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Home Care Digital Digital Iq Index Excerpt from the Digital Iq Index®: Home Care 2015 to Access the Full Report, Contact Membership@L2inc.Com v EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE March 18, 2015 EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE Watch the Video SHIFT HOUSE & HOME OTHER PET CARE Across Home Care, terrestrial retail accounts for 98 percent of sales.1 While innovation in product compaction (e.g., high-efficiency “pod” or “pac” formats) 6% 2% 2% helps remedy bulky detergent packaging formats, e-commerce remains a pimple 3% on the retail elephant. Despite the contrast in channel sales, digital investment ALCOHOL among CPG firms marches on, claiming 20 to 35 percent of marketing dollars 8% across the sector’s bell weathers (e.g., The Clorox Company and P&G).2 CPG CLEANING SUPPLIES brands are now the second-largest category in programmatic buying (via real-time bidding)3 and are second in digital video impressions.4 Starting to size their spend Programmatic Media: to influence, versus commerce. P&G states half of sales are influenced by digital 11% Share of CPG Spending 5 FOOD & DRINK (10x e-commerce sales). by Product Category 51% OTC PHARMA U.S., Q2-Q3 2014 1. “Industry Overview: Home Care in the U.S.,” Euromonitor International, June 4, 2014. 2. “Marketers Look to Digital As Cure-All,” Jack Neff and E.J. Schultz, AdAge, February 9, 2015. 3. “Index Quarterly Report, Q3 2014,” Index Exchange, December 18, 2014. 17% 4. “Q4 2014 Video Market At-a-Glance,” Videology, February 9, 2015. 5. “World’s Biggest Advertiser Shifts Focus to Sampling,” Jack Neff, AdAge, November 13, 2014. PERSONAL CARE & COSMETICS Source: Index Exchange, December 2014 Programmatic Media: Top Sectors in Real-Time Bidding by Overall Spend U.S., Q2-Q3 2014 ■ Quarterly Change in Spending ■ Index of Ad Spend Source: Index Exchange, December 2014 +23% 100 +14% +11% +9% +8% +8% 54 +2% 46 +5% +1% 40 38 34 +0% 8 16 15 14 RETAIL CPG FINANCIAL AUTO TELECOM TRAVEL ENTERTAINMENT BUSINESS MEDIA EDUCATION March 18, 2015 2 © L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws. EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE Take Two Where the Puck is Headed Home Care: Deviation from Average Brand In the U.S., online grocery sales have doubled By skating to where the puck is headed, Performance by Dimension since 2009 to $11 billion.6 After early stumbles enterprises including P&G are justifying digital Top Three Brand Portfolios (RIP Webvan), today’s marketplace is marked by investment.13,14 The variance in Digital IQ® March 2015 ■ P&G, n=13 ■ Kimberly-Clark, n=4 robust infrastructure, heightened competition, between Index leaders and peers is evident at ■ ■ and a larger addressable market (i.e., shoppers).7,8 the top (web advertising) and bottom (visibility on Georgia-Pacific, n=6 Index Average, n=69 Among the first product categories to benefit retailer.com’s) of the purchase funnel. from this disruption is Home Care, with Suppliers realize the importance of strong nonperishable items representing a third of relationships with 2.0 distribution. On Amazon, Mobile Site Mobile 9 Target Innovation online grocery sales. Kimberly-Clark and Georgia-Pacific narrowly +100% New channels hold promise, and the outperform deep-pocketed P&G, which leads by MO BI LE Walmart Mobile transition has shaken the industry. In late a wide margin on Walmart.com and Target.com +50% Search 2013, P&G established a partnership with (2014 controversy notwithstanding).15 In an Amazon (“Quantum Tunnel”) that let the industry where scale has been leveraged offline Seattle firm ship select products directly from to dominate in-store environments, independent, Amazon 0% Facebook P&G’s warehouses, reducing shipping costs eco-friendly brand Seventh Generation maintains 10 E T and delivery time. Target responded by relatively high visibility across e-tailers, and ranks I -50% S temporarily stripping some big P&G brands of among the top 10 brands in e-merchandising S YouTube Product O C I page A their “category captain” status—reducing brand efforts on Amazon. L 11 M visibility in sales circulars and aisle placement. E D I Undeterred, P&G continues to work with Digital IQ = Shareholder Value A Amazon to explore new shop-able ad formats.12 Site Twitter This study attempts to quantify the digital Navigation competence of 69 Home Care brands in the U.S. 6. “Online Grocery Sales in the U.S.,” IBIS World, December 2014. DIG market. Our aim is to provide a robust tool to ITAL MARKETING Category 7. “America’s Most Promising Company: Instacart, the $2 Billion Grocery Site Search Delivery App,” Forbes.com, January 21, 2015. diagnose digital strengths and weaknesses. Like Technology 8. “The Same-Day War: Amazon, Google And Walmart Race To Bring the medium we assess, our approach is dynamic. Advertising Brand Search Your Groceries,” Jeff Bercovici, Forbes.com, April 16, 2014. Source: L2, March 2014. 9. “The staggering challenges of the online grocery business,” Sarah Please reach out with comments that improve our Halzack, The Washington Post, January 20, 2015. methodology and findings. 13. “Marketers Look to Digital as Cure-All,” Jack Neff and E.J. Schultz, AdAge, 10. “Soap Opera: Amazon Moves In With P&G,” Serena Ng, The Wall February 9, 2015. Street Journal, October 14, 2014. 14. “World’s Biggest Advertiser P&G Shifts Focus to Sampling,” Jack Neff, AdAge, 11. “P&G’s Pact With Amazon Angers Target,” Serena Ng and Paul Ziobro, Regards, November 13, 2014. The Wall Street Journal, Februayr 25, 2014. L2 15. “P&G’s Pact with Amazon Angers Target,” Serena Ng and Paul Ziobro, The Wall Street 12. “Amazon: Shop while you’re in the toilet,” David Goldman, CNNMoney, Journal, February 25, 2014. December 3, 2014. March 18, 2015 3 © L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws. EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE Methodology SITE & E-COMMERCE DIGITAL MARKETING SOCIAL MEDIA MOBILE 35% 30% 15% 20% EFFECTIVENESS OF BRAND SITE SEARCH, DISPLAY, AND EMAIL BRAND PRESENCE, COMPATIBILITY, OPTIMIZATION, Technology MARKETING EFFORTS COMMUNITY SIZE, AND MARKETING ON CONTENT, AND SMARTPHONES Search, Navigation, and Customer Search: Service Traffic, Web Authority, SEO & ENGAGEMENT Mobile Site: SEM (Branded and Non-Branded) Load Time, Compatibility & Product Pages Facebook: Community Functionality, Store Locator & Advertising & Innovation: Size, Annual Growth, Geolocation On-Site E-Commerce & Coupons Display, Programmatic, Video Programming, Pre-Roll, and Other Brand Relative & Absolute Mobile Search: Campaigns Engagement SEO & SEM E-TAILER INVESTMENTS Email: Youtube: Mobile Innovation: Ease of Sign-Up, Frequency, Search Visibility, Tablet Experience, iOS & Amazon: Segmentation/Customization, Channel Experience, Android Apps, Mobile & Tablet Search Visibility, User Reviews, Content & Trigger Emails Video Views, Virality of Advertising, Mobile Couponing Content Efforts, Other Brand Initiatives Merchandising, Media Blogs & Walmart: User-Generated Content: Twitter: Search Visibility, User Reviews, Content & Mentions, Sentiment, and Brand Followers, Annual Merchandising, Media Activity on Industry-Specific Growth, Frequency, Outlets (Krazycouponlady, Relative & Absolute Other E-Tailers: Target, FreshDirect, Coupons.com, etc.) Engagement Safeway, Peapod Emerging Social Media: Instagram, Pinterest Classification GENIUS 140+ GIFTED 110–139 AVERAGE 90–109 CHALLENGED 70–89 FEEBLE <70 Digital competence is a point of Brands are experimenting and Digital presence is functional yet Limited or inconsistent adoption of Investment does not match opportunity. competitive differentiation. Brands are innovating across site, mobile, and predictable. Efforts are often siloed mobile and social media platforms. Digital properties are dated or innovating across dimensions and social platforms. Digital presence is across platforms or innovative only Sites lack inspiration and utility. Anemic nonexistent. developing strong relationships with consistent with brand image and larger within comfort zones. e-tailer investments. e-tailer partners. marketing efforts. March 18, 2015 4 © L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws. EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE GENIUS Clorox GIFTED GENIUS GIFTED Tide Swiffer Lysol Gain RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Charmin Downy Bounty Cottonelle Febreze Glad 1 141 2 138 8 123 Seventh Generation Kleenex Ziploc The Clorox Company Procter & Gamble Kimberly-Clark Quilted Northern Arm & Hammer Brawny Glade Puffs Purex 3 131 10 122 Mrs. Meyer’s Clean Day AVERAGE Scotch-Brite Procter & Gamble Procter & Gamble Angel Soft Method Cascade OxiClean Reynolds Air Wick 4 10 Scott 130 122 Dawn Finish Dreft Reckitt Benckiser Group The Clorox Company Mr. Clean Sparkle Bounce Green Works Scrubbing Bubbles Viva 5 128 12 116 Hefty Pine-Sol Dixie Procter & Gamble Seventh Generation Resolve CHALLENGED Windex Shout Liquid-Plumr All 6 127 13 115 Formula 409 Vanity Fair FEEBLE Procter & Gamble Kimberly-Clark Pledge Woolite Renuzit Scotchgard Snuggle Palmolive 7 124 13 115 Scotties Drano Soft Scrub Procter & Gamble S.C. Johnson & Son S.O.S. Tilex Kaboom Ajax Wisk Comet 8 123 15 114 Suavitel Saran Sun Procter & Gamble Georgia-Pacific Marcal Fabuloso Xtra March 18, 2015 5 © L2 Inc., 2015 Circulation of the report violates copyright, trademark and intellectual property laws. EXCERPT FROM THE DIGITAL IQ INDEX®: HOME CARE 2015 TO ACCESS THE FULL REPORT, CONTACT [email protected] DIGITAL IQ INDEX® HOME CARE GENIUS Clorox GIFTED GIFTED AVERAGE Tide Swiffer Lysol Gain RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Charmin Downy Bounty Cottonelle Febreze Glad 16 113 23 107 30 102 Seventh Generation Kleenex Ziploc Church & Dwight Co.
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