RT-Digital Signage..Cannes, 17 November 2004 – The everyday commodities and convenience chain 7-Eleven has taken a new direction with its 46 stores in Denmark. In each of these outlets, Sony Professional Solutions Europe has installed 42” plasma screens above the checkout showing adverts for the store's products as well as a Network Player that plays out the content on the screens.
“The screens are a new medium and fit perfectly with our store where, in collaboration with our suppliers, we are aiming to create a special experience for our customers” says managing director Christian Hoff, head of 7-Eleven in Denmark.
“The contrast in the store is important, because our customers want a pleasant atmosphere but they also want to “ be in with the times”. So the screens form part of our forward thinking profile,” he continues.
The use of in-store TV has shown some remarkable results. By advertising without promoting any special offers or stating prices, 7-Eleven has increased its coffee sales by 30%, whilst corresponding advertising for an energy drink increased sales by 32%; a new soft drink by 109% and packs of two Danish pastries by 59%. Top scorer were the sales of a new phone card, for which exposure on the screen increased sales by 319 %!
“We have a rule of thumb whereby advertising on the screens increases sales by at least 30%,” says Christian Hoff. He also believes in a return on investment in just a couple of years.
Major exposure With a prime position over the most important checkout in the store, 90% of customers see the adverts on the screens, which corresponds to a total of 55,000 people a day.
“This is a huge exposure to our target group, which is the 15 to 35 age group”, he continues.
He stresses that advertising in the store is important because surveys in the retail trade show that 80% of buying decisions are made while shopping. “And I believe that that figure is even higher in our type of store”.
7-Eleven is Denmark’s only convenience chain and one of the most innovative retail chains in Denmark with the ability to track all marketing and sales initiatives. “We have information on the status of every product hour by hour and as a result are able to customise the messages we show on the screens”.
7-Eleven does not spend a lot of money on advertising. “The most important advertising pillar is the store itself - and our “A" sign message board outside the store is the most important draw. We also use some outdoor and radio advertising," explains Christian Hoff, adding that 7-Eleven in any case has a 98% awareness rate, even though the chain does not consciously use the most popular advertising media. “Young people today spend 20 minutes less watching TV than they did 10 years ago. They also watch many more channels, so it’s difficult to reach young people by that route. They also spend a lot of time on the Internet. “
In Denmark, 7-Eleven stores are currently located in Copenhagen, Århus and Aalborg. In Scandinavia, the chain is owned by Norwegian franchise Reitangruppen AS, which is behind several major retail chains with a total of 1,800 sales outlets.
Flexible solutions Sony is specialised in developing and supplying AV and IT solutions to the retail trade in close collaboration with their customers across Europe. Their solutions can be customised to suit the needs of individual retailers from idea and content, through production to transmission via a plasma screen or other form of large screen.
“We have a productive collaboration with both 7-Eleven and the companies who produce and manage the content on the screens. Together, we have developed an extremely flexible solution for the 46 stores so far," says Benny Schwaner of Sony Professional Solutions Europe.
Sony supplied the hardware including a 42” plasma screen and a Network Player in every store, so that advertising messages could be customised to suit each one. The Network Player is connected between an advertising distributor and each store via ADSL, so that what is shown on the screens can be changed immediately and on an individual basis. In addition to this type of flexible infotainment solution for the retailer, Sony has also developed a variety of marketing tools that monitor customer behaviour and buying patterns.
The same adverts are currently shown on all screens in all 46 7-Eleven stores. However, it is also possible to create individual messages. Whilst 7-Eleven itself sells advertising space to its suppliers for periods of three weeks at a time, it has outsourced the production and management of the content. The same adverts are currently shown in all stores at the same time, but the plan is to customise an advertising package for each individual store according to location and the time of day so we can target specific customer groups. Experience shows that a spot must be no more than 5 to 10 seconds long, because the customer spends a very short period of time in the store. The message must therefore be brief and clear.
The entire concept is managed via a common platform and 7-Eleven also approves the final advert before it is shown on screens.
The screens can also be used to provide information to customers. The franchise chain only advertises goods available in the store, but is open to selling advertising space to others who are targeting 7-Eleven’s well-defined customer groups.
Best,
Savant |
