Dairy brand Arla Foods is farmer owned, with nine out of every ten pints produced by the brand coming from its farmers.
Operating since the 1880’s in Sweden and Denmark, the firm now has farmer owners in seven European countries. Its brands include Arla Cravendale, Arla Skyr and Arla Protein.
The firm has seen significant success, with a revenue of €15.1 billion (£13 billion).
Sarah Oxley, lead shopper marketing senior specialist at Arla Foods explains how the firm’s retail marketing strategy has contributed to its success.
Arla Foods’ retail marketing strategy is focused around retail activations, according to Oxley.
She says “It’s a key part of how consumers experience our brands and ultimately nudges shoppers to conversion. It’s also an important way we build relationships with our retail partners.
“What’s changing is how far that can go beyond the shopping mission. We’re testing how retailer data and media can work harder at other parts of the consumer experience, making sure it’s cost effective as part of the wider marketing mix.”
However, the firm has been adapting its strategy and using more offsite activity to drive “consideration and reach new audiences”.
She says: “The pace of innovation in-store is exciting, we now have the opportunity to connect with consumers in a much more joined-up way when they’re actually in a shopping mindset, which is ultimately where it matters most.”
She adds that retail media allows the firm to be much more targeted. One example she gives is of a campaign Arla Foods recently ran which focused on increasing purchase frequency.
Oxley says: “There are also some interesting gamification mechanics emerging from retailers which we’re testing. It’s early, but it’s a good example of how engagement is evolving beyond just traditional formats.”
“There are different levels of data maturity across the market. Where we have access to strong first-party data, we absolutely lean into it. Where that isn’t available, we flex, using things like geography, store performance or category insights, as we always have. But there’s an opportunity for more consistency and depth of data across the market, which would help unlock more value.”
Creative is becoming a much bigger factor in helping brands stand out within a retail media environment, especially as stores become more “digitised”.
She says: “We see creative as the next “event horizon” for the retail environment. For us it’s about strong, clear messaging and pushing creative where we can, but also really understanding the retailer’s strategy and how we fit into that.
“The goal when activating in store is always helping to achieve our branded ambitions and support the retailer deliver their strategy.”
She adds that its marketing strategy has the biggest impact when brand comms, retail activity and promotional activity comes together.
Oxley says: “It should feel like one connected experience, just adapted to the moment they’re in. There’s still more to do as an industry to make retailer data easier to integrate to branded activity, particularly in terms of consistency and collaboration.”
She explains that measuring success of campaigns beyond sale metric is one of the biggest challenges marketers face.
Arla Foods works closely with its marketing teams and agency teams to try and get a better view of how retail market contributes to the brands success beyond just short-term sales.
However, there needs to be more consistency and rigour in the data and reporting coming from retail media networks as that’s a key part of highlighting key investment areas, according to Oxley.
The brand had learnt that retail media can be a very “versatile lever”. It drives short term sales, but also has a role in building the brand and strengthening Arla Foods relationship with retailers.
She says: “When you get the balance right – data, strategy, creative, execution – it can create campaigns that stand out and that people and our retailers notice, which is ultimately what we’re aiming for.”
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