How to succeed in the world's second largest online grocery market-Complete Analysis of UK online Grocery Market, and Online Retailers' ...

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How to succeed in the
world’s second largest
online grocery market —
Complete Analysis of UK
online Grocery Market,
and Online Retailers’
Features and Functionality
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                2
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Introduction
         The growth of the digital channel means that
         success for fast moving consumer goods (FMCG)
         manufacturers is more and more dependent on
         how their products are represented in the online
         channel. Hence knowing how these retailers
         operate online, and what functionality they
         offer is key when it comes to empowering brands
         to optimise their products’ representation to
         drive sales and protect brand equity in the
         digital channel.

         In this analysis Clavis Insight looks at the major
         online grocery retailers in the market, comparing
         sales, range and online store functionality for
         the six biggest established players, plus recently
         launched AmazonFresh. Go to the Appendix for
         a full table showing the functional capabilities
         of each, including size of portfolio, membership,
         delivery and navigation options, as well as
         content, consumer engagement and mobile
         app capabilities.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                 3
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Size of the Prize:
         What is the opportunity for brands?
         The UK grocery market, worth £175 billion in 2015, is      Despite the obvious growth some brands still question
         under pressure. Traditional UK grocery retailers are       why they should commit dedicated resources and
         seeing sales shrink – overall sales value fell by 1% in    effort to serve the eCommerce channel. But sales value
         2015 compared with 2014 – due in no small part to the      is only the tip of the iceberg when it comes to summing
         rise and rise of the German discounters.                   up the importance of online channel presence and
                                                                    performance. The digital channel is also an increasingly
         However, amongst the doom and gloom in recent years significant influencer on in store purchases – up to
         the Digital Channel has provided a few rays of hope        35% of in-store UK food and beverage purchases are
         for traditional retailers and national brands, as online   digitally influenced (Deloitte), with shoppers using the
         grocery sales continue to provide double digit growth. online channel for tasks such as product research, price
                                                                    comparison and consumer review analysis.
         The UK is a booming online grocery market, second in
         size only to China. Online retailers continue to win an    Sales Versus Eyeballs
         increasing share of UK shoppers’ baskets – IGD pegged
         the 2015 value share at 4.4% of total UK grocery spend Given the influence of the digital channel on off line
         (or £7.7 billion) and predicts this will grow to almost 9% sales it is worth taking note of the relatively high
         by 2020.                                                   monthly visitor numbers of major retailers (Table 1).
                                                                    At 41 and 22 million each Tesco and Asda are clearly
                                                                    being used by a lot of shoppers to carry out product
                                                                    research for buying elsewhere (most likely in-store),
                                                                    while Ocado is remarkably efficient at converting online
                                                                    browsers in online buyers generating almost £1bn in
                                                                    sales from just 3.5 million monthly visitors.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                            4
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         The Major Players

         Regardless of the growing influence of internet pure               Tesco leads in terms of online sales with 37.7% market
         plays, traditional retailers such as Tesco, Asda and               share (see Table 1 below), with Sainsbury’s and Asda
         Sainsbury’s still dominate the online channel aided by             at 15%. Ocado comes in fourth with 11.8% and both
         their national footprint and sheer size. Together, these           Waitrose and Morissons have much smaller shares
         three own over two-thirds of the online grocery market.            at 3.4% and 2.6% respectively. The impact from
                                                                            AmazonFresh’s recent UK launch is yet to show in the
                                                                            market share numbers, but we can expect to see its
                                                                            sales rise steadily in the coming years as it rolls out its
                                                                            services to more cities.

                                                                                                                *Table 1: UK Online
                                               UK Online Grocery Market
                                                                                                                Grocery Market Share:
                            Tesco      Asda        Sainsburys   Ocado     AmazonFresh   Waitrose   Morrisons    (multiple sources)

         Grocery Share      37.7%       15%           15%       11.8%         —          3.4%        2.6%

         Revenue 2015       £2.9bn    £1.2bn         £1.2bn     £0.9bn        —         £0.26bn     £0.2bn

         Monthly Visitors    41M       22M            10M        3.5M         —          3.8M        3.5M

         Launch Year        2000       2000          1995       2002         2016        2000        2013
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                 5
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         eCommerce Pure Plays

         To date, Ocado has been the clear pure-play leader        The pure play nature of Ocado means it is ideally
         in UK online grocery. The retailer is continuously        set up for NPD. With no physical store legacy to take
         innovating, and developing alternative revenue streams.   into account there is no need to consider online/offline
         It has for example integrated its service with the        SKU alignment, which frees it up to host a diverse
         Apple Watch to allow users to shop from that device       range of products.
         using voice recognition, while at the same time it has
         developed the Ocado ‘Smart Platform’, which offers        Amazon, with its AmazonFresh offering, is aggressively
         infrastructure and operating capabilities to retailers    moving into the lucrative UK market, and is likely to
         such as Morrisons. The e-grocer offers some 43,000        provide significant disruption. It may have started with
         SKUs (Stock Keeping Units) in its range and boasts a      a small geographic foot print - 69 postcodes across
         consumer base of 453,000 active users delivering some     central and East London – but it trumps all its rivals in
         183,000 weekly orders.                                    terms of range, claiming to offer up to 130,000 fresh
                                                                   and frozen grocery products.

                                                                   “Amazon, with its
                                                                     AmazonFresh offering, is
                                                                     aggressively moving into
                                                                     the lucrative UK market.”
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                              6
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         AmazonFresh is competitive in terms of price, but it is   Share of Shelf and Size of Portfolio
         not cheap to avail of the service as its only available
         to customers who buy a Prime membership at £79           Each retailer offers a wide range of grocery related
         per annum and then pay an additional £6.99 monthly       products including food and beverages, pet care
         fee for Fresh. However, its entry into the market is     products and health and beauty. After AmazonFresh,
         likely to shake up grocery shopping as a whole by        Tesco.com offers the largest online portfolio (and
         accommodating more frequent, top up shopper              the widest national coverage). It publically claims
         missions, and picking off the highest spending grocery   to have around 70,000 products on its site, but Clavis
         shoppers in key markets.                                 Insight analysis actually found close to 85,000 SKUs
                                                                  on Tesco.com. By comparison Morrisons, Ocado,
         As Amazon and Ocado intensify their competitive          Sainsbury’s and Asda host smaller (but still extensive)
         threat the ‘Big 3’ are becoming aware that they need a ranges at approximately 54,000, 49,000, 45,000
         strong focus on better technology and new innovations and 35,000 respectively.
         such as Sainsbury’s recent piloting of one-hour delivery
         times via its Chop Chop App in London.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                                  7
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Private Label

         With the prevalence of own-label in the UK grocery                      Nineteen own-label items were returned in the first
         market a significant proportion of the range of each                    20 Search Results on Tesco.com, effectively blocking
         of these online retailers is taken up by store brands.                  other brands out of the all-important first results page.
         To illustrate this point Clavis Insight searched for                    Asda and Sainsbury’s also strategically place their own
         ‘frozen foods’ on each of the stores to identify which                  products in the Top 20, or first page of results, whether by
         products returned in the first 20 Search Results                        searching or navigating through the menu. Ocado delivered
         (see Table 2 below).                                                    a more diverse range of products in the top 20 search
                                                                                 results, with 12 spots going to national brands.
                                                                                                                        Table 2: UK Grocery
                             UK Grocery Own Label Dominance on Search *Frozen Food Top 20
                                                                                                                        Own Label Dominance
                      Asda                        Ocado                 Sainsburys                    Tesco             on Search Frozen
                             Product                      Product                  Product                    Product
                                                                                                                        Food Top20
             Brands                      Brands                      Brands                    Brands
                              Count                        Count                    Count                      Count
           Own Label           18      Own Label            8       Own Label        11       Own Label         19

           Richmond            2       Frank Dale           4       Bird’s Eye       5        Bird’s Eye         1

                                        Dohertys             1       Valley          2

                                       Bannisters           3        Smooze          2
                                         Linda
                                                             1
                                       McCartney’s
                                          Frys               1

                                         Vbites              1
                                         Cross &
                                                             1
                                        Blackwell
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                  8
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Online Store Functionality                                 Membership and Delivery options

         In our analysis of online store functionality, we looked   Other than AmazonFresh and Ocado there is little to
         at differences between the retailers’ membership and       distinguish the main online retailers from each other
         delivery options, and mobile capabilities, as well as      in terms of delivery options, cost of delivery and
         how products are represented in the online stores.         membership/subscription. All offer both home delivery
         Monitoring how they perform against these elements         and Click and Collect (or buy online pickup in store
         of representation, such as landing page content,           (BPOIS)) options. Delivery is generally next day, with
         availability, ratings and reviews and placement (search    charges ranging from £1 to £7, and free delivery cut-
         and category menu) and ultimately optimizing their         off at £40 for subscribers to Delivery Subscription
         performance for each, offers brands a framework for        packages. Tesco.com offer a ‘Delivery Saver’
         improving their eCommerce channel business and             subscription package, which only requires customers
         working more closely with online retailers.                to spend £10 to qualify for free shipping. Many retailers
                                                                    also have a £25 minimum order.

       “Other than AmazonFresh and
         Ocado there is little to distinguish
         the main online retailers from each
         other in terms of delivery options,
         cost of delivery and membership/
         subscription.”
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                  9
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         The AmazonFresh model is different with an annual         The products that appear on the first page of results
         Prime membership of £79 plus a monthly subscription       for category key word Searches, or on the first page
         charge of £6.99 for same day delivery. Ocado also         of the category menu, are more likely to be added to a
         offers a subscription model in lieu of delivery charges   shopper’s basket. Therefore, it’s important for brands
         and has a ‘same day’ service in limited locations. In     to know what their target is in terms of getting on the
         recent months Tesco and Asda have been trialling a        first page. The fact is menu category and Search results
         same-day service for “click and collect” orders, while    pages vary by store (see Appendix - Navigation and
         Sainsbury’s is also piloting same day delivery, in        Online Shelf Placement), and ultimately the higher up
         direct competition with AmazonFresh, out of its new       the page your products are the more likely they are to
         Bromley-by-Bow-based dark store.                          be added to basket.

         Navigation and Online Shelf Placement                     Availability

         In the physical world brands aim to get their products    eCommerce product availability may well be the
         onto the top shelf, or in the bull’s eye depending on     most important metric that brands track in both the
         brand strategy. Online however as we know there is        online and offline channel. The UK market, options of
         no shelf, so “placement” is determined by how well        Availability are limited to products being “In Stock” or
         products rank for keywords on search results pages,       “Out of Stock”. Currently there is very little support for
         or where they are located in the category navigation      low stock information on the sites themselves, with the
         menu structure.                                           exception of Amazon which publishes availability level
                                                                   if stock is low. Tesco and Ocado also enable consumers
                                                                   to sign up for stock level notification emails.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                           10
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Consumer Engagement – Ratings and Reviews

         Reviews and Ratings are a significant lever in the online     While most of the retailers analysed here (other than
         channel, as they serve to interrupt a shopper trip much       Tesco) carry consumer reviews for grocery products,
         like an in-store display or a shelf tag might. This is        the concept is still in its infancy in the UK, compared
         particularly true when consumers are looking for new          with the US and China at least. In UK online stores
         products or brands. A brand a shopper doesn’t usually         many products have no reviews and only Amazon
         buy with five Stars may suddenly be of interest               appears to be committed to opening up a dialog
         when they realize their usually preferred brand               between consumers and suppliers by enabling
         only has 3.5 stars.                                           manufactures to respond to reviews on its site.

                                                                                                         Table 3: Number
                                  Top 5 Most Postiviely Rated Laundry Brands
                                                                                                         of Reviews and
         100%                                                                                            Percentage of Positive
                                                                                                         Reviews Laundry.
         100%                     61%              55%         65%             39%            47%
         100%
                                                                                                             — Number of reviews
         99%                                                                                                   per Brand

         99%                                                                                                 — % of postive reviews
                                                                                                               per Brand
         99%                       93               85          74              71             70
         99%

         99%

                                  Lenor            Fabreze     Ariel           Persil        Comfort
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                  11
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Clavis Insight analysed Reviews and Ratings for the       Lenor and Ariel also perform quite well in terms of
         Laundry Category, focusing on the five brands with        coverage, with 73% of their products Reviewed in
         the largest number of consumer comments (see Table        online stores. But there is still an opportunity for these
         3, page 10). Lenor performs well in terms of consumer     and rival brands to increase the level of consumer
         engagement with 93 reviews across the sores analysed,     engagement in UK online stores (see Table 4 below).
         however Ariel does even better as it has a higher
         percentage of positive reviews (four stars or better),
         65% versus Lenor’s 61%.

                                                                                                      Table 4, Percentage of
               Percentage of Products Reviewed for Top Reviewed Brands in Laundry Category
                                                                                                      Products Reviewed for
                               Brands                              % Products Reviewed                Top Reviewed Brands in
                                                                                                      Laundry Category.
                                Ariel                                     73%

                                Lenor                                     73%

                               Febreeze                                   61%

                               Comfort                                    58%

                                Persil                                    46%
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                 12
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Content and Product Pages                                 Mobile Apps

         Landing page content in online stores is the means        In terms of eCommerce and online content in particular
         for brands to educate, inform and convert consumers,      more and more industry watchers are talking about
         in the absence of having a physical product to touch      the importance of Mobile. Speaking at the Clavis
         and feel. In this sense, the internet has democratized    Insight eCommerce Summit in 2015 Ocado’s Head of
         the brand battle. It is essential for brands to take      Product and Merchandising, Hannah Gibson, stressed
         full advantage of what each store offers in terms of      the importance of content, adding that brands and
         content, images and page layout in order to present       retailers needed to think mobile first when it comes to
         their products in the best possible light to consumers.   creating their online store content. “At Ocado, 50% of
                                                                   orders are now touched by mobile and this isn’t the
         With any shopper, clarity and speed are paramount. To     peak. Pinterest says that about 70% of their usage is on
         win over shoppers, brands should make their product       mobile. I don’t suspect it will be too long before we are
         pages clear and concise. That means descriptive           at a similar level,” she said.
         product titles and succinct features and benefits bullet
         points. In addition, optimizing product images will help “It’s really difficult to create content that works well
         shoppers accelerate their decision-making.               to engage the shopper on mobile, with small screens,
                                                                  minuscule images and short bursts of text,” Gibson
         But not all brands are taking advantage of the           explained. “But if you can get your content to work on
         functionality available to them on the online stores     small formats then it will work for desktop web pages
         – for example half of the stores we looked at allow      as well.”
         brands to publish more than one image on the product
         page, but this is not universally applied.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                  13
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         What do brands need to do                                  Build a Solid the Business Case
         to win in this environment?                                Despite eCommerce being the primary driver of growth
                                                                    in many consumer goods categories it is not always
         Market analysis and common sense tells us that             easy to immediately prove a return on investment-
         eCommerce is growing rapidly in importance, but it’s       based business case for the level of effort and
         still essential for the eCommerce team to get some         investment required to succeed in the channel. In the
         quick wins on-board early and create a long term           early stages at least, it is unlikely that online channel
         plan if the channel is to deliver success. The steps to    revenue alone will be significant enough to add up-
         consider in order to win online are:                       to-much in terms of direct ROI. In any case it may not
                                                                    even be possible to get reliable online sales figures. In
         Build a Solid the Business Case
                                                                    the absence of reliable or convincing eCommerce point
         Create a Relevant and Realistic eCommerce Strategy         of sales data, the argument for investment focuses
         Develop new Capabilities                                   three key areas: Protecting valuable brand equity, the
                                                                    Impact of online on other channels and future proofing
         Setup for Success with the Right KPIs                      the organization.
         Score Some Quick Wins

                                                                   “It’s still essential for the
                                                                     eCommerce team to get
                                                                     some quick wins on-board
                                                                     early and create a long
                                                                     term plan for success”
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                  14
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Create a Relevant and Realistic eCommerce Strategy         Develop new Capabilities
         The eCommerce strategy a brand adopts will depend          All too often in FMCG manufacturers, one person is
         heavily on where the organization and categories           handed the eCommerce brief and told to figure it out.
         are, in terms of eCommerce maturity. For some              But if the organization is to succeed in the channel, and
         organisations the eCommerce strategy might focus on        ultimately succeed in the market, there needs to be
         protecting brand equity, building brand presence and       wider involvement from company leadership down,
         educating the consumer. For others the strategy could      as well as the addition of new skills and capabilities.
         be more about impacting omni-channel and offline           The capabilities you have today, supporting your
         sales, brick-and-mortar shoppers, and brick-and-mortar     brick-and-mortar or traditional retail channel, will
         retailers that have an online presence. A third approach   not be effective in achieving eCommerce growth and
         would concentrate more on the actual eCommerce             beating emerging online competitors. You and your
         revenue via pure plays and online retailers.               organization are going to have learn to do things
                                                                    differently and adapt traditional category
                                                                    management tactics for the new channel.
COMPLETE ANALYSIS OF UK ONLINE GROCERY MARKET,                                                                                    15
AND ONLINE RETAILERS’ FEATURES AND FUNCTIONALITY

         Setup for Success with the Right KPIs                      Score Some Quick Wins
         The key foundation of capabilities and resources           In order to secure more resources and grow internal
         needed to succeed in the online channel will include       support for eCommerce in general it is handy to be
         measurement and analytics. The metrics and KPIs you        able to quickly prove your ability to impact the channel.
         choose to follow will depend largely on the level of       Luckily there are usually plenty of examples where you
         eCommerce in your key categories, but again in the         can demonstrate impact. It might be about optimising
         virtual world they are likely to be a bit different than   product titles for better search performance or quickly
         they might be for your traditional channels. Online        identifying distribution gaps in certain online retailers.
         the brand has to ensure its products are in-stock in       Another problem that is easily solved, once it’s spotted,
         the online store, consumers can easily find them           is where your product can be twisted with that
         and when they do are persuaded to buy in sufficient        provided by a third-party seller in Amazon to deliver
         numbers to create demand from the retailer.                incremental sales for your brand. This is something
         See page 16 for example metrics.                           that you can quickly identify if you are tracking your
                                                                    share of search and search rank, and make a change in
                                                                    Amazon to demonstrate immediate.
                                                                    The eCommerce channel isn’t going to go away; in
                                                                    fact, it is continuing to grow its share of overall retail.
                                                                    Brands need to understand the new landscape they
                                                                    are playing in terms of retailers and the functionality
                                                                    of their online stores to be better armed in order to
                                                                    win in the coming years.
16

Online Key Metrics
         Availability Track your portfolio’s state of     Ratings and Reviews Set targets for
         availability by retailer, category, brand, and   total number of product reviews and
         manufacturer to optimise your range, maxi-       average rating score to help drive
         mise distribution, and improve sell-through.     omnichannel sales.

         Search Rank Understand where your                Media Tracking Monitor online
         products rank in search results for specific     media placements for compliance
         search terms to ensure your products are         and effectiveness; track category
         discoverable.                                    competitors.

         Content Integrity Monitor compliance             Price and Promotions Tracking
         of product content for individual SKUs           Monitor pricing and promotions for
         by category and online retailer so that you      your products and your competitors’
         can make sure your products are optimised        products to make sure your products
         to win the digital shelf.                        are optimised to win the digital shelf.

         Category Placement Understand where
         your products rank on the online store
         category menu structure. Target categories
         to ensure specific product sets are
         easily discoverable.
APPENDIX                                                                                                                                                                                                                                                                                                                17

                                                UK Online Grocery Market — Size, Operations and Offering                                                                                                            UK Online Grocery Market — Consumer Engagement
     Functions               Tesco              ASDA                 Sainsbury's           Ocado             AmazonFresh           Waitrose            Morrisons          Functions            Tesco           ASDA               Sainsbury's          Ocado           AmazonFresh         Waitrose         Morrisons

Online Grocery
                     37.7%              15%                   15.0%                11.8%                ?                  3.4%                2.6%                Ratings and Reviews N                Y                     Y                 Y                Y                   Y                Y
Share

Online Retail                                                                                                                                                      Enable Manufacturer
                     £2,902,900,000     £1,155,000,000        £1,155,000,000       £908,600,000         ?                  £261,800,000         £200,200,000                           N                N                     N                 N                Y                   N                N
Revenue (2015)                                                                                                                                                     Responses

Average Monthly
                     41M                22M                   10M                  3.5M                 ?                  3.8M                 3.5M               Review Syndication   N               Y                     Y                 Y                Y                   Y                Y
Visitors

Online Launch
                     2000               2000                  1995                 2000                 2016               2000                2013                Q&A                  Y               Y                     Y                 Y                Y                   Y                Y
Year (UK)
                     Wales, Scotland,   Wales, Scotland,      Wales, Scotland,                                                                                                                                          UK Online Grocery Market — Pricing and Delivery
Regions                                                                            Wales, Scotland, and London: 69         Wales, Scotland and Wales, Scotland
                     England and        England and           England and
Served                                                                             England              postcodes          England             and England
                     Northern Ireland   Northern Ireland      Northern Ireland                                                                                            Functions            Tesco           ASDA               Sainsbury's          Ocado           AmazonFresh         Waitrose         Morrisons
Product
                     84775              35389                 45463                48838                100000+            19678               53577               # secondary images
Count                                                                                                                                                                                 Y                 N                     N                 Y                Y                   N                Y
                                                                                                                                                                   (up to 5)

Own Label            Y                  Y                     Y                    Y (Waitrose)         Y (Morrisons)      Y                   Y
                                                                                                                                                                   Video                N               N                     N                 N                Y                   N                N

Marketplace
                     N                  N                     N                    N                    Y                  N                   N
Capabilities                                                                                                                                                       Detailed Description Y               Y                     Y                 Y                Y                   Y                Y

                                                        UK Online Grocery Market — Pricing and Delivery                                                            Images/Graphics in
                                                                                                                                                                                        N               N                     N                 N                Y                   Y                N
                                                                                                                                                                   description
     Functions               Tesco              ASDA                 Sainsbury's           Ocado             AmazonFresh           Waitrose            Morrisons

                                                                                                                                                                   Detail Bullets       Y               N                     N                 Y                Y                   Y                Y
Shipping             Y                  Y                     Y                    Y                    Y                  Y                   Y

BOPIS /Click &                                                                                                                                                     Best Seller Rankings N               N                     Y                 Y                Y                   Y                Y
                     Y                  Y                     Y                    Y                    N                  Y                   Y
Collect

Subscription/                                                                                                                                                      Ingredients          Y               Y                     Y                 Y                Y                   Y                Y
                     Y                  N                     Y                    Y                    Y                  Y                   Y
Subscribe & Save

                                                                                                                                                                   Allergy              Y               Y                     Y                 Y                Y                   Y                Y
Membership           Y                  N                     Y                    Y                    Y                  Y                   Y

Annual Membership                                                                                                                                                  Nutrition Panel      Y               Y                     Y                 Y                Y                   Y                Y
                  Free                  N/A                   Free                                      £79
Cost
                                                                                                                                                                   Sponsored Products
                                                                                                                                                                                        N               N                     Y                 Y                Y                   N                Y
Annual Delivery Sub £30                 £60                   £60                  £69.99-£109.99       £83.88             NA                  NA                  on Product Page

                                                                                                                                                                   Suggested Items on
Fastest Shipping/                                                                  Limited Same Day,                                                                                  N                 N                     Y                 Y                Y                   N                Y
                     Next Day           Next Day              Next Day                                  Same Day           Next Day Delivery   Next Day Delivery   Product Page
Delivery Available                                                                 otherwise next Day
Free Shipping                                                                                                                                                                                                       UK Online Grocery Market — Mobile App Capabilities
Threshold (with      £40                £40                   £40                  £40                                     £60                 £40
Delivery Sub)                                                                                                                                                             Functions            Tesco           ASDA               Sainsbury's          Ocado           AmazonFresh         Waitrose         Morrisons

Standard
                     £3.00 - £5.99      £3.00 - £5.50         £1-7                 £2.99-£6.99          £6.99 per month    £3.00 - £5.00       £1-£5               Search               Y               Y                     Y                 Y                Y                   Y                Y
Delivery Fee

                                                        UK Online Grocery Market — Pricing and Delivery                                                            Search Page Size     Unlimited       Unlimited             Unlimited         Unlimited        Unlimited           Unlimited        Unlimited
     Functions               Tesco              ASDA                 Sainsbury's           Ocado             AmazonFresh           Waitrose            Morrisons
                                                                                                                                                                   Menu                 Y               Y                     Y                 Y                Y                   Y                Y
OOS statuses         Out of Stock       Out of Stock          Out of Stock         Out of Stock         Various            Out of Stock        Out of Stock

                                                                                                                                                                   Menu Page Size       Full Category   Full Category         Full Category     Full Category    Full Category       Full Category    Full Category
Low stock            N                  N                     N                    N                    Y                  N                   N

                                                                                                                                                                   R&R                  N               N                     N                 Y                Y                   Y                Y
Waitlist /Email
                     Y                  N                     N                    Y                    Y                  N                   N
Notification
                                                                                                                                                                   Multiple Images      Y               N                     N                 Y                Y                   N                Y
                                              UK Online Grocery Market — Navigation options and Placement
     Functions               Tesco              ASDA                 Sainsbury's           Ocado             AmazonFresh           Waitrose            Morrisons
                                                                                                                                                                   Video                N               N                     N                 N                Y                   N                N
Menu Filtering
                     Y                  Y                     Y                    Y                    Y                  Y                   Y
Navigation
                                                                                                                                                                   Detailed Description Y               Y                     Y                 Y                Y                   Y                Y

Menu Page Size       20                 60                    30-90                Unlimited            24                 Unlimited           Unlimited
                                                                                                                                                                   Images/Graphics in
                                                                                                                                                                                        N               N                     N                 N                Y                   Y                N
                                                                                                                                                                   Description
Search Page Size     20                 32                    30-90                Unlimited            24                 Unlimited           Unlimited
                                                                                                                                                                   Detail Bullets       Y               N                     N                 Y                N                   N                Y
Suggested Search
                     N                  Y                     Y                    Y                    Y                  Y                   Y
Terms
                                                                                                                                                                   Ingredients          Y               Y                     Y                 Y                Y                   Y                Y

Spelling Forgiveness Y                  Y                     Y                    Y                    Y                  Y                   Y
                                                                                                                                                                   Sponsored Products
                                                                                                                                                                                        N               N                     N                 Y                N                   N                Y
                                                                                                                                                                   on Product Page
Sponsored Search     Y                  Y                     Y                    Y                    Y                  Y                   Y
                                                                                                                                                                   Suggested Items
                                                                                                                                                                                        N               N                     N                 Y                Y                   N                Y
                                                                                                                                                                   on Product Page
Search History       Y                  Y                     Y                    Y                    Y                  Y                   Y
                                                                                                                                                                   Average App
                                                                                                                                                                                        4.5             4.6                   3                 3.5              4.2                 3                2.5
                                                                                                                                                                   Rating iOS

                                                                                                                                                                   Average App
                                                                                                                                                                                        4               4.6                   4                 4                4                   3.5              4
                                                                                                                                                                   Rating Andriod
18

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