Shopper Marketing - January 2016 - 73


the wholesome snacks category ranked
seventh in total sales from a SRFH sales percentage.
n the baby category ranked 16th in SRFH
sales versus 27th in overall sales.
When approaching the retailer and its category managers, brands should come in with
a multichannel strategy and understand that
what might be best to promote in-store may
not be the right thing to promote online, Williams suggests. Comparing brand share by
channel, for example, Williams noted PepsiCo's Gatorade captures higher dollar share
online versus total brand share. "And I will
share with you that there's a specific SKU of
Gatorade that, in one of our highest volume
ShopRite From Home stores, 46% of that one
SKU's volume is done through ShopRite From
Home. Think of the implications of that. When
I start to think about that it's mind boggling."
Sharing Campbell Soup Co.'s portfolio of
top-ranking products on SRFH, Williams noted that a 32-ounce carton of Pepperidge Farm
Goldfish ranks second on SRFH versus 10 in
total rank of the product.
- Cyndi Loza
n

Which Models Will Be Sustainable?

A

ndreas Schulmeyer believes there is no
shortage of great ideas floating around
to make online shopping for groceries a reality these days. The challenge for retailers, CPG
brands and service vendors alike is figuring
out exactly where they fit in, said the founder
and principal at Faultline Solutions LLC. (Prior to that he served as the CFO for Walmart's
global e-commerce business.)
Lately, Schulmeyer has been focusing on

the obstacles to implementation, and he believes that a fundamental question must always be asked: "What is the consumer's purpose for her shopping trip?"
While the "ideal" might be total and routinized home delivery, "we're a long way off
from that," and many of the models in play
strike him as being either ahead of their time
or economically unsustainable. For example,
Ocado, a British online supermarket that has
no stores but two massive warehouse/picking
centers serving the high-density population
area of London, "is making it work, but just
barely. Fresh Direct is making it work inside
New York City. But what's the chance of making this model work in Kansas, or even New
England? Very, very low."
Likewise, Schulmeyer doubts that the Amazon Fresh home delivery model works economically because it has no store base, which
provides scale purchasing. So why is Amazon
investing in Amazon Fresh if groceries remain
a loss leader? "I believe they are trying to get
customers hooked so they'll buy other things
and Amazon can develop route efficiency," he
said. Eventually, Amazon's loss-leader pricing
could create major headaches for traditional
grocery retailers, but he added that Amazon
Fresh does not now seem to be rolling out as
aggressively as previously thought.
"Service models" such as Blue Apron and
Dollar Shave Club pose a special competitive
threat to existing retailers too, Schulmeyer
said. A key part of making grocery shopping
trips work profitably is building up basket sizes with a mix of high- and low-margin items.
What happens if the high-margin items like
gourmet ingredients or shaving accessories
JANUARY 2016 SHOPPER MARKETING y

73



Table of Contents for the Digital Edition of Shopper Marketing - January 2016

Contents
Shopper Marketing - January 2016 - Intro
Shopper Marketing - January 2016 - 1
Shopper Marketing - January 2016 - 2
Shopper Marketing - January 2016 - Contents
Shopper Marketing - January 2016 - 4
Shopper Marketing - January 2016 - 5
Shopper Marketing - January 2016 - 6
Shopper Marketing - January 2016 - 7
Shopper Marketing - January 2016 - 8
Shopper Marketing - January 2016 - 9
Shopper Marketing - January 2016 - 10
Shopper Marketing - January 2016 - 11
Shopper Marketing - January 2016 - 12
Shopper Marketing - January 2016 - 13
Shopper Marketing - January 2016 - 14
Shopper Marketing - January 2016 - 15
Shopper Marketing - January 2016 - 16
Shopper Marketing - January 2016 - 17
Shopper Marketing - January 2016 - 18
Shopper Marketing - January 2016 - 19
Shopper Marketing - January 2016 - 20
Shopper Marketing - January 2016 - 21
Shopper Marketing - January 2016 - 22
Shopper Marketing - January 2016 - 23
Shopper Marketing - January 2016 - 24
Shopper Marketing - January 2016 - 25
Shopper Marketing - January 2016 - 26
Shopper Marketing - January 2016 - 27
Shopper Marketing - January 2016 - 28
Shopper Marketing - January 2016 - 29
Shopper Marketing - January 2016 - 30
Shopper Marketing - January 2016 - 31
Shopper Marketing - January 2016 - 32
Shopper Marketing - January 2016 - 33
Shopper Marketing - January 2016 - 34
Shopper Marketing - January 2016 - 35
Shopper Marketing - January 2016 - 36
Shopper Marketing - January 2016 - 37
Shopper Marketing - January 2016 - 38
Shopper Marketing - January 2016 - 39
Shopper Marketing - January 2016 - 40
Shopper Marketing - January 2016 - 41
Shopper Marketing - January 2016 - 42
Shopper Marketing - January 2016 - 43
Shopper Marketing - January 2016 - 44
Shopper Marketing - January 2016 - 45
Shopper Marketing - January 2016 - 46
Shopper Marketing - January 2016 - 47
Shopper Marketing - January 2016 - 48
Shopper Marketing - January 2016 - 49
Shopper Marketing - January 2016 - 50
Shopper Marketing - January 2016 - 51
Shopper Marketing - January 2016 - 52
Shopper Marketing - January 2016 - 53
Shopper Marketing - January 2016 - 54
Shopper Marketing - January 2016 - 55
Shopper Marketing - January 2016 - 56
Shopper Marketing - January 2016 - 57
Shopper Marketing - January 2016 - 58
Shopper Marketing - January 2016 - 59
Shopper Marketing - January 2016 - 60
Shopper Marketing - January 2016 - 61
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Shopper Marketing - January 2016 - 63
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Shopper Marketing - January 2016 - 72
Shopper Marketing - January 2016 - 73
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Shopper Marketing - January 2016 - 89
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Shopper Marketing - January 2016 - 91
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