The Light Agency has identified an opportunity to generate £60 million for Retail Partners like Carrefour over five years through a mobile marketing service called M BAR GO that requires no capital investment. M BAR GO allows targeted digital coupons to be sent to opted-in mobile phones and redeemed at point of sale. It has been successful for Sainsbury's, increasing membership, basket size, and sales. The Light Agency proposes to fund integration costs and share 30-50% of revenue with Carrefour, estimated at £3.45-23 million annually based on projected membership growth over four years.
2. Executive Overview
• We have identified an opportunity that will conservatively
generate an additional £60 million for Retail Partners
over the next five years
• The opportunity takes no floor space and requires no
capital investment by Retail Partners
• The opportunity is well supported by a number of leading
suppliers including P&G, Mars and Unilever
4. Who are The Light Agency?
• The Light Agency is a multi award winning, international mobile
marketing services company with a blue-chip client list including P&G,
Mars, Unilever, Warner Music Group and News Group Ltd.
• Our flagship technology M BAR GO® is widely recognised as the best
solution for connecting mobile phones with retailer’s EPoS systems, a
view shared by both the retail and marketing industry and by one of
the world’s leading handset manufacturers.
5. We have won more awards than anyone
else in mobile-to-retail marketing
Mobile Marketing Retail Solutions DR Intelligence Revolution Retail Week Red Herring
Most innovative European Intelligent Most Innovative Retail 100
use of Retail Innovation Award Digital Business Technology Europe
mobile in Technology & 2005 Initiative of the Award
marketing Solution of FMCG Award & Year
& the Year & Best Use
Best example Intelligent Application of
of mobile creating of Data (Mobile) Wireless 2006
customer benefit Award
6. What is M BAR GO®
• M BAR GO® is patent protected solution that we describe as a
glue which sticks three worlds together; mobile handsets,
EPoS systems and an intelligent, flexible database.
• M BAR GO® is compatible with all handsets across all mobile
networks. It is compatible with most EPoS systems and we can
confirm that it is compatible with many of Carrefour Group’s
systems.
• M BAR GO® enables us to send targeted discount coupons to
opted-in members of clubs.
• M BAR GO® is proven, supported by leading manufacturers
and very scaleable.
9. Groupe Carrefour customers benefit
from M BAR GO® in a number of ways
1. More savings in store – instant gratification
2. Enhances the shopping experience through an interactive
two-way dialogue
3. Mobile is the most ubiquitous consumer electronics device;
your customers are never without their phone
4. Wider customer appeal. No need to clip coupons or forget to
bring coupons to store
5. Extra mobile-related features e.g. free ringtone or game with
purchase
6. Multi-channel - easy to use in store & online
10. Groupe Carrefour benefits from
M BAR GO® in a number of ways
1. Substantial new marketing revenue stream
2. Creates improved dialogue with customers
3. Increases transactional value and drives traffic to store
4. Improves customer data/targeting
- Real time basket data/customer data
- Price Modelling
- Ability to drill down to individual store level
5. Powerful tool to clear stock
6. Ability to integrate into multi-channels (online, in-store) to
provide immediate ROI measurement on marketing spend
7. Creates a buzz in the marketplace
11. Manufacturers benefit from M BAR GO®
1. Offers are targeted using real-time shopping data
2. Robust pricing model and targeting
3. Faster turnaround than paper coupons
4. Real-time reporting of redemptions
5. Further branding opportunities for both manufacturer and
retailer (e.g. Baby development tips sent to mobile when
customer buys Pampers enhances the shopping/product
experience)
13. M BAR GO® Consumer Experience
1. Customer opts in to the club by text to a shortcode
2. Barcode is sent to customer’s mobile phone - We call this
barcode a Unique ID. No two mobile phone subscribers are
ever issued the same Unique ID.
3. Member receives offers - Offers become more targeted
every time the member redeems offers.
4. Member requests offers - Members can text us at any time
asking for a special deal.
14. M BAR GO® Consumer Experience
5. Member shows their Unique ID at point-of-sale - The
Unique ID is scanned by the sales assistant using a standard
barcode reader.
6. Discount is given automatically - One scan of the barcode,
regardless of how many offers are being claimed.
7. Thank you message – Retailer/Advertisers can choose to
send a thank you message to the consumer for purchasing
their brand or reward the customer with content, ringtones,
mobile top ups etc.
15. How Group Carrefour can maximise
the M BAR GO® Consumer
Experience
Here are just some ideas how Groupe Carrefour can
enhance the customer experience:
• Invite to special events in store
• Target new product alerts
• Competitions
• Store Openings
• Integrate the multi-channel message
• Instant gratification
17. Manufacturer testimonials - P&G
“M BAR GO represents an amazing opportunity for
P&G to connect with consumers, offering a direct
response call to action via mobile.
With the right retailer buy-in the technology could
genuinely revolutionise the direct to consumer
market”.
P&G UK
18. Manufacturer testimonials - Unilever
“M BAR GO® offers such a fantastic means of
targeting, from location of shop through to actual
shopper behaviour (what else do they purchase with
our products? How often? etc...).
We would definitely recommend working with this
technology, as well as the team”.
Unilever UK
21. Segmenting & targeting
• The M BAR GO® Database collects all of the customer’s
transactional data when the barcode is scanned
• TLA is able to segment and target customers based on their
product preferences, purchasing habits, frequency of visits,
time and date etc
• By targeting a customer with the right offer at the right time we
generate a behaviour change
• We can also send time stamped offers, seasonal offers,
invitations, updates, rewards, games, ringtones etc.
23. Sainsbury’s Case Study
• Sainsbury’s invited TLA to conduct a pilot within a television
region; 35 stores in the city of Hull in their ‘Sainsbury’s at
Jacksons’ stores
• TLA funded and managed technology integration, consumer
marketing, staff training, manufacturer support and customer
support
• The case study has won over a dozen industry awards
including European Retail Solutions Grand Prix and Retail
Week
24. Sainsbury’s Headline Results
• Over 6% of population signed up to club in first two months
• Over 250+ brands supporting the programme
• Less than 14 days IT resource was required from Sainsbury’s
head office
• Average transaction value of programme members is double
non-members’
• Average items in basket of programme members is double
non-members
• Manufacturers report significant uplift in sales when online with
programme
26. SHOP SCAN SAVE
increases basket size
£10.42
Jacksons regular customer
£8.72 Jacksons SSS customer Feb 06
Jacksons SSS customer July 06
7.05
5.9
£4.89
3.6
Av. spend per basket Av. no. of items per basket
Source: Innovetra Basket Analysis. Dec 2005
30. Mobile phone ownership and usage
is universal and growing in the UK
Mobile handset penetration 82% (age 16+)
50% 2+ handset penetration
there are more mobile phones in the UK than people
Very high turnover of older phones
18m new handsets sold each year
Rapid growth set to continue
2010 will index 270 vs 2005 (retail value)
Source: Mintel Apr 2005
31. Every socio-demographic
group uses a mobile phone
Mobile phone penetration (%) The younger the consumer is,
Men 82.2 Single 87.8 the more likely he/she is to
Women 80.1 Married 82.5 own a mobile phone; much
higher levels of penetration
15-24 93.2 Greater London 81.5
South East/East
will be seen in future years.
25-34 91.9 83.8
Anglia
35-44 89.7 South West 82.2
45-54 83.2 Wales 79.6
Don’t forget the older
55-64 75.3 East and West 82.9 generation; 75% of 55-64s
Midlands
65+ 57.0 North West 79.7 own a mobile phone.
Yorkshire & 78.2
Humberside
AB 85.6 North 77.9
C1 83.5 Scotland 76.3
C2 81.4
D 78.1
E 65.5 Source: Mintel Apr 2005
32. Mobile phones are not just
for phone calls
SMS represents one third of all mobile traffic
1
txt users more likely to be C1C2D
(AB 25% text traffic, C1 32%, C2 36%, DE 35%)
2
UK ringtone market worth £120m in 2004
twice as much as CD singles market
3m cinema tickets distributed in ‘05 via mobile phones
1 2
Mintel Apr 2005 KPMG 2004
33. Why mobile?
More shoppers own a mobile than just
about any other consumer electronics
device.
Your suppliers are investing heavily
into mobile marketing. Our brand
partners, P&G, Unilever,
Masterfoods, Nestlé and Coca Cola
just to name a few are focusing on
mobile marketing opportunities.
Mobile is the only marketing channel
that can deliver immediate interaction
in-home and in-store.
35. Membership Projections
• We have developed a model for projecting membership
acquisition of a mobile savers club for Carrefour retailers
• The model assumes stores recruit 5 members per day and that
the Carrefour subsidiary has 500 stores
• The model does not take into account new store
openings/expansion
• An accurate projection can be created on request by Groupe
Carrefour retailers to The Light Agency
36. Five members/day per store
Members
opted-in to
M BAR GO®
Year 1 900,000
Year 2 1.8 million
Year 3 2.7 million
Year 4 3.6 million
37. Revenue Model
• Manufacturers are charged in two components;
- 7 pence per offer sent
- 15 pence per offer redeemed
• Members receive 5 offers a week
• Redemption rate of 2% built into revenue model
• The following pages show revenue after direct costs (SMS)
38. Two members/day per store
Members Annual
opted-in to Revenue after
M BAR GO® direct costs
Year 1 900,000 £11.5 million
Year 2 1.8 million £23 million
Year 3 2.7 million £34.5 million
Year 4 3.6 million £46 million
39. Commercial Proposal
• The Light Agency will fund all costs associated with technology
integration and rollout including;
- EPoS integration associated IT costs
- Staff training materials
- Head office support
- Member support line
• Groupe Carrefour will fund all internal (store) marketing to
promote the service to its customers.
• Groupe Carrefour will receive between 30% and 50% of
revenue after direct costs (dependant on number of members
recruited in store).
40. Carrefour Revenue Share
Members Annual
opted-in Revenue
Carrefour Carrefour
to after
Share Revenue
M BAR direct
GO® costs
£11.5
Year 1 900,000 30% £3.45 million
million
£23
Year 2 1.8 million 35% £8 million
million
£34.5
Year 3 2.7 million 45% £13.8 million
million
£46
Year 4 3.6 million 50% £23 million
million
41. Increasing Turnover by Increasing
Average Transaction Value
• Our programme with Sainsbury’s has recorded a significant
increase in Average Transaction Value amongst members
(non members ATV = £4.89/ members ATV = £10.42)
• This represents an increase in ATV of 113%
• We achieve this uplift in ATV by persuading the shopper to
buy more items (non members = 3.6 items/members = 7.05
items)
• For the purpose of this presentation we have assumed an
increase in ATV amongst members of 20% and an ATV of
€20 and visits a store 24 times a year
42. Increasing Turnover by Increasing
Average Transaction Value
Members
opted-in
Historical Recording a
to
ATV 20% uplift
M BAR
GO®
€432 €86.4
Year 1 900,000
million million
€864 €172.8
Year 2 1.8 million
million million
€1,296 €259.2
Year 3 2.7 million
million million
€1,728 €345.6
Year 4 3.6 million
million million
44. Carrefour Launch Strategy -
Our Commitment
• We will establish operations in close proximity to your offices
• We will work with your EPoS supplier, your IT team and your
online agency to integrate M BAR GO® with your systems
• We will engage with your category managers to understand
your preferences for manufacturer partners
• We will develop training, support and incentive programmes
for your sales consultants
• We will provide exemplary support to your customers, stores,
suppliers and head office
• We will grant channel exclusivity for 12 months from the time
of a national launch
45. Carrefour - Our Long term
Commitment
• We will respect your members and will never share their
information with any third party
• We will never send your members an offer without asking you
to sign-off on the message and the offer first
• We will provide you, your customers and your suppliers with
exemplary service
• We will make it easy for you to audit our data
• Wherever possible, we will adapt M BAR GO® administrative
procedures to follow your standards
• We will hold ongoing dialogue with your managers to
understand how we can improve M BAR GO® for you
46. EPoS Integration Strategy
• M BAR GO® can be easily integrated into Carrefour’s EPoS
systems
• We will consult with your EPoS suppliers and engage directly
with them to manage integration
• Integration typically takes less than 60 days
• Full documentation of the M BAR GO® integration will be
shared with Carrefour
• Once integrated, M BAR GO® will be rolled out nationwide with
the next release/update of your EPoS
47. Member Recruitment Strategy
• Multi-channel recruitment strategy: Television, PR, Radio, In-
store (Colleague and POS), Word of Mouth, Online, Field
Marketing, Viral Campaigns
• TLA would leverage their strong relationships with leading
manufacturers including P&G, Unilever, Mars, Coca Cola for
further incentives
• Sales consultants will be rewarded for signing up members to
the programme
51. Snap works with any camera-phone
Take snap of Send by MMS Show your
advertisement or to 62111 membership
packaging ID barcode at
with camera phone the checkout
and receive
your discounts
Receive
offers and/or
content
52. SNAP lets shoppers connect with
brands with one easy click
• SNAP SEND SAVE technology instantly matches pictures taken by
consumers to any hosted media
• A scalable, flexible patented solution which deploys image recovery, pattern
recognition and image matching algorithms
• Service supports all camera phones using picture messaging on the
handset – including self-service interfaces for visuals, mobile content, and
access to usage data
• High capacity messaging and mobile application infrastructure has been
developed with support for MMS, SMS, and WAP, and web services
interfaces are provided for third-party integration
55. • Entertainment As Reward (EAR) is a loyalty program and can be compared
to Nectar and Air Miles.
• EAR is targeted at Generation X and Y (18 to 35 year olds)
• Members of EAR earn points by shopping in the right places, buying the
right brands, using the right mobile network or bank and partying in the right
places
• Members of EAR spend points on entertainment,
which is downloaded to their mobile phone or PC
56.
57.
58.
59. • The flagship tenant of EAR will be a Mobile Network Operator
• Partners of EAR will include:
Retailers
Leisure & Hospitality
Bank/Building Society
• Other sponsors of EAR will include:
Handset manufacturers
FMCG manufacturers
Airline/Hotel/Car rental
60.
61.
62.
63. Thank you
For more information please
contact Marc Lewis, Chairman,
+44 7980 296 605