Building Brands. Building Business.

Digital Marketing 201120 Best-In-Class New Media Campaigns You Should Know About

Scan this QR code with your mobile device to join our Linkedin community.

Don’t have a QR code reader? Download it for your iPhone or Blackberry.

2

3

Our clients are asking a lot of questions about new media. Which applications resonate with consumers? Which ones will deliver brand equity? Which are fads and which have staying power? Which deliver the best ROI?

To help answer these questions, we’ve scanned the virtual world to find examples that we think are noteworthy; NOT to suggest they are applications to follow, but simply initiatives that have influenced our thinking.

The following report highlights more than 20 examples that we feel are worthy of your consideration. Some are interesting for their approach, others for their execution. At any rate, I think you’ll find them all to be provocative and perhaps helpful in shaping your digital strategy.

I’d be happy to hear from you if you want to explore this further, or if you’re interested in finding out how Watt International can help you get more people, to buy more things, more often.

Sincerely,

Patrick RodmellPresident + CEOWatt Internationalprodmell@wattintl.com

4

the growth of mobile marketingHere are a few trends that highlight the growth in importance of new media and mobile marketing:

> In the US, nearly 47% of mobile subscribers were mobile media users (browsed the mobile web, accessed apps, downloaded content or used SMS)(1)

> In early 2011, smartphone ownership in the US increased to over 27% (from 16.8% the previous year)(2)

> 74% of consumers globally who use retail touchpoints and the Internet to research products will make their purchases in-store(3)

> 68% of Facebook users in the US are more likely to buy a product or visit a retailer based on a positive Facebook friend referral(4)

> There are over 5.3 billion mobile subscribers worldwide (77% of the world population)(5)

introduction

5

the changing landscape of digital marketing In response to the rapidly evolving new media landscape, brands today must successfully navigate many new media channels. Using text messaging, mobile and regular websites, mobile ads, proximity marketing, and smartphone applications, brands have the potential to know where the shopper is and to interact with them, often in real-time.

As they develop their approach to new media channels, retailers and brand owners are increasingly focusing on the following areas of brand leverage:

Shopper Empowerment (creating tailored experiences controlled by the user)

Brand Engagement (integrating the brand with social media, apps and games)

Incentives & Loyalty (text, location-based apps and 2D barcodes for coupons and deals)

Here are our top 20 picks for these categories.

7

http://www.asdapriceguarantee.co.uk

building a trust interface

ASDA in the UK has initiated a “price guarantee” program, in response to recent price wars being waged between the major supermarket retailers. Shoppers are invited to visit the Price Guarantee website, and enter the items they purchased the day before to compare the cost with the competition’s prices. ASDA reimburses shoppers the difference, plus a penny, if any items prove to be cheaper elsewhere.

Although it’s had some cynical response from competitors, ASDA’s system reinforces a sense of trust in shoppers by institutionalizing transparency.

shopper empowerment

Watt’sPOV

8

shopper empowerment

http://4food.com

social shopping: group-buying websitesCustomers of 4Food in New York City have the option to create and advertise,

via social networking sites, their own version of a burger. If that customized

burger is selected by any other customers, the originator will receive 25 cents

off of any subsequent purchases. Orders taken in the restaurant are processed

on iPads.

This concept blends customization, social networking and incentives

for an in-store and online experience that is fully integrated.

We like the use of iPads for order-taking too.

Watt’sPOV

9

http://www.levi.com

shopper empowerment

social media and the brand The Facebook “Like” button on branded websites allows users to indicate their preference for a brand and share other information with their friends. Brands like Levi’s are gradually incorporating this feature into their sites on a per-item basis, creating interaction with each product.

The Facebook “Like” feature on websites is a clever solution to the potential problem of brands invading the personal space of the social networking site.

Watt’sPOV

10

http://justbought.it

shopper empowerment

social media and shoppingThe “Just bought it” app allows shoppers to exchange ideas, photographs and comments on items they have recently purchased. Signing on through Twitter allows users to browse categorized purchases made by other Twitter shoppers as they tweet details of their shopping trips.

Justbought.it is like Facebook for shoppers, and illustrates how consumers like to compartmentalize their online social activity.

Watt’sPOV

11

http://bit.ly/aeQNqs

shopper empowerment

interactive browsing

The clothing store Tobi trialed a virtual dressing room on their website last year that gave at-home shoppers the ability to virtually try on clothing using a web cam.

Macy’s Department stores have a version in-store currently that allows the user to send images to their friends for feedback, or to share them on Facebook.

When integrated with social networking sites like Facebook, this tool becomes a retail extension of a social networking experience.

Watt’sPOV

12

http://www.stickybits.com

shopper empowerment

socially interactive objectsA recently developed app called “Stickybits” allows users to embed digitally coded messages to physical objects, using barcode stickers that they buy from the site, or by attaching messages to an existing barcode.

Others who scan the code can view content and add their own responses.

This app could be used by manufacturers or retailers for attaching digital information to products in-store: an appliance with a manual and instructional video attached, for example.

Watt’sPOV

13

shopper empowerment

relationship buildingFord Motor Company recently concluded a six-month social media experiment in which they gave 100 “agents” (members of the public) a free Fiesta for publicly “lifecasting” their experiences in the car. Recipients reviewed the car – which had yet to be released in the United States – and documented their experiences on blogs, Twitter, Flickr and YouTube. Their experiences built an authentic story that was then published online at FiestaMovement.com

This campaign generated over 5 million engagements on social networks but more importantly, 50,000 individuals said that they desired to know more about the Fiesta when it comes out and 97% of those didn’t currently drive a Ford vehicle.

As customers become more skeptical and distrusting of the product claims of corporations, allowing other people to extol the virtues of your brand through social media can help create trust and an “authentic” emotional bond between a consumer and your brand.

Watt’sPOV

http://www.fiestamovement.com

14

shopper empowerment

mobile marketing apps for shopping centersYorkdale Shopping Centre, one of Canada’s premier shopping destinations, recently launched an iPhone app to provide a more convenient and enhanced shopping experience. The app helps shoppers and retailers connect on the latest offers and dynamic promotions, driving traffic to their stores. Parking availability is updated in real time and an interactive map gives shoppers the convenience of mapping their route from store to store.

Long before the recession hit, consumers had already begun developing mall fatigue. Larger retailers, the anchor in most shopping centers, are increasingly shuttering their doors, putting greater pressure on smaller retailers to remain relevant and drive traffic to their stores. Mobile apps are one tool that retailers can use to engage shoppers and create an enhanced customer experience. Retailers can track the navigation patterns of shoppers and learn which stores they are visiting, giving them valuable data in which to base personalized offers and loyalty promotions.

Watt’sPOV

http://www.yorkdale.com

15

shopper empowerment

product information at your finger tips

Consumer Reports Mobile Shopper™ gives customers the ability to search, browse, or scan a barcode to access information and pricing for the product, as well as reviews and buying advice. You can also view local results, shop online and see a PriceGrabber comparison chart in-app before selecting an actual retailer.

It’s no longer enough to just focus on marketing activities that get customers in-store. With the proliferation of technologies like barcode scanners, which eliminate the need to be in front of a computer [often at home] to research product specs and prices, shoppers are presented with alternative choices in real time. Retailers will need to contend with savvy, informed shoppers who are often as, if not more, knowledgeable than their staff.

Watt’sPOV

http://www.consumerreports.org

17

http://bestbuyideax.com

brand engagement

browse and buyBest Buy now features QR codes on in-store products, allowing shoppers to scan the codes for further information.Shoppers can also go to the Best Buy idea exchange blog, IDEAX, to post their suggestions on the brand’s recent initiatives, including the in-store QR code.

Best Buy is taking ownership of the information that shoppers seek on their smartphones before making a purchase in-store.

Watt’sPOV

18

http://www.shopkick.com/app.html

brand engagement

just walk in to get your kicksShopkick is a smartphone application that uses a transmitter to register shoppers as they walk through the door, earning them points (“kickbucks”) toward prizes and the purchase of store items.

As of August 2010, a number of stores, including about 300 malls, had installed transmitters for the application.

This is a simple but powerful enhancement on the retail-basedshopper incentive gaming app. The rule of thumb should always be: make it simple for the shopper.

Watt’sPOV

19

http://bit.ly/cM6rTP

brand engagement

brand apps to enhance experiencePizza Tracker is a system that tracks your Domino’s pizza, from the oven, to the rack, to the time it left the store, and then tells you who your delivery person is.

The system operates through an app on a mobile phone, or through an online interface.

Marketing systems like these go a long way in addressing theconsumer desire for transparency and clear communication.

Watt’sPOV

20

brand engagement

“it’s your brand” TWEAK, a lifestyle footwear and apparel brand, leverages the vast audience of popular celebrities on social media sites to solicit fan ideas for new product designs. They then collect these ideas and produce footwear and apparel based on input from their fans. TWEAK’s motto: “It’s Your Brand”, couldn’t be more true. Even the TWEAK website gives users the ability to “tweak” the site and make it their own.

By putting the consumer in control, TWEAK has created a brand that is relevant to the 21st century shopper. Rather than dictate to its customers, TWEAK listens and incorporates their ideas into new products, and speaks to them through the media in their language.

Watt’sPOV

http://www.tweakfootwear.com

21

http://twitter.com/toysrus

brand engagement

integrating social media touch-pointsThe Toys-R-Us social media marketing involves Facebook, YouTube, a Deals Widget, Twitter and blog presence.

The company offers “deals widgets” for desktop, social media sites and mobile Internet use. The user is alerted via these channels to deals or new products.

This is a great example of successful integration of new media channels.

Watt’sPOV

22

http://www.facebook.com/maynardscanada

In addition to their role as brand awareness pieces, the posters are the top level of a highly interactive consumer experience.Using their smart phone (via QR codes, SMS messaging and the Maynards’ Most Wanted mobile site) consumers caninteract with the posters. A successful engagement leads to a “capture” that drives them to a Facebook application, wherethe $25,000 reward contest plays out.

Strategy « Big Orange Slide http://bigorangeslide.com/category/strategy/

8 of 18 10/8/10 11:58 AM

brand engagement

online ordering made funThe Maynards “Most Wanted” campaign involves print ads that invite respondents to hunt for each of the candy bandits (“Jerry Bomb”, “Sour Face”, “Fuzzy Malone”, “The Swede” and “Biggie Bear”). Contestants “Like” the Maynards page on Facebook to enter, then scan the QR code on the poster of each candy character they find. Contestants are eligible to win several prizes, and up to a $25,000 “reward”.

This campaign is fun and inventive, and includes a tangible and generous incentive that easily outdoes the offers of other brands.

Watt’sPOV

23

http://www.layar.com

brand engagement

augment your realityQuiznos has teamed up with makers of the Layar app to enable users to locate the nearest Quiznos restaurants using their smartphone.

Using augmented reality technology, Layar overlays a map ofQuiznos locations on the image of the area captured by the user’s smartphone.

Augmented reality is being experimented with by many brands, but in this example, Quiznos is offering a more practical application.

Watt’sPOV

24

http://mystarbucksidea.force.com

brand engagement

interacting with the consumerStarbucks invites users of their website and Twitter page to share ideas on how to improve the brand.

The company then lists the implemented ideas in the “Ideas in Action” section of their website.

This is a simple, fun way of interacting with users, while showing them the results of their input in real time.

Watt’sPOV

25

http://www.dunkinrun.com

brand engagement

online ordering made funDunkin’ Donuts has developed a new mobile web and iPhone app to coordinate and collect group orders for “runs” to the coffee and donut chain.

The iPhone App features the ability to keep track of past orders, receive reminders, and display your run status.

The Dunkin’ Run represents an effective way to encourage brand engagement, by providing a simple service that creates novelty while simplifying and expediting the ordering process.

Watt’sPOV

27

http://foursquare.com

incentives & loyalty

rewards go mobileUsing the mobile gaming app Foursquare, users can earn loyalty points at the stores they frequent. By “checking in” online as they enter store locations, gamers acquire badges and points.

When Starbucks customers acquire a “mayor” badge, they receive a dollar off their favorite drink, every time they enter the store.

In spite of the relatively slight incentives, Starbucks has enjoyed a lot of attention and healthy participation among consumers.

Watt’sPOV

28

http://bit.ly/9fd9St

incentives & loyalty

location-based mobile marketingPepsiCo has partnered with Foursquare, the location-based gaming app. The gaming app sends invites to users to sign on for loyalty points that can be redeemed for products, as they approach stores that carry Pepsi.

Pepsi Loot, introduced in June, works in conjunction with fast food chains.

Foursquare also shares information with its partnering companies on user activity. This gives companies the ability to adapt their marketing like never before.

Watt’sPOV

29

incentives & loyalty

2D barcodes in large printDuane Reade, the largest retail pharmacy chain in New York City, now owned by Walgreens, recently used 2D barcodes in their advertising to build traffic and promote private brands.

The ads are mainly intended to build awareness and promote interactivity, however users will receive news on deals on recently introduced private label products and other deals in-store.

This is one of the best examples of 2D barcode marketing we have seen. It blatantly and humorously addresses the potential problem of shopper comprehension.

Watt’sPOV

30

honorable mentions

We have updated our top list of new media retail samples to include a few more up-to-date developments.

Here are a few samples that are still relevant, but have either been enhanced or are just not as exciting as they were 6 months ago!

31

http://www.socialbuy.com

http://www.groupon.com

social shopping: group buying websites

A number of group-buying websites offer shoppers the opportunity to receive coupons only once several people sign up for a discount voucher within a limited time frame.

Often members of Facebook will announce deals, encouraging others to participate.

These sites encourage trial and build excitement around the brand. The benefits include positive brand self-promotion among shopper groups.

Watt’sPOV

32

location-based apps for shopping

Loopt enables users to connect with friends nearby and keep track of where they are. It also gives users special offers and coupons as they approach retailers in the vicinity of their phone, including Macy’s and Best Buy.

Applications such as Loopt are enabling retailers to draw consumers back into the retail store, and away from PC online shopping.

Watt’sPOV

http://www.loopt.com

33

http://www.facebook.com

social media and the brand

Facebook users in the US become “fans” of companies, brands or products 20 million times a day – up 500% in just one year.

The Facebook “Like” button is going to begin appearing on outside websites, so that users can indicate their preference for brands while viewing those websites and share information with their friends.

The plans for the “Like” feature on Facebook indicate a clever solution to the potential problem of brands invading the personal space of the social networking site.

Watt’sPOV

34

http://bit.ly/bMGePO

browse and buy

Best Buy in the US offers shoppers the ability to browse and purchase items via the website on their phone, browse and save or receive text alerts for time-sensitive deals.

In conjunction with Loopt, the location-based incentives app, Best Buy is offering smartphone users loyalty perks and coupons for entering the vicinity of a Best Buy location.

Increasingly, retailers are able to offer shoppers the opportunity to tailor and control their own product researching and shopping experience, mainly through apps.

Watt’sPOV

35

http://bit.ly/diLDUu

browse and research

Retailers such as Canadian Tire and Walmart Canada have created mobile websites for mobile phones – users can browse through all products, reviews and flyers on their mobile phone.

Retailers in Canada are aware of the importance of mobile marketing, and are stepping up their efforts to be involved.

Watt’sPOV

36

http://www.booyah.com

location-based gaming apps applied to retail

The MyTown app is a location-based gaming app that invites players to check in at real-world retail locations in order to receive points. They can also purchase virtual goods and real estate and track where their friends are shopping.

H&M offers its “Blues” savings incentives as players approach the store to entice them inside.

These apps are quickly being recognized by retailers as an opportunity to engage potential shoppers in a more interactive, fun way through gaming.

Watt’sPOV

37

texting to save

In 2008, Jiffy Lube in the US initiated a text-based promotion to attract younger customers who may not be as receptive to Jiffy’s TV or print ads.

Users received ads that were appended to their text alert content, such as Yahoo News and other services. Users were then encouraged to text in to receive varying amounts off their next visit.

Even the most basic marketing initiatives using SMS can be effective at building customer loyalty through incentives.

Watt’sPOV

creativestrategyresearch insight innovation

Consumer + Shopper • Research

Financial Analysis•

Stakeholder Interviews•

Trends + Innovation • Reports

SWOT + Best• Practice Analysis

Need State + Path to• Purchase Modeling

Brand Positioning•

Marketing Strategies•

Channel Strategies•

Product + Merchandise• Strategies

Private Brand Architecture•

Business + Strategic• Planning

Management Consulting•

Performance• Measurement (KPIs)

Brand Name, • Identity + Guidelines

Retail Design•

Package Design•

Merchandising +• POP Displays

Integrated• Communications

Brandvertising• TM

Web, Mobile +• Social Media

Total Production• Management

Value Engineering•

38

Watt International: who we are and why you should care.Does your brand break through the noise? Getting into the hearts and minds of consumers, and eventually their wallets, is challenging at the best of times. And if all the pieces of your brand – your research, insights, strategy and creative – aren’t cut from the same cloth, you’re fighting an even tougher uphill battle.

The key is quite simple – get everyone to sing from the same song sheet. But if you’re dealing with multiple consultants and agencies something eventually gets lost in translation. We are a truly integrated retail agency, with over forty years experience working in over forty countries around the world. Working collaboratively with our clients

and other supporting agencies where existing relationships exist, we help uncover the most meaningful insights, set the right strategies, and deliver results-oriented creative solutions across every brand touchpoint. Through this integrated approach, our clients get single-source management, efficiencies in account management, and a brand experience that’s connected from the first insight to the last creative expression.

So if you’re finding that the pieces of your brand puzzle just don’t seem to fit, we’d love to talk. Our single-source, best-in-class, integrated retail model works, and we’d love to show you how.

3939

Page 4: (1) Comscore “Mobile Year in Review”, Feb 2011; (2) Comscore “Mobile Year in Review”, Feb 2011; (3) TNS, “Global Telecom insights, 2010 Priorities”; (4) Morpace, emarketer, “Facebook’s Impact on Retailers”, Apr 1, 2010; (5) MobiThinking, Global Mobile Statistics 2011

Page 7: Sample 1 - ASDA Press Release, “ASDA Price Guarantee: Our new promise every time you shop”, Apr 27, 2010

Page 11: Sample 5 - Stores Magazine, D.M. Amato-McCoy, “That’s So You”, Apr 2010

Page 14: Sample 10: South Orange Patch, P. Hoops “Get a Kick out of Shopping with a New App”, Aug 25, 2010

Page 28: The New York Times, S. Clifford, “Linking customer loyalty with social networking”, Apr 28, 2010

Page 29: Sample 20: Drug Store News, A. Alexander, “Duane Reade Teams up with JagTag”, Apr 28, 2010

Page 31: Contra Costa Times, E Mitchell, “Pack mentality can round up deals”, Apr 4, 2010

Page 32: The Wall Street Journal, G.A. Fowler, “Software Apps Provide Shoppers With Rewards to Help Lure Them Into Stores”, Apr 21, 2010

Page 33: Stores Magazine, S. Reda, “NRF Retail Innovation & Marketing Conference Highlights Conference Wrap-up, Apr 2010

Page 34: Stores Magazine, E. Davis, “Mobile 101: a retailer’s guide”, Jan 25, 2010

Page 36: Social Times, N. Vidyarthi, “H&M offers virtual goods within location-based game MyTown”, Mar 2, 2010

appendix

Contact us at 416 364 9384 x 240 or contactus@wattintl.com

to talk about how we might be able to support your business.

North America

300 Bayview AvenueToronto, ONCanada M5A 3R7

416 364 9384416 364 1098

China

24F,520 YiShan RoadShanghai 200235P.R. China

021-54250172021-64410492

TF

TF

please visit us at www.wattintl.com

Scan this QR code with your mobile device to join our Linkedin community.

Don’t have a QR code reader? Download it for your iPhone or Blackberry.