O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION

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O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
O2O
James Sampson
Regional Head, Strategy & Partnerships, GrabAds
Grab
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:

What percentage    A   238%        B    548%
did Bubble-Tea
grow on Grabfood
in 2018?

                   B   1228%   C       12,460%
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:

What percentage
did Bubble-Tea
grow on Grabfood
in 2018?

Answer:

  C   12,460%
                   Sources: https://medium.com/grab/bubble-tea-craze-on-grabfood-af31ea2ec08
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:
                    A   Singapore     B   Indonesia
Which SEA country
consumes the most
Bubble-tea per
month?              C   Thailand      D   Vietnam

                    E   Philippines   F   Malaysia
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:

Which SEA country
consumes the most
Bubble-tea per
month?

Answer:

  C    Thailand
                    Sources: https://medium.com/grab/bubble-tea-craze-on-grabfood-af31ea2ec08
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:
                    A   Chocolate   B   Honey
The most popular
Bubble-Tea flavor
in Vietnam?
                    C   Hazelnut    D   Cheese

                    E   Coffee      F   Matcha
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Question:

The most popular
Bubble-Tea flavor
in Vietnam?

Answer:

F   Matcha
                    Sources: https://medium.com/grab/bubble-tea-craze-on-grabfood-af31ea2ec08
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
#1 Consumer                                                       339 cities
                                                                  in 8 Countries
Platform in SEA                                      VIETNAM
                                 MYANMAR

    >163 million                       THAILAND                   PHILIPPINES

    mobile downloads
                                                       CAMBODIA

    #1 transportation platform                    MALAYSIA

                                                      SINGAPORE

    #1 fintech platform
    #1 Rewards program

    Largest and fastest-
    growing regional food
    delivery service                              INDONESIA
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
Online-to-Offline (O2O)
What is O2O?
O2O is a strategy that brings consumers from an online journey to visit the
physical store to make a purchase, try out products or even collect a free
sample.

The concept of Brick-and-Mortar remains relevant in Southeast Asia where it
was reported that less than 10% of sales were done through ecommerce*.
This leaves at least 90% of sales still being conducted at physical point of
sales.

The digital touchpoints in the O2O strategy influence consumers to go down
to the physical POS, eventually driving footfall and sales. The ability to link
an online customer to their actions in-store is truly the most valuable feature
in all omni-channel models.
O2O JAMES SAMPSON REGIONAL HEAD, STRATEGY & PARTNERSHIPS, GRABADS - MOBILE MARKETING ASSOCIATION
SEA eCommerce Sector is a Crowded Space
Penetration of Retail Commerce is surprisingly low
Retail eCommerce Sales as a % of Total Retail Sales

             Market        2015          2016         2017         2018          2019          2020

             SGP           4.1%          4.5%         4.9%         5.4%          5.8%          6.2%

             ID            1.4%          2.2%         3.1%         3.9%          4.4%          4.8%

             TH            1.3%          1.5%         1.7%         2%            2.2%          2.5%

             MY            1.2%          1.4%         1.7%         1.9%          2.2%          2.4%

             VN            0.9%          1.1%         1.2%         1.3%          1.4%          1.5%

             PH            0.7%          0.9%         1%           1.2%          1.4%          1.5%

             SE Asia 1.6%                1.9%         2.3%         2.6%          2.9%          3.2%
             Average
                                                       Source: Emarketer excludes Travel & Event Ticketing
Retail eCommerce Sales as a % of Total Retail Sales

                                                                                             USD 29B
Heavily funded competitors focusing on a small
portion of the retail pie?
                                                                                             USD 0.75T
eCommerce growth will take several more years to hit
the critical mass it has experienced in China

Then why all the buzz around eCommerce?

 ●   The China Lens (34% Share by 2020)
 ●   Small SEA wedge still worth $23 Billion in 2018
     and will be $100 Billion by 2025
 ●   Consumer Convenience (makes life easier)
 ●   VERY Strong Attribution metrics ie. ROI

                                                            Source: Bain, eMarketer.
                                                       Market Sizing Numbers are estimates
8 Trends That Will Shape Southeast Asia Ecommerce in 2019
 https://ecommerceiq.asia/ecommerce-trends-sea-2019/ WRITTEN BY: NICHAKORN PRATEEPSAWANGWONG

1.     Brands Shift Their Focus from Data Gathering to Data Utilization

2.     Social Commerce Channels are Brands’ New Sales Outlets

3.     E-Marketplaces Launch New Services to Differentiate

4.     Brands to Reinforce Reviews and Fund User-Generated Content to Win Ecommerce Consumers

5.     Brands Employ Direct-to-Consumer strategies to Acquire Direct Consumer Data

6.     2019 Will Finally see Regulation of E-commerce across the Region

7.     Grab and Go-Jek Challenge Logistics Providers to Capture Ecommerce and Online Food Delivery

8.     Brands and Retailers will Double Down on Omnichannel is Southeast Asia’s Preference over Pure-Play Ecommerce
Winning the Last Mile
Closing the loop: FMCG / Retail partners
                                                                                                                                                In Store

  Jumbo Juice Special Offer

                                                                           20% off Jumbo Juice
                                                                           purchase at any retail store
                                          20% off your Jumbo Juice
                                          Valid Until 9 Apr 2019

                                                                           30% Off GrabFood order         20% off your Jumbo Juice Purchase
   20% off your Jumbo Juice     20% off your Purchase at any Jumbo Juice                                   at any retail store. Additional 5%
                                Store. Additional 5% when you use                                               when you use GrabPay
   Jumbo Juice • Sponsored
                                GrabPay
   Additional 5% when you use                                                                                      Ask the cashier
   GrabPay                                                                                                       to enter PIN below:

        Save to My Rewards

                                             BOOK A RIDE

                                        Save to My Rewards

 User sees In-App Ad                        User clicks on Save, reward is                                        User visits store, cashier keys
 with In-Store Reward                       added to Grab Reward Wallet                                           in PIN, user redeems reward!
Last Mile O2O Advertising

Jumbo Juice Special Offer                                                             In Store
                                                                                 User shows
                                                                              Voucher from
                                    20% off your Jumbo Juice                Reward Wallet to
                                                                           cashier to redeem

 20% off your Jumbo Juice     20% off your Purchase at any Jumbo Juice
 Jumbo Juice • Sponsored      Store. Additional 5% when you use
                              GrabPay
 Additional 5% when you use                                                                      Omni-channel attribution
 GrabPay

      Save to My Rewards

                                          BOOK A RIDE

                                      Save to My Rewards

                                                                                 On GrabFood
                                                                           User clicks on “Use
 User sees In-App Ad             User saves Voucher                          Now” to redeem
    with Voucher                  to Reward Wallet                       reward via GrabFood                                GrabFood Delivery
                                                                                         order
Confidential

                          Integrated O2O Advertising (Offline to Online)

                   Pre-ride                                  During-ride                                                     After-ride

                                                                                             Jumbo Juice Special Offer

                                                          Come to our store at XYZ mall to
                                                          redeem Jumbo Juice reward

                                                                                              5% off Jumbo Juice Subscription Plan

                                                                                              Sign up for our Jumbo Juice subscription
                                                                                              plan with 5% off.

                                                                                                            Learn more

      Get a free sample
      of Jumbo Juice in
      this ride!

      Your driver has
      arrived. Please
      be there within 5
      mins.

                                           Free Sample!

 Capture targeted consumers’ attention     Engage consumers and showcase your                 Remarket to consumers for sales
immediately while they are booking rides      content while they are in the ride                and insights after their ride
New Innovative Sampling Channels

Grab Kitchen Featured as   Food Items Selected          SKU auto-added and
a menu within Grab Food                          distributed via GrabFood Delivery
Real World Examples
Case Study : O2O Integrated Advertising
                       OFFLINE                                                         ONLINE
Over 18,960 riders experienced the           Over 58,000 YouTube views                   Weekly giveaways boosted user
 beauty bar with 61% aided recall                                                     -generated posts on FB and Instagram

                                     “We were thrilled with Grab’s willingness to
                                     try this first-of-a-kind experience and we are
                                     happy with the positive feedback from our
                                     customers. Along with our other marketing
                                     efforts, April was our highest sales volume
                                     this year and we are the #1 Micellar water
                                     brand in Singapore!”
Sampling to Remarketing: Anlene offers in-car samples of two new flavours
                      ONLINE                               OFFLINE

                                                           6,475 Samples Redeemed

                                                           88.9% of samplers had
                                                           tried Anlene before,
                                                           consistent with Anlene’s
                                                           reputation as a long-
                                                           established and well-known
                                                           household brand.

                                                           55.6% of samplers
                                                           preferred the unique black
                                                           sesame flavoured UHT milk.

                                                           83% of samplers would
                                                           purchase Anlene UHT in the
                                                           future.

       In Vehicle Sampling        In App Remarketing          Consumer Insights
                                      with Survey
Campaign Vision: Closing the Loop at POS!
                        ONLINE                            OFFLINE

     Ad Shown to User          Saves Reward       Redeems reward in-store
 1                         2     4,618
                                              3   477 redemptions, 10.3% … 75% New to Hera Brand
     554K Impressions
                                 saves
Driving HERA’s Unique Audiences to HERA’s Storefront

                                     Who we retargeted:
                                      ➢   People who have saved the
                                          rewards into the wallet but have
                                          not redeemed it
Business Objectives exceeded
We conducted a post-campaign survey among 25% of users who redeemed the samples from HERA (n=114)

                                          Increase in conversion rate
              Customer                    4% of users purchased other HERA products when
              Acquisition                 redeeming sample
                                            ➢   Of which 20% spent more than $250

              Brand                       77% of users did not use HERA’s products before
              Awareness

              Brand                       Favourable brand experience & intent to purchase
                                          47.4% of users indicated that they loved the HERA Black
              Impression
                                          Foundation (in the sample kit) and will purchase it
Best Practices for starting your O2O journey

●   O2O typically means Online to Offline, but increasingly can go Offline to Online

●   Leverage partners that can get you closer to the end transaction for your
    product

     ○    E-commerce, mobile wallets, payment providers, logistics

●   Design customer journies that can be measured (think last mile attribution vs
    last click attribution)
THANK YOU
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