Back to School Trends and Observations 2011

Back-to-SchoolTrends & Observations

March 2011Prepared by: James Powell, Director Insights and Planning

Jeff Pontes, Director Digital Strategy

Agenda 1. Back-to-school trends

2. Back-to-school shoppers

3. Back-to-school engagement vehicles

4. Best-in-class examples

1) back-to-school trends

BTS shopping

• Back-to-school has grown from a pens & paper event into the second busiest shopping season of the year. o Canadians spent 34.5B in retail stores in August 2009.

• Of the $10,262 it costs to educate the average Canadian

student in 2009 only $4,724 goes towards tuition. This leaves lots on the table for other 'school related' purchases across the year.

• This insight document takes a look a number of secondary

sources in Canada and US to provide you with some high level and directional insights to get you into the spirit of heading back to school.

CDN source: CBC August 2010

Spending on BTS is increasing

US source: Deloitte's 2010 BTS Survey

• Canadians planned to spend an average of $621 online and in-store for back-to-school in 2010. This is up from $600 in 2009.CDN source: VISA 2010 BTS Survey

Back-to-school starts early

BTS is starting earlier

• Since 2009, the day after Canada Day marks the un-official start to BTS gear up for retailers

• 48 percent of shoppers start planning a month before the start of the school year and yet 70% do their actual shopping less than three weeks before school starts

Back-to-school starts online

Shopping starts online

• 55% of Canadian shoppers will look to the Internet for their back-to-school shopping preparations

• Canadians are turning online for better prices (48%),

convenience (40%) and better sales and promotions (35%)o VISA Canada 2010 BTS Survey

New gear, new gadgets

Back-to-School Spending

Back-to-College Spending

2) back-to-school shoppers

Millenials (15-32)

• Success is rooted in personal satisfaction, not only material status**

Global source: Iconoculture Quant Analyzer

Millenials (15-32)

• 1 in 5 Millenials have posted a video of themselves online• 4 in 10 have a tattoo (70% hidden beneath clothing)• 1 in 4 are unaffiliated with any religion, far more than older

generations when they were this age• Only 32% think gay couples raising children is bad for

societyUS source: Pew Research Centre, 2010


teens & tweens

teens & tweens

• The teen & tween population has never known a world without broadband

Global source: Collective Intellect 2011Global source: Iconoculture Quant Analyzer

teens & tweens

• 35% of teens haven't "friended" their parents on Facebooko Kaplan Test Prep, January 18, 2011

• 93% of tween girls and 91% of tween boys play games onlineo Gamasutra.com, August 19, 2010

• 72% of teens & tweens are active texterso Pew Research Centre, April 20, 2010

• Breaking down male/female stereotypes. Teens and tweens aren't making the same boy-thing or girl-thing judgementso Iconoculture, January 2011

• Men will spend 35% than women on back-to-school merchandiseo Men plan to spend more on electronics, clothing, personal

care and dorm decor.o US Source: National Retail Foundation, Top 2010 BTS Trends

teens & tweens

• The majority of conversations teens are having in school hallways originate on Facebook

CDN source: 2011 DECODING Digital Friends study

Don't forgetmom & dad

Don't forget about mom & dad

• Many students are not along for the ride for BTS shopping. Promotions and messaging should incorporate, or at least consider, the actual person doing the shopping.

3) BTS engagementvehicles

Keep it direct

• Retailers are rewarded for focusing on direct, personalized messaging and promotions.

Mobile is the killer app


• Demand for local relevance, in-the-moment social connection, and immediate access to content has quickly migrated mobile devices from third to first screen

• Mobile's role is an ultra-personalized "life remote" and as a status badge to many teens, tweens and twenty-somethings

• Standalone "smart" devices aren't enough, consumers are looking for intelligent networking solutions that connect all their devices together.

• As mobile integration continues to grow expect consumer tension to grow again data caps and as new service providers challenge older pricing models




US source: Deloitte's 2010 BTS Survey

Let's Get Social

Everything is now rateable

• What started off as ratings only on products has now evolved into educators, doctors, service providers, relatives and friends

• 67% of high school students rate things through social mediao CDN source: 2011 DECODING Digital Friends study

It's not the size of the network...

• It's about the size of the coreo Average total network for teens: 380o (Average total for people 15 to 35 = 283) o The core teen network: 43o Average number of best friends: 6o Average number of close friends: 22o Average number of family members: 15

• Trusted opinions, recommendations and influence come

from the core, not from the broader network of "friends"

CDN source: 2011 DECODING Digital Friends study

Older students are more active content creators

High Online Activity Does not translate to High Interactions With Brand• They don’t want to be your friend on Facebook

o More than half of 12- to 17-year-olds are using social networks to stay in touch with friends*

• They want brands to "speak when spoken to"o 28% of youths expect companies to listen to what they’re saying

on social networks and respond if they have questions*• Social networks are their customer review sites

o 15% of young consumers have posted their opinions of a product or service 41 or more times on Facebook*

• The top favourite types of information received digitally from brands are 65% Free stuff, 35% Promotions, 33% Contesto CDN source: 2011 DECODING Digital Friends study

*Source: Understanding the Intricate Digital Behaviors of Young Consumers, March 1, 2011, Forrester Research

I want to be famous...

• Youth are looking to YouTube to to get noticed for their talents• An industry supporting amateur artists

in their pursuit is on the rise

Let's Get Local

Let's get local

• Almost 80% of location-based service users are male • Close to 70% of them are between the ages of 19 and 35

• 70% have college degrees or higher

• 38% are buying influencers

• Forrester recommends that gaming, consumer electronics

and sportswear marketers should lead the way with testing these apps

Location-Based Social Networks: A Hint Of Mobile Engagement Emerges, Melissa Parrish, July 2010

Gamification is the new Web 2.0

Gamification influences consumer behaviour• ga-mi-fi-ca-tion: Integrating game dynamics into your site, service,

community, content or campaign, in order to drive participation*• Been around since loyalty programs in the 1800's while technology has now

introduced more advanced mechanics (eg. virtual goods)

Since humans have a psychological predisposition to engage in gaming it may be applied to anyone *Gamification 101: An Introduction to the Use of Game

Dynamics to INfluence Behavior, Bunchball, 2010

Game mechanics fulfill human desires

• How can your brand capitalize?

*Gamification 101: An Introduction to the Use of Game Dynamics to INfluence Behavior, Bunchball, 2010

Status is king

• Status serves as a form of currency holding a high perceived value within the social circle in which it is held

Price isn't the only game in town

FREEdom reigns

TEEN's respond "I like this brand and havecommunicated with them digitally.

Make it FUN

• When talking to consumers in August you are in the middle of their summer break.

• Back-to-school promotions have lots to compete witho summer vacationso summer entertainment options

movies, sports, amusements, outdoorso time with friendso summer jobs

• Don't forget to add in the fun factor to your offer

You've got to give to get

You've got to give to get

• Brand/cause partnerships have evolved into one of the most powerful ways to authentically (re)connect with consumers

• Consumers are looking to go beyond pink ribbons and

yellow bracelets to have more meaningful cause connections

• Companies need to show authentic long-term commitments

to the cause they algin with and provide deeper engagement (and customer rewards) to build a legacyo Iconoculture insights

4) Best in Class

covers.muchmusic.comcovers.muchmusic.com

getloud.garage.cagetloud.garage.ca

Diesel CamDiesel Cam

Facebook Coca-Cola Village Israel 3 day event (like VirginFest) using RFID chip tied to Facebook account

Facebook Coca-Cola Village Israel 3 day event (like VirginFest) using RFID chip tied to Facebook account

• 5th most “liked” Canadian brand on Facebook

oBehind giants RIM, Tim Horton’s, Budweiser and Telus)

• Launching a game oBuild your

own amusement park like Farmville

• Will be incorporating additional games similar to the games found at the park

• 5th most “liked” Canadian brand on Facebook

oBehind giants RIM, Tim Horton’s, Budweiser and Telus)

• Launching a game oBuild your

own amusement park like Farmville

• Will be incorporating additional games similar to the games found at the park

Thank You

Jeff PontesDirector Digital Strategy

E-mail: [email protected]: @jeffpontesBlog: http://bit.ly/CMA_blogLinkedIn: www.linkedin.com/in/yourbrandvoice

James PowellDirector Insights and Strategy

E-mail: [email protected]: www.linkedin.com/in/yourbrandvoice

Back to School Trends and Observations 2011

Business