STORES Magazine - June 2008 - (Page 47)

increased sales in the gaming area by 10 percent over the previous year. “We wanted to build excitement for our gaming arena by encouraging competition and making the tournament larger than life,” McLaughlin says. “Gamers are used to compelling visual displays, and the Epson digital projection technology enhanced the multimedia experience of both the contestants and the audience.” The most attractive aspect quicker turnaround,” Donham says. “We can do all content updates on all of our screens within 24 hours.” The technology gives Virgin the opportunity to capture the customers’ attention through curiosity about the medium and with the content being shown. It gives an existing product new life, revitalizes the brand and educates viewers about new products and their benefits. Streaming content also offers more flexibility in communicating an idea because the content itself can be more compelling than printed material. Shared content As advertising costs increase and more newspapers and television channels disperse once-wide audiences into niche markets, many vendors are starting to focus on in-store promotions. “Retailers aren’t going to have to spend big bucks themselves and I think we’re starting to see a lot of shared content flow within the stores,” Wise says. Other technologies include infrared cameras that can detect movement: When someone walks by, they can determine height, weight — even gender — to invoke content to appeal to a certain demographic. “You can measure that they actually walked into the store and if you actually made a sale,” Wise says. “You can really measure the effectiveness of your ads and content.” Virgin’s digital marketing efforts have had a direct effect on foot traffic and overall sales, Donham says. Virgin has seen strong increases over the past year in several product categories, including DVDs, video games and electronics. Another new digital advancement involves luminal painted mannequins, whereby customers can digitally change the outfits. “Retailers are not just seeing it as a neat technology but they are now able to measure and physically see their return on investment,” Wise says. Digital marketing “allows retailers to touch the customers and interact with them.” StORES Craig Guillot is a New Orleans-based writer and photographer. STORES / JUNE 2008 47 “Digital marketing has developed opportunities within our stores, creating new visibility options, which mainly increase customer foot traffic by keeping the Megastore environments exciting, modern and relevant.” — Ken Donham, Virgin Entertainment Group but also help move them around to various departments and levels. And in a store like Virgin (the Times Square location features 44,000 sq. ft. on three levels), moving customers about the premises is critical. Eye-catching displays are projected on screens, the latest television programs are broadcast on plasma TVs and audio commercials and advertisements ring through loudspeakers. Video game promotion Virgin Megastore caters to a wide audience, but in the digital age younger customers are expecting more digital marketing and interactive experiences. In March, Virgin used Epson’s digital marketing technology to produce the “I Love Rock Band” tournament, an engaging promotion for the popular video game, Rock Band. Contests were held at two Virgin locations: an image of each group of contestants was projected onto 9x12-ft. screens, along with a real-time tally of competing bands’ scores. Dee McLaughlin, vice president of marketing for Virgin Entertainment Group, says the promotion helped drive significant store traffic and ultimately WWW.STORES.ORG of digital marketing is its flexibility, says Barry Wise, a senior marketing consultant for Epson. Because digital marketing campaigns use projection monitors and plasma screens, the content can be changed at almost any time and constantly altered to keep up with new promotions. That flexibility allows retailers to perform marketing and merchandising within the stores themselves. “We are seeing more and more companies realize that the consumers are making their decisions when they get to the store,” he says. “You need to help them decide what to buy … through some incentive or creating a need or interest.” That flexibility also helped Virgin promote new products with the same signage. Once the original “Heroes” launch was complete, the same signage and applications were used to promote new DVDs, and Donham says it also allows Virgin to manage and update vendor content. Many of the latest digital installs are wireless, giving stores even greater flexibility. “One of the biggest advantages is that you no longer are producing hard banners and materials, which allows for http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - June 2008

STORES Magazine - June 2008 Contents Executive Editor's Page President's Page Tesco Tests Carbon Labels What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Boom - or Bust Green Retailing Concept2Watch Online Marketing Building Traffic Water Management Branding Digital Marketing Loyalty Programs Special Report: Taking on Teens Supply Chain - Robo Crop Human Resources Supply Chain - Directory Assistance Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - June 2008

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