Esselunga

Trade Marketing

Prof. Marco Repezza

Marketing, Communication and New Media

Caterina Latorre

Gabriele Pasceri

Issam Arab

Pietro Iraci Cappucinello

Rasool Rajezi

Mariangela Basile

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Esselunga: a story of Convenience

Esselunga started in 1957 in Milan. It is a family-owned company

One of the main italian chains of the big distribution organization.

Esselunga was Italy’s first supermarket chain and was pioneer for many further innovations:

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Esselunga in Italy

Superstore 2.000-3.500 sqm

supermarket 400-2.500 sqm

20.600 employees

6,9 billions euros turnover

8.2 % market share

18.050€ Profitability/SQM (1st Semester 2012)

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Direct retail chain

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In Esselunga

Management is centralized at all levels,

decisions are all taken the central office:

• shelf layout
• promotional activities
• logistics
• pricing

Retail structure

Price Strategy

Pricing is determined centrally and communicated daily to the individual stores.

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• To deliver the highest quality products at the most competitive prices to its customers.
• Its price strategy enables it to execute price repositioning to maximum effectiveness against competitors, while minimizing negative impacts on margin.
• They have low margins and high volume of sales

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Customer perception

Esselunga is perceived to offer quality and value for money, and therefore it has a high standard of customer satisfaction.

According to a recent national survey by Altroconsumo, Esselunga is the retailer which offers the best value and quality for consumers

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Market share

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Source: Elaborazioni TMS su dati GNLC 2010

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Swot Analysis

Private Label Lines

Positioning and Location

• in the surrounding neighbourhoods of towns
• easy and convenient to reach

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Retailers Positioning

Store Layout

Market Analysis (Sanitary Pads)

Sanitary Pads

Market Analysis (Sanitary Pads)

Category Analysis by Brand (Sanitary Pads)

External Sanitary Pads Ultra

External Sanitary Pads Regular

Category Analysis by Brand (Sanitary Pads)

Market Analysis (Wet Wipes)

Market Analysis (Wet Wipes)

Category Analysis by Brand (Wet Wipes)

Thick Wet Wipes for Baby

Pocket Wet Wipes for General Use

Wet Wipes Box General Use

Wet Wipes for Surface

Make up

Category Analysis (Wet Wipes)

Intimate Wet Wipes

Tanning Wet Wipes

Post Depilatory Wet Wipes

Population Forecast

Customer Decision (Wet Wipes)

Type

Promotion

Format

Brand

Multi Use

Baby

Car

Intimate

Pet

House

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Size

# of Pieces

Discounts

Price

Quality

Customer decision tree

(Sanitary Napkins)

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Promotion

Discount

Tampons

Promotion

Discounts

Segmentation (Wet Wipes)

Babies

• 13 Brands
• Features (pure, sensitive, with aloe)
• Format/size

Multiuse

• Size,Format (Rechargeable/ Disposable)
• 7 Brands
• Type (fragrance, disinfectant)

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Shelf Analysis (Baby)

Shelf Analysis (Multi Use)

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Rechargeable

Segmentation Sanitary Pads

SANITARY PADS:

• Function: absorbency level \ time of use
• Brand
• Shape: with wings or without wings
• packaging size:14 or 28 pieces

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TAMPONS (only two brands):

• Brand
• Form (super or regular)
• Absorbency Level: light days - normal- super - super plus

Shelf Analysis

Shelf Analysis

Shelf Analysis by brands

Private Label: Shelf Positioning

Hand Level

Bottom Level

Promotions in the Category Sanitary Pads

External sanitary pads:

• Lines Seta Blu long, with wings both day and night

2x1, discount of 40% only for Fidaty cards owners

• Lines Seta, 4 packs, 9 €
• All Nuvenia external pads, 1 pack 16 and 2 packs 48 strawberry points

Internal sanitary pads:

• Tampax regular and super, discount of 30% only for Fidaty cards owners

Promotions in Category (Wet Wipes)

Baby

• Esselunga, Prezzi Corti discount of 50%
• Chicco, discount of 50% for Fidaty card owners
• Fissan Baby Essentials, Alta Protezione and Delicate, 1 pack 30 and 2 packs 90 strawberry points
• Huggies Natural Care 1 pack 16 and 2 packs 48 strawberry points

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Multiuse

• Esselunga, discount of 30% for Fidaty card owners

Loyalty Card

Fidaty Card

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La Fìdaty Card:

• free
• 2 points for 1 euro spent over 5 €
• Discounted entry to the cinema on Thuesday

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Fidaty Plus

(bank acc.)

Fìdaty Plus:

• accepted in shops with an agreement with MasterCard
• buy fuel for free
• 2 points for 0,90 € over 5 € spent
• monthly available amount starting from 1.600 €
• possibility of installment plan: Deutsche Bank Easy’s Client Service

Fidaty Gold (bank acc.)

Carta Oro:

• 2 points for 0,90 euro spent over 5 euro
• charge on banking c/c only for clients ok banks with an agreement with Esselunga
• weekly available amount till 516,46 €
• Informatives

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Additional Fidaty Services

• Buy schoolbooks with a discount of 15%, collecting strawberry points
• Print photos choosing frames, themes, etc.
• Pay bills thanks to a partnership with Poste Italiane
• Home delivery with a discount of 50% for old people and free for disabled people

Digital Couponing: Choose Your Discount

Discount every day 6 products you choose between thousand of Esselunga goods through:

• Esselunga Website�
• Esselunga App�
• Touch Self Discount area at the entrance of the stores

Fidaty Catalogue

• 100 products to win�
• Strawberry points are commutables

How to Use FIDATY Points

With a certain number of points, adding an amount of money, the customer can:

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• Book a theatre or cinema ticket�
• Week-ends in a spa�
• Choose to give 10 € to the Clinica Mangiagalli for Banca del Latte Umano

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Special Promotional Events

Esselunga allows customer to collect special items.

• Adidas Football balls
• Kitchen stuff
• Disney’s or Pixar’s characters
• The chance to download music

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SOTTOCOSTO

They deliver a pamphlet with all the discounts, availables for a fiftheen days

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Partnerships

The Fidaty card owners can use services, available only for them, or commute them in partner company’s points:

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• Q8
• Servizio Viaggi
• Value Club
• Enel
• Bar Atlantic
• Esserbella

Fidaty and Direct Line, Q8, EnelPremia

• Convertibility
• New points with a new bill

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Flyer: Two Weeks Discount Campaigns

• General Flayer of Esselunga:�24 pages, 3x4 boxes for page food and no food;

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• Multimedia Flyer:�hi-tech, phones, tv�

Da Noi: Monthly Publication

• Recipes (also gluten free and for vegetarian people)
• Suggestions about house care and green fingers
• Assortment news
• Food and beverage assortment

Communication Languages

In 1970 Esselunga started to create campaigns in collaboration with Armando Testa

“Elegance and irony, are the ingredients of the communication campaign, which combines quality and freshness, which have always been part of the DNA of Esselunga, reinforcing the identity even more.” (Armando Testa)

Communication Languages

Focus on convenience

Esselunga on web

Sites:

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• Esselunga.it�
• Esselungaacasa.it�
• Esselungajob.it�
• Collezionatelialvolo.it

Esselunga.it

The main Esselunga online showwindow.

It connects Users to all online services, with all information about promotions, stores and recipes.

Esselungaacasa.it

• Launch in 2011
• The only one grocery in italy e-commerce site
• 14.000 products
• 950 towns, 23 lands, 6 regions
• 118 Mln € in 2013

Esselungaacasa.it

13,3 mld €

Competitors.it

Information and services

Information and services

Good presentation and deep information on origin of the products

Information and services

Home Delivery

• Promotion on Shipment

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• Possibility to book the specific time slot

Payment

Impulsive purchases near to the payment

24% of all payment in ecommerce

Related services

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Esselunga in social media

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Facebook: 4.085

Twitter: 895

Pinterest: 147

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Traffic Sources Esselungaacasa.it

Source: SimilarWeb

Social media Results

• Facebook and Twitter pages are not active
• In Pinterest, users created successful boards with esselunga ironic advertising
• Our suggestions: They should use these images and communicate more

Esselunga App

• Choose your discount, look to flyers and new promotions

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• Check Fidaty account and create grocery lists scanning barcodes.
• No mobile e-commerce (widely Increasing)

“Collezionateli al volo” campaign

Collezionatelialvolo.it

Web series

Esselunga invested on a video production for youtube, 7 episodes with Zwilling Knives at the center, recipes, storytelling..

But it had low results in visualizations!

3.875 Visualizations

No presence in Social Networks

They invested in a multimedia campaign but no care about its spread!!

Circulation

Communication

New Private Label for Sanitary Pads

Sanitary Pads Category in Esselunga

Category: Internal sanitary pads with applicator

Actual Market: 2 brands

Tampax (4 products)

O.B. (5 products )

Avg price of the market: 4.40 euro

Price Min € 3,75 Max € 4,62

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Sales value per size

Var. in sales and in unit (t-12)

Market Trend-Forecast

Global Tampons market expected to grow 6.10 percent over the period 2013-2018. This market growth is driven by:

• innovative efforts of the companies in building greater awareness
• continuous product developments
• rising standards of hygiene and a more active lifestyle
• increasing demand from emerging economies.

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(Source: Report by Global Industry Analysts, Inc. )

Esseluga Private Label

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• 100 % pure cotton, with no chlorine, additives, perfumes or plastics
• With applicator to prevent infections
• Level of absorbency: Regular, Super and Superplus
• Compact size
• Approved by A.O.G.O.I.
• Attractive & Stylish Packaging Design
• 16 pieces x 3,99 euro
• Copacker: Fater

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Placement on Shelf

New Private Label for Animal Wet Wipes

Wet Wipes Category in Esselunga

In Esselunga

Only one brand:

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Pet company formats size 30 p

Avg Original price of market: € 3,13

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Market trends - Forecast

• Promising category
• Increasingly polarising category
• Private labels products are growing
• Premium products in small sizes

Esselunga Private Label

• Lower price than the market avg
• Biodegradable: “pets and nature friendly”
• For cats & dogs
• odor-neutralizing and anti-bacterial
• 20 Pieces x €2.90
• Copacker: Converting

Product Placement (Animals Section)

Insertion In Promotion Section

Timing of Promotion and Advertising

• 15 days
• Promotion price Pet care: € 2,03
• Promotion price Internal sanitary

pads with applicator: € 2,80

• Column in special promotion place

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Thank you