Delivering for the brand and the bottom line

In grocery retail, it typically takes 12 months for customers who do not normally shop in a store to recognise a change in pricing. As such this campaign was expected to deliver long-term perception changes, rather than short-term effects. However after just two bursts of activity from April-September, the campaign has already delivered immediate and impressive success.

Distinctive

Our campaign achieved a 144% increase in attribution and 78% increase in recognition against Co-op norms, and this with just a 4% SOV during the campaign period.

Credible

The insightful approach not only delivered distinct value orientated communications, but has in fact strengthened VFM associations so that Co-op now lead the convenience sector when it comes to VFM perceptions (fig.4).

Impactful

Econometrics goes further to demonstrate how the campaign helped to immediately accelerate reappraisal on price perceptions, with actual price elasticity improving from +0.61 to +0.67 after only two bursts of campaign activity (fig.5).

Alongside perception and reappraisal shifts, the campaign also delivered a significant contribution to the bottom line; with the overall campaign generating £52.2m in incremental revenue at a RROI of £6.75 (fig.6).

Furthermore the campaign has worked to increase frequency of visits (fig.7), with 82% of the £52m incremental revenue coming from additional visits; a clear indication that the barrier of price has started to erode.

This campaign ran amidst the most brutal retail price war for a generation, for a brand with a tiny share of voice, intended to address a long-standing perception problem over a period of years. Yet in its first six months it has improved price elasticity, driven additional transactions and returned over £50m of additional revenue at an RROI of £6.75. All while reminding customers of the unique everyday role The Co-op plays in their lives.

With the data revealing that our greatest opportunity to shift price perceptions lay with these everyday items (products that were coming down by just a few pennies) we felt empowered to take a bold decision in our approach to creative.

We decided not to reference price reductions at all.

Instead we would hero and celebrate these seemingly mundane, everyday products.

Because these are products that, as demonstrated by the data, play a hugely important role in people’s lives.

They have a striking emotional potency and an extraordinary ability to bond families across the UK together.

In fact, the only ordinary thing about these iconic products was the price; giving us our strategic platform of ‘extraordinary products at ordinary prices’.

So whilst bacon may not seem all that powerful when still on the shelf, once it hits the frying pan and begins to crisp up, it assumes the ability to raise the most stubborn teenager from his bed. Equally bread may not seem much in its naked form, yet when toasted and buttered it has the power to mend last night’s unresolved argument.

The creative demonstrates that that even when faced with the challenge of hard-nosed price messaging, it is possible to use data to innovate and unlock an insight that delivers distinctive, creative and effective brand building communications.