Tag Archives: supermarket promotions

Market Basket Discount is Only Part of the Value Proposition

4percentAt local Market Basket stores, each employee wears the button shown in the picture.

From now until December 27, 2014, every customer receives a 4% discount on every order and every product, no exceptions.  On the sales slip when customers check out, the 4% is highlighted.

This is on top of the fact that generally, Market Basket has lower prices than its two biggest local competitors—Shaw’s and Hannaford.

Is it a marketing ploy?

Maybe…  but if it is, it sure seems successful.  The new and renovated local stores are busy with shoppers.  We asked several shoppers what they thought.  Even the most cynical shopper appreciated the lower prices, although there were a few who wondered if the prices had recently increased too.

Some shoppers also noted that they believed that Market Basket had the best and most friendly customer service. If so, then the extra 4% is only one part of their value proposition

Grocers to Discuss Digital Marketing Strategies

Progressive Grocers reported, this week, that they will be moderating a webcast during which representatives from Price Chopper, Raley’s, and SpartanNash will discuss digital marketing strategies.

The announcement goes on to explain that, “today’s grocers face the challenge of adapting to new and emerging digital technologies with an infrastructure and processes that were developed before smartphones became ubiquitous.”

The webcast will explore the various ways in which mobile and digital technologies are transforming the food retailing landscape. Topics will include organizational functions, shopper engagement, consumer perspectives on digital shopping, and how to best develop insights relative to shopping experiences.

Several of our posts have focused on digital shopping and social media marketing, and it will certainly be interesting to review a summary of the event, which is scheduled for mid-June; or, if you’re able, possibly to attend the webcast!

Additional information can be found on the PG Website.

Food Shopping Decisions: Is it Really All About Price?

Consumers may consider high prices when they “dump” their favorite supermarkets, but is it really all about price? 

In last week’s post, we commented on Consumer Reports’ naming of Wegmans as the #1 Supermarket in the USA. 

Another interesting part of that same report was a discussion on why consumers stop shopping at various supermarkets.  Last year, about 1/3 of the consumers surveyed said that they had stopped shopping at their regular grocery store…and the biggest, but not only reason, was price.  In previous years, the reasons given for ‘dumping’ super markets were poor selection or quality of items, lack of cleanliness, and long wait times at checkout in addition to price.  Some of the top supermarkets in this year’s ranking scored the highest rating on price — Trader Joe’s, Costco, Market Basket, Fareway Stores,  Stater Bros., Winco, and Aldi.

So, what truly differentiates one supermarket chain from another?  My friend Doug Hall of Innovation Engineering, has often said, “if you aren’t meaningfully unique, you better be cheap”.  Too many chains give consumers few reasons to judge them on attributes other than price.  

Still, Wal-Mart, the supermarket that most consumers think of as the lowest of ‘low prices’ also had the lowest rating of any supermarket.  Considerations that bothered Wal-Mart shoppers were out-of stocks and lack of open check-out lines.  Aldi was found to have prices 20+ % lower than Wal-Mart..