The Challenge Iceland was the first retailer in the UK to launch a grocery home shopping service, from a range of 2k products (primarily frozen and non-perishable items) sold in store. In order to increase its market share and attract a new customer base, Iceland introduced a new extended range of premium quality fresh foods in a number of selected locations. Our brief was to encourage non Iceland ABC1 target profiles in selected areas to leave aside their traditional preconceptions that Iceland is a down market frozen food retailer, and trial the extended range home shopping service. The Solution A direct marketing strategy targeting existing active and lapsed customers (through direct mail and email) and testing recruitment channels (direct mail and door drop), propositions, incentives and customer segments. The project communications featured strong time sensitive offers to convert and repurchase, and a service delivery charter. The Result Early results confirmed the hypothesis that more upmarket socio-economic profiles remain resistant to the Iceland offer and refocused the targeting to the more traditional Iceland profile, which yields higher conversion opportunities. Customer targeted communications proved effective in reactivating disengaged customers.

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