On a recent episode of Time For a Reset Marketing Podcast: Insights from Global Brand Marketers, brought to you by CvE Marketing Consultancy, host Paul Frampton connects with Jack Johnson, Head of Ocado Ads at Ocado Retail, UKs popular and preferred online grocer.
Jack highlights Ocado’s unique position as a leading online-only grocery retailer, emphasising their innovative use of data and flexible advertising solutions. He stresses the importance of moving away from legacy retail media strategies and advocates for a “test and learn” mentality. He shares insights on their groundbreaking “MPDLab” initiative and how Ocado’s comprehensive data approach sets it apart from competitors.
“We need to stop recycling past strategies. Too often, brands fall back on what worked before instead of innovating. We need a ‘test and learn’ mentality to drive real growth with retail media.” Jack Johnson, Head of Ocado Ads
The Need to Step Away from Cookie-Cutter Strategies
The discussion opens with a critical question: What should be reset? Jack’s answer is both refreshing and challenging. He advocates for breaking free from the cycle of repeating past marketing plans that have outlived their effectiveness. Too often, brands cling to familiar strategies that have yielded success in the past, stifling innovation and growth.
Instead, he calls for a “test and learn” mentality, encouraging brands to explore uncharted territories to drive creativity and effectiveness in their media strategies. This approach is not just a theoretical ideal but a core principle at Ocado, where innovation is prioritised to enhance customer experiences.
Ocado’s Unique Position
Johnson elaborates on Ocado’s distinctive position as the world’s largest online grocery retailer, functioning entirely online without the overhead of physical stores. This model offers Ocado an unparalleled selection of over 33,000 products, significantly more than traditional supermarkets. Partnering with Marks & Spencer and Waitrose for online grocery delivery further enhances Ocado’s value proposition, giving customers access to high-quality products and services.
The COVID-19 pandemic tested Ocado’s operational resilience. Johnson highlights how the company swiftly adapted to surging demand for grocery delivery, solidifying its reputation for exceptional service during challenging times. This adaptability has positioned Ocado as a leader in online grocery retail.
Revolutionizing Product Launches Through Innovation
Central to Ocado’s strategy is introducing the MPDLab, a groundbreaking initiative designed to facilitate rapid product launches. Jack explains that MPDLab allows brands to test new products and promotions within a controlled segment of Ocado’s customer base. This method provides valuable insights while minimizing the complexities typically associated with product launches in brick-and-mortar settings. The ability to experiment in a low-risk environment accelerates innovation and helps brands refine their offerings before broader deployment.
Data-Driven Flexibility for Brand Growth
Data is the lifeblood of modern retail, and Jack underscores Ocado’s commitment to harnessing it effectively. Unlike many competitors that rely on loyalty programs for insights, Ocado captures 100% of customer purchase data across its platform. The closed-loop measurement approach enables brands to access granular results on their marketing efforts, allowing for informed decision-making.
Ocado’s advertising options are diverse, ranging from search placements to coupons and product sampling. Johnson emphasizes that flexibility is critical to their approach, ensuring that brands of all sizes can engage with Ocado Ads in a way that meets their unique needs.
Looking Ahead: The Future of Retail Media
As the conversation unfolds, Jack shares his vision for the future of retail media. He firmly believes that online growth will continue to dominate the retail landscape, and brands will increasingly shift their focus to online engagement. This transformation presents exciting opportunities for Ocado, positioning it as a pivotal player in the evolving retail media ecosystem.
However, he also acknowledges the challenges ahead. He notes the fragmentation within the industry and the pressing need for standardisation in measurement practices. This standardisation is essential for the success of retail media networks and will require collaboration and incentives across the industry.
The Evolving Role of Retail Media Leaders
Leadership in retail media requires a specific skill set, and Johnson outlines three core attributes necessary for success:
- Influence Across the Organization: Leaders must be able to engage and motivate various stakeholders, aligning their objectives with broader company goals.
- Curiosity and Understanding: A genuine desire to understand the intricacies of retail operations is vital for effective decision-making and strategy development.
- Resilience: The ability to navigate challenges and setbacks is essential in the fast-paced world of retail media.
Jack also stresses the importance of clear communication. As a leader, he is committed to refining his ability to articulate media and marketing concepts in relatable terms, ensuring that the entire organization understands the value of their work.
Wrapping Up: Embracing Change for Growth
The episode wraps up with reflections on the ongoing evolution of the retail media landscape. Paul and Jack acknowledge the exciting opportunities for brands embracing innovation and adaptability.Key Takeaways
- Embrace Innovation: Brands must move away from recycling past strategies and adopt a “test and learn” mentality to foster creativity and drive real growth in the retail media landscape.
- Leverage Data Effectively: Ocado’s unique position as a fully online grocery retailer allows it to capture comprehensive purchase data without relying on loyalty programs, providing valuable insights that enhance advertising effectiveness.
- Future of Retail Media: The retail media landscape is rapidly evolving, with a significant shift towards online engagement.
Curated Episode List
If you enjoyed this episode of Time For a Reset: The Marketing Podcast with Global Leaders, here is a curated list of our top episodes packed with insights guaranteed to inform and inspire you!
- The Retail Media Reality in UK vs. US: AI, Collaboration, and Innovation: Insights from Leaders at Boots, Tesco, Nectar360, and Ocado [Link]
- How Data and AI Are Shaping the Future of CPG Marketing with Melanie Huet of Newell Brands [Link]
- Can AI Replace the Mad Men? Reinaldo Padua from Beliv Shares Insights on CPG Marketing’s Future [Link]
You can read the full transcript episode here.
