DESIGNING BENEFITS
aston kerman krowiak kroetsch
table of contents
introduction
1
differentiation
3
curation
4
services & experiences
5
president’s choice
6
crave more campaign
7
demographics
9
value multipliers
11
what if you never forgot the milk?
12
what if your grocery cart helped plan your meals?
14
what if your groceries offered financial advice?
16
how can grocery shopping help you grow as a person?
18
welcome to loblaws. how can we help you?
20
strategic focus
22
define the future
23
shopping, reimagined
26
meals, reinvented
32
banking, redefined
37
feed your body, feed your soul
42
conclusion
48
bibliography
50
why a grocery store? We chose Loblaws because we felt that they stand to benefit a great deal from the Internet of Things.
Data is the currency of this new economy, and Loblaws is introduction
in a highly enviable position to collect and contextualize mountains of it.
loblaws.
simplify. innovate. grow.
what sets loblaws apart from the competition?
integrated & enriched shopping
affordable luxury
green products
curating experiences
lifestyle branding
ethical sourcing
appeal to foodie culture
quality brands
Loblaws differentiates itself through a number of initiatives. Through these initiatives, Loblaws creates customizable experiences for an educated and enabled consumer base. Recently, Loblaws has begun a shift towards reinventing itself as a lifestyle brand. More and more, food products are being recontextualized as aspirational objects. In this light, grocery shopping can be reconstrued as less of a chore and more of a leisure activity.
Some of the experiences and services Loblaws offers: Available in-store dietician “Guiding Stars” nutrition navigation program President’s Choice “Cooking School” program Healthy brands, e.g. PC Blue Label Partnership with the Canadian Diabetes Association Partnership with Hypertension Canada PC Financial institutions
services & experiences
“It’s the questioning of the status quo that leads to the discoveries of foods and different ways of sourcing foods that is really the DNA of President’s Choice.”
president’s choice
highlight : current “crave more” campaign
WHAT IF ORGANIC WAS A COMMITMENT, NOT JUST A TREND?
Recently, Loblaws has begun an aggressive marketing campaign. By this point most of us have seen the TV spots, showing a pineapple while asking, “Who thought to bite this?� John St. marketing is the creative team behind the advertising blitz, which also included a revamp of the PC.ca website and an increased social media presence. By leveraging existing brand recognition and quality, the PC brand will shift up market. Targeting the food saavy consumer demographic by highlighting quality ingredients and creative and responsible sourcing techniques will buy the brand a lot of good will. As such, a large part of the campaign has been dedicated to showcasing exactly that.
who shops at loblaws?
demographics
Reasons to shop at Loblaws: Proximity President’s Choice Availability Variety of Products Reasonably Priced
Loblaws is currently positioned in the upper middle spectrum of the grocery store landscape, and as such, attracts consumers from a variety of socioeconomic situations. It’s worth noting that Loblaws also operates several discount grocery store chains.
We took a nonscientific poll asking why people chose to shop at Loblaws; the number one answer? Proximity. In other words, people will shop at whatever store is closest to them. As mentioned earlier, Loblaws and the PC brand are in the middle of a shift that will position them within firing distance of the Whole Foods crowd. This move will require true finesse; if PC products and Loblaws stores become too high priced, they risk alienating their consumer base. People will go to a further grocery store if the closest one is more expensive. The PC brand benefits from high quality and brand recognition. Currently, it is already subdivided into some lower cost products, healthier alternatives (PC Blue Label), and top quality products (PC Black Label), so a shift up market while retaining their current base is not infeasible.
value multipliers
WHAT IF YOU NEVER FORGOT THE MILK?
We envision a future where a consumer can simply grab a cart and start shopping without ever worrying about forgetting anything. The cart knows what is placed inside it, and it knows who you are, what you are in short supply of at home, and where to find it. It also eliminates the need to wait in a checkout line, since it creates a running list of everything in it; the consumer would simply confirm their purchase before leaving the store. The only thing the consumer of the future needs to bring with them is their phone: it is their wallet, their grocery list, their compass, and their recipe book.
WHAT IF YOUR GROCERY CART HELPED PLAN YOUR MEALS?
In addition to the aforementioned advantages, the consumer of the future will also enjoy the benefit of effortless meal planning. By simply highlighting a given object in the cart, the consumer will be able to browse relevant recipes based on criteria such as cost, ease, popularity, and healthiness. More than that, the cart knows what you have at home and what you need to pick up to complete the recipe. The consumer is able to bookmark, favourite, upvote or downvote recipes based on their experiences.
WHAT IF YOUR GROCERIES OFFERED FINANCIAL ADVICE?
Loblaws is in the unique position of offering financial services in store. Already, the company is in possession of your bank account and what you spend the most on. Often times when budgeting, it can be hard to see the effects certain expenditures may have on the big picture. Combining this with the previous question, it is not hard to envision a budget filter for your shopping experience. The consumer would not need to enter any information, just select budget as the main criteria against their pre-generated list, and let the cart and the app do all the work. As an example, it may suggest switching to certain brands, showing the consumer the effect such a decision would have over time.
HOW CAN GROCERY SHOPPING HELP YOU GROW AS A PERSON?
Corporate social responsibility can extend beyond the corporation. Through a collaborative feedback loop, both the consumer and the corporation can help to educate one another and collectively improve harmful practices.
did you know that this beef has the lowest carbon footprint in Canada?
is there a better way to source palm oil? tell us about it, we’d love to hear it!
WELCOME TO LOBLAWS. HOW CAN WE HELP YOU?
Loblaws greatest asset moving forward is its ability to collect reams of consumer data. Where Loblaws will truly be able to distinguish themselves is in the opportunity to create a truly unique and fully customizable shopping experience; utilizing the connective and communicative potential of the Internet of Things will allow Loblaws to create a tailored interaction each time a customer sets foot in the store. In asking, “How can we help you,� the inference is that yes, Loblaws is in possession of your spending habits, food preferences, and myriad other information, so what would you like to know? How can we best use this information to help you today? The answer to that question will change on a daily basis.
STRATEGIC FOCUS
DEFINE THE FUTURE.
new horizons, uncharted territory.
By capitalizing on their deep well of consumer data, Loblaws has the potential to change the way we shop, the way we bank, the way we define ourselves as consumers.
In order to shape the future, it must first be defined. The services outlined in the following pages are a glimpse of what the future of the Loblaws experience will be.
SHOPPING, REIMAGINED.
In a future where the line between the physical and the digital worlds has become increasingly meaningless, what does a grocery shopping experience look like? Consumers crave intuitive systems. Part of the reason people shop online is because it is so intuitive and simple – all they have to do is search, add items to their online shopping cart, and pay. Wildly profitable algorithms make suggestions to the consumers based on their purchasing and search history, so the consumer is presented with objects they did not even know they desired.
In this future, the physical experience of grocery shopping will closely resemble that of online shopping. Consumer data will be used to help generate individualized shopping lists based on preferences, purchase history, and household inventory. Every single item in the store will be cross-referenced and hyper-linked, with algorithms capable of suggestions and meal planning. In-store navigation will help guide the customer to their desired items. There will be no need to ever wait in a queue again, since payment will be automatic.
As a busy third-year nursing student, Paul did not have very much free time, and often couldn’t be bothered to make a shopping list. That was why he appreciated the PC Plus app on his phone so much – grocery trips were as easy as grabbing whatever he was running low on and leaving – no lists, no lines.
Paul had been busy with midterms, but could not put off shopping for any longer. His fridge had been reminding him that he was low on most staples: cereal, butter, eggs, milk, bread, cheese, and so on. As he entered the store, his phone entered into conversation with his shopping cart. His shopping cart silently took note of each item placed inside it; each item was added to the list on the display mounted to the handle of the cart and cross-referenced against the list his PC Plus app had generated for him based on his personal inventory.
As Paul made his way to the checkout, he was lost in thought – his Pathophysiology exam was in two days, and he was not entirely prepared. As he crossed the payment area threshold, his phone and the shopping cart’s handle pulsed gently. He looked down at the display. “Are you sure you want to leave before getting milk?” He had forgotten that he was completely out of milk, but Weston hadn’t. After grabbing the milk, Paul returned to the payment area. Paying in the store was as easy and fast as paying online – Paul simply confirmed that he wanted to purchase the items in his cart and payment was automatically debited from his account. With his grocery shopping done in record time, Paul headed home to make some dinner and cram for his last midterm.
MEALS, REINVENTED.
Consumer tastes will be easy to track, and require very little in the way of actual input from the consumer. Loblaws can utilize the data they will collect to provide highly personalized meal planning based on an individual’s preferences and purchase history. Since every item on the shelf will be cross-referenced, it will be easy for the consumer to pick up an item in the store and quickly see what can be made with it. Consumers will be able to create customized shopping lists based on their eating habits or goals; the app will also beable to generate meal plans for a given period and help them find the ingredients they will need.
Since Julius had begun working with his personal trainer, he was coming to realize how important meal planning was to his nutrition and overall health. He had successfully been managing his weight for over a month and a half, and had just made the last meal in his weeklong plan yesterday. He was going on vacation tomorrow, so it didn’t make sense to buy a lot of groceries tonight. However, he still planned on stopping at his neighbourhood Loblaws to grab something for dinner after the gym.
Once he got to Loblaws, he felt the familiar pulse of his phone as it connected to the store. Julius plugged his earbuds in so that he could take advantage of any advice Weston might have to offer. He paused in the butcher department in front of some chicken for long enough that Weston gently spoke up: “Hi Julius, are you looking to make something with chicken for dinner tonight?” “I think so,” Julius replied, “I’m just not sure what yet. Something with chicken thighs though.” Weston promptly got to work. “Okay, I’ve pulled up a number of recipes for chicken thighs; have a look and see if there’s anything you like.”
A teriyaki recipe caught his eye, so Julius selected that and the kale salad Weston suggested would pair well with it. After that, he set out to collect the rest of the items on the list. Weston knew that he already had just enough soya sauce for the recipe at home, which was good, as Julius would have forgotten and grabbed it needlessly. Julius headed to the payment area, confirmed his purchase, and headed home.
BANKING, REDEFINED.
PC Financial already stands out as a service that differentiates Loblaws, one that reveals the innovative core of the company. Now, it offers them an advantage in terms of contextualized data. This makes it easier to provide customized personal services on a large scale. Because they are able to readily track customers’ financial situations and spending habits, Loblaws should be able to offer personalized financial tools to help their customers thrive.
Mary took the last sip of her pina colada. “Garcon? Another one, por favour,� she said to the bartender, who for his part, did his best not to cringe. Mary sighed contentedly and basked in the hot February sun, oblivious to the German tourists snickering at her lackluster Spanish. Mary had been trying to save up for this trip for years, until the PC Plus Smart Shopper app showed her a better way. Before, Mary had been dutifully putting away 5% of her paycheque to an RRSP. Her mortgage payment and condo fees consumed roughly 55% of her pay, and between cable, utilities, car payments, insurance, cell phone bills and groceries, she was often left with less than 5% to put away for a vacation.
Yet here she was on the Mayan Riviera, consuming drinks that were as sugary as they were boozy and tiny-umbrella-garnished. The one variable that had been in her control – the cost of her groceries – had previously required too much effort to save much money. After all, she didn’t have time to search through fliers or clip coupons. She had a RedFlagDeals app on her phone, but most of the time she forgot to look at it.
The Smart Shopper app took care of all of that for her. Mary didn’t have a newer fridge that could generate a shopping list for her, but she was still able to create a grocery list inside the app. After that, the app took over, automatically searching for the cheapest brands and creating her new list for her. Then, when she had finished shopping, the app would not only show her how much money she had saved, it would automatically transfer that difference from her chequing account straight into her PC Financial Interest Plus Savings Account. No fuss, no muss. The Smart Shopper app had been keeping track of her progress, and once her financial goal had been reached, she booked the first plane ticket she could.
FEED YOUR BODY, FEED YOUR SOUL.
If Loblaws is intent on positioning themselves as a more cost-effective alternative to Whole Foods, they cannot focus on quality and freshness alone. There is an intangible element to the Whole Foods ethos; the consumers who go out of their way to pay a premium to shop at Whole Foods do not simply have more discerning tastes. Rather, consumers are paying for the knowledge that the food they purchase there is more ethically cultivated and environmentally responsible.
In short, people shop at Whole Foods because they want to feel good about the purchases they make. By empowering their customers to make more informed decisions, Loblaws will be helping them to grow as people. Giving consumers more agency and a sense of curating their own lives will help Loblaws gain legitimacy amongst this demographic.
To her chagrin, Brooke realized she had missed the local famers market by a day when she checked her phone. She was busy trying to plan her contribution to a dinner she was hosting on Thursday. The theme for the night was to be “glocal” foods – globally diverse recipes using local ingredients. Her disappointment quickly passed as her mind turned to the Loblaws down the street – it had become increasingly impressive over the past year and a half. Brooke jotted down a tentative shopping list in her smart Moleskin notebook, which was connected to her PC Plus app. Before heading to the store, she grabbed some reusable hemp shopping bags.
Her phone gently vibrated in her purse as she passed through the threshold of the store, confirming that it was connected to the store. Her first stop was the organic section of the produce department. Brooke paused at some beets, which had been on her list. There were two different kinds of beets, and as Brooke contemplated the price difference, she remembered that her PC Plus app’s AI, Weston, was helpful in these situations. Based on her list and proximity to the beets, Weston had already pulled the information for her as she unlocked her phone: by buying the slightly more expensive beets, Brooke would be supporting a newly opened family farm 25 km away. Feeling good about contributing to the growth of a larger sustainable infrastructure through her everyday decisions, Brooke places the beets in her cart.
As Brooke placed the final item for the borscht recipe the app had suggested to her, vegetable oil, in her cart, Weston’s gentle voice came through her earbuds. It seemed that this item was running low in the Loblaws food bank. That the vegetable oil is on special is a bonus, so Brooke buys an extra 5 more for the food bank. Weston happily informed her that the items in the food bank go directly to local families who come to shop at the store. Furthermore, Loblaws will donate the dollar amount of goods she contributes to local initiatives and charities. Her donations have double the impact, and it feels more authentic than donating money anonymously through a charity. Brooke leaves the store feeling lucky to have contributed to her area in such a meaningful way.
simplify. innovate. grow.
conclusion
The key to realizing the vision of the future as laid out on these pages is already built into Loblaws’ core. The three simple words in their motto: simplify, innovate, and grow, perfectly encapsulate the services described above. By using consumer data to make people’s lives a little easier, Loblaws sets itself apart from the competition. By embracing innovation, Loblaws stands to capture tremendous market share. It is not a secret that grocery stores are host to a veritable wealth of consumer information. After all, that was the whole raison d’être for Air Miles cards. In the coming years, Loblaws will need to work hard to carry forward the momentum they are currently generating with their rebranding. Loblaws is essentially sitting on a goldmine, but they need to discover unique and innovative ways to mine that gold. There is strong incentive for Loblaws to invest in this technology now in order to truly be an industry leader. All Loblaws has to do to confirm that services such as these would give them an enormous competitive advantage is look inwards. Three simple words: simplify, innovate, grow. Welcome to Loblaws. How can we help you?
Chung, Matthew. “Future-transforming Ideas: Smart Shopping Carts and Vaults.” Strategy Online. August 20. 2014. Web. November 5. 2014. Haynes, Megan. “In the Aisles With Loblas’s Uwe Stueckmann.” Strategy Online. July 15. 2013. Web. November 5. 2014. Nguyen, Mai. “Loblaw’s ‘Crave More’ Campaign Aims President’s Choice at Foodie Culture.” Canadian Business. September 18. 2014. Web. November 4. 2014 Shaw, Hollie. “Loblaw to Test New Health Store Concept, Take on Whole Foods as Grocery Battle Heats Up.” Financial Post. National Post. July 11. 2013. Web. November 5. 2014 “Loblaws Introduces An Innovative Program to Help Shoppers Make Healthier Choices.” Guiding Stars. August 3. 2012. Web. November 4. 2014 “Reinventing Loblaws” Weston. N.D. Web. November 4. 2014
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