How Can CPG Companies Become Digital Leaders?

Presented by Jeff Hunt, CEO, Snap36 February 18 2015

360° & 3D Product

Photography

An online marketing veteran, Jeff Hunt spent ten years at Adobe-Scene7 energizing his passion in rich media, merchandising and user experience. After opening Scene7 offices in Chicago, London, Paris and Hamburg, Jeff listened to his clients and recognized an unmet demand for spin photography. Inspired to offer a more visually interactive online experience, Jeff founded Snap36 to deliver turnkey photography services and provide the equipment, technology and expertise needed to implement 360° & 3D spin photography.

JEFF HUNT CEO & FOUNDER OF SNAP36

www.snap36.com

WHY THE MARKET WAS WRONG COMPLICATED AND COSTLY

Expensive High cost compared to traditional static photography

Technology Complicated, manual process Relied on Flash based solutions

High Barrier to Entry Market was dominated by a few companies

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WHY THE MARKET IS RIGHT NEW TECHNOLOGIES

ü Robotic Equipment ü Workflow Software

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New technologies allow for mass production of imagery

Software integrates with robotic equipment to automate image capturing and studio management

Industrial strength robotic equipment can be configured to shoot any product size  

CLICK TO VIEW VIDEO

WHY THE MARKET IS RIGHT BETTER IAMGES BETTER EXPERIENCE

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CONSISTENCY

MORE PRODUCTS IN LESS TIME

Laser system and intelligent equipment provides consistent product positioning and angle accuracy

Automated process allows you to shoot 24 product images in 90 seconds.

REDUCED RETURN RATE

Providing more visual information builds

purchase confidence and increases conversions

30% to 40%

Reduce return rates by 25% to 45% and call

center costs by up to 50%

INCREASE CONVERSION RATE

WHY THE MARKET IS RIGHT MATURING MEDIA AND FLEXIBLE DELIVERY OPTIONS

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ü 360° Product Photography The product rotates on a single row, while the camera takes pictures at specified degree intervals. Typical 360° photography is shot at every 15° resulting in 24 images.

ü 3D Product Photography The product is shot in 360° on multiple rows. Two row 3D photography results in 48 images. Three row 3D photography results in 72 images.

ü 3D Modeling/CGI Digital framework is created and graphic layers are applied or created to “build” a virtual object.

WHY THE MARKET IS RIGHT THE PROCESS

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Products received and

sorted  

Assembled by case, inner

pack, product Weights and

measures

Images captured

using robotic equipment

and software  

Images exported and

named in a viewer ready

format  

Images uploaded to

DAM  

CLICK TO VIEW PRODUCT SPIN EXAMPLES

PLANOGRAM IMAGES

3D IMAGES

360° IMAGES

MARKETING IMAGES

WHY THE MARKET IS RIGHT INDUSTRY MOMENTUM

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ü GTIN tracking enables better discovery and purchasing on the web

ü Commercial DAMS supporting GDSN

interface

WHY THE MARKET IS RIGHT THE FLEX SHOPPER

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Comprehensive Information Customer Experience

Technology Adoption

Shopping Convenience 55% of consumers prefer to

buy online

43% of mobile users don’t purchase because they can’t get a clear enough image

1/3 of consumers are not satisfied with the amount of product or

visual information

94% agree that B2B customer experiences should mirror at-home experiences

75%

27%

41%

51%

50%

96%

88%

55%

91%

67%

58%

20%

23%

23%

26%

23%

4%

9%

28%

8%

21%

28%

5%

50%

36%

23%

27%

3%

17%

12%

13%

Ability to customize an item (style, fabric, colors, monogramming)

Links to social sites to share items for feedback

Product videos contributed by other users/shoppers

Product images contributed by other users/shoppers

Live chat to talk with customer support about products

Images of all available colors and patterns of an item

Customer ratings, comments and reviews

Video demonstrating feature highlights with product experts

Ability to turn products around in a full 360-spin and zoom on any perspective

Download images in higher resolution

Predetermined zoom areas on images with overlaid information

Most Useful (4-5) Neutral (3) Least Useful (1-2)

*Adobe ‘What Shoppers Want’ Survey

DIGITALLY DRIVEN DEMAND CONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED

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What visual features will increase your likelihood to make a purchase on your mobile device?

*Adobe Mobile Consumer Survey

43% 42% 39%

33% 32%

0% 5%

10% 15%

20% 25% 30% 35% 40% 45% 50%

Product side-by-side comparisons

360° spin of a product

Interactive zoom or pan of a product

Video Multi-media

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DIGITALLY DRIVEN DEMAND CONSUMERS EXPECT TO BE CONNECTED, EMPOWERED, INFORMED

CASE STUDY

Major industrial supplier measured how enhanced content impacted sales

3.8% VIDEO

2.4% ALTERNATE PRODUCT VIEWS

1.7% TECHNICAL DOCUMENTS

4.2% ADDITIONAL PRODUCT COPY

6% 360° & 3D PRODUCT PHOTOGRAPHY

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CASE STUDY

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3X MORE SALES

“360° & 3D spins help us convert engaged customers by giving them a comprehensive visual understanding of the product. It helps them buy more confidently. Once customers are engaged in a spin image, they are 3x more likely to convert.”

Rob Cassidy President & COO, eBags  

www.snap36.com

INDUSTRY ADOPTION SHIFTS IN THE LANDSCAPE

GS1 IMAGE STANDARDS •  Mentioned under Interactive Digital Assets

AUTOCARE COMPLIANT •  Mentioned in PIES as receiving attention in the

marketplace •  Images can be transmitted to meet PIES

GOOGLE SHOPPING •  360° Product Images Account for manufacturers •  360° images displayed on Google Shopping and

Google Product Listing Ads

LOOKING AHEAD PROPOSED CHANGES TO NUTRITION FACTS LABEL

• Changes based on nutrition science • Updated serving size requirements and labeling for certain

packages • Refreshed design

Despite the cut-and-dried nature of the nutritional label changes—which, unlike front-of-label packaging, marketers have no control. These changes will affect food marketing, and companies need to consider how to respond.

NO ASPECT OF THE FOOD INDUSTRY WILL BE UNAFFECTED BY THESE CHANGES MARKETING IS NO EXPECTION

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The U.S. Food and Drug Administration announced that January 1, 2018 will be the uniform compliance date for food labeling regulations that are issued in calendar years 2015 and 2016.

LOOKING AHEAD 1-5-10 MARKET

1% 5% 10%

The CPG industry is approaching a tipping point; companies need to plan for a “1-5-10” market in the U.S. over the next five years. Digital’s current 1% penetration of the U.S. CPG market will likely expand to 5% by 2018 and could accelerate to as much as 10% soon thereafter. The experience of other sectors demonstrates that early movers often establish tough-to-trump positions and advantages. This is both a formidable challenge and an enormous opportunity for CPG manufacturers. Digital penetration of 5% represents nearly ½ of total CPG growth over the next 5 years, meaning that companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales.

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2015 2019

LOOKING AHEAD EVOLVING CUSTOMER JOURNEY

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Website Visit   Facebook Like Open Email Offer

Mobile Site Visit

Store Visit

Website Visit

Digital shopping has evolved very quickly into a highly complex ecosystem that has fundamentally reshaped—and continues to redefine—the way consumers engage with brands and purchase products. Online consumers are heavy users of supplier- and retailer-sponsored websites, and they increasingly expect manufacturers to have great content online. Digital content is especially apparent and critical in the search and discovery phase of the customer journey.

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THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT

Digital innovation has created entirely new patterns of expectation. Consumers, who are enjoying the convenience and value of digital services in other aspects of their lives, expect these benefits in grocery as well.

Retailers and suppliers are under acute pressure to adapt. CPG companies need to understand and shape the shifting retail landscape, because ultimately they will need to participate in new distribution models.

FROM NOW ON, TECHNOLOGY ENABLED INNOVATIONS WILL DRIVE MUCH OF THE GROWTH IN CPG

SNAP36 2140 W. FULTON ST. 630.920.1070 CHICAGO, IL 60612 WWW.SNAP36.COM

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