MULTI BRANDED OUTLET RETAIL INDUSTRY IN US

HOW MULTI BRANDED OUTLET RETAILERS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS

InRev Systems 2011

AGENDA
B

1
B

1.

INDUSTRY OVERVIEW WHY SOCIAL MEDIA PROFILE OF MAJOR PLAYERS SOCIAL MEDIA INDEX RESEARCH FINDINGS

2
B

1.

3
B

1.

1.

1.

InRev Systems 2011

INDUSTRY OVERVIEW
Market Overview Retail sales in the U.S. (total retail sales include the categories of gasoline, automobiles, and food service, as well as merchandise) totalled an estimated $4413 billion in 2009
Total Retail Sales(in $ billion)
4450 4400 4350 4300 4250 4200 2008
Source: Plunkett Research Ltd

Retail Segment Share in US 2008

Motor Vehicle & Parts Dealers Furniture & Hole Furnishings 10.26% 6.74% 2.66% 13.51% Electronics & Appliances Store Building Materials & Garden Equipments Food & Beverages Stores Health & Personal Care Stores Gasoline Stations Clothing & Accessories Sporting Goods, Music & Book Stores General Merchandise Store 4281 2009 Miscellaneous Store Retailers Non Store Retailers Food Services & Drinking Places 3

17.97% 2.39% 2.52% 7.33%

1.99% 13.32% 4.89% 10.85% 5.57%

4413

Clothing & Accessories in 2008 215.8 US$ bn

InRev Systems 2011

WHY SOCIAL MEDIA (1/4)

NEED
Threat from Specialist (Exclusive) Retailers is increasing as they increase their presence throughout the country Brand loyalty will become vital as consumers move towards premium products, and exclusive outlets for such brands will discourage them from visiting department stores instead of an exclusive outlet, where they can see more product variety under the same brand
SOCIAL MEDIA

Large no of Category

MBO RETAILER

Multi Branded Outlet (MBO) Retailer needs to move to high brand awareness region by ENGAGING WITH CUSTOMERS MORE THAN EVER The bigger your brand's share of the online conversation, the bigger its SPECIALIST share of the market is likely to be
RETAILER

Single Category Low Brand Awareness

High Brand Awareness

InRev Systems 2011 4

WHY SOCIAL MEDIA (2/4)

NEED
Dissonance-reducing buying behaviour occurs when the consumer is highly involved but sees little difference between brands. After making a purchase under such circumstances, a consumer is likely to experience the dissonance that comes from noticing that other brands would have been just as good, if not slightly. Multi Branded Outlet Retailers belong to this category As such Word of Mouth is very important for MBO Retailers Complex Buying Behavior Variety Seeking Behavior

MBO DissonanceRetailers Reducing Buying Behavior

Habitual Buying Behavior

A great strength of social media is that it encourages word-of-mouth marketing of your brand. In an environment in which potential customers trust the recommendations of friends far more than those from the media, good word-of-mouth buzz about your brand can be invaluable
InRev Systems 2011 5

WHY SOCIAL MEDIA (3/4)

POWER CREATE fan pages to post contact information, recent updates, and most importantly allow fans and the Company a means of communication on the main page and through the implementation of discussions on the fan page

DEVELOP catchy and clever ways to express the most recent company information. Consumers can share recent experiences with the company, as well as recommend potential product ideas and innovations UPLOAD and share videos and educate your customers with awareness and videos showcasing what your Company truly is and what your brand image is CONNECT the staffs of your Company and RECRUIT the best talents in the industry in this most professional social networking site
InRev Systems 2011 6

WHY SOCIAL MEDIA (4/4)

POWER
If the retailer can identify the characteristics of the target consumer, recognize the type of risk associated with the product category and the way by which the consumers handle the perceived risk, appropriate positioning strategies can be developed for specific brands Different segments of consumers for different categories of products undergo different types of decision processes

Reassurance Expensive Brand

Rely on Store Image

Go for Brand Image Be Brand Loyal Seek Information

Perceived Risk of Customers

InRev Systems 2011

There is no shortage of information. Social Networking Sites such as Facebook provide access to site demographic and behavioural information
7

PROFILE OF MAJOR PLAYERS (1/4)

Patio
Kids Handbags & Accessories

Home Store
Baby Jewelry & Watches

Women
JCP Teen Clearance

Men
Shoes

Social Media Ranking :

Calculated based on the interactivity level of the HealthCare Centers in Facebook, Twitter, LinkedIn, YouTube and Blogs
2.9

JCP has 1,749,856 fan base in Facebook and 4.2 it use the social media for engaging continuously with 3.85 customers; providing the facility to shop 3.975 online through Facebook page too
4

JC Penney Facebook Page

InRev Systems 2011 8

PROFILE OF MAJOR PLAYERS (2/4)

Designer Collections
Juniors Handbags & Accessories

At Home & Gifts

Baby & Kids Weddings

Women
Beauty & Fragrance Sale

Men
Shoes

Social Media Ranking

Nordstrom tries to 4.1 connect to its customers by regularly updating 3.8 their blogs on various topics such 4.9 as Beauty, Style, Fashi on, Food, Hobbies, 4.3 etc.
0 2 4

Nordstrom Blog
InRev Systems 2011 9

PROFILE OF MAJOR PLAYERS (3/4)

For the Home
Juniors Handbags & Accessories

Bed & Bath

Kids Jewelry & Watches

Women
Beauty & Fragrance Sale

Men
Shoes

Social Media Ranking

Macys use YouTube 5 to promote their own reality show Macys Million Dollar Makeover which is a target to 4.25 attract women to buy and shop at 4.45 Macys
4

Macys YouTube Channel

InRev Systems 2011 10

PROFILE OF MAJOR PLAYERS (4/4)

Appliances Books & Magazines Automotive & Tires Clothing Lawn & Garden Shoes Baby Electronics & Computers
Music, Movies & Games

Beauty Fitness & Sports Office Products Toys & Games

Bed, Bath & Home Home Services Outdoor Living Clearance

Social Media Ranking

Jewelry & Watches Replacement Parts

Tools

4.5 4.2 4.05 3.725

0 2 4

Sears has 78891 followers in Twitter and it gas been using twitter for announcing its promotional deals and offers

Sears Twitter Page

InRev Systems 2011 11

SOCIAL MEDIA INDEX (1/2)

SOCIAL MEDIA GRADES is calculated based on the interactivity level of the mixed retailers in Facebook, Twitter, LinkedIn, YouTube and Blogs. It shows how active the mixed retailers are in the social media space No of Channels represents the number of social networking sites a MBO retailer is present in Retailers
NORDSTROM MACYS SEARS

No of Channels
5 4 4

Social Grades
4.16 3.82 3.65

JC PENNEY

3.45

InRev Systems 2011

12

SOCIAL MEDIA INDEX (2/2)

4.5 4 3.5

Interactivity Level

3 2.5 2 1.5 1 0.5 0 0 1 2 3 4 5

No of Channels Social Engagement Graph: Interaction Plot of Retailers in the Social Media Space

InRev Systems 2011

13

RESEARCH FINDINGS (1/7)

BRAND AWARENESS: Online conversations are happening about your brand right now. The Chart
shows the number of conversations across web

Nordstrom is the most talk about brand in the social media with 3650 conversations within a period of 10 days. Sears should be concerned about the recent spike in its negative sentiment

InRev Systems 2011

14

RESEARCH FINDINGS (2/7)

BRAND SENTIMENT: Positive conversations inevitably mean positive sales results, and even
the discovery of negative sentiment presents an opportunity for a brand advocate to step in and try to change the tone of the conversation

Macys is the most hated brand among the four MBO retailers while Nordstrom and JC Penney does good in this regard
JC Penney Positive Sentiment % Negative Sentiment % 64.2% 6.6% Nordstrom 68.1% 8%
InRev Systems 2011

Macys 55.9% 15.9%

Sears 54.8% 11.7%

15

RESEARCH FINDINGS (3/7)

COMPARE the demographics age group of your brand talkers with competitors

Macys is patronize highly by teens while Sears by middle age people; both JC Penney and Nordstrom are famous among younger people

InRev Systems 2011

16

RESEARCH FINDINGS (4/7)

COMPARE the demographics location of your brand talkers with competitors

JC Penney should be concerned about its less buzz in the US. The talk about JC Penney is almost negligible while Sears & Nordstrom are doing quite strong

InRev Systems 2011

17

RESEARCH FINDINGS (5/7)

COMPARE the demographics location of your brand talkers with competitors

JC Penney is the only MBO Retailer which is more stronger in Facebook than in Twitter. Macys has the highest absolute presence in Twitter
InRev Systems 2011 18

RESEARCH FINDINGS (6/7)

INDUSTRY INTELLIGENCE
There are 5821 mention of the keyword Sports Apparel in the social media within a period of 2 weeks alone

Tracking the keyword Sports Apparel in Simplify360

Twitter Demographics shows 26-35 ages population most active in the conversation followed by 36-45 age group

Majority of talkers about Sports Apparel are from Chicago region

19

InRev Systems 2011

RESEARCH FINDINGS (7/7)

INDUSTRY INTELLIGENCE

There are 3504 mention of the keyword Winter Apparel in the social media within a period of 2 weeks alone

Tracking the keyword Winter Apparel in Simplify360

Understand Consumer Insights and Industry trends which will help you to greatly improve your marketing, research, communications and, ultimately sales

Conversation like the one above shows the lack of supply of winter apparels and Retailers could stock more inventories

InRev Systems 2011

20

Start Using Simplify360 Today

For Details, Visit http://simplify360.com/ http://simplify360.com/blog/ http://www.facebook.com/simplify360 @simplify360

InRev Systems 2011

Or Send a Mail to david@in-rev.com VP - Sales, InRev Systems

21