Digitization in Retail

I walk into a mobile phone shop to buy a new phone. I am greeted by a holographic sales person, who asks me to pick up a tablet from the nearby counter. I sign into the tablet and it shows me all the phones I have used in the past along with my past data usage patterns. Within seconds, it analyses my mobile usage from my bills and additional app usage from the android data bank. Now I am presented with some exciting options of the latest superphones with upgraded features and benefits. By stepping up to one of the futuristic tables, I am able to now know more about the product which is placed on an interactive touch table. Once I select one of the phones, I am asked to go to one of the exit kiosk where I am greeted by an automated payment kiosk that prints out the bill and asks me to pay by card or cash.  Now this is going to be true pretty soon but right now this is my imagination which has created this retail experience using the various latest technologies available. It is just a matter of aggregating the power of different applications and devices to create a unique experience.

Industry experts thought it would be hard to replace people from the retail environment as they are the face of the company who delight the customer with their human touch. But now it all seems a myth as soon we would be touching the pinnacle of the ideal retail environment where there would not be any people. Retail clothing brands have started placing tablets on which you could select and combine different garments to design your own get up. Restaurants are placing tables on tables so that customers can order food on touch of a button. Dominos offers an app for keeping track of the delivery or pick up, and for pick up you name pops up on the app and on the stores digital signage. Recently they even delivered their first pizza through a drone.

To study the retail environment in detail marketer have started studying the shopping behaviour of consumers. It is being referred to as shopper marketing, there are agencies and teams comprising of researchers who are studying every move of the customer in the shops. The question is will sales people get replaced by digital systems? Now many brands have already set up systems that are reducing the human interaction, while there are others who are empowering the front-end sales team with technology. Maybe it depends on the value of the offering and how the customer wants to be valued by the brand. Following are some videos from brands who adapted digital technology to delight their customers’. 

Westpac and Google Glass

Design your own jersey

Nike Digi Wall

Tesco Virtual Shopping

Dominos Drone Delivery

Multi-Touch Interactive Restaurant Table

5 Ways to Increase Online Presence for Small Businesses

New Zealand’s economy operates on a free market principle.  It has a highly export oriented agricultural sector which is comparable with the manufacturing and services industries. Small and medium sized companies are an important part of the New Zealand economy. According to Ministry of Business Innovation and Development statistics, small enterprises contribute up to approximately one third of the country’s GDP.

While these small businesses are highly specialised in their field, they are sometimes forced to work with limited resources due to budget or manpower constraints.  Marketing and communication is not just about getting the message about the product to potential customers. Small businesses have products or services, which speak for themselves. Business owners assume that publicity is associated with spending big bucks.  By being present on social media one can reach out to the prospective buyers, which is not as expensive as getting flyers or posters printed for your business. Following are some very simple solutions, which most people would be aware of but don’t use for professional benefits.

1. Website – This is the first step to be present on the digital map. These days there are services, which have customised templates with a very affordable setup cost. I was surprised to even find a GrabOne deal for customizing websites. If you search carefully and evaluate reviews of various sites, you could have a beautiful site to send as a link to your clients.                                                                                                                                      
                                                                                                                  
2. Facebook – Most of the businesses do not consider opening a facebook page for the company. It can help the employees to share latest updates. Clients can join the page, get updates, and post their comments or recommendations too. It is a simple process and later on there are options to do some paid advertising at nominal costs to draw attention to your company.                                                                                                          
   
     
3. Linkedin – I consider this one to be the most important step towards having strong business profiles that can open doors. On linkedin most of the small business owners prefer to have their own profile as they feel they represent the company. However, along with a personal profile it is important to have a company profile that can be joined by anyone in the industry. It becomes easier for people to find you by the company name and it is easier for prospective clients to see who are the other people associated with your brand. It is a great networking tool as you can advertise your products or services too from the company page. In addition, it is more beneficial if you post news about the organisation on the company’s linkedin page and then share it from there on your profile.    
                                                                                                                 
4. Cloud Services – One of the most effective and efficient ways of running your business is by using one of the various cloud services available online. Setting up an IT system can be costly and with small businesses flexibility of cost and accessibility is very important. With cloud services teams can communicate internally (e.g. office 365 or dropbox.com) and with external customer with ease. There was a recent article in nzherald.co.nz in which a company owner talks about how signing up for cloud services to keep track of online product sales benefited him. Below is one of sites, which help small and medium businesses build ecommerce platforms.                                                                                  
   
     
5. Blogs – This is an easy and simple way to talk about your organisation or the services offered. Blogs are easy to create and basic blogs can be custom designed with various available options. It is a fairly easier way to brand yourself as an expert and open conversation with existing and prospective customers.  While through blogs you can easily highlight the company’s achievement, one can also direct customer to the company website for more information.                                                                                                        

Kids Got the Power

What do you call a consumer who wants to buy everything you have, doesn't care what it costs and is less than five feet tall? A marketer's dream? Nope. You call them kids. - AdRelevance Intelligence Report, 2000

The aim of the communications specialist is always to come up with that bright single-minded proposition which would reach out straight to the target audience. Then there are seldom of those, who think out of the box to break the clutter. Instead of directly talking to the target audience, they decide to reach out to the one and only influencer who have the power of emotions. Earlier it was always the man of the house or the parents who were thought to be the decision makers. This has changed with so many screens reaching out the kids. Now they are far more knowledgeable about various products and services available in the market.  In fact, the industry catering to specific kids demands has grown exponentially in the past.

Parents from the earlier generation would decide for their children. Now due to the exposure to television and internet, children are well informed. In addition, parents also feel that if kids take small decisions on their own it would help them decide and add to the developmental learning process. However, the marketing experts may call it the “nag power” or “the pester power” which can force parents to give in or at least listen to what the kid has to say. In New Zealand, the government is concerned about the tactics used by the marketers to sell junk food to the kids. With toys, stickers and other give aways bundled with the meals, it’s more attractive for the kids. Packaging also plays an important role, the way they are designed to draw attention and attract customers.

Kids these days can talk about the latest apps and the key features of your smartphones. They can at length describe the ingredients and the offers available in the nearest fast-food joint. Even take you on a verbal walk through of their video game with exact descriptions of the characters and their moves and the settings of the game. You might have even heard stories of parents asking the kid to decide the colour of the new car which they intent to buy. Due to the high emotional quotient involved, many advertisers prefer to target the kids in the family to get the message across to the parents. Below are some ads which have tried to do the same which has been termed as kidfluence reaching out to the generation Y, tweens or the teens.

New World Little Shop Collectibles Commercial

Mitre 10 - Kiwi Vs Aussie Kids Commercial

Drug Driving Video Viral

NZ Get Thru - Kids Know Best Commercial

McDonald's Despicable Me 2 Global Ad

Old is Gold

New Zealand like many other countries has an ageing population that has been on the rise lately. The treasury in New Zealand has raised their concerns regarding the increase in ageing population and suggested some measures to take care of the situation. However, on the other end few marketers see this ageing population as the cash rich cow who has deep pockets because of life saving and pensions. As the government takes corrective measures, we can see the older generation too keen on experiencing the benefits of this age of consumerism. There are products and services which offer to make life easier and comfortable for them.

In the past, it was been observed that the population aged 65 years and above was 11% of the total population in 1991 and increased to 13% in 2009. Now it has been estimated that this figure will go upto 21% by the year 2031, which in numbers will be approximately 1 million in the late 2020s. It puts an additional responsibility on the respective councils and the government to look after their wellbeing. This would mean that the treasury should be prepared to spend more money on healthcare and pensions. This is one of the reasons that the New Zealand Treasury is proposing a better fiscal strategies and increase in taxes.

While government officials have their own battle to fight for the nation, there are marketers who are not leaving any stone unturned to capitalise on the opportunity with the right strategy and positioning. Companies have realised that the retired people are the ones who have their  aving or monthly pension. Many brands from the travel & tourism industry, insurance, entertainment, cosmetics brands and more are constantly trying to woo these cash rich consumers. Below are some ads from various countries targeted towards the senior citizens.

McDonald Commercial

Chevy Commercial

Coca Cola Commercial

Super Bowl Commercial

Burger King Commercial

Air New Zealand Flight Safety Video

http://www.airnewzealand.co.nz/safetyoldschool/about-this-video/#.U5EuRHKSySpMeF31EUXDl4

Kia Ora!

This is my first blog after coming to New Zealand. It has been a long time since I have come to this country to pursue a degree in business administration to tick another box in my resume. The first time a walked on Queen street, there was one thing which stood out which was about the people in the city. Auckland is a multicultural city with people from various different ethnicities and walks of life, moving through the hustle bustle of the city. This is the key reason that in my first blog I am going to discuss about the demographics of the country. Coming from communications background this kind of information interest me. This can help a professional understand more about the country and its people so that they can develop better marketing plans.

New Zealand also known as Aotearoa in Maori is an island country with a population of 4,536,606 (4.53 million) as of now while I am writing according to the population clock. Due to its remoteness from other countries, it was one of the last countries to be inhabited. The island country has two main islands known as North Island and South Island. The Polynesians settled in New Zealand between 1250-1300 CE and the Europeans first sighted this country 1642 CE. Later on, the British signed the treaty of Waitangi in 1840.

If we look at a population trend graph shown below as per the projection done in December 2010, we can see that by 2061 the population of New Zealand is projected to reach the 6 million. It has been estimated basis the fact that looking at the 50^th percentile median projection which reached approximately 4.5 million in 2014.

Looking at these figures we can assume that there would be steady increase in the population. One of the key benefits of an increasing population is a larger work force, which can help in economic growth. Therefore, marketing and communication professionals should keep in mind what are the brand imagery and values they are adopting to strengthening their brand personality from the long term perspective.

Figure 1 Population Trend

Now if we look at the 2013 census, we can tell the bifurcation of the various ethnicity in the total population. In addition, we can see the growth of these various ethnicity from the year 2001 to 2013. While Europeans form the major part of the population, the next major population is the Maori population. However, the 2013 census was not able to bifurcate between the various minor ethnicity that form a major chunk of the population, equivalent to the total Pacific and Asian population.

Figure 2 Population Segmentation

With a growing population New Zealand will also see a amalgamation of people from different cultures and ethnicity. This is important to understand as many of the major brands in the country currently are communication with audiences using global brand campaigns. Some of the international brands have already factored in the fact that they are talking to audiences from various ethnicity. This could be seen in the way they have adapted the cultural and behavioral nuances in their communication across media. In the future it would become an imperative for organizations for segment their audiences and understand the profile of the consumer better to get the message across in a cluttered media environment.

In addition, Looking at the graph below, we can say that in the past 12 years the growth of the total population and the Asian population has been steady. In comparison, there was a sudden dip in the European population in the year 2006.

Figure 3 Ethnicity based population growth

The overall population of New Zealand has been increasing at a steady rate, with this growth will come many challenges too for marketers. In a multicultural society it is not just about getting the message across, it is also important to tweak the message to match wavelength of different consumers. The digital wave might be making this seem possible but data needs to be constantly analysed to get to the sweet spot, which can help develop effective communication.

This write up is just to understand the very basic statistical data of New Zealand population taken form www.stats.govt.nz. With this information, I would like to hear from people who are new to the country or want to know more about the demographics of the country. Moreover, if we dig deeper it can help media professional to develop better plans. There are many statistical data sets available on the world wide web which can help people in taking better strategic decisions in their professions.