Digital Marketing in UK Food & Grocery: Essential Shopper Insight into the use of Digital Media and Mobile Commerce
Report description
This report offers the most up to date and authoritative analysis of digital shopper marketing, presenting detailed insight into shoppers’ awareness, usage and appeal of different digital initiatives, their views on barriers to adoption and broader analysis of key trends and opportunities in the market.
The report offers a particular focus on the increasingly important role of mobile commerce in targeting shoppers in food, drink and grocery.
While the use of digital marketing in targeting shoppers of food, drink and grocery remains in its relative infancy, the increasing emergence of technologies and growing attention from leading FMCGs are pushing this complicated topic up the category development agenda.
Digital shopper marketing is the use of digital media to target consumers as shoppers in order to influence their decision making along their path to purchase.
Digital media is a broad field extending from smartphones and apps, to SMS and email; from internet websites to branded microsites and social media; and from barcode scanners to digital signage in-store. Digital shopper marketing initiatives relate to the use of these media to target shoppers with everything from digital coupons, promotions and recipes - to integrated loyalty schemes, online shopping baskets and enriched product information.
This report will help you;
- Learn about digital marketing and the use of digital media in targeting food, drink & grocery shoppers along their path to purchase.
- Determine underlying drivers of growth through Evolution's analysis of key developments such as the rise of smartphone penetration, the rapid launch of new initiatives and changing shopper attitudes towards digital technology.
- Forecast the growth opportunity over the next five years.
- Analyse awareness and usage of different digital shopper marketing initiatives among food, drink and grocery shoppers, with key focus on mobile-based technologies.
- Compare and contrast the appeal of different digital shopper marketing initiatives among shoppers in food, drink and grocery, and identify where opportunities for growth lie for your business.
- Learn how awareness, usage and appeal differ across different shopper demographics.
- Relate shopper awareness, usage and appeal of digital shopper marketing initiatives to their broader usage of digital media and current life-stage.
- Gain a deep understanding of key digital shopper marketing themes including: digital coupons and offers, loyalty point schemes, digital shopping lists and baskets and enhanced product information.
- Assess the benefits, issues and trends relating to these digital shopper marketing themes, while taking account of the shopper's perspective on specific initatives through detailed quantitative and qualitative analysis.
- Uncover the shopper perspective on key issues surrounding adoption of digital shopper marketing initiatives including; the contrast between push and pull marketing, use of location based targeting, disclosure of personal information and shopping habits, usage and accessibility of technology.
- Identify shopper attitudes towards different forms of incentive and the extent to which they might drive increased usage among shoppers.
- Consider the contrasting roles of different stakeholders in delivering digital shopper marketing initiatives, ranging from retailers and manufacturers to social media networks, smartphone application developers and third party aggregators.
- Discover the shopper perspective on the role of different stakeholders, and their likely behaviour relating to trust and engagement.
- Understand the perspective of shoppers who use already digital media in food, drink and grocery regarding experiences to date and ideas for improvement.
- Review current digital shopper marketing initiatives across the UK food, drink and grocery market.
- Learn from best practice examples drawn from other categories and international markets.
Utilising a broad range of research methodologies, the report delivers a unique 360-degree perspective of the ‘digital shopper marketing’ landscape. Sources of primary data include a survey of 1,500 main shoppers and focus group interviews. Secondary desk research will include government statistics, company and broker reports, news articles, trade and academic journals and in-house proprietary databases.
Table of contents
Why is mobile marketing particularly important for digital shopper marketing in food and grocery?
What does digital shopper marketing look like in food and grocery?
What are the different types of digital shopper marketing initiatives?
What are the different methods of reaching shoppers with digital shopper marketing?
Who are the different platforms and providers of content in digital shopper marketing, and what role do they play?
Which types of digital media do they use?
Examples of digital shopper marketing in food and grocery
Digital shopper marketing using smartphone applications
Digital shopper marketing using websites
Digital shopper marketing using text messaging and e-mail
Digital shopper marketing using digital signage, screens and kiosks in-store.
What are the emerging technologies shaping digital shopper marketing?
Location based services and barcode scanning
Social media and e-commerce
The macro environment: drivers and trends in digital shopper marketing
How many grocery shoppers use the internet and how often? How is this changing over time?
How many grocery shoppers own a mobile phone or smartphone? How is this changing over time?
How does this breakdown by demographic?
How does this breakdown by retailer?
What do grocery shoppers use their mobile phones for?
How many grocery shoppers use mobile internet?
How many grocery shoppers are using their mobile phone for shopping related activities?
How does this breakdown by demographic?
How does this breakdown by retailer?
What is the outlook and forecast for digital shopper marketing?
Why is winning over the baby boomers key to success?
Where will digital shopper marketing take-up be in five years?
The shopper perspective on digital shopper marketing initiatives at a glance
Which digital shopper marketing initiatives are grocery shoppers aware of?
What digital shopper marketing initiatives do grocery shoppers currently use?
Which digital shopper marketing initiatives appeal to grocery shoppers the most?
What is the outlook for growth for different digital shopper marketing initiatives?
How many grocery shoppers find the use of digital media in food and grocery appealing?
What impact does smartphone ownership have on the shopper perspective?
What is the demographic profile of shoppers who do not like the idea of using digital media in relation to food and grocery?
What do shoppers think are the major barriers to the use of digital media in shopper marketing?
Which initiatives are likely to persuade shoppers and overcome these barriers?
Which aspects of digital shopper marketing initiatives are most important to shoppers?
How important is relevance of digital shopper marketing to grocery shoppers?
How important are financial incentives for digital shopper marketing and grocery shoppers?
How important in pull rather than push delivery to grocery shoppers?
How much of an issue is disclosure of personal information among grocery shoppers?
How important is location based delivery to grocery shoppers?
What types of incentives are likely to encourage grocery shoppers to engage in digital shopper marketing?
Which type of digital shopper marketing initiatives would shoppers be happy to receive directly from brand manufacturers?
The shopper perspective on digital shopper marketing initiatives in detail
An introduction to digital coupons and offers
What are digital coupons?
What are the different types of digital coupons, and which are being used in practice?
What are the benefits of digital coupons?
What are the key trends and issues facing digital coupons?
The shopper perspective on digital coupons and offers
What proportion of grocery shoppers would be interested in receiving digital coupons and offers?
How important is relevance to grocery shoppers?
How do shoppers feel about disclosing their personal information?
How does this vary by demographic and retailer?
Do grocery shoppers prefer push or pull delivery of digital coupons and offers?
Do grocery shoppers want location based delivery of mobile digital coupons?
What is the difference between macro location and micro location?
When would grocery shoppers prefer to receive digital coupons?
Who would grocery shoppers trust to receive digital coupons from?
What do grocery shoppers think about receiving digital coupons directly from brands?
What do grocery shoppers think about finding digital coupons on social networks?
Do grocery shoppers prefer web delivered digital coupons or mobile digital coupons?
What are the most important features of mobile digital coupons among grocery shoppers?
An introduction to digital loyalty point schemes
What are digital loyalty point schemes?
What are the different types of digital loyalty point schemes, and which are being used in practice?
What are the benefits of digital loyalty point schemes?
What are the key barriers facing take-up of digital loyalty point schemes?
The shopper perspective on digital loyalty point schemes
What proportion of grocery shoppers would be interested in replacing their loyalty card with a smartphone app?
What proportion of grocery shoppers use their mobile phone to check their loyalty points balance?
What proportion of grocery shoppers would be interested in being able to check their loyalty point balance with their mobile phone?
What proportion of grocery shoppers would be interested in earning additional loyalty points by using their mobile phone in-store?
An introduction to digital shopping lists and baskets
What are digital shopping lists?
What are the different types of digital shopping lists, and which are being used in practice?
What are the benefits of digital shopping lists?
What are the key issues and trends driving the take-up of digital shopping lists?
The shopper perspective on digital shopping lists and baskets
What proportion of grocery shoppers are interested in digital shopping lists using their PC or mobile?
What kinds of opportunities exist for marketing to these grocery shoppers?
What proportion of grocery shoppers are interested using their mobile phone to scan items and add them to a digital list?
How do grocery shoppers feel about being able to scan items directly to their online shopping basket?
What proportion of grocery shoppers are interested in using their mobile phone to do their online grocery shopping?
What do shoppers think are good ideas for improving digital shopping list initiatives?
Who are the best placed to deliver digital shopping list initiatives directly to grocery shoppers?
An introduction to the use of digital media for delivering enhanced product information
What are the different types of enhanced product information that can be delivered to grocery shoppers using digital media?
What are the benefits of enhanced digital product information?
The shopper perspective on digital product information
What proportion of grocery shoppers are interested in web price comparison?
What proportion of grocery shoppers are interested in price comparison using their mobile on-the-go?
What do grocery shoppers think about the idea of price comparison in food and grocery?
What proportion of grocery shoppers are interested in recipe and meal suggestions?
When would grocery shoppers prefer to receive recipe and meal suggestions?
What proportion of grocery shoppers are interested in using their mobile to find additional nutritional information?
What proportion of grocery shoppers are interested in receiving personalised health recommendations on their mobile?
How do grocery shoppers feel about web ratings and reviews in food and grocery?
An introduction to the use of digital media for enhancing the shopper’s experience
What are the different types of initiatives?
How do shoppers feel about the opportunity to use digital media to improve their shopping experience?
Methodology
Our quantitative survey
Our shopper focus groups
Glossary
Table of Figures
Evolutions ‘Benefits of digital shopper marketing’
Evolutions ‘Framework for digital shopper marketing’
Shopper marketing initiatives
Methods of digital shopper marketing reach
Evolutions framework for digital shopper marketing – applied to practical examples
Proportion of time spent social networking, by device
Top UK mobile Internet sites, December 2009
UK household Internet penetration 2006-2010
Home internet access, by demographic, 2009 and 2010
Proportion of UK adults using the Internet every day, 2006 - 2010
Mobile phone penetration, Q1 2010, by age group
Number of smartphone users and penetration of smartphones in the UK, 2008 Q1 to 2010 Q2
Mobile phone ownership in the UK
Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own any sort of mobile phone’, by demographic
Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own a smartphone’, by demographic
Active connections, 3G mobile and home Internet, 2004 - 2009
Penetration of UK adults who say they ‘regularly shop for grocery’ and ‘own a smartphone’, by retailer
UK adults - Usage of technology
UK adults using a mobile phone to access the Internet growth index
Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own any sort of mobile and use internet on it’, by demographics
Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own a smartphone - and use internet on it’, by demographics
Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own any sort of mobile and use ‘apps’ on it’, by demographics
Penetration of UK adults who say they ‘regularly shop grocery’ and ‘own a smartphone - and use ‘apps’ on it’, by demographics
Proportion of UK adults who rate specific technologies as ‘important’
Importance of specific technologies
Penetration of UK adults who shop grocery regularly and say that being able to purchase items on their mobile is important, by demographic
Penetration of UK adults who shop grocery regularly and say that being able to find product information on their mobile is important, by demographic
Penetration of UK adults who shop grocery regularly and say that being able to find offers on their mobile is important, by demographic
Penetration of UK adults who shop grocery regularly and say that internet on their mobile while in the supermarket is important, by demographic
UK population age profile, 2010 estimate and 2015 projection
Mobile phone penetration, smartphone penetration and overall appeal of DSM, 2008 – 2010 and forecast to 2015
Awareness of digital shopper marketing initiatives
Usage of digital shopper marketing initiatives
Appeal of digital shopper marketing initiatives
Evolution’s digital shopper marketing ‘potential matrix’
Evolution’s digital shopper marketing ‘potential matrix’-outlook for growth
General appeal of digital shopper marketing among shoppers in food and grocery
Penetration of those who said they would never consider digital shopper marketing, by demographics
Penetration of those who said they would never consider digital shopper marketing, by retailer
‘Hard’ barriers to adoption of digital shopper marketing
Shoppers perspective on overcoming receiving digital shopper marketing communications
Proportion of shoppers who believe no initiative would overcome their barriers
Preferences of shoppers regarding methods of digital shopper marketing delivery
Shoppers perspective on the appeal of receiving digital shopper marketing directly from a brand manufacturer
Different forms of ‘digital’ coupons, and offers
Benefits of digital ‘vouchers’ or ‘coupons’
Out of store influences when selecting brands
Different forms of mobile digital coupons
Shopper perspective on receiving coupons & offers on mobile or desktop device
Shopper perspective on opting in to receive coupons & offers on mobile or PC
Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by demographic
Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by retailer
Shopper perspective on opting in and push versus pull in relation to receiving digital coupons and offers
Relative appeal of different digital coupon initiatives
Perspective on receiving coupons & offers on mobile or desktop device
Penetration of those who say they would be interested in receiving targeted coupons and offers to their mobile or desktop device, by demographic
Relative appeal of different digital coupon initiatives
Relative appeal of different digital coupon initiatives (2)
Relative trust of different potential providers of coupons & offers to mobile or desktop device
Different forms of ‘digital loyalty schemes’
Benefits of digital loyalty schemes
Appeal of digital coupon related shopper marketing initiatives, by mobile phone ownership
Average awareness & usage of loyalty points related shopper marketing initiatives
Appeal of redeeming loyalty points using a mobile (virtual loyalty card)
Appeal of checking for loyalty points in store using a mobile
Awareness & usage of initiative
Appeal of earning additional loyalty points from products using your mobile
Appeal of digital loyalty point’s initiatives
Different forms of ‘digital list and basket management schemes’
Benefits of digital loyalty schemes
Barriers to use of digital shopping lists and online shopping baskets
Digital shopping list initiatives
Building shopping lists using mobile devices - initiatives
Creating online shopping baskets using mobile devices - initiatives
Different forms of enhanced product information initiatives
Benefits of digital media for use with product information initiatives
Proportion of shoppers who find digital price check and comparison ‘appealing’
Proportion of shoppers who find digital price check and comparison ‘appealing’, by demographic
Proportion of shoppers who find digital price check and comparison ‘appealing’ (2)
Proportion of shoppers who find digital price check and comparison ‘appealing’ (2), by mobile ownership
Proportion of shoppers who find recipe and meal suggestions ‘appealing’
Proportion of shoppers who find recipe and meal suggestions ‘appealing’, by demographic
Proportion of shoppers who find product information ‘appealing’
Proportion of shoppers who find product information ‘appealing’, by demographic
Proportion of shoppers who find nutritional value information ‘appealing’
Proportion of shoppers who find nutritional value information ‘appealing’, by demographic
Proportion of shoppers who find user review information ‘appealing’
initiatives to improve the shopper experience
Appeal of using a mobile to find what you need quicker when you are actually in the supermarket
Appeal of using a mobile to find what you need quicker when you are actually in the supermarket’, by age
Appeal of using a mobile in the supermarket to checkout item as you put them in your trolley, to save time at the checkout
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