social media use by us retail industry

7/31/2019 Social Media Use by US Retail Industry

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MULTI BRANDED OUTLET RETAIL

INDUSTRY IN US

HOW MULTI BRANDED OUTLET RETAILERS

CAN LEVERAGE SOCIAL MEDIA TO GROW

ITS BUSINESS

1 InRev Systems 2011


2/21

AGENDA

B

INDUSTRY OVERVIEW1.

1


B

WHY SOCIAL MEDIA1.

2

B

PROFILE OF MAJOR PLAYERS1.

3

B

SOCIAL MEDIA INDEX1.

4

RESEARCH FINDINGS1.

5


3/21

INDUSTRY OVERVIEW

17.97%

2.39%2.52%

7.33%

13.32%

5.57%10.85%

4.89%1.99%

13.51%

2.66%

6.74%

10.26%

Motor Vehicle & Parts

DealersFurniture & Hole Furnishings

Electronics & Appliances

StoreBuilding Materials & Garden

EquipmentsFood & Beverages Stores

Health & Personal Care

StoresGasoline Stations

Clothing & Accessories

Sporting Goods, Music &

Book StoresGeneral Merchandise Store

Miscellaneous Store

RetailersNon Store Retailers

Food Services & Drinking

Places

Retail Segment Share in US 2008Market 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

Source: Plunkett Research Ltd


4413

4281

4200

4250

4300

4350

4400

4450

2008 2009

Total Retail Sales(in $ billion)

Clothing & Accessories

in 2008 215.8 US$ bn


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WHY SOCIAL MEDIA (1/4)


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

Threat from Specialist

(Exclusive) Retailers is

increasing as they

increase their presence

throughout the country

Large no of

Category

SPECIALIST

RETAILER

Low Brand Awareness High Brand Awareness

Single

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

share of the market is likely to be

SOCIAL MEDIA

NEED


5/21



ComplexBuying

Behavior

VarietySeekingBehavior

Dissonance-Reducing

BuyingBehavior

HabitualBuying

Behavior

A great strength of social media is that it

encourages word-of-mouth marketing of yourbrand. 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

MBORetailers

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


6/21


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 companyinformation. 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

POWER


7/21



Reassurance

Expensive Brand

Rely on Store Image

Go for Brand Image

Be Brand Loyal

Seek Information

Perceived Risk of Customers

If the retailer can identify the

characteristics of the targetconsumer, 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 forspecific brandsDifferent segments of consumers for

different categories of products

undergo different types of decision

processes

There is no shortage ofinformation. Social Networking

Sites such as Facebook provide

access to site demographic and

behavioural information

POWER


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PROFILE OF MAJOR PLAYERS (1/4)

Social Media Ranking :

Calculated based on the interactivity level of the HealthCare

Centers in Facebook, Twitter, LinkedIn, YouTube and Blogs

JC Penney Facebook Page


Patio Home Store Women Men

Kids Baby JCP Teen Shoes

Handbags & Accessories Jewelry & Watches Clearance

JCP has 1,749,856 fan

base in Facebook and

it use the social

media for engaging

continuously with

customers; providingthe facility to shop

online through

Facebook page too

0 2 4

3.975

3.85

4.2

2.9


9/21


Social Media Ranking

Nordstrom Blog

Nordstrom tries toconnect to its

customers by

regularly updating

their blogs on

various topics such

as

Beauty, Style, Fashi

on, Food, Hobbies,

etc.


Designer Collections At Home & Gifts Women Men

Juniors Baby & Kids Beauty & Fragrance Shoes

Handbags & Accessories Weddings Sale

0 2 4

4.3

4.9

3.8

4.1


10/21



Macys YouTube

Channel

Macys use YouTubeto promote their

own reality show

Macys Million

Dollar Makeover

which is a target to

attract women to

buy and shop at

Macys


For the Home Bed & Bath Women Men

Juniors Kids Beauty & Fragrance Shoes

Handbags & Accessories Jewelry & Watches Sale

0 2 4

4.45

4.25

3

5


11/21



Sears Twitter Page

Sears has 78891

followers in Twitter

and it gas been using

twitter for

announcing itspromotional deals

and offers


Appliances Automotive &

Tires

Baby Beauty Bed, Bath &

Home

Books &

Magazines

Clothing Electronics &

Computers

Fitness &

Sports

Home

Services

Jewelry &

Watches

Lawn &

Garden

Music, Movies &

GamesOffice

Products

Outdoor

Living

Replacement

Parts

Shoes Tools Toys & Games Clearance

0 2 4

3.725

4.05

4.2

4.5


12/21

SOCIAL MEDIA INDEX (1/2)

Retailers No of Channels Social Grades

NORDSTROM 5 4.16

MACYS 4 3.82

SEARS 4 3.65

JC PENNEY 5 3.45

SOCIAL MEDIA GRADES is calculated based on the interactivity level ofthe 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



13/21

SOCIAL MEDIA INDEX (2/2)

Social Engagement Graph: Interaction Plot of Retailers in the Social Media Space


0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

0 1 2 3 4 5

Interacti

vity

Level

No of Channels


14/21

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



15/21


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 andtry 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 Nordstrom Macys Sears

Positive Sentiment % 64.2% 68.1% 55.9% 54.8%

Negative Sentiment % 6.6% 8% 15.9% 11.7%


16/21


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



17/21


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



18/21


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



19/21


INDUSTRY INTELLIGENCE

Tracking the keyword Sports Apparel in Simplify360

There are 5821 mention of the

keyword Sports Apparel in the

social media within a period of 2

weeks alone

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


20/21


INDUSTRY INTELLIGENCE

Tracking the keyword Winter Apparel in Simplify360

There are 3504 mention of the keyword

Winter Apparel in the social media

within a period of 2 weeks alone


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


21/21

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VP - Sales,

InRev Systems

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social media use by us retail industry

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