Kroger Offers Another Reminder of the Importance of Channel Diversification

Kroger
Kroger

A stressful year is winding down and Marketplace Strategy (MPS) is looking toward 2021 with hope alongside our clients. Over the past several months, we’ve spent the majority of our time working with brands to form a strategy for next year. These strategies are designed to help them recover in the necessary areas as well as capitalize on new opportunities. While planning, we discuss lessons learned during the pandemic and what the growth for e-commerce means moving forward. And, a recent headline about Kroger, allowed us to explore conversations about marketplace expansion on a deeper level. Continue reading for more on our latest reminder about the importance of channel diversification.

The Latest Retailer to be Listed as Top 10 E-Commerce Company

Kroger
eMarketer

Since the onset of the coronavirus, we’ve experienced e-commerce evolving at lightning speed. The aftermath of consumers’ reliance on e-commerce can, in part, be seen in this chart. Big names like Amazon, Walmart, and eBay are unsurprisingly highest on the list of top 10 e-commerce companies. However, it’s the bottom portion of this list that could give insight into a ‘second-wave’ of growth within the industry. Just this week, Kroger secured a mention, and we anticipate its commitment to adapting and competing with those listed above them.

Robust Advertising Platforms Make Channel Expansion More Attractive

There are several likely reasons Kroger has made an entrance to this list. The most significant being the shift in consumer behavior in the grocery category due to COVID-19. This shift has lasted throughout 2020 and we expect it to continue into 2021.

With this, Kroger is not the only grocery store on this list or popular among consumers lately. From a brand’s perspective, it will be important to consider where the demand is for their products. But it will also be crucial to identify the channels with a robust advertising platform. This is another reason Kroger is a viable channel to be named on this list. The company has established its own advertising platform and offers the opportunity to advertise on Kroger channels and across the internet.

A Glimpse into Advertising on Kroger 

MPS works with a number of grocery and CPG clients and Kroger has been a hot topic of conversation. Especially in regards to advertising. We’ve seen the most success with Sponsored Product Listings, Digital Coupons, and High-Traffic Site and App placements. Below is a brief overview of each ad type for brands to consider. 

Sponsored Product Listings 


Comparable to Sponsored Products on Amazon, these placements serve customers while they’re shopping a specific category on Kroger.com. They’re designed to boost conversions since they reach shoppers when they’re close to completing a sale. 

Digital Coupons 


This type of promotion allows brands to target shoppers throughout the funnel. They generally drive positive returns and are supported by Kroger’s best-in-class shopper data.  

Site and App Placements 


These placements are served on Kroger.com or within the Kroger app where there’s high-traffic. They are meant to drive consideration as shoppers view the Kroger.com home page, a product category, and other unique placements.

Final Thoughts 

The conversation about brands embracing other marketplaces, in addition to Amazon, isn’t unique to 2020. But, because of the pandemic and the growth of e-commerce, it has become necessary for brands to consider. 

While having these conversations internally, or with an agency partner, it’s important to not lose sight of the ‘why’. There are many benefits of expanding focus to other retailers that make 2021 the right time to do so. 

For example, the consumer experience has always been a priority for those that sell on Amazon. And, as shoppers buy online more often, ensuring a consistent brand experience across retailers will be crucial. Also, early adopters of the media platforms other marketplaces have to offer will allow them to focus on winning search. Rather than playing catch-up down the line. Finally, brands that leverage a number of marketplaces will be able to gain and apply invaluable insight across channels.

On Tuesday, December 15, at 2 PM ET, we will be diving even deeper into this topic during our next webinar. Executive Vice President of Marketplace Strategy, Greg Wolny, will share insight into which marketplaces offer the best return, how to diversify your sales channels, and more. 

If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s efforts on Kroger and other marketplaces.

Hannah West

Hannah West