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WINNING CUSTOMER LOYALTY
through digitally empowered packaging
Larry Logan
Chief Marketing Officer
Digimarc Corporation
AGENDA
1.  Challenging Times
2.  The Consumer Demand for Content
3.  Challenges to Providing Consumer Content
4.  Types of Package Triggers
5.  Our Approach at Digimarc
6.  Types of Content
7.  The Package as Brand Narrator
8.  Q&A	
  
Topics
20 YEARS OF INNOVATION AT DIGIMARC®
1100
Patents
Issued and pending
20
Years of Operation
Well capitalized public
company with strong
operating history
EXPERTISE
Print Technologies
and processes
APPLICATIONS
Industry Standards
in security for currency, government
issued IDs, and movies; additional
applications in audience
measurement for TV and radio, print-
to-mobile publishing, copyright
protections, and shopper’s journey
enablement.
18
Years in Security
Continuous service to global
consortium of Central Banks
LATEST DEVELOPMENT
Digimarc® Discover
and Barcode
focused on retailers, brands, and
modern mobile-centric shoppers.
CHALLENGING TIMES
CONSUMER BEHAVIOR
IS CHANGING
of GenY (18-29) use a smartphone
WHILE SHOPPING IN-STORE
Sources: Google Shopper Marketing Agency Council; Deloitte
“Navigating the Digital Divide 2015” Thrive Analytics and Local
Search Association, “Local Mobile Trends Survey,” April 2014
are willing to
SCAN PRODUCTS
CONSUMERS WANT
MOBILE ENGAGEMENT
73%97%
Sources: Google Shopper Marketing Agency Council; Deloitte
“Navigating the Digital Divide 2015” Thrive Analytics and Local
Search Association, “Local Mobile Trends Survey,” April 2014
less YOY for $ comparison
MORE FOR INSPIRATION AND IDEAS
MORE $ SPEND
CONSUMERS WANT
MOBILE ENGAGEMENT
30% 25%
Digimarc – Harris Survey October 2016
of U.S. adults say reading a product
package in store helps them make a
PURCHASE DECISION
85%
CONSUMERS WANT
MOBILE ENGAGEMENT
of U.S. adults have wanted
than appears on a product
package.
MORE INFORMATION
CONSUMERS WANT
MOBILE ENGAGEMENT
78%
Digimarc – Harris Survey October 2016
are more likely to research and
when they do not get the info they
need.
PURCHASE ONLINE
75%
CONSUMERS WANT
MOBILE ENGAGEMENT
Digimarc – Harris Survey October 2016
PACKAGING REAL ESTATE
IS BECOMING EXHAUSTED
“
”
…packagers must still create a label
that includes all necessary information,
but on a much smaller space.
“Personal care packaging gets personal,”
Packaging Strategies Magazine, January 12, 2016
CONSUMERS DEMAND
SMALLER PACKAGES
1
2
3
4
5
6
OPERATIONAL EFFICIENCIES
WHAT ARE THE
ENGAGEMENT
TRIGGERS?
UPC & QR CODES
Looks like thisPerforms like this
DIGIMARC BARCODE /
GS1 US DWCODE
BENEFITS TO THE RETAILER
SCAN AT ANY ANGLE
•  Faster checkout
•  Easier self check-out
•  Scans even with damaged
or hard-to-read UPC codes
BRAND ENGAGEMENT
•  Health programs
•  How-to videos
•  SmartLabel™ content
•  Coupons/promotions
BENEFITS TO THE CONSUMER
1
2
3
4
5
6
SIX BARCODES
OR 200?
DYNAMIC
UPDATING
SERIALIZED CODES
Customer
Location
Refill Date
Special Offers
0001 0002
Benefits	
  to	
  the	
  brand	
  
Manufacturing	
  
•  Efficiencies	
  in	
  on-­‐line	
  produc6on	
  
•  Reduced	
  inventory	
  shrinkage	
  
•  Improved	
  quality	
  control	
  
•  Tracking	
  of	
  design	
  revision	
  control	
  
•  Lot	
  and	
  manufacturing	
  date	
  codes	
  
for	
  food	
  safety	
  
Warehouse	
  
•  Efficiencies	
  in	
  order	
  fulfillment	
  
•  Enhanced	
  inventory	
  control	
  
•  Traceability	
  of	
  returns	
  &	
  
reclama6ons	
  
•  Speed	
  of	
  pick	
  &	
  pack	
  
Retail	
  	
  
Distribu5on	
  Center	
  
•  Speed	
  of	
  order	
  fulfillment	
  
•  Enhanced	
  inventory	
  control	
  
•  Traceability	
  of	
  returns	
  &	
  
reclama6ons	
  
•  Speed	
  of	
  pick	
  &	
  pack	
  
Retail	
  Store	
  
•  In	
  store	
  consumer	
  engagement	
  
•  Evalua6on	
  of	
  planogram	
  compliance	
  
•  Faster	
  and	
  more	
  efficient	
  retail	
  
servicing	
  	
  
•  Restocking	
  &	
  direct	
  store	
  
distribu6on	
  	
  opportuni6es	
  
•  Improved	
  loss	
  preven6on-­‐
barcode	
  swapping	
  
•  BeFer	
  checkout	
  experience	
  both	
  
aFended	
  and	
  self	
  check	
  out	
  
•  Delivery	
  of	
  couponing	
  	
  
&	
  loyalty	
  programs	
  
•  Reduced	
  inventory	
  shrinkage	
  
Point	
  of	
  Sale	
  
•  Improved	
  consumer	
  informa6on	
  
•  Access	
  to	
  SmartLabel™	
  
•  Digitally	
  enabled	
  POS	
  signage	
  
•  Evalua6on	
  of	
  OSA	
  (On	
  Shelf	
  Availability)	
  
Home	
  
•  Access	
  to	
  product	
  	
  availability	
  
•  Increased	
  product	
  informa6on	
  
•  Immediate	
  placement	
  of	
  product	
  reviews	
  
•  Immediate	
  access	
  to	
  online	
  product	
  reviews	
  
•  Product	
  lifestyle	
  and	
  usage	
  informa6on	
  
BENEFITS TO THE BRAND
TYPES OF
COMMUNICATIONS
Product recommendations
Use guidance
Brand story
Edu-tainment
Social networks
Re-ordering
Product transparency
•  Smart Label
•  Nutrition Facts Label
•  GMO Labeling
COMPLIANCE
SHAZAM
DAGSCHOTEL
GMO – Safe and Accurate
Food Labeling Act
Food Nutrition Label
Deadline July 26, 2018
PRODUCT TRANSPARENCY
SmartLabel™
Conceptual — for demonstration purposes only
SmartLabel™
Conceptual — for demonstration purposes only
Conceptual — for demonstration purposes only
LOCATION-­‐SPECIFIC	
  	
  
AUDIO	
  RECOGNITION	
  
Conceptual — for demonstration purposes only
BUY	
  NOW	
  
PRODUCT	
  INFO	
  
REVIEWS	
  
RECIPES	
  
RECOMMENDATIONS	
  
TRIVIA	
  
SHOPPING	
  LISTS	
  
PRODUCT	
  LOCATOR	
  
HOW	
  TO	
  VIDEOS	
  
COUPONS	
  
SWEEPSTAKES	
  
SHARE	
  
MOBILE	
  CHECKOUT	
  
SCAVENGER	
  HUNT	
  
BUY	
  NOW	
  
PRODUCT	
  INFO	
  
REVIEWS	
  
RECIPES	
  
RECOMMENDATIONS	
  
TRIVIA	
  
SHOPPING	
  LISTS	
  
PRODUCT	
  LOCATOR	
  
HOW	
  TO	
  VIDEOS	
  
COUPONS	
  
CONTESTS	
  
SHARE	
  
MOBILE	
  CHECKOUT	
  
SCAVENGER	
  HUNT	
  
Would be willing to pay
MORE FOR
A PRODUCT
that offers complete
transparency in all
attributes.
Would be
LOYAL FOR LIFE
if it provided complete
transparency
Would
SWITCH TO A
NEW BRAND
if it offered full product
transparency
TRANSPARENCY = MORE MARKET SHARE
39% 56% 73%
2016 Label Insights Transparency ROI Study
FUTURE PROOF
YOUR PACKAGING
YOUR PACKAGE
AS BRAND NARRATOR
Challenging Times
The Consumer Demand for Content
Challenges to Providing Consumer Content
Types of Package Triggers
Our Approach at Digimarc
Types of Content
The Package as Brand Narrator
Q&A	
  
Topic
00:05	
  
00:00
00:00
00:00
00:00
00:00
00:00
00:00
	
  
The Barcode of Everything™
©2016 Digimarc Corporation
Larry Logan
Chief Marketing Officer
Digimarc Corporation
larry.logan@digimarc.com

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Larry Logan Live Webinar: Winning Customer Loyalty Through Digitally Empowered Packaging

  • 1. WINNING CUSTOMER LOYALTY through digitally empowered packaging Larry Logan Chief Marketing Officer Digimarc Corporation
  • 2. AGENDA 1.  Challenging Times 2.  The Consumer Demand for Content 3.  Challenges to Providing Consumer Content 4.  Types of Package Triggers 5.  Our Approach at Digimarc 6.  Types of Content 7.  The Package as Brand Narrator 8.  Q&A   Topics
  • 3. 20 YEARS OF INNOVATION AT DIGIMARC® 1100 Patents Issued and pending 20 Years of Operation Well capitalized public company with strong operating history EXPERTISE Print Technologies and processes APPLICATIONS Industry Standards in security for currency, government issued IDs, and movies; additional applications in audience measurement for TV and radio, print- to-mobile publishing, copyright protections, and shopper’s journey enablement. 18 Years in Security Continuous service to global consortium of Central Banks LATEST DEVELOPMENT Digimarc® Discover and Barcode focused on retailers, brands, and modern mobile-centric shoppers.
  • 6. of GenY (18-29) use a smartphone WHILE SHOPPING IN-STORE Sources: Google Shopper Marketing Agency Council; Deloitte “Navigating the Digital Divide 2015” Thrive Analytics and Local Search Association, “Local Mobile Trends Survey,” April 2014 are willing to SCAN PRODUCTS CONSUMERS WANT MOBILE ENGAGEMENT 73%97%
  • 7. Sources: Google Shopper Marketing Agency Council; Deloitte “Navigating the Digital Divide 2015” Thrive Analytics and Local Search Association, “Local Mobile Trends Survey,” April 2014 less YOY for $ comparison MORE FOR INSPIRATION AND IDEAS MORE $ SPEND CONSUMERS WANT MOBILE ENGAGEMENT 30% 25%
  • 8. Digimarc – Harris Survey October 2016 of U.S. adults say reading a product package in store helps them make a PURCHASE DECISION 85% CONSUMERS WANT MOBILE ENGAGEMENT
  • 9. of U.S. adults have wanted than appears on a product package. MORE INFORMATION CONSUMERS WANT MOBILE ENGAGEMENT 78% Digimarc – Harris Survey October 2016
  • 10. are more likely to research and when they do not get the info they need. PURCHASE ONLINE 75% CONSUMERS WANT MOBILE ENGAGEMENT Digimarc – Harris Survey October 2016
  • 11. PACKAGING REAL ESTATE IS BECOMING EXHAUSTED
  • 12. “ ” …packagers must still create a label that includes all necessary information, but on a much smaller space. “Personal care packaging gets personal,” Packaging Strategies Magazine, January 12, 2016 CONSUMERS DEMAND SMALLER PACKAGES
  • 15. UPC & QR CODES
  • 16. Looks like thisPerforms like this DIGIMARC BARCODE / GS1 US DWCODE
  • 17. BENEFITS TO THE RETAILER SCAN AT ANY ANGLE •  Faster checkout •  Easier self check-out •  Scans even with damaged or hard-to-read UPC codes BRAND ENGAGEMENT •  Health programs •  How-to videos •  SmartLabel™ content •  Coupons/promotions BENEFITS TO THE CONSUMER
  • 21. Benefits  to  the  brand   Manufacturing   •  Efficiencies  in  on-­‐line  produc6on   •  Reduced  inventory  shrinkage   •  Improved  quality  control   •  Tracking  of  design  revision  control   •  Lot  and  manufacturing  date  codes   for  food  safety   Warehouse   •  Efficiencies  in  order  fulfillment   •  Enhanced  inventory  control   •  Traceability  of  returns  &   reclama6ons   •  Speed  of  pick  &  pack   Retail     Distribu5on  Center   •  Speed  of  order  fulfillment   •  Enhanced  inventory  control   •  Traceability  of  returns  &   reclama6ons   •  Speed  of  pick  &  pack   Retail  Store   •  In  store  consumer  engagement   •  Evalua6on  of  planogram  compliance   •  Faster  and  more  efficient  retail   servicing     •  Restocking  &  direct  store   distribu6on    opportuni6es   •  Improved  loss  preven6on-­‐ barcode  swapping   •  BeFer  checkout  experience  both   aFended  and  self  check  out   •  Delivery  of  couponing     &  loyalty  programs   •  Reduced  inventory  shrinkage   Point  of  Sale   •  Improved  consumer  informa6on   •  Access  to  SmartLabel™   •  Digitally  enabled  POS  signage   •  Evalua6on  of  OSA  (On  Shelf  Availability)   Home   •  Access  to  product    availability   •  Increased  product  informa6on   •  Immediate  placement  of  product  reviews   •  Immediate  access  to  online  product  reviews   •  Product  lifestyle  and  usage  informa6on   BENEFITS TO THE BRAND
  • 22. TYPES OF COMMUNICATIONS Product recommendations Use guidance Brand story Edu-tainment Social networks Re-ordering Product transparency •  Smart Label •  Nutrition Facts Label •  GMO Labeling
  • 26. GMO – Safe and Accurate Food Labeling Act Food Nutrition Label Deadline July 26, 2018 PRODUCT TRANSPARENCY
  • 27. SmartLabel™ Conceptual — for demonstration purposes only
  • 28. SmartLabel™ Conceptual — for demonstration purposes only
  • 29. Conceptual — for demonstration purposes only LOCATION-­‐SPECIFIC     AUDIO  RECOGNITION  
  • 30. Conceptual — for demonstration purposes only BUY  NOW   PRODUCT  INFO   REVIEWS   RECIPES   RECOMMENDATIONS   TRIVIA   SHOPPING  LISTS   PRODUCT  LOCATOR   HOW  TO  VIDEOS   COUPONS   SWEEPSTAKES   SHARE   MOBILE  CHECKOUT   SCAVENGER  HUNT   BUY  NOW   PRODUCT  INFO   REVIEWS   RECIPES   RECOMMENDATIONS   TRIVIA   SHOPPING  LISTS   PRODUCT  LOCATOR   HOW  TO  VIDEOS   COUPONS   CONTESTS   SHARE   MOBILE  CHECKOUT   SCAVENGER  HUNT  
  • 31. Would be willing to pay MORE FOR A PRODUCT that offers complete transparency in all attributes. Would be LOYAL FOR LIFE if it provided complete transparency Would SWITCH TO A NEW BRAND if it offered full product transparency TRANSPARENCY = MORE MARKET SHARE 39% 56% 73% 2016 Label Insights Transparency ROI Study
  • 34. Challenging Times The Consumer Demand for Content Challenges to Providing Consumer Content Types of Package Triggers Our Approach at Digimarc Types of Content The Package as Brand Narrator Q&A   Topic 00:05   00:00 00:00 00:00 00:00 00:00 00:00 00:00   The Barcode of Everything™ ©2016 Digimarc Corporation Larry Logan Chief Marketing Officer Digimarc Corporation larry.logan@digimarc.com