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TABLE OF CONTENTS

3

🔑 Research and Insights

​

🔑 Campaign Idea

🔑 Marketing Tactics

🔑 Conclusion

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RESEARCH

Section 1:

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Kwikset’s current marketing efforts for HALO smart locks are driven towards tech enthusiasts.

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🔑 Most interested in smart home technology

🔑 Most likely to try out new technology

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Themes of Kwikset’s “A Smarter

Kind of Simple” Marketing

Smart Homes

Technology

Functionality

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Kwikset’s Current Marketing Efforts:

🔑 Adam Savage in video ads

🔑 Marketing the “Kwikset home”

🔑 Focus on Kwikset as an innovative brand by highlighting trade show participation

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Kwikset’s Usage of “Smart”:

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Despite marketing to tech enthusiasts under “A Smarter Kind of Simple”, Kwikset is not perceived by consumers as leaders in smart lock technology.

That’s where we come in!

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Consumers actually tend to view the descriptor “smart” with a negative connotation.

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Smart is not

always simple.

Cultural Truth:

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Smart home product owners and Smart Home owners are not the same

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80%

40%

“I have Smart Home products”

“I have a Smart Home”

As of April 2021…

but only

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“Smart products are not actually smart”

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62%

47%

Do not consider their home to be smart

Consider their home to be smart

Change in perspective: Automated

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Change in Perspective:

Respondents who consider their home to be a smart home are 3x more likely to say their home is stylish and clean

A little less than are 2x are more likely to say their home is luxurious and sustainable

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“The word smart is so overused it has become meaningless”

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“When people ask me about smart home products, they don’t use the word smart, they want to know what is going to make their life simple and easy”

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Convenient, Useful, Helpful,

Simple, Easy

Convenient, Useful, Helpful,

Simple, Easy

FREEDOM

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Introducing A New Target Audience:

Millennial New Homeowners

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Why Millennial New Homeowners?

🔑 Comfortable with technology, likely own 1-2 smart products already

🔑 Need convenient solutions for their busy lives and Kwikset HALO smart locks can provide that

🔑 Frequently out of the home; remote access to locking their doors is appealing

🔑 Represent majority of current new homebuyers

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🔑 48% of millennials currently own a home

🔑 In 2021, 37% of first-time homebuyers were millennials

How Big is the Segment?

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For millennials, becoming a homeowner was a unique journey.

43% of millennial homeowners aged 34 and younger received financial help from family to purchase their home.

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🔑 28 years old

🔑 Works full-time as a nurse

🔑 Just bought a new home with her fiancé

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Behaviors

🔑 Has long work hours and inconsistent days

🔑 Wants to be able to have fun and reconnect with her friends

Thoughts

🔑 “I’m so exhausted. I miss having consistency in my routine.”

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🔑 Comfortable with technology; owns an Alexa

🔑 Need convenient solutions for her

busy life so she can have freedom again

🔑 Frequently out of the home; remote

access to locking her door is appealing

Why Nurse Naomi?

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🔑 34 years old

🔑 Ex-Navy Seal

🔑 Father of a young boy

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Behaviors

🔑 Keeps his house very orderly

🔑 Very occupied trying to take care of his son

Thoughts

🔑 “I want to be present for my son, but I feel like I have to choose between connection and control.”

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🔑 Likes feeling in control of home base

🔑 Wants everything to be in perfect

condition; seeks products with purpose

🔑 Has enough going on in his life with

his sons to keep him occupied

Why Dad Daniels?

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Consumers purchase smart products because they offer convenient solutions, not because they are smart.

Millennial Homeowner Truth:

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So how do we sell the word smart?

We don’t.

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CAMPAIGN

Section 2:

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School’s out, so it’s time for a different kind of smart. For many of us, summer means loss of routine, searching for child care options, and chaos added to our daily lives.

​

Whether smart is convenience, affordability, or even just being on time to pick up the kids - join us in celebrating different kinds of smart this summer.

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Business Objectives

A Different Kind of Smart

🔑 Establish positive brand perception

🔑 Generate conversions through digital channels

🔑 Increase smart lock market share

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By redefining smart, we can change perception of our products and overall brand.

Reason to Believe:

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SUMMERTIME

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Messaging:

🔑 “Summertime is when you’re in and out of your home more than ever. You need a different kind of smart. Kwikset gives you the freedom you need to go wherever your summer takes you”

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SCHOOL’S OUT

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RENOVATION

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HOME RENOVATION SEARCH TRENDS

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90%

of those who have plans to renovate parts of their home are smart home device owners

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NOSTALGIA

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BY REDEFINING SMART,

WE CAN TAKE YOUR SUMMER FROM…

SECURITY

CHANGE

RELIABILITY

LIMITATIONS

FREEDOM

CHAOS

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TACTICS

Section 3:

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IT’S TIME TO MAKE VOICES HEARD!

Authentic UGC will be shared through

Programmatic DOOH

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2.4x

Consumers are 2.4x more likely to say UGC is most authentic compared to branded content

79%

of people say UGC highly impacts their purchasing decisions

62%

of DOOH viewers engaged in actions such as visiting a website, using a hashtag, or making a purchase after interacting with the ad

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USE KEY VOICES TO MAKE AN IMPACT

Influencers are perceived as experts in their niches and consumers regard their recommendations highly

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72%

of users make purchase decisions based off on Instagram content

82%

of people trust opinions shared on social networks to guide purchasing decisions

49%

of consumers depend on influencer recommendations

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Current Smart Product Influencers:

🔑 Work in tech spaces (tech columnists, IoT experts)

🔑 Share knowledge about smart product innovation

🔑 Explain functional benefits that smart products bring to your home

... is this what new millennial homeowners are looking for?

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ENGAGE IN THE CONVERSATION AUTOMATICALLY

Conversational ads can be used to build a direct connection with consumers and guide them toward our products

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53%

of people are more likely to shop with businesses they can message directly

41%

of consumers use conversational marketing tools for purchases

67%

of global consumers had an interaction with a chatbot over the last 12 months

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CONNECT TO PEOPLE IN THEIR OWN HOME

Advertisements on connected TV platforms can be targeted toward specific consumer segments

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2.9

average viewers per Hulu account

168M

potential people to reach

58M

of accounts on Hulu have the ad-supported plan

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2x

more effective at creating top of mind awareness than traditional TV advertising

94%

of viewers watch pre-roll ads all the way through

86%

of millennials use CTV

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PROVIDE KWIK INFORMATION ON THE GO

People use podcasts to find out more about their interests, giving us the opportunity to step in and communicate key information

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48%

of Millennials are weekly podcast listeners

26%

of male podcast listeners could recall ads they had heard within podcasts from previous 7 days

76%

of listeners say they’ve taken action after hearing

a podcast ad

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KWIKSET IS FOR YOUR LIFE, NOT JUST YOUR LOCKS

Throughout the summer, we plan on updating the blog with relevant content for millennial homeowners

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55%

more website viewers than companies that do not blog

70%

of consumers would rather learn about a company through a blog than an advertisement

67%

more leads than companies that do not blog

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TARGET AUDIENCES WHERE THEY ALREADY ARE

Paid media is another opportunity for us to reach people in the places they frequent

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83%

of consumers claim that they use Instagram to discover new products or services

87%

of people follow a brand, visit the brand’s website, or make an online purchase once seeing an ad on Instagram

130M

users tap on sponsored posts to directly learn more about products each month

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4 out of 5

of millennial women are on Pinterest

2 out of 5

of millennial men are

on Pinterest

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90%

of users on Pinterest plan purchases and find inspiration for what fits in their homes and offices

3x

more likely to click through to learn about a product or service than other social media platforms

85%

of users have made a purchase based on seeing a branded pin

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Key Performance Indicators

A Different Kind of Smart

Social Media Engagement

Digital Sales

Market Share

🔑 Increases in post engagement, followers

🔑 Social media listening to analyze perception, awareness

🔑 Conversions from ads to online retailers

🔑 Measure over time and post-campaign

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CONCLUSION

Section 3:

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Conclusion

A Different Kind of Smart

🔑 Through changing consumers’ negative perception of smart, we will establish positive brand perception for Kwikset ✔️

🔑 Innovative tactics such as conversational display ads and digital out of home will assist in generating conversions ✔️

🔑 With a campaign that steers away from tech enthusiasts and talks about “smart” in a unique way, we can gain market share ✔️

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QUESTIONS?

Thank you for your time.

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APPENDIX

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KWIKSET’S MARKETING

Appendix

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Kwikset has lower brand perception compared to the competition when it comes to electronic consumers (i.e. tech enthusiasts).

Spectrum Brands’ Brand Equity Report (Nov. 2021)

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Kwikset’s usage of the word “smart”:

Kwikset’s Social Channels

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Kwikset’s usage of the word “smart”:

Kwikset’s Website

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MILLENNIAL HOMEOWNERS

Appendix

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Most new homeowners are millennials (37%).

National Association of Realtors’ Home Buyer and Seller Generational Trends (2021)

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The percentage of millennials that own homes is steadily increasing.

US Census Bureau: Current Population Surveys

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BACKING UP

OUR TACTICS

Appendix

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Digital OOH makes a direct impact on consumer awareness of advertised products. UGC will be utilized to push the message.

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Influencer recommendations have a major impact on consumer buying decisions.

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Blogs drastically increase consumers’ engagement with products.

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Consumers pay attention to connected TV spots and act upon the information presented in them.

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ScrapeHero Data

Place digital out of home in areas with strong Lowe’s and Home Depot presence.

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ScrapeHero Data

Place digital out of home in areas with strong Lowe’s and Home Depot presence.

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People took the following actions after seeing a product ad on Instagram.

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Over a fourth of men ages 18-44 recall a podcast ad from the past seven days, making it an extremely effective tactic.

Mintel - Smart Homes - US - May 2021

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SimpliSafe Case Study: SimpliSafe, a company in a similar industry as Kwikset, spends more money on true crime podcast ads alone than their competitors’ entire podcast ad spend.

Mintel - Smart Homes - US - May 2021

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Younger demographics are more likely to watch connected TV than cable.

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Millennials are the largest generational group to listen to podcasts.

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Millennials have at least one smart home product.

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Millennials are the largest generational group to listen to podcasts.

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Podcast marketing is an extremely effective way to target smart product consumers.

Nielsen - Podcasting Today - Feb 2021

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18-34 year olds listen to comedy, news, society & culture, and true crime podcasts the most.

Nielsen - Podcasting Today - Feb 2021

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Men prefer sports podcasts, and women prefer kids & family podcasts.

Nielsen - Podcasting Today - Feb 2021

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SURVEY

PRIMARY DATA

Appendix

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Association of varying words with the term “smart” as it pertains to smart technology (with “strongly agree” dropdown list):

Primary Research Conducted by Major Key Alert

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Association of varying words with the term “smart” as it pertains to smart technology (with “somewhat agree” dropdown list):

Primary Research Conducted by Major Key Alert

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Association of varying words with the term “smart” as it pertains to smart technology:

Primary Research Conducted by Major Key Alert

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The majority of our millennial survey respondents do not identify as tech enthusiasts.

Primary Research Conducted by Major Key Alert

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SUMMER TRENDS

Appendix

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People search for home improvement most in the spring and summer.

Google Trends

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Google Search Trends Related to Home Improvement.

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SMART HOME & SMART PRODUCTS

Appendix

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Smart home device ownership is increasing.

Mintel - Smart Homes - US - May 2021

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People own smart products, but not all of those people consider their home to be a “smart home”.

Mintel - Smart Homes - US - May 2021

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People that do NOT consider their home to be a smart home overwhelmingly perceive smart homes as automated.

Mintel - Smart Homes - US - May 2021

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Smart home consumers can be broken into smart home beginners, smart home power users, trusting users, and non-users.

Mintel - Smart Homes - US - May 2021

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Interested in owning based on smart home user type.

Mintel - Smart Homes - US - May 2021

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The vast majority of people who own smart home devices are planning to renovate part of their home soon.

Mintel - Smart Homes - US - May 2021

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“Smart Home Power Users” and “Trusting Users” are most likely to renovate their homes.

Mintel - Smart Homes - US - May 2021

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Why do people buy smart products?

MarketingCharts Survey

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Why do people buy smart products?

MarketingCharts Survey