1. Consumer Engagement in the Connected Age
Richard Cantwell Chairman – Board of Governors, EPCglobal

2. Marketing A typical scenario I am an executive at Acme Enterprises.
Acme launches a new allergy-free detergent.
We need consumers to know about this product.
How do I reach them?
(This talk will get to technology… eventually)

3. A history of marketing
The “Old Days” ( years ago)  Word of Mouth
Targeted
Credible
20th Century  Mass Media
TV, Radio, Syndicated Print
Everyone received the same message
Built big Brands
Today  Product offerings & target audiences are both more segmented
Reaching today’s consumer is a marketing challenge

4. Pizza Hut ad on the side of a Russian Proton rocket!
The problem
The battle for eyeballs:
TV viewer-ship fragmented
Big companies shifting dollars out of traditional media
Internet advertising lacks meaningful metrics & adequate capabilities (McKinsey, 8/07)
Other forms of digital media little understood
Billboards?
Marketing is at a cross-roads
An answer:
Reach consumers in the store
Pizza Hut ad on the side of a Russian Proton rocket!

5. The possibilities Interaction/ context No interaction Location (RFID)
Identity
(Loyalty cards)
Video
Fixed
Cart-video
Cycling advertisements
Video attracting you to items related to your cart?
Video showing product related to previous purchases?
Audio
Beamed iPod?
Store announcements
Music in exchange for location-related ads?
Music related to previous purchases?
Value-Offer
Promotional announcements
Offer related to your purchases?
Promotional prices & special offers on above?

6. This is really happening
I will talk about 3 examples
Wal-Mart TV
Smart Shopping Carts
Promotions

7. Wal-Mart TV
“… the average recall of a brand advertised on Wal-Mart television is 66%, compared with 24% for brands advertised on in-home television.”
Customers 15% more likely to buy product today and 25% more likely to buy product in future
Sources:
“Wal-Mart Adds In-Store TV Sets, Lifts Advertising, Wall Street Journal (Sep 22, 2004)
Research commissioned by Premier Retail Networks (PRN) and conducted by AC Nielsen

8. Displays on the Cart Displays on the Cart: Example Modstream
Displays ads on the handle
5-year life
RF update of messages from one central location

9. Interaction and display
Media Cart
seek
scan
navigate

10. RFID in Promotions RFID is already being used for promotions
Promotions displays are RFID tagged
Store doors have readers
Display movements are monitored
Lack of movement is detected/corrected
22% improvement in sales

11. Now add consumer context
Imagine if the Cart knew:
Location from RFID/WiFi
Identity from RFID
Bluetooth/WiFi to download audio/video on the fly
Imagine if the display could signal:
Rate of sale using RFID/WiFi
Now you could:
Introduce customers to new products, product categories
Offer up promotional pricing & special offers
Measure efficacy of various promotions & displays
Do dynamic pricing to avoid overstocks
Provide consumer services like food allergy notification

12. Further possibilities
Interaction/ context
No interaction
Location
(RFID)
Identity
(Loyalty cards)
Consumer Blogging?
Video
Fixed
Cart-video
Cycling advertisements
Video attracting you to items related to your cart?
Video showing product related to previous purchases?
Testimonials?
Audio
Beamed iPod?
Store announcements
Music in exchange for location-related ads?
Music related to previous purchases?
Commentaries?
Value-Offer
Promotional announcements
Offer related to your purchases?
Promotional prices & special offers on above?

13. In-store Consumer Engagement
This is an key direction for marketing
RFID will play a key role
So will other technologies:
WiFi
Bluetooth
GPS?
How this works is for technologists to figure out
The benefits are huge for everyone!

14. Thank You!