Marketing strategies used by the best grocery store chains
The domain of supermarkets is a truly ruthless one. If you attempt to look at a list of the largest ones, what you will come upon is something like the top 100 supermarket store chains. At the very least, this gives you an idea about how giant this sector is. A number of the businesses in this market are tremendously large as well, with the largest being the largest employer in the United States, upkeeping over one million staff. An over loaded market in general implies low prices, and the largest enterprises can count on vast economies of scale, so that a tiny 1% profit margin can mean hundreds of million in net gain. But for a smaller grocery outlet, this may not be achievable, so smaller chains have to trust in sophisticated marketing techniques to remain afloat (though, for that matter, so do market leaders to continue to be where they are). We recommend to go through a number of marketing techniques that supermarkets have employed, which range from small promotional offers to altering the very means by which they reach customers, to give you a sense of how competitive this market is.
Ever since a certain enterprise started selling books online, everything changed. Suddenly, we can order everything online. Food is no exception. Online grocery delivery is becoming extremely popular on the marketplace. There are things to consider for firms though – on one hand, more staff, more infrastructure, more capital is necessary to create the system of groceries delivery to your door, but on the other hand, and here is the glorious part, you can stimulate customers to establish a continuously repeated order so that every week you deliver the same products to your customers. An almost implicit loyalty loop is entrenched. David Potts’ company does something like this.
Positioning is almost everything in marketing. If you can persuade your customers that what you sell is organic health food, then you are good. Do not brush aside this task, for merely selling organic food is not enough. Actually, your overall strategy needs to revolve around creating an image so that in the consumer’s mind a convincing picture is painted posting you among the ranks of the best organic supermarkets. If you are hunting for a good example of this, you do not have to search far, as you are likely to come across a supermarket from the chain John Mackey established not far from you.
Intermittently, you might receive free coupons by mail from your neighborhood supermarkets, goading you to go and spend. This is a great method that many companies in this sector make use of. You might think there’s nothing particular about it, and indeed, perhaps there isn’t, but it is an extremely effective technique. Some might presume there is some form of scam involved, since a supermarket would not readily want to lose potential. The reality is nearer to simple arithmetic; a vast majority of grocery coupons are actually never utilized. But they get consumers to occasionally purchase more thanks to the savings. Jean-Charles Naouri is the CEO of a major supermarket chain that utilizes this strategy.
