Archives for November 2010

QR Code Dave’s Bread at PCC Natural Markets Getting Killer Attention

The blue line represents feature phone penetration. The green line represents smartphone penetration. While feature phones currently eclipse smartphone sales, expect sales trends to shift in favor of smartphones.

Dave’s Killer Bread at PCC Natural Markets in Seattle has been participating in the Non-GMO Project to assure customers that the food they’re buying does not contain any genetically modified food.

While QR Code links customers with circular ads informing shoppers how to select the right melon, or a feature of the week, QR Code can also be used for redeeming coupons.

“We will be seeing a lot of QR Code in the future,” says Bill Smuts of Capstone Media.  “I suspect that grocery stores will be one of the prime users and we will see it in the aisle next to items on sale or being featured.”

With phones having free QR Code downloads, more codes will respond to projected growth in smartphones.

The Blackberry, Droid, and iPhone have dominated the mobile market, with smart phones holding 21 percent of American wireless subscribers as of Q4 of 2009.

In the Nielsen report the article distinguishing what it calls “feature phone” from “smartphone.”  Feature phones are “low end.”  They could not take a picture of a QR Code to link you to view Dave’s Killer Bread video on your phone or learn more about the products or receive sales deals.  Feature phones have less advanced API technology.  In 2009, 83 percent of all US mobile sales were feature phones, according to Marketing Charts.  But that number has been steadily dropping.

Still, because of the explosion in mobile apps network operators are taking steps to update feature phones capability, as they bring “smartphone” function to feature phones, too.

U.S. Smartphone Penetration & Projections, project that smartphones will surpass feature phone sales by the end of 2011.  Smartphones are attractive because they connect users to mobile Internet, share in social media, and opportunities to personalize their mobile devices.

The challenges facing feature phone upgrades include: improve built-in camera and video features, improve speaker quality, availability of screen real estate, and user friendliness – all features that smartphone users enjoy.  That enjoyment has increased camera and video use to 20 percent in both feature and smartphone subscribers.  And camera use also increases the chances of consumers taking pictures of QR Code with their phones.  Finally, the Nielsen report discovered that Wi-Fi increased from 5 percent to 50 percent for smartphone users.

Opportunity will continue to grow now and through next year for QR Code, as smartphone sales continue to grow and as feature phone upgrades are made.

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