Nectar re-brands and targets 'treats and fun'

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By: Wise Marketer Staff |

Posted on August 6, 2007

Nectar re-brands and targets 'treats and fun'

The UK-based retail coalition loyalty programme Nectar is to undergo a major re-branding on its fifth anniversary in September, featuring a redesigned logo to go with a new-look Nectar card, and a range of new rewards options focusing on the idea of 'fun and treats'.

According to Nectar's operator, Loyalty Management Group (LMG), the new brand identity will be supported by the biggest marketing campaign conducted since the programme's launch five years ago. This £7 million campaign will roll out over a period of several months through direct mail, hands-on contact, points of sale, digital marketing, and various media channels (both traditional and digital).

The new face of Nectar Nectar's new identity is intended to reflect a clear association with rewards, moving toward a more emotional relationship with cardholders. LMG says that this move was largely driven by market research and consumer insights that found that Nectar cardholders prefer to be rewarded with personal treats.

Rewards will be repositioned as "treats" and, in addition to the core rewards already available, the programme will begin to introduce new 'Star Treats' and 'Star Treat Giveaways' (promotional campaigns) that will run at various times year-round. Star treats are expected to add more value to existing rewards by offering special deals, while Star Treat Giveaways will tend to be of high perceived value and be aspirationally-focused.

New cards to be issued The re-branded image will be revealed to Nectar collectors via a "Recard Pack" mailing. There will also be a great deal of in-store support from Nectar sponsors, and the Nectar web site itself will also be completely revamped in line with the new image.

According to Brian Sinclair, managing director for LMG, "Nectar is a constantly evolving brand and the fifth anniversary is a great opportunity to demonstrate this through a new brand identity. Our focus for the next phase of the Nectar lifespan is to concentrate on what extra benefits customers want from the programme. Our ongoing research has shown that cardholders want to be rewarded personally for their loyalty, especially when spending on shopping for essential and everyday items."

The story so far Since the programme's fanfare launch in 2002, Nectar has grown rapidly, and now has 15 sponsor partners. During its first five years of operation, the programme has given back over £850 million worth of rewards - a total which LMG expects to reach £1 billion by the end of 2007.

Over that time, the programme has also evolved its redemption options from predominantly voucher-based rewards to instant swipe and online redemptions, and built up an online store with more than 100 popular e-retailers offering Nectar points.

The High Street retailers and service companies involved in Nectar currently include Sainsbury's, Debenhams, BP, Ford, EDF Energy, Hertz, Thomson, Brewers Fayre, Beefeater, American Express, Talk Talk, Dollond & Aitchison, the AA, Thomson Directories and Gala Bingo. The online retailers participating in the Nectar eStores web portal include Amazon, eBay, Dell and CD WOW.

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