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Determine the 2D Barcodes information transmission true value in retail
Investing in new technologies can create new questions, we will offer you, through this study, a demonstration of the potential of 2D Codes as a communication medium applied to distribution.

*ROI = Return on Investment

Determine the 2D code's ROI

What is the true value of a 2D Code in distribution of data transmission ?

Technology evolves at the speed of light and this helps to create million times better communication and information fluxes. A new era of connected life appeared, bringing deep changes to our way of life, to the point we often hear the words : “I don’t know where I would be without my GPS.”

Imagine a life without internet! Mobile technology is bearer of a true revolution.

Communication tools have change the world and reduced distances in a considerable manner. The Frontier between the physical and virtual world is becoming thinner and thinner.

The 2D code being one of its crafters, this little device as recently found its place and way to the public by growing in marketing and communication businesses.

We find them, more and more, in billboards, window display, streets, magazines and on day to day product packaging easy recognizable checked pattern.


What does a public or business or larger point of view gives you ?

What is the profile of people who will use it and what are their motivations ?

What is the actual status on 2D Codes ?

Professionals are starting to understand the communication and marketing value of those small characteristic devices.

Mostly used since the 90’s by industry in logistic, 2D codes are fast becoming ideal and essential. They have since opened to more businesses like manufacturing, distribution, shops and day to day usage.

2D codes represent for some companies a true tool able to forecast future sales bringing precious collected data that is then analyzed.   

The businesses of communication and marketing have realized its promotional potential and use them regularly.

The 2D code is a medium able to redirect users to digital information whatever its form.

This same 2d code offers the opportunity of deeply modifying companies’ current strategies with data coming directly from users.

The creation of "need" made by companies today transforms the users in "buyers" in many ways: Food, education, business but also social and cultural events. When those factors are known, they bring segmentation and targeting of differentiated groups and visual marketing through the circuit of sales and promotion.

To answer to this demand, brands need to concentrate and invest in marketing strategies and in a way to distribute the final product to the consumers.

Marketing is the interaction between the suppliers and their consumers.

By that we mean that manufacturers offer products that answer to the consumer’s needs may they be physiological or social.

For example, Consumer to Business in push market model.

Moreover, it is possible to create needs by pushing products on the market.

At this point, the need is not yet a real demand by the consumers.

For example, Business to Consumer in pull market model.

It is possible to mix those 2 models to make them a real proactive tool of global communication.


Push Strategy

Manufacturer
Resellers (Wholesalers
and Retailers)
Consumer

Pull Strategy

Manufacturer
Resellers (Wholesalers
and Retailers)
Consumer
*Figure :  a Push versus a Pull strategy
Source: John F. Tanner Jr. and Mary Anne Raymond, 2012
As of today, the market offer a variety of products and a immense choice and the market as become very closer to its consumers.

People have the possibility to buy products while jogging or relaxing in their living room.

Market cannot only be black and white anymore; brands on a side, consumers on the other.

TV ads are not anymore just about the one product for a whole afternoon and shops don’t just sell one variety of milk.

The users today consume experiences that must offer these characteristics: Simplicity, rapidity and accessibility.

It is to the products to find the consumer and not the other way around as it used to be.

The consumer makes their choice and it’s to the brands to find the tools to interest them.

Only the brands representing values find interest in the eyes of the consumers.

On the other hand, distribution circuits play an essential role since they are the link to the consumers and their influence groups and values impact on those circuits.

For example : If an ecological product enters the market, it will be sold preferentially in shops bringing a more ecological atmosphere to spark interest in the consumers.

If a consumer wants to buy a local product, they will rather choose a short distribution circuit where communication will be close to the market and its distribution point.

The consumer doesn’t often realize the number of intermediaries and this can impact directly on the end price and the decision to buy a product.

Distribution circuits can be represented by a figure :

Producer
Producer
Producer
Producer
Producer
Agent/Broker
Wholesaler
Distributor
Wholesaler
or Distributor
Retailer
Retailer
Retailer
Retailer
Consumer
Consumer
Consumer
Consumer
Consumer
*Figure: Typical distribution circuits in Business-to-Consumer (B2C)
Source: John F. Tanner Jr. and Mary Anne Raymond, 2012

The principal means of communication for distribution circuit are :


• Radio

• Papers

• TV

• Billboards

• Flyers

• Magazines

• Internet

• Mobile Internet

The communication mediums used by companies are often diversified, because it's the balance between communication circuit used and the global promotion that make success of a good mix marketing.


The value of 2D Codes as media in itself :

As described before, the consumer has access to different circuits of communication. The open doors of marketing to social medias and the actual connected and mobile lifestyle are changing world in a more radical manner than ever.

2D codes appear very interesting in their characteristics as a media for the consumer as a way to reduce the distance to a manufacturer or a distributor.

2D codes bring a lot of interest as a marketing tool destined to mass market since the return of information and their availability is 24/7 dedicated business style of connected and mobile life.

Consumers are potentially connected to the brand and its distributors a can be put in relation or stay informed in a permanent manner from anywhere.

2D codes intrinsically, own a visual potential important enough to catch the eye of a consumer to an ad. Pushing this consumer to wonder about a brand and desire to know about the treasure behind the 2D code with as little information as possible to help him.




The golden rule of this exchange is that the experience must overthrow the effort given by the user to read the 2D Code.

Since 2D codes are a recent tool on the market, the user groups are limited to the spreading of mobile devices. On the other side, this represents a considerable advantage to those groups to feel privileged to access to unique experience or to something others can not have.

The most advanced societies in this branch are Japan, South Corea and now the USA.



Some advice :

If the 2D code only brings additional information without any value interesting and quantifiable enough by the consumer some interest he bears to the brand might vanish.

2D codes are an opportunity to offer discount coupons, collector items, additional information and cross selling advertisement.

The contextualization of 2D codes is very important as well as the positioning:

Avoid planes where phones cannot be used and on roads where time won’t be enough to actually flash.
The communication medium must be stable enough for the consumer to flash.

The 2D code must be big enough for the scan to succeed.

Neither too high nor too low. Neither too small nor too big.

Offer if available a mobile site to stay in harmony with the users mobile universe.

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