Retail Channels
24 March
DoorDash adds beauty and intimates, enhances search
Lush Cosmetics, Victoria's Secret and Party City are joining the DoorDash Marketplace.
(Photo via DoorDash)
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DoorDash is continuing expansion beyond meal delivery by adding new retailers to its platform.
The news: DoorDash announced that three new retailers will now have products available to order for on-demand delivery on its marketplace. The company is also adding new shopping features.
Who’s joining? DoorDash will add assortment in three categories via these new retailers:
- Lush Cosmetics will offer beauty products from 250 stores, ranging from bath bombs to gift sets.
- Victoria’s Secret will make lingerie, PJs, fragrances and accessories from hundreds of stores available.
- Party City is partnering with DoorDash to provide delivery both directly from Party City, as well as through the DoorDash marketplace.
What is DoorDash adding? DoorDash will add the following features to improve the shopping experience:
Delivery: New options will include the ability to schedule ahead in specific delivery windows and access express delivery for faster service.
Search and discovery: DoorDash said its platform now includes the ability to search items in a specific store, and more relevant in-stock options.
Communication: Shoppers can communicate with a delivery driver on substitutions for the “next best item” in the event of an out-of-stock.
Key quote from Fuad Hannon, VP of New Verticals at DoorDash: “Features such as express delivery ensure that our customers get essentials like over-the-counter medicine quickly while enhanced search lets them easily find travel necessities for that last-minute weekend trip. We’re proud to develop these features in partnership with retailers as consumers crave convenience, alongside speed and selection.”
DoorDash grows the marketplace
DoorDash has long called the interface where customers order delivery a marketplace. With the latest moves, the company is looking more and more like a robust ecommerce marketplace that offers a wide assortment of goods.
With goods from multiple product categories and search features to help consumers find what they’re seeking, DoorDash is seeking to realize the benefits of scale and customer experience that powered the growth of services like Amazon. These additions also leave room for more advertising on the marketplace at a time when retail media is gaining favor among retailers for its mix of first-party data and high margins.
By delivering directly from stores, DoorDash has a fulfillment model that is distinct from retailers. But in the end it is moving into the same space as many digital businesses that are seeking to combine assortment media and delivery into a winning growth equation.
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Marketing
09 June
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.
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