Ocado: driving growth for brands - Rose Price Head of Buying - The Grocer Conference
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Ocado: driving growth for brands
Rose 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 ▪ Tesco Price ▪ Listed on London ▪ First deliveries ▪ 3rd CFC Andover ▪ 4th CFC Erith
Steiner, Jason Match Stock Exchange for opened opened
Gissing and introduced morrisons.com
Jonathan ▪ Ocado ‘own-
Faiman ▪ Introduced label’ range
Ocado Smart launched
▪ Entered into Pass
arrangement with
Waitrose
▪ Started delivery ▪ 'Ocado on ▪ Signed commercial ▪ Exceeded £1bn ▪ Launched
to customers the Go' agreement with in annual sales Ocado Skill with
smartphone Morrisons Alexa
▪ Opened 1st app ▪ 2nd CFC Dordon
customer launched opened
fulfilment centre ▪ Ocado Regulars
(CFC) in Hatfield
▪ Began pilot ▪ Delivery area ▪ Launched ▪ Reached 50k ▪ Commercial
deliveries increased to low price skus agreement
cover 10mln promise with Dobbies
▪ Launched
households Fabled
2000 2002 2008 2009 2010 2013 2014 2015 2016 2017 2018
Ocado has a unique model allowing us to take a range larger than any other
Our range competes with traditional supermarkets...
Strong own-label range Big brands at competitive prices
...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
Great test bed for NPD Ideal channel for global catalogue
...but we want to be so much more
We bring the high street online
Our growth drives growth for our suppliers
Ocado: 12% growth in 2018 Online: the fastest growing channel
Growth driven by our continued investment in customer
proposition
Improved service from New CFCsWe are investing in tools to help you outperform
Smarter algorithms driving Increasing effectiveness of
personalisation our media toolkitWe 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 termsWe are investing in tools to help you outperform
Smarter coupon capabilities Positive results tailored to campaign aims
▪ Data Science
powered targeting
▪ Increased visibility
throughout the shop
▪ Redemption cap >300% unit repeat >400% unit repeat >800% unit repeat
available to increase purchase rate purchase rate purchase rate
suitability for smaller
brands Targeted customers Targeted a Targeted
buying complimentary competitor brand customers after
products delist earlier in the
yearA listing is just the start – you need a credible online
strategy
Drive awareness and conversion:
We have 50k SKUs – how can you
Are customers aware of make customers aware of your product
your product? either on- or off-site? Visibility is key.
Invest smarter
using data and
50% of adds are from search. Understanding increase
Can they find effectiveness with
and optimising search is crucial.
your product? personalisation
and segmentation
Will they 70% of items added are favourites and products are
buy it? added in less than 1 minute. How can you make it easy
for them to choose your product?Bringing the best together from Sept 2020
▪ Ocado last week made an announcement
which outlines yet another transformational
deal for our business, combining The service our customers know and love
our ocado.com retail business with another
iconic and much-loved brand, M&S, enabling
us to jointly provide an unrivalled online +
grocery offer.
M&S’s highly regarded own-label
+
Ocado’s love for brands
▪ Waitrose continues to act as our sourcing
partner until September 2020In 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 rangeThank you
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