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What’s Next:
Making brands
matter in
eCommerce
Welcome
PIERRE KREMER
EMEA E-Commerce Lead
Ogilvy Consulting
LAURIE CLOSE
Consultant
Ogilvy Consulting
Tell us
where you
are dialing
in from!
What’s the weather
like in your city?
Do you
want this
deck?
It will be available for download
shortly after the webinar on:
slideshare.net/socialogilvy
And the recording up on
facebook.com/OgilvyConsulting
A Bit Of Context
eCommerce Landscape
eCommerce Imperatives For Winning In eCommerce
By 2021
$4,8Bin 2018
$2,8B$1,3Bin 2014
eCommerce is on a meteoric rise
% eCommerce sales
Source: Nielsen Total Store Report
Frozen Foods
Alcohol
Bakery
Dairy
Meat
Produce
Packaged Grocery
Household Care
Personal Care
Health Care
Pet Care
Beauty Care
49.3%
0.8%
57.0%
67.4%
46.0%
18.4%
41.4%
17.8%
28.7%
27.3%
73.3%
26.9%
YOY Growth
0% 5% 10% 15% 20% 25% 30% 35%
Value Creation Opportunity: eCommerce has yet to pass the
“tipping point” in many categories
2007 2017
1000
2000
3000
4000
2xin 10 years
Total Number of Consumer Products
Introduced in the U.S. Market
By category, 2007- 2017
Source: Mintel + Wall Street Journal
Battling Clutter: more new products being introduced that ever
Global Vs. Local Brand Share of Spend
Source: The Nielsen Company, 2018
36.2%
63.8%
35.8% 35.4%
64.2% 64.6%
2015 2016 2017
Global Brands Local Brands
Dairy Food Beverages
Home
Care
Beauty &
Personal Care
20% 26.6% 38.3% 47% 58.4%
Localization: consumer preferences is shifting to local niche brands
Percent of All Autopilot Consumers Who Have Used Autopilot
Consumption for each category over the last 12 months.
Source: GlobalData Consumer Research, March 2018
Grocery home delivery
and automated ordering is
enabling eCommerce
growth
Household
Cleaning
Toilet
Paper
Kitchen
Paper
Dishwasher
Products
Pet
Care
Health
Products
Snacks Diapers Baby
Wipes
Baby
Formula
Laundry
Products
60.7%
57.3%
55.1%
48.6% 48.2%
40.2%
38.1%
29.8%
24.6%
23.9%
20.1%
Innovation: driving consumer buying behaviour change
Small and Medium CPG Businesses Taking Share
with eCommerce and Omnichannel InnovationPercent of Global CPG Market
2014 2016
$18Bshift from big to small
in just 2 years
54.2% 52.4%
Large
Medium
Small
Extra Small
Note: Extra small: less than $100M sales, Small: $100M-$1B, Medium $1B-$5B, Large $5B+Source: IRI Data for MULOC
Necessary Cannibalization: without eCommerce pay & value
capture, brand share will decline
How do I compete
with Amazon?
How can my brand
stand out amongst all
this competition?
Do I need to sell in
marketplaces and if
so, how do I do it?
Do I have the assets
to win?
What should my
portfolio strategy be?
What should my
content strategy be?
How do I connect
with consumers?
How can I prevent my
brand value from
eroding?
The opportunity?
Mindset Shift
From
manufacturer
to retailer
1
Strategic Shift
From
one-size-fits-all to
tailored strategies
2
Accelerate Growth
From
single channel
to omnichannel
3
Three imperatives for brands to capitalise on consumer behaviour
and technology enablement to accelerate growth
1
• B2B model
• Passive role in retail distribution
From Manufacturing…
• Consumer obsession
• X-channel optimization
• Technology savvy
To Retail
From acting like a manufacturer to acting like a retailer
• Same brands and products across
eCommerce channels: DTC brand.com,
E-Retailers, and Marketplaces
From One-Size-Fits-All… To Tailored Digital Commerce
• Brands and products tailored for each channel
for optimal channel performance
• Creation of Digital Brand Archetypes
for each opportunity
2 From one-size-fits-all to tailored strategies for digital commerce
Percentage of Total Brand Revenue from Digital
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
*25%–35% *30–80%
*Indicative figures. Derived from Forrester’s, “Assessing The Digital Commerce Opportunity For Branded Manufacturers”, report published
inNovember 2018
• 3rd Party
eCommerce
Selling through
online wholesalers
• Mono-Brand DTC
Pure play direct to
consumer brand-
owned website
• Portfolio-Brand
DTC
Multi-brand direct
to consumer website
3 Retail is detail: follow the money to accelerate growth
3rd Party
eCommerce
Mono Brand
DTC
Portfolio Brand
DTC
Brand/Product
Archetype A
Brand/Product
Archetype B
Brand/Product
Archetype C
Key digital brand “archetypes”
emerge and define how and
why consumers engage with
the eCommerce ecosystem.
Building an eCommerce
Strategy with this framework
allows for tailored strategies to
maximize growth.
Introducing the CPG eCommerce matrix
Need Choice Passion
1 2 3
Digital Brand Archetypes
What Consumers
Are Seeking
eCommerce
Purchase Occasion
Where Consumers
Find The Brand
Illustrative Examples
of Each Archetype
Need
Brands/Products
“Solve My Problem” Reactive Amazon
Choice
Brands/Products
“Validate My Choice” Routine / Restock Google / Amazon
Passion
Brands/Products
“Enrich My Life” Impulse Vs Trial Google, DTC.com & Links In
Digital Brand Archetypes Illustration: the consumer
Brand Imperative Business Imperative
Breadth & Role of
SKU Assortment
Role of
Content
Need
Brands/Products
Solve Problem
• Be Top-of-Mind
• Focused proof
• Be easy to buy
Narrow Demonstrate
Choice
Brands/Products
Reinforce Choice
• Maintain relevance
• Expand brand role
• Demonstrate leadership
Broad & Deep Engage
Passion
Brands/Products
Build Relationship
• Scale usage to larger
segments
• Drive repeat purchase
• Acquire efficiently
Narrow & Deep Entice
Digital Brand Archetypes Illustration: the brand and business
What Consumers
Are Seeking
eCommerce
Purchase Occasion
Where Consumers
Find The Brand
Illustrative Examples
of Each Archetype
Need
Brands/Products
Choice
Brands/Products
Passion
Brands/Products
Mapping Brands: brands can cross-over archetypes
3rd Party
eCommerce
Mono Brand
DTC
Portfolio Brand
DTC
Brand/Product
Archetype A
Brand/Product
Archetype B
Brand/Product
Archetype C
Today’s Discussion
The Making Brands Matter eCommerce Matrix
eCommerce Strategy POV
3rd Party eCommerce
Mono Brand DTC
Portfolio Brand DTC
May 7, 2019
1. 2. 3.
4. 5. 6.
Allows manufacturers to
distribute products via
wholesalers online
3rd party sellers can
sell manufacturer
goods without their
consent
Platforms (e.g. Amazon)
launch their own
products to compete
with CPGs
Main consumer
destination for online
purchases globally
First touch in shopping
lifecycle (Amazon
search beats Google)
Algorithms drive
customer experience
which damages
brands
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce3rd party eCommerce and why it is important
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
North America Europe Asia Pacific Latin America
3rd party eCommerce and why it is important
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
The Top Four Countries Where Consumers “Shop Less Often” at Retail Stores Due to Amazon.com
Retailers are competing with Amazon for market share
Source: PwC, Total Retail 2017
Japan United States Brazil
39% 37% 35% 34% 28%
Germany Global
3rd party platforms drive consumer to shop
less at physical retail
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
0
18
35
53
70
China USA France UK Germany Japan LATAM
Column1
MercadoLibre & Amazon
Source: Econsultancy
Alibaba (Taobao, Tmall)
Amazon
61%
54% 56% 56% 56% 54%
48%
3rd party eCommerce platformed first touch in
product searches globally
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
Source: Econsultancy
4.3%
9%4%
Low Cost
Trackable
14%
17%
7%
Multiple options
49%Free
Fast
Same Day
Amazon introduced Prime in 2005,
introducing free delivery as a viable
option when purchasing goods
online. Because of this customer
expectations have changed.
3rd party eCommerce platforms have set expectations
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
Discover
Explore
BuyUse
Ask
EngageDiscover
Explore
BuyUse
Ask
Engage
From To
Shopping and buying journeys merged, now 3rd
parties play a role in every stage of the lifecycle
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
Consumer
Facing
Price
Product Title
Product Description
Visual Assets
Ratings & Reviews
Purchase Options
Logistics
Stock Availability
Fulfillment Options
& Performance
Purchase Options
Search Results
Performance+ =
Algorithms drive 3rd party search, not brands
Need Choice Passion
1 2 3
Digital Brand Archetypes in 3rd Party eCommerce
Case examples
Case
Examples
How a “Need”
Brand Behaves
in 3rd Party
eCommerce
• Where do consumers engage with the brand?
• Primarily through product-type searches on
eCommerce platforms
• Consumer Cycle Touchpoints
• Buy, Use, Ask, Engage
• Business Imperative
• Control the channel
• Adapt product portfolio to combat
low-frequency usage
• Demonstrate product superior performance
and drive product consideration
• Role of Content
• Focus on performance, providing the
most useful content on how to use the
product and solve the problem
• Expertise, endorsement and consumer
generated content to validate product
performance
“Need"
Archetype
Case
Examples
How a “Choice”
Brand Behaves
in 3rd Party
eCommerce
“Choice”
Archetype
Where do consumers engage with the brand?
• Primarily through category-type searches on
eCommerce platforms
Consumer cycle Touchpoints
• Discover, Explore, Buy, Use, Ask, Engage
Business Imperative
• Demonstrate category leadership by driving
awareness of product portfolio
• Address unmet consumer need by developing new consumer-
centric product portfolio and increase reach within category
• Drive routine behavior to reinforce buying frequency
Role of Content
• Address category-type search queries by being as
relevant as possible to consumer touchpoints needs
• Immersive and engaging content to drive emotional
connection with the brand and routine behavior
Case
Examples
How a
“Passion”
Brand Behaves
in 3rd Party
eCommerce
“Passion”
Archetype
Where do consumers engage with the brand
• Primarily through brand name searches on
eCommerce platforms
Consumer cycle Touchpoints
• Discover, Explore, Buy, Use, Engage
Business Imperative
• Maintain engagement with consumers and continue
driving loyalty and evangelism
• Develop and/or adapt consumer-centric product portfolio to
maintain brand leadership in category and increase reach
• Reinforce routine purchase behavior
Role of Content
• Immersive and engaging brand purpose content to create and
maintain emotional connection with the brand and its values
• Highlight what makes the product special
• Consumer generated content to drive sense of community,
belonging and positivity
May 7, 2019
1. 2. 3.
5. 6. 7.
Serves very specific
consumer demand space
with continuous innovation
Defines every part of
business to deliver the
best customer experience
Smart product
development with varied
distribution models
Personalization at scale:
product, package,
communications
Purpose and community
to drive continuous
engagement/growth
Brand is a bespoke
and authentic
destination
4.
Accommodates single
purchase and subscription
autopilot models
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerceMono DTC and why it is important
Need Choice Passion
1 2 3
Digital Brand Archetypes in Mono Brand DTC
Case examples
Case
Examples
“Need"
Archetype
How a “Need”
Brand Behaves
in Mono-Brand
DTC
• Business Imperative
• Strong brand awareness to be the first choice
when wanting to resolve a problem
• Very easy to buy, very easy to find
• Business Imperative
• Primarily though unbranded search in Google
• Role of Content
• Focus on performance, providing the most
useful content to solve the problem
• How to and daily hack content to
solve problems quickly
• Expertise and influencer content to
validate product performance
Case
Examples
“Choice”
Archetype
How a “Choice”
Brand Behaves
in Mono-
Brand DTC
• Business Imperative
• To be the best performance-wise
• Very easy to buy, very easy to find
• Business Imperative
• Primarily though unbranded search in Google
• Role of Content
• Focus on performance, providing the
most useful content to solve the problem
• How to and daily hack content to
solve problems quickly
• Expertise and influencer content to
validate product performance
Case
Examples
“Passion”
Archetype
How a
“Passion”
Brand Behaves
in Mono-Brand
DTC
Business Imperative
• Amplify brand purpose and drive usage
to a larger customer base
Business Imperative
• DTC.com and links in from social
Role of Content
• Pull commerce to attract new users to the brand
• Content needs to amplify purpose and
develop sense of community
• Importance of authenticity and
innovation narrative
• Bespoke in the way the brand behaves and
interacts with audiences, developing a sense
of community that drives purchase
• Personalization of content key to delivering
brand experience
May 7, 2019
Mono
Brand DTC
Portfolio
Brand DTC
3rd Party
eCommerce
1. 2. 3.
Portfolio Brand DTC is a
multi-brand digital marketplace
Portfolio Brand DTC enables the
development of category, brand,
product, and lifestyle content
Allows for entire portfolio to be sold
and provides opportunity for new
SKUs to be introduced
Leverages innovative technology to
simplify consumers’ lives and create
new value propositions
Enables collect ion of consumer
data for development of meaningful
personal relationships
4. 5.
Defining portfolio DTC
Need Choice Passion
1 2 3
Portfolio Brand DTC Encompasses All 3 Digital Brand Archetypes
All 3 digital brand archetypes exist in portfolio brand DTC experiences
CRM
Drive consumer
engagement, brand affinity
and brand loyalty
Content
Creating authentic bespoke
content and UGC.
Innovation
Create new products and
brand.
Commerce
Provide consumers with
purchasing choices that
simplify their lives
Concept
The main reason ‘why’
people will interact
with & buy from a
multi-brand digital
marketplace
Portfolio brand DTC success depends on a powerful concept
Case
Examples
Content –
To address
consumer
intent and
their interests
Case
Examples
Commerce –
Portfolio
bundling and
autopilot
shopping
Case
Examples
CRM –
Consumer
engagement,
UGC & loyalty
Case
Examples
Innovation —
Being part
of everyday life
Mindset Shift
Strategic Shift
Accelerate Growth
3rd Party
eCommerce
3rd party
eCommerce is a
must for “Need” and
“Choice” brands
1
Mono-Brand
DTC
"Choice” & “Passion"
brands are a selective
fit for Mono-Brand
DTC
2
Portfolio Brand
DTC
Portfolio brand DTC
allows you to behave
like a retailer with
omnichannel strategies
3
Three implications for CPGS
3rd Party
eCommerce
Mono Brand
DTC
Portfolio Brand
DTC
Brand/Product
Archetype A
Market to the algorithm
No
Yes
Concept-driven multi-brand,
multi-purpose DTC
Brand/Product
Archetype B
Market beyond the algorithm
to demand drivers
Selective
New news + innovation to drive relevance
+ Seasonality
Brand/Product
Archetype C
Market beyond the algorithm
to people’s passion points
Selective
Personalization + innovation
Authentic + bespoke + Seasonality
The End Result
Questions?
PIERRE KREMER
EMEA E-Commerce
Lead
Ogilvy Consulting
LAURIE CLOSE
Consultant
Ogilvy Consulting
Thank you.

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What's Next: eCommerce

  • 1. Powered by What’s Next: Making brands matter in eCommerce
  • 2. Welcome PIERRE KREMER EMEA E-Commerce Lead Ogilvy Consulting LAURIE CLOSE Consultant Ogilvy Consulting
  • 3. Tell us where you are dialing in from! What’s the weather like in your city?
  • 4. Do you want this deck? It will be available for download shortly after the webinar on: slideshare.net/socialogilvy And the recording up on facebook.com/OgilvyConsulting
  • 5. A Bit Of Context eCommerce Landscape eCommerce Imperatives For Winning In eCommerce
  • 6. By 2021 $4,8Bin 2018 $2,8B$1,3Bin 2014 eCommerce is on a meteoric rise
  • 7. % eCommerce sales Source: Nielsen Total Store Report Frozen Foods Alcohol Bakery Dairy Meat Produce Packaged Grocery Household Care Personal Care Health Care Pet Care Beauty Care 49.3% 0.8% 57.0% 67.4% 46.0% 18.4% 41.4% 17.8% 28.7% 27.3% 73.3% 26.9% YOY Growth 0% 5% 10% 15% 20% 25% 30% 35% Value Creation Opportunity: eCommerce has yet to pass the “tipping point” in many categories
  • 8. 2007 2017 1000 2000 3000 4000 2xin 10 years Total Number of Consumer Products Introduced in the U.S. Market By category, 2007- 2017 Source: Mintel + Wall Street Journal Battling Clutter: more new products being introduced that ever
  • 9. Global Vs. Local Brand Share of Spend Source: The Nielsen Company, 2018 36.2% 63.8% 35.8% 35.4% 64.2% 64.6% 2015 2016 2017 Global Brands Local Brands Dairy Food Beverages Home Care Beauty & Personal Care 20% 26.6% 38.3% 47% 58.4% Localization: consumer preferences is shifting to local niche brands
  • 10. Percent of All Autopilot Consumers Who Have Used Autopilot Consumption for each category over the last 12 months. Source: GlobalData Consumer Research, March 2018 Grocery home delivery and automated ordering is enabling eCommerce growth Household Cleaning Toilet Paper Kitchen Paper Dishwasher Products Pet Care Health Products Snacks Diapers Baby Wipes Baby Formula Laundry Products 60.7% 57.3% 55.1% 48.6% 48.2% 40.2% 38.1% 29.8% 24.6% 23.9% 20.1% Innovation: driving consumer buying behaviour change
  • 11. Small and Medium CPG Businesses Taking Share with eCommerce and Omnichannel InnovationPercent of Global CPG Market 2014 2016 $18Bshift from big to small in just 2 years 54.2% 52.4% Large Medium Small Extra Small Note: Extra small: less than $100M sales, Small: $100M-$1B, Medium $1B-$5B, Large $5B+Source: IRI Data for MULOC Necessary Cannibalization: without eCommerce pay & value capture, brand share will decline
  • 12. How do I compete with Amazon? How can my brand stand out amongst all this competition? Do I need to sell in marketplaces and if so, how do I do it? Do I have the assets to win? What should my portfolio strategy be? What should my content strategy be? How do I connect with consumers? How can I prevent my brand value from eroding? The opportunity?
  • 13. Mindset Shift From manufacturer to retailer 1 Strategic Shift From one-size-fits-all to tailored strategies 2 Accelerate Growth From single channel to omnichannel 3 Three imperatives for brands to capitalise on consumer behaviour and technology enablement to accelerate growth
  • 14. 1 • B2B model • Passive role in retail distribution From Manufacturing… • Consumer obsession • X-channel optimization • Technology savvy To Retail From acting like a manufacturer to acting like a retailer
  • 15. • Same brands and products across eCommerce channels: DTC brand.com, E-Retailers, and Marketplaces From One-Size-Fits-All… To Tailored Digital Commerce • Brands and products tailored for each channel for optimal channel performance • Creation of Digital Brand Archetypes for each opportunity 2 From one-size-fits-all to tailored strategies for digital commerce
  • 16. Percentage of Total Brand Revenue from Digital Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce *25%–35% *30–80% *Indicative figures. Derived from Forrester’s, “Assessing The Digital Commerce Opportunity For Branded Manufacturers”, report published inNovember 2018 • 3rd Party eCommerce Selling through online wholesalers • Mono-Brand DTC Pure play direct to consumer brand- owned website • Portfolio-Brand DTC Multi-brand direct to consumer website 3 Retail is detail: follow the money to accelerate growth
  • 17. 3rd Party eCommerce Mono Brand DTC Portfolio Brand DTC Brand/Product Archetype A Brand/Product Archetype B Brand/Product Archetype C Key digital brand “archetypes” emerge and define how and why consumers engage with the eCommerce ecosystem. Building an eCommerce Strategy with this framework allows for tailored strategies to maximize growth. Introducing the CPG eCommerce matrix
  • 18. Need Choice Passion 1 2 3 Digital Brand Archetypes
  • 19. What Consumers Are Seeking eCommerce Purchase Occasion Where Consumers Find The Brand Illustrative Examples of Each Archetype Need Brands/Products “Solve My Problem” Reactive Amazon Choice Brands/Products “Validate My Choice” Routine / Restock Google / Amazon Passion Brands/Products “Enrich My Life” Impulse Vs Trial Google, DTC.com & Links In Digital Brand Archetypes Illustration: the consumer
  • 20. Brand Imperative Business Imperative Breadth & Role of SKU Assortment Role of Content Need Brands/Products Solve Problem • Be Top-of-Mind • Focused proof • Be easy to buy Narrow Demonstrate Choice Brands/Products Reinforce Choice • Maintain relevance • Expand brand role • Demonstrate leadership Broad & Deep Engage Passion Brands/Products Build Relationship • Scale usage to larger segments • Drive repeat purchase • Acquire efficiently Narrow & Deep Entice Digital Brand Archetypes Illustration: the brand and business
  • 21. What Consumers Are Seeking eCommerce Purchase Occasion Where Consumers Find The Brand Illustrative Examples of Each Archetype Need Brands/Products Choice Brands/Products Passion Brands/Products Mapping Brands: brands can cross-over archetypes
  • 22. 3rd Party eCommerce Mono Brand DTC Portfolio Brand DTC Brand/Product Archetype A Brand/Product Archetype B Brand/Product Archetype C Today’s Discussion The Making Brands Matter eCommerce Matrix
  • 23. eCommerce Strategy POV 3rd Party eCommerce Mono Brand DTC Portfolio Brand DTC
  • 24. May 7, 2019 1. 2. 3. 4. 5. 6. Allows manufacturers to distribute products via wholesalers online 3rd party sellers can sell manufacturer goods without their consent Platforms (e.g. Amazon) launch their own products to compete with CPGs Main consumer destination for online purchases globally First touch in shopping lifecycle (Amazon search beats Google) Algorithms drive customer experience which damages brands Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce3rd party eCommerce and why it is important
  • 25. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce North America Europe Asia Pacific Latin America 3rd party eCommerce and why it is important
  • 26. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce The Top Four Countries Where Consumers “Shop Less Often” at Retail Stores Due to Amazon.com Retailers are competing with Amazon for market share Source: PwC, Total Retail 2017 Japan United States Brazil 39% 37% 35% 34% 28% Germany Global 3rd party platforms drive consumer to shop less at physical retail
  • 27. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce 0 18 35 53 70 China USA France UK Germany Japan LATAM Column1 MercadoLibre & Amazon Source: Econsultancy Alibaba (Taobao, Tmall) Amazon 61% 54% 56% 56% 56% 54% 48% 3rd party eCommerce platformed first touch in product searches globally
  • 28. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce Source: Econsultancy 4.3% 9%4% Low Cost Trackable 14% 17% 7% Multiple options 49%Free Fast Same Day Amazon introduced Prime in 2005, introducing free delivery as a viable option when purchasing goods online. Because of this customer expectations have changed. 3rd party eCommerce platforms have set expectations
  • 29. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce Discover Explore BuyUse Ask EngageDiscover Explore BuyUse Ask Engage From To Shopping and buying journeys merged, now 3rd parties play a role in every stage of the lifecycle
  • 30. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce Consumer Facing Price Product Title Product Description Visual Assets Ratings & Reviews Purchase Options Logistics Stock Availability Fulfillment Options & Performance Purchase Options Search Results Performance+ = Algorithms drive 3rd party search, not brands
  • 31. Need Choice Passion 1 2 3 Digital Brand Archetypes in 3rd Party eCommerce Case examples
  • 32. Case Examples How a “Need” Brand Behaves in 3rd Party eCommerce • Where do consumers engage with the brand? • Primarily through product-type searches on eCommerce platforms • Consumer Cycle Touchpoints • Buy, Use, Ask, Engage • Business Imperative • Control the channel • Adapt product portfolio to combat low-frequency usage • Demonstrate product superior performance and drive product consideration • Role of Content • Focus on performance, providing the most useful content on how to use the product and solve the problem • Expertise, endorsement and consumer generated content to validate product performance “Need" Archetype
  • 33. Case Examples How a “Choice” Brand Behaves in 3rd Party eCommerce “Choice” Archetype Where do consumers engage with the brand? • Primarily through category-type searches on eCommerce platforms Consumer cycle Touchpoints • Discover, Explore, Buy, Use, Ask, Engage Business Imperative • Demonstrate category leadership by driving awareness of product portfolio • Address unmet consumer need by developing new consumer- centric product portfolio and increase reach within category • Drive routine behavior to reinforce buying frequency Role of Content • Address category-type search queries by being as relevant as possible to consumer touchpoints needs • Immersive and engaging content to drive emotional connection with the brand and routine behavior
  • 34. Case Examples How a “Passion” Brand Behaves in 3rd Party eCommerce “Passion” Archetype Where do consumers engage with the brand • Primarily through brand name searches on eCommerce platforms Consumer cycle Touchpoints • Discover, Explore, Buy, Use, Engage Business Imperative • Maintain engagement with consumers and continue driving loyalty and evangelism • Develop and/or adapt consumer-centric product portfolio to maintain brand leadership in category and increase reach • Reinforce routine purchase behavior Role of Content • Immersive and engaging brand purpose content to create and maintain emotional connection with the brand and its values • Highlight what makes the product special • Consumer generated content to drive sense of community, belonging and positivity
  • 35. May 7, 2019 1. 2. 3. 5. 6. 7. Serves very specific consumer demand space with continuous innovation Defines every part of business to deliver the best customer experience Smart product development with varied distribution models Personalization at scale: product, package, communications Purpose and community to drive continuous engagement/growth Brand is a bespoke and authentic destination 4. Accommodates single purchase and subscription autopilot models Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerceMono DTC and why it is important
  • 36. Need Choice Passion 1 2 3 Digital Brand Archetypes in Mono Brand DTC Case examples
  • 37. Case Examples “Need" Archetype How a “Need” Brand Behaves in Mono-Brand DTC • Business Imperative • Strong brand awareness to be the first choice when wanting to resolve a problem • Very easy to buy, very easy to find • Business Imperative • Primarily though unbranded search in Google • Role of Content • Focus on performance, providing the most useful content to solve the problem • How to and daily hack content to solve problems quickly • Expertise and influencer content to validate product performance
  • 38. Case Examples “Choice” Archetype How a “Choice” Brand Behaves in Mono- Brand DTC • Business Imperative • To be the best performance-wise • Very easy to buy, very easy to find • Business Imperative • Primarily though unbranded search in Google • Role of Content • Focus on performance, providing the most useful content to solve the problem • How to and daily hack content to solve problems quickly • Expertise and influencer content to validate product performance
  • 39. Case Examples “Passion” Archetype How a “Passion” Brand Behaves in Mono-Brand DTC Business Imperative • Amplify brand purpose and drive usage to a larger customer base Business Imperative • DTC.com and links in from social Role of Content • Pull commerce to attract new users to the brand • Content needs to amplify purpose and develop sense of community • Importance of authenticity and innovation narrative • Bespoke in the way the brand behaves and interacts with audiences, developing a sense of community that drives purchase • Personalization of content key to delivering brand experience
  • 40. May 7, 2019 Mono Brand DTC Portfolio Brand DTC 3rd Party eCommerce 1. 2. 3. Portfolio Brand DTC is a multi-brand digital marketplace Portfolio Brand DTC enables the development of category, brand, product, and lifestyle content Allows for entire portfolio to be sold and provides opportunity for new SKUs to be introduced Leverages innovative technology to simplify consumers’ lives and create new value propositions Enables collect ion of consumer data for development of meaningful personal relationships 4. 5. Defining portfolio DTC
  • 41. Need Choice Passion 1 2 3 Portfolio Brand DTC Encompasses All 3 Digital Brand Archetypes All 3 digital brand archetypes exist in portfolio brand DTC experiences
  • 42. CRM Drive consumer engagement, brand affinity and brand loyalty Content Creating authentic bespoke content and UGC. Innovation Create new products and brand. Commerce Provide consumers with purchasing choices that simplify their lives Concept The main reason ‘why’ people will interact with & buy from a multi-brand digital marketplace Portfolio brand DTC success depends on a powerful concept
  • 47. Mindset Shift Strategic Shift Accelerate Growth 3rd Party eCommerce 3rd party eCommerce is a must for “Need” and “Choice” brands 1 Mono-Brand DTC "Choice” & “Passion" brands are a selective fit for Mono-Brand DTC 2 Portfolio Brand DTC Portfolio brand DTC allows you to behave like a retailer with omnichannel strategies 3 Three implications for CPGS
  • 48. 3rd Party eCommerce Mono Brand DTC Portfolio Brand DTC Brand/Product Archetype A Market to the algorithm No Yes Concept-driven multi-brand, multi-purpose DTC Brand/Product Archetype B Market beyond the algorithm to demand drivers Selective New news + innovation to drive relevance + Seasonality Brand/Product Archetype C Market beyond the algorithm to people’s passion points Selective Personalization + innovation Authentic + bespoke + Seasonality The End Result
  • 49. Questions? PIERRE KREMER EMEA E-Commerce Lead Ogilvy Consulting LAURIE CLOSE Consultant Ogilvy Consulting