Cartifacts Third Edition

cartifacts

Cartology's

latest from research,

and the retail

industry

must-read

Welcome to the third edition of Cartifacts

In our third edition of Cartifacts we have some fantastic insights, inspiration and thought leadership to share with you.

First of all we celebrate our growing team and share some exciting updates on our revised structure that aims to help drive our business forward, and ensure we are raising the bar for the benefit of our team and our clients.

Christmas is fast approaching and we look forward to celebrating with friends and family again in 2022. Our research and insights team have gained some fascinating insights into evolving customer behaviour and we look at what’s important to our customers during the Christmas season.

Whether in-store or online, our customers’ experiences are critical and having the ability to influence their shopping journey is incredibly valuable for brands. At Cartology our aim is to always enrich the customer journey and drive better experiences for customers through more

thoughtful connections with brands. Cartology’s screen network is a key touchpoint along this journey when customers step over the threshold from audience to shopper. We dive into all things digital screens with some great insights on how brands can plan and target digital screen activity.

We also look to the year ahead as we hear from Cartology’s Senior Marketing Manager Liam Crause on his role at Cartology, what differentiates Cartology and what clients can expect over the next 12 months.

All this and more - I hope you get a lot out of this edition and enjoy the read.

Samantha Osborne General Manager - Cartology New Zealand

Welcome

to Cartology

Rawinia Newton Head of Operations

Rawinia has over 19 years experience in Sales and Marketing having led the Sky Media team as Director of Sales and Marketing. She left Sky in 2019 to pursue her Executive MBA with Massey University while working for non-profit Look Good Feel Better as Programme Operations Manager.

Rawinia is looking forward to working with some of New Zealand’s leading FMCG brands and being a part of the exciting growth Cartology is achieving in the retail media landscape.

Shennelle Muller Sales Enablement Coordinator

Shenelle has come to us fresh from completing her Masters in Health Psychology at the University of Auckland after completing her Bachelor of Science in Psychology.

"The masters programme helped me develop and acquire good data and insight skills. While studying I worked part-time for non-profit Ronald McDonald House of Charities and as a Research Assistant at the

Team Cartology

At Cartology, we are creating, shaping and leading this new industry that connects brands to customers in new and exciting ways. As a team, we are smart, hardworking and passionate. Together, as part of the Woolworths Group, we create opportunity and realise success.

The Cartology team is growing and we have some exciting updates to share. As well as our new team members we have created a number of new senior roles to help drive our business forward, and ensure we are raising the bar for the benefit of our team and our clients. This also enables a number of newly created executive roles to support the team.

We are pleased to announce that these senior positions have been filled internally by our existing team:

Client Partnerships

Group Client Partnerships

Manager - Darryn Els, James McPhail, Rachel Quinn

Senior Client Partnerships Manager - Karla Watts, Sonam Golian, Andrew Coulthard, James Josephson, Guy Slater

Marketing

Senior Marketing ManagerLiam Crause

Operations & Delivery Delivery Lead - In StoreNadine Tupua Delivery Lead - Digital & Events - Natalie Rae-Raddock

Some other moves within the team include:

Product & Platform Product Manager - Digital Media/ Product Owner - Ella Eglinton

Operations & Delivery Campaign Delivery Specialist

- POS - Maree McKay Campaign Delivery Specialist - Events - Kiani Gallichan

Campaign Delivery ExecutiveMaria forte Ramos, Sarah Brill

And finally, Maddie Irvine and Kirsten Ross are moving into the newly created Client Partnerships Executive roles

The fact that we have filled many of these positions internally is testament to all the amazing mahi done by the team in FY22, and an acknowledgement that we have the best retail media talent in New Zealand. Congratulations team!

Industry insider

to read

Check out the latest news and global trends from the retail industry.

The five driving forces behind the rise of retail media

The future is omni-everything

Christchurch’s most sustainable supermarket opens its doors with a lighter footprint on the planet

‘Some of the strongest results we’ve seen’: A marketers view on retail media as Nestle’s Purina makes major gains

Christmas the countdown is on

Christmas is a time for connection, community and togetherness and it’s the special celebrations that bring us together. With the festive season nearly upon us, Countdown is here to help New Zealand to connect, celebrate and create more memories.

Countdown’s customers are eagerly planning for Christmas, wanting to make 2022 an extra special celebration with loved ones. Customers are looking to Countdown for delicious recipes, easy meal solutions and inspiring ways to elevate their entertaining, and create celebrations to remember throughout the festive season.

Countdown customers are focused on:

Community

Community continues to be a major focus for customers, with 1 in 2 likely to give back at Christmas.

Connection

7 in 10 had face to face Christmas celebrations in 2021. With restrictions easing and domestic and international travel returning customers are optimistically looking to a more “normal” celebration in 2022.

Value

With rising inflation, there is a major focus on value. Quality and familiarity will play a part, with customers buying from brands they trust and look to rewards for their loyalty to brands and retailers.

Christmas means bigger baskets at Countdown 2021 saw an increased Christmas basket for Countdown’s core customer segments

Young Families up +16% YOY New Families up +17% YOY Young couples and singles up +18% YOY

Christmas is the biggest sales driver over the calendar year bringing in more customers and higher spend over the Christmas campaign period. Last year, there were 1.2 million Countdown customers shopping across instore and online up 4% compared to Christmas 2020. There were 3.4 million transactions up 5% the previous year and a 9% increase in basket size YOY as customers were spending more compared to the previous year, making Christmas the top sales driver with growth year on year.

2.5x

Source: World Advertising Research Centre

Captivate with animation

We know that customers’ shopping behaviours are evolving. There are multiple touchpoints along the path to purchase. Our aim is to always enrich this journey, helping customers to navigate our ecosystem.

For many customers shopping is now a hybrid, omnichannel experience based on personal preference. Cartology screens are a key touchpoint along this journey. When customers step over the threshold they are primed to purchase and open to suggestions with 80% of shoppers having planned less than half of their in-store spend. Only Cartology can

put your brand inside a Countdown store. Screens help brands educate, inspire and storytell, helping influence how customers navigate their physical shopping journey.

Our digital screens network places you at the entrance to Countdown. With every digital screen nationally right at the store threshold and right at the start of

the shopper journey. This enables us to offer zero wastage and 100% on target FMCG customers ready to be influenced.

37% of in-store customers agree screens help them notice and discover products they might not have seen previously. If you want to reach grocery customers, why would you be anywhere else?

Full motion digital screens improve memory encoding and emotional intensity by 2.5x static imagery.

Did you know?

Two thirds of shoppers are actively looking for inspiration for what to cook and buy with over 90% of all shoppers purchasing more than a third of their baskets on impulse and roughly 20-30% of shoppers are open to trying new brands

measuring instore impact

Reach Total sales

The number of unique shoppers that had an opportunity to see the screen activity

Product and brand sales in stores where the screens were live during the campaign period

New to brand Customers Transactions

Customer had not bought the product in the last 12 months

Countdown Screen Network

Cartology is the only media supplier that can target activity to Countdown stores based on realtime in-store transaction data. With 164 Screens across Countdown supermarkets nationally, our Front of Store Screens Network enhances the shopping journey as shoppers cross the threshold from ‘audience’ to ‘shopper’

The number of transactions that occured in stores in which activity ran

We measure true effectiveness and eliminate the guesswork. Closed loop reporting provides end to end transparency and clarity. Our transaction level reporting means we can show results and figures from awareness right through to every sale.

Product ranging Screens can be geo-targeted based on store ranging

Top performing stores Cartology can advise on the top performing stores for your product SKU or product range

Full network Partners that have full ranging can advertise run of network, Reaching 2.5M+ shoppers per week at an average frequency of 2-3 times per week.

There are a few ways to plan and target digital screen activity

Plan & Target

Getting to know... Liam Crause

We chat with Liam Crause, Senior Marketing Manager at Cartology NZ about his role, what differentiates Cartology and what clients can expect over the next 12 months.

1Tell us about your role at Cartology?

I have the privilege of setting the marketing strategy for Cartology that covers four key areas of the plan; Brand, Communication, Insights and GTM. Having previously worked in Brand and Shopper Marketing roles for the likes of Diageo, GSK and Lion, I am very familiar with retail media networks. Using that experience, I am able to apply a client lens to all the marketing activity we run at Cartology.

I have been with the business since it launched in February 2021 and over the past 18 months I have worked across multiple projects, everything from creating the website, arranging a launch event, determining the brand position and customer value proposition to gathering and translating customer data into insights to support the sales team. It sounds

like such a cliche but no two-days for me are ever the same. One day I am setting the strategy, the next day I am activating that strategy across owned, earned and paid channels. I also get to lead a very talented Assistant Marketing Manager, Cassandra, and together we share the workload of spreading awareness of the Cartology brand.

More recently, I have started

writing thought leadership articles about the rise of retail media and even had the opportunity to speak about it at The Future of Retail Marketing conference.

2

What's exciting for brands who partner with Cartology?

Our North Star is to shape the future of retail media through trusted partnerships with the Woolworths Group ecosystem and brands.

(logo1)

Always on my shopping list

✔ Milk...litres of it My kids are at that age where they want to pour the milk themselves and lets just say more ends up on the floor than in the cup.

✔ Coffee

✔ Carrots– our Beagle called Molly eats them as a treat.

✔ The Collective Greek Yoghurt – I recently discovered the coffee cacao flavour…delish!

✔ Anything from the beer chiller – the style depends on the occasion.

Retail media in New Zealand is still in its infancy but is sharply on the rise and Cartology are right at the forefront. We have a vast omnichannel media ecosystem with unrivalled access to first party data. When we combine those two together, we are able to drive real customer impact to help grow brands.

Brands that sell through retail platforms want to influence customers not just at the point of purchase but throughout their entire shopping journey. Cartology Retail media enables brands to build better connections with customers in-store and online.

Our retail media proposition starts with customers, our role is to ensure that we are creating accretive experiences for customers that are contextual and a seamless extension of their shopping experience. Activating campaigns that are hyper relevant to those customers is the next component, whether they are in our network or off network and lastly and most importantly is our ability to measure the effectiveness of these campaigns through closed-loop reporting.

3What can we expect from your team over the next 12 months?

There are three key areas of focus for the marketing team: Literacy, insights and Proof, and the Cartology proposition. As retail media gathers more momentum, we are making it our mission to grow the awareness and the opportunities it represents for brands. Literacy on the topic in NZ is scarce but we have learned a lot since our inception and we are constantly looking to international markets that are more mature than us to give us a glimpse into what the future holds for retail media. Closer to home, we are sharing our own learnings and

insights from the vast array of campaigns we have run and using that knowledge by sharing it with our clients on how to effectively use retail media networks, especially as we continue to grow the Cartology media channel offering.

We all know the value of insights and given our unique access to real shoppers, we are going to be running research to fully understand the ever-changing shopper journey. That research will form the basis of a series of Playbooks to help our clients fully unlock the value of retail media by effectively activating along that shopper journey.

In July Cartology launched The Academy, a webinar series focusing on all of Cartoloy’s exciting new developments in products and insights across the retail media industry.

Kicking off the series was session 1: CPP- The power of search and promoted products. This session walked through new developments in the CPP offering that included an increase in ad inventory from 4 to 6 sponsored tiles, the launch of the new Aisle & Category ad format and the launch of the Daily Pacing wallet functionality as well as showcasing some CPP insights and customer trends in search. We had a strong attendance rate on our first session and we look forward to bringing Session 2: to be announced next month.

What’s New with CPP Increase in ad inventory With millions of monthly

product searches on countdown.co.nz, digital shelf space is now as critical as in-store. After immense success, the CPP offering has now been expanded to 6 tiles from the previous 4, meaning even more opportunity to intercept 60+million online customer searches every month.

Launch of Aisle & Category Aisle & Category navigation plays a key role in how customers fill their online basket. Cartology Promoted Products now lets you advertise directly in the relevant Aisle & Category of your customers’ online search. This high visibility approach also boosts discovery of new products as customers use the Aisle & category navigation to discover, browse and purchase. To achieve the highest volume of sales for your CPP campaign, your marketing mix should use a combination of both search

and Aisle & Category related advertising.

Wallet Daily Budget

Wallet daily budget is a new feature that assists with pacing budgets effectively using wallet level daily spend caps to help manage your daily spend limit, so you don’t have to. When activated, the feature will automatically pace wallet budgets daily, ensuring your daily spend does not exceed the specified daily cap, providing greater efficiency of wallet budgets. Once the allocated daily budget is met, all campaigns associated with the wallet will stop spending. Our Wallet Daily Budget feature is now live and can be accessed from the wallet section of your Promoted Products team account in Citrus.

Campaign Daily Pacing

Having just launched at time of publishing, find out more here

How can I use CPP to drive sales during a promotion?

Whether it’s above the line, or below the line media strategies. CPP plays an integral role in supporting both trade and brand initiatives at the moments that matter most.

Cartifact

Did you know 49% of our customers look for inspiration during their shop online?

Why retail media needs to put the customer first

More than anything, a customer first approach to retail media ensures its sustainability over the long term.

Value

Value – or the perception thereof – has become an increasingly crucial matter for shoppers over the past two years. Changing behaviours in the wake of the pandemic and inflation have shown a growing trend towards “value-seeking” strategies.

While retail media isn’t linked directly to price, it can still play a key role in helping customers get more value from their shop. As well as highlighting cost-saving

opportunities more generally, retail media can also be used to deliver personalised offers and discounts tailored specifically to the products that shoppers actually buy on a regular basis.

Convenience

Whether they’re online or in-store, grocery shoppers usually want to get what they came for as quickly and easily as they can. As a result, anything that retailers can do to make the shopping experience as convenient as

possible is likely to go a long way towards meeting expectations.

Both online and off, retail media provides abundant opportunities to improve the flow of a visit. Smart use of in-store assets can be used to improve navigation and callout deals and offers, ensuring that shoppers can manoeuvre around a store as quickly as they want. From a digital point of view, personalised recommendations, substitutes, and favourites can all help a customer get to the checkout faster.

Inspiration

Cooking at home was one of the major trends to emerge during the height of the pandemic, even in countries where eating out is usually a significant cultural norm. As a result, many customers were looking for extra inspiration in their shop, something intensified by the shift to online.

Here too, personalised recommendations have presented retailers and brands with a way to aid product discovery while simultaneously helping to provide a better service to customers.

Complementary product suggestions, based on what similar shoppers have added to their baskets, offer another opportunity to inspire. The importance of making retail media a customercentric endeavour can’t be underestimated. While shoppers tend to be more willing to share their data with grocery retailers than others, that doesn’t make them any less conscious that their experience should improve as a result.

More than anything, a customer-first approach to retail media ensures its sustainability over the long term. So long as shoppers continue to receive a genuine benefit from the communications they receive – whether in terms of time,

money, or anything else –they’re that much more likely to remain receptive to the messages they’re presented

with. If that dynamic changes, retailers risk the entire operation coming undone.

Countdown is proud to be a part of Kiwis journey in creating a better tomorrow for New Zealand. And we want to inspire more Kiwis to join us on that journey.

Of course, the goal of creating "A Better Tomorrow" can seem quite a formidable mountain to climb. Unless you break it down into individual steps. At which point the impossible becomes a lot more achievable.

Whether the goal is:

• Showing our love for the planet by reducing food waste, working with partners like Kiwi Harvest.

• Reducing the future impact of climate change – we are installing solar panels in our stores.

• Inspiring and educating the next generation: we award groups of people with financial support as part of its Growing For Good programme, such as our 2022 grant winners, the Te Kura O Omania school in Northland.

• Living more responsibly and looking after the land, working with Wilcox and the local Iwi together to leave the land better than when they found it.

By starting small, taking things one little step at a time, we can not only dream big - we can achieve big. All of us doing our bit today to ensure a better tomorrow for all kiwis.

Little things click to watch

The prestigious Countdown Supermarket Supplier of the Year Awards recognise suppliers who have demonstrated category leadership and partner solutions through creative and insight-led executions.

Cartology are happy to announce the launch of a new category in the Supplier Awards; the Cartology Campaign of the Year. This award recognises the deep partnership and collaboration between brands and Cartology, to deliver data-led campaigns that drive real customer impact in the moments that matter most.

We're looking for those campaigns that took a data-led, omnichannel approach to reach customers and drive effectiveness.

Applicable campaigns must have run from 1st July 2021 - 30th June 2022 and will be nominated by Cartology sales representatives, in collaboration with the Countdown commercial team and yourselves, our valued clients. Entries are now open and close at midnight 13th October 2022.

For more information on how to enter please contact your Cartology sales representative.