Tops Markets MKT 561 - Emerging Media Group Presentation Assignment - - PDF document

Tops Markets MKT 561 - Emerging Media Group Presentation Assignment Amanda DeRoo, Eric Scafetta, Kevin Huggins, Stephanie Rathbun

Situational Analysis Marketing Problem TOPS has a problem. The days of the thriving neighborhood market are coming to an

• end. Smaller, community-based grocery stores like TOPS are being pushed out by

larger chains like Wegmans and Trader Joe’s, hypermarkets like Walmart and Target, and online retailers like Amazon. Mobile and digital are changing the way that consumers are shopping for groceries, and TOPS has failed to adapt. Larger hypermarkets are able to leverage their pre-existing customer base and offer them the convenience of the all-in-one shopping experience by adding grocery to their stores. The larger grocery chains are modernizing stores to offer a more premium shopping

• experience. The TOPS brand in comparison looks dated and out-of-touch with today’s

grocery consumer. TOPS’ History TOPS’ origins can be traced back to the early 1920s when Italian immigrant Ferrante Castellani opened his first grocery store, Great Bear Market, in Niagara Falls, NY. Ferrante’s sons, Armand and Alfred, eventually took over the business and opened two more stores. In the 1950s Armand joined up with Thomas Buscaglia, owner of the T.A. Buscaglia Equipment Company, to form Niagara Frontier Services. Seeing an opportunity to capitalize on the growth of the modern day supermarket, the two men partnered with a group of independent grocery store owners and in 1962 opened their own 25,000 square-foot supermarket in Niagara Falls. They dreamed of creating the best possible shopping experience, so they decided upon the name TOPS, which in the 1960s was slang for “the best”. Over the 1970s and 1980s, under the leadership of Armand Castellani and Savino Nanula, the brand thrived. The company expanded into the Rochester area, and by the end of the 1980s the first Pennsylvania location opened.

In 1991 TOPS was acquired by Ahold, a major international food retail conglomerate based in the Netherlands. In 2001, TOPS formed an alliance with Giant Food stores, a fellow Ahold company, based in Carlisle, PA. That structure remained in place until 2007 when Ahold announced that they would sell TOPS Markets to Morgan Stanley Private Equity. In the fall of 2007, then president and CEO Frank Curci, led the deal that returned TOPS Markets back to local operation. In 2010, TOPS acquired The Penn Traffic Company, a deal which resulted in TOPS bring 64 new stores into its family. In July 2012, TOPS announced its purchase of 21 Grand Union Family Markets stores. In November 2013, six members of TOPS' executive team, led by now Chairman and CEO Frank Curci, purchased the company from Morgan Stanley Private Equity, returning TOPS back to complete local ownership. Currently, TOPS is headquartered in Williamsville, NY, operates 173 full-service supermarkets, and employees over 15,000. History of the Market Unlike a generation ago, today’s grocery market needs to cater to the sharp rise in demand for healthier, organic, food options. The priority has shifted from convenient, microwavable, processed meals to fresh, nutritious, premade meals that can take the place of a home cooked dinner for busy parents. As larger retailers like Walmart and Target drive down prices, more consumers have access to healthier foods that were

• nce out of their reach financially. This is driving up demand for these foods in the

market. Another trend occurring in the market is the rise in specialty and premium shopping

• experiences. Wegmans is a great example. Wegmans stores have a high-end, modern

aesthetic and include several specialty shops within the store—serving premade meals, desserts, gourmet coffee, and more. The most significant and disruptive change in the grocery market however, is the rise of digital, mobile, and most importantly, online shopping. More and more shoppers are

incorporating technology into their grocery shopping—from online shopping lists, digital coupons, and in-store promotions, to click-to-collect and total online shopping and delivery. Product Consumer The grocery industry and its consumers are evolving. Today’s grocery buyer wants a premium shopping experience, in a modern, up-scale store. They want healthier

• ptions, and the convenience of pre-made meals. They also want to leverage

technology to make shopping easier—taking advantage of online shopping lists, digital coupons, click-to-collect, and more. As more options available, consumers are basing their shopping decisions less on brand loyalty and more on price. They place less importance on supporting their neighborhood market and more on saving time and money. Marketing Objectives In order to survive in today’s crowded and evolving grocery market, TOPS needs to retain is current loyal customer base by protecting its image as a friendly neighborhood grocer, while at the same time gain new market share by investing heavily in the emerging digital and mobile platforms that their competitors are using. The first step in achieving these goals is to build brand awareness within the communities that have TOPS stores. This should serve as a reminder of what current customers love about TOPS—their commitment to their customers, the friendly and inviting shopping experience, and the convenience of local shopping. It should also serve as a way to differentiate TOPS from the large, impersonal, national grocery chains. Next TOPS needs to make a major investment digital and mobile platforms. This will help gain back lost market share from online retailers and show TOPS customers the dedication to innovation that was so crucial to the growth of the company. TOPS needs

to offer the same conveniences that their competition does—online shopping, home delivery, mobile coupons, digital shopping lists—in order to survive. One:One For Tops to be truly successful in the area of relationship marketing, it is crucial to gain a thorough understanding of our consumers needs, in order to time our messaging correctly for greater relevance. We should begin by monitoring our consumers purchasing habits, trends in the marketplace, and what consumers are already saying about our brand. This will help us gain the ability to make the proper recommendations, and foster a personal relationship with our customers that will be mutually beneficial going forward. One:One Data Acquisition Methods Purchasing habits To make more relevant improvements to personal shopping recommendations, we need to have an understanding of what may interest each consumer. The first method we could utilize to acquire this data would be to track past purchases. Many

• ther retailers are actively utilizing this method. To do this effectively we could begin

collecting and analyzing purchase data attached to the consumer’s credit card, as well as their Tops Bonus Card. The ability to identify purchase cues and historical buying data will improve our ability to make individualized recommendations in the future(Ex. Target Case Study.) Trends in the marketplace Aside from looking at buying data, we also want to garner the ability to predict what our customers may need and want from their brand. Tops could look at popular diets, or heavily shared food related articles in each area, and by each demographic, to gain knowledge of what customers may be looking for in the short-term future. According to the Food Marketing Institute, today’s grocery shopper wants to know what their store stands for. Corporate social responsibility will play a huge role in influencing the behavior of today’s consumer. Topics like animal welfare, food waste, food safety and storage, and sustainability all heavily influence purchasing decisions. A long-term strategy that takes this new mindset into consideration should be implemented by the Tops brand.

Social monitoring To retain existing customers, Tops should ensure they are there for the conversation when customers are discussing their brand online. Tops should be implementing social listening, and utilizing an ongoing process to track online conversations on all social media accounts. Tools like Hootsuite, Keyhole, or Brandwatch are just a couple of the many platforms that could be used to monitor and collect data from blogs, forums, review sites, news sources, and social media. These tools will scan keywords, hashtags, URLs, and other terms related to the brand or it’s

• competitors. The goal of this process is to better understand different target markets

ranging from prospects to competitor consumers. One:One Recommendations To successfully implement a relationship marketing strategy, Tops needs to be focusing most of their efforts in the digital realm. Tops could begin by using data acquired through credit card and Bonus Card transactions to make recommendations to consumers through digital advertising. This could be implemented by matching data in Tops system to corresponding user data defined on the user's IP address. As we discussed in-class, it is important to be cautious when using these methods by sandwiching relevant ads with other products, to avoid the potential to seem creepy to

• ur customers.

Using our acquired data, Tops should be sending targeted emails to existing customers that have not purchased in a while. These emails could encourage customers to return to Tops by offering incentives. Incentives could include coupons, or special offers based on birthdays, anniversaries, or food preferences. With a newly implemented social listening strategy, Tops should be significantly more interactive with consumers talking about the brand on social media. When existing customers talk about the brand, Tops should be sending personalized responses to any mention on social media. To take this further, Tops could also respond to positive or negative reviews and mentions of similar brands with related product offerings available in-store or online. If Tops were to implement an online ordering system within the app, this would further improve our strategy in relationship marketing. Users should have the ability to comment, rate, and review products that were recently purchased in app. Tops should

be asking likelihood to repurchase on newly released items, as well as incentivizing the review process with discounts or coupons. Ensuring existing customers are happy with their products will further improve customer retention rates and ability to make individual product recommendations. Aside from our digital strategies, it is crucial not to ignore the older shoppers that may not be likely to shop or browse online. For these consumers relationship marketing could involve adding additional questions to the Bonus Card application, such as birthdays, anniversaries, or food preferences. For existing customers, we could also ask similar questions in survey form mailed to the address registered to their Bonus Card. Gaining insight into these offline consumers will improve our ability to target all demographics with relationship marketing. Utility For Tops to see success in creating brand utility the focus should be on the ability to provide a service. As a large grocery chain, Tops should focus their messaging and methods on being educational, useful, and service-oriented. Utilizing these tactics will create a significantly greater value for the Tops brand in the eyes of

• ur target consumers.

As some competitors of Tops have already implemented, creation of an online

• rdering platform would be an effective way to increase growth, improve ability to track

purchases, and improve targeted advertising ability. These changes at this point are not

• vertly innovative, as they are already well-known and utilized by other brands in the
• market. Tops could be considered behind the times for not having already partnered

with services like Instacart to implement online-ordering and delivery. As technology evolves, it is important for them to not only keep up with competitors, but differentiate with enough value to justify consumers ordering from their platform instead of the competition. Researchers estimate that up to 15 million Americans have food allergies, including 5.9 million children under age 18. About 30% of children with food allergies are allergic to more than one food. Food allergies are on the rise in the US, increasing by 50% between 1997 and 2011. It is crucial for parents and individuals with allergies to carefully read food labels in store, to ensure the products they are purchasing are safe

for themselves and their families. Tops could implement a useful feature within the app that allows the customer to define their food restrictions. If Tops were to introduce an in-app grocery ordering platform that could integrate with this allergy profile, it would allow customers to filter out foods that are unsafe for themselves or their families. To tap into the allergy audience even further, Tops could have a barcode scanner within the app, that when scanned in-store, would register the products ingredients, and immediately alert the customer if the food is safe within 1-click. Implementing these features would cut down significant time shopping in-store or online. These changes would make the shopping experience much quicker and less stressful for the customer. By 2017 video will account for 69% of all consumer internet traffic. Video is quickly becoming a key means for consumers to satisfy their information and entertainment needs. As a result of this rapid growth, it is crucial for Tops to be present in this market. Buzzfeed’s Tasty is a cooking channel that has exploded on Facebook. As of today, Tasty on Facebook has close to 88 million followers, and growing rapidly. Aside from Tasty’s main platform, they have added Proper Tasty, Tasty Junior, Tasty One-Pot, and Bien Tasty, just to name a few. All of these channels have numbers of followers well into the millions. Tops should be sponsoring videos on this platform, to have their products featured in the recipe videos. Tops could also create their own shareable recipe videos, but utilizing this enormous existing platform would yield much quicker and more effective results. Consumer Engagement Tops market needs to start being more engaged with their customers whether it be digitally, in store, or a mixture of both. By engaging with customers in the market, lasting relationships will be built which in turn will create repeat and loyal Tops shoppers. As of trends right now in Western NY, customers are turning to Wegmans which is known for their exceptional customer service and consumer engagement. When relationships and engagement is built, this will create a higher revenue. The best way to engage with customers on a personal basis and to get them to come to the store will be through digital communication as this is a growing form of business to consumer

• communications. In the service industry, customer service is key, and this goes beyond

in store as most consumers go online to make their complaints, or even praise a

• company. Tops needs to be aware of this so that they can respond and engage to these
• comments. Companies who engage with with their customers via social media have

more loyal customers. Also, brands who engage with customers online report 20%-40%

more spending on that brand. (inc.com) As of now, Tops does not do much engagement with their customers online, and these are our recommendations to improve this. Micro Moments: Be there, be useful, be quick. Be there. Tops needs to begin to anticipate where the consumer will be at all times

• digitally. When searching for places to shop, consumers turn to Google to search for

what prices are the best or deals that are currently online. Even if there are not deals, a digital presence is ideal, especially for the younger generation. What we mean by presence is being there on Google search and social media, and also ads in the Google display network network. If Tops can be visible online and be there at the right time when the search is being made or when the consumer is on a relevant website and an ad is there, that alone will start to build their online presence. It is proven that consumers will be willing to spend more with a business if they engage or have a digital presence. Be useful. A great example of being useful in the grocery market is Wegmans. Wegmans is great a giving specific recommendations to its current customers. When you sign up for the Wegmans Shoppers Club, you give your email to them and they have the ability to track your purchase history. By knowing the customer purchase history, they then can send you specific email on deals or new products that are related to products you have purchased in the past. This is a great form of customer engagement and one of our recommendations for Tops. Next, a smartphone app is needed for Tops. Wegmans also does a great job with their smartphone app, having the ability to build a specific grocery list with exact products in store, and then showing which exact isle the product is in. By engaging and being relevant to the consumer, loyalty will be built. 82% of smartphone users consult their phone when in store, something that Tops needs to take advantage of. (googleapis.com) Health conscious users are also on the rise, and if Tops can provide macronutrients or ingredients for certain food goods in the app, then consumers will be eager to use the app. ​78% of consumers use mobile apps for customer service purposes (Inc.com). We would also like to link our app to smart fridges, which are on the rise. By linking your app to your smart fridge, the app will be able to send you push notifications of when something in your fridge is out and compile a list of products you usually have in your fridge that are not there right now.

Be quick. When going digital, Tops needs to make sure that everything runs soothly and

• efficiently. Be at the top of the search results and stay up to date on keywords that

consumers are searching in regards to grocery shopping. In terms of the mobile app, make sure all products are up to date and that there are no bugs in the app. For example, we would hate to see the app be poorly put together and crash when in use. In terms of social media, be quick to respond to customer comments so that issues can be resolved in an effective manner. Customer Referrals We believe customer referrals is a great area to tap into for Tops. As of right now, there are customers making positive comments on social media and these need to be shared by the Tops accounts. This not only provides assurance for customers seeing the post, but also a relationship builder for those making the post as they know they are being recognized. Encourage Repurchasing Conferences Public conferences or displaying ads in public places is also a great way to engage. If you know your target market is going to be in at a certain public event, be present by either speaking at the event or sponsoring events. Although this is not digital, the story will become digital in the news and on social media, driving up your impressions. This could be beneficial by tapping into to consumer emotions by associating yourself with a good cause. New Products in store on social media When a new product is being put in store or a deal is going on, post this on social media and through email. This will create engagement in the marketplace and drive customers to your store. People now look online for new products or discounts, so Tops needs to be present here. One great example we saw on Tops Facebook page was when they allowed the customers to name their new ice cream flavor by commenting on the post. Although this is a great idea, this post was only on Facebook and needs to be on all platforms in order to be consistent. Less sales pitch, more relationship. Mutually beneficial.

Lastly, make the customer feel as if you are building a relationship with them and helping them out instead of trying to make a sales pitch. Provide relevant information to the consumer instead of saying something like “Come in and shop with us!” PeopleMetrics writes that companies focusing on customer engagement realize a 13 percent revenue reward, compared to a 36 percent revenue penalty for those companies obstructing customer engagement. What To Track Site visits, time spent on page, click through rate, bounce rate, keywords searched, social media analytics, trends in the marketplace, app downloads. By improving on each

• ne of these KPI’s, you will see a correlation between the KPI’s and customer

engagement. Everything as Channels Paid In order to make Tops have a digital presence, Tops need to start paying for ​Google Adwords, ​and other types of search and display advertising. A few words or phrases we recommend bidding on would be: Grocery store, best grocery, grocery coupons, grocery app, grocery store near me, etc. In terms of the Google Display network, Google will place you ads on relevant websites such as recipe websites or any other website involving food. This is where Tops can take advantage of rich content, for example, posting photos/videos of groceries or the store. Tops should also utilize ​paid social advertising​. Since Top’s customer base is growing smaller and smaller, this is a great opportunity for them to draw in a new audience. Through paid social, you will be able to target your exact audience by using demographic and psychographic tools. Reaching out to online users who do not yet follow you is a great option for growing your brand awareness. There needs to be a clear call to action in your promoted posts and this can be done on the advertising pages on each social site. These call to actions could include app downloads, website visits, or simply getting impressions. The social sites we recommend promoting on for

• ur target market will be Facebook, Twitter, and Instagram.

We also recommend using ​TV spots​ as TV is still a great way to reach a large number

• f people. We would recommend placing spots closer to the weekend when people are

more apt to go shopping. Earned Earned media can come from anywhere such as word of mouth, social posts made by customers, or any form of public relations (news story or blog feature). Earned media is something that Tops should monitor, especially on social media. When someone makes a positive comment on an experience at Tops, that post needs to be shared. Same goes for a news post on Tops. When Tops attends a community event, they will most likely be recognized on a news site in the article, and this is also great content to share. Owned At a traditional media level, we are recommending the use of banners in store on new products or deals. But when it comes to an emerging media level, we want Tops to be more active on ​social media and blog posts ​on the Tops website. By creating content relevant to the target audience. A few examples of social media posts that could be made daily are recipes, “National fruit day” post a photo of fruit in your store, loyal customer recognition, new displays in store, what farms the food comes from, etc. Tops should also keep their ​website ​up to date with content similar to what is mentioned

• above. This could be done through a blog on the website. Right now Top’s website

looks a little out of date so it could use some renovations. Consumers as Medium The growth of social media has turned what has largely been a one-way push approach to media and marketing into a two-way stream of communication. Tops needs to take advantage of this opportunity by improving their social media listening, participation, and engagement habits. Listen As stated previously in the one-to-one recommendations, a social listening strategy would allow Tops to better understand their consumers by analyzing conversations about their brand and the influence these conversations are having on their consumers.

These conversations could be analyzed to solve customers’ problems and tailor more relevant content to their audience. Participate Tops needs to proactively post and publish valuable content on their social media platforms including Facebook, Twitter, and Pinterest. It’s also recommended that they create an official Instagram account. The content must be authentic, useful, interesting, human, shareable, build trust/community, inspirational, and/or solve a problem. This might include content marketing with recipes, how-to videos, infographics, and photos of visually interesting food creations. A social media strategy and editorial calendar can be established to set goals, to plan what type of content will be posted and shared from which platform, and how often content will be posted from each platform. Engage Tops must actively interact in one-to-one, one-to-many, and many-to-many conversations within social media in order to openly exchange information and advance a discussion. They must respond to consumers’ comments to amplify their positive experience or to turn their negative experience into a positive one. Currently, their responses on Facebook are sporadic and they have a one hour response time to private messages. Compare this to their main competitor, Wegmans, who responds to virtually every comment, positive and negative, and who has an immediate response time to private messages. Social Media Comparison Tops Wegmans Facebook 79,538 likes 371,518 likes Twitter 2,662 followers 189,000 followers Pinterest 1,284 followers 13,589 followers Instagram n/a 11,800 followers The openness and responsiveness from Wegmans’ Facebook page contributes to their positive brand reputation, and it’s something that Tops can achieve by investing more time and energy into their social media presence. The combination of posting more relevant and useful content with quicker and consistent responses to consumer comments will also increase loyalty.

Measurement Google AdWords Measurement Key performance indicators to track for paid search and display ads include impression share and identifying keywords that were most effective at driving visits and

• conversions. These keywords could reveal insight into certain audience personas and

segments; for example, to determine if promoting mobile coupons, digital shopping lists, new products, or home delivery is more effective. It’s also important to track conversions for online orders, the amount of the order, app downloads, and new

• customers. Ad copy and landing pages can also be tested to measure which are the

most effective. Social Measurement In addition to the overall number of fans and followers, it’s important to track the engagement rate for content posted across Facebook, Twitter, and Instagram. These include likes, comments, shares, and determining which content led to the highest time spent on the website, most pages viewed per session, or app downloads. Measuring content engagement can also reveal which topics consumers are most interested in across each channel to determine a future social media strategy. Email Measurement Key performance indicators to track for email marketing include new subscribers, click-through rate, and conversions. It’s important to measure which links receive the most clicks and which headline subjects receive the most opens. This will help determine which types of content the audience is most interested in. Email clicks can also be tied to conversions such as online sales or app downloads. Brand Measurement Key performance indicators to track for Tops’ overall brand performance include unique visitors to the website, new visitors, and audience share vs. competitors. It’s also important to track sales volumes (online and in-store), repeat transactions, and fan volumes across Facebook, Twitter, Instagram, and Pinterest. Sources

Corporate Social Responsibility. (n.d.). Retrieved August 03, 2017, from https://www.fmi.org/industry-topics/corporate-social-responsibility Top 25 Social Media Monitoring Tools. (2017, March 31). Retrieved August 03, 2017, from ​http://keyhole.co/blog/the-top-25-social-media-monitoring-tools/ Posted by Jill Piebiak on October 17, 2016. (n.d.). Cool Tools: IP Address Ad Buys. Retrieved August 03, 2017, from http://www.campaigngears.com/cool_tools_ip_address_ad_buys Facts and Statistics. (n.d.). Retrieved August 03, 2017, from https://www.foodallergy.org/facts-and-stats Griffith, E. (2016, January 19). Why BuzzFeed's Foodie Channel Tasty Is Blowing Up on

• Facebook. Retrieved August 03, 2017, from

http://fortune.com/2016/01/19/buzzfeed-tasty-proper-tasty/ Trimble, C. (2015, July 30). Why online video is the future of content marketing. Retrieved August 03, 2017, from https://www.theguardian.com/small-business-network/2014/jan/14/video-content-market ing-media-online