding through some at-home or leisure-time Internet
vehicles, there is little room for the strategy within digital
shopper marketing (or within any shopper marketing
4. WHAT TO DO: STRATEGIES program, for that matter). By and large, digital tools are
FOR COMMUNICATION best utilized by leading with a solution and earning the
Perhaps the greatest danger to the continued growth of brand a halo in the process.
digital shopper marketing is the potential for marketers to Kraft’s iFood Assistant app contains almost no visual
over-utilize these tools and bombard consumers with too brand imagery, but connects the company’s products
many communications. with consumers on a daily basis. P&G’s Charmin maintains
In the early days of the Internet, there was strong a visual presence as sponsor of “Sit or Squat,” a free app
backlash against the relentless onslaught of advertising that helps users locate public restrooms, but the implied
9
goal is more to help consumers rather than push product. on mobile marketing.
Kellogg Co.’s banner ads within ShopRite’s iPhone app In general, the
link directly to a list of products that can be added to a tactic entails a
shopping list, not to a brand website. “Shopper marketing straightforward offer
activities tend to operate deeper in the purchase funnel, that resonates with
yet still play a critical role in building brand equity,” says recession-minded
Daniel Cooke, the CPG’s director of digital shopper consumers. (The fact
marketing. “Digital channels provide more options to that participation
extend our brand messages [while helping] shoppers can be tracked better
locate and purchase our products more conveniently.” than most other
tactics is certainly a
• Sales/Discounts: With 86% of Catapult’s survey factor, too.)
respondents attributing their use of digital tools to “saves Growth in digital
me money,” sales and other offers are as important a coupon redemption
component of digital shopper marketing as they are (especially online)
anywhere else. is easily outpacing
In June 2009, Target joined with P&G for a “Big Brands, all other delivery
Cellfire’s mobile coupon service
Small Prices” campaign that represented the first time vehicles, and
the retailer promoted store-only products on its website redemption rates are
(which sells general merchandise, but not packaged also significantly higher. (In 2009, 15.9% of Internet
goods). The program proved so successful at driving in- coupons were redeemed vs. 0.8% of newspaper FSIs.)
store sales that the tactic has become standard practice. Throw in the fact that digital coupons can be targeted to
The bulk of retailer activity in the digital space is pre-disposed shoppers rather than “carpet-bombed” to
focused on sales promotion, based on the In-Store the masses, that 39% of smartphone users find mobile
Marketing Institute’s marketplace analysis. ShopRite’s coupons “exciting” (according to InsightExpress), and
iPhone app, for example, simply presents weekly specials that there are tangible savings related to eliminating
by category, enabling its 50,000-odd users to e-mail paper-based distribution, and you have the elements of a
themselves a shopping list and locate the nearest store. winning strategy.
Through the third-party Cellfire mobile coupon service, Online coupon aggregators have been around since
the chain’s frequent the original Internet boom of the late 1990s, but gained
shoppers download strong momentum when the recession arrived in 2008.
offers to their loyalty Although statistics from comScore suggest that activity
cards. may have peaked in late 2009, traffic to these sites is still
However, heavy: segment leader Coupons.com had 6.7 million
marketers should unique visitors in April. And the site’s two companion
consider that “the apps – GroceryIQ and Coupons.com – surpassed one
importance of million downloads in June, with nearly one-third of the
shopper marketing total coming in the preceding 45 days, according to the
is getting beyond company.
price,” because it can The process already has become digitized from
deepen a brand’s start to finish, with Target this summer introducing a
relationship with program in which shoppers text-message to receive
consumers, says coded coupons that can be scanned on their phones at
Matthew Egol, vice checkout.
president for Booz Another sign of the times occurred in July 2010, when
& Co.’s Consumer, Kroger staged a massive instant-win game in which
Media & Digital all 150,000 prizes consisted of free product awarded as
Target’s mobile gift card service
practice. coupons directly downloaded onto the winner’s store
loyalty card.
• Coupons: The practice of “paperless” coupons has “Digital coupons, including those delivered by mobile
long been institutionalized on the Internet, through devices, have proven themselves to offer better return on
numerous third-party websites in addition to the our investment than coupons delivered via print media,”
programs of retailers and manufacturers. In addition, says Karl Schmidt, director-promotional marketing for
coupon distribution has probably been the most General Mills. The company “is taking a leadership role
common entry point for brands and retailers embarking within the CPG industry in shifting coupon dollars to
10
digital formats.” For example, while the URL for krafttrecipes.com
However, an age-old criticism of coupons still applies: makes ownership obvious, visitors must scroll to the
the tactic caters to cherry-picking deal seekers, and bottom of the home page to find any reference to a
may even erode brand equity among loyal consumers. brand; the site has more than 2.5 million monthly visitors.
Although marketers may be required to participate The recipe-focused bettycrocker.com operated by
to keep pace with the competition, they should use General Mills also attracts 2.5 million visitors per month,
it selectively and strategically (as collaborative retailer but it carries more of a branded presence – including ads
marketing, or perhaps loyalty-based rewards) to drive from outside companies such as Nestlé.
incremental growth rather than replicating the “Catch 22”
of continuous, share-renting offers that has occurred in
the paper-coupon world.
• Consumer promotion: Digital tools have been a great

benefit to consumer promotion on the administrative
side, and also have greatly improved ease of entry for
consumers. For at least a few years, the Internet has been
the primary method of entry and redemption for most
promotional campaigns.
More recently, marketers have begun activating
promotions through their Facebook pages, which already
are connected to tens (if not hundreds) of thousands of
fans and provide easy access to a few hundred million
other consumers. In June, Kraft’s Nabisco staged its latest
cross-promotion with the Milk Processors Education
Board by sending consumers to Facebook to enter a
contest and request coupons for a free package of Oreos.
(Would-be entrants first had to register with Facebook.) Walmart’s Soundcheck site
Online sampling also has been popular, despite
the fact that the tactic embodies a contradiction: it Elsewhere, P&G has “Everyday Solutions” (“great
provides none of the “instant gratification” that typically values & expert advice”), which spans its entire brand
makes digital channels more appealing to consumers. portfolio, as well as “Home Made Simple,” a site that
Nonetheless, StartSampling.com, a direct-to-consumer focuses on household cleaning brands.
site that also operates branded programs for Walmart, Retailers now are starting to follow suit – largely
Kroger, Walgreens and other retailers, has more than through collaboration with CPG partners. The most
three million registered users. Last spring, Pampers common example in the last few years has been the
received requests for 10,000 trial packages of new Dry “meal solutions” now offered by nearly all retailers in the
Max diapers in less than one hour after promoting the food-drug-mass channels. The concept centers on in-
offer on Facebook. store displays of all the ingredients needed for a simple,
In addition to cost savings, online consumer inexpensive meal, but is typically accompanied by an
activation makes it easier for marketers to collect data on online library of recipes and some form of outbound
participants and, in theory at least, begin the process of digital communication to the chain’s shoppers.
fostering one-to-one relationships. Content needn’t always be task-oriented, however.
The need for simple entertainment can also be solved.
• Consumer/Shopper Solutions: Marketers are finding For the last three years, Unilever has had success serving
that unique content that helps consumers solve their as exclusive sponsor of Walmart’s “Soundcheck,” a
everyday needs can help build “communities” around microsite offering musical performances and “behind the
brands and, either directly or indirectly, drive retail sales. scenes” content from top performers. Unilever rotates the
Such content also can be used as a basis for co-marketing sponsorship each month, matching artists with a brand
programs that will directly drive sales. that’s relevant to their audience. The sponsorship leads
For classically trained brand managers, the tactic can to in-store activation on the Walmart Smart Network and
be hard to swallow, since the brands themselves often thematic product displays. (Soundcheck, by the way, is
are supporting players within the content (at least until now also available through an app.)
it comes time to present a promotional offer). Still, many The concept now is migrating to the mobile platform
companies now operate sites that subtly position their through apps such as the iFood Assistant. Keep in mind,
brands within a solution. however, that there already are more than 180,000 apps
11
available to iPhone users, and brands will have to deliver say they’re more likely to purchase a product associated
truly compelling content in order to stand out. Token with a cause. (Incidentally, 29% say they’d like to hear
efforts will be rejected. “If it’s not inspiring, there’s going about nonprofit initiatives via mobile devices, Cone says.)
to be backlash,” warns Diamond. That’s why nearly every major P&G brand has a long-term
attachment to a nonprofit organization. It’s also why
• Loyalty Marketing: Digital tools provide marketers Breast Cancer Awareness Month has become a key event
with multiple ways to establish two-way communication on the promotional calendar of most retailers.
with shoppers, either to improve existing loyalty As with other forms of promotion, digital tools
programs or to foster new ones. facilitate the marketing and management of cause-
The immediacy of e-mails and text messages makes marketing campaigns. In this case, the ease with
communication not only easier, but also more satisfying which a program can become viral through forwarded
for operators and users. In fact, it would be hard to find an e-mail, blogs and social networks makes it far easier for
existing loyalty program whose primary communication marketers to spread the word.
channel isn’t the Internet. Mars Inc.’s Pedigree brand ultimately donated 2.2
The emergence of mobile-based scanning and other million bowls of dog food to animal shelters in 2009
technologies is making rewards redemption fast and easy, through an online campaign that asked consumers to
too. Kroger, Sam’s Club and other retailers let frequent view a TV spot. Target used Facebook as the stage for
shoppers download coupons directly to their cards. This a 2009 effort asking consumers to decide which of six
fall, Target’s P-O-S systems will automatically deduct 5% charities should receive the retailer’s funding. The effort
off the receipts of all TargetRed credit cardholders. helped the chain quickly amass a fan base of 500,000.
On the brand side, too, digital channels have made (The total has since surpassed 1.5 million.)
it more feasible for the likes of Coca-Cola to operate “My
Coke Rewards” or Pampers to manage “Gifts to Grow,” • Co-marketing: Generally speaking, using any of
both of which reward members with prizes in exchange the aforementioned tactics in collaboration with retail
for in-pack codes. (Pampers soon will be adding mobile partners can enhance their effectiveness as shopper
capabilities.) marketing tools. “We say that it’s all about engaging
In-store technologies, too, are perfect for loyalty- the shopper,” says Katz. “But that’s really only half the
based interaction. Ahold USA offers its frequent shoppers equation. It’s also about the retailer.” As with shopper
Scan It!, a hand-held device that lets them scan groceries marketing in general, a key ingredient to success are
while they shop for fast, one-swipe checkout at the collaborative
register; it also delivers targeted coupon offers based on programs that
personal purchase history. CVS/pharmacy stores have an drive sales.
“ExtraCare Coupon Center” kiosk that prints out targeted Leading
offers. Such in-store deployments allow shoppers to retailers now set
activate rewards in the likeliest of places: at the point of up microsites
purchase. for nearly all
In a study released in July, the National Retail of their major
Federation suggests, “The ability to tie a loyalty merchandising
membership number to a mobile phone not only programs,
dramatically increases consumer participation [but] also offering
enhances the data that is collected about that consumer.” sponsorship
Such typical complaints about programs – lengthy opportunities
sign-up processes, confusing terms, delays in reward for CPGs if
redemption, and the need to carry cards – are eliminated. not outright
collaborative
• Cause Marketing: CauseWorld is an iPhone app execution. Both
in which users earn “Karma Points” that translate into Walmart and
monetary donations for select charities by “checking Target (among
in” at retailers (confirmed by the phone’s GPS tracker) or others) work with
scanning a product’s barcode. It has attracted 1.25 million a number of CPGs Meijer’s MealBox app
downloads since its April launch. to develop sites that
That number underscores the surge in cause-minded provide relevant content, along with product info and
marketing that has taken place over the last few years, promotional offers, thereby adding an effective “at-home”
which has been driven by an increase in cause-minded element to an in-store program.
consumers. According to Cone Inc., 59% of consumers In response, leading CPGs have been leveraging
12
existing assets for account-specific work. The database
at Kraftrecipes.com, for instance, has spawned “Meijer
5. WHERE TO BE:
MealBox” and other retailer-specific online recipe STRATEGIES FOR PLACEMENT
centers; P&G’s homemadesimple.com begat a same- In addition to determining the right content strategy,
named microsite at Walmart.com; for its annual summer marketers must also develop an efficient plan for
barbecuing platform, Clorox Co. now regularly includes placement in a communications channel that seems
supplying recipes, cooking tips and other digital content limitless. But both the efficiency and cost savings of
to numerous retail partners. digital marketing can deteriorate rapidly if marketers
Top companies such as General Mills, Kellogg and try to be everywhere. “You can’t dilute the effort and
Kraft also are helping retailers move into the mobile overextend your resources,” says Mary Rodgers, director
realm. General Mills dominates the Cellfire coupon service, of marketing communications for Cuisinart.
for example, often serving as the lone CPG supplying This section will discuss activity “at-home” on the
coupons to specific retailers. Kellogg is the sole advertiser Internet, “on-the-go” through mobile phones and “in-
on ShopRite’s app. store” as separate “places.” However, these distinctions
The justification is clear enough: 60% of respondents are expected to largely disappear as mobile becomes the
to Catapult’s study say they have a more positive primary method of accessing the Internet, and as in-store
shopping experience when using digital tools. More tools evolve to provide online access and smartphone
importantly, though, 34% say they are more likely to shop integration.
at a retailer that offers shopper-enabling technologies,
and 24% are more likely to purchase the products • Online Destinations: The Internet is as viable a mass
featured through them. medium as broadcast TV, radio or print advertising, and
provides the added functionality of directly connecting
• E-Commerce: There is no longer any doubt that the “viewers” to additional information and purchase
Internet will ultimately command a significant portion of opportunities. Website Traffic, June 2010
packaged good sales. Bricks and mortar giant Safeway Therefore, straightforward display advertising Total Unique
(in some markets) recently joined the ranks of Internet on highly trafficked websites can be an important Visitors (000)
grocers such as Ahold’s Peapod, FreshDirect and component of a digital plan, to drive traffic to whatever
NetGrocer in offering home delivery of goods ordered destination will serve as the hub for a campaign.
online. Publix is among the chains letting shoppers buy Online networks such as Fox Interactive Media,
online and pick up at their local store. Glam Media and Turner Network attract upwards of 85
Among Catapult’s respondents, 9% had made a million visitors per
purchase through an online grocer in the prior six months, month, according
while 47% had shopped at Amazon.com, 24% at Walmart. to comScore Website Traffic, June 2010
com and 14% at Target.com. data. Individual Total Unique
Two noteworthy advancements have taken place properties such as Visitors (000)
The New York Times, General Food Sites

recently: Start-up Alice.com began shipping orders
eBay and The Allrecipes.com 12,212
for shelf-stable foods and other packaged goods by Cooks.com 8,554
mail, relying on CPGs to help with fulfillment for their Weather Channel
Foodnetwork.com 7,821
own products. More than 180 companies already have can deliver more About.com Food 5,375
partnered with the site, including 30 that have added than 40 million. AOL Food 4,849
linked “storefronts” to their own websites. In addition, Gourmandia.com 4,531
P&G, meanwhile, launched pgestore.com, which establishing a Chow.com 4,253
presence on FoodBuzz.com 3,814
is directly selling to consumers for home delivery. The
Delish.com 3,668
company, however, has carefully asserted that the goal such online-
eHow Food And Drink 3,540
is to better understand consumers rather than to bypass only retailers as
the retail channel. Amazon.com and Brand Sites
Although the future potential for direct-to-consumer Drugstore.com is Kraftrecipes.com 2,758
sales of packaged goods falls outside the scope of this likely as important Bettycrocker.com* 2,700
a placement Pillsbury.com* 1,283
report, it represents yet another way in which digital
these days as Kraftfoods.com 686
technologies are having a profound impact on the retail Tablespoon.com* 358
industry and presents a future area of execution for supermarket
Nabiscoworld.com 310
digital shopper marketing. circular features – Eatbetteramerica.com* 447
and will become *Owned by General Mills
increasingly vital Source: comScore Inc., June 2010

if private-label
13
growth and SKU rationalization remain significant aspects formats. For the time being at least, social networks seem
of bricks-and-mortar retail strategy. to have supplanted “blogs” in the minds of consumers.
Of course, for sheer numbers, Google, Yahoo and
other leading search portals are the prime locations for • Social networks: For sheer audience numbers, leading
advertising. Google’s sites drew nearly 161 million U.S. social networks are also a place to be, although here
consumers in May – representing 81% of the entire online there’s no guarantee that even a small percentage of total
audience for the month, according to Nielsen NetRatings. Facebook or Twitter users will ever become a brand’s fans
In addition, advertising on search engines provides the or followers unless they’re given compelling reasons to
added bonus of relevance, because placements are tied do so. Thus, while some brands have been able to garner
to relevant search results. followings of one million consumers or more, many
PepsiCo’s Quaker brand generated 280 million others are far from reaching such critical mass.
impressions by running display ads this spring through Furthermore, marketers must tread a fine line
the Google Display Network, a service that places between providing helpful information and blatantly
advertising on numerous relevant sites both large hawking their products when communicating through
(Google’s own YouTube) and small (niche blogs). The these networks. Cuisinart, for one, avoids outright
brand ultimately gained a 9% sales lift through the product pitches on its Facebook page because “the
corresponding campaign. community tends to be put off by that,” says Rodgers.
Instead, a “Shop Cuisinart” link at the top of the page
• Targeted sites: Beyond such high-traffic destinations directs fans to the brand’s site for more overt marketing.
are thousands of other websites with smaller audiences While all signs point to Facebook as being a viable
that can be ideal ad venues for specific brands. Some tool for brand building, “no one has cracked the code for
provide as good or better a niche of consumer prospects using it to drive sales,” says Diamond. In Catapult’s study,
than a special-interest publication or cable television social networks were rated highly for awareness and
channel. usage, but scored low in terms of being influential or even
Included here are the numerous content sites run by helpful for making purchase decisions, he notes.
traditional media companies, as well as the hundreds Convenience store giant 7-Eleven made an ambitious
of blogs and other consumer-operated sites that have attempt to directly drive sales via Facebook this summer
emerged to gain significant followings and, in some through a marketing pact with Zynga Game Network,
cases, have turned into pseudo-commercial enterprises the company behind wildly popular social games such as
themselves. Farmville. The chain staged a massive rewards program in
The viral nature of consumer blogs – one of the true which players earned game-playing credits by purchasing
phenomena spawned by the digital age – requires that real products in 7-Eleven stores. 7-Eleven was so
marketers at the very least monitor the discussions taking committed to the promotion that it revamped packaging
place within them and, when possible, participate by for several SKUs.
supplying meaningful, relevant content. “I absolutely believe” that Cuisinart’s Facebook
Direct sponsorships and other paid relationships are activity drives sales, says Rodgers, while noting that the
also possible and should be considered when available. brand’s indirect path to purchase entails Facebook links
(Aggregated services such as the Google Display to product-specific pages on the brand’s website, from
Network extend into the “blogosphere” and can help which fans can then find a convenient retailer. Cuisinart
marketers identify the best sites with which to consider currently is working with retailer partners to quantify that
partnerships.) belief.
While operating a blog internally is certainly an option, In the case of Twitter, “We find that it can play a role in
marketers must take care to populate it with relevant, public relations, but as of yet hasn’t delivered meaningful
informative and – as much as possible – unbiased content shopper value,” says Katz. Cuisinart, in fact, assigns
in order to attract and maintain an audience. That means responsibility for managing the brand’s Twitter account
largely avoiding straightforward marketing messages that to its external PR agency.
are required to “close the sale.” The trick is to establish a Twitter may be better employed at the local level,
community that will do most of the work themselves. several sources contend, such as a store manager
When global retailer Tesco entered the U.S. alerting followers in the neighborhood to a relevant
marketplace with Fresh & Easy in 2007, its primary sale: Immediately after the Chicago Blackhawks won the
marketing vehicle was a blog written by company National Hockey League’s Stanley Cup championship in
executives. Had the launch taken place this year, the June, both Dick’s Sporting Goods and Walgreens drove
mechanism instead may very well have been a Facebook traffic to local stores by tweeting about the availability of
page, which in early 2010 was a tactic employed by team merchandise.
such retailers as H-E-B and Petco to publicize new store
14
• Brand sites: Most brands maintain a website that Among those are the tools that consumers utilize
serves as the central location for product information and/ most frequently: 55% of Catapult’s respondents look at
or promotions. More forward-thinking CPGs also provide circulars online, 53% compare product prices, 39% look
“brand-neutral” content relevant to their products’ use, for coupons and 34% read reviews and ratings.
such as recipes for food brands or housekeeping tips for “The shoppers we talked to very clearly said that
cleaning brands. they’re going to retailer websites for price and product
Done well, such brand-operated content sites can information,” explains Katz. “However, when they need a
themselves become destinations. A key trend for the recipe or have heard about a promotion, they’re going to
future may be co-marketed sites operated by non- brand websites.”
competitive, complementary products extending the More recently, retailers have also begun to establish
promotional partnerships that they’re already conducting themselves as content destinations, in great measure with
at retail (think Hershey and Kraft’s annual S’mores the help of manufacturer partners. “The retailer wants to
campaign). remain strongly in front of the shopper,” says Booz’s Egol.
Among Catapult’s respondents, 39% said they visit “Coupons and online circulars are part of that, but they
brand websites to look for recipes and other ideas, 32% to also need content.”
participate in promotions, and 28% to research products. “We are constantly exploring digital collaborations
(See chart below.) The implication is that consumers are with our key retail partners to help build brand equity
using these sites for pre-shop planning or other occasions and drive sales in-store,” says Rob Candelino, Unilever’s
rather than to help them directly make purchase marketing director for personal wash in the U.S. “When
decisions. it’s relevant to our target audience, and our retail
partner has a strong digital presence, a collaborative
• Retailer websites: Although it took retailers a little and innovative digital program helps us deepen our
longer to identify the need for robust consumer-facing relationship with the consumer.”
websites, they’ve caught up to brand marketers very “Digital marketing serves as an efficient method for
quickly over the last few years, with most national chains account-specific programs, provided that it is planned
already offering the basic shopping tools needed to plan for on the front-end,” says Kellogg’s Cooke, whose role
a trip to the store (and, increasingly, some online purchase makes him “100% dedicated” to retailer activity. “Having
options as well). dedicated resources in digital provides an additional
Motivations for Visiting Retailer vs. Brand Sites

12%
Look for recipes/ideas/tips
39%
55%
Look at circulars
9%
Compare product prices 53%

11%
Look for coupons or deals 39%

26% Retailer Site
Research products 35% Brand Site

28%
Look for product reviews 34%

18%
Participate in promos 21%

32%
Suggest new product ideas 14%

21%
Share new experiences 13%

11%
Connect with other customers 13%

8% Source: Catapult Marketing, July 2010
15
Status of Mobile Capabilities Among Retailers

Up-to-date technology In process of deploying Deploying by end of 2010
Mobile browsing
Digital couponing
Social networking
Traditional online content
Product information
Stock check
E-wallet/payment processing
Targeted promotions
Loyalty program status
Order status
Version of website
Short-code text messaging
Location-based marketing
Unique widgets/applications
0 10 20 30 40 50 60 70 80 90 100
Source: National Retail Federation, May 2010
opportunity for us to foster deeper collaboration with our for other deployments: the retailer’s new Walmart Smart
retail partners.” Network, which is still rolling out to stores, is far more
It’s not incidental to note that some retailer websites shopper-friendly than its predecessor, Walmart TV.
serve rather nicely as destination sites as well. Walmart. “We continue to see success with in-store media, but
com attracts more than 35 million and Target.com more there is still room for improvement,” says Cooke, who lists
than 25 million visitors each month, although both of interactive TV, digital signage and kiosks as the “primary
those mass merchants draw large numbers of eyeballs for tactics – with each having their pros and cons. It comes
their non-grocery offerings. In the pure CPG marketplace, down to usability and relevance.”
Kroger.com and Safeway.com are the only supermarket Shifting the strategic focus to mobile-phone delivery
sites capable of drawing more than one million unique eliminates the biggest obstacle that in-store technologies
monthly visitors, according to comScore. have always encountered: the cost of installing and
It seems clear, then, that an effective digital shopper maintaining systems, which retailers have been loathe to
marketing strategy requires brands to work both on their incur and paid advertising models have been unable to
own and with key retailers to ensure that all aspects of the offset.
consumer’s path to purchase are adequately covered. On the other hand, a large-screen kiosk or digital sign
is a lot more viewer-friendly than a smartphone’s display,
• In stores: There is little in the recent history of in- and a shopper’s mission can probably be expedited
store technologies that would suggest a bright future. more by retrieving relevant information from an in-store
Over the last few years, it seems as if more devices have terminal rather than from their mobile devices.
been removed from stores than were deployed, and
the number of tested tools that never reached scale are • On the phone: Most industry practitioners are
legion. downright giddy when discussing the potential of the
However, “There is off-the-chart interest” for in-store mobile phone as a shopper marketing tool. And the
technologies, including the much-maligned in-store TV, expectations are warranted, given that the mobile
says Diamond. “From a shopper standpoint, these tools phone’s ability to deliver a targeted, relevant message at
are starting to work for them.” precisely the right time is unprecedented.
Respondents to Catapult’s survey rated at-shelf TV “Mobile is blurring the line between clicks and
and kiosks highly for both helpfulness and purchase bricks,” says Katz. “It’s turning Main Street into the main
influence, while digital signage and Walmart TV scored aisle of the store.” Smartphones eliminate many of the
well for helpfulness. distinctions discussed in this report, because they make
Consumer perception of Walmart’s technology, all content strategies available anywhere a consumer is
in particular, improved dramatically compared with holding one. Theoretically, the entire path to purchase
Catapult’s 2009 survey. And that may be a case in point can be traversed in a few thumb strokes.
16
The implications are endless. Marketers may soon
be talking about the “impulse trip” rather than the
“impulse purchase,” now that GPS-based tools can locate
consumers near a particular store and send an instant-
message offer that inspires them to stop in.
(The next step, potentially, could be programmed
reminders: “Don’t you need deodorant? That Walgreens
across the street has a sale on Right Guard.” Another is
real-time inventory reporting, directing shoppers to a
store guaranteed to have a desired item in stock.)
It already is obvious that brand marketers need to
develop websites tailored to the functional strengths and
weaknesses of mobile devices. If they haven’t already
done so, they also must develop a strategy for delivering
promotional offers via text or e-mail. That need is even Cuisinart’s Facebook page
more urgent for retailers.
However, marketers must resist the temptation to
try too much. The most significant potential deterrent
to mobile marketing is the backlash that will occur
6a. HOW TO DELIVER: STRATEGIES
if consumers are given too much information that FOR CONNECTING ONLINE
provides too little in the way of real solutions. Simply Search: In an April 2010 survey conducted by comScore,
put, consumers do not need a smartphone app for every 59% of consumers said that gathering information
retailer they shop, or for every brand they buy. online is important in helping them make purchase
“The opportunities are boundless and the pace of decisions, and more than half of those respondents
change is exciting,” says Cooke. “However, I also temper said its importance had increased in the last year. Other
this enthusiasm by ensuring that we’re not simply studies have found that as many as 89% of consumers are
deploying a tactic because it’s the latest trend. My role is researching online before buying (although still making
to ensure we are aligned strategically, and then executing 93% of their retail purchases offline).
the most appropriate solution based on consumer need
and insight.”
At-Home Technology Shopping Influences
Reviews/
Ratings
Printable
Coupons
Promos on Online
Retailer Sites Circulars
Brand Influence
Co-Branded Emails
Printable Shopping Lists
Twitter Blogs
Email/News
Facebook from Brands
Shopping
Widgets
Helpfulness
17
CPGs are already doing so.)

In one recent case study, General Mills’
Green Giant joined with Target before the 2010
Easter holiday to sponsor search terms such
as “frozen veggies,” “Easter meal ideas” and
“Easter side dishes” (because, as Roe notes, the
vast majority of searches do not contain brand
names). Those searches generated a top-page
Sponsored link to Target’s online circular, which
carried a $1 coupon for the brand. The effort
drove 3,000 visits to Target.com in three days.
Elsewhere, Google teamed with Compete
Inc. to track seven of P&G’s “sitelets” on Walmart.
com from September 2008 to November 2009,
and found that traffic to the pages increased
substantially when paid search was employed.
Deciding where to send searchers is a
A paid search campaign for Dove and Target balancing act. “You have to decide what
the need is,” says Kells. “What does she want when
According to surveys conducted by Google, 66% of she’s searching ‘Pampers?’” At a recent conference,
“moms” go online to obtain information about packaged Roe outlined one plan in which a search for Pampers
goods. That’s more than any other source, including generated three sponsored options: the first linking to
friends/relatives (used by 64%) and newspapers/ Pampers.com for helpful information, the second to
magazines (50%). Walmart.com for a special order, and the third to Sam’s
If the Internet is a key component of the path to Club’s site for searchers who might be planning a stock-
purchase, then search engine marketing “is the on-ramp,” up trip.
says Egol, noting that more than half of all online traffic
is driven through search engines. At a recent industry • Display Advertising: In whatever form it takes, the oft-
conference, JCPenney chief marketing officer Mike maligned display ad doesn’t deserve all of the negative
Boylson called search “probably the richest and most press it receives. While average click-through rates are low
productive marketing that we do.” (according to comScore, at 10% or less) they’re still more
Google’s Kells likens the search-return page to a store, productive than your average FSI (and a lot cheaper).
with the lead “Sponsored Link” position as the “endcaps” What’s more, a time-aligned analysis conducted by
and the right-column “Sponsored Links” as the “digital comScore found that traffic to hyperlinked sites increases
shelf” (see image above). “Imagine walking into a store during display campaigns at levels greater than the click-
and not finding your products on the shelf,” says Kells, through rates alone produce – implying a more latent
who before joining Google spent 15 years as a brand effect.
marketer at Revlon, Diageo and Unilever. “It’s sort of the Other studies conducted by comScore have found
same thing on a search engine results page when you’re that display ads can increase store traffic by 6% and,
not there.” combined with paid search, can drive up visits 43%. In a
And Google’s internal research provides a good long-term study conducted in 2008-2009, the research
reason for marketers to use paid search, unless their SEO company found that online ads generated an average
strategy truly does generate “optimal” results: one-third sales lift of 9%.
of Moms conducting searches never scroll down. “And Targeting capabilities are a key benefit. Last spring,
nobody goes past the second page,” notes Catherine Roe, General Mills ran a campaign through Google offering
Google’s head of consumer packaged goods, Midwest. $1 coupons on three brands. While the offer remained
Instead, “they refine their searches” if they can’t quickly constant, the featured retailer changed based on the
find what they want, she notes. consumer’s location. The process even can be refined
While brands have used paid search to drive traffic through ads that specify an exact retail location near the
to their own initiatives for years, the idea of using it for consumer’s home, according to Roe.
retailer co-marketing is relatively new. But it has great
potential, marketers say, with some even suggesting that • Social Networking: It seems clear that marketers
it ultimately could become a standard overlay to the trade should be involved in Facebook, Twitter, and other
promotion calendar. “Fundamentally, that could be huge,” social networks as a mechanism for public relations and
Diamond posits. (Roe hints that a few forward-thinking community building. Exactly how well the strategy will
18
serve as a shopper marketing In-Store Technology Shopping Influences
tool remains to be seen.
As it now stands,
consumers don’t view
Facebook or Twitter as helpful
in their planning process
or as influential in their
decision-making, according
Brand Influence
to Catapult’s study. But work TV at Shelf
in this area may help drive In-Store Kiosks

consumers to other digital
Walmart TV
tools that do a better job
of enhancing the path to Touchscreen
Digital Signage
purchase.
Text-to-Win
Handheld Self-Checkout
Promos
Scanners*
• Consumer Blogs: The
“blogosphere” is alive and well
with millions of consumers Payment from
Cell Phone
who are more than happy to
share their opinions – both
Helpfulness
good and bad – about brands.
As with social networks, *Ahold USA shoppers only Source: Catapult Marketing, July 2010
therefore, it is important for

marketers to be involved in the
conversation.
One case in point is
Viewpoints.com, a website that lets visitors rate and Still, widgets scored poorly on helpfulness and
review everything from automobiles to “Philadelphia influence in the Catapult study, largely because they
Spinach & Artichoke Dip.” Roe recently noted that this also ranked extremely low for awareness and usage. As
relatively obscure product from Kraft had garnered suggested earlier, however, the tool’s time may already
430 reviews on the site – a prime example of how well have passed, now that smartphone apps have arrived.
informed today’s consumer can be. The Meijer MealBox, for one, is already available as an app.
Surprisingly, though, blogs didn’t rate very highly
as helpful or influential in the survey. This suggests
that consumers are looking for more formal sources
of product information and reviews, such as retailer
websites. 6b. STRATEGIES FOR
CONNECTING IN-STORE
• Shopping Widgets: Branded shopping widgets make • Packaging: In Catapult’s survey, the use of on-pack
it easier for marketers to maintain an audience, because tactics such as “quick response” (QR) codes and text-
the applications are embedded on consumer websites to-win messages rated poorly for both helpfulness and
and desktops. ShopRite’s first use of the tactic helped the influence. However, the tactic is enticing because it is
East Coast chain become “a hot widget on New Jersey the only one that puts complete control of execution in
Mom blogs,” according to marketing vice president the hands of brand marketers and, therefore, is the one
Cheryl Williams. (It also helped the chain learn “where our way they can reach shoppers in the store without retailer
customers were hanging out” online, she noted.) involvement.
ShopRite also has a “Live Right with ShopRite” widget Although such tactics have earned a great deal of
that lets users check complete listings of product media attention, they still have not been used widely,
allergens, additives, ingredients and nutrients for specific according to Catapult’s study. Even text-to-win promos,
products, then create a printable shopping list. The which are fairly commonplace (weekly co-op FSIs typically
Meijer MealBox widget automatically creates a shopping include one or more executions), earned relatively low
list after users select a recipe, and also delivers exclusive usage and interest levels in the survey – and, therefore,
offers. Cuisinart has a widget that lets users find and print rated poorly for helpfulness and influence.
recipes. “It keeps us in touch with consumers on a daily
basis,” Rodgers says.
19
On-the-Go Technology Shopping Influences that will reply with where-

to-buy information within 24
hours (even if Sears or Kmart
Coupons to doesn’t carry it).
Loyalty Card Ubiquity, however, may
breed contempt. After all,
the goal of digital shopper
marketing is to simplify
Mobile Coupons
and enhance the shopping
Brand Influence
Retailer Apps
experience, not complicate
Shopping List on Phone
it. “When you’re on a mission
Text Alerts
QR Codes from Brands Mobile Search and you’re at the shelf,”
Location-Based Check-In Mobile Sites Diamond asks, “how often
GPS Locator
Brand Apps will you want to stop, click
Mobile Coupons
to Loyalty Card
a photo and go online for
more information?”
Image Recognition
Software
• Kiosks: No matter how
handy and functional
smartphones become, one
Helpfulness
can still imagine a future
Source: Catapult Marketing, July 2010 role for in-store kiosks. The
ability to instantly access an
The future of on-pack promotions may very well lie array of information about products, sales and related
in QR codes, which can quickly link shoppers to product content without having to click, scan and search on
information, direct them to a downloadable coupon, or personal devices would certainly be welcomed by even
let them enter a promotion. Since the codes already are the savviest of mobile users.
commonplace overseas, the practice is expected to reach That theory is supported by the fact that Catapult’s
critical mass here relatively soon. respondents rated kiosks highly for both helpfulness and
Packaged goods marketers already are experimenting influence, and 45% of non-users said they were interested
with the codes in advertising. In July, an FSI for Nestlé- in the tactic.
Purina’s Friskies carried a code that linked smartphone While most deployments to date have offered
users to the brand’s TV spot. Duane Reade put them on storewide information,
outdoor ads, sending scanners to a copy of the drugstore the next step should be
chain’s Duane Reader magazine. category-level devices
Those efforts illustrate the fact that, so far, the codes that address the specific
have largely been used as a novelty, letting consumers needs of particular
watch movie trailers or promotional videos, rather than shoppers. Earlier in 2010,
providing a real shopper benefit. “QR codes are intriguing, Target began rolling
but there’s no plan yet” on how best to deploy them, says out shelf-edge kiosks
Diamond, who compares the tool to “text messaging in health and beauty
before American Idol: a technology in search of a departments that help
purpose.” shoppers decide what
Earlier this year, Johnson & Johnson placed a code products will best solve
on signs at CVS/pharmacy that let shoppers obtain a their skincare or hair
coupon for Zyrtec. Last fall, Rosemont wine placed a code coloring needs.
on packaging that allowed scanners to receive a phone
call from Hell’s Kitchen chef Gordon Ramsey. Such unique • In-Store TV/Digital
promotional uses “could be the tiebreaker at the shelf,” Signage: Technology
suggests Katz. advancements also
QR codes also are being used to link consumers with may be eliminating
product details, price comparisons and other online any real distinction
data that can help inform purchase decisions. The Sears between kiosks and
Personal Shopper app lets consumers e-mail scanned digital signage, since
barcodes from any product to a customer service team both are now capable CVS ExtraCare Coupon Center
20
of facilitating online access and other forms of shopper automatically attached – as they walk into the store.
interactivity. Among the tools currently classified as on-the-go,
As with kiosks, the effectiveness of digital signs rests several are resonating with consumers, according to
in their ability to provide trip-enhancing information. Catapult’s survey. Paperless coupons downloaded directly
In upgrading the Walmart Smart Network, the chain to loyalty cards is far and away the most influential of
scrapped its former content strategy of generic, storewide them, and in terms of helpfulness is second only to GPS
ads and promotions in favor of department-level content locators (themselves a key to the future of digital shopper
on some screens and product-specific information on marketing).
others. The Smart Network can also tailor programming Mobile-friendly search tools and websites were also
by region or even store. rated highly as helpful, which underscores the need for
This summer, Walmart took a longer stride into the marketers to provide them. Mobile coupons, retailer
future by conducting a 10-store trial of “virtual makeup apps and phone-delivered shopping lists score well for
mirrors” that let shoppers test products by scanning influence, but lag a bit in terms of helpfulness.
photos of themselves and the barcodes of cosmetics One “old” tactic that Diamond suggests still presents
they’d like to try. Users then could save the resulting “a huge opportunity” for marketers is co-branded
image and e-mail to friends to get a second opinion. e-mails, which currently reside among the “at-home”
tools but may also prove to be influential “on-the-go” or
• Personal shopping assistants: The idea of hand-held even “in-store.” Catapult’s respondents rated it highly
tools in stores probably has been directly supplanted by for both helpfulness
the concept of direct-to-phone communication. There and influence,
seems to be little need for shoppers to learn the use of suggesting that it
another system that basically functions like a closed-loop could be a catalyst for
smartphone. collaborative activity.
The paradox of Ahold’s Scan It! system is that it Text messages, the
represents the most finely targeted marketing vehicle “on-the-go” equivalent
currently available in stores: Kimberly-Clark’s Kleenex ran of e-mails (as well as the
a campaign that only delivered coupons to shoppers who digital communication
had scanned some canned soup (which, based on the favored by many
brand’s research, implies that someone has a cold). Yet it younger consumers),
operates on a device that won’t be needed much longer. also were viewed
(The chain already is working with supplier Modiv Media favorably. In addition,
to add mobile phone functionality, according to reports.) text-based marketing
provides two-way
Groupon
6c. STRATEGIES FOR CONNECTING opportunities, with
brands either sending offers
ON-THE-GO/ANYWHERE to consumers or running promotions that entice them to
It already should be clear send their own.
that the segmentation of As noted throughout this report, mobile apps can be
the path to purchase as a a great way for marketers to establish deeper, ongoing
three-place process – at- relationships with shoppers – provided that they deliver
home, on-the-go and in- true shopper solutions. Much of the current buzz over
store – is also becoming apps will likely disappear once their novelty has worn off.
obsolete due to mobile In theory, it might be necessary for most major
technology. retailers to create an app offering store locators, shopping
Some aspects may lists, coupons and other tools discussed in this report,
remain within specific because these tools might soon become standard
domains. Pre-trip requirements. Target and Best Buy are among the
research and planning retailers who already have upped the ante by including
probably will remain QR readers in their apps.
largely an at-home Walgreens’ new app offers most of the above, but
Tide Stain Brain app activity, for instance. also has two other notable functions: shoppers can order
However, it’s conceivable prescription refills on their phones and receive a text alert
that some future shoppers could be using their when the order is ready for pickup at the store they’ve
smartphones to download pre-programmed shopping designated; they also can e-mail photos taken on their
lists – with all related coupons and other discounts phones to be printed at the store and ready for purchase
21
Digital Shopper Marketing Roadmap

At-Home On-the-Go In-Store
Proven  Printable coupons  Mobile search  Self-checkout
Winners  Brand emails
 Search
 Ratings/reviews
 Online circulars
 Retailer website promos
Emerging  Co-branded emails  GPS locator  TV at shelf

Favorites  Printable shopping list  Mobile websites  In-store kiosks
 Shopping lists on phone  Hand-held scanners
 Mobile coupons  Touch screen digital signs
 Retailer apps  Walmart TV
 Brand text alerts
Early Bets  Coupons sent to  Brand apps

loyalty card
Fix/  Facebook  Image recognition sw  Text-to-win on-pack

Repurpose  Blogs  Location-based check-in  QR codes
 Twitter  Mobile coupons sent to
 Shopping widgets loyalty card
 Payment from cellphone
by the time they get there. the tactics reflect the change in consumer opinion about
Brands, on the other hand, shouldn’t necessarily them that occurred between Catapult’s 2009 and 2010
partake unless they have a simple, useful solution to surveys.
offer. Although it doesn’t have an overt sales-driving
mechanism (but does include a generic store locator),
Kraft’s iFood Assistant qualifies. So does P&G’s “Tide Stain
Brain,” which offers quick cleaning advice for 85 different 7. KEYS TO FUTURE SUCCESS
stains. With this new wave of digital tools, “We’re teaching
Kells, however, advises all product marketers to “go shoppers to be savvier,” says Cloutier. The comment can
through the exercise” of evaluating what app they might serve as both praise and warning for the packaged goods
create, because it can provide insight into how their industry.
brand fits into consumer lifestyles. “She’s got prices, she’s got barcode scanning, she’s got
Based on results from the survey and a broader everything right there at her disposal” while in the store,
evaluation of the marketing landscape, Catapult Google’s Roe says of today’s shopper. Brand marketers
categorizes these digital tools into the following four must react to this newfound empowerment, which to
types: this point largely has been provided by outside forces. For
“Proven Winners” already have high adoption levels instance, here are just a few apps that are changing the
and are viewed by shoppers as helpful and/or influential shopping dynamic:
in making purchase decisions.
“Emerging Favorites” have moderate usage levels • Groupon: A “collective bargaining” tool, it e-mails
and helpfulness/influence ratings, but shoppers express a daily deals to 11 million consumers worldwide. The deals
strong interest in them. only become valid if enough users agree to redeem them.
“Early Bets” have both low awareness and usage In July, Groupon introduced personalized deals in six U.S.
levels, but garnered strong future interest. In addition, markets.
current users rate them as helpful and/or influential.
“Fix or Repurpose” designates tools with low usage • Grocery IQ: It not only lets users create shopping lists
and little future interest, as well as low influence and/or (and get direct-to-card coupons), it also helps them order
helpfulness. the items based on the category layout of their favorite
The chart above classifies all the tools discussed in this store.
report into one of these four categories. Arrows following
22
• ShopSavvy: Users delivering solutions at the category or even store-wide level.
scan a product’s barcode
to instantly receive • Don’t focus on technology: Although they provide
comparative pricing and the mechanism for shopper communication, specific
inventory information, and technologies are relatively insignificant compared with
then can get directions their function: to directly influence decision-making.
to other nearby stores. Marketers first must develop the message and identify
They also can sign up for the audience, then select the best technology for
price updates on specific connecting the two.
products. The service
claims to have data on 20 • Develop relevant content: “The most important thing
million products. you can do is think about building your own assets,” says
Booz’s Egol. Kraft has been an early bellwether of shopper
ShopSavvy • Foursquare/Loopt: marketing thanks primarily to its vast recipe library, which
Ostensibly, “games” that it leverages in numerous ways for the benefit of both
let users track each other’s whereabouts, these location- shoppers and retailers.
based apps deliver rewards whenever users “check in” at
a retailer or other location. The 3.4 million users of Loopt • Target: One serious
get 25% off their next purchase when they check in twice drawback to shopper
at The Gap; foursquare’s 1.4 million “players” can earn $1 marketing in general is the
off Frappuccinos at Starbucks. logistical nightmare and
potential cost of tailoring
• CauseWorld: Kraft, P&G and Sears are among this communications to even
app’s sponsors, which lets consumers “do good deeds” the regional (let alone
by simply “walking into a store,” according to its iTunes store) level on a consistent
description. basis. But marketers can
leverage the digital tools
• Shopkick: Launched in mid-August, the app detects discussed in this report to
when smartphone users are approaching a particular fine-tune their messages
store and sends them targeted offers. A barcode scanner in an easier, more cost-
Shopkick
supplies additional offers and product information once effective way.
they’re inside. Best Buy and Macy’s were among the app’s Many marketers are viewing location-based
launch partners. communication as the Holy Grail. Technology will
Such tools are turning consumers into better- soon let retailers “market by the aisle,” Geoff Sherman,
informed shoppers who can more easily base their trip Walgreens director of pricing, promotion and trade fund
and purchase decisions on factors other than brand management, said at a recent conference. “That really
preference. The shopping revolution is already taking expands the concept of off-shelf merchandising.”
place – with or without the participation of product In July, Google introduced a program that lets retailers
marketers and retailers. place extended ads on Google Maps to reach mobile
To take full advantage of this new digital era, users searching for directions. In August, Best Buy was
marketers need to: expected to upgrade its mobile app to engage users as
they approach a store.
• Focus on insights: Consumers now have easy access
to far more information and tools than they have time • Commit the organization: Kellogg’s Cooke is the only
to utilize. The proverbial “clutter” that marketers have known CPG executive with “digital shopper marketing” in
sought to avoid for decades has reached epidemic his title. For the most part, digital marketers still operate
proportions: U.S consumers were exposed to 1.09 trillion like media planners, and rarely coordinate activity with
online display ads in first-quarter 2010, according to their shopper or customer marketing teams. Without
comScore. Developing programs that will resonate with a firm commitment within the organization, digital’s
today’s shoppers requires a deep understanding of their potential as a collaborative sales tool will not be realized.
needs and behaviors.
• Integrate activity: The concept of integrated
• Look beyond the brand: For packaged goods marketers, marketing has been kicking around the industry for
resonating with shoppers – and aligning with retail partners– nearly two decades, but it has never been as important,
will often require a brand-agnostic philosophy focused on because digital media makes it far too easy for consumers
23
to spot inconsistencies. For it to be effective, digital • Be ready to adapt: Marketers barely had time to
shopper marketing must be coordinated with the rest adapt their thinking to marketing via cellphones before
of the marketing plan – from advertising down through the smartphone came along. Now, each passing month
product distribution. delivers mobile apps delivering more powerful shopping
tools. Marketers will not keep pace unless they can
• Measure: Digital tools give marketers an react quickly to technological advancements and, more
unprecedented ability to measure consumer response importantly, the ways in which shoppers are utilizing
and, in tandem with point-of-sale systems, sales results. them.
Successful marketers will engage their research and “I can’t say the ROI is always apparent at this stage, but
analytics departments while designing programs (rather the media spend is small,” said Joe Jackman, acting chief
than after the fact) “to assure a higher level of confidence” marketing officer of drugstore chain Duane Reade at a
in the accuracy of results, Diamond advises. recent conference. “So the experimentation is just fine.”
“This space is constantly evolving,” says Cooke. “To
• Scrutinize partnerships: As the in-store TV be effective, you need to be nimble, adaptive and have a
marketplace has shown, not all technology partners hunger to learn. You must be willing to experiment with
are equal, and it’s likely that many of the digital service new and emerging technologies, and to take a few risks.”
companies emerging today won’t be in business The greatest risk, however, would be to hesitate
tomorrow. Some of 2010’s most popular websites and at a time when the marketing industry is entering a
social networks could quickly fade in popularity. All major new cycle of its own, one in which mass media
marketing agencies will claim to have digital shopper could become secondary to the targeted shopper
marketing expertise, but few have thus far truly become communications that digital tools can facilitate. 
experts in the practice. And, many retailers aren’t yet
capable of executing effective campaigns. Marketers
must pick their partners wisely.
Catapult is an action-biased marketing solutions agency focused on creative strategies that

inspire consumer action and drive trial, repeat purchase, and loyalty for its clients, which include
Reckitt Benckiser, Mars Petcare, Kellogg’s, Kraft, M&M Mars, Del Monte and Sara Lee. The agency
brings a deep understanding of the brand, consumer, and retailer to every assignment, and
considers retail insight and a genuine depth of shopper marketing knowledge as core differentiators. For more information, visit
www.catapultmarketing.com.
Google’s innovative search technologies connect millions of people around the world with information
every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top
web property in all major global markets. Google’s targeted advertising program provides businesses of all
sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with
offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.
The In-Store Marketing Institute is a global organization of brand marketers, retailers, agencies and
manufacturers focused on improving retail marketing strategy worldwide. The Institute serves the
needs of its membership by providing information, research, education and training, networking
opportunities, trade publications and a trade show designed to further the understanding, acceptance and effectiveness of in-store
marketing. For more information, go to www.instoremarketer.org.

Best Practices in Digital Shopper Marketing

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Best Practices in Digital Shopper Marketing

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How has technology changed consumer behavior?

How has technology changed consumer behavior?

What strategies are suggested for digital shopper marketing communication?

What strategies are suggested for digital shopper marketing communication?

INDUSTRY REPORT

TABLE OF CONTENTS 1. INTRODUCTION

A supplement to Shopper Marketing magazine

The Digital Path to Purchase

Consumer Demand Shopper Purchase/Retailer Sales Consumer Loyalty

In-Home On-the-Go In-Store

Source: Catapult Marketing, July 2010

3. KEY CONSUMER BEHAVIOR

• Save Me Time and Money. While always a factor, the

In addition to the savings aspect, this area also

• Surprise and Delight Me. Although they’re more

At-Home Technology Awareness Levels

Printable Web Coupons

At-Home Technology Interest Levels

% of People Who Have Used % of People Interested in Using

Printable Web Coupons 73% Promos on Retailer Websites 48%

Online Circulars 63% Online Circulars 48%

Promos on Retailer Websites 53% Printable Web Coupons 45%

Ratings/Reviews 62% Printable Shopping Lists 41%

Email/News from Brands 58% Co-Branded Emails 40%

Facebook 57% Ratings/Reviews 38%

Co-Branded Emails 40% Email/News from Brands 37%

Source: Catapult Marketing, July 2010

that Twitter’s relatively low

On-the-Go Technology Interest Levels

% of People Who Have Used % of People Interested in Using

Mobile Search 43% Mobile Search 23%

Scannable QR Codes 8% Scannable QR Codes 35%

Image Recognition Software 7% Image Recognition Software 25%

Source: Catapult Marketing, July 2010

In-Store Technology Awareness Levels

Payment from cell phone

On-pack promotions: text to win

TV in-store (at shelf )

Touchscreen digital signage

In general, shoppers are using at-home technologies The ‘In-Store’ Shopper

% of People Who Have Used % of People Interested in Using

Self-checkout 88% Self-checkout 34%

In-store kiosks 31% In-store kiosks 45%

Walmart TV 29% Walmart TV 37%

TV in-store (at shelf ) 29% TV in-store (at shelf ) 43%

Touchscreen digital signage 24% Touchscreen digital signage 45%

Handheld scanners* 39% Handheld scanners* 63%

*Ahold USA shoppers only Source: Catapult Marketing, July 2010

• Consumer promotion: Digital tools have been a great

The New York Times, General Food Sites

increasingly vital Source: comScore Inc., June 2010

Motivations for Visiting Retailer vs. Brand Sites

Compare product prices 53%

Look for coupons or deals 39%

Research products 35% Brand Site

Look for product reviews 34%

Participate in promos 21%

Suggest new product ideas 14%

Share new experiences 13%

Connect with other customers 13%