Sprouts Farmers Market Digital Campaign Strategy

Farmers MarketSprouts

| Borowski | Helms |MKTG 4805 Introduction to Digital Marketing | Daniels College of Business

BH Digital -- Digital Campaign Brief

Farmers MarketSprouts 2

Agenda Section 1: Situation Assessment

Section 2: Campaign Goals

Section 3: Campaign Tactics

Section 4: Campaign Planning

Section 5: Campaign Tracking

Sprouts Farmers Market


Section 1: Situation Assessment



Neighborhood grocery store With an old fashioned farmers market feel

Bright and friendly stores with quality products at great valuesAnd friendly, knowledgeable team members to help you make healthier choices in your budget.

•Fastest growing retailer in the US•Headquarters in Phoenix, AZ•160 stores in 8 states•14,000 employees

OverviewCompany

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Mission: Healthy Living for Less

Vision: To create a hybrid between a natural foods store, a farmers market and a conventional supermarket, and as such provide a low-pressure, easy-to-shop, highly affordable steppingstone to better eating

Mission and VisionCompany

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Social Responsibility – Food Rescue Programs– SCRIP Fundraising – helping non-profits raise money – Community Events– Volunteerism– Walk now for Autism Speaks– Grab ‘n give Holiday Food Drive

Increasing Business Intelligence•Just became publicly traded in August – doubled price in first day•Merchandise Analytics from Manthan Systems

aggregate retail data from multiple sources so that merchandises, marketers, and everyone else can access a single application to gain insights regarding business performance quickly and easily

With an old fashioned farmers market feel

Bright and friendly stores with quality products at great valuesAnd friendly, knowledgeable team members to help you make healthier choices in your budget.

•Fastest growing retailer in the US•Headquarter in Phoenix, AZ•160 stores in 8 states•14,000 employees

GoalsCompany

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Young Singles

20-35 years oldMost price sensitive segmentHighly connected online and on mobile

FamiliesPrimarily mothers Searching for the best valueActive online and via email

Environmentally Conscious College educatedHighly informed segment looking for qualityResearch and fact check online

Customers


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HEALTH AND PRICE CONSCOIUS


Young Singles

Kroger Co.King SoopersSafeway

FamiliesTrader Joe’sSafewayKing Soopers Fresh Fare

Environmentally Conscious Whole FoodsNatural Grocers Farmers Markets

Competitors


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BY SEGMENT

Competitive Trends


Competitors

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Porter’s 5 Forces

[high start up cost and complicated supply chain]

[readily available alternatives with low switching costs]

[educated consumers]

[variability of products and seasons]



PEST Analysis

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SWOT Analysis


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“In a Nutshell”

Free monthly email newsletter sent to registered customers. Can sign up on website. Contains coupons and e-news updates.

257,711 likes

Well updated and active community interaction/posts on page. However, low number of likes compared to Whole Foods (1,405,000).

6,321 followers

Personalized responses to followers and daily tweets. Instagram is connected to feed. Very low following compared to Whole Foods (3k).

www.sprouts.com

Confusing homepage for navigation, but excellent use of online coupons and promotions for in-store. Links to Facebook and Twitter pages with option to “like”.

Slide 1 of 2

Digital Marketing Programs

E-News Facebook Twitter Website


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3,400 followers

Mostly photos of store products, liked to Twitter account. However, no mention on website or Facebook page and not many likes per photo.

2,381 Followers

27 boards of recipes, seasonal produce, and food infographics. However, no mention of existence anywhere but a link from their Facebook page. Also hard to search- can’t find from searching “sprouts” alone (need Sprouts Farmers Market).

Continued

Digital Marketing Programs

Instagram Pinterest


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Section 2: Campaign Goals



To increase loyalty in current consumers, by creating brand advocates and ultimately growing the company’s consumer base.

Target Audience: Families, primarily mothers, searching for the best value and are active online and via email.

Strategy: Create a loyalty program, rewarding customers for faithful consistency in shopping at Sprouts via discounts, sales, promotions, events, etc., including benefits for referring new members to the program.

Loyalty and GrowthCampaign Goals

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Mother of two young children

Suburban, ages 30-45

Julie

Primary shopper in household

Smartphone owner, digitally savvy

Concerned w/price and qualityWants to provide for her family with the peace of mind that she is delivering the best quality groceries at the best price.

Target Persona

Feed Denver: Urban Farms & Markets

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Natural Grocery Industry

Positioning Map


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Health Conscious

Low Health Conscious

Low Cost High Cost

Sprouts

Farmers’ Markets

Kroger Co.

Safeway

Trader Joe’sKS Fresh Fare

Whole FoodsNatural Grocers


“Live Healthy for Less”

We offer the HIGHEST QUALITY of groceries at PRICES

comparable to or less than your everyday grocery store.

Sprouts Farmers MarketValue Proposition

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Online Value PropositionCampaign Messaging

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Mobile/online hub for loyalty program:• Scan phone at checkout• Automatic Foursquare check in• “Brand ambassador” title for high engagement

Program Benefits:• Points accumulated for purchases in store, referrals, and number of visits, etc.

• List/shopping features with coupons• Special promotions

Resistance:• Takes more effort for amount of savings


Section 3: Campaign Tactics



To increase loyalty in current consumers, by creating brand advocates and ultimately growing the company’s consumer base.

LOYALTY AND GROWTHCampaign Goal


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“Sprouts Club”Description: Create an easy use loyalty program that gives members exclusive access to:•Special discounts and in-store sales on marked items•A mobile app that includes: list making, recipe ideas and suggestions, customized store maps, nutritional info and in season produce.

Rationale: Creating loyal consumers will ultimately create brand advocates, in turn increasing awareness of Sprouts.

Tactic 1

Creation of Loyalty Program

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Description: Introducing “Sprouts Club” to shoppers and gaining members by:•Hosting a booth with greeters at the entrance of all stores for “Membership Month,” providing food samples and iPads set up for easy sign up•QR codes located on sale item displays linking to the sign up page to give customers another touch point•In-store promotional banners, fliers, brochures, floor decals, displays•Webpage re-design to promote program on homepage

Rationale: By increasing shopper awareness of the loyalty program Sprouts will gain members.

Tactic 2

Marketing Sprouts Club

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Description: The Sprouts Club Referral Program will provide mutual benefit for club members and Sprouts when members refer friends to the loyalty program. Members will receive “seeds” or membership points which accumulate to gain them rewards and Sprouts will gain new (loyal) customers.

Rationale: This program increases Sprouts’ customer base, loyalty, and overall profitability.

Tactic 3

Implementing Referral Program

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Welcome BoothFor awareness and initial sign up in store

On and Offline

In-Store PromotionAdvertising in-store to promote program

QR CodesPhysical codes in-store lead to the online sign up on website

Integration


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Wireframe: Homepage



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WIREFRAME: MOBILE LANDING PAGE


Section 4: Campaign Planning


Farmers MarketSprouts‘Sprouts Club’

Project Plan


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Farmers MarketSprouts‘Sprouts Club’ Media

Schedule


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Expenses to support tactics– Financing for talent acquisition in terms of technological

development – Financing for marketing efforts and in-store promotional tactics

• I-Pads• Membership Cards • Banners/Hanging Signs • Window Decals• Sign-up Tables

Required Sources – Hire from within or acquire new talent for task force who will

carry out all aspects of the project– Acquire an expert to create the technology for the Loyalty &

Referral Program – Employ extra labor involved in promotional activities

Financial Considerations Budget

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Communication PlanKey Stakeholders

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Investors & Board of Directors• Present and explain the project plan • Emphasize sales, profit and ROI increases • Take responses and suggestions into account

Employees & Suppliers • Incentivize employees to give customers a reason to be loyal• On-going training about the program and the benefits to the organization

• Show how the projected increase in sales at Sprouts transfers into profits for suppliers too

Customers & Community • Promotional and marketing efforts will explain all benefits of the Program

• Community will be given the opportunity to become more involved as consumers


Lack of Understanding

Mitigations of “Sprouts Club”

Underperformance “Sprouts Club” does not obtain the increase in sales to overcome the costs of the program

The Program is not well received among customers causing Sprouts to lose significant capital to development and implementation

RisksExclusivity BackfiresConsumers who do not sign up for Program may stop shopping at Sprouts because they do not receive the same discounts


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Use of DataNot collecting the right data and/or not using the collected data to the organization’s advantage


Transparency of Program

Fully explain the ease of signing up for the Program – No requirements, no restrictions, no hidden fees.Back-up PlansProduce several “back-up” plans in terms of marketing and promotion - Need several different methods for obtaining members

Addressing Risks

Test The TechnologyDevelop and test the technology to make sure it records and analyzes the data driven by the Program - Know in advance how the data will be used

Feed Denver: Urban Farms & Markets

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Section 5: Campaign Tracking



Key Performance Indicators


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Metric Quantitative Qualitative

Activity

- # of New Members- # of Referrals- # Download of Apps- # of Social Media followers &

“Likes”

- Distribution of referrals per customer - Positivity/negativity of social media interaction - App Rating Survey

Interactivity

- # of Lists Made- # Discounts redeemed- # Store Visits- # Seed Points Received - Geographic tracking of app use (in-store versus out of store)

-In Store Surveys-Social media-Customer satisfaction according to employees-Buzz generated around member events and promotions

Sales

- % Change in monthly sales- % Change in inventory turnover and product spoilage - % Change in returned products

- Employee Morale- In-store satisfaction poll- Corporate wellbeing- Shopper testimonials posted in-store


Membership Month

May Dashboard


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Total Conversions Conversion Rate

# of Non-referral New Members

1,282,500 282,150 22%

# of Referred New Members

67,500 51,638 76.5%

# of App Downloads

333,788 313,761 94%

TOTAL 1,683,788 647,549 39.5%


We recommend the creation of “Sprouts Club” in order to grow loyalty, create

brand advocates and expand the company’s consumer base.

By offering additional benefits to the typical customer experience, this loyalty program will ultimately

encourage a new buying behavior that is beneficial for all parties involved.

Conclusion


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1. Develop the task force that will be involved in the project, including the talent for the technology portion

2. Conduct research and develop the timeline to make the project a success

3. Begin to equip all stores with promotional material

The Next Steps


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Date post:	12-Jan-2015
Category:	Business
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