Digital media encompasses all forms of communication that are delivered using a binary electronic format, utilising technology such as computers, mobile devices and tablets. The digital media landscape ranges from text messages, e-mail and social media to internet websites, smartphone applications – and more. Internet connected devices form the backbone of many forms of digital media, and underpin the huge growth in electronic and mobile commerce, and social media. The advent of digital media and digital marketing can now help facilitate a greater number of touch points with the consumer in shopper mode, making the concept of the path to purchase extending beyond the store environment of even greater importance. Digital marketing introduces the opportunity for FMCGs and retailers to more readily communicate with consumers as shoppers both before, during and after their visit to the supermarket. This report will: -Look at digital marketing strategies currently in use -Show current levels of smartphone ownership -Look at the different types of delivery in digital marketing, and see which shoppers prefer -Look in-depth at a variety of initiatives used on smartphones. Specifically looking at: online shopping, shopping lists, detailed product information, price comparison, recipes, digital vouchers, managing loyalty points, healthy eating and improving the in-store experience -Find out the awareness, usage and appeal of each of the above, and methods of delivery preferred -Find out the level of ownership and usage of various grocery apps -Briefly look at how shoppers interact with social media and what they think of NFC in grocery

1. Evolution Insights: Shopper Insight Series
Digital Mobile Marketing
in UK Food & Grocery
2012 – SAMPLE EXTRACT
Essential Shopper Insight into
the use of Digital Mobile
Media & Mobile Commerce
Evolution Insights Ltd
Prospect House
32 Sovereign Street
Leeds
LS1 4BJ
Tel: 0113 389 1038
http://www.evolution-insights.com
www.evolution-insights.com 1

2. Disclaimer
Please note
No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise,
without the prior written consent of Evolution Insights Ltd.
The content of this report is based on information gathered in
good faith from both primary and secondary sources and is
believed to be correct at the time of publication. Evolution
Insights can however provide no guarantee regarding the
accuracy of this content and therefore accepts no liability
whatsoever for any actions taken that subsequently prove
incorrect.
© Evolution Insights Ltd 2012
www.evolution-insights.com 2

3. About Evolution Insights
Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke
research for manufacturers, retailers and agencies.
Our research and analysis helps • Evolution offer a range of products & services for
clients develop targeted shopper clients in the field of shopper research:-
marketing initiatives designed to
• Off-the-shelf research
influence shoppers at the point of
purchase. – Evolution’s off the shelf research
publications deliver affordable insight
into shopper motivation and
behaviours in UK food, drink and
grocery
• Insight Plus
– Insight Plus offers your business the
opportunity to engage in any of our
We use a range of research regular shopper research projects in
advance of publication, tailoring the
methodologies to discover genuine scope to suit your needs
insights. Our research incorporates
a broad spectrum of robust • Bespoke Consulting
qualitative and quantitative
research techniques. – As publishers of research, we are able
to draw upon a wealth of existing
proprietary data for consulting projects
As a leading publisher of shopper – helping to better inform and shape
research, we are ideally placed to any further research requirements.
offer your business actionable
shopper insight.
Further information is available at our
website http://www.evolution-
insights.com
Visit and sign up for Reflections, our free
quarterly newsletter offering analysis and
commentary on topical issues
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4. Contents
Key Findings and Summary 6 Push Vs. Pull 37
When Shoppers Prefer to Receive Marketing Messages 38
Digital Mobile Marketing: Introduction 11 Summary 39
Introduction 12
Path to Purchase 13 Price Comparison 40
Benefits 14 Introduction 41
M-Commerce 15 Technology Usage 42
Current Statistics 16 Using a Smartphone – Awareness & Usage of Initiative 43
Shopper Marketing Initiatives 17 Using a Smartphone – Appeal 44
Methods of Reach 18 Push Vs. Pull 45
When Shoppers Prefer to Receive Marketing Messages 46
Digital Technology at a Glance 19 Summary 47
Introduction 20
PC/Laptop Ownership & Usage 21 Recipe Ideas 48
Tablet Ownership & Usage 22 Introduction 49
Ownership of Smartphones – Year-on-year Change 23 Technology Usage 50
Ownership of Smartphones - Demographics 24 Using a Smartphone – Awareness & Usage of Initiative 51
Smartphone Usage 25 Push Vs. Pull 52
Marketing Relevance 26 When Shoppers Prefer to Receive Marketing Messages 53
Location-Based Marketing 27 Summary 54
SMS and Email 28
Method of Receiving Marketing Messages 29 Digital Vouchers & Coupons 55
Summary 30 Introduction 56
In Action 57
Digital Marketing Initiatives Technology Usage 59
Online Shopping 31 Using a Smartphone – Awareness & Usage of Initiative 60
Introduction 32 Using a Smartphone – Appeal 61
Technology Usage 33 Push Vs. Pull 62
Using a Smartphone – Awareness & Usage of Initiative 34 When Shoppers Prefer to Receive Marketing Messages 63
Using a Smartphone – Appeal 36 Summary 64
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5. Contents
Product Information 65 Summary 93
Introduction 66
Technology Usage 67 In-store Experience 94
Using a Smartphone – Awareness & Usage of Initiative 68 Introduction 95
Using a Smartphone – Appeal 69 In Action 96
Push Vs. Pull 70 Using a Smartphone – Awareness & Usage of Initiative 97
When Shoppers Prefer to Receive Marketing Messages 71 Using a Smartphone – Appeal 99
Summary 72 Summary 100
Loyalty Points 73 Mobile Apps 101
Introduction 74 Introduction 102
Technology Usage 75 In Action 103
Using a Smartphone – Awareness & Usage of Initiative 76 Current Retailer Apps 104
Using a Smartphone – Appeal 78 Ownership & Usage 105
Push Vs. Pull 79 Summary 112
When Shoppers Prefer to Receive Marketing Messages 80
Summary 81 NFC 113
Introduction 114
Shopping Lists 82 The Future of Mobile Advertising 115
Introduction 83 Awareness & Usage 116
Technology Usage 84 Uses in Food & Grocery 117
Using a Smartphone – Awareness & Usage of Initiative 85 Summary 118
Using a Smartphone – Appeal 86
Summary 87 Social Media 119
Introduction 120
Healthy Eating 88 In action 121
Introduction 89 Interaction with Retailers 123
Technology Usage 90 Benefits of Interaction with Retailers 124
Push Vs. Pull 91 Summary 125
When Shoppers Prefer to Receive Marketing Messages 92
Methodology 126
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6. This Report…
All the information in this report relates to main Food & Grocery
shoppers who own a smartphone.
Please note…
All of the information provided is in relation to
primary household food & grocery shoppers who
own smartphones!!
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7. Digital Mobile Marketing: Introduction
Although we will touch on other forms of digital marketing, the majority of this report will focus on mobile marketing
(i.e. the use of smartphones).
Smartphone
Digital media encompasses all forms of communication
apps can
offer that are delivered using a binary electronic format,
shoppers utilising technology such as computers, mobile devices
the latest and screens. Digital media lies in contrast to traditional
personalised forms of mass media such as analogue radio and
coupons, television, print (newspapers and magazines), signs and
offers and
banners.
points
rewards
The digital media landscape ranges from text messages,
Smartphones bring digital based on
their e-mail and social media to internet websites,
media such as e-mail,
websites and apps to mobile shopping smartphone applications – and more. Internet
devices habits and connected devices form the backbone of many forms of
location digital media, and underpin the huge growth in
electronic and mobile commerce, and social media in
recent years.
Digital marketing in food and grocery is quite simply the
E-mail remains
marketing of brands and retailers to consumers using
one of the most
popular forms digital media channels. Importantly - digital marketing
of digital media shares all the same characteristics as traditional
for push marketing. It is just marketing delivered using digital
marketing channels and should not be considered in isolation from
traditional marketing.
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8. Digital Mobile Marketing: Benefits
Shopper marketing Engage more There are strong opportunities
traditionally focuses on directly with for digital shopper marketing
marketing actually in the consumers as in food & grocery. E-mail, SMS,
retail environment. shoppers websites and smartphone
Initiatives seek to target Influence outside the applications can enable
shopping list store Reach
the consumer in shopper targeted, personalised
and basket shoppers who
mode while they are in before the use traditional marketing messages reach the
the store, and are shopper enters media less grocery consumer in shopper
designed to influence the store mode, both inside and outside
their decision making of the supermarket.
process up to the point of
purchase.
Drive brand
Improve
consideration
shopper
and loyalty
involvement
and use of Benefits through
targeted
loyalty
vouchers and
schemes
offers
Improve Capture
response rate shopper
and ability to preferences & Moreover, since digital
measure return habits via opt shopper marketing allows for
on investment Break down in schemes improved targeting of
the ‘marketing
is intrusive’ shoppers, the results - and
barrier with ultimately the return on
improved investment - are often easier
personalisation to measure.
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9. Digital Marketing: PC/Laptop Ownership & Usage
It is interesting to understand the ownership and usage of other types of technology. Here we can see that the vast
majority of smartphone owners also have a computer at home.
Ownership and usage of PC/Laptop by
smartphone owners:
Use regularly for an
increasing number
of tasks
Use frequently
15
77 Only use for basic
4 tasks
2
2
Don’t own and not
Only 4% of considering
smartphone owners 4%
don’t own a Don’t own but
PC/Laptop would like
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10. Digital Marketing: Ownership of Smartphones – Year-on-year Change
Smartphone ownership is seeing a steep increase year-on-year. We expect this trend to continue as tariffs become
cheaper and contracts come up for renewal.
Smartphone ownership: Year-on-year changes
60%* of
47% of
shoppers
37% of shoppers own a
shoppers own a smart-
own a smart- phone
smart- phone
phone
2010 2011 2012
*who are primary food & grocery shoppers
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11. Recipe Ideas: Push Vs. Pull
Smartphone have all kinds of uses for cooking – recipe ideas, timers, ingredient lists, share ideas, cooking instructions,
sharing photos, etc.
Push refers to
Pull refers to shoppers
information being
actively seeking out
delivered to a
information on their
Smartphone without
smartphone, through a
request from the
marketing channel.
shopper.
PUSH PULL
21% - Push 40% -
Pull
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12. Mobile Apps: Ownership & Usage
Here we can see the ownership and usage of the Ocado shopping app amongst smartphone owners.
29% Frequently
37% Occasionally
Have app 17%
15% Rarely
Don’t have app 83% 20% Never
Ownership Usage
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13. Social Media: In action
The proportion of the UK population to have a Facebook account is reaching 50%, with the highest user group being the
25-34 year olds. Twitter users aren't far behind with an explosion up to 26 million in the UK, up from 12 million last year.
Social media is having an ever increasing
Facebook fans: (million) influence on how people shop, leading
to the rise of the ‘social shopper’
(social media guided shoppers).
51
78% expect Currently, a quarter of all FMCG
brands to have purchases are made with the influence
an active Spent over $1bn on of social media, and is set to rise.
Twitter feed digital promotion
9
Recent studies have found that ‘social
shoppers’ spend on average 27% more
than those without digital mobile
devices. Retailers and FMCG’s are racing
37% of shoppers to up their social media game with an
access a stores ever increasing portion of their
social media site advertising budgets being spent on
41% of digital channels, with a bid to strengthen
shoppers shoppers connection with their brand.
expect to
Social media is used to gain a multitude
receive
of information from what people this of
special
you/your product, trends shoppers are
76% rely on recommendations offers in
interested in, and general attitudes and
from friends when making return for
opinions.
purchases compared to 15% who following a
rely on advertising brand on
Facebook
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14. Methodology
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15. Methodology
Evolution carried out a preliminary survey of
Evolution’s methodology 100 shoppers , to test questions for the main
survey.
Detailed secondary and desk research was
conducted to define the digital shopper
Secondary and desk Preliminary marketing landscape, macro drivers and
research quantitative survey trends, scope and examples of initiatives to
date.
Initial insights gained were used to help
further design the main survey.
The main survey was completed by 1,044 UK
adults who said they regularly shop for food
Main quantitative & grocery and own a smartphone.
Focus groups
survey
Comprehensive and detailed assessment of
all the data received was then used to
discover insights.
Throughout this process, primary research
was supported by secondary research
drawing on Evolution’s proprietary
Insights databases, national statistics, news and
industry resources.
Evolution’s consultants also maintain close
relationships with industry figures across
retailers and manufacturers.
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16. Methodology: quantitative survey
Topics of questions in quantitative survey
Detailed shopper insights were gained from
Demographic profiling
a survey of 1,044 UK adults who say they
regularly shop for food and grocery and own
a smartphone. The samples were fully
Ownership and usage of technology representative of the UK population.
The survey contained 35 questions relating
to technology ownership and usage;
Main supermarket retailer used for grocery shopping awareness, usage & appeal of digital
shopper marketing initiatives, and methods
of reach – in addition to standard
demographic profiling questions.
Awareness, usage and appeal of a variety of different digital shopper marketing
initiatives in food and grocery The questions were designed to give
maximum insight into shoppers perspective
on their awareness, usage and appeal of
Perspectives on preferred location and timing digital shopper marketing initiatives in food
and grocery.
The survey was carried out online during
General perspective on the use of digital media for food & grocery marketing October 2012.
Themes including personalisation, disclosure of information, push versus pull
marketing and location based marketing
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17. Glossary
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18. Glossary
3G – Third generation mobile phone network capable of improved data connectivity On-the-go – Buying any food and/or drink for immediate consumption, i.e. outside the
2G – Second generation (GSM) mobile phone network technology home
ABC1C2DE – Socio demographic profile using job type (if applicable). Personalisation – Targeting of marketing campaigns to individuals based upon
Above the line (ATL) – Advertising using the main 5 media types of television, press, detailed information about their demographic and shopping habits
radio, cinema, and posters to promote brands. POP – Point of purchase
App – A smartphone application POS – Point of sale
AR – Augmented reality POS Material– Marketing communications at the point of sale.
Below the line (BTL) – Advertising using non-media communication. Typically sales Push delivery – delivery where content is sent to the recipient without their
promotions as short-term incentives, largely aimed at consumers in-store. interaction at the time of delivery
Big Four – The largest four grocer retailers in the UK by market share. Pull delivery – delivery where content is requested by the recipient reactively.
Category driver – key influences driving the growth of any given category QR code – Quick response code (new form of 2D barcode that carries more
Channel – Retail distribution type for example supermarket, c-store, CTN information)
Circumstances – The circumstances of the shopper when they undertake their shop Revenue – Total reported turnover (excluding VAT).
Demographic – Characteristics of the population (including sex, race, age and ROI – Return on investment
income). Shopper marketing – Any marketing activity aimed at the shopper throughout their
Digital media – digital marketing medium for example social media, mobile, digital path to purchase.
signage. Shopper mission – the reason/purpose of the shopping trip from the shopper’s
Digital shopper marketing – Shopper marketing that utilises digital media perspective.
DSM – Digital shopper marketing Smartphone – An internet enabled mobile phone device that runs applications
EAN – European Article Number (barcode standard) (‘apps’).
E-commerce - buying and selling of products or services over electronic systems such SMS – Short message service (mobile text messaging)
as the Internet and other computer networks Socio-demographic - Characteristics of the population (including sex, race, age and
ePOS – electronic point of sale system, e.g. checkout technology income).
EDLP – Everyday low prices. Social network – electronic social interaction platform for example Facebook, Twitter
FMCG – Fast moving consumer goods, often used to refer to a manufacturer. URL – Uniform resource locator (web standard for internet website addressing)
Food and grocery - Foodstuffs and various household supplies
Gondola end - The promotional position at the end of a main aisle.
GPS – global positioning system (technology incorporated into mobile devices for
geographic location identification and tracking)
Impulse – A sudden wish or urge that prompts an unplanned act or feeling.
Location based delivery – delivery of marketing to mobile devices based upon GPS
location
M-commerce - buying and selling of products or services over mobile electronic
systems such as the smartphones
Microsite – Internet website dedicated to a particular brand, using a different
(branded) URL
Modality – The way a shopper behaves in-store
NFC – Near-field Communication
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19. Contact us
Evolution Insights Ltd
Prospect House
32 Sovereign Street
Leeds
LS1 4BJ
Telephone: 0113 336 6035
e-mail: enquiries@evolution-insights.com
Web: http://www.evolution-insights.com
Company No. 07006001
Country of Incorporation: United Kingdom
© Evolution Insights Ltd. All rights reserved 19