Carrefour innovation conference.ppt
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Transcript of Carrefour innovation conference.ppt
Presentation to Group Carrefour Direction Veille & Innovation
November 2006
• We have identified an opportunity that will conservativelygenerate an additional £60 million for Retail Partnersover the next five years
• The opportunity takes no floor space and requires nocapital investment by Retail Partners
• The opportunity is well supported by a number of leadingsuppliers including P&G, Mars and Unilever
Executive Overview
The Light Agency
• The Light Agency is a multi award winning, international mobilemarketing services company with a blue-chip client list including P&G,Mars, Unilever, Warner Music Group and News Group Ltd.
• Our flagship technology M BAR GO® is widely recognised as the bestsolution for connecting mobile phones with retailer’s EPoS systems, aview shared by both the retail and marketing industry and by one ofthe world’s leading handset manufacturers.
Who are The Light Agency?
We have won more awards than anyoneelse in mobile-to-retail marketing
Revolution
Most Innovative Digital Business
2005&
Best Useof
Wireless 2006
Retail Solutions
EuropeanRetail
TechnologySolution ofthe Year
Mobile Marketing
Most innovative use of
mobile inmarketing
&Best example
of mobile creatingcustomer benefit
DR Intelligence
IntelligentInnovation Award
&FMCG Award
& Intelligent Application
of Data (Mobile) Award
Retail Week
RetailTechnology
Initiative of theYear
Red Herring
100EuropeAward
• M BAR GO® is patent protected solution that we describe as aglue which sticks three worlds together; mobile handsets,EPoS systems and an intelligent, flexible database.
• M BAR GO® is compatible with all handsets across all mobilenetworks. It is compatible with most EPoS systems and we canconfirm that it is compatible with many of Carrefour Group’ssystems.
• M BAR GO® enables us to send targeted discount coupons toopted-in members of clubs.
• M BAR GO® is proven, supported by leading manufacturersand very scaleable.
What is M BAR GO®
M BAR GO®Consumer Experience
M BAR GO® Benefits
1. More savings in store – instant gratification
2. Enhances the shopping experience through an interactivetwo-way dialogue
3. Mobile is the most ubiquitous consumer electronics device;your customers are never without their phone
4. Wider customer appeal. No need to clip coupons or forget tobring coupons to store
5. Extra mobile-related features e.g. free ringtone or game withpurchase
6. Multi-channel - easy to use in store & online
Groupe Carrefour customers benefitfrom M BAR GO® in a number of ways
1. Substantial new marketing revenue stream
2. Creates improved dialogue with customers
3. Increases transactional value and drives traffic to store
4. Improves customer data/targeting- Real time basket data/customer data- Price Modelling- Ability to drill down to individual store level
5. Powerful tool to clear stock
6. Ability to integrate into multi-channels (online, in-store) toprovide immediate ROI measurement on marketing spend
7. Creates a buzz in the marketplace
Groupe Carrefour benefits fromM BAR GO® in a number of ways
Manufacturers benefit from M BAR GO®
1. Offers are targeted using real-time shopping data
2. Robust pricing model and targeting
3. Faster turnaround than paper coupons
4. Real-time reporting of redemptions
5. Further branding opportunities for both manufacturer andretailer (e.g. Baby development tips sent to mobile whencustomer buys Pampers enhances the shopping/productexperience)
The customer experience
1. Customer opts in to the club by text to a shortcode
2. Barcode is sent to customer’s mobile phone - We call thisbarcode a Unique ID. No two mobile phone subscribers areever issued the same Unique ID.
3. Member receives offers - Offers become more targetedevery time the member redeems offers.
4. Member requests offers - Members can text us at any timeasking for a special deal.
M BAR GO® Consumer Experience
5. Member shows their Unique ID at point-of-sale - TheUnique ID is scanned by the sales assistant using a standardbarcode reader.
6. Discount is given automatically - One scan of the barcode,regardless of how many offers are being claimed.
7. Thank you message – Retailer/Advertisers can choose tosend a thank you message to the consumer for purchasingtheir brand or reward the customer with content, ringtones,mobile top ups etc.
M BAR GO® Consumer Experience
Here are just some ideas how Groupe Carrefour canenhance the customer experience:
• Invite to special events in store• Target new product alerts• Competitions• Store Openings• Integrate the multi-channel message• Instant gratification
How Group Carrefour can maximisethe M BAR GO® ConsumerExperience
Client Testimonials
Manufacturer testimonials - P&G
““M BAR GO represents an amazing opportunity forM BAR GO represents an amazing opportunity forP&G to connect with consumers, offering a directP&G to connect with consumers, offering a directresponse call to action via mobile.response call to action via mobile.
With the right retailer buy-in the technology couldWith the right retailer buy-in the technology couldgenuinely genuinely revolutionise revolutionise the direct to consumerthe direct to consumermarketmarket””..
P&G UK
Manufacturer testimonials - Unilever
““M BAR GO® offers such a fantastic means ofM BAR GO® offers such a fantastic means oftargeting, from location of shop through to actualtargeting, from location of shop through to actualshopper shopper behaviour behaviour (what else do they purchase with(what else do they purchase withour products? How often? etc...).our products? How often? etc...).
We would definitely recommend working with thisWe would definitely recommend working with thistechnology, as well as the teamtechnology, as well as the team””..
Unilever UK
Data Analysis
Segmenting & targeting
• The M BAR GO® Database collects all of the customer’stransactional data when the barcode is scanned
• TLA is able to segment and target customers based on theirproduct preferences, purchasing habits, frequency of visits,time and date etc
• By targeting a customer with the right offer at the right time wegenerate a behaviour change
• We can also send time stamped offers, seasonal offers,invitations, updates, rewards, games, ringtones etc.
Segmenting & targeting
Sainsbury’s Case Study
• Sainsbury’s invited TLA to conduct a pilot within a televisionregion; 35 stores in the city of Hull in their ‘Sainsbury’s atJacksons’ stores
• TLA funded and managed technology integration, consumermarketing, staff training, manufacturer support and customersupport
• The case study has won over a dozen industry awardsincluding European Retail Solutions Grand Prix and RetailWeek
Sainsbury’s Case Study
• Over 6% of population signed up to club in first two months
• Over 250+ brands supporting the programme
• Less than 14 days IT resource was required from Sainsbury’shead office
• Average transaction value of programme members is doublenon-members’
• Average items in basket of programme members is doublenon-members
• Manufacturers report significant uplift in sales when online withprogramme
Sainsbury’s Headline Results
0
2,000
4,000
6,000
8,000
10,000
12,000
08/07
/2005
15/07
/2005
22/07
/2005
29/07
/2005
05/08
/2005
12/08
/2005
19/08
/2005
26/08
/2005
02/09
/2005
09/09
/2005
16/09
/2005
23/09
/2005
30/09
/2005
07/10
/2005
14/10
/2005
21/10
/2005
28/10
/2005
04/11
/2005
11/11
/2005
18/11
/2005
25/11
/2005
02/12
/2005
09/12
/2005
16/12
/2005
23/12
/2005
30/12
/2005
06/01
/2006
Membership
0
200
400
600
800
1,000
1,200
1,400
Redeem
ers
Members
Redeemers 5+
We beat our membershiptarget and our members arehigh-redeemers6% of local population signed up to club in first two monthsClear evidence of consumer acceptance
Source: Innovetra Basket Analysis. Dec 2005
£4.89
3.6
£8.72
5.9
£10.42
7.05
Av. spend per basket Av. no. of items per basket
Jacksons regular customerJacksons SSS customer Feb 06Jacksons SSS customer July 06
SHOP SCAN SAVEincreases basket size
We generate higher sales forour brand partners
£1,999.27
£3,247.05
£1,513.07
£2,328.72
£430.61
£869.76
£1,341.90
£2,350.82
£1,845.30
£4,218.83
£0.00
£500.00
£1,000.00
£1,500.00
£2,000.00
£2,500.00
£3,000.00
£3,500.00
£4,000.00
£4,500.00
Nescafe 100g Nescafe 100g Fairy LiquidOrig 500
Fairy LiquidOrig 500
PedigreeDentastix
PedigreeDentastix
Charmin 4pack
Charmin 4pack
Persil 1kg /1.1kg
Persil 1kg /1.1kg
P14 P15 P15 P14 P15 P14 P15 P16 P15 P16
ON OFFER WITH 'SHOP SCAN SAVE'
NOT ON OFFER
@ c
onst
ant R
RP
High rates of interactionindicate loyalty and interest
Oct-Dec 2005 we received over 25,000 txts (av. 250/day).
Mobile Market Overview
Mobile phone ownership and usageis universal and growing in the UK
Mobile handset penetration 82% (age 16+) 50% 2+ handset penetration
there are more mobile phones in the UK than people
Very high turnover of older phones 18m new handsets sold each year
Rapid growth set to continue 2010 will index 270 vs 2005 (retail value)
Source: Mintel Apr 2005
Every socio-demographicgroup uses a mobile phone
The younger the consumer is,the more likely he/she is toown a mobile phone; muchhigher levels of penetrationwill be seen in future years.
Don’t forget the oldergeneration; 75% of 55-64sown a mobile phone.
Source: Mintel Apr 2005
81.4C2
78.1D
65.5E
76.3Scotland83.5C1
77.9North85.6AB
78.2Yorkshire &Humberside
79.7North West57.065+
82.9East and WestMidlands75.355-64
79.6Wales83.245-54
82.2South West89.735-44
83.8South East/EastAnglia91.925-34
81.5Greater London93.215-24
82.5Married80.1Women
87.8Single82.2Men
Mobile phone penetration (%)
Mobile phones are not justfor phone calls
1 Mintel Apr 2005 2 KPMG 2004
SMS represents one third of all mobile traffic txt users more likely to be C1C2D1
(AB 25% text traffic, C1 32%, C2 36%, DE 35%)
UK ringtone market worth £120m in 20042
twice as much as CD singles market
3m cinema tickets distributed in ‘05 via mobile phones
Why mobile?More shoppers own a mobile than justabout any other consumer electronicsdevice.
Your suppliers are investing heavilyinto mobile marketing. Our brandpartners, P&G, Unilever,Masterfoods, Nestlé and Coca Colajust to name a few are focusing onmobile marketing opportunities.
Mobile is the only marketing channelthat can deliver immediate interactionin-home and in-store.
Groupe Carrefour: Mobile Club Forecast
• We have developed a model for projecting membershipacquisition of a mobile savers club for Carrefour retailers
• The model assumes stores recruit 5 members per day and thatthe Carrefour subsidiary has 500 stores
• The model does not take into account new storeopenings/expansion
• An accurate projection can be created on request by GroupeCarrefour retailers to The Light Agency
Membership Projections
Five members/day per store
Membersopted-in to
M BAR GO®
3.6 million
2.7 million
1.8 million
900,000
Year 4
Year 3
Year 2
Year 1
• Manufacturers are charged in two components;- 7 pence per offer sent- 15 pence per offer redeemed
• Members receive 5 offers a week
• Redemption rate of 2% built into revenue model
• The following pages show revenue after direct costs (SMS)
Revenue Model
Two members/day per store
£46 million
£34.5 million
£23 million
£11.5 million
AnnualRevenue afterdirect costs
Membersopted-in to
M BAR GO®
3.6 million
2.7 million
1.8 million
900,000
Year 4
Year 3
Year 2
Year 1
• The Light Agency will fund all costs associated with technologyintegration and rollout including;
- EPoS integration associated IT costs- Staff training materials- Head office support- Member support line
• Groupe Carrefour will fund all internal (store) marketing topromote the service to its customers.
• Groupe Carrefour will receive between 30% and 50% ofrevenue after direct costs (dependant on number of membersrecruited in store).
Commercial Proposal
Carrefour Revenue Share
50%
45%
35%
30%
CarrefourShare
£23 million
£13.8 million
£8 million
£3.45 million
CarrefourRevenue
£46million
£34.5million
£23million
£11.5million
AnnualRevenue
afterdirectcosts
Membersopted-in
toM BARGO®
3.6 million
2.7 million
1.8 million
900,000
Year 4
Year 3
Year 2
Year 1
• Our programme with Sainsbury’s has recorded a significantincrease in Average Transaction Value amongst members(non members ATV = £4.89/ members ATV = £10.42)
• This represents an increase in ATV of 113%
• We achieve this uplift in ATV by persuading the shopper tobuy more items (non members = 3.6 items/members = 7.05items)
• For the purpose of this presentation we have assumed anincrease in ATV amongst members of 20% and an ATV of€20 and visits a store 24 times a year
Increasing Turnover by IncreasingAverage Transaction Value
€345.6million
€259.2million
€172.8million
€86.4million
Recording a20% uplift
€1,728million
€1,296million
€864million
€432million
HistoricalATV
Membersopted-in
toM BARGO®
3.6 million
2.7 million
1.8 million
900,000
Year 4
Year 3
Year 2
Year 1
Increasing Turnover by IncreasingAverage Transaction Value
Groupe Carrefour Launch Strategy
• We will establish operations in close proximity to your offices
• We will work with your EPoS supplier, your IT team and youronline agency to integrate M BAR GO® with your systems
• We will engage with your category managers to understandyour preferences for manufacturer partners
• We will develop training, support and incentive programmesfor your sales consultants
• We will provide exemplary support to your customers, stores,suppliers and head office
• We will grant channel exclusivity for 12 months from the timeof a national launch
Carrefour Launch Strategy -Our Commitment
• We will respect your members and will never share theirinformation with any third party
• We will never send your members an offer without asking youto sign-off on the message and the offer first
• We will provide you, your customers and your suppliers withexemplary service
• We will make it easy for you to audit our data
• Wherever possible, we will adapt M BAR GO® administrativeprocedures to follow your standards
• We will hold ongoing dialogue with your managers tounderstand how we can improve M BAR GO® for you
Carrefour - Our Long termCommitment
• M BAR GO® can be easily integrated into Carrefour’s EPoSsystems
• We will consult with your EPoS suppliers and engage directlywith them to manage integration
• Integration typically takes less than 60 days
• Full documentation of the M BAR GO® integration will beshared with Carrefour
• Once integrated, M BAR GO® will be rolled out nationwide withthe next release/update of your EPoS
EPoS Integration Strategy
• Multi-channel recruitment strategy: Television, PR, Radio, In-store (Colleague and POS), Word of Mouth, Online, FieldMarketing, Viral Campaigns
• TLA would leverage their strong relationships with leadingmanufacturers including P&G, Unilever, Mars, Coca Cola forfurther incentives
• Sales consultants will be rewarded for signing up members tothe programme
Member Recruitment Strategy
Further Innovation fromThe Light Agency
Take snap ofadvertisement or
packaging with camera phone
Send by MMSto 62111
Receiveoffers and/or
content
Show yourmembershipID barcode atthe checkoutand receive
your discounts
Snap works with any camera-phone
• SNAP SEND SAVE technology instantly matches pictures taken byconsumers to any hosted media
• A scalable, flexible patented solution which deploys image recovery, patternrecognition and image matching algorithms
• Service supports all camera phones using picture messaging on thehandset – including self-service interfaces for visuals, mobile content, andaccess to usage data
• High capacity messaging and mobile application infrastructure has beendeveloped with support for MMS, SMS, and WAP, and web servicesinterfaces are provided for third-party integration
SNAP lets shoppers connect withbrands with one easy click
Overview of service
• Entertainment As Reward (EAR) is a loyalty program and can be comparedto Nectar and Air Miles.
• EAR is targeted at Generation X and Y (18 to 35 year olds)
• Members of EAR earn points by shopping in the right places, buying theright brands, using the right mobile network or bank and partying in the rightplaces
• Members of EAR spend points on entertainment,which is downloaded to their mobile phone or PC
• The flagship tenant of EAR will be a Mobile Network Operator
• Partners of EAR will include:RetailersLeisure & HospitalityBank/Building Society
• Other sponsors of EAR will include:Handset manufacturersFMCG manufacturersAirline/Hotel/Car rental
Thank youFor more information please
contact Marc Lewis, Chairman,+44 7980 296 605