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Supermarket Sweep of News

Steve Smith's picture

Welcome to this new column, highlighting interesting supermarket news from the week.

Sainsbury’s launches mobile shopping app

The ways people are able to interact with supermarkets increased this week, with news that Sainsbury’s has launched a new mobile shopping app, providing people with a mobile version of its online site.

People will be able to use the app to access all 20,000 Sainsbury’s products, and place a non-food order on their smartphones for delivery next day, or choose to collect from any of its 870 stores.

Customers will also be able to choose to receive personalised offers and collect nectar points whilst they shop.

This news coincides with research from Nielsen that looks at how people use their smartphones in different stores. As I report elsewhere , in-store smartphone use provide interesting opportunities for supermarkets.

Daily Mail’s Spring Clean for the Queen

More than 2,800 volunteers from Tesco signed up over just two days this week take to the streets in the coming weeks to clean up their local communities before the Queen’s Jubilee.

It comes on the back of news that last weekend 100 UK beaches and canals were cleaned up by 6,000 M&S staff.

Both are examples of how big retailers including supermarkets are taking shoppers’ demands that they deliver to local community needs seriously.

M&S revises growth target; launches new value range

Just 18 months ago M&S CEO Marc Bolland claimed that sales at its stores would increase by £3 billion within three years. Fast forward, M&S is expected next week to reveal a sales increase of just £200m as a consequence of depressed consumer spending.

This news means that the retailer will have to quadruple its annual growth rate for the next two years to reach Bolland’s £3bn aim. But given Bank of England’s downward revised economic growth figures, higher inflation forecasts and continued declining real income, this looks unlikely.

On a more positive note, M&S launched a major marketing campaign last weekend for its new value range of 800 products called Simply M&S. Using the strap line ‘M&S quality – now at prices you’ll love’, the retailer said the range offers customers greater choice at lower prices, with “no compromise” on quality or sourcing standards. Products will appear in transparent packaging intended to draw attention to their quality, M&S has also said.

ASDA total sales rise in Q1

ASDA has revealed a sales growth of 7.1% per cent during its first quarter of this year. Like for like sales for the company over the first quarter increased 2.2%, whilst in-store basket spend rose 2.1%.

Andy Clarke, CEO and President of the grocery firm put these results down to price leadership, ongoing improvements in quality and its commitment to warm and friendly service. ASDA’s good customer service was highlighted in recent comments by members of SMG London’s online community of shoppers.

These results coincide with news that Asda is going to roll out two ‘concept stores’ in Leicester and Bolden. In the style of a department store, they are part of an overall departure of supermarkets from the typical grocery offering.

Supermarkets likely to take advantage of Clinton Card's troubles

Supermarket competition has impacted Clinton’s card business significantly, and supermarkets are set to take up the slack resulting from Clinton’s 350 store closures announced this week.

Clinton has been sluggish in responding to changes in the market and competition from supermarkets, e-cards and online businesses. In particular, it has failed to account for how supermarket card offerings fit into people’s shopping routines. If it’s your daughter’s birthday, why not simply pick a card up during your weekly shop? And with supermarkets selling cards as low as 99p, the future doesn't look bright for the beleaguered retailer.

 

More Supermarket Sweep of News next week...

Sources:
The Grocer http://bit.ly/KWWEGs
Drapers Online http://bit.ly/KWWLSn
Retail Gazette http://bit.ly/KWWRJS, http://bit.ly/KWXjry http://bit.ly/KWXS4v
Reuters http://reut.rs/KWWWNu
Mail Online http://bit.ly/J2mDtR, http://bit.ly/KXEhBi
Retail Week http://bit.ly/KWXuD1

Twitter stats / Google Knowledge graph / G+brands / IKEA TV / eBay mobile /FB stats

Afternoon all,

Your w/e papers will either be filled with stories of “proof of internet bubble” or “internet ride is over” as it’s FB IPO day today. We will have a FB focus at the bottom but in the meantime let’s shine a light on the other social spaces out there.

Twitter celebrated its year in the UK with some new stats: 140m global users 10m UK active users 1bn tweets every 3 days 1 in 6 users exclusively mobile 80% of UK users are mobile (not exclusive) - global leader 40% of users never tweet - consumption platform

One of those 10m is Liverpool’s striker Luis Suarez who in an attempt to open himself up to his fans with a Twitter interview got a bit more than he bargained for – some brilliant tweets and a real warning to how a “good” but ill thought out social idea can backfire

Google Knowledge graph: A big shake up in the US version of the site on Wednesday. Google launched the Knowledge Graph, their next big step towards the Semantic web – understanding what you are searching for without you having to be literal about it. Better connecting the relationship between words, context and things. Build into that the years of data Google has about follow up searches people make, where they click etc, so Charles Dickens as an example is more likely to be a search about his books rather than anything else so they give you that info straight up and other likely searches built into your results. This explains it

One of the speakers uses the term “from an information engine to a knowledge engine”, it pulls heavily from places like Wikipedia and starts to answer in a more Wolfram Alpha way rather than the traditional search list way. For me though it pushes Google closer to being a destination engine where you spend more time rather than just a search and then you leave engine. Very exciting and could create a whole new time suck for searching. Also noteworthy is the reduced Ad real-estate on the page.

For our very own search expert Kevin Ting’s views check out

G+ and brands: As Google announces it has over 190m Google+ users and that 64 of the top 100 valued brands (Interbrand) have created a Google+ page Simply Measured have released some interesting topline stats about how brands are interacting with it:

Such as 22% of them have amassed more than 100,000 subscribers in their circles or that the top 5 categories are Auto / Electronics / Luxury / Internet Services and Beverages. Wednesday is the best day to post and photos get the most interaction.

G+ table.png

For the full list and more ripper graphs click here

Ever wondered what happens when you send an email?: Google have put together a fun interactive site that takes you through the process as well as really highlighting the green and social good they do at the same time - here

Is connected TV about to become mainstream: About 6 weeks ago IKEA announced the Uppleva – their all in one TV and storage solution.

IKEA tv.jpg

For those that just want simple technology it will be preloaded with internet apps such YouTube, Vimeo, DailyMotion, an open internet browser (most likely Opera) and apparently some casual games such as everyone’s favourite Angry Birds. The reason to care is that this has caught the imagination of the completely tech uninterested, a case in point being my 72 year old neighbour who still uses a Nokia 3310.

[Here for video of the Uppleva] (not my neighbour, that’s on the paid email) - (http://bit.ly/UpplevaIntro)

And keeping with the IKEA vibe they have been quite active on Pinterest of late

bonus nugget - who have just been valued at $1.5bn:

Now for the FB focus:

There is still time to cast your vote on what you think the end of day price will be when the US markets close – opening price will be $38 with a $100bn valuation (currently the belief is it will be on the bigger side with 37.5% each on $46-$55 and +$55 which would value it at well over $100bn)

BBC2 Money Program FB show: If you missed it when it aired on Monday night then you can catch it here. It is on the whole quite interesting and I was surprised at much Zuckerberg time they got. They also focus on the mobile issue – see below

Mobile becoming business critical for ebay and still FB issues: The biggest challenge FB is having around its IPO and future returns are to do with the potential of mobile. They readily admit they haven’t cracked it. Stats have been coming out during the week that the average desktop user sees 7-11 ads per session where as the mobile visitor (of which almost 50% of the user base are) tend to see less than 4. This is a huge focus for them moving forward and one I am pretty confident they will nail.

In the meantime, it is interesting to see other web giants who have got it and continue to plough straight in, for example eBay. Here is a short video introducing their new fashion offering it is great to see how they have totally redesigned the experience for the phone. It is worth noting eBay are on target to handle about $8bn of business via mobile devices, building on the $5bn it did in 2011 and $2bn from 2010 proving that a commitment to the channel can reap huge rewards.

A load of FB UK stats from Hitwise to pepper into your w/e chat:
1. > 1.3 billion visits to FB a month in UK (2nd only to Google) accounting for 14% of all page views. Getting 40m unique visits p/day
2. We spend 500M hours a month on FB, averaging 22mins a session.
3. It is the most popular social network in the UK, accounting for 50% of all visits to social networks. Twice the size of YouTube and 17 times bigger than Twitter in terms of visits from UK Internet users.
4. Facebook is the most searched for website in UK. The term ‘facebook’ is the most popular search term typed into all search engines including Google, Yahoo! and Bing and three of the top 10 most popular search terms online are Facebook related (‘facebook’, ‘facebook login’ and ‘fb’).
5. 1 Facebook fan = 20 additional visits to your website over the course of a year. Using the top 100 retail websites as a sample group, Hitwise data shows that for each additional fan acquired on a branded Facebook page companies can expect to see 20 extra visits coming to their main website over a 12 month period.
6. 25% of all visits leaving Facebook go straight to an Entertainment site, showing the close affinity between Facebook and people’s interest in movies, TV, music and games.
7. Manchester is the new Facebook capital of the UK with Internet users from Manchester 9% more likely than the average person to visit Facebook in a given month.

And finally... If you are going to rob an internet café, make sure you log out of your FB account before you leave

Have a great w/e.

Oli.

Smartphone use gives supermarkets food for thought

Steve Smith's picture

A while back I wrote about different retailers who are rolling out Wi-Fi in their stores . Out of the supermarkets I looked at, Tesco is well positioned to take advantage this in its large Tesco Extra stores due to customers at these stores being more likely to use mobile internet than Sainsbury’s, Waitrose and Morrisons’ customers.

A question left unanswered however, is what kinds of interactions do people want to do in-store?

Recently, Nielsen posted some findings from a survey about how U.S. smartphone owners use their devices in-store, that help answer this question.

smartphone-by-store.png

At first glance, other than use or requests for vouchers, findings do not appear very uplifting for grocery retailers. Of all people surveyed who have used their smartphones whilst shopping, only 14% have used their smartphones for reading reviews in grocery stores, and only a quarter have scanned a QR code in grocery stores. This is because people are more likely to use their smartphones in electronic stores and department stores, where products tend to require more consideration.

On deeper inspection however, opportunities for the likes of Tesco Extra around in-store smartphone behaviour are good because of course, they aren’t just grocery retailers:

  • Because vouchers perform best, offer vouchers across the whole store. Although grocery sections are obvious, they can be used to encourage more expensive ‘considered’ purchases such as electronics, white goods and other expensive items. They could even be used to encourage sales of additional services, such as Tesco Mobile, broadband and financial products.
  • Provide vouchers people can scan in from newspapers or magazines or download to their phones from the internet in partnership with TV ads or programme sponsorship, which they can then use in-store. Supermarkets and other retailers could even create online ‘lockers’ in which shoppers can store their vouchers and then access on-demand.
  • Promote accessing product reviews in non-food areas displaying more considered products. Supermarkets could even create apps that ‘save’ these items for viewing later, perhaps for purchasing online or during the next store visit.

Each of these opportunities is likely to encourage additional footfall. Firstly, by making vouchers sharable via Facebook or Twitter, supermarkets can take advantage of personal recommendation to encourage new customers. Secondly, visitors are likely to make the most of special visits for considered purchases (driven by product reviews, recommendations and vouchers) by buying additional ‘top up’ groceries whilst they are there.

Search Lately: Issue 43

Highlights in search bought to you in by Search Lately at SMG this week include:

  • Google Launch The Knowledge Graph
  • Our Mobile Planet” Smartphone Research
  • Bing Offers More Social & Relevant Search
  • Google Currents launches on Android Market

Delve into previous issues of Search Lately or follow us on Twitter @SearchLately to stay up to date with search news!

Mobile Update #18

Michael Vitello's picture

As usual, a lot of figures and impactful news announced every week in the Mobile market. However, some news is best remembered. Even if we all know that Facebook is a big boy in the Digital landscape nowadays it still creates a lot of noise when Mr.Zuck's announces that their strategy will put Mobile first. Additionally, as we've mentioned, tablets are slowly but surely growing their traffic and figures confirm that tablets are definitely a catalyst for m-commerce. And you, do you make purchase(s) on your tablet?

BlackBerry looks to trump Samsung with NFC campaign

Date 14th May, 2012

BlackBerry is hoping to steal a march on Samsung by heavily pushing its near field communication (NFC) enabled devices ahead of the Olympics. A television spot next week will feature a BlackBerry user buying popcorn in a cinema using NFC as the company attempts to show the technology makes payment easy.

"Click here to read full article"

Operators see smartphones beginning to dominate handset sales

Date 14th May, 2012

The high volume of smartphones currently being sold in developed regions has pushed smartphone penetration past 50 percent for some operators, while others expect smartphones to completely supersede non-smartphones within the next couple of years. However, the high cost of such devices is still a barrier to mass adoption in developing regions, and the removal of subsidies by some European operators combined with the introduction of upgrade fees by some US carriers also threaten to slow the take-up of smartphones in the developed world.

"Click here to read full article"

This is a snippet- read the full post.

Connected TV was the elephant in the room for ITV results

Stewart Easterbrook's picture

Earlier this week, ITV’s Adam Crozier shared an update on the company’s commercial performance across the first quarter of 2012. Despite ad revenue being slightly down in the quarter, a positive outlook for June, strong performance from ITV Studios and growth of online viewing all contributed to the results being well received. The share price responded positively and we were further encouraged by the promise of a strong autumn schedule.

But I couldn’t help but feel the presence of an elephant in the room. A big, fat connected-TV elephant. Reading yesterday’s reports, I was struck by how ITV’s performance was being assessed in the language of the past (perhaps also the current) as opposed to that of the near future. Comparisons versus last year, first quarter versus estimates for second quarter, all wrapped in the context of the “TV ad market”. But things will soon be changing.

Rumours suggest that Apple will be launching its connected TV screen in the first quarter of next year. Samsung, and others, will also be competing aggressively in this space. I have already seen research suggesting consumers are starting to hold back from purchasing new TVs, instead choosing to wait for a better, connected product; drawn towards the enticing prospect of seamless transference between smartphone, tablet and large screen. Those who feel this will be a slow process should remind themselves how rapidly Apple and others have scaled the tablet market – a completely new category. (Or that Xbox already has connected set-top boxes in more than half as many homes as Sky).

So what does this mean for TV? Well, nobody knows exactly but some things are a certainty. Watching TV will become a better experience. We will “search” for programmes rather than “page down”. We will be more likely to choose programmes to watch based on what our friends are currently viewing, as opposed to being directed by channel announcers. Tablets and smartphones will be our remote controls. Our industry will need new ways of understanding and measuring viewing. This will create new TV buying currencies.

None of this is bad. Viewers will be happier and more engaged. Advertisers and agencies will have new opportunities to build richer brand experiences around customers.

But back to ITV’s results. Shouldn’t its performance and share price be understood in the context of the world they are about to inhabit? (By the way, I could say the same the same for all other broadcasters). The “TV ad market” referred to earlier will soon look very different. What will be the role of the ITV1 channel itself be in a connected TV home? To use a retail analogy, what is the value of owning the biggest and best site on the high street if people will soon be buying products out-of-town? This is not to say ITV can’t have a bright future. It can. But I believe now is the time for the analysts to make their assessments within a new context.

However bright TV ad revenue estimates are for the second quarter, I can hear heavy footsteps.

This was originally published on NMA.co.uk

Samsung and Zeebox, and a special pre-Facebook IPO issue: FB buys Glancee, Like clothes hanger, FB#1 in Brazil, FB by FB, the real Zuck and the battle to be lead bank

Afternoon all,

Before we begin, hold your hats it’s Britain’s Got Talent final this w/e. To be honest I haven’t watched any of it, but I will be tomorrow as during the show Samsung will be doing a live Zeebox competition to give away 10 of their shiny new wifi cameras with winners announced before the end of the show. So look out for the Sponsored BGT page, the synchronised Zeetags that will magically appear as the tv ad shows, tweet about it using #WinDuringBGT and generally get involved.

This is just the first bit of Zeebox wonderment that Samsung will be rolling out over the next few weeks and we have got some very cool things lined up and will be letting you know nearer the time.

Now for the main bit...

Next week is FB IPO week, with Friday the 18th being the day it floats and people will be able to buy shares.

For most of us though we won’t be able to afford to get involved but you can still have fun and plenty of bookies will be taking bets on what final price at first day will be. For the less risk averse you can still get involved in our own little poll

And if you hadn’t already guessed today we are all about building on the FB fever that is going to set in next week, so I bring you the FB edition...

FB continues spending in the mobile space – 3rd buy in a month or so: Glancee is the latest mobile offering to join the FB family. It hove in to the public consciousness back at SXSW in March, (we had it on our top services to watch out of SXSW – phew!) when together with Highlight it allowed people make connections with like minded folk in the immediate vicinity using such things as your friends and posts on FB and Twitter. As a differentiator, Foursquare is about places and Gancee is about the people in those places.

Why have they bought it? As well as wanting the skilled people it also wanted the location engine that they have developed. It should also bypass a big problem that FB Checkin had which was that people weren’t checking in – this will no doubt allow you to automatically check in (keep an eye on your security settings if you don’t like the sound of that). As well of course of building the recommendation of others back into FB.

Glancee.jpg

Like that – clothes hanger: Judging by how this took off on Twitter last w/e I am guessing many have seen it already, but just in case you haven’t here is a clothes store in Brazil using live FB likes built in to the clothes hanger to show what the most popular garments are.

Like hanger.jpg

Finally an end to the “but it’s big in Brazil” answer for social network Orkut: In January of this year Facebook finally won its battle to become the #1 social network in Brazil. For years Google’s Orkut inexplicably ruled the roost where it went gangbusters back in 2008 Google even took the decision to move the Orkut team out to Brazil where the majority of its users were based. More recently, late 2011, almost 70% of the 66m users were in Brazil.

big in brazil.png

FB App Center: Unless you have a mega hit that grows organically getting your app or game promoted on FB can be quite tricky. Well fear no more for FB have announced the imminent launch of the App Center. Unlike the Apple App Store and GooglePlay, FB’s App Center will not be a traditional a storefront for apps. Instead, visitors will have the chance to browse and learn about the apps in the App Center before being sent to Apple's App Store or Google Play to download the apps.

Get you cheque book ready you will be able to buy FB shares next week: As such here is the video that is part of their investor roadshow. It really is worthwhile putting 30 mins aside to watch this and hear about FB from FB and how they are changing the world. Pretty compelling and really makes you understand the scale and impact of it beyond just the big numbers - (it being from an IPO doc there are a few disclaimers you need to go through, but is quick and worth it).

In the Advertising and Finance blocks you really pick up on the crucial importance of mobile and a fairly honest realisation as to how early on in the journey they really are.

Who is the real Zuckerburg?: What is there to know outside of the Social Network film about Zuckerburg? Quite a lot it would seem. A great piece from the New York magazine that paints a pretty comprehensive picture of the “boy billionaire” and how the company grew to what it is today- http://bit.ly/MeetZuck

And finally... If you really want some bed time reading this is a lengthy but compelling breakdown of the battle to become the bank leading the IPO

Have a great w/e.

Oli.

Search Lately: Issue 42

Highlights in search bought to you in by Search Lately at SMG this week include:

  • Google Sources Update Draws Near
  • Google Place’s Overdue Upgrade Arrives
  • Creative Link Building Strategies
  • Google+ Hangouts On Air Opens To All

Delve into previous issues of Search Lately or follow us on Twitter @SearchLately to stay up to date with search news!

Mobile Update #17

Michael Vitello's picture

This week, the mobile update starts with an article on how cookie regulations are affecting Mobile in the EU. Following is some insights on Samsung’s new child – the GSIII. Also included, some news around the two biggest social networking app on mobile, Facebook and Twitter. To conclude, a few predictions on how mobile is becoming a significant m-commerce channel for more and more retailers.

How will the EU cookie law affect mobile marketing?

Date 08th May, 2012

The EU e-Privacy Directive and subsequent ICO guidance is complicated and confusing enough when you look at desktop sites alone, but then there's the question of how it translates to mobile. To recap: the 'cookie law' covers the use by businesses of information stored on users' 'terminal equipment' and this covers mobile sites and apps as well as desktop sites.

"Click here to read full article"

Samsung Shows That It Is a Software Company

Date 05th May, 2012

As exciting as it has been to talk, postulate, and speculate about the Galaxy S III’s hardware and specs before the third-generation Galaxy flagship smartphone was announced on May 3rd in London, once the device was announced one thing became apparent: Samsung is now a software company.

"Click here to read full article"

This is a snippet- read the full post.

London 2012 Olympics: Which supermarket will benefit most?

Steve Smith's picture

This originally appeared in Retail Week, 4 May

All supermarkets are in a battle for shoppers and their consumer spend. We’ve taken a look at this in detail and in the context of which supermarket is best positioned to capitalise on London 2012 and the summer’s sporting excitement.

Using Kantar’s TGI data, we have analysed people who shop at the top seven supermarkets. We have divided these shoppers between regions, and between light, medium and heavy shoppers to ascertain which regions should supermarkets concentrate on in their marketing, and which supermarkets are susceptible to poaching by other supermarkets.

During this analysis, we have created Olympic Shopper Scores for each of the supermarkets where the higher the score, the greater the likelihood for that supermarket’s customers to celebrate the Olympics this year. In simple terms the higher the score, the greater the opportunity for that supermarket to cash in on the Olympics from its customer base.

waitrose_wins.jpg

In our study, Waitrose wins Gold by a whisker. Out of all the supermarkets, Waitrose customers are most likely to celebrate the London Olympics and therefore the store is best positioned to profit from the event. Sainsbury’s wins Silver, with its customers being slightly less likely to celebrate the Olympics, and Tesco’s follows with bronze.

Regional variations

However, there are significant regional variations of these findings. Sainsbury’s and Waitrose success will draw primarily from its shoppers in their heartlands of London and the South East - the areas most associated with the games. Morrisons and ASDA will have to work hard at taking advantage of the Olympics across all regions they operate in as can be seen in the following chart.

olympic_shopper_scores.jpg

Where the story gets even more interesting is where the opportunities are for supermarkets to poach customers from other supermarkets, by promoting their own unique celebration of London 2012.

  • In London and the South East, opportunities lay with Waitrose, Tesco, Sainsbury’s and M&S to poach from each other. The greatest opportunities are for Tesco. Waitrose and Sainsbury’s need to work especially hard to protect their shoppers from poaching.
  • In the North and Midlands, opportunities exist for Co-Op, ASDA and Morrisons to poach from each other. Each needs to make sure it protects its shoppers, especially ASDA and Morrisons.

Spend levels

Supermarkets whose customers are most likely to celebrate the Olympics are most likely to see upsurges in spend on food and drink. Waitrose and Sainsbury’s are likely to benefit significantly across all spend levels in London and the South East. Waitrose is also likely to benefit from its core Olympic followers in Wales and the South West. Wales and the South West will be the focus of success for Tesco, although Britain’s biggest supermarket is also likely to benefit from its high spenders in London and the South East.

spend_levels.jpg

The challenge for ASDA and Morrisons is to rouse excitement about London 2012, as their customers are least likely to celebrate the Olympics this year. As things stand, any success they are likely to have is restricted to the north. However, other research carried out in our SupermarketUK study shows that sharing experiences with friends and family is especially important to ASDA and Morrisons’ shoppers. If both these supermarkets work hard at focusing marketing messages upon people coming together to enjoy the Games, they could drastically improve their performance and even move into the medals table.

Steve Smith, Head of Thought Leadership at Starcom MediaVest Group