rose price head of buying - the grocer conference · introduction to ocado founded in 2000 by three...
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![Page 1: Rose Price Head of Buying - The Grocer Conference · Introduction to Ocado Founded in 2000 by three entrepreneurs to revolutionise the way customers do their shopping Ocado is the](https://reader033.vdocuments.us/reader033/viewer/2022060307/5f09b4d17e708231d4282033/html5/thumbnails/1.jpg)
Ocado: driving growth for brandsRose Price Head of Buying
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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
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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
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Ocado has a unique model allowing us to take a range
larger than any other
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Our range competes with traditional supermarkets...
Big brands at competitive pricesStrong own-label range
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...but we want to be so much more
We love and grow distinct brands
CAGR 2018-23 2018 sales growth
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...but we want to be so much more
Ideal channel for global catalogueGreat test bed for NPD
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...but we want to be so much more
We bring the high street online
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Our growth drives growth for our suppliers
Online: the fastest growing channelOcado: 12% growth in 2018
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Growth driven by our continued investment in customer
proposition
Improved service from New CFCs
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We are investing in tools to help you outperform
Smarter algorithms driving
personalisation
Increasing effectiveness of
our media toolkit
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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
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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
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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?
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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
+
+
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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
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Thank you