1. Internet of Things
Example – Use of Beacon Technology & the Connected Retail Experience

2. CONNECTED RETAIL Internet of Things and Connected Retail
Developed Beacon-Based Shopper Engagement Platform*
Piloting this summer with an activation and a retail partner
Leverages ultra-precise Bluetooth beacon sensors to engage with shopper’s smart phone
Objective: Influence Shoppers in the retail aisle as they’re making the buy decision
Linking Consumer Insights with Real-time Sensors
Link to consumer database to provide real-time, personalized interactions with shoppers including:
Offers/promotions (e.g. coupons) to match shopping preferences
New product information
Nutrition information
Recipes
Beacons controlled remotely, content can be changed dynamically…today coupon, tomorrow new product introduction
* Patent Pending

3. Shopper Engagement Platform
ARCHITECTURE & FEATURES
Form factor: Size of a quarter. small, light-weight. Built for flexible installation
Battery: A standard CR2032 (coin size watch battery), lasts up to 3 months under typical conditions (transmitting twice per second frequency)
Cost: Approx. $5 per sensor
Series 10
Form factor: Size of a poker card, still unnoticed when placed on the shelf in a retail environment
Battery: 4 standard AA alkaline batteries. 1 year 10X per sec transmission, can be optimized to last 2 years if transmission frequency is tweaked
Cost: Approx. $30 per sensor
Series 20
Brands
Agencies
Activation partners
* Patent Pending
Shopper Engagement Platform
Connectivity and Control
A unique ultra-precise location algorithm that determines location solely from the Beacon hardware
Can push different content depending on shopper’s proximity
No dependency on other types of location services (GPS, Cell Towers, WiFi)
No need to turn on “Location Services” on the consumer’s smart phone
Alerts,
Coupons
Nutrition Info
Surveys
New Products

4. HOW DOES IT WORK? 3 1 2 2 3 1 PRE-SHOPPING
Jane, a frequent-shopper mom, has downloaded the coupons app, and opted in to receive value-added offers from Kellogg
AT THE STORE 3 2 1
BREAKFAST &
CEREAL
Save $1.00 on Special K® Protein Cereal
“Head to Cereal Aisle and save $1.00”
RECOGNITION
Jane walks into the store, and is recognized as a person with known buying preferences (e.g. health conscious female)
OFFER PROMOTION Enters store and receives a message alert that we have a special promotion for her preferred product, e.g. Special K® Protein Cereal
COUPON REDEMPTION Once she is in the cereal aisle, remind her to take up the offer.
We now know the offer-to-redemption behavior pattern for her. 1 2 3
Patent pending “Beacon-Based Shopper Engagement Platform” is currently under pilot, in partnership with a Retailer and an Activation partner

5. WHAT ARE THE IMPLICATIONS?
Privacy
Concerns that companies, like Kellogg, know too much information about a shopper
Big Brother
Shoppers may feel that we are tracking and stalking them
Spamming
Bombarding shoppers with too many messages, interrupting shopping experience
Mitigation Measures
Choice to Opt-in/Opt-Out
No PII collection
Make collected data anonymous
History/Trail disabled
Objective of pilot – how much is too much?
Only value-based messages
Preference Setting: Frequency and type of messsages