SAINSBURY’S: WINNING TODAY’S CUSTOMERS THROUGH DEEP INSIGHTS David Buckingham President, Aimia US Region ISS.

SAINSBURY’S: WINNING TODAY’S CUSTOMERS

THROUGH DEEP INSIGHTS

David BuckinghamPresident,

Aimia US Region ISS

AIMIA MAKES BUSINESS PERSONAL

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We inspire loyalty by creating deep

and lasting relationships that

are relevant, rewarding and fun

Helping modern companies do

what a traditional corner shop would do

Aimia provides loyalty solutions for over 100 brands including…

AIMIA IS THE LARGEST LOYALTY COMPANY IN THE WORLD

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AIMIA AND SAINSBURY'S HAVE BEEN DRIVING A SUCCESSFUL PARTNERSHIP FOR MANY YEARS

MARKETING EFFICIENCIES UNDERLIE OPERATING MARGIN

Aimia has worked with Sainsbury’s to extend its own brand into categories previously dominated by branded products.

OWN BRAND SALES PENETRATION GROWTH

Leveraging Nectar insight to reduce wastage and increase targeted, personalized marketing has helped contribute to Sainsbury’s growing its operating profit year after year.

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THE RELATIONSHIP HAS EXPANDED EXTENSIVELY OVER TIME

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THE LAUNCH OF I2C CHANGED THE FACE OF THE UK SHOPPER MARKETING INDUSTRY

Holistic, insight-led customer analytics and communications

Over 22m transactions per week in 1000 locations 30+ media channels

Loyalty, insights consultancyand CRM planning expertise

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“It’s a win-win for both customers and suppliers. This means

more timely, relevant and accessible offers for

customers based on their likes and dislikes, while brands benefit from an

end-to-end insight based marketing solution and

greater ROI.”

SAINSBURY’S

“The creation of i2c has been a game

changer in the way we have used customer

insights to plan, execute and evaluate multi-channel shopper marketing campaigns.”

UNILEVER

CLASS LEADING INSIGHTCPG’S ACCESS IDENTICAL CUSTOMER DATA TO THE SAINSBURYS TEAMS

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SELF SERVE• 100% EPOS and Customer data

over 2 yrs

• Daily data, delivered weekly

• Highly granular – SKU, customer, transaction level

RETAIL CONSULTANCY• Taking insight to action

• Aligned to Sainsbury’s category teams

• Facilitate better conversations with Sainsbury’s on insight

• Advanced analytical techniques

QUALITATIVE RESEARCH• Provides the customer voice in our tailored

retail consultancy solution

• Using Sainsbury’s transaction and SKU level data we are able to accurately target consumers based on real behaviours

• Delivers the ‘why’ behind the ‘what’ for true holistic insight

I2C BRINGS SUPPLIER INSIGHTS IN SUPPORT OF CATEGORY OBJECTIVES

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PROJECT KICK-OFF• Identify work done to date• Align to sainsbury’s objectives• Agree target suppliers on board

INTERIM INSIGHTS REVIEW

i2c facilitate workshop attended by Sainsbury’s and supplier to agree top line decisions from CDH

INSIGHTS DELIVERY PHASE 2 AND FINAL REVIEW

i2c complete CDH, write up and support supplier’s final presentation to Sainsbury’s. Next steps are agreed.

Range go-live

POST IMPLEMENTATION REVIEW

i2c delivers agreed PIR work to supplier with findings and recommendations.

SUPPLIER INSIGHTS DELIVERY PHASE 1

Kick off meeting with agreed suppliers and category team. i2c provide category landscape and build CDH. Start to understand key decisions in ranging tree, writing up the top line findings/thoughts ready for interim insights review workshop

Landscape, KPIs Value of each decisionDecision hierarchySize of range tail

I2C COMMUNICATIONMAXIMISE REACH AND RESPONSE WITH AN INTEGRATED CUSTOMER JOURNEY

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TARGETED ONLINE COVERAGE TRIGGERS FOR PURCHASE CONSIDERATION

FOLLOW UP AND LOCK IN

Social Media

Email

Direct Mail Milk Advertising

Entrance Gates

Trolley and Basket Advertising

IN ANDAROUND STORE

ATHOME

Coupon at Till C@T

Sampling

Mobile App

Sainsbury’s Online

Competition Bakers

New Information Bakers

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SAINSBURY'S AND I2C MAKE PROMOTIONS WORK HARDER FOR LONGER

SUMMARYDemonstrating how high visibility media can drive awareness of price promotion, whilst also targeting a smaller group of preferred customers drives campaign efficiency

OBJECTIVES• Increase awareness and sales of Ryvita brand

• Awareness of new packaging and key SKUs

• Maximise visibility of in-store £1 price promotion

• Follow-up previous Coupon @ Till redeemers

RESULTS Demonstrating how high visibility media can drive awareness of price promotion, whilst also targeting a smaller group of preferred customers drives campaign efficiency

Total Per head

Trolley £59k £0.02

Combined £8k £0.21

Coupon £7k £0.22

Incremental revenue to Ryvita Crispbreads

Incremental revenue to Ryvita Crispbreads (%)

Post 13%

10%

3%

CustomersTrolley

3 weeks – 3mCoupon at Till

3 weeks – 40kCombined

6 weeks – 35k

1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526

0%

10%

20%

30%

40%

50%

Campaign period Post period

Pro

mo

tio

n

Pro

mo

tio

n

Trolley Coupon at Till

Post period

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SAINSBURY'S AND I2C MAKE PROMOTIONS WORK HARDER FOR LONGER

A 10 week campaign period i2c recommendations

successfully delivered £56k of incremental

revenue for Ryvita, with an additional £17k

generated post period

Instore and targeted media

worked together to drive revenue and

prolonged uplift

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SAINSBURY'S AND I2C DELIVER CATEGORY GROWTH

SUMMARYDemonstrating how high visibility media, combined with targeted channels, can drive customers to the aisle and increase awareness of products and price promotions. Benefiting both brands and Sainsbury’s category.

OBJECTIVES• Increase awareness of Ribena brand

• Grow aisle and brand penetration

• Increase promotional effectiveness

• Drive loyalty to the Ribena brand

RESULTS Over a 19 week campaign and 12 week post period, deploying sampling, entrance gates and coupon at till successfully delivered

£874k

£129kincremental revenueto Ribena

incremental revenue to category

Post

During

Post

During

2%

6%

5%

13%

RIBENA CAMPAIGN DELIVERS INCREMENTAL CUSTOMERS TO BRAND AND CATEGORY

Incremental revenue %

Incremental returning customers

Incremental newCustomers

14k

7k

8k

6k

17k

24k

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SAINSBURY'S AND I2C DELIVER CATEGORY GROWTH

Through increasing penetration of new

customers and driving incremental sales from

returning customers

Ribena campaign generated

£129k of incremental revenue

for Ribena

£874k to the squash and

cordial aisle

• The Sweetshop Extravaganza event Successfully delivered on Customer, Category and Cadbury goals

• The key objectives for Mondelez were to:

• Help Sainsbury’s to generate excitement around the Confectionery Category

• Drive penetration by leveraging taste qualities of Cadbury Dairy Milk

• Increase customer engagement with the Cadbury brand

SAINSBURY’S AND I2C CONFECTIONERY EVENT DROVE SIGNIFICANT VALUE

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The media analysed drove a sales uplift of

4.2% during the campaign period and a further 1.9% post, with a positive return

on investment

Stores with a combination of all

three media drove a sales uplift of

10.1% during the campaign period

Communicating to customers across

multiple touchpoints increases engagement

and uplift

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SAINSBURY’S AND I2C CONFECTIONERY EVENT DROVE SIGNIFICANT VALUE

IN AND AROUND STOREAT HOME

Email Sainsbury’s Magazine

In-store Broadcasting

In-store Sampling

TV WallTrolleys

Nectar Competition BarkerOnline Aisle Fins

Car Park Posters/Banners

KEY TAKEAWAYS

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Sainsbury’s have been driving true

CCR over a sustained period

CPG collaboration has driven

sustainable growth

Customer has become ingrained in strategy and culture

Getting this right can drive

significant business

improvement