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Bergenfield & Associates Spring 2010 Overview
- 1. Digital Technology
Bergenfield & Associates Experts
Connecting Physical
World Results
Spring 2010
Who We Are:
Allan Bergenfield founded Bergenfield & Associates (BA) in 1985. Mr. Bergenfield has spent more than 40
years in the retail and consumer products business sectors and is a well-recognized industry expert.
BA provides three primary services to our clients/ business partners:
1) Marketing & Strategy Guidance, Planning & Consultancy,
2) Distribution Assistance & Strategic Partnerships, and
3) Business Development Guidance, Planning, Deployment & Consultancy.
BA’s core area of focus is identifying, developing, and deploying customized consumer facing digital
products/ solutions in connection to physical (i.e. retail) locations.
BA’s is an actively involved in the following business sectors:
Technology (early stage and large companies),
Retail (mostly large retailers),
Gaming & Hospitality,
Wireless, Stored Value & Reloadable Debit
Inside the Four Walls of the Enterprise (digital signage (marketing/ merchandising)),
Consumer Products, and
Online Adult Education (Board Role).
Prior to founding BA, Allan Bergenfield spent more than 40 years in the consumer product industry as a
Senior Executive for several companies.
Management Team Bios:
http://www.linkedin.com/in/lawrencebergenfield
http://www.linkedin.com/in/allanbergenfield
http://www.linkedin.com/in/jsuprock
Commercial in confidence. Copyright © 2010 Bergenfield & Associates, Inc. All rights reserved
1.
- 2. Areas of Focus:
Digital Bridges into a Physical World
Today, more than ever, consumers are reading fewer newspapers than ever before, all while, the price to
advertise in these very same media sources continue to rise.
This is well evidenced by the fact that this year, more money will be spent in the United States on Digital
BA has attracted Advertising than Print Advertising ($119.6 billion versus $111.5 billion) *
considerable notoriety * Source: Research firm Outsell
http://digitalcpg.com/2010/03/digital-ad-spending-to-pass-up-print/
having recently
completed a high Moreover, the average United States consumer spends 12 hours per week online, which represents about
profile two-year 32% of their media time. However, Digital Advertising makes up only 13.6% percent of advertising spend
retention by a large in the United States. **
technology company in ** Source: Susan Wojcicki, Google’s vice president of public policy and communications
which BA had created,
In parallel, BA recognizes the fact that most of the largest physically located business operators (retailers)
developed and
have an enormous annual marketing & advertising cost with print advertising. BA believes this represents
conceptualized an
a massive opportunity when one also considers the ‘time-starved’ consumer shift of how, when and where
entirely new managed
they are choosing to consume content today.
service business model
and go to market The fact remains these very same large national business operators (retailers) experience an annual cost
strategy for a Digital ranging between $200m and $750m for the print costs associated with the “Sunday Insert” alone
Loyalty point solution (depending on the size and footprint of the operator).
within a broader
mobile-2-enterprise Clicks-2-Bricks
platform.
BA is actively engaged and is presently achieving highly successful results with ‘clicks-2-bricks’ consumer
BA had also created focused digital solution deployments. These solutions are delivering returns on investments that have
and developed the proven to:
long-term strategic
Decrease customer acquisition costs, while;
road map including
multiple point Increasing Basket Sizes/ Spends and Unique Store Visits, while;
solutions, and Driving Measurable In-Store Sales for the Business Operators.
platform While e-commerce continues to grow at double-digit percentages, consumer product packaged goods
interconnectivities; today only account for 4% of all e-commerce revenue. Accordingly, the average woman between 18-45
which focused on near years of age goes online to research, learn, and hunt 90% of the time she makes a purchase. Of that 90%,
term strategic and 93% will go into a physical establishment/ location to make the actual purchase. *
tactical benefits like * SOURCE: BIG Research
market share and
This very same demographic also represents 80% of the household purchasing power in the United States
evolutionary corporate
and is the largest demographic of social media giant Facebook. These individuals are socially viral, always
positions connecting
connected, and seek value. They spend an average of 7 and one half hours a month on Facebook alone
the four walls of the
(more than 3 x the time of Google) and check their account status multiple times a day. **
enterprise to and
**Nielsen, March 2010.
within the four walls
of the home. All
elements connected by Mobile
the consumer’s mobile There are 267 million people in the United States using a mobile phone. In this year alone, smart phone
device representing sales have increased by 193% and by 2014, 735 million mobile internet-connected devices are predicted to
the glue between the ship, up from 262.7M in '09 *
solutions/ platforms. * SOURCE: Juniper Research
Mobile Phones have gone from a device that makes and receives calls to…
Sending and receiving emails;
To send and receive text messages;
To playing music and entertainment;
To and through the consumer adoption of applications;
The remote control to our lives; and
Enabling speed, presence, localization and inevitably, convergence and real-time predictive analytics.
Commercial in confidence. Copyright © 2010 Bergenfield & Associates, Inc. All rights reserved
2.
- 3. Food Chain Theory Moreover, analysts predict by 2012, 40% of Internet access will be generated via mobile devices and by
looks at the value 2014, $14b is the expected in m-commerce revenue. This number is up from $4.1 billion in 2009,
chain members and representing average annual growth over the forecast period of nearly 24%. *
asks the ‘transparently * SOURCE: eBay-commissioned survey conducted by ACNielsen, April 2010
obvious’ question… Mobile Applications are today’s version of a yesteryear’s billboard or web site. That is why close to 65% of
‘Are eyeballs, click or marketers and publishers plan to invest in mobile apps this year alone *. Apple now expects 3b app
view through rates, downloads by the end of next year and analysts predict that combined Mobile Apps download will hit 50b
and time spent more by 2012 **
important than
* SOURCE: eMarketer, March 2010 **SOURCE: GetJar, March 2010
measureable outcomes
or purchases at the Sales from mobile applications are expected to reach $1.6 billion this year, up from its previous estimate of
electronic point of $537 million. The company expects app sales to reach a "whopping" $11 billion by 2014. *
sale?’ * SOURCE: Yankee Group
Many of the large Mobile Applications in connection to new and or existing inside the four walls hardware and software
physically located positions represent ‘new, vacant, ocean side property on white sandy beaches’ that will open the
businesses operators opportunity to create new soft/ hardware solutions and entirely new revenue opportunities/ business
(i.e. retailers) are also models.
the largest buyers of
The solutions clearly provide the business operator a means to deploy programs that offer a measurable
their vendor’s
return on investment while enabling the technology solutions to be paid for by participation of the retailer(s)
products and services.
vendor community. Vendors too have an equally compelling ‘added value’ in marketing and remarketing
These same vendors directly to and where the consumer is choosing to consume content today.
also happen to have
some of the largest BA has attracted considerable notoriety having recently completed a high profile two-year retention by a
global digital large technology company in which BA had created, developed and conceptualized an entirely new
advertising budgets. Is managed service business model and go to market strategy for a Digital Loyalty point solution within a
it more important for broader mobile-2-enterprise platform.
a major brand to BA had also created and developed the long-term strategic road map including multiple point solutions, and
advertise on a search platform interconnectivities; which focused on near term strategic and tactical benefits like market share
engine or through a and evolutionary corporate positions connecting the four walls of the enterprise to and within the four walls
Retailers Digital of the home. All elements connected by the consumer’s mobile device representing the glue between the
Solution (where the solutions/ platforms.
retailer is one of the
Brands’ top five global At present, BA has gained considerable early success at bringing consumer facing digital solutions to
outlets) that could market and collaborating with the retailers in creating revenue neutral and positive business models/
enable measurability programs, that the vendor community pays for as a new contractual form of cooperative advertising.
at the point of sale
and more effective Food Chain Theory
remarketing In 2008, Lawrence Bergenfield created and published (Digital) Food Chain Theory (FCT). FCT questions
thereafter? and follows the financial motivations of the value chain members, their order of importance, and the
Bergenfield states ‘the perceived benefits to the value they provide regarding Digital Advertising.
future will illustrate FCT analyzes the ‘playing field’ changes/ shifts that are happening and will continue to happen. With that,
that Physical World it also questions the accuracy to the value (and potentially, valuations) of the search engine giants and or
Business Operators will any company that has significant share of its revenue derived from digital advertising.
use their purchasing
power to exploit these FCT considers today’s digital advertising benefits and guiding metrics and asks a simple rhetorical question
very same digital to prospective advertisers. “What would you prefer… spending money on View/Click Through Rates, Time
advertising budgets.’ Spent, Banner Ads, and buying Search Words or using the same digital dollars and capturing outcomes at
the point of consumption (electronic point of sale)?”
The choice is clear:
Digital Advertising FCT goes on to ask… “If you were a large brand, would you spend your marketing and advertising budget
Dollars captured/ on… eyeballs or outcomes?”
measured at the point FCT points out the flaws of today’s focus on ‘Push’ (one-way communications) advertisements; but,
of outcome/ electronic concludes Business Operators (Retailers) Deployment of consumer facing closed-loop ‘opt in’ solutions are
point of sale OR the key to true ‘Push/ Pull’ dialogue that optimizes customer acquisitions, measurements, registrations,
continue with indexing/ segmenting, and remarketing (enabling ‘predictive analytics’).
yesteryears push style
advertisements via Moreover, these very same Operators (Retailers) have the clear ability to measure the very same Digital
Search Engines?’ Advertising expenditures at the point of consumption/ point of purchase. “This is the game-changing
paradigm (‘food chain’) shift”, Bergenfield states.
Commercial in confidence. Copyright © 2010 Bergenfield & Associates, Inc. All rights reserved
3.
- 4. References: Strategy
James Mastrian- Our strategy in working with our clients is to listen, learn, and survey. Through this process and the
former Chief Operating Officer accumulated feedback, it enables us to provide substantive feedback and recommendations that tactically
of Rite Aid focus on program adjacencies that enable a sustainable path/ road map for future growth.
Mobile: 440-725-5786 At each step along the way, BA is focused on customized cross-channel metrics that help to improve
jimmastrian@yahoo.com significantly interdepartmental communications and system operability.
Robert Kwait- BA helps bridge the digital gap between what is possible and what is practicable – from where you are now
former Senior Executive of to where you want to be. BA has a vast breadth of first hand retail experience - we are 'retailers talking to
CVS Stores retailers'. Everything we do is in a retail context and based on experience.
Office: 216-831-5010 Our customers include both retailers and major retail systems supply corporations. We are retail systems
skrkwait@aol.com experts who can help your business understand and face head-on the changing landscape of the retail
marketplace.
Benson Riseman-
Founder, Green Dot Corp. Some of our partners and capabilities include:
Mobile: 310-433-6529 Mobile Application Development – Major Smart Phone Operating Systems such as:
briseman@greendotcorp.com iPhone, Android, Blackberry, Windows, Java, and Palm; covering + 80% of the phones operational in
the marketplace.
Additional Information can be Designed Solutions include Digital Loyalty Management, Shopping List Management, and Video
found at: Rewards Mobile Applications.
http://www.foodchaintheory.com Digital/Mobile/Retail Integration – Goods arrive in the back of the store, are inventoried, and stocked;
http://www.articlesbase.com/cell-
descriptions and offers are posted, advertised, and integrated into the Web-store, the web presence, loyalty
phones-articles/digital-food-chain- program, and mobile application. The customer engages in the store, on the web, or through their phone
theory-digital-bridges-into-a-physical- and enjoys a seamless experience. The retailer can manage the system from the time it arrives until it
world-1858930.html exits. Components Include:
Intelligent barcodes to eliminate fraud and control redemption;
Additional References can be 2D barcodes for visual search and in-store information;
found on Recommendations
tab at: Kiosks and price check terminals; and
http://www.linkedin.com/in/lawrenceber
genfield Digital Signage.
or additional can be furnished Video Values/ Rewards – more efficiently acquire, register, measure and index customers who earn
upon request. rewards for watching video while driving in-store sales;
Hyperlocalization – offers on contingent on stock-on-hand and driven by backroom operations; and
Imaging Scanner integration – new applications beyond UPC barcodes.
Bergenfield & Associates, Inc.
Lawrence Bergenfield
+1.240.447.7781
lbergenfield@mac.com
Commercial in confidence. Copyright © 2010 Bergenfield & Associates, Inc. All rights reserved
4.