Ocado: driving growth for brandsRose Price Head of Buying

Introduction to Ocado

▪ Founded in 2000 by three entrepreneurs

to revolutionise the way customers do

their shopping

▪ Ocado is the world’s largest dedicated

online grocery retailer

▪ Over 679,000 active shoppers in the UK

▪ Innovation is at the heart of our business

model

▪ In 2018 Ocado won Which Online

Supermarket of the Year, Grocer Gold

Online Supermarket of the Year and

joined the FTSE 100 and Ocado is now

covered by GSCOP

Evolution of Ocado▪ Founded by Tim

Steiner, Jason

Gissing and

Jonathan

Faiman

▪ Entered into

arrangement with

Waitrose

▪ Started delivery

to customers

▪ Opened 1st

customer

fulfilment centre

(CFC) in Hatfield

▪ Tesco Price

Match

introduced

▪ Introduced

Ocado Smart

Pass

▪ 'Ocado on

the Go'

smartphone

app

launched

▪ Listed on London

Stock Exchange

▪ Ocado ‘own-

label’ range

launched

▪ Signed commercial

agreement with

Morrisons

▪ 2nd CFC Dordon

opened

▪ First deliveries

for

morrisons.com

▪ Exceeded £1bn

in annual sales

2000 2002 2008 2009 2010 2013 2014 2015

▪ 3rd CFC Andover

opened

2016 2018

▪ 4th CFC Erith

opened

2017

▪ Launched

Ocado Skill with

Alexa

▪ Ocado Regulars

▪ Began pilot

deliveries

▪ Delivery area

increased to

cover 10mln

households

▪ Launched

low price

promise

▪ Reached 50k

skus

▪ Launched

Fabled

▪ Commercial

agreement

with Dobbies

Ocado has a unique model allowing us to take a range

larger than any other

Our range competes with traditional supermarkets...

Big brands at competitive pricesStrong own-label range

...but we want to be so much more

We love and grow distinct brands

CAGR 2018-23 2018 sales growth

...but we want to be so much more

Ideal channel for global catalogueGreat test bed for NPD

...but we want to be so much more

We bring the high street online

Our growth drives growth for our suppliers

Online: the fastest growing channelOcado: 12% growth in 2018

Growth driven by our continued investment in customer

proposition

Improved service from New CFCs

We are investing in tools to help you outperform

Smarter algorithms driving

personalisation

Increasing effectiveness of

our media toolkit

We are investing in tools to help you outperform

Data so you can optimise Recent actions taken by suppliers

Identified SKUs to include in Star

Review programme

£ Adjusted promotional calendar

Planned media based on high ranking

search terms

We are investing in tools to help you outperform

Smarter coupon capabilities

▪ Data Science

powered targeting

▪ Increased visibility

throughout the shop

▪ Redemption cap

available to increase

suitability for smaller

brands

>400% unit repeat

purchase rate

>800% unit repeat

purchase rate

>300% unit repeat

purchase rate

Targeted a

competitor brand

Targeted

customers after

delist earlier in the

year

Targeted customers

buying complimentary

products

Positive results tailored to campaign aims

A listing is just the start – you need a credible online

strategy

Are customers aware of your product?

Can they find your product?

We have 50k SKUs – how can you

make customers aware of your product

either on- or off-site? Visibility is key.

50% of adds are from search. Understanding

and optimising search is crucial.

70% of items added are favourites and products are

added in less than 1 minute. How can you make it easy

for them to choose your product?

Drive awareness and conversion:

Invest smarter

using data and

increase

effectiveness with

personalisation

and segmentation

Will they

buy it?

Bringing the best together from Sept 2020

▪ Ocado last week made an announcement

which outlines yet another transformational

deal for our business, combining

our ocado.com retail business with another

iconic and much-loved brand, M&S, enabling

us to jointly provide an unrivalled online

grocery offer.

▪ Waitrose continues to act as our sourcing

partner until September 2020

The service our customers know and love

M&S’s highly regarded own-label

Ocado’s love for brands

+

+

In summary:

▪ We’re different and our business model allows us to stock the widest range

▪ We want to offer a wonderful customer proposition including our own-label, big

brands, smaller brands, NPD and products from global catalogues

▪ Our growth provides growth for our suppliers and this will continue, driven by

new customer adoption of the channel

▪ We are investing in our proposition to grow ahead of the online market

▪ We build tools to help you outperform – make sure you use them and work with

us

▪ Our JV with M&S means we’ll be bringing together our strong customer service,

our great range of brands and M&S’s excellent own-label range

Thank you