Effectiveness 08 - Marketing Week

37 MWEA_BOTN_RETAIL_p37_AA:Layout 1 3/10/08 16:49 Page 75RETAILCOMMENDEDMcDonald’s UKWINNERFresh Choice for YouMorrisonsMcDonald’s’ redesigned restaurants,responsible attitude towards children andpromotion of healthier options challengedcustomers' perceptions and helpedachieve the brand's highest sector share infive years.SHORTLISTBRANDCOMPANYBRANDCOMPANYBRANDCOMPANYBRANDCOMPANYArgosHome Retail GroupDomino’s PizzaDomino’s PizzaInternationalLittlewoods’ onlinecatalogueShop Direct GroupThe Co-operative FoodThe Co-operativeGroupMorrisons highlighted thefact that it makes morefresh foodin-store than any othersupermarketMorrisons enjoyed 36 years of unbroken sales andprofit growth after going public in 1967. However,after taking over Safeway in 2004, the brandevolved from regional to national grocer and itsmarket share dropped to 11.1%.Morrisons, Tesco, ASDA and Sainsbury’s accountfor over 65% of total UK grocery sales, with sharegrowing through new store openings and theacquisition of other grocery retailers.Morrisons was being held back by poorperceptions of its food quality and, in Safeway’sformer stronghold, the South of England, its namewas inaccurately perceived as a by-word for “pies”.The fight back began with Morrisons' MarketStreet campaign, which had, at its roots, thebrand's origin as a market stall. The essence of amarket is “the freshest food at the most competitiveprices”, and Morrisons highlighted the fact that itmakes and prepares more fresh food in-store thanany other supermarket.The message abruptly reversed Morrisons’ threeyearshare decline, with a subsequent increase from11.1% to 11.6%. Each 0.1% increase in share isworth £70m based on a grocery market of £70bn.Morrisons became the fastest-growing supermarketin the UK, with sales growth of 11.4%. Estimatedpayback of the campaign is £13 extra salesrevenue for every £1 invested, which contributed£21.4m of profit. Of the additional investment of£26m, £21.4m was paid back immediately, anROI of 82%.The 10th Annual Marketing Week Effectiveness Awards 75