Reaching & Understanding Consumers In A Digital World

Francis Nicholas

Group Digital Director, Nomad Foods Europe

7th March 2017

1

2

#1 player

In 9 markets

#1 Frozen

Food position

in Europe

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• Looking at the Omnichannel World

• A focus on the eCommerce Channel

• The Birds Eye Approach

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Looking at the Omnichannel World

The World Is Changing

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The World Is Changing

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Device Proliferation Is Exploding, Allowing New Solutions To Emerge

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Source: Deloitte

Household Retail Spend by Sector

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Food and Grocery Non Food

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10

Complex Non Food Last Mile Solutions Are Increasingly Transferring to Food & Drink

We See The Same Happening In Food & Grocery

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£1.00 + £0.39 = £1.39

We All See That New Sales Channels Are Emerging

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We See This Very Clearly In Channel Trends

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Total UK Frozen Food Market

Offline

Online

- £33 Million- 1%

+ £34 Million+ 7%

This Year Last Year

Source: Kantar Worldpanel P52W to Jan 29th 2017

+ £1 Million+ 0%

With The Corresponding Challenges In Terms of Ways of Working

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Sales ChannelExecution

Traditional Brand Marketing

▪ Parallel Tracks for

Brand Plans and

Customer execution

Multichannel SalesExecution

Traditional and Digital Marketing

▪ Haphazard

translation of Brand

Plans into Customer

execution

AddressableConsumerMarketing

OmniShopperMarketing

Multichannel Sales Execution

▪ Integrated Brand &

Customer

execution

Needs: Process/Toolkits, Structure & People

We Will See Much More Innovation

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Looking at The eCommerce Channel16

The Online World Is A Special Place For the Frozen Category

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The Impact Of Online Shopping on Baby Consumables and Frozen Food Is Profound

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Offline: #5 Online: #2

Online vs Offline Behaviours Are Different

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Start of Shop End of Shop

When Are Frozen Products Added To The Basket?

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

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Physical Store Click & Collect/ Drive Van Delivery

Cost of Goods, running the operation

Picking & Packing

Delivering

The profit that’s left afterwards

We Know That The Last Mile Becomes More Complex With New Ways To Delight The Shopper

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We Know That The Last Mile Becomes More Complex With New Ways To Delight The Shopper

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2828

1 Reliable delivery

2 Quality

3 Price

4 Opening / delivery hours

5 Ease of order

6 Delivery charges

7 Delivery times

8 Availability

9 Ease of finding products

10 Good product substitutions

11 Range of fresh products

92%

89%

89%

88%

86%

85%

83%

82%

80%

76%

74%

60%

53%

53%

50%

46%

54%

45%

41%

37%

38%

39%

Extremely important Extremely or very importantOver three months

Some Offline Shopper Drivers Are More Pronounced Online

Source: IGD

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Consumers Are Looking For Solutions To Problems

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And They Are Prepared to Pay Too….

Source: Kantar WorldPanel Usage: Average cost per meal occasion52 w/e August 2016

Saving time

28% more

Health

5% more

Social occasions

23% more

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Online Amplifies The Benefits of Frozen

Easier access to information allows better meal planning

Pick/ Pack/ Ship and Cube Fill Very Efficient - only The Frozen Category Director can fill the Frozen tote…

Home Delivery allows an unbroken Frozen chain right to the kitchen

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The Birds Eye Approach

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Marketing TV/ Search/ Social/ Mobile/ Media

SalesHypermarket/ Convenience/ Discounter/ eCommerce

Catching High Quality Traffic

Provide most engaging experience

Drive Trial & Bigger, More Profitable Baskets

We Have a Clear Strategy To Lever All Digital Touchpoints

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SEO

Websites

Content

Media Mix

Social Media Sales

We Have a Clear Strategy To Lever All Digital Touchpoints

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‘Alw

ays

On

’ Bri

llian

t B

asic

s Right taxonomy & layout

‘Always On’ merchandising (full value dual siting, cross & up sells)

Assortment and promotions tailored to the channel

Eventing, eg Back To School or Retailer Calendar Event

Cre

atin

g D

em

and

Meal planning / recipe ideas – full value & promotions: Nomad & others

Basic Product Content

Rich product content (imagery/ endorsements/ on plate/ video/ Ratings & Reviews)

Winning With Search Overall and Within Retailer Site

Extended Assortment, eg large packs & extended skus

Share of Feature Assessment

Driving Trial

Playbooks and Scorecard Processes Help Us Work To Raise the Bar Everywhere

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Brilliant Basics Is All About Good Shopkeeping

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Demand Creation Allows Us To Provide Solutions To Problems Which Are Harder To Implement Instore

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Thank you!