intelligence in. amazing out. · of informational kiosks increase brand engagement by letting...

SOLUTION BLUEPRINTMedia-Saturn

Digital Experience Retail Services

Intelligent In-Store Digital Experience Solution Elevates Brand Awareness and Engagement

Many retailers are apprehensive about rolling out a large, complex digital signage network, and rightfully so. The cost and planning required to deploy high-definition displays, kiosks, video walls and perhaps IPTV (Internet protocol TV) are considerable and must be backed by a solid return on investment (ROI). Providing greater insight into this process is Media-Saturn Group, Europe’s largest electronics retailer, operating more than 900 stores in 16 countries with around 15 million shoppers visiting every week. With the goal of providing its customers with the best possible information to make informed purchase decisions, the company took on an ambitious project to create a one-of-a kind, in-store digital experience.

Upon entering a typical store, customers see content, trailers and educational movie clips playing on over 200 screens, which are part of an in-store TV network that builds brand awareness. System-wide, the store chain manages 220,000 screens, about half of which are controlled by a web-based platform. Various types of informational kiosks increase brand engagement by letting customers listen to music, preview movie and game trailers, get advice about ink cartridges, learn about mobile phones and related service plans, and more. In addition, notebooks and tablets throughout the store convey marketing messages to customers. This is achieved with media players, servers and kiosks based on Intel® processors, which

deliver the computing performance and graphics capabilities needed to power this exceptional multimedia experience. This investment enables Media-Saturn to elevate the shopping experience, generate additional revenue, eliminate the cost of traditional signs and optimize customer communications.

This solution blueprint is based on research from the Platt Retail Institute, and more details are provided at the end of the paper.

EXECUTIVE SUMMARY

INTELLIGENCE IN. AMAZING OUT.

EXECUTIVE SUMMARYMany retailers are apprehensive about rolling out a large, complex digital signage network, and rightfully so. The cost and planning required to deploy high-definition displays, kiosks, video walls and perhaps IPTV (Internet protocol TV) are considerable and must be backed by a solid return on investment (ROI). Providing greater insight into this process is Media-Saturn Group, Europe’s largest electronics retailer, operating more than 900 stores in 16 countries with around 15 million shoppers visiting every week. With the goal of providing its customers with the best possible information to make informed purchase decisions, the company took on an ambitious project to create a one-of-a kind, in-store digital experience.

Upon entering a typical store, customers see content, trailers and educational movie clips playing on over 200 screens, which are part of an in-store TV network that builds brand awareness. System-wide, the store chain manages 220,000 screens, about half of which are controlled by a web-based platform. Various types of informational kiosks increase brand engagement by letting customers listen to music, preview movie and game trailers, get advice about ink cartridges, learn about mobile phones and related service plans, and more. In addition, notebooks and tablets throughout the store convey marketing messages to customers. This is achieved with media players, servers and kiosks based on Intel® processors, which deliver the computing performance and graphics capabilities needed to power this exceptional multimedia experience. This investment enables Media-Saturn to elevate the shopping experience, generate additional revenue, eliminate the cost of traditional signs and optimize customer communications.

This solution blueprint is based on research from the Platt Retail Institute, and more details are provided at the end of the paper.

KEY BUSINESS OBJECTIVESIncrease brand awareness and generate advertising revenue.

WHO WILL BENEFIT FROM THIS SOLUTIONAn extensive digital signage network provides benefits to customers, retailers and brands.

Consumers can learn more about products from various informational kiosks and communications messages conveyed by the in-store TV network.

Retailers help customers become more knowledgeable about products and offer advertising time to brands, which generates additional revenue. They can also reduce costs by using digital media instead of printed POS materials.

Brands can increase brand awareness by reaching a large audience through advertisements and targeted messages viewed on video walls, in-store TV and informational kiosks.

MEETING NEW MARKET DEMANDCustomers walking into an electronics store expect a high-tech digital experience indicative of the innovative products they intend to buy. Accordingly, some brick-and-mortar retailers are using digital technologies to vibrantly showcase their products to both educate customers and deliver marketing messages. For instance, they are deploying self-service kiosks designed to help customers select products, and at the same time, enable product manufacturers to raise brand awareness through striking video and animations. Retailers investing in customer-facing retail systems and digital signage can also generate significant incremental revenue from brands looking to optimize their engagement with the consumer.

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Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . 1

Key Business Objectives . . . . . . . . . . . . . 2

Who Will Benefit From This Solution . . 2

Meeting New Market Demand . . . . . . . . 2

The Business Challenge . . . . . . . . . . . . . 3

Solution Overview . . . . . . . . . . . . . . . . . . 3

Technology . . . . . . . . . . . . . . . . . . . . . . . . . 5

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . 8


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THE BUSINESS CHALLENGECreating an in-store digital experience is an expensive proposition; and consequently, businesses look to get a significant return on the investment by meeting various business objectives, some of which may include:

• Elevating the shopping experience: Provide customers with the best possible information to make more informed purchase decisions, thus building a stronger preference for the store chain and the brands it carries.

The digital age has put the consumer in the driver’s seat, and businesses are working hard to understand how this new dynamic could impact brand engagement. Empowered by “always-on” Internet connections and informed by the opinions of others, consumers are wielding greater control over a brand’s image, reputation and bottom line. At the same time, digital technology provides new avenues for brand optimization by creating opportunities to increase brand awareness and establish 1:1 personal relationships with consumers.

• Generating additional marketing revenue: Sell advertising time slots on the network and maximize advertising subsidies.

Digital signage offers product manufacturers (i.e., brands) significant value when placed at the point of purchase or in high traffic areas, like the checkout register, where people will watch ads for the entertainment value while waiting in line. Brands may purchase advertising time on the network or agree to pay higher subsidies when their products are prominently displayed on digital signs during a promotion.

• Eliminating the cost of traditional signs: Convert from static signs to digital, thus saving on paper, printing, transportation and setup costs, while also being more ecologically-friendly.

Digital signs offer many advantages over static signs, such as increased accuracy, fewer or no mispriced items and the ability to quickly change prices and messages, as needed. Outdated, paper signs, especially when not taken down after a promotion ends, detract from the store’s brand image.

• Optimizing customer communications: Create, test, adjust and launch content in minutes, not the weeks or months typical of static signs.

Digital signage enables retailers and brands to deploy communications media, such as advertising, promotions and general store information, more quickly and with greater consistency compared to paper-based signs.

SOLUTION OVERVIEWEvery week, around 15 million shoppers enter Media-Saturn stores and see an average of 225 screens, including digital signage and devices – televisions, notebooks and tablets – on display. The screens play a combination of videos, images and templates broadcast over an in-store TV network with about seven channels transmitted over Internet protocol (IP).

The shopping experience is enhanced by a variety of customer-facing devices, such as interactive, informational kiosks where customers can preview music and games before they buy. Most stores have an ink cartridge advisor kiosk that helps customers verify they are buying the right cartridge for their printer. Other types of kiosks are described later in the paper.

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Figure 1 . A totally centralized network is running in 457 Media Markt-Saturn stores in 12 countries.

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Large Scale Deployment

The Media-Saturn in-store digital experience is truly exceptional, able to deliver to 220,000 screens system-wide in more than 900 stores across 16 countries in the local language. Roughly half the stores run off the same web-based platform that controls up to 45 departments in a single store. The other stores are part of a centralized infrastructure, using a similar platform, which in some countries is managed by third parties on behalf of Media-Saturn.

The number of screens per store varies considerably. For example, most stores in Germany have five departments running five different programming channels, whereas the largest store in Hamburg has 56 different channels. A typical store may be configured with:

• up to 200 screens in the TV department

• 16 screens at the checkout counters (cash wraps)

• five screens in the service department

• up to four screens in the white goods department

• six to eight screens in the entertainment area

• 60 to 100 notebook screens and monitors

• up to 25 tablets

Video Walls

In several flagship stores, large 3x3 and 4x4 video walls are located at store entrances and in the entertainment departments. The Berlin store has digital signs mounted inside see-through elevators; and as they go up and down the front of the store, they create an intriguing outdoor effect for passersby at street level, as shown in Figure 1.

Advertising Model

About a third of the programming loop played on the in-store TV consists of general information, such as:

• Media-Saturn television advertisements.

• Hours of operation and other local customized information.

• Service information: power service, delivery, repair and financing services.

• News and weather in a corporate identity-branded look.

The remaining programming loop includes advertising sponsored by Media-Saturn industry partners, promotions for Media-Saturn’s private label brand and advertising for external partners, which tend to be large lifestyle brands. The duration of the loop depends on how many marketing slots are sold; however, the system ensures the loop is no longer than 30 minutes.

Advertising slots are also sold to brands not carried in the store, as in a major automobile manufacturer who ran a campaign in every store, or on a total of 220,000 screens. Media-Saturn will only play appropriate content and does not accept advertising contracts for liquor or tobacco products.

Advertising Rates

For all but one of the markets served by Media-Saturn, advertising rates are determined by traffic counts measured by POS transaction information. In the future, Saturn would like to provide advertisers and brands with traffic profiles by store department, which could indicate the volume of customers within viewing range of their advertisements.

Figure 2 . Numerous digital media options, shown here, and described above, are available to customers in Media-Saturn stores.


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Kiosks

A typical store has between 12 and 15 kiosks (Figure 2), which include:

• Music Kiosks/Sound Stations: Prior to purchase, customers can listen to selected music or test equipment, like headphones and computer speakers.

• Movie Kiosks: Customers can watch movie trailers, see which actors are in the movie and view a short plot summary.

• Game Kiosks: Customers can watch game trailers, read a brief description and see screenshots of the game.

• Ink Printer Advisor Kiosks: With the many types of printers available, customers often come into the store without knowing their printer model or replacement ink cartridge number. This kiosk enables them to easily identify their printers, and then indicates the correct ink cartridge and its shelf location. Alternatively, customers may search by ink cartridge number to see photos of the applicable printers to ensure they are purchasing the right cartridge.

• Interactive Mobile Phone Kiosks: Using an interactive screen, customers enter their phone and service plan requirements, after which the kiosk suggests what they should buy based on the requested features and functions. The recommended phones light up on the display counter, making it easy for customers to pick up and try out the phones.

• Scan@Screen: Once a music CD is scanned, the screen provides information about the album, song, etc.

• Entertainment Terminal: Similar to the Scan@Screen, customers can scan a DVD, Blu-ray or game to get additional information, see movie or game trailers, or listen to music.

• AdScreen: The screen shows the weekly, top-ten list of music, movies and games.

• Notebook Test and Safety: Notebooks on display run an interactive screensaver that shows product information and plays advertisements.

• Sound Station: Customers can compare different speakers and headphones while listening to various types of music.

• Monitor Test Station: A variety of content (Word, Excel, pictures and movies) is shown on a number of computer monitors to allow customers to compare models.

• Webcam Test Station: This kiosk enables customers to compare the picture quality of several models of webcams.

• Tablet Compare and Test: An interactive software program for Android tablets displays product information, technology features and price.

This in-store digital experience helps Media-Saturn address several challenges by:

• Elevating the shopping experience .

– Customers get product selection assistance from over a dozen different types of kiosks, while eye-catching communications media plays continuously on hundreds of screens.

• Generating additional marketing revenue .

– The revenue inflow from advertising and subsidies provides a positive return on investment (ROI).

• Eliminating the cost of traditional signs .

– Communication media is electronic, which allows it to be cost-effectively shared across stores in over a dozen countries, resulting in a substantial savings.

• Optimizing customer communications.

– Brands and advertisers can create, test and deploy communications messages more quickly using digital signage than with paper signs.

TECHNOLOGY

Network Management

Media-Saturn developed its own seamless web interface to manage all the players, as well as to create and deliver content. The infrastructure requires a dedicated, centralized team of five professionals along with a point person in each country responsible to manage the network, marketing efforts, and content supervision and approval. This platform can be used in 14 different languages and has complex user rights management to ensure all the stores can influence the content loop at multiple levels: local departments, local stores, specific regions or country. This capability allows stores to run regional advertising to promote local products.

A third party vendor manages the entire infrastructure, allowing Media-Saturn employees to concentrate on the value-added aspects of running the network, such as working with brands who wish to advertise on the network.

Consistent Content

Ensuring consistency in customer communications is critical and is achieved in a variety of ways. First, Media-Saturn contracts an agency to develop content with a consistent brand look and feel. Second, Media-Saturn created various technology platforms for the delivery and management of preapproved content. Third, there is a review and approval process where content is first uploaded to a third-party technology partner and then, for each country in which the content is to be programmed, the country manager reviews the content prior to activation.

General information, as referenced above, is most often created from templates provided by headquarters and agencies of the country groups. The stores can then customize the content to fit their individual needs. Advertising content comes from the brands themselves.

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Content Management Software Platform

An end-to-end content management software platform allows content to be selected from a library or provided by an advertiser, as shown in Figure 3. The platform, created by Media-Saturn, has a central library containing thousands of content segments of approved content organized by country and category. Most of the content is free, but in certain instances, a country that has created the content may charge a small fee to recoup its production costs. Advertising content that comes from the brands can be customized for the local country/market/store.

The platform also manages the sale of advertising and the activation by country, region, store and day-parts (e.g., morning, afternoon, evening). The easy-to-use interface enables store-level users to

manage the content and the bookings on their own. They also get a comprehensive overview of all the local and national bookings in the booking tool, and all the content in the internationally shared online library.

The end-to-end content management system also supports a wide range of advertising functions, including sales orders and agreements, insertion and placement, and play verification. In summary, the software achieves four core objectives:

1. National and localized content management.

2. Shared utilization of content.

3. Simple booking and marketing for the sale of local and national advertising.

4. Extensive reporting capabilities.

Systems Integrator

Media-Saturn contracted Xplace GmbH, a technology leader in the field of interactive customer information systems at the POS, to integrate the various systems used by the in-store digital experience. In doing so, Xplace designed the kiosk terminals, and selected and installed media players to control the digital signage, and servers to run the content management software.

• Kiosk Terminals: Based on either the Intel® Celeron® processor or the Intel® Atom™ processor.

• Digital Signage: Media players based on the Intel® Core™ i3 and Core™ i5 processors using Intel® Graphics Media Accelerator (GMA) 4500 HD Graphics and running the Microsoft* Windows* 7 operating system.

• Content Management: Servers based on the Intel® Xeon® processor and the Intel® PRO/1000 GT Desktop network adapter.

Figure 3 . The end-to-end content management system includes thousands of content segments that can be downloaded and tailored to local and regional customer audiences.


Intel is delivering the processors and Wi-Fi components needed for the solution. The kiosk terminals and digital signage use Intel® processors with on-chip graphics that drive a variety of 2D/3D graphics and high-definition video of up to 4K x 2K resolution, as well as multi-zone screens. As a result, Xplace does not need to use external graphics cards, which saves cost and reduces power consumption. The Intel Xeon processor-based servers have the computing performance and I/O throughput needed to reliably run Media-Saturn’s media-intensive applications.

The large family of Intel processors supports a variety of signage solutions and form factors, and delivers the performance necessary for the different signage solutions – from video walls to kiosks. The processors enabled a scalable solution, which started small and has now been scaled to all Media-Saturn stores, including expansion into new markets.

For retailers looking for assistance in deploying the capabilities discussed in this solution blueprint, the Intel® Retail Solutions Partner Network comprises industry-leading vendors with expertise in many key areas, including hardware, software, content creation, deployment and networking.

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EMPOWERING A NEW WORLD OF RETAIL INNOVATIONThe retail industry is in the midst of a dramatic information revolution that is laying the groundwork for new consumer experiences, enhanced productivity, reduced inventory distortion and brand optimization. Intel is addressing this transformation with the Intel® Intelligent Systems Framework, a set of interoperable solutions designed to facilitate connecting, managing and securing devices in a consistent and scalable manner.

What can emerging intelligent retail systems do? Imagine an intelligent store where incoming weather data indicates a severe storm approaching. The store’s digital signs and kiosks immediately begin promoting items commonly purchased during storms, like umbrellas, and prices are adjusted to reflect the predicted increase

in demand. Price updates are transmitted to electronic shelf labels and the back office. Data from checkout confirms umbrella sales are increasing, causing immediate alerts to the stockroom. The store’s warehouses and key suppliers send shipments to replenish the shelves.

The Intelligent Systems Framework helps simplify the deployment of intelligent systems and enables retail OEMs to shift their investments from achieving interoperability to unlocking the value of data. The framework features fundamental capabilities, delivered by components that address connectivity, manageability and security, including software and middleware from Wind River* and McAfee*.

For more information, visit www.intel.com/content/ www/us/en/embedded/intelligent-systems .html.

Sales

Retail Terminal

Stock Room

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ElectronicShelf Label

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Intel may make changes to specifications and product descriptions at any time, without notice. Designers must not rely on the absence or characteristics of any features or instructions marked “reserved” or “undefined.” Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or incompatibilities arising from future changes to them. The information here is subject to change without notice. Do not finalize a design with this information.

The products described in this document may contain design defects or errors known as errata which may cause the product to deviate from published specifications. Current characterized errata are available on request. Contact your local Intel sales office or your distributor to obtain the latest specifications and before placing your product order. Copies of documents which have an order number and are referenced in this document, or other Intel literature, may be obtained by calling 1-800-548-4725, or by visiting Intel’s Web site at www.intel.com.

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SUMMARYThe in-store digital experience is a unique solution that enables customers to make better-informed purchase decisions and allows Media-Saturn to generate advertising revenue. Digital signage, informational kiosks and the in-store network help educate customers while elevating brand awareness, a combination that offers great value to brands. The solution is powered by Intel processors, which provide the computing performance and graphics capabilities needed to deliver this cutting-edge, multimedia experience.

RESOURCES

Intel® Retail Solutions Partner Network

Redefining what’s possible, leading solution providers have come together to address the specific needs of retailers, whether it’s consulting, content creation and management, retail systems, hardware customization, deployment support, network management or cloud-based services. The Intel® Retail Solutions Partner Network provides one-stop shopping for cutting-edge technologies that deliver new consumer experiences, enhanced productivity, reduced inventory distortion, brand optimization and more. To learn about member solutions, visit intel.com/retailsolutions.

The Platt Retail Institute

Platt Retail Institute (PRI) is an internationally recognized consulting and research firm that focuses on the use of technology to impact the customer experience. In an omni-channel environment, PRI works with its clients to develop marketing strategies to integrate various customer-facing technologies. PRI clients include retailers, media companies, financial institutions, hardware and software companies, educational institutions and other businesses. In addition to its global consulting expertise, PRI also publishes the quarterly Journal of Retail Analytics, the North American Digital Signage Index, and other pioneering industry research. Please visit their Website at www .plattretailinstitute .org, where other useful information may be downloaded, such as:

• Retailers’ Investment in Technology: An Industry Perspective

• Agency and Brand Attitudes and Perspectives Regarding Digital Place-Based Advertising

• Journal of Retail Analytics 3Q 2012

For more information about service and products from Xplace, visit www .xplace .de.

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