Marketing Project v0 FOR A COMPANY PUMA PDF

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PUMA COMPANY COMPLETE MARKETING STRATEGY WITH ANALYSIS OF ALL THE DIFFERENT CRITERIA...

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Marketing Management- II PGEXP 2020-22 Term II Submitted by Group 2: 

Amit Mishra (X011-03)

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Kirti Prasad (X011-20)

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Nikhil Hansda (X012-20)

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Nillip Malik (X013-20)

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Vinit Parashar (X014-20)



Prateek Khanna (X015-20

Table of Contents Extended reality marketing (Augmented Reality + Virtual Reality).............2 The India Story....................................................................................................................6 Extended Reality Marketing in the post Covid-19 world....................................7 Analysis of Marketing Innovations made possible by XR.................................7 Role of Extended Reality in Experiential Marketing...........................................9 Summary................................................................................................................................9

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Extended reality marketing (Augmented Reality + Virtual Reality) Historical Evolution of Marketing with Technology: Time

Technology Change

Impact on Marketing

1440

Printing Press

Printed literature

1690

Newspaper

Newspaper ads

1731

Magazine

Promotion in magazine

1839

Billboards

Outbound marketing

1922

Radio

Radio advertising

1941

Television

TV advertising

1970

Telephones

Telemarketing

1994

Internet

Display advertising

2001

Mobile

SMS marketing

2008

Social Media

Social Media Marketing

2020

Extended Reality

Extended Reality Marketing

Product Marketing involves 4 Ps:  Product  Place  

Price Promotion

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Promotion pertains to communicating the product characteristics to potential consumers to generate and enhance demand. Over the last century, major mechanisms of promotion included word of mouth, expert recommendation, distribution of pamphlets, newspaper advertisement, radio advertising, television ad campaigns, and related media. Promotion mechanisms have undergone a sea change since the advent of the internet. Digital advertising occupies a primary space in current product marketing strategy. This involves reaching out to customers digitally and sharing with them product details relevant to their needs. Digital Marketing can take up many different forms:   

Content Marketing Search Engine Optimization Social Media Marketing

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Email Marketing Mobile Marketing Affiliate Marketing Viral Marketing

Digital medium makes available an enormous scope to utilize contemporary technology to reach out to the target audience. With the advancement of technology, Page 3 of 10

mixed reality marketing is increasingly becoming a practical reality. This provides a means of bridging the distance between the physical and digital world. Consumers can now explore all aspects of product form, shape and features using these technologies without even getting close to the product itself. The technologies used for this purpose fall under the following categories: 

Virtual Reality: This provides a fully artificial environment which supports full immersion in the virtual environment.

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Augmented Reality: This involves the real-world environment augmented with virtual digital objects.

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Mixed Reality: represents a hybrid of physical and virtual reality.

Potential: Large number of solutions are being developed in this regard which are being increasingly adopted by leading players. According to a Nielsen global survey conducted in 2019, consumers listed Augmented and Virtual Reality as the top technologies they believe will assist them in their daily lives. 51% of the consumers responded that they were willing to use this technology to assess products. As per Goldman Sach’s estimate, the global market for Extended Reality (XR) is estimated to reach USD 185 billion by 2025. Extended Reality is a promising prospect to strengthen brand value by means of realistic and immersive storytelling The field is coming of age rapidly, as can be seen from the latest developments. Applications: 

In November, Walmart Labs announced that an augmented reality (AR) scanner had been integrated into the retailer’s iOS app to help in-store shoppers make product comparisons. Walmart’s AR scanner feature allows users to pan their smartphones across shelves and retrieve pricing and customer rating details on multiple products.

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IKEA created a high-definition, interactive showroom that uses the immersive power of virtual reality to offer an innovative 3D product experience. This opens novel mechanisms for exploration and visualization. Inside IKEA's virtual showroom, visitors will be able to explore and configure Page 4 of 10

furniture items and their environmental context in real-time. They can try different textures, change the colour of the wall, and even change the time of day to see their combinations in different ambient light characteristics. Customers can visualize their own space and come up with their specific customizations.

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Amazon has incorporated the ‘AR View’ feature in its mobile app to facilitate informed decision-making during purchase of furniture products such as chairs, sofa, table etc.

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As per Statista, AR/VR application download is predicted to be over 5.5 billion by 2022.

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Virtual Product Demonstration empowers the Sales/Marketing team to present product features effectively to prospects.

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Shopify has found that interactions with products having Augmented Reality visualization feature showed a 94% higher conversion rate than products without AR.

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Kohl’s and Snapchat have co-created Kohl’s AR Virtual Closet. Using a Snapchat app, consumers can step inside an AR dressing room, mix, and match items, and can purchase items from within the app.\

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Gucci added an augmented reality (AR) feature to its iOS app that lets shoppers virtually try its Ace sneakers virtually. On pointing the smartphone downward and choosing a shoe style, customers can view a digital image of the sneakers overlaid on their feet.

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L’Oréal acquired ModiFace in 2018, the international leader in AR and AI for the beauty industry. It facilitates virtual try-on for L’Óreal cosmetics.

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Sephora’s Virtual Artist lets consumers see the impact of applying specific lipstick or eyeshadow on their face. It uses Modiface technology to scan lips and eyes, before overlaying the selected shades of beauty products.

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ZARA used Augment reality by showcasing its new collection on a live runway.

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ASOS has launched a virtual catwalk featuring 100 ASOS design products.

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Puma’s flagship store in New York Fifth Avenue has created an immersive skill cube where the visitor can have a virtual training experience with greats of the game of their interest such as Lewis Hamilton, Romelu and Antoine. The objective is to move beyond just selling product, to provide something which is both compelling and immersive. The virtual experience helps communicate the real benefits of Puma products very strongly. Puma has plans to replicate this setup to other stores and regions.

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Visitors to Natuzzi’s Tottenham Court Road Store, London can use Microsoft’s HoloLens headset to visualize a how to place a chair or sofa in the hologram replica of a room in their house. The colour, material and finish of the furniture can be changed. Provisioning of walking around it, rotating it and moving it to a different area in the virtual room is also done.

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Dulux Visualiser uses Augmented Reality to see how the walls of a house will look like after being painted with a different colour.

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New York Times uses Google’s VR platform to create special VR content for their subscribers. Such videos provide a more interactive experience to their audience.

The India Story 

Reliance has developed a mixed reality wearable glass called JioGlass which has applications in the retail domain, among others.

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Flipkart has acquired Scapic, an Augmented Reality company, to enhance its e-commerce shopping experience capabilities. It is a cloud-based platform enabling the creation and publication of Augmented Reality and 3D content for the offered products.

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StyleDotMe has developed a platform called MirrAR which allows shoppers to virtually try on jewellery products and get fashion advise. It has been used Page 6 of 10

by leading vendors such as Tanishq, Amrapali, PC Jewellers, and Kalyan Jewellers. 

Prakash is a visual marketing solutions provider which has developed a mixed reality platform for creating powerful virtual interactive tours of stores, retail outlets and facilities. It facilitates businesses in building a compelling brand narrative.

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Tesseract is a hardware company which has created a 360 degree virtual reality camera.

Extended Reality Marketing in the post Covid-19 world Covid has changed the market realities worldwide. Digital interaction has gained primacy over in-store purchase experience. This change in consumer buying pattern is not expected to reverse soon. In this context extended reality marketing opens an important avenue to reach out to buyers more effectively, thereby trying to imprint salient product characteristics on the mind of the consumer. A pertinent example is Home Depot. Home Depot introduced augmented reality features to its mobile app/ web before the pandemic. The feature is available on the product detail page where consumers can tap “See it in your home with 3D Augmented Reality” to bring up the Augmented Reality viewer. Augmented reality consumers visualize products in their local setting in a few easy steps: 1. Item Selection on the app 2. Scan the area with the phone and picking a spot for placement of the item. 3. Evaluate how the product will look, feel, and fit. The enhancement helped increase sales as a significant chunk of the shopping was being performed digitally. An analysis showed that consumers who use Home Depot’s augmented reality feature typically convert two- to three-times higher than those who do not use it. 

Kendra Scott’s jewellery stores were closed for extended periods during Covid. To mitigate the impact, the store introduced an AR tool which provided facility of virtually trying-on varied earring styles from their homes. Using a web browser on iPhone, customers could analyse the impact of the earrings on their ears and decide accordingly.

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Ulta has created a virtual beauty tool called GLAMlab. This has seen a surge in popularity during the post Covid period. Its usage has increased seven

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times. Since the advent of Covid, more than 50,000,000 shades of foundation have been applied digitally using GLAMLab. 

Levi’s has launched Squad in April 2020, which is an online social video app where friends can shop for product together. The app recreates in the virtual world some of the social buying experiences that people were deprived of since the onset of the pandemic.

Analysis of Marketing Innovations made possible by XR 

Product Features: Consumers can visualize all aspects of the products in 3 dimensions before making the actual purchase.

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Remote Interaction: Consumers need not visit physical stores for getting a feel of the products. They can now do so from the comfort of their homes.

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Virtual Experience: A virtual shopping experience can be provided to the customer. For example, consumer can navigate through a virtual store layout, analyse the products on offer in various categories, compare the features and make the final purchase.

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Attention Capture: Next Generation interactive promotional material to capture consumer’s attention– e.g, Augmented Reality enabled product catalogs. Capturing customer’s mind-space is a significant component of competitive marketing.

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Brand Strengthening: Innovative application of XR in the marketing mix helps brands strengthen their positioning and recall value via creative application of technology.

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Impactful Sales Presentations: Salespersons can pitch their products to customers in minutest of details without having to carry the actual product with them. This is particularly useful for bulky industrial products.

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Supplements Integrated Marketing Communication: Virtual interaction with the product helps supplement the marketer’s message regarding the product being disseminated via other mechanisms such as advertising, events and promotional campaigns.

Advantages for consumers:   

Low cost High interactivity Informed decision-making Page 8 of 10

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Low cognitive load

Advantages for marketers:         

Increased Sales opportunities New market segments (remote) Reduction in number of physical stores needed to reach out to customers Low marketing costs Reduced time for decision making by customers Experiential insights Consumer review for product improvement Reduction in marketing/training costs Operating Cost reduction resulting in price competitiveness.

Role of Extended Reality in Experiential Marketing  Experiential marketing refers to messaging you can not only see, but touch, hear, and feel in a physical space. It involves creative interaction with the consumer, which is memorable for them. When compared to traditional advertising, experiential marketing is more successful in strengthening the bond between the brand and the consumer.  Experiential Marketing made use of live events, promotional campaigns, samples, and freebies to reach out to the customers. However, In the digital domain, extended reality provides the perfect mechanism for engagement marketing.  Compared to the traditional marketing channels, experiential marketing offers significant payoffs. Extended Reality enables the customers to interact with the product and explore its features in a very cost-effective and convenient manner.  Many of these experiences are available from the comfort of their home, using mobile apps or web browser. The experience appeals to all senses and leaves an imprint on the audience. It makes it more convenient for the person to arrive at the final purchase decision for the product after evaluation of pros and cons.

Summary  The objective of marketing activities is to position the firm’s product in the mind of the consumer. Page 9 of 10

 Technology has always been used as an enabler in this endeavour.

 Digital technologies have helped marketers reach out to users at a scale larger than ever before.  Extended reality technologies help bridge the gap between the physical and digital world.  Consumers are able to experience the product remotely without actually having the visit the outlet.

 This is especially relevant during the Covid era where social distancing is the norm.  Experiential marketing techniques based on extended reality are helping

marketers explore new avenues and overcoming the challenges which have manifested themselves during the current time.

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