Emerging Technologies for Product and Brand

Managers:

Augmented Reality and

Amazon Flow Presented by: Lisa BarberRoberto Castillo Stacy Hirst

Varzan Patel Jamie PostChristina Vullo

What is Augmented Reality (AR)?

Basic idea: superimpose graphics, audio and other sensory enhancements over a real world environment in real time.

AR blurs the line between what is real and what is computer generated by enhancing what we see, hear, feel and smell.

Video games and cell phones are driving the development.

Technology TrendsAs technology trends emerge, Augmented Reality is primarily used on multiple platforms:

Computers/Tablets:Enhancing one's perception of items that have traditionally been two-dimensional

Example: Esquire Magazine http://www.youtube.com/watch?v=LGwHQwgBzSI

Mobile App Devices:Used to simulate an environment through virtual reality and digital manipulation

http://www.youtube.com/watch?feature=player_embedded&v=R6c1STmvNJc

Current Uses

Tissot: Using augmented reality to allow customers to try on items from their own homehttp://www.youtube.com/watch?v=m9oeAlOY4Vs&feature=endscreen

Lego:Allows children to view their possible new toy up close and in 3D

Current Uses

De Beers:Allows consumers to virtually try on jewelry that feature its Forevermark diamond brand.

IKEA:

In 2013, the Swedish retailer developed a free app called IKEA Now to feature 3D models of various furniture pieces.

Users can use the app to determine if the furniture’s dimensions, style and fit are suitable in real space with their smartphones.

Was the most downloaded branded app of 2012.

Psychological Benefits

•Create an emotional attachment with the product• Enrich customer shopping experience• Increase consumer satisfaction• Reduce search costs for "cognitive misers"

"AR makes it easier for retailers to be matched with relevant customers. By combining AR technology and local SEO, companies can reach consumers that were once beyond their grasp."

-The Retailigence Blog

What is Amazon Flow?

Flow is a new augmented reality app that makes it easy to explore and discover tens of millions of products in a real world setting

How it works...

1. Aim smartphone camera at product

2. App shows info for that product including customer reviews, multimedia content, sharing and purchasing options

3. Purchase item(s) direct through app with Amazon account

Marketing Process

• Market segmentation• In-store, online, hybrid

• Target Market• Smartphone & Amazon user

• Positioning• Gets users a better price• Impact of brand culture

Marketing Process Cont.

• Promise • Amazon's Reputation Value ->

Experiential Value• Product

• Demonstration• Place

• Mobile platforms• Promotion

• Leverage Amazon's existing web presence

• Popular Culture & Influencers (via Social Media)

• Price• Free

Marketing Recommendations• Purchasing Process

Comparison -> Purchase -> Service• Customer Base

Tech-Savvy -> Mass Market -> Verb Creation• Amazon Model

One-Time User -> Prime Subscription

2013 AR Expectations/Predictions

AR glasses are coming! -Vuzix introduced a monocular AR prototype for industrial use. -Innovega is seeking FDA approval for their AR contact lens prototype. -Google's project glass; AR glasses that can take pictures, give directions, check-in to locations and perform video chats

Expectations and Predictions● Smartphones will be AR-equipped

● GPS-based experiences incorporating data from on-board sensors like gyroscope and camera and other niche mobile technologies.

● Expect more AR apps

Benefits of AR Marketing1. Unique/Different

2. Personalization: concept of uploading your own media makes it relate specifically to the user. Users become more engaged.

3.Virality: Novelty factor and the personalization capability enhance user's desires to share with extended networks.

4.Content: apps allow less tech-savy users create quality content.

5. Interactivity maintains a viral loop

Referenceshttp://www.forbes.com/sites/anthonydemarco/2011/10/12/de-beers-turns-to-augmented-reality-to-market-its-branded-diamond/http://www.geek.com/articles/geek-cetera/lego-augmented-reality-kiosks-heading-to-shops-worldwide-20100419/ http://mashable.com/2012/07/19/ikea-augmented-reality-catalog/ http://www.presentation-pointers.com/showarticle/articleid/377/"Flow Powered by Amazon App, Now Available for the iPhone." Business WireNov 02 2011. ABI/INFORM Complete. Web. 5 Feb. 2013 .Amazon's Flow Augmented Reality App Comes to Android, Makes Shopping More Entertaining. Chatham, United States, Chatham: Newstex, 2012. ProQuest Research Library. Web. 5 Feb. 2013.http://venturebeat.com/2012/12/23/augmented-reality/http://www.businessinsider.com/augmented-reality-contact-lenses-2012-7http://socialmediatoday.com/alex-smith/242184/5-benefits-augmented-reality-marketing