Who is Albertsons? Digital Retailer Snapshot Albertsons • Albertsons is collabora.ng with Pinterest and Vestcom to officially rollout an in-store and mobile integrated ini.a.ve in 2020. Tags with a photo of a completed recipe will be placed next to relevant products’ on-shelf price tags. The customer can go to the Pinterest app, snap a picture of the tag and will be redirected to Albertsons' Pinterest page. There, the recipe will pop up with the ingredients available at the grocery retailer. Many of the recipe's products direct shoppers to private label goods and helps support on-site basket building while wandering the store. • In October 2018, Albertsons Companies launched Albertsons Digital Marketplace, an e-store that shoppers can purchase directly from the manufacturer. The plaMorm offers 40,000 unique, specialty grocery products and is designed to gain visibility to smaller, up-and-coming CPG brands while maintaining the manufacturer's supply chains. From beauty to pet care, a brand that is interested to gain entry onto the D2C retail site needs to work directly with Albertsons Marke.ng, not other corporate divisions, to ac.vate an assortment. In the News Albertsons Companies is the second largest supermarket chain in the United States, available in 34 states under 20 different food and drug banners. With a focus on a strong, localized presence, Albertsons Companies sees 34 million in-store shoppers per week across its 2,262 stores. Recognizing the poten.al for market growth in its eCommerce and omnichannel spaces, the grocery company plans to expand services in Home Delivery, Drive Up & Go (DUG) and the Just for U loyalty program to increase consumer engagement, convenience of path to purchase and share of wallet. 1939 $503M 10% 60% 16.3M Year established U.S. eCommerce net sales, 2019 (0.8% of total sales) Basket size of Albertsons Home Delivery vs. in store Albertsons' online shoppers also shop Albertsons in store Total monthly site visitors (all digital banners, December 2019) 5x larger Year-over-year online sales change from 2018 to 2019 Sources: Albertsons Companies Company Fact Sheet, 9/7/19; Albertsons Home Delivery Demographic Intel, 2017; "Albertsons revs up engines of growth", Supermarket News; EDGE Retail Insight Retailer Dashboard, 2020; "2018 Insider's Guide Albertsons", IN Connected Marke.ng; Similarweb.com; "Albertsons will roll out Pinterest recipe integra.on", Grocery Dive; "Albertsons introduces 1-2 hour prescribed drug delivery service", Albertsons Public Rela.ons, Photograph courtesy of Forbes, Albertsons Serving across 34 states Target Market: Health-Conscious Affluent Moms
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Who is Albertsons?
Digital Retailer Snapshot
Albertsons
• Albertsonsiscollabora.ngwithPinterestandVestcomtoofficiallyrolloutanin-storeandmobileintegratedini.a.vein2020.Tagswithaphotoofacompletedrecipewillbeplacednexttorelevantproducts’on-shelfpricetags.ThecustomercangotothePinterestapp,snapapictureofthetagandwillberedirectedtoAlbertsons'Pinterestpage.There,therecipewillpopupwiththeingredientsavailableatthegroceryretailer.Manyoftherecipe'sproductsdirectshopperstoprivatelabelgoodsandhelpssupporton-sitebasketbuildingwhilewanderingthestore.
• InOctober2018,AlbertsonsCompanieslaunchedAlbertsonsDigitalMarketplace,ane-storethat
shopperscanpurchasedirectlyfromthemanufacturer.TheplaMormoffers40,000unique,specialtygroceryproductsandisdesignedtogainvisibilitytosmaller,up-and-comingCPGbrandswhilemaintainingthemanufacturer'ssupplychains.Frombeautytopetcare,abrandthatisinterestedtogainentryontotheD2CretailsiteneedstoworkdirectlywithAlbertsonsMarke.ng,notothercorporatedivisions,toac.vateanassortment.
In the News
AlbertsonsCompaniesisthesecondlargestsupermarketchainintheUnitedStates,availablein34statesunder20differentfoodanddrugbanners.Withafocusonastrong,localizedpresence,AlbertsonsCompaniessees34millionin-storeshoppersperweekacrossits2,262stores.Recognizingthepoten.alformarketgrowthinitseCommerceandomnichannelspaces,thegrocerycompanyplanstoexpandservicesinHomeDelivery,DriveUp&Go(DUG)andtheJustforUloyaltyprogramtoincreaseconsumerengagement,convenienceofpathtopurchaseandshareofwallet.
1939 $503M 10% 60% 16.3M
Yearestablished U.S.eCommercenetsales,2019
(0.8%oftotalsales)
BasketsizeofAlbertsonsHome
Deliveryvs.instore
Albertsons'onlineshoppers
alsoshopAlbertsonsinstore
Totalmonthlysitevisitors
(alldigitalbanners,December2019)
5x larger
Year-over-yearonlinesales
changefrom2018to2019
Sources:AlbertsonsCompaniesCompanyFactSheet,9/7/19;AlbertsonsHomeDeliveryDemographicIntel,2017;"Albertsonsrevsupenginesofgrowth",SupermarketNews;EDGERetailInsightRetailerDashboard,2020;"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;Similarweb.com;"AlbertsonswillrolloutPinterestrecipeintegra.on",GroceryDive;"Albertsonsintroduces1-2hourprescribeddrugdeliveryservice",AlbertsonsPublicRela.ons,
Photograph courtesy of Forbes, Albertsons
Serving across 34 states
Target Market: Health-Conscious Affluent Moms
Photograph courtesy of Albertsons
The Consumer Experience
EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,MarketStreet,Randalls,UnitedSupermarket,Pavilions,Amigos,AlbertsonsMarketandTomThumbFee:Freeforfirstorder,then$9.95averagedeliveryfeeand$3.95-$4.95servicefeeOrderMinimum:$30StoreFootprint:1,151storesAssortmentRange:43,000productsDeliveryOpSons:same-dayisavailablebutcondi.onalonopenappointments
Home Delivery EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,MarketStreet,Randalls,UnitedSupermarket,Amigos,AlbertsonsMarketandTomThumbFee:$3.95-$4.95servicefee,dependingonloca.onOrderMinimum:$30StoreFootprint:600storesAssortmentRange:Condi.onaltoselectedstoreSame-DayPickup:Yes,3-hourminimumfulfillmentwindow
Drive Up & Go (DUG)
Sources:AlbertsonsCompaniesCompanyFactSheet,9/7/19;"MobileApps",Albertsons.com2020;"OnllineShoppingFAQ",Albertsons.com2020;"Albertsonsrevsupenginesofgrowth",SupermarketNews;"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;Instacart.com,AlbertsonsCompaniesShopperMarke.ng
EligibleBanners:Albertsons,JewelOsco,Safeway,Vons,StarMarket,Andronico’sCommunityMarkets,Shaw’s,Carrs,ACME,RandallsandTomThumbMembershipOpSon:InstacartExpressmembership($99/yr)Fee:Freew/membership;fornon-members:$3.99-$5.99perorderOrderMinimum:$35StoreFootprint:1,800storesAssortmentRange:43,000productsDeliveryOpSon:Minimumfulfillmentwindowis2hours
Instacart Partnership
The Manufacturer Experience What Does This Mean for Sales?
• Albertson’sMonopolymerchandisingeventistheirlargestadcampaignoftheyear,witha13-weekdura.onfromFebruarytoMay.Mostmanufacturerscanpar.cipateiftherequired$70Kinvestmentismet.
• Theother3na.onaleventsarecompe..vetoenter.Albertsonsacceptsmostsalespitchesbasedona$40Kinvestment,lowestcasecostoffer,assortmentrelevancytosalemessaging,mul.-channelmediaapplica.onsandcouponenhancements.
• Thesemajoreventsareplanned4monthsinadvance,sopitchestopar.cipatemustkeepAlbertsons'scheduleinmind.
Digital Retailer Snapshot Albertsons
Albertsonshasadecentralizedopera.ngsystemthatgiveseachdivisionandbannersignificantcontrolovertheirownmerchandising,pricingandmarke.ngac.vi.es.Becauseauthorityandresponsibilityareheldatthelocallevel,productselec.onistailoredtoeachmarket.
AlbertsonsCorporateDenver
Eastern
Inter-mountain
NorthernCalifornia
SouthernCalifornia Portland Southern Southwest ACME Jewel
Osco
Shaw’s
Star
United
HaggenNaSonalMerchandisingEventsAcrossallbanners,thereare4na.onalsalesevents:Monopoly,SummerSavings,AnniversarySaleandStockUpSale.
Sources:"2018Insider'sGuideAlbertsons",INConnectedMarke.ng;''AlbertsonsPerformanceMediaNewSiteSponsoredSearch''Webinar,Quo.ent;"AlbertsonsPerformanceMedia:NewSiteSponsoredSearch",Quo.ent&Albertsons;Albertsonsperformancemedia.com,AlbertsonsCompaniesShopperMarke.ng
CPGDigitalCommerceMarkeSngSoluSons• Quo.ent'smediaplaMormofferssponsoredplacementopportuni.estoboostonlineand
omnichannelsales:�• HomepageandCategoryAisleCarouselshaveselectablecategoryclassifica.onswitha31%
conversionrate.• SERP(searchengineresultspage)providessponsoredlis.ngsinsearchpageplacements2,4,6,10and12.�
JustforUisanAlbertsonsCompaniesloyaltyprogramwithdigitalcouponsandpersonalizeddeals.Manufacturerscancapitalizeontheseac.va.onsforbothonlineandin-storepromo.onstohelpmaintainconsistencyandincen.vizecertainpathstopurchase.Allcouponsandoffersaresupportedwithintheloyaltyapp,viaemailandthroughpushno.fica.ons.
What Does This Mean for Marketing?
: Omnichannel Promotion Opportunities
Photograph courtesy of Albertsons
Digital Retailer Snapshot Albertsons
• Quo.ent’sRetaileriQplaMormconnectsdirectlytoJustforUac.va.ons,providingback-enddeliveryofpersonalizeddigitalcouponsthatcanbeaddedtomobileloyaltyapps.Thesepromo.onscanbesponsoredforpreferredplacementacrosstheapp,thentargetedbyscale(na.onalorregional)andshopperbehavior.
• TheJustforUCouponsLandingPageplacesalldiscountsfromamanufactureronasinglepage,withacustomURLandabrandedbanner.ThisishighlyrecommendedforlargerbrandswithsubsidiariesormanufacturerswithabreadthofassortmentatAlbertsonsstores.
• TargetedManufacturerCouponsarecents-offoffersthatcanbesegmentedbyQuo.ent'slifestyle,purchasebehavior,purchaseintentorpredic.vemodelingdata.Ifvisibilityistheobjec.veforapromo.oncampaign,Albertsonscantargetthesecouponstolapseshopperstobringthembackin-storeortothesite.
• For"freeitems"(i.e.digitaldemos)andfreeshippingpromo.ons,thereisnoaddi.onalcosttoac.vate,excepttofundtheproductcost.
• Seasonalityandpersonaliza.onarekeyforROI,appealingtospecificconsumerneedswilldrivethecoreincen.vetoaloyalty-basedsale.
• Productplacementkeywordsarepre-selected;thereforenobrandedsearchtermscanbeop.mizedinsearch.• Geotarge.ngtoazip-codelevelisavailableformarke.ngandadver.singcampaignstosupportpersonaliza.onand
relevancytotargetconsumers.• Albertsonsiscurrentlyworkingtocreateauniversalpromo.onalplannertokeepoffersconsistentacrossdivisions,thisis
causingmajordigitalCPGeventstobeplanned26weeksinadvance.Couponsandsponsorshipsarenormally4to8weeks.PerformanceAnalyScs• Arribu.oniscurrentlylimitedtoonlinesalesandprovidedbyQuo.ent.Albertsonsisexpectedtoincorporatein-storesales
repor.nginQ12020.Addi.onaldatarepor.ngcapabili.esareasfollows:• Campaignperformanceandinsights• Pageperformanceandconsumerengagement• Fullfunnelconversion• Recommenda.ons
Albertsons’marke.ngismanagedthroughasingleaccesspoint,AlbertsonsPerformanceMediaPoweredbyQuo.ent,acrossthefollowingbanners:Albertsons,Safeway,JewelOsco,Pavilions,Vons,TomThumbandRandalls.Theremainingbannerswilltransi.ontotheupdatedAlbertsons’siteformin2020,expandingpromo.onalac.va.onopportuni.es.AlbertsonsPerformanceMediacanbemanagedbyanagency,suchasSageTree,orthemanufacturerdirectly.
Leverage Albertsons Marketplace for specialty, D2C products and step into brick-and-mortar networks • Formanufacturersthataredigitallyna.ve,AlbertsonsMarketplaceoffersanopportunitytoenter
mainstreamretailwithoutreinven.nganeCommerce-basedsupplychain,requiringanin-storepresenceorneedingbuy-infromseparatedivisions.
• KeepingAlbertsons’healthconscioustargetshopperinmind,naturalandspecialtybrandscanleveragethisplaMormsuccessfullysincethoseconsumersarelikelytopaymoreforauniqueitem.ThoseD2Cmanufacturerscanboostvisibilityandawareness,offeruniquemediaandpromo.onsandbuildashelfsetthatcaterstothosespecificshoppers.
Just for U personalization promotions are critical to elevating omnichannel opportunities at Albertsons • SinceAlbertsonsmarke.ngstrategiesareprice-focused,JustforUisavitalcomponentofmarke.ng
campaigns.LoyaltycouponswilldrivethestrongestROIandarractdivisionalandbannersupportasHomeDeliveryandDriveUp&Goservicesexpand.
• InvestinJustforUlandingpagesformanufacturerswithawideassortmentatAlbertsonsCompanies.• BringinlapseshoppersorspecificconsumermarketswithTargetedManufacturerCoupons.Couplewith
“freeitem’’incen.vestobuildbasketsanddriveacalltoac.onwithmobileapppushno.fica.ons.• Iden.fycoreobjec.vesfortheshoppersandretailerstoimplementthebestJustforUdiscountsthat
arenotonlyarrac.vebutmeetpersonalgoalsinthespace.
Avoid one-size-fits-all solutions when elevating eCommerce across Albertsons banners, instead focus on local • ThedecentralizedstructureofAlbertsonsCompaniesputsdecisionmakinginthehandsofmanagers
thatareclosertotheshopperbase.Thisdivisionalautonomyworksbestwithlocalizedmarke.ngstrategieswhereamanufacturer’sassortmentsareavailable.
• Capitalizeonna.onalandlocalevents,includingholidays,thatarerelevanttoamanufacturer’stargetmarketsandproducts.
• Leverageplacements,exclusiveoffersandfeaturesonAlbertsonsCompanies’marke.ngchannelsthataretailoredtothespecificneedsofthedivisionsorbanners.
• UsingQuo.ent’sgeotarge.ngcapabili.es,implementexclusiveofferstodeliverondifferen.ated,localvalueandimprovedexperienceswithretailreadydigitalshelves.
Digital Retailer Snapshot
Albertsons
Strategic Areas of Focus
TolearnmoreaboutpartneringwithAlbertsons,contactnatalie.monte@advantagesoluSons.netwithAdvantageDigitalTechnology.
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