Greggs indicators religion in advertising regardless of monetary hit from Covid
The bakery chain has identified digital technology as a “key opportunity” to increase market share by increasing customer loyalty, menu choices and reach across multiple channels.
Greggs has announced plans to increase investment in digital channels as marketing strategy doubles after making its first loss as a result of the Covid-19 crisis.
The bakery chain saw sales drop 30.5% to £ 811.3m in 2020 and posted a pre-tax loss of £ 13.7m, well below its 2019 profit of £ 108.3m. This is evident from the latest financial update.
Greggs launched its Next Generation Greggs program in January 2020 with the aim of increasing customer loyalty, choice and access to its products across multiple channels. The strategy was based on four pillars: customer experience, food, supply chain and support teams.
As part of the strategy, Greggs will continue to roll out delivery through its partner Just Eat in all stores. In the fourth quarter of 2020 alone, revenue from company-managed branches rose 5.5%.
The company will also merge its click-and-collect service along with its Greggs Rewards loyalty program into a new app due to launch in the second quarter of 2021.
Greggs has a clear strategy for expanding his digital skills and growing in new locations, channels, and segments of the day.
Roger Whiteside, Greggs
According to Roger Whiteside, CEO of Gregg, marketing continues to play a “key role” in building awareness among the brand’s target audience.
The company also claims to have invested in a stronger team to compete in digital channels and develop its customer relationship management capabilities. New systems are to be made available in 2021.
According to Greggs, however, the store network remains the “key” to his growth ambitions. Around 100 new shops are to be opened in the coming year. The bakery chain has also identified coffee, hot items, homemade baking, and vegan alternatives as product categories it will focus on for growth.
“While we cannot escape the short-term financial impact of Covid on our business, we are determined to keep our strategic plan on track,” said Whiteside.
“[Greggs] has a clear strategy to expand its digital capabilities and continue to grow in new locations, channels and daily segments. “
Greggs was named Marketing Week Masters Brand of the Year in 2019 for successfully building brand awareness and addressing branding-related challenges.
During the turnaround, the brand’s 2018 pre-tax profit rose 15% to £ 82.6m, bringing in sales of just over £ 1bn for the first time.
