Ahold's online grocer begins direct marketing campaign

Peapod, a wholly-owned subsidiary of Royal Ahold, based in the US, has launched its largest direct mail effort to date, sending pieces to more than one million households in the Chicago, Milwaukee, and New England markets.

The direct mail campaign offers discounts on services to customers through the use of promotional codes, which customers could redeem online. Peapod created the program with InnerWorkings, Inc., a provider of print procurement solutions.

"By working with InnerWorkings, we have been able to mail as many as four million direct mail pieces each year, reaching more consumers for as much as 30% less in print and mail expenses, and as a result we have been able to dramatically extend our marketing budget," said Andrew Parkinson, founder and president of Peapod.

Peapod is the leading internet grocer in the US. Currently, Peapod serves 18 markets including the metro areas of Chicago, Milwaukee, Boston and Washington (DC) and suburban New York, and communities in the states of Illinois, Wisconsin, Maryland, Massachusetts, Connecticut, Virginia, Rhode Island and New Jersey.

Other top online grocers include: Costco, Safeway, Sam's Club, and Vons.

Related article:
E-Grocer Top 10 (2004)