An in-depth analysis on how FMCG should approach and implement mobile strategy. Mobile landscape analysis, scope, case studies

1. Mobile Strategy for FMCG
George Achillias MBA

2. But it becomes obvious that there are great key
opportunities in mobile for FMCG
2
According to a 2013 Deloitte study, the conversion rate in the store for
shoppers who use a retailer’s dedicated app is 21% higher than those
who do not.
• $12,8 billion was spent via mobile payments
in the US in 2012
• $90 billion will be spent via mobile payments
in the US in 2017
• In 2016 an estimated $689 billion will be
influenced/driven by mobile retail

4. 4

6. MOBILE
LANDSCAPE

7. me[/mi:/] a.k.a mobile everywhere is a strategy to embrace
mobility and align peoples’ context with business goals and
desired outcomes

8. me has changed the landscape

9. me has reshaped our priorities & our human interactions
9

10. me is defined by human behavior & context
10
Lean In Lean Back Engagement

11. me has neither physical nor time boundaries
11

12. me is #1 at all the moments of that day that matter
12

13. me, means that people instead of switching off during
their personal time they get connected
13

14. me unlocks the next generation of consumers
14
Mobile is the only way to reach the next billion
middle class consumers from the emerging
markets as it is by far the primary device...
By 2050, the developing world will account of two thirds of the global middle class consumption.
Source: Jana Mobile, overview of distribution of global middle class consumption
In developed markets, mobile enables marketers to
reach the rising mobile first generation that can no
longer be engaged via traditional digital channels

15. me time is mostly spent on apps and on personal content
15
Apps continue to dominate the mobile
web
68% of time is spent in personal
apps

16. me directly drives massive retail - multi billion $ game
16
Global mobile payment transaction value
($bn, 2012-2015) > 300$
average annual mobile purchase
spend per capita ($100bn+ mkt)
Use a smartphone to help with shopping

17. me-influenced offline retail sales skyrocketing
17
Mobile-influenced sales vs. e-Commerce sales (in $ billions)

18. me, in shopping means to be always
18
If your content doesn’t exist on the mobile
screen, it doesn’t exist at all.
- Karen McGrane

19. At the same time, explosion of web-enabled devices
means mobile is a material share of total

20. Mobile only internet users are a huge population,
as devices advance they will dramatically drive
usage volume

21. and regional variance evident, very clear ‘headroom’
for access diversification

22. In the World’s largest (internet) market …

23. “Mobile is a lot closer to TV than it is to
desktop” Zuck

24. me is central to customer relationships
& transactions

25. Content sharing is most active in emerged /
fast emerging markets

26. BUILDING THE STRATEGY

27. Building a comprehensive mobile strategy …
One size does not fit all!
Loyalty
Awareness
Transaction Engagement
Objectives & tactics will differ, but
we can define guiding principles

28. We need to have a holistic approach
28

29. And we have to re-engineer our approach to
mobile and make peoples’ mobile moments
29
• Create value in your brand through the utility you provide
• Embrace mobile moments to serve empowered customers
• Service-enable your products through mobile moments
Use mobile moments to turn processes into tasks
• Empower employees with information in mobile moments
• Power mobile moments with systems of engagement

30. Mobile strategy guiding principles
30
Follow the consumer
Meet their expectations
Demonstrate relevance
Exploit functionality

31. Mobile strategy guiding principles
31
Follow the consumer, meet their expectations, demonstrate relevance,
exploit functionality:
Start with ‘free’ owned & earned environments
“Devices of all shapes, sizes, and capabilities are flooding the market, and users expect to get your content on all
of them.”
Sara Wachter-Boettcher :: Content Everywhere
45% of Fortune 500 firms lack mobile optimised website
IAB US, August 2012
“61% of customers who visit a mobile unfriendly site will go to a competitors site”
Karim Temsamani, Google :: IABALM 2012
eCRM to mCRM: “44% of email is now opened on a mobile device.”
Litmus :: “Email Analytics”, June 2013

32. ‘Responsive design’ frameworks support complex
layouts across multiple-devices with defined ‘block’
hierarchy
32

33. Mobile strategy guiding principles
33
Follow the consumer, meet their expectations, demonstrate relevance,
exploit functionality:
Extend ‘always on’, ‘activation’ & key campaign initiatives cross-platform
By 2016, the majority of global search queries will come from mobile devices.
Carlos Kirjner :: Alliance Bernstein, Feb ’12
77% of mobile searches are while at home or work (US)
28% result in a conversion (store visit / call / purchase) (US)
Google :: Mobile Search Moments, q4 ‘12 fieldwork
Device-shift TV inventory remains limited, significant video now via mobile
86% of US mobile internet users ‘companion browse’ while watching TV
Aaaa SOURCE
40% of global YouTube traffic is to mobile devices
Larry Page :: Q3 Earnings Call, Oct ‘13

34. Mobile strategy guiding principles
Follow the consumer, meet their expectations, demonstrate
relevance, exploit functionality:
Exploit location data & / or data-driven segmentation techniques to
increase relevance to consumers
34
3 targeting approaches to augment campaign strategy:
– Current & habitual location / proximity data based on IP block / ‘lat long’ data
– ‘Audience’ inferences informed by device ‘finger-printing’ & / or observed content / app utilisation
– Contextual or personal affinity based inventory prioritisation

35. Mobile requires dedicated measurement solutions
App utilisation & iPhone default to Safari render cookies irrelevant
Tracking users multiple apps, mobile web, across sessions immensely difficult … before consider non
mobile touchpoints / conversion
Ideally institute attribution modelling to understand contribution from the halo of brand activity &
assets
Essential to deploy a specialist mobile adserver for tracking & visibility reports:
35

36. Mobile check list …
36
WEB
What happens when
someone searches for
you on their mobile?
Can they find you?
Mobile SEO or Mobile
PPC?
Mobile site? Does the
brand’s website work on
mobile devices? Does it
give a good customer
experience?
SOCIAL
What happens when
someone visits your
brand pages in social
media?
Have you checked that
your content works on
Mobile within Facebook?
Do they click through
to a mobile site?
Do you need a campaign
specific microsite?
APPS
What happens if
someone searches for
you in the app store?
Are other apps
referencing your brand?
Do you have your own
app? Is it current, does it
need updating?
Are you promoting
the app?
RESPONSE
Can mobile users
respond to your ATL
ads?
Are you using SMS
response?
Is your brand or audience
right for QR or Image
Recognition/Audio
recognition?
Does the media lead
directly to lead gen or a
branded experience?
MEDIA
Is the brand achieving its
share of voice in mobile
media?
Are you using mobile
display/PPC?
Are brands with retail
locations using Local
aspects to mobile search?
Are you driving users
to the channel through
direct operator channels?

37. It is no longer a nice to have thing
37

38. MOBILE
EXPERIENCE IN FMCG

39. Mobile Website
39
• UK research shows that FMCG brands are lagging behind on mobile: “46% of the UK's top FMCG
brands do not have a mobile friendly site and 30% have no mobile presence at all”*.
Background Functionalities Benefits Don’ts
• Dove (Unilever)
• Market: UK
• Mobile responsive
• Reduced content
• Presents product range
• Includes useful tips & articles
• Video Archive
• Presents Dove’s self-esteem
project
• Social Icons
• Readable and light website
*Source: http://www.warc.com/LatestNews/News/FMCG_brands_are_weak_on_mobile_.news?ID=32976
• Focused on key elements
• Easy to navigate (extra
menu; single layout)
• Loads quickly on the device
• May act as a landing page
• Do not overload the mobile
site with too much content

40. Mobile Website
40

41. Mobile Payments
41
Background Functionalities Benefits
• Starbucks
• Market: US, CA, UK
• Loyalty Programme
– mobile payments
• Mobile App (IOS &
Android) +
Starbucks Card
• A reward system
based on Stars
(points); for every
15 payments – a
free drink
• Instead of cash – mobile app
sync to a pre-paid Starbucks
Loyalty Card
• Paying process based on QR
codes which are scanned at the
till
• Mobile app enables to check
balance and top up a card,
view a transaction history and
transfer balances between
cards
• It track stars in My Starbucks
Rewards programme
• Starbucks locator
• Enhance in-store consumer
experience and consumer
relation
• Quick and easy payments
• Automatic Stars (points) for
each payment – the reward
program is a real draw
• In US mobile payments
represent 14% of in-store
transactions
(Mar 2014)
• Mobile app helps to collect
more info about the
customer – preferences,
needs, habits

42. Mobile Coupons
42
Background Functionalities Benefits
• Unilever brands
• Market: South
Africa
• Online & Mobile
Site
www.unileverdeals.
co.za
• Mobile coupons available on
Unilever website
• Mobile responsive site
• Single layout, extra menu,
filters make it easy to
navigate mobile site
• Three step mechanism: 1. To
sign up on the site 2. To
select a coupon
3. To receive SMS with a
discount coupon to use in
store
• Easy and quick mechanism
• A full range of Unilever offer
• The procedure enables to
build a consumer base (incl.
names and phone numbers)
for direct marketing purposes
• It allows to create a
consumer profile based on
the purchase intents
Mobile app seems a better solution for mobile coupons
platform: may enhance in-store experience, simplify the
procedure, personalize the offer

43. Mobile Coupons #2
43
Background Solution Results
• OMO / Presil (Unilever)
• Market: South Africa
• Loyalty programme
based on mobile
• The objective was to
build brand loyalty
among consumers and
encourage them to
make multiple
purchases
• Loyalty opt-in programme
• Mechanism:
1. Dial in a code on the OMO bag to
participate
2. To receive a call from a local celebrity,
Nkanysio, who asked questions about
purchase habits
3. Incentives:
1 bag = a chance to win R1million of
education bursaries
2 bags = R5 of mobile time
3 bags = R8 worth of airtime
4 bags = a voucher for school socks
5 bags = a voucher for school shirt
• All participants got a text messages
reminding them to buy OMO every month
• Repurchase increased by
60%
• OMO received 2,7 million
entries – an average
participant entered the
program more than three
times
• Sales increased by
• ROI was 3.5
Instead of typical discount, Unilever offers mobile
airtime – a reward of higher value for consumers
in South Africa

44. iBeacons
44
• DEFINITION: iBeacon is an Apple’s microlocation
technology that relies on Bluetooth 4.0 Low Energy
(BLE) solution. It allows mobile app to listen for
the signals from beacon transmitters and react
accordingly – push messages, app actions, prompts, for
instance.
• ADVANTAGES:
• Deliver proximity services that create unique consumer
experience
• More relevant, valuable and timely messages
• Target consumers at the point of sale
• App don’t have to be active on screen to receive beacon
signal
• DISADVANTAGES:
• BLT must be turned on
• Mobile device receives signals only if it has an app which
supports beacons
Source: Passkit
http://blog.passkit.com/ibeacon-101-proximity-services-infographic

45. iBeacons #1
45
Background Solution Results
• American Craft
(Hillshire Brands)
• Market: US
• In-store mobile
program through
inMarket apps
• The objective was to
drive sales of
American Craft Link
Sausages product
• If a shopper used one of
inMarket apps while in
store, he or she would
have received a branded
push notification with a
sausage discount offer
• 20% increase in purchase
intent
• 36% increase in brand
awareness
• During the
first two days 6000
engagements in-store
were measured –
that many times someone
received and opened the
push notification.
This campaign demonstrates that geotargeting
solutions have a big potential to draw sales

46. iBeacons #2
46
Background Solution Results
• 14 P&G brands (i.e.
Crest, Scope, Gillette,
Old Spice)
• Market: US
• In-store mobile
program through
CheckPoints App
(inMarket) to reach
‘millennial mums’
• The objective was to
lift purchase intent and
raise brand awareness.
• The campaign was executed in
grocery stores across US to
reach 20 M mobile users
• First they were informed about
the promotion via opt-in push
messages, mobile ads and social
media
• While shopping consumers got
alerts via CheckPoint App. Its
users get points for checking out
featured products in store.
Eventually these points can be
exchanged for gift cards and
gadgets
• The P&G products
were scanned 300
000 times in less then
three months

47. In-store Experience
47
Background In-store experience Benefits
• Macy (US retailer)
• Market: US
• In-store mobile program
(iBeacon) through
Shopkick App
• Shopkick App:
• presents various
products available in
participating shops
• rewards users with
kicks (points) whenever
they enter the store,
scan some items and
purchase them
• kicks can be exchanged
for gift cards
• iPhone receives Shopkick’s
iBeacon signal when
localized in Macy
• iPhone owner who uses
Shopkick App gets a push
notification to open it so the
app can alert to discounts and
sales
• If a shopper spotted any
products of interest online,
Shopkick can also remind of
them when visiting the right
department
• Enhance in-store
consumer experience
• An individual gets a
‘personalized’ offer
based on his/her
interests and
localisation
• Shopper can save
some time and money
• Direct people to
specific parts of the
store

48. In-store Experience
48
Macy (US retailer)
BACKGROUND:
• Market: US
• In-store mobile program (iBeacon) through Shopkick App
Shopkick App:
• presents various products available in participating shops
• rewards users with kicks (points) whenever they enter the store,
scan some items and purchase them
• kicks can be exchanged for gift cards
SOLUTION:
• iPhone receives Shopkick’s iBeacon signal when localized in Macy
• iPhone owner who uses Shopkick App gets a push notification to
open it so the app can alert to discounts and sales
• If a shopper spotted any products of interest online, Shopkick can
also remind of them when visiting the right department
BENEFITS:
• Enhance in-store consumer experience
• An individual gets a ‘personalized’ offer based on his/her interests
and localisation
• Shopper can save some time and money
• Direct people to specific parts of the store

49. In-door Experience
49
Background In-door experience Insights
• San Francisco
International Airport
• Market: US
• Mobile app using
beacon-based
navigation
technology
• San Francisco Airport created a mobile app
that helps visually-impaired travellers to move
about one of its newest terminal
• If the trails prove successful, the beacon
network might cover entire airport and SFO
app could be modified for all passengers
• If connected to iBeacon, SFO App gives aloud
directions to the airport gates
• It also localizes key areas inside the terminal
building such as restrooms, ATMs and baggage
claim
• It enhances consumer
experience
• Helps to explore the terminal
• Other possible advantages:
reminders, special offers etc.
Virgin Atlantic use personal notifications to remind upper class
passengers to open their eboarding pass when approaching security
area at Heathrow. Also Passbook App alerts them to special offers
available at near shops

50. Mobile solutions – Pros and Cons
50
Ad solutions Pros Cons
• Designed for mobile users = better
experience
• Available for various devices
• Provides data anytime - anywhere
Mobile Payments • It makes a paying process easier and
• Easy access to coupon base
• Always available
• Is it really for FMCG brands?
• Targets only those who have
downloaded the mobile app
• Wrong technology solution =
annoying
Mobile Site
Mobile Coupons
quicker at the point of sale
• Innovative solution = innovative brand
• Targeting at the point of sale
• Improve in-store experience
• xxx
iBeacons

51. MOBILE CAMPAIGNS

52. NIVEA: The Protection Ad
52
• BRAND: Nivea Sun (Beiersdorf)
• MARKET: Brazil
• MEDIA: Print,Mobile App
• OBJECTIVE: Nivea is a very traditional and
conservative brand. The challenge is to
energize the brand for the new target in order
to renew a consumer base.
• SOLUTION: Nivea has created a paper bracelet
which helps parents watch their kids while
spending time on the beach, for instance. Finding it inside a subscribed copy of Veja Rio
magazine one has to detach it from the press ad and then synchronize with a mobile app (Nivea Protégé). After
setting up the maximum distance where child can go, parents will be alarmed if this limit is exceeded. The
wristband uses Bluetooth technology – it is a Beacon Solution.
• RESULTS: Of the people who were impacted by the project 85% downloaded the Nivea Protégé App.
• INSIGHT: This campaign was aimed at a narrow audience, therefore print ad was used in the first place. In this
case beacon technology was used so parents got a useful tracking device. It highlights the key message that
Nivea Sun was created to protect kids in various ways. But there is a trap – what if a kid wearing the wristband
got lost?

53. Cif: Cif Cleans Romania
53
• BRAND: Cif (Unilever)
• MARKET: Romania
• MEDIA: Mobile App & Cif Romania Website
supported by: TVC, Outdoor, Instore
• OBJECTIVE: To change attitudes, dramatize a key
product benefit, drive web traffic and raise awareness.
• SOLUTION: The campaign is aimed at mothers whose
concern is they cannot protect their children against
outside dangers. This idea lies at the core of Cif campaign whose mobile app is a pivotal element. Using GPS
technology it enables to report the location of the offensive graffiti where Cif crew arrive later and clean it.
Before & After photos are posted on the app and Cif Romania website so everyone can see the results.
• RESULTS: Three months campaign resulted in 250000 website visits and 385 locations cleaned by Cif crew.
The app was the most popular one in its’ category on the App store. This campaign reached 14 million people
and generated $1,6 million in free media.
• INSIGHT: What characterise this campaign is a creative idea that is easily connoted with the product’s
characteristics. It appeals to reason and emotions . A bespoke mobile app made it really easy for the users to
choose graffiti to be removed.

54. Knorr: Inspiring Kitchen
54
• BRAND: Knorr (Unilever)
• MARKET: Brazil
• MEDIA: Mobile App, Branded Utility
• OBJECTIVE: To raise engagement and inspire new
cooking ideas.
• SOLUTION: Knorr has created a stylish line of kitchen
accessories such as dishcloths, aprons, fridge
magnets, mitts and bag dispensers distributed for
free in the supermarkets. Not only are they useful
in the kitchen, but also function as a key to mobile app which proposes customized recipes depending on
location, weather, seasonal ingredients, individual preferences. A mechanism that opens the mobile app
involves taking a photo of the print which is recognized as QR code. The underling technology is GPS.
• INSIGHT: Instead of placing QR codes on product packages, Knorr use beautifully designed kitchen items to
activate mobile app. This way Knorr’s accessories will stay outside the cupboards acting as a reminder of
the brand. Knorr goes a step further in recommending personalized and contextual recipes. This way they
become more relevant to the cooks.

55. Hellmann’s: Recipe Cart
55
• BRAND: Hellmann’s (Unilever)
• MARKET: Brazil
• MEDIA: Mobile
• OBJECTIVE: The idea is to change the perception of
mayonnaise as a sandwich filling and present it as a versatile ingredient that brings the best out of food. The
campaign is targeted at new consumers when the are in store doing shopping. An activation at the point of
sale is aimed to increase sales of Hellmann’s.
• SOLUTION: At Pão de Açúcar supermarket consumers push Recipe Carts which use RFID technology to
recognize products on the shelves and then display recipe ideas on LCD screens placed in the front of the
trolleys. The built-in map helps to locate all necessary ingredients in store. Consumers can also browse
recipes on screen and share them via email. They all are variations on mayonnaise usage.
• RESULTS: In the first month 45000 people experienced Recipe Cart and in result sales increased
by 68%. The campaign was commented in media generating PR for the brand.
• INSIGHT: Introducing Recipe Cart was a way to draw consumers’ attention to Hellmann’s while shopping.
Not only were they inspired by the new recipes, but also showed around the shop. In result Hellmann’s sales
increased. Relevant content, simple message, targeting shoppers and intriguing device lay behind the
success of this campaign.

56. Building a FMCG CRM programme via mobile:
Simple on pack code & on-going relationship by mobile
http://www.youtube.com/watch?v=XFyj0_UF6yY

57. Supply chain transparency to counter entrenched views:
AR, GPS, database & social integration from store

58. MEFOR FMCG

59. Use mobile to drive conversion before recruitment
• “Fish were the fish are” Keith Weed - Unilever CMO
• The new moment of truth is when a consumer looks for information in order
to help affirm the purchase decision
• We need to carefully balance the task of converting those who are expressing
an identifiable behaviour (which suggests a one-to-one style of
communications) vs. encouraging others to take action (more one- to-many)
59

60. And in order to do this we need to describe the four
pillars and the mobile landscape
• Reach; Mobile delivers reach. Web, apps and social channels are
of particular importance, but there are variations in usage
depending on the smartphone penetration
• Engagement; the frequency and depth of usage shows that mobile
has the power to bring engagement to FMCG brands. Social media
is a channel where considerable time is spent, but the growth of
mobile video, particularly in advanced territories, also delivers an
opportunity for engagement

61. Four pillars and the mobile landscape
• Impulse; the contextualized nature of mobile creates opportunities
61
to drive impulse. By understanding where and when devices are
used and planning media accordingly we can support both
discovery and impulse at the moment of purchase
• Loyalty; mobile can be the key to driving loyalty. Mobile can be
used to bridge across media channels to support loyalty. Regular
FMCG product consumers access to mobile channels throughout
the day can deepen the engagement and drive loyalty