digital merchandising for deli and bakery

Digital Merchandising for Deli and Bakery

A special research reportprepared for IDDBAby Brick Meets Click

© 2015 IDDBA, Digital Merchandising for Deli and Bakery brickmeetsclick.com 2

Contents

INTRODUCTION|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||3

ABOUT THE STUDY ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||6

WHAT DOES OMNICHANNEL MEAN ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||7

DIGITAL MERCHANDISING ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 10

ROADMAPS FOR THE NEW PATH TO PURCHASE ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 12

PRE-PURCHASE ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 13

ORDER AND PURCHASE ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 17

FULFILLMENT |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 19

POST-PURCHASE |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 21

CONCLUSION |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 25

GETTING STARTED ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 26

5 STEPS TO SUCCESS ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||| 27

IDEA GALLERY, DIGITAL EXAMPLES FROM THE RETAIL WORLD |||||||||||||||||||||||||||||||||||||||||| 29

IDDBA promotes the growth and

development of dairy, deli and bakery

sales in the food industry through

training, education, research and

other member services.

Brick Meets Click provides guidance

to companies that want to enhance

their growth strategies by leveraging

the convergence of digital and

physical retail.


IntroductionToday most deli and bakery merchandising takes place inside the store — but for consumers, more and more of the shopping experience takes place outside the store in the digital realm (often even when they are inside the store). This report is about how deli and bakery departments can embrace digital merchandising to grow their business.

A lot is at stake. Successful deli and bakery departments are traffic generators, so growing these departments is good for the entire enterprise — and shoppers are shopping around. More than a third of each store’s primary shoppers actually prefer to go to another store to do their bakery and deli shopping.

PART 1 ASKS AND ANSWERS SOME IMPORTANT QUESTIONS:

• What’s the meaning of omnichannel?

• How does digital merchandising apply to traditional deli and bakery merchandising?

• What does the path to purchase look like today? And where are the opportunities for digital merchandising?

PART 2 DESCRIBES HOW TO GET STARTED. IT INCLUDES:

• A 5-step process for getting started

• An Idea Gallery that shows how other retailers are using digital to improve the shopper experience


Today’s answers won’t work as well tomorrow. Shoppers are thinking very differently about food these days and their behavior will continue to be fluid and dynamic and driven by need states and shopping occasions. In addition, the competition is moving fast to eliminate its rivals’ advantages. In London, for example, Whole Foods‘ marketing position is being tested now that other retailers also offer sustainable food and local products. They now match competitive pricing to more fully engage their shoppers.

WHERE SHOPPERS SAY THEY BUY MOST OF THEIR SPECIALTY FOOD,

BY CATEGORY

Source: IDDBA, Engaging the Evolving Shopper, 2014

BAKERY

DAIRY

DELI

PREPARED

SPECIALTYCHEESE

SPECIALTYMEATS

stay in primary store migrate to preferred store in category

36%

26%

37%

40%

50%

38%

64%64%64%

74%74%74%

63%63%63%

60%60%60%

50%50%50%

62%62%62%


DIGITAL CONNECTIONS INCREASE IN-STORE NET

PROMOTER SCORES

Shoppers with 3 digital connections to their grocer were almost twice as likely to recommend the store as those with a single connection. Shoppers with 6 connections were more than three times as likely.

Source: Brick Meets Click, Six Degrees of Digital Connections, 2013

Important competitors are already “speaking digital.”Competition for the business traditionally served by deli and bakery is also heating up outside of other supermarkets. Foodservice operators like Subway are direct competitors for custom-made sandwiches, and Starbucks is probably the largest bakery in the world today. Such competition has always been around, but now many of these competitors have stepped ahead of supermarkets in using digital tools to communicate with and serve their shoppers. But, supermarkets can catch up.

TWOONEZERO FOUR FIVE SIXTHREE

NPS INDEX (100) = ZERO CONNECTIONS

3X

0

50

100

150

200

250

300

350

number of connectionsN

PS IN

DEX

About the studyIDDBA commissioned Brick Meets Click to do research on omnichannel retailing, specifically digital merchandising for delis and bakeries. The research for this report was conducted in February and March 2015. It involved four steps.

1. Review of available research. To understand how shoppers shop deli and bakery

and how they use digital tools in grocery shopping. This included the IDDBA Report Engaging the Evolving Shopper: Serving the New American Appetite and the Brick

Meets Click report Six Degrees of Digital Connections.

2. In-store shopper observation. Observation of several hundred bakery and deli

department shoppers in 15 stores in the Chicago and Minneapolis/St. Paul markets.

Banners included Whole Foods, Mariano’s, Ultra, Lunds and Byerly’s, Meijer, Jewel,

Caputo’s, Cub and Kowalski’s. Particular attention was paid to:

• Charting the shopper’s journey and noting where points of friction occurred; e.g. waiting time, problems with communication, etc.

• Identifying potential opportunities to deliver digital merchandising messages.

• Observing ways that these retailers have already begun to use digital to improve the customer’s shopping experience.

3. Gather examples of digital activity. Survey digital communication and merchandising

currently being used by supermarkets, restaurants and foodservice operations to

improve shopper experience.

4. Evaluate and prioritize examples. Select those that have good potential for improving

the shopping experience in deli and bakery to develop recommendations that can be

used by retailers who are just getting started, and examples of digital merchandising

executions that can be used by all retailers.



This is our favorite definition of omnichannel, because it has three dimensions:

1. Shopper insightsThis dimension is about retailer learning. The digital footprints that shoppers leave as they use omnichannel tools generate valuable data and insight on their preferences and behavior. It’s a gold mine of information for retailers who will use it to continually improve their offering and competitive strategy. The retailers who first grasp this aspect of omnichannel will be the ones who compete most successfully.

2. Shopper engagementThis dimension is about two-way communication. Today shoppers can reach out in all direc-tions for information, guidance, opinion and logistics that help while shopping. Retailers need to be visible in the places where shoppers are looking for help and inspiration.

3. Shopper transactionsThis dimension is about the actual sales transaction. Omnichannel retail breaks down silos. Online marketing and merchandising may generate in-store sales and in-store marketing and merchandising can spark online sales. Actual purchase transactions and fulfillment can — and do — happen in lots of different places. Omnichannel retail supports them all.

Omnichannel, n.

A digitally powered progression of retail that delivers a consistent, seamless experience to shoppers across all sales channels and communications touchpoints. It provides retailers with a valuable source of information on the preferences and behavior of individual customers, multiple opportunities to communicate with shoppers and personalize offers and many options for fulfilling shopper purchase intent.

What does omnichannel mean, anyway?

The move to omnichannel requires retailers to shift their focus from products — features, price, and inventory — to the outcome of the shopper’s experience that results from buying or using the product. This expands the focus to include how well the product fits into and improves the lives of consumers, and it means the retailer can’t really know how successful they are until they’ve understood what’s been called the “absolute value,” i.e., the value generated during the shopping experience and during use/consumption.1 How do we get there? One important step is breaking down the walls that exist in most organizations so that all the effort is focused on delivering the best possible value from experiencing the product.

Omnichannel Shopper Engagement

1Absolute Value: What Really influences Customers in the Age of (Almost) Perfect Information, by Itamar Simonson and Emanuel Rosen, Harper Collins, 2014.


SOCIALMEDIA

CIRCULAR(print & digital)

E-RECEIPTS

MOBILE

PAYMENTS

ONLINE

ORDERING

E-MAIL

DELIVERY

KIOSKS

VIDEOS

WEBSITE

MOBILE

APP

TEST SMS

FOCUS

ON

CUS

TO

MER EXPECTATIONS & EXPER

IENCES

DEPARTMENT COUNTER

GOAL: A seamless experience

& increased sales

OMNICHANNEL SHOPPER ENGAGEMENT

SHOPPER ENGAGEMENT

• process improvement

• immersive shopping experience

• consistent pricing and communications

• two-way dialog/ shopper feedback

• predictive business intelligence

• data mining

SHOPPER INSIGHTS

responsive • delivery

payment • options

flexible •ordering

SHOPPER TRANSACTIONS



Digital merchandisingMerchandising is the art of promoting the sale of products by the way they’re presented. In-store merchandising mainly involves visual displays along with variations in selection, packaging, pricing and timing, all intended to encourage shoppers to buy more.

Digital merchandising has the same goals as traditional merchandising but several charac-teristics set it apart and, in some cases, make it even more effective:

• It’s more flexible. It’s easy to change digital pictures and other content without using additional store labor.

• It’s more accessible. It’s available to shoppers all the time and wherever they are — at home, at work or on the go (this includes inside the store).

• It doesn’t have the shrink that comes along with merchandising perishable products because the physical products are replaced with digital images.

• It provides data on shopper behavior that contains insights into how shoppers are shopping and what they’re looking for.


Digital doesn’t replace in-store merchandising, it builds around that center, greatly expanding the opportunities for deli and bakery departments to capture shoppers’ interest and influence their purchasing. Online and mobile experiences have raised shopper expectations about merchandising content.

But, don’t confuse the content you need with tools and platforms you use to deliver them. Decide what information is important to deliver to your shoppers before you chose among platforms and tools.

TRADITIONALStore displaysCircularsPhone orders

DIGITALWebsitesDigital circularsMobile appsEmailText/SMSSocial mediaOnline orderingKiosksEcommerceeReceiptsVideo

TOOLS AND PLATFORMS

CONTENT MARKETINGSTORIES ABOUT MY FOOD

COLL

ECTI

ON

S

ABILITY TO

LIKE/SHARE/PIN

FAQS/USAGE TIPS

PRODUCT REVIEWS

& RECOMMENDATIONS

RECIP

ES

MEAL IDEAS

CUST

OMER EXPECTATION

S

DIGITAL MERCHANDISING OPPORTUNITIES

TRADITIONAL MERCHANDISING


Roadmaps for the new path to purchaseThe path to purchase doesn’t look like a path very much any more. In fact, digital technology has added so many alternate routes to get from desire to destination that we decided a series of arcs better illustrated the range of traditional-to-digital experiences available to shoppers — and to retailers. Each one focuses on a key part of the path to purchase. Done well, the first and last phases are closely related, so the path can actually be thought of as a circle.

Four Opportunity Areas

We observed four big opportunity areas as we visited the deli and bakery departments of more than 10 retail banners to prepare for this report:

1. Moving shoppers towards a purchase decision before they come to the store.

2. Prompting additional purchases with new digital devices that make ordering/purchasing faster and easier

3. Making it easier to get your products by aligning with Click & Collect, a local delivery service and/or using a self-service dispenser.

4. Encouraging shopper feedback and conversation to increase engagement and boost return trips.

1

43

2

PRE-

PURCHASEORDER & PURCHASE

FULFILLMENTDELIVERY &

POST-PURCHASE

DEPARTMENTCOUNTER


1

Pre-purchase — information gatheringWhat’s the occasion? Which flavors, brands, prices? How much? The first part of the journey is about learning what products are available and choosing where to shop for them. Many purchasing decisions are made before shoppers ever set foot in the store. Fortunately, the pre-purchase phase is particularly rich in opportunities for deli and bakery departments to expand shoppers’ awareness of their offers.

Traditionally shoppers have gotten ideas on what to buy and serve from newspapers, magazines, cookbooks, and friends and family. Some get ideas from going out to eat. The printed circular has been the main way they learn about sales. Digital merchandising opens up a whole new range of opportunities for retailers to communicate ideas and detailed product information that will make shoppers feel comfortable about the choices they’re making – and to learn more about what shoppers want.

P2P Phase 1


OPP

ORT

UN

ITY

To move shoppers toward a purchase decision before they come to the store

Make learning about new products easyIn traditional merchandising, physical space limits display opportunities, and information about product origins, ingredients and nutritional value is confined to product labels, signage and conversation between shoppers and knowledgeable store associates. Another pre-purchase challenge is that often deli and bakery items may not be recorded on shopping lists, so make it easy to add them. Use digital merchandising to offer:

• Collections — groupings of relevant products

• Product recommendations — this goes with this

• Meal ideas — ideas not recipes

• Recipes – the details

• Content merchandising — stories about product origins and information about ingredients and nutritional value

Platforms/tools used most often: Websites, apps and email. (Product suppliers will often share content they’ve developed.)


Make searching for products easy Recipe sites typically allow users to search by ingredients, dish type or meal type. Similarly, deli and bakery search functions should make it easy for shoppers to search by:

• Product type

• Brand

• Key ingredients (like low sugar, gluten free, organic)

• Type of event or meal occasion

• Daypart (breakfast, lunch, dinner, snacks)

Digital tools: Website and app search functions

Communicate reasons to buy nowSavings and store event promotions that were once confined to the weekly circular and store signage can now be changed as frequently as needed. And, if the retailer has shopper purchase histories in their loyalty program, these can be targeted to the shoppers who will be most likely to respond. Use digital to:

• Offer short-term price promotions (right down to the time of day)

• Offer loyalty shoppers coupons and promotions on the items they buy most often

• Promote new items to loyalty shoppers based on their purchase history

• Promote seasonal/special events

Digital tools/platforms: Email, apps, websites, social media pages, text/SMS (opt-in only).

Inside-the-store digital can also

move shoppers toward purchase

commitments. Starbucks kiosks help

shoppers choose the coffee that’s

right for them, and coupon kiosks

incent shoppers to “buy now!”

IN-STORE DIGITAL

INFLUENCERS


HOW DO GROCERY SHOPPERS USE

SMARTPHONES?

CHECK INGREDIENTSFOR RECIPES

CHECK SHOPPING LISTS

DOWNLOADMOBILE COUPONS

LOOK AT DIGITALAD CIRCULAR

READ A PRODUCT REVIEW

COMPARE PRICESBETWEEN COMPETITORS

CHECK PRODUCTNUTRITION INFO

percent of shoppers with smartphones

45%45%45%

41%41%41%

32%32%32%

31%31%31%

20%20%20%

16%16%16%

16%16%16%

Source: Brick Meets Click, Six Degrees of Digital Connections, 2013


2

Order and purchase Customer definitions of convenience and service are changing and one of the places this shows up most clearly is in the order and purchase segment of the path to purchase. Digital capabilities open up many more possibilities for how, when and where shoppers can order and pay for their purchases.

Immediate consumption and eating on the go are both growing behaviors, and supermarket deli and bakery are well positioned to serve these shopper occasions. They have a great reputation for price and quality — but they need to up their game when it comes to awareness, speed and convenience if they want to improve against the competition.

For the time-starved at lunch hour or the working mom on her way home, being able to bypass the need to speak with a clerk and wait for the order to be prepared can be the deciding factor in where to shop.

P2P Phase 2


OPP

ORT

UN

ITY

To prompt additional purchases by making ordering/purchasing faster and easier

Reduce or eliminate wait timeAdvance ordering online can allow shoppers to swoop in, pick up their purchase and pay — and if shoppers can pay in advance or at least avoid having to go through the regular checkout line, it’s also a big plus.

In-store kiosks These can allow shoppers to browse what’s available in the department and make decisions — at their own pace — about what they want to buy, and avoid the pressure of having to communicate it to the person behind the case.

Improve communicationsIn-store observations revealed several areas where communications can be enhanced by:

• Making it even clearer to shoppers what’s available and/or on sale by using:

• Digital menu boards

• Digital screens, either standalone or as part of the scale system

• Taking some of the confusion out of getting a number by using new digital number dispensing/displaying systems.

• Alerting shoppers that their orders are ready using text/SMS messages.


Delivery and fulfillment

Today, shoppers are exposed to a lot of options when it comes to fulfillment of their orders. Beyond the traditional “checkout and carry home,” they can order in advance (now online as well as by phone) for pickup at the store or non-store location, or for delivery. And subscription services supply automatic replenishment.

Aided by digital tools, fulfillment opens up three particular opportunities for deli and bakery:

• The potential to pick up online orders at stores or alternate sites (Click & Collect and Drive).

• The potential to partner with the delivery services that exist in most markets.

• The opportunity to offer subscription services that “take the pressure off” of meals.

P2P Phase 3

3


OPP

ORT

UN

ITY

Make it easier for shoppers to get your products

Click & Collect and Drive The Click & Collect option enables shoppers to order online and pick up at the store. With Drive, online orders are picked up at a non-store fulfillment location.

Delivery partnershipsAdding a delivery option — via Instacart, Uber, Postmates.com or one of many local delivery services — can expand the reach of deli and bakery departments to a larger number of shoppers.

Subscription services Prepared foods are playing a bigger and bigger part in meals served at home, especially for Millennials who are willing to outsource cooking. Deli and bakery departments are well positioned to serve this need, if they are willing to give it a try.

Businesses like Plated and Blue Apron are delivering complete meal kits for home preparation; for the shopper, it means no decisions, no shopping, just cooking. These services are a new type of competitor. They are delivering solutions for problems like “what to serve for dinner,” and their rapid growth signals that some consumers see this as a valuable service. Food retailers will want to decide whether or not to serve this segment of the business.

Deli departments are candidates for capturing some of this business. Sometimes the best meal solution of all is just to take it off the mind of shoppers entirely. Here are some subscription offers we’d like to see: “Life is tough enough: Sign up for a month of Tuesday night meals! Pick up or delivery, your choice.” And, “Make Wednesday’s dessert night. You subscribe, we surprise!”


Post-purchase

The post-purchase stage is the place to reinforce positive experiences and build momentum for the next round of purchases. Store websites and social media pages (especially Facebook and Pinterest) are powerful platforms for accomplishing this.

P2P Phase 4

4


OPP

ORT

UN

ITY

To increase engagement and boost return visits by encouraging shopper feedback and conversation

Leverage peer support for buyingWord of mouth is probably the most powerful marketing tool of all, and digital merchandising hugely expands this opportunity. Give your shoppers opportunities on social media pages like Facebook and Pinterest to:

• Post reviews, recommendations and tips

• Rate content and products

• Share their experiences

Build awareness for events, new products and specialsSocial media pages are also places to let shoppers know what’s happening in the deli and bakery. Hyper-local digital communities exist in many communities. Retailers should look for opportunities to take part in these.

Use purchase histories to personalize email and eReceipt offersThese are perfect opportunities to suggest “If you liked this, you may be interested in…”, to deliver relevant coupons and to point to special events that match the shopper’s interests.

Don’t forget to listen!Don’t underestimate the value of listening to your shoppers talk to each other about you. It’s a rich source of intelligence you can use to sharpen your appeal.


Mary was an enthusiastic Mariano’s

customer from the day the store

opened, and she soon linked up with

its Facebook page. That’s where she

learned that Mariano’s was going to

display and cut a large wheel of

Parmesan cheese imported from

Italy — the only one like it in the US.

For Mariano’s, the Facebook

announcement started a steady

stream of customer questions,

comments and trips to the store.

For Mary, it opened an entirely new

way to engage with the store. Now

it’s her favorite way to keep up

with Mariano’s special event

announcements.

MARIANO’S AND FACEBOOK

SOCIAL MEDIA BY THE

NUMBERS

Source: Pew Research Center, Internet Project Survey, July-September 30, 2013 (n+5112 Internet users ages 18+)

ALL INTERNET USERS 18+ 73%

Men 69%

Women 78%

AGE

18-29 90%

30-49 78%

50-64 65%

65+ 46%

RACE

White, Non-Hispanic 72%

Black, Non-Hispanic 73%

Hispanic 79%

HOUSEHOLD INCOME

<30K per year 77%

30-49.9K per year 73%

50-74.9K per year 73%

>75K per year 75%

HOUSEHOLD LOCATION

Urban 76%

Suburban 72%

Rural 70%

% who use social networking sites


WEEKLY USERS OF SOCIAL MEDIA

SITES

FACEBOOK

YOUTUBE

TWITTER

PINTEREST

GOOGLE+

INSTAGRAM

total boomers (50-74)millenials (18-35)

63%63%

73%73%73%

81%81%81%

24%24%

38%38%38%57%57%57%

12%12%

22%22%22%32%32%32%

9%9%

17%17%17%27%27%27%

11%11%

16%16%16%20%20%20%

4%4%

15%15%15%31%31%31%

Source: IDDBA, Engaging the Evolving Shopper, 2014 (n=869 total; n=393 Millennials 18-35; n=245 Boomers 50-74)

CONCLUSIONThe growth of digital communications and omnichannel gives retailers a way to bring together the physical and virtual worlds of shopping. It’s also a way to strengthen ties with shoppers. Done well, it’s like going “back to the future” of personal service where the retailer not only knows their shoppers, but is trusted to make recommendations that fit their personal needs.

Omnichannel gives shoppers the means to shop when they want from wherever they are, and this sometimes means not going to the store. In this environment, retailers need to extend their merchandising and service skills into the digital world. This requires devoting “supervision” to the expanded playing field and adding the skill sets necessary to communicate effectively there.

Despite all the emphasis on digital, this is not about technology. First and foremost it’s about changing the way you run your business so you can be successful in an omnichannel world where digital merchandising is a more important part of the mix.

• At minimum, it’s necessary to take the steps that ensure that you’re in the game from the shopper point of view.

• The bigger opportunity is to create a “go to market” strategy that sets your business apart from the competition and delivers more of what your target shoppers are looking for. Using digital to make the in-store experience worthwhile is a big part of the picture.

The competition of the future could

look a lot like Yummy.com — a retail

outlet specifically built and sized to be

both a store and a depot for ecommerce

deliveries, rather than a brick-and-

mortar retailer with a digital overlay.

Shoppers use it both ways, including

for immediate consumption products,

and the business is designed from

the ground up to be profitable by

combining the two types of transactions.

THE COMPETITION OF THE FUTURE


brickmeetsclick.com 26

Getting Started5 Steps to Success

Idea GalleryDigital examples from the retail world

© 2015 IDDBA, Digital Merchandising for Deli and Bakery

brickmeetsclick.com 27© 2015 IDDBA, Digital Merchandising for Deli and Bakery

For retailers just starting to build omnichannel relationships with their shoppers, here’s a five-step process to follow.

Identify the occasions and/or product categories that you “own.”These are the things your shoppers tell you that you’re really good at. Start here, so you’re building on a strength. It could be cakes or custom-made sandwiches. Then:

• Write a short paragraph about why you are good at it.

• Take some great photos to show how good you are.

Pick the digital channels that best support the message you want to communicate.• This could be Facebook, Pinterest,

YouTube, Twitter or maybe even

Instagram.

• Use a blend of text, photos and/or videos to communicate the message. The headline needs to grab attention and deliver the solution to a need, like: “See the great cakes that are available for your special day” or “Here’s a sandwich you’ll want to try.”

1 25 Steps to Success


Create ongoing three-month plans that include two to three communications per month; review learnings quarterly and incorporate those insights in the next 3-month cycle. This will keep content fresh and establish a regular flow shoppers can depend on. Plus, it enables you to learn from what your shoppers are responding to.

Use the appropriate lead-time for the product or occasion you’re highlighting. Seasonal cakes need to be showcased several weeks before the special holiday, for instance, but new lunch menus can go out that morning. Services like Hootsuite let you put your digital marketing plan in place and be brought up at specific dates.

Make sure you deliver on the promises made.If your shoppers are “more than satisfied” they’ll become raving fans.

3 4 5


To illustrate the four opportunity areas, we gathered these examples to show how other retailers are using digital to:

P2P Phase 2: Order and purchase

Prompt additional purchases by making ordering/purchasing

faster and easier.

P2P Phase 4: Post-purchase

Encourage shopper feedback and

conversation to increase engagement and

boost return trips.

P2P Phase 1: Pre-purchase

Move shoppers towards a purchase decision

before they come to the store.

P2P Phase 3: Delivery and fulfillment

Make it easier to get your products with click and collect, a local delivery

service or self-serve dispensers.

Idea Gallery



OPPORTUNITY AREA: Move customers toward a purchase decision before they come to the store.

Product information Offer detailed product information in an engaging way. Applegate Farms uses video to make it easier for consumers to understand the story of their products and to strengthen relationships between their brand and customers.




Meal Solutions Solve the “what’s for lunch” problem. Lunds and Byerly’s helps customers decide what’s for lunch with their Pinterest page.




Meal Solutions Dorothy Lane Markets invites customers to indulge with their killer brownies or come in for their famous deli sandwiches.



OPPORTUNITY AREA: Prompt additional purchases by making ordering/purchasing faster and easier.

In-store Kiosk Panera has shortened wait time and increased order accuracy with in-store kiosks that also create multiple up-sell opportunities.




Mobile App (New revenue opportunities) Wawa uses a mobile app to reduce order time for custom-made sandwiches and strengthen their relationships with customers.




Mobile App (Improved transaction speed) Starbuck’s order and pay app eliminates the wait in line to place the order and promotions are offered easily to customers on their mobile phones.




In-store Communications McDonald’s is experimenting with various kiosks to meet higher expectations for service and to communicate more effectively with customers. On the right, the kiosk enables self-service with the added benefit of table delivery. On the left, the device lets guests customize their order.




In-store Communications Festival Foods uses a new digital numbering and line management system. The system actually calls out numbers, as well as showing them on the screen.



OPPORTUNITY AREA: Make it easier for customers to get your products.

Fulfillment Options - Delivery Local food delivery services have popped up in many markets. Consider partnering with services like Postmates and Grubhub so your customers have a delivery option.

POSTMATES.COM GRUBHUB.COM



OPPORTUNITY AREA: Make it easier for customers to get your products.

Fulfillment Options - Self-service Consider some of the new self-service dispensing options like Cupcake ATM, to make it easier for customers to get the product.



OPPORTUNITY AREA: Encourage shopper feedback and conversation to increase engagement and boost return trips.

User Sharing - YouTube Voodoo Donuts taps into the energy of customer-generated videos about products they love. This video was viewed by more than 65,000 people.




User Sharing - Pinterest Tap into local influencers. This person uses Pinterest to share her passion for party platters and other food. With many followers, she’s an opportunity to learn from and to share with.




User Sharing - Reviews Social media and company websites Reviews and ratings can have a lot of impact on the business, so it’s important to track them and respond whenever possible. Lunds invites feedback right on their website. It’s also important to monitor social media platforms like Yelp.


© May 2015 International Dairy•Deli•Bakery Association™ 636 Science Drive, Madison, WI 53711-1073 Phone: 608-310-5000; Fax: 608-238-6330 Email: [email protected]; Web: www.iddba.org

Digital Merchandising for Deli and Bakery

A special report prepared for IDDBA by Brick Meets Click

The information presented in this report has been compiled from sources and documents believed to be reliable.

However, the accuracy of the information is not guaranteed, nor is any responsiblity assumed or implied by the

International Dairy•Deli•Bakery Association™.

ISBN 978-0-9882033-5-8

digital merchandising for deli and bakery

Documents