Kroger's Marketing Strategy

Touro University International

MKT 501

Module 1, Case Assignment

Dr. Giuseppe Marelli

INTRODUCTION

The purpose of this report is to offer my suggestions on Kroger’s marketing strategy. In this report I will include comments on how the company should target cost-conscious consumers with products such as: discount/generic drugs, private label brands, and organic food line. I will conclude this report with a brief summary of the entire analysis, highlighting some of the more significant parts that the report contains.

MARKETING STARTEGY

“Kroger’s competitive strategy is that of a low cost operator that is able to sell at relatively low prices and still generate good financial return based on their cost structure. Supporting this marketing strategy of focusing on the customer.” They call this as their “Customer 1st” strategy. This marketing strategy has driven sales upward and has helped the company to offer lower prices without negatively affecting financial returns. The main key ingredient of low cost and low selling prices is the fact that Kroger offers the most extensive variety of private brand products offered by any of the traditional grocers. “In the most recent quarter private label represented almost 27% of the company’s grocery sales.” (Duff) This strategy has worked extremely well for Kroger. According, to Terry Schumacher, for the last several years identical stores tend to be in the mid-single digit range which are notably better than rival Safeway and SUPERVALU.

MY OPINION

A good marketing strategy for any company to adopt, in an effort to be successful, is to understand who your customers are and what needs they would be looking to gratify. In other words you must determine who your target audiences are. Then you must create your strategy to match the strengths of your company to compliment the needs of your customer clientele. Identify the consequences, is this something that the company can accomplish...