Marketing in the Digital Economy

REACHING AND RESONATING WITH CONSUMERS
11th June 2015
MARKETING IN THE
DIGITAL ECONOMY

Copyright©IITheNielsenCompany.Confidentialandproprietary.
2
DIGITAL IS REVOLUTIONIZING THE WAY PEOPLE
INTERACT AND SHOP
69% of GLOBAL consumers say face-to-face interactions are being replaced with electronic ones
Between 2015-2017 the GLOBAL e-commerce is expected to grow from $1.7 to $2.4 trillion
Source: Nielsen Global Digital Landscape Survey, Q3 2014 , http://www.emarketer.com/Article/Global-B2C-Ecommerce-Sales-Hit-15-Trillion-This-Year-Driven-by-Growth-Emerging-Markets/1010575
THEN
PRINT TELEVISION
OUTDOOR
RADIO
CINEMA
DIRECT MAIL
NOW
SOCIAL MEDIA
INSTANT
MESSAGING
EMAIL
GEO-
LOCATION
DATING
VIDEO
MUSIC
BARCODE
SCANNING
SHOPPING NFC
APPS
TEXT SMS

3
IN AFRICA, DIGITAL WILL LEAPFROG TRADITIONAL
100m Facebook users AND e-commerce to grow from $8 billion in 2013 to $50 billion in 2018*
80% access FB via mobile

4
NIGERIA IS AT THE FOREFRONT OF THIS TREND
143 m mobile and 83m internet subscribers
Source: Nielsen Emerging Market Survey 2011 and 2015, Internet and mobile users as at Feb 2015, .
http://www.ncc.gov.ng/index.php?option=com_content&view=article&id=68:industry-overview&catid=65:industry-information&Itemid=70
** http://africanheraldexpress.com/blog8/2015/01/07/e-commerce-to-redefine-the-retail-sector-in-2015-in-nigeria/
Social Media
13% 2011 → 24% 2015
Online Shopping
US$10bn estimated potential
25% pa growth
117
32
128
63
143
83
Mobile Subscribers Internet Subscribers
Feb '13 Feb '14 Feb '15

5
CONSEQUENCES FOR THE MARKET
CROSS PLATFORM Advertising
Building TRUST is Paramount
Deliver OMNI CHANNEL experiences
Focus on the YOUNG and AFFLUENT
Extend Digital to LOW INCOME Consumers

7
92% 93%
88%
29%
13%
98% 96%
88%
58%
24%
TV Mobile Radio Internet Social Media
Media Penetration
2011 2014
G r o w i n g i n Yo u n g a n d
A f f l u e n t c o n s u m e r
s e g m e n t s
TRADITIONAL BROADCAST DOMINATES, BUT ONLINE
AND MOBILE ARE WHERE THE GROWTH IS
Integrated campaigns have the potential to drive incremental reach, impact & returns for advertisers
Source: Nielsen Emerging Market Insights II, Base All Respondents = 1154

8
AWARENESS OF PLACEMENT LOCATIONS IS HIGH, BUT
CONTENT IS NOT DEPLOYED OR MEMORABLE
Source: Emerging Market Insights 2015, Base All Respondents = 1154
89%
74%
69%
50%
50%
46%
24%
51%
23%
11%
3%
3%
3%
3%
Outdoor
Broadcast
Print
Public Service
Mobile
Product Placement
Online
Advertising Penetration
Advertising mode awareness Most seen adverts

9
ADVERTISING HAS CONSIDERABLE INFLUENCE
Source: Nielsen Emerging Market Insights 2015, Base All Respondents = 1154
70%of Nigerians
will buy/prefer to buy
MORE than usual
19% Same
11% No Influence

10
GLOBALLY, BELIEVABILITY IS KEY IN AD EFFECTIVENESS
Source: Nielsen Global Trust in Advertising Survey
84%

TO WHAT EXTENT IS MOBILE ADVERTISING
TRUSTED?
62% 45%84%
45% OF CONSUMERS TRUST
DISPLAY ADS AND 37% TRUST
TEXT ADS ON MOBILE DEVICES

TRUST IN BRANDED WEBSITES
AND
CONSUMER OPINIONS POSTED ONLINE?
68%

MORE CONSUMERS TAKE ACTION FROM
ADVERTISING ON?
TV
68%
Branded Websites
67%
Search Engine Results
57%
Mobile Display Ads
49%
Social Networks
55%

FOCUS ON THE YOUNG AND AFFLUENT

15
THE DIGITAL CONSUMER DIVIDE
Spectrums of interaction
Source: Emerging Market Insights II, Base 1154 Respondents
Mid to low income
Educated to secondary school level
Basic mobile usage, cautious
BALANCED
SENIORS
18%
WANNABE
BACHELORS
9%
STRUGGLING
TRADITIONALS
7% FEMALE
CONSERVATIVES
8%
Young, students
Mobile, internet &
socially astute
EVOLVING JUNIORS
22%
Tertiary education
High income
Digitally savvy
TRENDY ASPIRANTS
29%
PROGRESSIVE
AFFLUENTS
7%

16
DIGITALLY SAVVY, MORE LIKELY TO SHOP ONLINE
Trendy Aspirants, Progressive Affluents and Evolving Juniors dominate Internet & social media usage and show
higher awareness of digital/mobile phone advertising
Source: Emerging Market Insights II, Base All Respondents
28% look for product reviews
19% look for social media offers
19% shop for best prices
5 8 % a c c e s s t h e I n t e r n e t
2/3rds via mobile phone
2 4 % a c c e s s S o c i a l M e d i a

17
EVEN THE DIGITALLY SAVVY ARE DIVERSE
Varying outlooks, media interaction, shopping and purchase drivers
Source: Emerging Market Insights II, Base All Respondents
TRENDY ASPIRANTS
29%
EVOLVING JUNIORS
22%

18
SUCCESS COMES FROM THE RIGHT MESSAGE
TARGETED AT THE RIGHT CONSUMER
Right Advertising
Theme
(Messaging)
Reaching the Right
Consumer
Cost Per
Impression
Cost Per Click
ConversionRevenue/
Transaction
Lifetime ValueContinual
Measuring and
Optimization
D i g i t a l Re c i p e fo r S u c c e s s

19
BUILDING LOYALTY BY ENGAGING CUSTOMERS ON
SOCIAL MEDIA - CASE STUDY
Social Media Engagement - Unilever
1. ENTER http://cupidgames.closeup.com.ng/play
2. SNAP photos & LOAD to Facebook, Instagram & YouTube. Tag
#cupidgames
3. 1st PRIZE: A powerbike for you and your crush, 2nd PRIZE: A pair of
Macbooks, 3rd PRIZE: A pair of iPads
Product Reviews - Dark & Lovely
1. Create an account on http://bit.ly/1vJHBFn
2. Rate & review the chosen product, share on
Facebook

ENGAGING THE LOWER INCOME CONSUMER

21
TRADITIONAL MEDIA & MOBILE ARE MORE POPULAR
Watching movies/drama/films on TV is popular. On radio, some consumer segments prefer content in local,
regional languages. On mobile basic services like text messaging are popular.
Source: Emerging Market Insights 2015, Those using the Internet n= 1154
8 % F E M A L E
C O N S E R V AT I V E S
TV RADIO MOBILE
98% 83%
100% 83%
93%94%
99% 86%
97%
98%
86%
99%
INTERNET
4%
9%
9%
3%
1 8 % B A L A N C E D S E N I O R S
9 % W A N N A B E B A C H E L O R S
7 % S T R U G G L I N G
T R A D I T I O N A L S

22
MISSED CALL CAMPAIGNS - CASE STUDY
Given the basic nature of mobile phones activities, leveraging “missed call” and “SMS” campaigns to heighten
brand awareness and recall.
Step 1
 Flash 07046440301 and Indomie will call you back
Step 2
 Introduce yourself and sing your composed Indomie song in 60
seconds
 Awards for the winners
Dufil Prima Foods “sing it 2 win it”
Unilever Nigeria
Step 1
Flash this number +18448432376
Step 2
 Answer the question sent to the mobile number to get rewarded

24
WHAT ARE SOME OF THE MAIN REASONS FOR NOT
BUYING ONLINE?
leverage global online retailers best practice
Source: Nielsen Emerging Market Insights - Reasons for not shopping online
Reasons for Not Buying Online
Internet payments are not safe
Internet purchases are complicated
Not aware of online shopping
Prefer to buy after touch & feel
Do not trust the website or product quality
Do not have a Credit/Debit Card
High shipping/delivery charges
How to convince the Nigerian consumer
• Register SSL certificate
• Place a 100% secure transaction sign
• Clearly define privacy policy
• User friendly website and mobile app
• Build awareness via TV and mobile advertising
• Customize e-mail discount offers
• Discount offers to credit card/debit card holders
• Offer the customers the option to Try before they Buy
• Clearly defined return policy
• Offer ‘Pay on Delivery’ Option
• Offer free shipping charges or collection points
• Establish warehousing in the regions which generate maximum
business

DELIVER OMNI-CHANNEL EXPERIENCES

26
IN A DIGITAL WORLD THE CUSTOMER PURCHASE CYCLE
IS NO LONGER LINEAR
CONSIDER RECOMMEND
RESEARCH
REPEAT
PURCHASE
AWARE PURCHASE
LOYAL
CUSTOMER
Globally, Retailers are adopting an omni-channel approach to improve customer experiences at
each stage of interaction
Source: Omni Channel Retailing Handbook for Offline Retails and Brands 2014, Microsoft

27
TECHNOLOGY CAN ENHANCE THE BRICKS & MORTAR
SHOPPING EXPERIENCE
Leverage location recognition
technology to guide customer
through the stores
To alert a retailer when a
customer arrives to collect his
order
Use social media and mobile
payment option

28
PICK N PAY SA OMNICHANNEL - CASE STUDY
*Source: Pick n Pay Annual Report 2014
Result:
• 27% growth in online customers*
• Online customers are aged 25 and 34 years
• Average basket size is 3X larger than store basket size
• Analysis of online sales trends helps P’n Pay develop specific programs to target consumer
segments
Situation: In Europe and US, sales of many retailers is declining as people are shopping online
Solution: Anticipating a similar situation, ‘Pick n Pay' SA developed a online store

30
3 WAYS TO WIN WITH DIGITAL IN NIGERIA
Tap in to the Urban, Young
and the Affluent
Cross channel
engagement & activation
Modern trade needs
Omnichannel
30

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