Creative Online

CREATIVE Interactive Merchandising

February/March 2001


DigKiosk Debuts

DigMedia, San Diego, CA, has unveiled DigKiosk, a free-standing interactive retail music gateway that allows consumers to sample promotional music, purchase music in MP3 and CD format, transfer MP3s to their portable MP3 players, access dLocker (a branded virtual storage by DigMedia) and forward songs to their friends.

“DigKiosk will offer retail consumers new methods for high-speed downloading of digital music,” said Pedro Vargas, Chairman of DigMedia. “The presence of these self-service kiosks in retail outlets and shopping malls will make them a universally popular platform, as well as an economic vehicle to increase traffic and revenues.”

To utilize DigKiosk, consumers employ a finger touch selection system that displays, samples and downloads a wide selection of Web-based music. A docking station offers high-speed transfer of music to a portable MP3 player.


Sephora Employs Kiosks To Interact With Customers

Sephora has rolled-out 100 consumer-activated kiosks, produced by Radiant Systems, Inc. Future plans call for the continued roll-out of the kiosks to more than 100 stores in the U.S. and Japan over the next two years.

Radiant’s kiosks help customers easily peruse over 1,600 items from Sephora’s collection of high-end cosmetic products. Once a product is suggested, Sephora customers are provided with a fact sheet they can print out.

“Radiant Systems’ kiosk solution extends our ability to interact with our customers in a non-threatening way,” said Sharon Zuckerman, Sephora’s Well Being Buyer. “When customers are looking for skin treatments or the latest product news, the consumer-activated kiosk is our technical tool of choice to provide a product solution that is right for them.” Zuckerman feels that Sephora is changing the landscape of retail cosmetics by taking products out of glass cases and situating them for easy access on shelves.


Simmons Features Beautyrest Interactive Demo Stand

Simmons Company needed an upscale contemporary demo stand with an interactive unit that would highlight product not the display. The display needed to hold various demo units, include a prerecorded message and show material samples.

ACS Marketing Inc., Milwaukee, WI, developed an eye-catching contemporary display containing a push-button activated voice chip module explaining the product’s benefits directly to the consumer. The sturdy unit is constructed of 2” bent tubing, metal and acrylic. Product literature is housed in slots above a graphic panel which explains more about the product line. The box spring and mattress demos sit on the clear shelves and appear to levitate in space, drawing the customer to the display. There are five compartments containing the actual materials used in the Beautyrest mattress with a transparent screened description panel. This contemporary unit met with immediate success.


Sprint Installs Bill Payment Kiosks

Sprint has awarded NCR Corp. a contract to install bill payment kiosks in Sprint PCS retail stores nationwide, making it easier for Sprint’s customers to pay in person.

“Providing a simple, self-service payment option in our retail stores enhances our ability to meet the needs of our existing customers,” said Ali Zanjani, Sprint PCS V.P., Retail. “The Automated Payment Center based on the NCR Web Kiosk enables us to increase our level of customer service quickly and easily, while focusing our resources on sales and new customer acquisition.”

The Automated Payment Center, includes the NCR Web Kiosk, integrated scanner and receipt printer, and accepts cash, check and credit cards for Sprint PCS customers’ airtime bill payments.


Starbucks & Microsoft To Provide In-Store Web Access

Starbucks and Microsoft have united to offer wireless access to the Internet from Starbucks coffeehouses to deliver an enhanced consumer experience for Starbucks’ customers.

“This ‘one of a kind’ national wireless broadband network gives Starbucks a unique position in the landscape of retailers,” said Howard Schultz, Chairman of Starbucks. “These new relationships will provide us a great opportunity to enhance our existing customers’ in-store experience as well as attract new customers to our retail locations.”

The in-store network complements a broader Starbucks effort to update store technology to streamline operations and communications. Ongoing infrastructure enhancements will provide a platform for initiatives such as the launch of a Starbucks customer card that will speed up in-store ordering and payment and the capability for customers to preorder drinks over their cellular phones.


Netplex Develops Web-based Sales Kiosk For Phillips-Van Heusen

The Netplex Group, Inc. has launched a sales kiosk for the Van Heusen Retail Division of Phillips-Van Heusen Corp. The kiosks interact with Phillips-Van Heusen’s existing e-commerce and back-end order processing systems via the Internet, and will test the viability of enabling customers to instantly order out-of-stock or special size items.

Netplex and PVH designed the in-store kiosks to enable the Van Heusen Retail division to maximize its sales potential by capturing sales transactions that are usually lost due to a lack of in-store product availability. Shoppers simply choose the appropriate items through the kiosk’s intuitive touch-screen interface, customize the selection’s size and color, and provide payment information. Phillips-Van Heusen processes the order and ships the merchandise to the purchaser’s address.

“The new kiosk sytem extends our stores’ inventory, which allows us to better serve our customers,” said Matt Skinner, Phillips-Van Heusen’s Group V.P. and Director of Corporation Applications. “Our Van Heusen Retail stores can now accommodate customers who once may have gone elsewhere because we did not have their selection on the shelf.”


McMagination Kiosks Are Launched

McDonald’s and Compaq Computer have collaborated on the McMagination Kiosk, an interactive kiosk for kids (ages 4-7) and tweenagers (ages 8-15). McMagination kiosks at McDonald’s restaurants allow customers to play the latest video games via an in-store computer system. McMagination runs on Compaq’s Deskpro computers in kiosks shaped as Ronald McDonald and Grimace. Kids will be able to play up to 12 different games based on titles developed by top software manufacturers.

Joe Jasper, McDonald’s owner/operator and co-creator of the McMagination concept, said, “McMagination is the next generation of kid fun at McDonald’s, and we are excited to give our customers yet another reason to visit our restaurants.”


Online Kiosks Rolled Out In Kmart

BlueLight.com and Kmart Corp. have announced the first-phase completion of the largest in-store Internet shopping kiosk network in the world. More than 3,500 BlueLight.com online shopping kiosks are now available for use in over 1,100 Kmart stores, with plans to rollout BlueLight.comkiosks in every Kmart store nationwide by 2002.

BlueLight.com self-serve kiosks connect directly to the BlueLight.com shopping site (www.bluelight.com), virtually expanding the inventory of the nation’s second-largest discount retailer.

BlueLight.com kiosks give the Kmart shopper full access to the BlueLight.com online shopping site and can currently be found in three locations at participating Kmart stores: Users can choose from BlueLight.com’s selection of more than 200,000 value-priced items.


Virtual Bank Opens Interactive Branch

directbanking.com, one of the country’s original Internet banking sites has opened its first interactive branch in Boston, MA. The new branch aims to improve upon banking technology and customer service by offering all the freedoms of online banking with personalized support via live video conference.

The new branch will feature six Video Banker Internet kiosks with video conferencing capabilities, a stock ticker, and on-site staff. Customers will soon be able to scan personal identification and open an account via video conference with a customer service representative.


Kiosks To Be Placed At Ford Dealers

Driveitaway.com, a Web site that focuses on dealer-to-consumer used car auctions, has announced an agreement to include dealerships operated by the Ford Dealer Development Group. Consumers can test-drive the cars they find on Driveitaway.com at these participating dealers and place bids from the showroom floor using special Internet kiosks.

Ford Dealer Development dealers will promote the agreement by featuring the Driveitaway.com kiosks in dealership newspaper ads, and will display point-of-sale marketing materials at each site.

“Driveitaway.com offers our dealers an innovative means of reaching the public while relieving inventory and creating new revenue,” said James Latimer, Region Dealer Development. “I am excited about the kiosks because dealers can get involved with very little outlay and the returns can be substantial.”


Rich’s Establishes Gen-Now.com To Drive Traffic To Teen Department

CIMStudio recently developed the Gen-Now.com Web site for Rich’s, a division of Federated Department Stores, to target the fashion conscious teen.

The graphics of the site were instrumental in developing the actual look of the department. The in-store models were built to replicate the Web site characters in techno-rich settings, so that teens experience the same hip entertainment while shopping as they do on the Web. The Rich’s Gen-Now teen department also has kiosks that access the Gen-Now.com Web site from the store, allowing teens to experience the online feel while standing in the ‘brick and mortar’ location.

CIMStudio achieved its goal of creating an Internet environment beyond cyberspace—merging retail with the Internet to create an integrated in-store experience.


Alloy & Sam Goody To Co-Market

Alloy Online, a convergence media company targeting Generation Y, and Musicland Stores’ Sam Goody, are joining forces to leverage their strengths with Generation Y shoppers. Alloy will provide Sam Goody with a powerful “virtual” link to the teen demographic while Sam Goody provides Alloy with access to the same demographic in a “real world” environment.

Samantha Skey, V.P., Sponsorships at Alloy, said, “This relationship will elevate Alloy’s brand awareness in the offline world. Securing in-store exposure extends our reach outside our current customer base..”

Alloy will reach Sam Goody’s teen shoppers through signage in all 650+ Sam Goody stores, and frequent rotation of Alloy television ads on Sam Goody’s in-store TV station.


Harbor Industries, has introduced the HarborInteractive AVM1, a high quality interactive unit at a competitive price. Harbor has teamed with VEM to produce the AVM1. For more information on the AVM1, contact Harbor Industries, Inc., South Industrial Park, Grand Haven, MI, 49417; (Tel) 616-842-5330, (Fax) 616-842-1385, (Web site) www.harbor-ind.com.


International Paper Co. has signed a licensing agreement with Power Paper Ltd. that will bring light, sound and other special effects to packages. The key is new ultra-thin flexible batteries that can be “printed” on packages like ink. “The No. 1 reason for using the batteries in packaging would be the marketing advantage that would allow you to reach consumers one more time with an advertising or marketing or promotional message,” said Jenny Boardman, an IP spokeswoman. The batteries might be potentially used in CD packages wired to play song samples when a customer picks them up, or to enliven game cards handed out at fast food restaurants. For more information, contact International Paper, (Tel) 914-397-1500; (Web) www.internationalpaper.com.


IBM has developed the NetVista Kiosk, a Web-enabled kiosk, which is “hardened” to withstand the demanding in-store environment. The IBM NetVista Kiosk will allow consumers to buy catalog merchandise or Web-only products. A wide range of peripherals, include kiosk printers, speakers, magnetic stripe readers, bar-code scanners, keyboards and an uninterruptible power supply. IBM offers kiosk management tools that deliver complete status and diagnostic visibility to every kiosk in the network, from anywhere in the world. For more information, contact IBM Retail Solutions at www.ibm.com/solutions/retail.


MTi offers a wide range of interactive display systems, including CD-ROM, DVD or PC-based solutions, which customers access by touch-pad or touch-screen. In addition to mobile electronics and home audio, MTi displays include audio samplers, CD listening stations and video kiosks. Displays are available in shelf- or wall-mountable configurations, or a custom enclosure can be designed. For more information, contact MTi, Inc., 1050 NW 229th, Hillsboro, OR 97124; (Tel) 503-648-6500, 800-426-6844, (Fax) 503-648-7500, (Web) www.mti-interactive.com.


Diazit Company, Inc. has added a new size to its line of backlit scrolling display signs; the Pro-Motion A3 scrolling backlit display. The new A3 (12” x 18”) model will display up to 25 different images printed on polyester backlit film at exposure times variable from 3 seconds to 240 minutes. For more information on the Pro-Motion A3 scrolling backlit display, contact Diazit Company P.O. Box 276, Youngsville, NC 27596; (Tel) 800-334-6641, (Fax) 919-556-3757, (Web site) www.diazit.com.


BigFatWow! & CyberXpo To Provide Mall Network

BigFatWow!, Inc., and CyberXpo, Inc., two companies that provide free high-speed Internet access and entertainment centers in regional shopping malls, have entered into an agreement in which CyberXpo will merge into BigFatWow! With 114 installed Internet centers nationwide, the combined company is one of the fastest growing new media advertising networks in the country. The company expects to exceed 300 installed Internet centers by the end of this year. The name of the combined company will remain BigFatWow!, Inc.

With a modular design, the centers are staffed with trained customer service personnel. The centers also accommodate product sampling and live entertainment events.


Xerox Announces Gyricon Launch

Xerox Corp. has launched Gyricon Media, an independent venture that will use the power of electronic reusable paper to provide networked, reusable retail signs that can be updated with the click of a mouse. The electronic signs can be used for in-store shelf displays, promotions and billboards.

“Electronic reusable paper is really the paper of the future,” said Bob Sprague, interim CEO of Gyricon Media. “It will revolutionize the way that stores communicate prices, promotions and other information.”


Traveling Mall Demo Created For Microsoft

Communicator\e, a digital marketing company based in Chicago, IL and GMR Marketing, an event marketing agency based in Milwaukee, WI, developed The Meet Me Tour, to bring Microsoft’s (Windows Me) directly to consumers across the country. The tour features three interactive 1,024-sq.-ft. traveling displays.

The Tour gives consumers the opportunity to test-drive the operating system as if it were in their homes.


Yahoo! And 7-Eleven Run Slurpee Campaign

Yahoo! Inc. and 7-Eleven have conducted a Slurpee campaign complete with a signature Yahoo! yellow and purple Slurpee cup, promoting Yahoo! Greetings.

As part of an integrated Yahoo! Fusion Marketing program, the relationship offered consumers a unique way to connect with someone special. Consumers could head to 7-Eleven stores and purchase their own Slurpee powered by Yahoo! The co-branded Slurpee cup highlighted Yahoo! Greetings, Yahoo!’s free online greeting card service. People could also head online to Yahoo’s Web site to send a “buy one, get one free” Slurpee drink coupon to a friend. Each online card included a 7-Eleven coupon with bar code that consumers could print from their desktop.


IEE, Van Nuys, CA, will be showing this self-serve consumer price checker with advertising capability. ScanVue® provides a 5.5 inch diagonal AMLCD and an Omnidirectional Call IIA Scanner. It allows the customer to check a bar code for a price plus shows advertising messages. It provides customer convenience, improves production of store personnel and enhances product data collection to learn more about ScanVue, contact Michael Englehart at POP Marketplace, Booth 8732; or call 818-787-0311.


Data Display Systems, Philadelphia, PA, will be showing Ask Video™, a compact Interactive display. A constantly running video calls attention to the personal-sized color LCD moniter. Customers are invited to interact with the display by selecting from a menu of choices or by pressing an icon to view a particular video. Ideal for advertisements and demonstrations, AskVideo can attach to a shelf, Kiosk, power-wing or stand along on a countertop. To learn more about this display, contact Bob Levitt at POP Marketplace, Booth 7363; or call 800-220-1270.


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