The Pre-shop Journey A CE/CPG comparison

12/9/14

Dan Seymour, NA Director Retail/Shopper Marketing

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North America Shopper Marketing

Consumer Electronics unique characteristics

• Three cycles & speed of new technology

• Length of time between repurchase

• Length of shopper journey

• Higher ASP, Higher consideration

• Higher level of angst

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North America Shopper Marketing

Online is important, but how important?

Size and Scale of CE Online

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Heavy online research

Motivations to buy & research online

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48% 48% 5% Purchased online

Desktop/Laptop Tablet Oral Care Purchase Behavior

52% 52% 95% Purchased offline

The CE Shopper is an active online and offline buyer.

Source: TNS/Kantar 2014 U.S. Connected Life Survey

North America Shopper Marketing

50/50 mix does not hold true with most traditional CE retailer

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12% 88% Best Buy

Online Stores PC Category Purchases

31% 69% Costco

Source: NPD Panel Data

12% 88% Office Depot

20% 80% Staples

18% 82% Walmart

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The CE space has major pure play ecommerce players that balance out the mix

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61% 69% 8% Did online research pre-purchase

Desktop/Laptop Tablet Oral Care

Research Behaviors

23% 28% 12% Did offline research before purchasing

24% 18% 80% Did not research before purchasing

Source: TNS/Kantar 2014 U.S. Connected Life Survey

The CE Shopper is an active online and offline researcher pre-purchase.

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If they help me, and make my life easier 57% 39%

Technology Food & Drink Reasons for connecting with brands online (largest deltas)

If they can answer questions I have or offer me customer service 50% 34%

If they provide easy access to product information 56% 42%

If they save me time 50% 36%

If it saves me money or to get access to coupons or vouchers 54% 65%

Source: TNS/Kantar 2014 U.S. Connected Life Survey

The CE Shopper is looking for info & help.

North America Shopper Marketing

Undecided but well informed shopper

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In-store merchandising

Sales associate

The store can and does make an impact.

North America Shopper Marketing

Had specific brand in mind while shopping 51% 60% 78%

Decided what to buy while shopping 65% 68% 54%

24% 18% 80% Did no research at all before purchase

Desktop/Laptop Tablet Oral Care Purchase Behavior

Source: TNS/Kantar 2014 U.S. Connected Life Survey

The CE Shopper is open to influence along this Online/Offline journey.

49% 40% 22% Had no brand or more than one brand in mind before shopping

North America Shopper Marketing

It is easier to buy things offline, in stores 49% 38%

Prefer to touch and feel before buying 46% 34%

51% 29% I want the product straight away

Purchase Motivators for offline shoppers Technology Groceries

Source: TNS/Kantar 2014 U.S. Connected Life Survey

The CE Shopper is motivated to buy offline by availability, immediacy, and interactivity

North America Shopper Marketing

Displays need to work hard, and be secure

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Complexity of fact tags

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The power of a recommendation

North America Shopper Marketing

Desktop/Laptop Tablet Oral Care Offline Purchase Behavior

50% 76% 60% Of those visiting store, checked prices

32% 52% 11% Of those visiting store, spoke with staff

Source: TNS/Kantar 2014 U.S. Connected Life Survey

The CE Shopper is using the stores to check prices, and get recommendation

North America Shopper Marketing

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