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CONTENTS

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5 OVERVIEW

INTERACTIVE DIGITAL EXPERIENCE

7 DIGITAL DISPLAY CASE STUDY

PROPOSED SOLUTION VISUAL

13 DIGITAL MARKETING CAMPAIGN

CASE STUDY PROPOSED SOLUTION VISUAL

19 FINANCIALS 21 PLANS FOR THE FUTURE

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INTERACTIVE DIGITAL EXPERIENCE

WHATEVER THE CHOSEN FORM OF MEDIA &

CONTENT, MILLENNIAL PREFERENCE IS THAT

IT BE TECHNOLOGY-DRIVEN. -PRICE WATERHOUSE COOPER


OVERVIEW

INTERACTIVE DIGITAL EXPERIENCE In the midst of its turnaround, PacSun has had

By further improving upon digital marketing

ongoing efforts to discover innovative ways

tools PacSun already employs, we can drive

to bring new customers into the store and

more traffic to the stores and attract a broader

retain their business. Once in the store,

range of customers. We recommend that

associates utilize our unique atmosphere and

PacSun enhance customer involvement by

strive to provide a positive experience that

creating an interactive digital experience

creates a lasting relationship.

that will be appealing to millenials.

With digital marketing advancements in today’s world, PacSun has the opportunity to present a strong digital presence to increase brand awareness from its target demographic.

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CASE STUDY

SELFRIDGES & CO.

Hardware

This denim store located in London used

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Samsung vertical monitors

Digital Displays in the 4 windows of their

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BrightSign players, BrightAuthor, and

store. On the displays, they played video

BrightSign Network were used to author,

of models wearing their product.

integrate, and manage content.

Reached Goal “Digital signage in four windows of the London store helped increase foot traffic and customer awareness.�

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INTERACTIVE DIGITAL EXPERIENCE

NOMI TECHNOLOGY “As the world moved to the web, and

e-commerce emerged as an important way to shop, web analytics became crucial

to a retailer’s strategy so that they could deliver the best shopping experience

possible. Now, as the mobile revolution

gains traction, Nomi is delivering the next generation of analytics so that retailers can measure customer behavior in their stores just like they can online.”

-Nomi | In-Store Optimization Software


PROPOSED SOLUTION

DIGITAL DISPLAYS A driving force within the interactive

The installation plan includes piloting the

experience is the installation of flat screen

initiative in stores that are currently testing

TV’s. The flat screens will display PacSun

Nomi technology. Nomi sensors can track

Golden State of Mind lifestyle videos, to

phone Mac Addresses, enabling us to

help better promote the PacSun brand.

analyze trends in traffic inside and outside

Research suggests that millenials are more

stores. By partnering with Nomi, PacSun will be

drawn to video, as opposed to static images.

able to measure the level of success. If this

By adding a digital element to the store

plan is effective, future steps would include

windows, PacSun will grab the attention of its

the expansion of the entire Interactive

target demographic. The flat screens will

Digital Experience to qualifying stores.

also display store content, such as PacSun promotions, product information and daily sales. During the digital marketing campaign, the flat screens will serve as an important promotional platform for the in-store experience.

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CASE STUDY

SRCH by Starbucks produced a social scavenger hunt allowing players the opportunity to win great prizes. THE RESULTS: OVER 75% OF PLAYERS WERE BETWEEN THE AGES 18-35 (THE TARGETED DEMOGRAPHIC FOR THIS CAMPAIGN) OVER 300K VISITS (DURING A 3 WEEK PERIOD) 23K GAME REGISTRATIONS (97% PLAYED AT LEAST ONE CLUE) AVERAGE TIME FOR 1ST PERSON TO SOLVE A CLUE ROUND WAS 21 MINUTES (INDICATING EXTREMELY HIGH ENGAGEMENT WITH THE BRAND) OVER 20K POSTS FROM SOCIAL CHANNELS REGARDING SRCH

ALL ACHIEVED WITH ZERO PAID MEIDA SUPPORT

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INTERACTIVE DIGITAL EXPERIENCE

QR TECHNOLOGY Quck Response Codes are apart of a twodimensional barcode system. QR codes on can hold 100 times more data than

1D barcodes—they can also be digitally

scanned. They’re used today in everything from inventory tracking, to shipping and

logistics, to online ticketing (Fandango is a

big fan). Bands put them on fliers to link to their videos on YouTube or set reminders for upcoming shows. Businesses use it to

put Google Maps directions on a business card, automatically load a web page, or

send a text/email to the company helpline. One enterprising wildlife refuge in

Sanibel, Florida has installed the codes on

signs along hiking trails and programmed them with information about the local

fauna. When implemented with the proper

incentives, QR codes have the potentional to offer a business an elevated digital platform with endless commerce opportunities.


PROPOSED SOLUTION

DIGITAL MARKETING CAMPAIGN The PacSun demographic (millennials), are fast

promotions to be redeemed in-store. This will

paced and technology-driven. To reach this

help raise awareness of the digital marketing

generation, a large part of the campaign will

campaign, introduce the QR technology, and

utilize QR code technology to create customer

prepare customers for the in-store experience.

involvement. QR technology is appealing to our target demographic because it creates a direct relationship between digital media and the consumer through the use of their smart phones.

During the initial two weeks, PacSun will also send out street team coupons, bag stuffers, look books, and social media blasts further explaining the upcoming in-store experience.

To introduce the digital experience, PacSun

Instagram will continue to promote the in-store

will use Instagram as its main marketing tool.

experience. It is now up to the customer to

Two weeks prior to the in-store experience,

come to the store, where they can search and

QR codes will be placed near local PacSun

scan strategically placed QR codes offering

retailers. Instagram posts with pictures hinting

tiered promotions leading to the grand prize, a

to the location will encourage followers to find

trip to the Soho Pop-Up store for a shopping

these codes, which have corresponding

spree with a friend.

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DIGITAL DISPLAYS ITEM

UNIT

10 STORE PILOT

40” LED

$550

$11,000

USB Drive

$20

$400

TV Installation

$100

$2,000

Stand

$500

$10,000

Electricity

$50

$1,000

Electricity Installation

$1,500

$15,000

Total

$2,720

$39,400

* Assuming cost of maintenance is immaterial * Assuming cost of videos is immaterial

PAYBACK PERIOD SALES

1 YEAR

2 YEARS

Sales Per Year (Per Store) $15,700

$7,850

Sales Per Year (Pilot)

$78,500

$157,000

* ASSUMING A GROSS MARGIN OF 25.1% BASED ON Q1 OF 2013. * ASSUMING NO MATERIAL INCREASE IN SGA DUE TO THE STORE IMPROVEMENT. * UNDISCOUNTED


Since the QR codes will be displayed

FINANCIALS

over a 2 month period during a nonpeak season, we should see a long tail of interactivity as people continue DIGITAL MARKETING CAMPAIGN

to engage with the codes. To achieve

The main advantages of the QR

this we will provide fresh content and.

codes are cost, simplicity and ease

Unlike other marketing vehicles that

of implementation. They provide no

typically only generate one big spike in

incremental cost to an agency already

impressions, QR codes offer businesses

printing or selling ads.

a consistent promotional tier.

DIGITAL MARKETING CAMPAIGN Paperlinks (QR Vendor) $99.95/month

Full Analytics

Contest

$4,500

Flight, Hotel, Per Diem + Shopping Spree

Promoted Social Media

$5,000 each

Facebook + Twitter

Register/Bonding

$1,000

x

Street Team Coupons

$25,000/10 stores

QT: 1,000

Bag Stuffers

$7,500 /10 stores

QT: 5,000

Look Book Ad-Ons

$10,000/10 stores

QT: 1,000

Total

$58,200

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GREAT PLATFORMS BEAT GREAT PRODUCTS. -MIT CENTER FOR DIGITAL BUSINESS


FUTURE

DiGITAL MARKETING CAMPAIGN

DIGITAL DISPLAYS

QR codes deliver greater customer engagement

Looking forward, the next step could include

and potential mobile commerce opportunities.

moving the digital displays in-store with

Unlike other marketing vehicles that only generate

interactive touch screens Implementing

one big spike in impressions, QR codes offer

and utilizing these two proposed pieces

any business a consistent promotional tier. The

will help establish a strong digital platform

QR codes will provide a long tail of interactivity

for PacSun, successfully increasing brand

as people continue to engage with them.

awareness within our target demographic.

Establishing a strong digital platform for PacSun will reassure its customer that it is cutting-edge, relevant, and it will demand their attention.

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PACIFIC SUNWEAR OF CALIFORNIA

2013

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PacSun 2013 | Interactive Digital Experience