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Farmers MarketSprouts
| Borowski | Helms |MKTG 4805 Introduction to Digital Marketing | Daniels College of Business
BH Digital -- Digital Campaign Brief
Farmers MarketSprouts 2
Agenda Section 1: Situation Assessment
Section 2: Campaign Goals
Section 3: Campaign Tactics
Section 4: Campaign Planning
Section 5: Campaign Tracking
Sprouts Farmers Market
Farmers MarketSprouts 3
Section 1: Situation Assessment
Sprouts Farmers Market
Farmers MarketSprouts
Neighborhood grocery store With an old fashioned farmers market feel
Bright and friendly stores with quality products at great valuesAnd friendly, knowledgeable team members to help you make healthier choices in your budget.
•Fastest growing retailer in the US•Headquarters in Phoenix, AZ•160 stores in 8 states•14,000 employees
OverviewCompany
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Sprouts Farmers Market
Farmers MarketSprouts
Mission: Healthy Living for Less
Vision: To create a hybrid between a natural foods store, a farmers market and a conventional supermarket, and as such provide a low-pressure, easy-to-shop, highly affordable steppingstone to better eating
Mission and VisionCompany
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Sprouts Farmers Market
Farmers MarketSprouts
Social Responsibility – Food Rescue Programs– SCRIP Fundraising – helping non-profits raise money – Community Events– Volunteerism– Walk now for Autism Speaks– Grab ‘n give Holiday Food Drive
Increasing Business Intelligence•Just became publicly traded in August – doubled price in first day•Merchandise Analytics from Manthan Systems
aggregate retail data from multiple sources so that merchandises, marketers, and everyone else can access a single application to gain insights regarding business performance quickly and easily
With an old fashioned farmers market feel
Bright and friendly stores with quality products at great valuesAnd friendly, knowledgeable team members to help you make healthier choices in your budget.
•Fastest growing retailer in the US•Headquarter in Phoenix, AZ•160 stores in 8 states•14,000 employees
GoalsCompany
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Sprouts Farmers Market
Farmers MarketSprouts
Young Singles
20-35 years oldMost price sensitive segmentHighly connected online and on mobile
FamiliesPrimarily mothers Searching for the best valueActive online and via email
Environmentally Conscious College educatedHighly informed segment looking for qualityResearch and fact check online
Customers
Sprouts Farmers Market
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HEALTH AND PRICE CONSCOIUS
Farmers MarketSprouts
Young Singles
Kroger Co.King SoopersSafeway
FamiliesTrader Joe’sSafewayKing Soopers Fresh Fare
Environmentally Conscious Whole FoodsNatural Grocers Farmers Markets
Competitors
Sprouts Farmers Market
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BY SEGMENT
Competitive Trends
Farmers MarketSprouts
Competitors
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Porter’s 5 Forces
[high start up cost and complicated supply chain]
[readily available alternatives with low switching costs]
[educated consumers]
[variability of products and seasons]
Sprouts Farmers Market
Farmers MarketSprouts
PEST Analysis
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Sprouts Farmers Market
Farmers MarketSprouts
SWOT Analysis
Sprouts Farmers Market
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Farmers MarketSprouts
“In a Nutshell”
Free monthly email newsletter sent to registered customers. Can sign up on website. Contains coupons and e-news updates.
257,711 likes
Well updated and active community interaction/posts on page. However, low number of likes compared to Whole Foods (1,405,000).
6,321 followers
Personalized responses to followers and daily tweets. Instagram is connected to feed. Very low following compared to Whole Foods (3k).
www.sprouts.com
Confusing homepage for navigation, but excellent use of online coupons and promotions for in-store. Links to Facebook and Twitter pages with option to “like”.
Slide 1 of 2
Digital Marketing Programs
E-News Facebook Twitter Website
Sprouts Farmers Market
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Farmers MarketSprouts
3,400 followers
Mostly photos of store products, liked to Twitter account. However, no mention on website or Facebook page and not many likes per photo.
2,381 Followers
27 boards of recipes, seasonal produce, and food infographics. However, no mention of existence anywhere but a link from their Facebook page. Also hard to search- can’t find from searching “sprouts” alone (need Sprouts Farmers Market).
Continued
Digital Marketing Programs
Instagram Pinterest
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Farmers MarketSprouts 14
Section 2: Campaign Goals
Sprouts Farmers Market
Farmers MarketSprouts
To increase loyalty in current consumers, by creating brand advocates and ultimately growing the company’s consumer base.
Target Audience: Families, primarily mothers, searching for the best value and are active online and via email.
Strategy: Create a loyalty program, rewarding customers for faithful consistency in shopping at Sprouts via discounts, sales, promotions, events, etc., including benefits for referring new members to the program.
Loyalty and GrowthCampaign Goals
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Sprouts Farmers Market
Farmers MarketSprouts
Mother of two young children
Suburban, ages 30-45
Julie
Primary shopper in household
Smartphone owner, digitally savvy
Concerned w/price and qualityWants to provide for her family with the peace of mind that she is delivering the best quality groceries at the best price.
Target Persona
Feed Denver: Urban Farms & Markets
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Farmers MarketSprouts
Natural Grocery Industry
Positioning Map
Sprouts Farmers Market
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Health Conscious
Low Health Conscious
Low Cost High Cost
Sprouts
Farmers’ Markets
Kroger Co.
Safeway
Trader Joe’sKS Fresh Fare
Whole FoodsNatural Grocers
Farmers MarketSprouts
“Live Healthy for Less”
We offer the HIGHEST QUALITY of groceries at PRICES
comparable to or less than your everyday grocery store.
Sprouts Farmers MarketValue Proposition
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Sprouts Farmers Market
Farmers MarketSprouts
Sprouts Farmers Market
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Farmers MarketSprouts
Online Value PropositionCampaign Messaging
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Sprouts Farmers Market
Mobile/online hub for loyalty program:• Scan phone at checkout• Automatic Foursquare check in• “Brand ambassador” title for high engagement
Program Benefits:• Points accumulated for purchases in store, referrals, and number of visits, etc.
• List/shopping features with coupons• Special promotions
Resistance:• Takes more effort for amount of savings
Farmers MarketSprouts 21
Section 3: Campaign Tactics
Sprouts Farmers Market
Farmers MarketSprouts
To increase loyalty in current consumers, by creating brand advocates and ultimately growing the company’s consumer base.
LOYALTY AND GROWTHCampaign Goal
Sprouts Farmers Market
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Farmers MarketSprouts
“Sprouts Club”Description: Create an easy use loyalty program that gives members exclusive access to:•Special discounts and in-store sales on marked items•A mobile app that includes: list making, recipe ideas and suggestions, customized store maps, nutritional info and in season produce.
Rationale: Creating loyal consumers will ultimately create brand advocates, in turn increasing awareness of Sprouts.
Tactic 1
Creation of Loyalty Program
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Sprouts Farmers Market
Farmers MarketSprouts
Description: Introducing “Sprouts Club” to shoppers and gaining members by:•Hosting a booth with greeters at the entrance of all stores for “Membership Month,” providing food samples and iPads set up for easy sign up•QR codes located on sale item displays linking to the sign up page to give customers another touch point•In-store promotional banners, fliers, brochures, floor decals, displays•Webpage re-design to promote program on homepage
Rationale: By increasing shopper awareness of the loyalty program Sprouts will gain members.
Tactic 2
Marketing Sprouts Club
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Sprouts Farmers Market
Farmers MarketSprouts
Description: The Sprouts Club Referral Program will provide mutual benefit for club members and Sprouts when members refer friends to the loyalty program. Members will receive “seeds” or membership points which accumulate to gain them rewards and Sprouts will gain new (loyal) customers.
Rationale: This program increases Sprouts’ customer base, loyalty, and overall profitability.
Tactic 3
Implementing Referral Program
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Sprouts Farmers Market
Farmers MarketSprouts
Welcome BoothFor awareness and initial sign up in store
On and Offline
In-Store PromotionAdvertising in-store to promote program
QR CodesPhysical codes in-store lead to the online sign up on website
Integration
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Farmers MarketSprouts
Wireframe: Homepage
Farmers MarketSprouts
Sprouts Farmers Market
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WIREFRAME: MOBILE LANDING PAGE
Farmers MarketSprouts 29
Section 4: Campaign Planning
Sprouts Farmers Market
Farmers MarketSprouts‘Sprouts Club’
Project Plan
Sprouts Farmers Market
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Farmers MarketSprouts‘Sprouts Club’ Media
Schedule
Sprouts Farmers Market
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Farmers MarketSprouts
Expenses to support tactics– Financing for talent acquisition in terms of technological
development – Financing for marketing efforts and in-store promotional tactics
• I-Pads• Membership Cards • Banners/Hanging Signs • Window Decals• Sign-up Tables
Required Sources – Hire from within or acquire new talent for task force who will
carry out all aspects of the project– Acquire an expert to create the technology for the Loyalty &
Referral Program – Employ extra labor involved in promotional activities
Financial Considerations Budget
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Sprouts Farmers Market
Farmers MarketSprouts
Communication PlanKey Stakeholders
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Sprouts Farmers Market
Investors & Board of Directors• Present and explain the project plan • Emphasize sales, profit and ROI increases • Take responses and suggestions into account
Employees & Suppliers • Incentivize employees to give customers a reason to be loyal• On-going training about the program and the benefits to the organization
• Show how the projected increase in sales at Sprouts transfers into profits for suppliers too
Customers & Community • Promotional and marketing efforts will explain all benefits of the Program
• Community will be given the opportunity to become more involved as consumers
Farmers MarketSprouts
Lack of Understanding
Mitigations of “Sprouts Club”
Underperformance “Sprouts Club” does not obtain the increase in sales to overcome the costs of the program
The Program is not well received among customers causing Sprouts to lose significant capital to development and implementation
RisksExclusivity BackfiresConsumers who do not sign up for Program may stop shopping at Sprouts because they do not receive the same discounts
Sprouts Farmers Market
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Use of DataNot collecting the right data and/or not using the collected data to the organization’s advantage
Farmers MarketSprouts
Transparency of Program
Fully explain the ease of signing up for the Program – No requirements, no restrictions, no hidden fees.Back-up PlansProduce several “back-up” plans in terms of marketing and promotion - Need several different methods for obtaining members
Addressing Risks
Test The TechnologyDevelop and test the technology to make sure it records and analyzes the data driven by the Program - Know in advance how the data will be used
Feed Denver: Urban Farms & Markets
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Farmers MarketSprouts 36
Section 5: Campaign Tracking
Sprouts Farmers Market
Farmers MarketSprouts
Key Performance Indicators
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Metric Quantitative Qualitative
Activity
- # of New Members- # of Referrals- # Download of Apps- # of Social Media followers &
“Likes”
- Distribution of referrals per customer - Positivity/negativity of social media interaction - App Rating Survey
Interactivity
- # of Lists Made- # Discounts redeemed- # Store Visits- # Seed Points Received - Geographic tracking of app use (in-store versus out of store)
-In Store Surveys-Social media-Customer satisfaction according to employees-Buzz generated around member events and promotions
Sales
- % Change in monthly sales- % Change in inventory turnover and product spoilage - % Change in returned products
- Employee Morale- In-store satisfaction poll- Corporate wellbeing- Shopper testimonials posted in-store
Farmers MarketSprouts
Membership Month
May Dashboard
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Total Conversions Conversion Rate
# of Non-referral New Members
1,282,500 282,150 22%
# of Referred New Members
67,500 51,638 76.5%
# of App Downloads
333,788 313,761 94%
TOTAL 1,683,788 647,549 39.5%
Farmers MarketSprouts
We recommend the creation of “Sprouts Club” in order to grow loyalty, create
brand advocates and expand the company’s consumer base.
By offering additional benefits to the typical customer experience, this loyalty program will ultimately
encourage a new buying behavior that is beneficial for all parties involved.
Conclusion
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Farmers MarketSprouts
1. Develop the task force that will be involved in the project, including the talent for the technology portion
2. Conduct research and develop the timeline to make the project a success
3. Begin to equip all stores with promotional material
The Next Steps
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