The summary outlines a plan to revamp Kroger's ClickList advertising strategy to target millennials and increase usage among current Kroger customers. It proposes developing inspiring social media content on Pinterest and Facebook to showcase recipes. Personalized retargeting emails would promote discounts and recipes using customers' purchase histories. An integrated mobile experience would allow adding items to a ClickList order directly from recipes. The goal is to increase ClickList usage by 15% through this $700k integrated marketing campaign emphasizing information, awareness, and inspiration.

2. ➔ The Kroger Brand
➔ What is Clicklist?
➔ The Analysis
➔ The Plan
➔ The New ClickList
➔ Campaign Budget
➔ Defining Success
➔ References
Overview of Content

4. History of Kroger
The first store
opens at 66 East
Pearl Street in
Cincinnati, Ohio.
1883 With 40 stores and
$1.75 million in
annual sales, The
Kroger Grocery and
Baking Company is
incorporated.
1902
Kroger operates
5,575 stores, the
most in its history.
1929 Kroger becomes the
nation's second-largest
food retailing company.
1979
Kroger merges with
Dillon Companies, Inc.
and begins a new era as
coast-to-coast operator
of food, drug and
convenience stores, and
the manufacturer of
more than 4,000 food
and non-food products.
1983 Kroger introduces
its 1-2-3 Rewards
MasterCard. This
card can be used
to earn free
groceries, as well
as savings on
products in
Kroger’s family of
stores.
2004
Kroger is named
“Retailer of the
Year” by America’s
Second Harvest for
the 5th time in 7
years.
2007

5. Kroger Brands Value Statement
“Build lifetime, loyal Customers with our differentiated, preferred brands to
become the primary reason customers drive past our competitors to shop at
Kroger”

6. Market
Opportunity:
Revamping the advertising strategy
for ClickList to leverage Kroger’s
core competencies and increase
consumer awareness can result in
Kroger being ahead of the
technology innovation curve and
leading the industry in the
development of online grocery
shopping.

7. What is Clicklist
● Online grocery ordering service from Kroger
● Allows customers to order and purchase online & pick them at Krogers
● Costs $4.95 for regular orders and $7.99 for expedited ones
● Prices shown today may differ at the time you receive your order

11. Current Clicklist Ad Campaigns
● “Personal Shopper”
○ 8 National Airings
● “Dog Wash”
○ 2 National Airings

12. Current Advertising Analysis
Advertisements placed
within ineffective
channels
Lack of ClickList
integration across
channels
Low social media
presence

13. SWOT AnalysisSWOT
● Rising competition from
Walmart online ordering
● Amazon entry with whole
foods
● Technology
advancements
● Timesaving
● Product
recommendations based
on past purchases
● Links kroger card with
account
● Saves grocery list online
● Add notes
● Easy couponing
● Fill online survey- earn
you fuel points
● Free delivery beyond
certain order
● Delivery in few hours, no
lag-time
● Referral scheme like
walmart (earn $10 on
each referral)
● Relies on employees to
select fresh products
● Out of stock items, visit
later to pick them up
● Clicklist doesn’t work
great on mobile
● Available only in few
stores
Strength Weakness
Opportunities Threat

14. Climate
- All grocery stores are facing
challenges due to deflationary
environment and intense competition.
- Sales at restaurants and bars are
meeting or exceeding retail sales at
grocery stores.
- E-commerce for groceries is growing,
but there is still a need for brick and
mortar stores.

15. Identified Opportunity
● Online grocery
shopping is growing
category, Kroger wants
to be ahead of the
curve
Source: Statista 2017
Online Grocery Shopping Sales in the USA from 2012 to 2021
(in billion USD)

16. ● Increase use of
ClickList among
current Kroger
consumers
● This framework will
guide all advertising
strategy and
campaigns
Source of Volume
Strategy
RetentionAcquisitionEarnShare
Stimulate
Demand

17. Competitors
Amazon Fresh
✓ Vast user base and distribution
capabilities from Amazon
✓ Fresh food selection and quality from
recently- acquired Whole Foods
✗ Small quantity of brick and mortar
establishments
✗ Less quality mobile interface with no
recipe integration
✗ Higher prices
Walmart Pickup Grocery
✓ Lower prices
✓ Large number of brick and mortar
establishments
✗ Less quality mobile interface with no recipe
integration

18. Kroger Competitive Advantage
Kroger has an immense
amount of information on their
consumer’s past purchases
and has consistent brand
loyalty tied to Kroger’s strong
brand equity. Furthermore,
ClickList already has an
impressive mobile base that
can be easily integrated.
These are advantages that
Kroger can leverage in future
brand offerings.
Average percentage of Kroger brands purchased

19. Target Segment:
Millennials

20. Why Millennials?
● Millennials want more diversity on their food choices but
have no time to look for them.
● Millennials search for food options online & look for
authentic ingredients.
● Millennials are willing to spend more in food, especially
if they perceive value on their choices.
● Most foodies culture of all - People are more food-
obsessed than ever and cook less than ever.
● More open to specialty, online, and bigbox channels;
and less loyal to brands and retailers.
● 39 percent report primarily buying their groceries online.
● Most importantly, Millennials are grocery shopping
less and less, and Kroger needs to secure this group
of consumers before they exit the category
completely

21. Rising Trend of Online Grocery Shopping by Generation

22. Source: Nielsen

24. STP Analysis
Segmentation:
Demographic(Age)
Positioning-
● Pick Up
Convenienc
e
● Trusted
Brand
● Extra
Features
Online
Targeting-
Millennials already
going in store for
grocery shopping
STP

25. Objective of Advertising Campaign
● Increase awareness
of function and
value of ClickList
● Increase usage of
ClickList among
current Kroger Plus
Card holders by 10%

26. Campaign Plan
Increase trial and adoption
of ClickList to 15% of
regular Plus Card users
End Goal:
Target: Millennial Kroger Plus
Card users who are not fully
aware of ClickList benefits
Plan: Utilization of
available KPC customer
data and usage of
targeted e-marketing
Strategy: Retargeting
current consumers
through email
Strategy: Increasing
awareness of features
through revitalized social
media campaign
Message: ClickList is
easy to adopt, with
lots of features to
improve your life and
make grocery
shopping easier
Increase trial and adoption
of ClickList among current
KPC holders by 10%

27. Integrated Marketing Communication
● Integration of ClickList across social media
and advertising channels will help to
effectively and efficiently raise consumer
awareness and ability to try to the service by
making it easy to go from learning about the
product to interacting with it
● Hashtags will help consumers participate in
the conversation, and help Kroger keep track
of consumer feedback
● This strategy leverages Kroger’s
relationship with its consumers and
knowledge of their purchase habits
#My o r k
#My i k
#Kro l s

28. Brand Persona
-

30. The cultivation of an attractive and
inspiring Pinterest with a function
that allows followers to add items
from a posted recipe to their
ClickList cart will encourage users
to try new recipes and use
ClickList as the easy tool for
e-grocery shopping.
Creation of Inspiring Pinterest
Overview of Proposed ClickList Campaign
Utilization of the immense
amount of Kroger customer data
available to ClickList will be used
to send Plus Card holders
personalized suggestions and
recipes to encourage their
adoption of ClickList.
Retargeting via E-mail
To facilitate the new ClickList
campaign, the company needs
to integrate their ClickList
website with the Kroger Board
to Table app, facilitating single
click recipe-based grocery
shopping for users.
Revived Mobile Experience
Short videos showing the simple
preparation and cooking of easy
recipes will inspire viewers to try
new cuisines and meals. ClickList
will be positioned as the easy
way to buy these ingredients and
facilitate users’ branching out into
new food.
Production of Weekly
Easy Recipe VideosIntegrated
M
obile
Experience
Video
Production
Pinterest
R
etargeting
C
am
paign

31. Revamped recipe-driven
mobile experience
Step 1: Find
inspiring recipes
in a graphic,
Pinterest-like
mobile
experience.
Step 2:
Reference and
review saved
recipes in an
organized
manner.
Step 3: Add
items by recipe
directly to
ClickList.

32. New Social Media Content with
ClickList Integration
Get these ingredients in time for dinner with
ClickList!
krogerclicklist

33. Facebook/YouTube Videos
- Weekly themed videos on the Clicklist Facebook page, showing
the preparation of easy meals and snacks could inspire viewers
to then try the recipes, facilitated by adding all ingredients with a
single click on ClickList
- Could also be used as ads, streamed on Youtube

34. Retargeting via Email
● Modernize the personalized mailed Kroger coupons to target millennials with
emails that include discounts and recipes utilizing their regularly purchased
products. This online channel also makes it easy to integrate a “Add to
ClickList” feature directly within the email, incentivizing the consumer to try
the service

35. Campaign Timeline
Short-Term
● The messaging of the advertising
campaign focusing on information and
increasing awareness is a short-term
strategy. As ClickList matures, the
messaging will also adjust
Long-Term
● The social media pages are a long-term
investment that will continue to be
developed and updated

36. Estimated Campaign Budget
$500,000
Sponsored Instagram Posts Budget
$200,000
Facebook Ad Budget
*Costs estimated for an 8 week campaign
Total:
$700,360
$3,000
E-mail Retargeting Labor Costs
$960
Social Media Intern Pay
Facebook and
Instagram Ad Budget
$70,000
Fee for Ad
Agency

37. Defining Success
- Metrics to be measured
- What defines success
- Measure of Success: Increase usage of ClickList among current users by 15%

38. References

39. ● http://ir.kroger.com/Cache/1500099541.PDF?O=PDF&T=&Y=&D=&FID=1500099541&iid=4004136
● https://www.sec.gov/cgi-bin/viewer?action=view&cik=56873&accession_number=0001558370-17-002198&xbrl_type=v#
● http://academic.mintel.com/search/?q=food&go=
● http://news.gallup.com/businessjournal/201587/grocery-stores-aren-meeting-millennials-needs.aspx
● https://www.sec.gov/Archives/edgar/data/56873/000155837017002198/kr-20170128x10k.htm