Bricks & (Mortar) Mobile: The industries in Australia winning the battle.

Transcription

1 Bricks & (Mortar) Mobile: The industries in Australia winning the battle. F U T U REBUY Norrelle Goldring, Head, Shopper Experience & Retail Performance October 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

2 We view retail evolution as similar to Charles Darwin s description of evolution: It s not the strongest of the species that survives nor the most intelligent, but the one most responsive to change. Ruslan Kogan, October 2014 (Qantas Magazine) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

3 GfK Futurebuy 2014 Overview 17 Countries 15 Categories Canada US Mexico Columbia Brazil Poland Germany France Spain Romania Bulgaria Russia China Korea Japan FMCG Beauty and Personal Care Packaged Food/Bev Household Washing and Cleaning products OTC Healthcare Consumer Durables Consumer Electronics Mobile Phones Home Appliances Argentina 20 minute Australia Online Survey N = 1000 per country (18+) Services Financial Services Healthcare Services Meals at Restaurant Other Automotive Toys Apparel Home Improvement Home and Garden Futurebuy is GfK s proprietary survey of shopper attitudes and behaviours- run annually since 2009 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

4 GfK Futurebuy Shopper Survey Topics: Only a small portion of these we are talking to today Omni-Channel Shopping Drivers of channel choice Prevalence of omni-channel behaviour How utilizing mobile devices? Touchpoints Sources of info Most influential in shopping process Product choice drivers Special Topics Social media role Showrooming Privacy/security Generational differences Leading edge consumers (LEC) Mobile payments How participating? Barriers to participating Attitudes toward adoption GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

5 Definitions for this survey By shopping we mean: The process of browsing, comparison shopping, information gathering, or the actual purchase of products and services By omnichannel we mean: Shopping across both online and physical store channels GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

6 Agenda Context How Australians are shopping What s more important to Australians now? Where is the game going GfK s Four predictions And if we have time retailer and manufacturer readiness for omnichannel shopping and digital shopper marketing GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

7 1. How are Australians shopping? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

8 Context: Size of Australian online retailing 75% Domestic Australian spend proportion of total online spend by Australians (source: NAB, July 2014) $15.5b Spent on online retail in the 12 months to June % Amount this equates of spend at traditional bricks & mortar stores (source: NAB online retail sales index) 10% 24% Increase by end 2015 Annual growth Online shopping anticipated growth. (source: IbisWorld) Grocery, liquor, electronic games online retail spend 57% 76% Number of Australians (and 18-29yos) claim to shop online at least once a week (source: Ebay Aust) Daily deals, personal & recreational goods online retail spend Fashion, department and variety stores, homeware appliance stores online retail spend growing but slowing (source: NAB online retail sales index) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

9 Usage of Internet for shopping continues its upward trend vs 2013 Searching for best price 69% 7pts Finding products & services 67% 6pts Check for general information about products 66% 9pts Make purchases 60% 9pts Use social media to exchange /post info about product/service 23% 7pts Q13. Which of the following shopping activities have you engaged in over the past 6 months using the internet? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

10 With smartphones and tablets increasing shopping usage substantially, as desktops decline vs 2013 Computer at home 81% 9pts Computer at work 17% 7pts Smartphone 34% 11pts Tablet 24% 9pts Q12: Which of the following devices have you used to help you shop for a product in the past 6 months? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

11 The top shopping tasks conducted on mobile devices are highly functional, rather than sharing or social media based Tablet Smartphone 30% 20% 10% Compare prices Search for product info Check product availability Locate a store Access product reviews Paid for product Buy product through an app Get sales alerts Text a Write a list or family/friend, note to check with them Q16_01. Let s focus on the last time you used your [DEVICE to help you shop for [CATEGORY]. In which of the following ways did you use your [DEVICE] when you were shopping? Top 10 tasks GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

12 AAMI Insurance example: mobile transactions options and a way of linking information Claims App Travel insurance on mobile Because travellers are on the go before and during holidays GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

13 Some categories are playing the omnichannel game better than others Omni-channel driven categories In store driven categories Online only 50% Both 25% Consumer Electronics Apparel, Footwear Automotive Toys Home Appliances Mobile Phones Financial services Beauty & personal care Home Improvement Healthcare Services Lawn & Garden OTC healthcare Packaged food & bev Restaurant meals Household cleaning Q2: And have you shopped for each of the below exclusively online, exclusively instore, or both? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

14 Online-only shopping tasks has increased exponentially in some categories, even if off a small base in some cases S h o p o n l i n e O N LY % 21% 14% 18% 14% 15% 7% 4% 7% 3% 9% 1% 5% Mobile phones Consumer electronics Automotive Home appliances Apparel Toys Household cleaning Beauty & personal care OTC healthcare Home improve ment Lawn and garden Packaged food and bev Health care Services Financial Services Meals at a restaurant Q2: And have you shopped for each of the below exclusively online, exclusively instore, or both? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

15 Example: Online retailing in Australian grocery increasing Now 15% of Australian online retail sales transactions 16% WW Ltd 8.7% Wes Farmers 9.9% Grocery and liquor online sales growth. Fastest growing sector (source: NAB online retail sales index) Share of online shopping industry (source: IbisWorld, May 2014) 50% $0.8% $1.2b WW online revenue increase (source: SMH Rose Powell) 202 Click & Collect stores, of a total 931 stores (source: SMH) WW dark store, Mascot, Aug 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

16 The growth of omnichannel shopping behaviour means the new grocery meal shopping purchase journey is moving to POINT 1 Daily menu suggestion sent to phone/tablet POINT 2 Order online POINT 3 Have delivered to home, or click & collect (pick up instore) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

17 2. What s important for Australians now? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

18 Online Shopping Evokes Functional Associations, and modernity Bricks and Mortar evokes softer/more social attributes Top Descriptors of Shopping Experiences (Aust) BRICKS & MORTAR ONLINE Easy Satisfying Easy Fast Personal Modern Friendly Safe Effortless Social Satisfying Organized Q5. Thinking about the times you shopped online/instore in the past 6 months, which attributes below best describe your overall experience? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

19 Drivers Of Channel Choice By Format Reveals Divergent Strengths Advantage- Bricks and Mortar Advantage- Online See and feel before buying. 16% 6% 44% 39% 35% 58% Get products sooner. 26% 53% Can buy other things at same time. 26% Routinely shopping there already. Hassle-free returns. 9% Speed, convenience, tactile More enjoyable experience. 22% Store Best advice. 14% Store 18% Online 8% Online Good relationship with retailer. 11% Store Bricks & Mortar More even Online Q4: Thinking about the last time your were deciding whether to purchase something online versus in a store, what factors were most important? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar % Online Save money. Easier. 21% 18% 27% 11% 23% 5% 27% 28% 24% 28% 44% 16% 21% 46% 53% Better selection. Faster. Better information. 61% Better delivery options. Already have account set up. Better payment options.

20 Experience and In-Store environment still top the Touchpoint Influence Hierarchy Previous Experience Retailer Brand Shelf info Coupons In store displays WOM-friends and family Store catalogues Gen. shop sites Product samples/demos Consumer opinion sites Packaging Online advertising Online expert reviews Ability to pay with mobile Retailer sites Brand sites Price sites TV/Print Brochures Social media Shopping apps Retailer apps Manufacturer apps Q8. When shopping for [category], how important was each of the following factors in your shopping decision? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

21 But it s use of digital touchpoints and activities that is increasing Purchase over web Webrooming Shopping list creation (Increase of 20pts+) Find products via web Use web to find products Use Google to shop Shop with mobile phone Cross-retailer price comparisons Research products on web Brand/retailer apps (Increase up to 19pts) Manufacturer website coupons coupon Mobile payments Online coupons Click ad to buy Store circular/coupons Shopping apps Geo location apps Advice from friends/family Paper coupons Shop from mail catalog Q7. Below are different statements about shopping. Compared to a year ago, would you say you are doing more, less or about the same of each activity? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

22 Example: Lowe s Holoroom An Immersive Augmented Reality Reason To Visit Store United States GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

23 Example: Ikea Interactive Catalogue 2014 Scan to unlock extra content GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

24 Audi Virtual Store Audi City In February 2014, Audi City Berlin launched the 3 rd of Audi s Virtual Showrooms Featuring digital technologies; Kinect power wall, multi-touch tables, 3D virtual driving experience and RFID. This showroom is almost completely digital and virtual, meaning there is only one or 2 cars in the showrooms GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

25 Transacting online instore: The endless aisle that enables smaller physical store footprints J o h n L e w i s A l l S a i n t s, 2012 Ta r g e t, 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

26 Example: Medadvisor app manages medicine prescriptions Features include: Smart medications list Script refill reminders GP visit new script reminders Take my meds Tap to refill Medication info My favourite pharmacy Pharmacy locator Carer mode GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

27 Nestle recipes in Woolworths using Tapit, August 2014 Shoppers tap the enabled aisle fin and take home new recipe ideas from Woolworths Fresh magazine. GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

28 Best Buy Becomes The Ultimate Showroom My Best Buy Rewards app, US In-store mode gives rewards points for checking in to geo-fenced Best Buy locations Scan items for product information and videos option to purchase through the app Targeted promotions get pushed to phone while in-store GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

29 Target In A Snap - Make Purchases From Print Ads Using your mobile camera, In a Snap recognizes select ads, makes a "snap" sound, and then provides additional information about the product in the ad United States GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

30 L Oreal Virtual Kiosk In NYC Subway For Makeup On The Go that matches your outfit GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

31 3. And where is the game going? GfK s four future predictions GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

32 Leading Edge Consumers (LEC) - Our Tour Guides To Future Of Shopping Early Adopters Innovators that value new products or ideas before their time, and that are also predictive of the rest of the population Influentials Leading indicators of trends with a history of being years ahead of the mainstream; word-of-mouth leaders who are often called upon by others to offer advice, insight, information Passionate Shoppers Emotionally connected to shopping and thus, highly involved 15% of sample identified via proprietary questions and analytics Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

33 1 st. Prediction The relevance of Bricks & Mortar retail, in its current form, will continue decreasing Traditional stores much less important to my shopping than few years ago. 45% 44% 70% I can shop for nearly 100% of things I need online. 71% I can see future were traditional retail stores not a big factor in my shopping. 71% 45% Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

34 2 nd. Prediction Loyalty will be scarce, unless shoppers feel involved Feel more in control than ever before when shopping. 32% 72% Now less loyal to any one brand. 60% Now less loyal to any one retailer. 62% 81% 80% 76% More loyal to brand/retailer that gave me input to what I buy. 76% Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

35 3 rd. Prediction Mobile devices will become Work Horses of shopping, with many jumping on mobile payments My mobile device is quickly becoming my most important shopping tool. 20% 29% 34% 65% I make mobile payments whenever possible. 62% I am planning on making more mobile payments in the next 12 months. 61% Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

36 4 th. Prediction Security concerns could be overlooked if it comes with a tailored benefit More concerned about security of personal information after shopping online (vs the store). 69% 71% 83% I like it when website keeps track of my visits and recommends things for me. 38% Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

37 Takeouts GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

38 GfK Futurebuy 2014 Some Key Takeaways Omni-Channel coming soon to your category! Mobile optimisation necessity Four future predictions Rapidly cascading from high value and involvement categories to FMCG Winning requires delivering seamless and compelling omni-channel shopping experience Mobile set to overtake desktops, and then, laptops Mobile devices influencing majority of purchase decisions Mobile payments increasing Optimisation of websites and mobile for payment necessity not luxury 1. The relevance of Bricks & Mortar, in its current form, retail will continue decreasing 2. Loyalty will be scarce, unless shoppers feel involved 3. Mobile devices will become Work Horses of shopping, with many using mobile payments 4. Security could be overlooked if it comes with a tailored benefit GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

39 Mobile is the mouse of the physical world Steve Sadove, Chair National Retail Federation, at the World Retail Congress, Paris, October 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

40 Ask us about: Access to the Futurebuy portal Customised presentation for your category THANK YOU Norrelle Goldring Head, Shopper Experience & Retail Performance P: M: Further reading: The digital future: a game plan for consumer packaged goods, August 2014, Google/GMA/BCG/IRI IBM Smarter Consumer Study, 2014 NAB online retail sales index, July 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

41 Appendices GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

42 Mobile Shopping Predominant In Select Categories Top Categories Shopped On Mobile Device (AUST) 27% 29% 29% 31% 34% Toys Home Appliances Auto Mobile Phones Consumer Electronics Q15a And which devices have you used to help you shop for the below products and services in the past 6 months? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

43 Free Delivery Remains King In Driving More Online Purchases Most Important Factors to Get Me to More Online Purchases Next Year(Aust) Free Delivery 69% Discounts on bulk purchases Better Loyalty Programs Daily/Weekly Deals Holiday/seasonal Same Day Delivery 46% 46% 43% 42% 41% Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

44 Google Express Enters The Same-Day Fray United States GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

45 Differences In Shopping Attitudes And Behaviours Evident Along Generational Lines Broadly, Gens Z, Y X similar to each other but different to Boomers and Silents GEN Z GEN Y GEN X Boomers Silent/GI Social natives Book smart & savvy Street smart & skeptical Education generation Educational divides Fun and frugal Fun first, hard work next Get it done Break the mold be me Do what s right Connected Confidence No drama Agelessness Integrity Global minder Both/And stress Balance Do it all or die trying Under control Friends = family Close to doting parents Prepared, rule-setting parents My self = my kids Disciplined to do what s right Age in 2014: Source: GfK Consumer Trends, 2013 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

46 What devices are they using, to do what? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

47 Top 2 shopping activities on mobile devices similar across generations Product and services reviews more important for Gen Y & and less so Gen Z Activity Incidence Rank By Generation (Via Mobile Device Aust) NET Gen Z Gen Y Gen X Boomers Compare prices Search for product info Check product availability Locate a store To access product/service reviews 7 Q16_01. Let s focus on the last time you used your [DEVICE to help you shop for [CATEGORY]. In which of the following ways did you use your [DEVICE] when you were shopping? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

48 Tablets are used more to shop electronics and higher complexity categories. Smartphones used less for shopping than tablets FMCG categories still in the 20%s shopped via tablet Tablet Smartphone 60% 50% 40% 30% 20% 10% 0% Q15a And which devices have you used to help you shop for the below products and services in the past 6 months? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

49 Showrooming declining, whether friendly or hostile. Trends suggest some Bricks & Mortar retailer progress (Aust) 35% 16% Consistent with global reduction 35% 25% Saw product in store then purchased on phone elsewhere. 23% Saw the product on phone and later went to store to purchase. Q17b. During any of your shopping occasions over the past 6 months, have you used your smartphone for any of the following? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

50 Showrooming Also Appears To Be Declining On Tablets (Aust) 28% 20% Globally down 9pts Saw product in store then purchased on Tablet elsewhere. 25% Saw the product on Tablet and later want to store to purchase. Recent efforts buy Bricks and Mortar retailers appear to be shifting shopper perceptions that buying in store is price competitive and offers important advantages Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

51 Mobile phone payments small but increasing, and are a source of more data for retailers 50% 1% >$5m $2,616 50%+ Of credit card transactions <$100 are via PayPass (source: Mastercard Australia) Of purchases <$100 are Paywave (source: Visa Australia) Direct mobile phone payments % of purchases, where they are 6% via apps (source: RBA) In mobile purchases in 2013 Ave spend pp via mobile (2013) 25% 69% 47% 5.5m Cash used of all transactions (source: RBA) Paypal accounts in Australia Forecast online retail sales made on mobile devices by 2017 (Source: Emarketer) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

52 Some Shoppers Recognize Mobile Payment Advantages Paying with mobile device is faster. 29% Make shopping more efficient. 24% All payment methods in one place on mobile device is a Major Convenience. 24% Is easier than other payments methods. 27% Q18F. Thinking about your experience with mobile payments in general, how much do you agree or disagree with the following statements? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

53 Mobile Payment Activity In Australia lower than global benchmarks (function of existing platforms) % of Shoppers Reporting Making Mobile Payment (Past 6 Months) 35% 39% 46% China 83% Korea 62% Japan 10% 19% 24% Australia WE CEE LATAM APAC Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

54 Mobile devices are still only 4% of shopping transactions in 2014, but set to rise Cash Credit Card Debit Card Mobile device Other 4 4 Top mobile payment categories: Toys Auto Financial Services Healthcare Apparel 27 CE & Mobile Q18B. What percentage of transactions do you estimate you pay for using each method below? GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

55 Infrastructure aside, a range of shopper concerns are likely holding mobile payment from full potential Mobile payment more of a GIMMICK today than major way I pay. 42% Mobile payment technology STILL CLUNKY. 44% Worried about SECURITY, PERSONAL INFORMATION. 52% Q18F. Thinking about your experience with mobile payments in general, how much do you agree or disagree with the following statements? I am planning to make more mobile payments in next 12 months And 25% 26% Ability to make mobile payments important factor in making more online purchases next year GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

56 Privacy A Highly Polarizing Issue I like when websites keep track of my visits, then recommend things to me. Open Book Colombia 64% Brazil (-6pts) Romania China 65% 61% (-5pts) 57% (-18pts) Mexico Bulgaria 60% (-7pts) 56% (-7pts) 35% (-4pts) Germany Japan Canada 23% 34% Australia France United States 36% (-6pts) 25% 35% Most Private Q3. Please indicate how much you agree dr disagree with each statement as it relates to your shopping experienes GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

57 Leading Edge Consumers Are More Wired And Heavier Web Shoppers (% Own Device) (% Reporting Shop behaviour) Exclusively Online 80% 62% 44% 35% LEC Non-LEC LEC Non-LEC 66% 47% 85% 74% Omni-Channel Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

58 Leading Edge Consumers Are Big On Saving And Sharing 46% LEC Non-LEC 24% Using social media to exchange/post info about product/services. 57% Comparing prices across stores (v.41%) % of LEC reporting Doing more of 54% Using coupons on manufacturers websites (v.34%) Source: GfK Futurebuy 2014 GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

59 Australian Retailer and Manufacturer digital shopper marketing readiness GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

60 There is recognition that digital is shifting the balance of power toward the shopper, but the industry is lagging the shopper in the skills and resource to capitalise on it Despite recognition of its importance, nearly half lack resources, specialist expertise and strategy. Net Agree Neutral Net Disagree A perceived lack of importance is limiting my organization's ability to lead in the digital/mobile space 38% 21% 51% A lack of clear strategy is limiting my organization's ability to lead in the digital/mobile space 45% 21% 34% A lack of specialist expertise is limiting my organization's ability to lead in the digital/mobile space 42% 21% 37% A resource shortage is limiting my organization's ability to lead in the digital/mobile space 46% 25% 29% My industry lacks best practices for leveraging digital/mobile in-store 57% 16% 28% My organization is prepared to manage the impact of digital/mobile technologies on shopping behaviour 50% 26% 25% Digital/mobile technologies are shifting the balance to shoppers and away from retailers & manufacturers 60% 26% 16% Q: DOM5 To what extent do you agree with the following statements with regard to readiness to meet the mobile and digital challenge? Base: Total Sample (n=145) 0% 20% 40% 60% 80% 100% GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

61 Use of digital touchpoints has not moved much since 2011, particularly for manufacturers. 1 in 7 were using no digital touchpoints. 90% 80% Total Manufacturer 70% 60% 50% 40% 30% 20% 10% 0% -10% 67% Websites 66% Social Media 50% offers /edm 36% Promotion based microsites Search engines sponsored results 27% Online catalogue/ printable e-coupons 25% Mobile offers (eg via SMS) pre-store 21% Mobile apps (eg price check applications) 20% 19% Web based community feedback & review forums Online reviews & feedback 13% Location based offers/nfc 9% Mobile search 9% 9% Mobile Augmented/ locationbased Virtual reality offers 3% Group deal-of-day offers Retailer Agency Expected to increase over time % 55% 49% 37% 25% 22% 18% 12% 28% 23% n/a 6% 5% n/a 4% n/a 15% 1% Other 14% None of the above Q DOM1 Which digital, online or social media techniques have you trialled or adopted for shopper marketing in the past 12 months? Base: Total Sample (n=148) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

62 Yet 43% say they use digital, social, mobile elements in shopper campaigns more than half the time, with agencies more likely to But what they are using is fairly basic, per prior slide USA 9% 8% 15% 8% None % (!!) 25% 26% 23% 23% Less than 25% 20% 19% 20% 25-49% 23% 19% 24% 15% 13% 23% 50-74% 75-99% 21% 18% 7% 4% 23% 12% 100% Total Manufacturer Retailer Agency Q: DOM2 How many (what %) of your shopper marketing programs and campaigns include digital/social/local/mobile elements? Base: Total Sample (n=145) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

63 2/3 of retailers and nearly half of manufacturers don't have dedicated digital/mobile functions in their organisation, irrespective of where they sit Yes 49% Yes 57% Yes 38% Yes 42% No 51% No 43% No 62% No 58% Total Manufacturer Retailer Agency Q: DOM3 Is there a dedicated digital/mobile function or capability in your organisation? Base: Total Sample (n=145) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar

64 Where there is a digital capability, it sits in Marketing Positioning in marketing means not much used in shopper. Current focus of digital by manufacturers is brand advocacy, not linked to purchase behaviour changes 100% USA % 36% 80% 13% 15% 4% 2% 5% 2% 2% 4% 2% 2% 20% In its own function Executive 60% IT USA % 48% 40% 20% 74% 73% 80% Shopper Sales Marketing 0% Total Manufacturer Retailer Q: DOM4 Where does the digital/mobile capability in your organisation sit (report to)? Base: Total Sample (n=46) GfK 2014 Futurebuy 2014 Australia Breakfast Seminar