Emerging Market Opportunities The Next Wave Jason Russell Director European Operations InfoTrends IPEX 2010

Transcription

1 Emerging Market Opportunities The Next Wave Jason Russell Director European Operations InfoTrends IPEX 2010

2 Industry analyst firm focused on the consumer imaging, office document technology and production printing & publishing industries. UK Boston Beijing Tokyo Focused Credible Responsive Visionary 2

3 Emerging Markets The Problem Statement Trans Promo Books My Book Multi-Channel Communications/Conversations Packaging Augmented Reality Photos and Promotional Specialty Items 3

4 Media Dynamics in a Digital World 4

5 Consumers are Always ON! 5

6 Everyone is Digital Universal McCann Social Media Tracker Wave 3 Mar

7 Everyone is Social Universal McCann Social Media Tracker Wave 3 Mar

8 Social Networking is Integral to All Marketing Activities The monthly growth rate of Twitter between January and February of 2009 was 1,382% More than 100 million videos are viewed on YouTube every day, and over 65,000 new videos are uploaded each day More than 5 billion minutes are spent on Facebook every day There are 400 million blogs in existence Flickr contains more than 3.6 billion images Wikipedia has more than 13 million articles 8

9 Reaching the Unreachable Consumer! 9

10 The Problem Statement The printing industry is being knocked around by a rough-and-tumble economy. The biggest difference for us is that our industry was still growing year-over-year in past recessions. Technological changes are compounding the business impact. Print service providers cannot hope to sit this recession out and go back to business as usual. There is no business as usual in the print industry. Print service providers need to acknowledge the structural changes and prepare for a different kind of growth. 10

11 Trans promo 11

12 TransPromo What is it? TransPromo is the inclusion of messaging ON transaction documents. While the term suggests promotional, the application is much broader. It is more than promotional messaging: Trans-Promotional Trans-Educational Trans-Informational Trans-Notification 12

13 Goals for TransPromo Reducing operational costs Postage Call centers Print spend Making Money Cross selling and up selling Customer life cycle management Transforming operational costs into revenue sources 13

14 Mail Open Rates Bills 96.3% 98.70% Statements 95.3% 98.40% Coupon packs 77.9% 79.70% Catalogues 73.1% 72.20% Promotional inserts included w ith bills & statements 53.4% 68.20% Addressed mail from unfamiliar businesses 48.4% 54.20% Credit card offers Unaddressed mail from unfamiliar businesses 26.9% 28.60% 29.6% 26.30% North Am erica (N = 1,067) Western Europe (N = 2,460) 0.00% % Source: Trans Meets Promo Is It More Than Market Hype?, InfoTrends, August 2008 Source: Trans Meets Promo: A European Perspective, InfoTrends, October

15 Time Spent Reviewing Bills and Statements: Mail Average 3 Minutes Belgium Canada France Germany Italy Sweden United Kingdom United States N = Consumers Source: Trans Meets Promo Is It More Than Market Hype?, InfoTrends, August 2008 Source: Trans Meets Promo: A European Perspective, InfoTrends, October

16 Preferred Method for Receiving Transaction Documents 100% Via Mail and Internet Via Internet Via Mail 22.00% 18.00% 80% 60% 22.00% 43.00% 40% 20% 56.00% 39.00% 0% North America Western Europe Source: Trans Meets Promo Is It More Than Market Hype?, InfoTrends, August 2008 Source: Trans Meets Promo: A European Perspective, InfoTrends, October

17 Humana: Helping Consumers Stay Healthy 17

18 Books My book 18

19 Book Publisher s Dilemma Every book is a gamble Publishers traditionally focus on unit cost Cash outlay and inventory control Increase the amount of titles in print Publishers need to rethink cost and revenue opportunities: Short Run Digital Books True Print On Demand Digital Books 19

20 Customized books Penwizard Publisher joint ventures 2010 InfoTrends 20

21 RPI and the Obama Time Capsule 21

22 The Multi Channel Experience 22

23 Cross-Media: More Channels = Higher Response Please provide the average response rate of campaigns that use the following combinations of media channels. Improvement over print-only campaigns Print, , and Web landing pages 8.8% 35% Print, , Web landing pages, and mobile marketing 8.7% 34% Print and 8.3% 28% Print and Web landing pages 7.7% 19% Print only 6.5% 0% 2% 4% 6% 8% 10% N = 217 marketers Source: Multi-Channel Communications Measurement & Benchmarking. InfoTrends,

24 The SMB Multi-Channel Opportunity 24

25 SMBs Represent a Significant Opportunity for Quick and Commercial Printers For the first time in more than two decades, SMB (small and medium-sized business) activity will be greater than the rest of the economy during a period of economic slowdown SMB vertical markets have common requirements - Not just print multi-channel communications An opportunity to build templated offerings via Web accessibility with a repeatable sales process - Realtors - Lawyers - Doctors - Associations - Hair Salons - Lawn Care Specialists 25

26 Capturing a Range of New Service Offerings What other services has your company purchased from external service providers in the last 12 months? Website design/programming Creative/design 25.5% 23.6% Mailing marketing Digital photography Search Engine Optimization/Marketing Data/list acquisition Marketing strategy/planning Personalized URL/Web micro-site generation Archiving Data analytics Digital asset management Fulfillment & kitting None Other 16.1% 12.1% 11.7% 9.5% 6.7% 6.5% 6.1% 4.1% 3.8% 3.7% 1.9% 0.8% Multiple Responses Permitted 47.0% 0% 10% 20% 30% 40% 50% 60% Percentage of Respondents N = 2243 small/medium businesses Source: InfoTrends Capturing the SMB Business Communications Services Opportunity,

27 Marketing for SMBs Many marketing services available to SMBs are free or offered at a low cost Web-based, Software-as-a-Service: HTML templates by vertical market Subscription list management and segmentation Newsletter creation and management reporting and analytics (e.g., open rate, clickthroughs, bounce backs) Regulation compliance (e.g., CAN-SPAM) Online and phone support Source: InfoTrends Capturing the SMB Business Communications Services Opportunity,

28 VistaPrint Launches Marketing Suite 28

29 Sharper Agent Launches Multi-Channel Services Online 29

30 Beginning to Focus Vertically 30

31 From Monologue to Dialogue Social media is people having conversations online. 31

32 The Conversations are Powered By: Blogs Microblogs Online Chat RSS Widgets Social Networks Social Bookmarks Message Boards Forums Podcasts Video Sharing Sites Photo Sharing Sites Virtual Worlds Wikis Just to Name a Few 32

33 Direct Mail Starts the Conversation and Keeps it Going Direct mail a membership card to your exclusive community Surprise them with pertinent mail offerings Get members to nominate friends Create a contest Turn contest entries into direct mail Create a greeting card promotion Stage special online events; drive direct mail recipients to an interactive Webcast or chat session with a visionary or your CEO Rock the vote Tease them; post a top ten tips and promote some via direct mail and drive them online for the tips they missed Take to the airwaves start a video podcast, burn the first five programs, and mail them as a promotion and invite registration for future programs Source: Ten Ways to Mix Direct Mail and Social Networking; Paul Gillen 33

34 QR (Quick Response) Codes High density barcode is readable by cell phones and simple PC cams Recipients can quickly and easily interact with the QR enabled transactional documents they receive. They simply point their camera at the QR symbol and they are instantly connected to a QR-encoded Web page without the recipient ever having to remember or type in numbers and promotional codes they just point and shoot. The Web page could be a sales video, a coupon, or a product promotion encoded with the specific recipient s demographic profile. 34

35 Adding Mobile to the Mix with QR Codes What can the recipient do? Pay a bill Accept an offer (from a statement or a direct mail piece) Link to a landing page Provide survey information predicated on the offer 35

36 Making All Communications Interactive with QR Codes Combining print and mobile in the media mix - Packages - Magazines - Bills - Statements A cost-effective acquisition channel for marketers From Ralph Lauren to Pepsi! 36

37 Packaging: Where Consumer meets Product 37

38 Making the Decision at the Point of Purchase the Package 38

39 It s All About the Package! A protective container and yet so much more - The external manifestation of the brand - The emotional bond that connects the consumer to the product - A tracking/tracing tool - A security agent - An information transmission and education mechanism - A source for interactive multi-channel communications dialogue - It will never become a digital document Packaging grows with the human population Packaging grows with economic development Packaging is a substantial growth market for digital technology! Less than 1% of package printing is done with digital technology 39

40 Prime Labels are the Low-Hanging Fruit for Digital Color! Prime Labels = the Essence of Brand Image, Brand Marketing - 100% small format (not true for other packaging categories) - Hundreds of color digital label presses now at work - Digital installed base yielded about $750 million in total billings for converters in 2008 worldwide 40

41 Digital Color Prime Labels = Market Growth Opportunity $M Value of Print from Color Digital in Prime Labels, ($M at End User) 2,500 CAGR: ,000 1,500 1,000 ROW EMEA NA 27% 23% 23%

42 Critical Market Drivers for Digital Printing in the Packaging Market Digital short run makes absolute sense for brand owners - Products and labels change all the time due to reformulations or seasonal changes - Digital short run technology lets brand owners be entrepreneurial and quickly make changes when they need to make them, and in the quantities they require - Testing brand image is essential - Brand owners live in a dynamic and changing category, and digital technology gives them the edge they need to beat the competition The digital technology advantage for brand owners: - Manage multiple SKUs - Make frequent changes to products and labels - Offer a competitive advantage over the competition - Provide eco-friendly products, print technology, or packaging 42

43 Augmented Reality Merging the Virtual and Physical Worlds 43

44 Augmented Reality Markers on a printed page cause images to come to life or application software for image recognition Merge the physical and the virtual worlds 44

45 Making Packages Come to Life for Toys and Cereal Boxes 45

46 Harry Potter and USA Today 46

47 And Then There are Magazines 47

48 And Most Importantly Books 48

49 Photos: A Picture is Worth A Thousand Words and Profitable 49

50 Photo-Related Print Opportunities Every time a digital camera or mobile phone is sold, opportunity expands - Digital camera penetration grew from 41.1 million in 2007 to 44.9 million by Camera phones will increase from 126 million in 2007 to 191 million in 2012 Continued advances in photo features and higher resolution Photo merchandise from a photographic perspective, and photo-rich documents from a printing market view - Print applications such as greeting cards, photo books, story books, and calendars 50

51 Changing Market Opportunities Print providers can address new B2C opportunities or the B2B market with ad specialties 51

52 Photo Advertising Specialty Items: Custom Calendars 52

53 How About a B2B or B2C Postcard? 53

54 U.S. Photo Merchandise Market (Retail Value by Type) $2,800 $2,400 $Millions $2,000 $1,600 $1,200 $800 $400 Specialty Photo Prints Photo Calendars Photo Books Photo Cards $ Source: InfoTrends Photo Merchandise Products for the U.S. Market (October 2008) 54

55 What business are you really in? Print Integrated Graphic Communications OR Mobile Print Social On line 55

56 Recommendations Think beyond the printed page Stay on top of the changing marketing landscape Place emphasis on relevant communications Deeply engage your clients and understand their needs Develop and grow partnerships Be part of the digital interactive world! 56

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