Wednesday, September 24, 2008

Fresh & Easy Buzz Strategy Session: Professor Says Research Shows Both Price and Format Matter; Hendrick Meijer: Strategist; Prepared Foods Seminar

Strategic Marketing Lesson:

Research: Pricing and format both important variables in food retailing strategy

"Both pricing and format strategy are important when considering the retail strategy of stores," says Dinesh Gauri, assistant professor of marketing in the Whitman School of Management at Syracuse University in New York.

These recent findings by Gauri are based on research that took into consideration both the format of the store - i.e. whether it is a small convenience store, a supermarket, or a super center - and the stores' pricing strategy. Both Tesco's Fresh & Easy Neighborhood market and Wal-Mart's Marketside are mentioned in the report in terms of small-formats.

Typically, stores either adopt the 'high-low' (Hi-Lo) pricing strategy, where promotions vary week to week, or the 'every-day-low-price' (EDLP) strategy, where most items on a regular basis are consistently low priced.

Findings of the research indicate that although some combinations are more similar than others, considering only the pricing or only the format strategy in isolation fails to represent a complete picture, and the strategic implications change significantly when both format and pricing strategies are studied in combination.

Food Retailing History 103 (advanced course)

Hendrick Meijer: Food retailing innovator, format and merchandising strategist

The tale of Hendrik Meijer. Hendrik Meijer, founder of what is now Meijer Inc., was one of the pioneers of self-service grocery stores. He also introduced the concepts of the supercenter and discount store. Read about his strategic vision here: The Grand Rapids Press (Mich.)

Prepared Foods Seminar: Competitive Analysis

Market Economy: Supermarket and C-store competition
Seeking to drive less, consumers are buying more meals where they buy groceries or gasoline. Supermarkets and c-stores are working hard to accelerate that shift.

The article does a nice job of describing how both supermarkets and convenience stores are growing the fresh, prepared foods category in their respective formats. The piece also looks at the competitive threat supermarkets and convenience stores, with their growing foodservice programs, are posing to restaurants of all types.

Tesco's Fresh & Easy Neighborhood Market is featured in the article, along with Whole Foods Market, Inc., convenience store chain 7-11 and fast food chain McDonald's.

The article also offers some nice demographic and related data on the prepared foods category.

Click here to read the article from the trade publication Restaurants & Institutions.

No comments: