Kroger Deploys Digital Campaigns at Point of Purchase with LEAP Platform

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In the grocery industry, where margins rarely exceed 3 percent, innovating to generate revenue is vital. In 2018, Kroger installed its EDGE shelves in 100 stores of its Cincinnati division. In concert with the roll-out, Sunrise Technology launched its digital ad platform, LEAP. LEAP provides advertisers the ability to build targeted digital campaigns for educating and inspiring consumers at the point of purchase. Since launching LEAP, 15 CPGs have been on-boarded and are planning paid campaigns.

Nominating Company: The Kroger Co./Sunrise Technologies, LLC, Cincinnati, Ohio
Venue: Cincinnati/Dayton Division of Kroger, Cincinnati, Ohio
Project: EDGE and LEAP platform programs
Category: Retail Environments

BACKGROUND
LEAP was developed as a new avenue for advertising revenue in-store, making retailers the newest publishers of digital advertising content. EDGE shelves are digital projection screens designed to easily integrate into retail stores. In 2018, Kroger rolled out EDGE into its entire Cincinnati Division (3 million people in stores per week).

The current deployment of EDGE with LEAP in Kroger stores has been successful in testing the technology’s viability – attracting 15 $1 billion+ revenue CPGs – and scalability at a national and global level. Since launching, additional interest from the movie industry, brands interested in promoting complementary products, and local business advertising have fueled additional opportunities for in-store revenue generation.

In addition to working with Kroger, Sunrise Technology has partnered with more than 30 retailers across six continents to test EDGE. These retailers will be connected through LEAP, giving advertisers a global platform from which to market their products.

CHALLENGES
There was no automated process to display digital advertisements in-store. Retailers needed to bridge a gap between advertisers’ desire to display ads at the click of a button and retailer’s drive to grab customer attention. No platform existed that could be used globally to increase sales uplift and brand/category awareness in-store – two key metrics for CPGs.

Digital display technology can have a difficult-to-achieve ROI, even harder to sell to retailers who have small margins for profit, making new investment decisions critical to success.

Most CPGs’ in-store advertising relies on “trade” dollars that are allocated based on retailer. Store associates were not familiar with EDGE and LEAP technology. Implementing a successful revenue-generating tool meant training associates and shifting paradigms for in-store tagging and maintenance.

LEAP Ad platform pic2SOLUTIONS
Using live, in-store testing, Sunrise Technologies was able to develop best practices for retail advertising using EDGE, which kept customer interests at the center of creative content. These best practices are applied to all new and upcoming advertisements uploaded through LEAP.

Working with Kroger’s Cincinnati Division leadership, training sessions and implementation strategies were developed to quickly and efficiently train associates on the use of handheld devices connected to EDGE and LEAP. Additionally, a “compliance report” was created to monitor execution. This report is used with team leaders to identify areas for growth and to better understand the operational side of LEAP ad execution.

The operational efficiencies of EDGE were complemented by the advertising revenue potential for LEAP and greatly improve the ROI of an EDGE shelf installation. The rest of the solution consisted of working with CPGs to understand the benefits of LEAP such as incremental sales uplift, ROAS analytics, and ad impressions.

RESULTS
To date, we have seen the following results:
– Increased brand and category awareness among shoppers exposed to LEAP advertisements on the shelf.
– Increased customer satisfaction with in-store experience and availability of information.
– Additional store revenue from increased sales. (endcap products had incremental sales uplift, and were higher with products following best creative practices)
– Additional store revenue from advertisers for execution of LEAP on EDGE-enabled endcaps.

LEAP is in 100 stores already. Imagine the impact on a CPG of 10,000 stores with LEAP.

PROJECT PARTNERS
84.51 (Tian.Blunt@8451.com) – business case development and lead generation

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