Arla Foods' Strategic Use of Retail Media for Brand Growth

Arla Foods, a prominent dairy brand known for being farmer-owned, has been operating since the 1880s in Sweden and Denmark. Today, it includes farmer owners across seven European countries. The brand portfolio features products like Arla Cravendale, Arla Skyr, and Arla Protein, contributing to a significant revenue of €15.1 billion (£13 billion). Sarah Oxley, Arla Foods' lead shopper marketing senior specialist, outlines the company's retail marketing strategy that has played a vital role in this success.

Retail Marketing Strategy

Arla Foods focuses its marketing strategy around retail activations. According to Oxley, this approach is crucial for shaping consumer experiences with Arla's brands and fostering relationships with retail partners. She notes that the company is exploring how retailer data and media can enhance consumer experience beyond the traditional shopping mission, aiming for cost-effectiveness within the broader marketing mix.

Adapting Strategies

The company is adapting its strategy by incorporating more offsite activities to boost brand consideration and reach new audiences. Oxley highlights that the pace of innovation within stores provides new opportunities to engage consumers effectively during their shopping mindset.

Targeted Campaigns and Data Utilization

Retail media enables Arla Foods to target its campaigns more precisely. Oxley cites a recent campaign focused on increasing purchase frequency as an example. She mentions emerging gamification mechanics from retailers as a developing trend that Arla is testing to engage consumers beyond traditional formats. The company utilizes strong first-party data where available and flexibly adapts using geographical and store performance insights where necessary. However, Oxley emphasizes the need for more consistent and in-depth data across the market to unlock further value.

Creative Engagement

With stores becoming increasingly digitized, creative content has become more significant in helping brands stand out. Oxley describes creative engagement as the next “event horizon” in the retail environment, focusing on clear messaging and understanding retailer strategies to achieve branded ambitions and support retailer strategies effectively.

Challenges and Opportunities

Measuring campaign success beyond sales metrics remains a significant challenge. Arla Foods collaborates closely with its marketing and agency teams to evaluate the retail market's impact on brand success beyond immediate sales. Oxley points out the necessity for more consistent data and reporting from retail media networks to highlight key investment areas.

Overall, retail media serves as a versatile tool, driving both short-term sales and long-term brand building, while strengthening relationships with retailers. Oxley concludes that getting the balance right between data, strategy, creative, and execution can create standout campaigns noticed by both consumers and retailers.