Notes and Thoughts on Grocery 2.0

With the holidays upon us, it’s time to reflect. Is your business poised to weather this holiday season, even among increased competition and consumer discretion?

The National Retail Federation reports that more than 90 percent of consumers research a product online prior to making a purchase in a store. Moreover, 92.5 percent of adults said they regularly or occasionally research products online before buying them in a store, according to BIGresearch. A Harris Interactive survey reported that 90 percent of those surveyed say they have a better overall shopping experience when they research products online before shopping in-store.

In today’s marketplace, having a well defined, user friendly, relevant online presence is necessary to drive both online and offline sale. As consumers look online first, the content they find greatly determines brand preference. The problem is the content consumers find today often leaves them wanting more. In fact, nearly one quarter of consumers said their biggest online shopping frustration is purchased items having no resemblance to the image on the Internet (Opinion Research Corporation).

To generate high quality content and relevant user applications, retailers must rely on industry leaders like MyWebGrocer to deliver the tools necessary to engage consumers. In addition, retailers need to turn to their advertisers and communicate the pivotal role engaging online product content plays in driving their in-store results.

Just as retailers have done with in-store merchandising over the years (such as product packaging, POP signage and sales training), retailers should solicit advertisers to provide rich product-centric content they can use to more effectively merchandise their products online. This is a smarter, more leveraged approach than attempting to create original high-quality product content. As an added benefit for both retailers and advertisers, consumers depend on content hot spots like recipe engines and site features like MyWebGrocer’s featured product merchandising module for product information that’s easy and reliable to find.

For advertisers, the small investment required to create and deliver rich, product-centric content to advertise products online should be viewed in the context of better aligning marketing spend with the reality of how today’s consumers shop. The online product page is arguably the most important single point of research. MyWebGrocer’s advertising network promotes consistent placement of manufacturer-driven content in front of shoppers each place a product is sold, allowing them to augment their brand directly at the online point of sale.

As a first priority, retailers need to focus on enhancing their online presence. On top of product research, consumers acknowledge that 24-hour shopping convenience is one of the main reasons why they choose to buy online. Additionally, shoppers’ other top reasons for buying online instead of in stores include not wanting to fight crowds, easy price comparisons, free shipping and promotions and spending online to save on high gas prices.

“Whether [consumers] make those holiday purchases online or in stores, the Internet will have a tremendous influence,” says Helen Malani, Shopzilla’s Online Shopping Expert.

There is no substitute for a great in-store shopping experience, but savvy retailers and advertisers are recognizing the enormous value of an enhanced online presence and the role it plays in driving sales, regardless of where shoppers prefer to shop.

Rachel

Consumers depend on the internet for information. That is a fact. If they didn’t, Google wouldn’t be processing over 3 billion searches per day. The Web provides businesses and brands with cheap, unlimited space to provide what their consumers want and need, which includes information. But while many have embraced the web and all it offers, far too many businesses underestimate the power of the internet to connect with consumers.

“The reason Google is so valuable is because it’s the linchpin of the expansive, information-driven age. It links seekers of information to providers of information in the most accurate and efficient way. It proves that there’s a marketplace for information unlike any we have ever known. And modern brands must compete in that marketplace,” says Barry Wacksman of AdWeek.

Websites, at the very least, should be loyalty driving vehicles, where goal oriented consumers can connect with brands, make purchasing decisions and seek product related information. In addition, consumer dependence on the internet provides great potential for Internet-based directional advertising, for both retailers and brands.

A recent OMD study that tested consumer perceptions about advertising found that 81% of consumers said advertisers need to continue to communicate about their products, especially during a recession. Consumers said they would be more receptive to cost-savings messages and products that are positioned as investments. For low involvement products, marketers need to communicate brand benefits.

“The task for marketers therefore is to explore more efficient ways to connect and listen to their consumers in order to reduce costs, while still maintaining a presence in the marketplace and connection to their consumers,” says Joe Marchese, President of Socialvibe. “It’s possible that this economy will force marketers to innovate, and finally begin the shift of massive, high-waste, traditional media budgets into more engaging, measurable interactive marketing initiatives.”

When your consumers go online, will you be there?

Rachel

According to a new study by JupiterResearch, in an uncertain economy, people may cut back on movies and cable television, but they are not likely to give up their internet access.

The study, which examines how an economic downturn could affect entertainment spending, found that almost one-third of participants would go to the movies less, while 12% would cut costs by cancelling premium cable services like HBO and Showtime.

In contrast to the likely cuts in television and movie theater viewership, only 2% of survey respondents said they would cut their broadband service. “It is noteworthy that broadband has reached this core status, joining the list of utility services along with electricity, phone and cable that consumers consider vital to the household,” says Jupiter analyst Bobby Tulsiani.

When deciding where to justify spending, just as consumers choose internet service over television as the one necessity that cannot be sacrificed, advertisers and retailers should choose internet over television as the one marketing effort than cannot be sacrificed.

Rachel

In a recently launched campaign created by McCann Erickson, Dentyne Gum urges viewers to “Make face time” by replacing online social activities with personal interactions. The advertiser links kissing with instant messaging, hugging with accepting a friend request, whispering with leaving a voicemail and other commonplace activities with those personal ones we supposedly do less of because of our addiction to technology. I love this campaign for its ingenuity, creative copy and relevance. But there’s a catch.

Dentyne’s campaign centers on a website, www.makefacetime.com.

Wait a second…Dentyne created a brilliant campaign to remind its core teenage audience that personal interactions cannot be duplicated online, yet they are hoping that it is being online that forces their target to interact with the brand? Talk about irony.

In a New York Times article discussing the advertiser’s strategy, Craig Markus, Executive Vice President and Executive Creative Director at McCann Erickson, acknowledges the disconnect. “There was a real paradox in that we want to have an online presence, but wait a second, we’re telling people not to be online. That’s where we came up with the idea of the three-minute web site.”

The site, unveiled last Monday, opens with a warning that in three minutes, the site will shut down. Messaging appears telling readers, “When people are surfing the Web, they’re missing the best part of life – being together.”

But having a self-destructing website doesn’t mean much since it’s still a website. And one which Dentyne hopes many young adults will frequent.

Zeynep Tufeki, a sociologist at the University of Maryland, says “This is a false dichotomy.” Tufeki, who studies the way teenagers use technology to socialize, says her research shows that the exact people Dentyne wishes to target are most likely going online to increase social interaction, update personal information and connect with friends. “In fact, they’re checking out these sites in the hopes that sooner or later it will end up in a hug or kiss,” she says.

It seems as if Dentyne’s messaging should read, “When people are surfing the web, they’re getting ready to enjoy the best part of life – being together.”

What do you think?

Rachel

Recently we’ve seen signs that confirm what many of us have suspected for a long time: Wal-Mart is entering online grocery shopping. Their Beta grocery site is running and accessible from their homepage. The smooth, calculating and now more socially conscious Wal-Mart’s consistent message about being the low price leader rings true given the bleak economic headlines of today. What are you going to do about?

If you don’t have online grocery shopping, then now would be a good time to get in the game before your existing customers go to a competitor for perceived low cost convenience. If your chain does offer online grocery then this is the perfect time to leverage your position in the marketplace. Taking stock of your current position will help to offer you a good starting point to measure success.

There are two major areas of concentration- in store and online. First, in store customers need to see regular and consistent messaging in the store, weekly sales circular and website. Prominent signs in checkout lines and well marked online express order pickup parking spaces pay huge dividends as they show your customers that you offer an alternative to the time vortex of grocery shopping. This is important to keep your existing customers from shopping at your competitors because they weren’t aware of your online offerings.

The next step is to ramp up your presence online, and here is where you need MyWebGrocer to maximize your efforts. Your traditional print and in store marketing are great at reaching existing customers, but we can help you take your competitors customers. Optimizing your web page for better rank in search engine results, personalized offers, email marketing campaigns, and our customer acquisition program are all the tools we can put to use to drive more business to the bottom line.

Our grocery customers rely on our expertise to give them the digital edge. Interested in maximizing your ROI and building your customer base? Call us at 802.857.1200 to learn more.