Shopper Marketing - August 2018 - 42

SPECIAL REPORT

42

Kroger Precision Marketing (KPM)

SHOPPER MARKETING AUGUST 2018

Assets and Capabilities
n

Kroger Precision Marketing officially launched in the fall of 2017. Dedicated
new KPM teams were still being formed as of late spring. The new structure
consolidates Kroger's ad platforms under the KPM banner while seeking to
expand and improve targeting capabilities through the use of first-party data.
Kroger and its 84.51 subsidiary are now partnering to enable digital advertising
for suppliers on Kroger's digital properties, including Kroger.com and its other
banner sites, the retailer's mobile app and Kroger emails. New products enable
suppliers to communicate directly with Kroger shoppers using 84.51 targeting
and personalization science.

Keys to Success

Be prepared for budgeting challenges. As a more

" You have to be able to
think more holistically
about working with
Kroger, but you
also have to
understand the
value of all the
individual assets
and levers that
you can pull. We're
putting significant
resources behind
KPM so we are
going to work very
hard to make sure it
succeeds."

integrated entity than previous Kroger ad platforms,
KPM stands to impact how marketers budget funds for
shopper programs. "This may now be a challenge for
marketers, as they may now need to shift funding to
dedicate marketing efforts to a specific retailer, thus
losing some control," says Steve Abdo, senior vice president of client services and Kroger team leader at Epsilon Catapult.
KPM could put further pressure on manufacturers to
break down traditional silos by blurring the lines between
trade, shopper and media spending. "The up side is that,
from Kroger's point of view, I can talk to your shoppers
in a more intimate way and tell you whether or not they
bought," says Abdo.
Rebecca Campbell, who oversees
digital and e-commerce programs as
shopper marketing manager at Hormel, says that it's important for marketers to communicate KPM's capabilities internally to get buy-in on various
programs, particularly if shopper
funds now have to be redirected from
national marketing budgets.
"You have to be able to think
more holistically about working with
Kroger, but you also have to understand the value of all the individual
assets and levers that you can pull,"
says Campbell. "We're putting significant resources behind KPM so we are going to work very hard to make
sure it succeeds."

Test, learn and adjust KPIs. Since many of the tools

Rebecca Campbell, Hormel Foods

About the
Sponsor

under KPM are new, marketers may need to establish
new parameters for measuring campaign performance
and ROI. Campbell says she has been using a white
board during planning sessions with KPM to outline all
of the permutations of available tactics. She is going
into programs from a vantage point of needing to "test,
learn and adjust" to figure out what works best for different brand initiatives.
For example, to drive trial for a new product launch
under the Herdez salsa brand, Hormel is using several
KPM tools to target a specific subset of households
within the Kroger shopper base. "We wanted to come

n

n

n

n

Targeted digital coupons on the banner sites and
the mobile app with customizable offer values
and coupon types.
Targeted email modules within Kroger multisubject emails that reach 11 million-plus
customers weekly.
Banner website ad placement: An ad block on
the Kroger.com department pages in which ads
will be personalized using 84.51 science.
Banner website brand pages: Dedicated brand
pages (e.g., Kroger.com/"SupplierName") as a
place to showcase brand content and serve as a
destination for other media.
Sponsored product recommendations on
banner.com and the mobile app within search or
any product carousels (e.g., Start My List).

at this from several different angles," says Campbell.
"We've been going back and forth with KPM to figure
out the best ways to build awareness and drive traffic
to Kroger."
Marketers should think broadly about their return
on investment from KPM programs, adds Abdo. "A lot
of this activity can't be judged solely on a two-week
sales lift because we're building more brand equity with
some of these tools. Programs are going longer. Spending should be viewed through a broader lens and ROI
metrics adjusted for each scenario - whether it's a digital coupon informing Kroger shoppers about a product
improvement through a targeted email module or driving them to a brand page with recipe content."

Stay engaged as new tools are introduced. Kroger

has been frequently updating its KPM portfolio and
will likely introduce new tools in the weeks and months
ahead. Its latest offering, boosted search within Kroger.
com, was unveiled in June and described as follows:
"Brands will have the ability to promote their online
assortment with Product Listing Ads (PLAs) through
the KPM platform by balancing cost-per-click bid pricing, customer relevancy and in-flight performance optimization. Native product integration will take SKUs
appearing within search results, or within relevant categories, and feature them in high visibility slots for the
customer."
CPG brands, particularly those in commoditized categories, may find value in tools like boosted search and
brand pages on Kroger.com as a way to stay top of
mind with consumers. The brand page offering is a onetime cost for the year and allows the marketer to refresh
the page up to four times per year. "It makes sense for
the marketer with a portfolio of brands that wants to
change things up seasonally or deliver content such as
recipes for an always-on play," says Abdo.
Campbell says that it has been challenging to keep
pace in the new environment but sees the ongoing evolution with KPM as an opportunity to build deeper relationships with Kroger. "Things are evolving very quickly.
It is literally changing by the day."

Epsilon Catapult is a comprehensive global marketing innovator with a best-in-class practice in shopper
marketing. Our unrivaled data intelligence and customer insights leadership combined with our world-class
technology including loyalty, email and CRM platforms and data-driven creative, activation and execution create
the best possible solutions and growth for our clients, their retail partners and shared shoppers in the marketplace.
We curate personalized marketing to consumers across offline and online channels, during their moments
of interest, that help drive business growth for brands. Epsilon employs over 8,000 associates in 70 offices
worldwide. Epsilon is an Alliance Data company. For more information, visit www.epsilon.com and follow us on
Twitter @EpsilonMktg.


http://www.Kroger.com http://www.Kroger.com http://www.banner.com http://www.Kroger.com http://www.epsilon.com

Table of Contents for the Digital Edition of Shopper Marketing - August 2018

Contents
Shopper Marketing - August 2018 - Intro
Shopper Marketing - August 2018 - 1
Shopper Marketing - August 2018 - 2
Shopper Marketing - August 2018 - Contents
Shopper Marketing - August 2018 - 4
Shopper Marketing - August 2018 - 5
Shopper Marketing - August 2018 - 6
Shopper Marketing - August 2018 - 7
Shopper Marketing - August 2018 - 8
Shopper Marketing - August 2018 - 9
Shopper Marketing - August 2018 - 10
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