Reaching & Understanding Consumers In A Digital World Francis Nicholas Group Digital Director, Nomad Foods Europe 7 th March 2017 1
#1 Frozen Food position in Europe #1 player In 9 markets 2
• Looking at the Omnichannel World • A focus on the eCommerce Channel • The Birds Eye Approach 3
Looking at the Omnichannel World 4
The World Is Changing 5
The World Is Changing 6
Device Proliferation Is Exploding, Allowing New Solutions To Emerge Source: Deloitte 7
Household Retail Spend by Sector Food and Grocery Non Food 8
9
Complex Non Food Last Mile Solutions Are Increasingly Transferring to Food & Drink 10
We See The Same Happening In Food & Grocery £1.00 + £0.39 = £1.39 11
We All See That New Sales Channels Are Emerging 12
We See This Very Clearly In Channel Trends Total UK Frozen + £1 Million Food Market + 0% - £33 Million Offline - 1% Online + £34 Million + 7% This Year Last Year Source: Kantar Worldpanel P52W to Jan 29 th 2017 13
With The Corresponding Challenges In Terms of Ways of Working Addressable Traditional and Digital Traditional Brand Marketing Consumer Marketing Marketing OmniShopper Marketing Multichannel Sales Channel Multichannel Sales Sales Execution Execution Execution ▪ Parallel Tracks for ▪ Haphazard ▪ Integrated Brand & Brand Plans and translation of Brand Customer Customer execution Plans into Customer execution execution Needs: Process/Toolkits, Structure & People 14
We Will See Much More Innovation 15
Looking at The eCommerce Channel 16
The Online World Is A Special Place For the Frozen Category 17
The Impact Of Online Shopping on Baby Consumables and Frozen Food Is Profound Offline: #5 Online: #2 18
Online vs Offline Behaviours Are Different When Are Frozen Products Added To The Basket? Start of Shop End of Shop Online Shop Offline Shop Instore shoppers visit the Frozen aisle last • Fear of breaking the ‘cold chain’ • The trolley is full, impulse purchasing elsewhere in store has filled it up • Spent the weekly budget 19
We Know That The Last Mile Becomes More Complex With New Ways To Delight The Shopper The profit that’s left afterwards Delivering Picking & Packing Cost of Goods, running the operation Physical Store Click & Collect/ Drive Van Delivery 20
We Know That The Last Mile Becomes More Complex With New Ways To Delight The Shopper 21
Some Offline Shopper Drivers Are More Pronounced Online Over three months Extremely important Extremely or very important 60% 1 Reliable delivery 92% 2 Quality 53% 89% 53% 3 Price 89% 4 Opening / delivery hours 50% 88% 46% 5 Ease of order 86% 6 Delivery charges 54% 85% 45% 7 Delivery times 83% 8 Availability 41% 82% 37% 9 Ease of finding products 80% 10 Good product substitutions 38% 76% 11 Range of fresh products 39% 74% 28 28 Source: IGD 22
Consumers Are Looking For Solutions To Problems 23
And They Are Prepared to Pay Too…. Saving time Social Health occasions 23% more 5% more 28% more Source: Kantar WorldPanel Usage: Average cost per meal occasion 52 w/e August 2016 24
Online Amplifies The Benefits of Frozen Easier access to information allows better meal planning Home Delivery allows an unbroken Frozen chain right to the kitchen Pick/ Pack/ Ship and Cube Fill Very Efficient - only The Frozen Category Director can fill the Frozen tote… 25
The Birds Eye Approach 26
We Have a Clear Strategy To Lever All Digital Touchpoints Catching High Provide most engaging Drive Trial & Bigger, More experience Profitable Baskets Quality Traffic Marketing TV/ Search/ Social/ Mobile/ Media Sales Hypermarket/ Convenience/ Discounter/ eCommerce 27
We Have a Clear Strategy To Lever All Digital Touchpoints Content SEO Websites Media Mix Sales Social Media 28
Playbooks and Scorecard Processes Help Us Work To Raise the Bar Everywhere Basic Product Content ‘Always On’ Brilliant Winning With Search Overall and Within Retailer Site Right taxonomy & layout Basics Assortment and promotions tailored to the channel Share of Feature Assessment ‘Always On’ merchandising (full value dual siting, cross & up sells) Creating Demand Rich product content (imagery/ endorsements/ on plate/ video/ Ratings & Reviews) Driving Trial Meal planning / recipe ideas – full value & promotions: Nomad & others Eventing, eg Back To School or Retailer Calendar Event Extended Assortment, eg large packs & extended skus 29
Brilliant Basics Is All About Good Shopkeeping 30
Demand Creation Allows Us To Provide Solutions To Problems Which Are Harder To Implement Instore 31
Thank you! 32
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