![]() ![]() Customers who shop at Kroger have the advantage of being able to buy a variety of products from one place because of the array of options available. This top level has flavors and selection of products that would not be found in the value level. ![]() The Private Selection Brand is available on the high end of the customer-income level spectrum variety and value is added over the brands from the other levels. When compared to the two lower income level brands, the Kroger Brand offers extras in value such as gluten-free and organic properties. For the middle-level income customers, the Kroger Brand is available. Through these brands, the customers can get basic food and health necessities using a simple budget. For example, the ‘Check This Out’ and ‘Psst’ brands, which were previously known as Kroger Value, are available for the lower income level customers. This company is able to serve customers from all income levels through the aspect of cost leadership. The business level strategy applied by Kroger is designed to have a broad reach in the market. Here, the company offers prices that are lower than those in the traditional grocers and other competing supermarkets. Kroger has used this ‘Customer First’ strategy for the better part of the last decade by focusing on the assumption that the top desire for all customers is affordability. The ‘Customer First’ strategy used by Kroger is vital for driving up sales through effective application of economies of scale (The Kroger Co., 2017). For this reason, Kroger can maintain relatively low prices without compromising on revenue. Superiority in value and quality service delivery in the supermarket business requires a company to create and utilize unmatched resources and competencies. The business strategy applied by Kroger can be described as best-value that incorporates a combination of attributes such as quality product and service, competitive prices, and appealing other features. Boomers and millennial, for example, are more focused on food that is prepared with creativity (Lutz, 2015). However, other traditional supermarkets have been losing their customers to warehouse chains and grocery stores because they do not provide the desired assortment or value of products similar to that offered by Kroger. This strategy has also succeeded in other supermarkets such as Aldi and Costco. This supermarket chain manages to keep the prices low for most of its products because of the adopted strategy of offering private-label products. Kroger is known for qualities such as their loyalty program, excellent customer service, as well as an extensive selection of products. One of the strategies that this store has been using to retain the top spot despite the transition of the industry away from supermarkets is to offer a variety of organic food. Over the years, this supermarket has posted higher sale values than the other stores to become the country’s top retailer for natural and organic food products (Lutz, 2015). Kroger has continued to thrive in the grocer-stores market despite the stiff competition from other fast-rising stores such as Trader Joe and Whole Foods. However, these efforts to appeal to more customers can be contrasted with other approaches that target a niche of potential customers. Companies apply various strategies such as differentiation strategy and cost leadership strategy to attract more customers and gain a competitive advantage over rivals. ![]()
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