Will a brand refresh make Shipt a household name?

Discussion
Photo: Shipt
Feb 07, 2020
George Anderson

Shipt, the same-day delivery service founded in 2014 and acquired by Target in 2017, has ditched its rocket ship imagery and rolled out a new green shopping bag graphic as part of a broader refresh for the brand.

The service has seen its reach triple since being acquired by Target. Today, Shipt serves customers in the contiguous 48 states and Hawaii. Over the past year, it has added 29 retailers to its marketplace, delivering an expanding list of products to the homes of American consumers. In addition to making same-day deliveries for numerous grocers and Target, Shipt has added retailers such as CVS, Office Depot, Petco and Sur La Table to its roster.

We are now available to more than 70 percent of households in the U.S. and we’ve set our sights on becoming a household consumer brand,” said Shipt CMO Harley Butler in an email exchange with RetailWire.

Mr. Butler said the service’s new marketing campaign theme — “Over-delivering Delivery” — is “an accurate representation of the people-centric company” that  Shipt’s customers see every day.

“Shipt goes above and beyond for customers. We’ve heard this for years and we know it’s a huge differentiator for us,” he said. “Whether it’s a shopper texting to check the customer’s preference on the ripeness of bananas or our 24/7 Experience team on the line to help customers and shoppers, our team works tirelessly to deliver an amazing experience every time.”

Later this month, Shipt is launching an ad campaign featuring 10 video vignettes demonstrating its commitment to its customers. The videos will be repurposed for television, digital channels, social media, radio and out-of-home on a national and local basis.

“As we continue to evolve as an organization, we need a brand that helps consumers identify us and build our business,” said Mr. Butler. “As we have scaled our operations nationally, it now felt like the right time to make the investment to show who we are, what we do and the quality in how we do it.”

DISCUSSION QUESTIONS: What is your take on the timing and direction of Shipt’s brand refresh and marketing campaign? What do you see as Shipt’s future prospects, and what will that mean for the brand and Target?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"Using a familiar image like a shopping bag communicates 'we’re normal, not from outer space.'"
"Whatever we do in terms of delivery and single-use products, let’s raise awareness of these issues and be careful not to greenwash."
"Same-day delivery is a valued service, but it is not the only thing customers are seeking. Quality, freshness, pricing and in-store experiences matter as well."

Join the Discussion!

9 Comments on "Will a brand refresh make Shipt a household name?"


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Art Suriano
Guest

As same-day delivery is becoming more competitive, Shipt sees a demand it can meet by offering more service. To be able to not only check on delivery but, as the article says, the ripeness of the bananas gives the customer an extreme level of comfort. There is no doubt that Shipt has tremendous possibilities and can grow into a very successful company. However the cost to the consumer, whether directly or passed on indirectly, will be an issue as other competitors, as well as the retailers themselves, pursue same-day delivery.

Dr. Stephen Needel
BrainTrust

I’d like to be excited and I will be, as soon as I stop yawning. A new logo is not what the company needs. Advertising may be what they need. And a fundamental change in the way most Americans get their groceries is definitely what they need – don’t see anything that says this will make that happen.

Ben Ball
BrainTrust

The graphic refresh makes sense. Grocery shopping is the hardest nut to crack in home-delivery by far, get that business and the rest is easy. And grocery shoppers don’t want to see spaceships delivering their milk — at least not yet. Using a familiar image like a shopping bag communicates “we’re normal, not from outer space.”

Suresh Chaganti
BrainTrust
Suresh Chaganti
Co-Founder and Executive Partner, VectorScient
8 months 19 days ago

I like Shipt’s easy to understand plans and its value proposition. The store selection is pretty minimal. There is a difference between reaching 70 percent of households and including the stores that the 70 percent of households want. In my zip code, it is available from only a handful stores. Obviously having someone like Target back them up is great. But this is a game for very deep pockets. So it is more in Target’s strategic interest to invest farther, rather than Shipt’s own ambitions.

Cynthia Holcomb
BrainTrust

There are two interesting aspects of Shipt. Target groceries are lackluster at best. Shipt is the equivalent of Uber in terms of hiring contractors to deliver groceries. According to the Shipt website, there are no minimum order requirements and Shipt Shoppers are independent contractors who provide their own coolers and gas. Unfortunately for contractors, most insurance companies do not cover vehicles while delivering Shipt groceries. Hmm. What challenge will unfold first? Non-insured Shipt Shopper accidents? Sustainability and climate blowback for carbon emissions? One-hour delivery becoming a bad word? The good news for consumers is one of the few job requirements is “Knowledge of produce selection.” No background checks mentioned.

Ananda Chakravarty
BrainTrust

Good move towards competitive delivery. Love their “over-delivering delivery” tagline — it expresses that they’re providing delivery service — but with the service. This slams down everyone else and highlights their genuine white glove treatment making it more appealing. Their business model is nice too — specifically because they’re opening up their services to other retailers like CVS and Petco. And lastly, they are advertising their new brand and marketing it during a time of high demand for last mile delivery – which will only increase. It’s not same-day service but the quality of service as well. They’re building a nice niche as a premium player in this space and that will eventually let them charge premium prices.

Brandon Rael
BrainTrust

Regardless of any brand refreshes, Shipt is well-positioned to experience some significant growth over the next several years, thanks in part to the acquisition by Target, as well as the increasing demand for same-day fresh grocery and produce delivery services. Shipt has seamlessly become part of the Target value proposition, and they have the ability, resources, financial capital, and infrastructure to expand their capabilities and partner with some of the key players in the grocery and produce space.

With that said, there is a price to pay for same-day delivery services, and more often than not, this is reflected in annual fees as well as additional fees that are embedded within the grocery store’s pricing strategies. Same-day delivery is a valued service, but it is not the only thing customers are seeking. Quality, freshness, pricing and in-store experiences matter as well.

Liz Crawford
BrainTrust

While the business makes sense and is likely to succeed, even potentially giving Amazon a run for the money, I am not too happy with the green bag logo. It seems to imply “eco-conscious.” Sure local deliveries create a smaller carbon footprint than long-distance deliveries, but there are a few other issues in play as well.

The website shows a reusable green bag, delivering groceries. However, when I text-chatted with a representative, they claimed that the deliveries come in “whatever bags the retailer uses.” I asked about voluntarily re-using my own bags; but no, they don’t do that (according to the person I chatted with).

Delivery services, in general, are challenged to become more eco-friendly (see Amazon’s efforts). But the speed of delivery coupled with more trips for single-use items add to the environmental impact. Whatever we do in terms of delivery and single-use products, let’s raise awareness of these issues and be careful not to greenwash.

Craig Sundstrom
Guest

“…Has seen its reach triple…” What’s that old song, “nothing times nothing…?” OK, I’m being cruel (and inaccurate, at least literally); but more to the point, I don’t think it’s a well known brand, and I don’t expect it to be. Regardless, when people buy a product from a retailer, they associate the entire transaction with that retailer, even if there’s an intermediary involved. So if Shipt becomes wildly successful — or a total failure — it will be because of its relationships with companies it delivers for, not the consumer.

wpDiscuz
Braintrust
"Using a familiar image like a shopping bag communicates 'we’re normal, not from outer space.'"
"Whatever we do in terms of delivery and single-use products, let’s raise awareness of these issues and be careful not to greenwash."
"Same-day delivery is a valued service, but it is not the only thing customers are seeking. Quality, freshness, pricing and in-store experiences matter as well."

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