Rose Price Head of Buying - The Grocer Conference · Introduction to Ocado Founded in 2000 by three...
Transcript of Rose Price Head of Buying - The Grocer Conference · Introduction to Ocado Founded in 2000 by three...
Ocado: driving growth for brandsRose Price Head of Buying
Introduction to Ocado
▪ Founded in 2000 by three entrepreneurs
to revolutionise the way customers do
their shopping
▪ Ocado is the world’s largest dedicated
online grocery retailer
▪ Over 679,000 active shoppers in the UK
▪ Innovation is at the heart of our business
model
▪ In 2018 Ocado won Which Online
Supermarket of the Year, Grocer Gold
Online Supermarket of the Year and
joined the FTSE 100 and Ocado is now
covered by GSCOP
Evolution of Ocado▪ Founded by Tim
Steiner, Jason
Gissing and
Jonathan
Faiman
▪ Entered into
arrangement with
Waitrose
▪ Started delivery
to customers
▪ Opened 1st
customer
fulfilment centre
(CFC) in Hatfield
▪ Tesco Price
Match
introduced
▪ Introduced
Ocado Smart
Pass
▪ 'Ocado on
the Go'
smartphone
app
launched
▪ Listed on London
Stock Exchange
▪ Ocado ‘own-
label’ range
launched
▪ Signed commercial
agreement with
Morrisons
▪ 2nd CFC Dordon
opened
▪ First deliveries
for
morrisons.com
▪ Exceeded £1bn
in annual sales
2000 2002 2008 2009 2010 2013 2014 2015
▪ 3rd CFC Andover
opened
2016 2018
▪ 4th CFC Erith
opened
2017
▪ Launched
Ocado Skill with
Alexa
▪ Ocado Regulars
▪ Began pilot
deliveries
▪ Delivery area
increased to
cover 10mln
households
▪ Launched
low price
promise
▪ Reached 50k
skus
▪ Launched
Fabled
▪ Commercial
agreement
with Dobbies
Ocado has a unique model allowing us to take a range
larger than any other
Our range competes with traditional supermarkets...
Big brands at competitive pricesStrong own-label range
...but we want to be so much more
We love and grow distinct brands
CAGR 2018-23 2018 sales growth
...but we want to be so much more
Ideal channel for global catalogueGreat test bed for NPD
...but we want to be so much more
We bring the high street online
Our growth drives growth for our suppliers
Online: the fastest growing channelOcado: 12% growth in 2018
Growth driven by our continued investment in customer
proposition
Improved service from New CFCs
We are investing in tools to help you outperform
Smarter algorithms driving
personalisation
Increasing effectiveness of
our media toolkit
We are investing in tools to help you outperform
Data so you can optimise Recent actions taken by suppliers
Identified SKUs to include in Star
Review programme
£ Adjusted promotional calendar
Planned media based on high ranking
search terms
We are investing in tools to help you outperform
Smarter coupon capabilities
▪ Data Science
powered targeting
▪ Increased visibility
throughout the shop
▪ Redemption cap
available to increase
suitability for smaller
brands
>400% unit repeat
purchase rate
>800% unit repeat
purchase rate
>300% unit repeat
purchase rate
Targeted a
competitor brand
Targeted
customers after
delist earlier in the
year
Targeted customers
buying complimentary
products
Positive results tailored to campaign aims
A listing is just the start – you need a credible online
strategy
Are customers aware of your product?
Can they find your product?
We have 50k SKUs – how can you
make customers aware of your product
either on- or off-site? Visibility is key.
50% of adds are from search. Understanding
and optimising search is crucial.
70% of items added are favourites and products are
added in less than 1 minute. How can you make it easy
for them to choose your product?
Drive awareness and conversion:
Invest smarter
using data and
increase
effectiveness with
personalisation
and segmentation
Will they
buy it?
Bringing the best together from Sept 2020
▪ Ocado last week made an announcement
which outlines yet another transformational
deal for our business, combining
our ocado.com retail business with another
iconic and much-loved brand, M&S, enabling
us to jointly provide an unrivalled online
grocery offer.
▪ Waitrose continues to act as our sourcing
partner until September 2020
The service our customers know and love
M&S’s highly regarded own-label
Ocado’s love for brands
+
+
In summary:
▪ We’re different and our business model allows us to stock the widest range
▪ We want to offer a wonderful customer proposition including our own-label, big
brands, smaller brands, NPD and products from global catalogues
▪ Our growth provides growth for our suppliers and this will continue, driven by
new customer adoption of the channel
▪ We are investing in our proposition to grow ahead of the online market
▪ We build tools to help you outperform – make sure you use them and work with
us
▪ Our JV with M&S means we’ll be bringing together our strong customer service,
our great range of brands and M&S’s excellent own-label range
Thank you