LMG poised to revamp Nectar loyalty strategy

Nectar, the biggest loyalty scheme in the UK, is understood to be reconsidering its business model amid fears consumers are not fully using their reward points.

The company has approached several agencies asking for views on the future of loyalty schemes in the UK. It is likely that it will hold a below-the-line pitch before the end of the year or early in 2007.

A Nectar spokeswoman says: “We are in the very early stages of talking to agencies about reinvigorating our brand. We want to better understand consumer perceptions of Nectar.”

Nectar’s parent company Loyalty Management Group (LMG) is gearing up for a major, global roll-out of the Nectar scheme after its apparent success in the UK (MW January 19).

Nectar has more than 50% market penetration in the UK and it wants to launch the brand into markets such as the US, Japan, Germany and Italy.

LMG appointed customer marketing director John Sheekey as marketing director in the summer, following the departure of Richard Campbell.

Campbell, who has been the company’s marketing director since it launched Nectar in 2002, left without a job to go to. Nectar launched with founding sponsors Sainsbury’s, BP, Debenhams and Barclaycard.

Nectar has been using animated characters The Nectars in its advertising since April. WCRS handles the brand’s advertising, Starcom its media and Barraclough Edwards Chamberlain is its direct marketing agency. Direct marketing shop Keevil Barton Kershaw is also on the company’s roster?

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here