Supermarket industry.
Title: Supermarket industry.
Category: /Business & Economy
Details: Words: 3504 | Pages: 13 (approximately 235 words/page)
Supermarket industry.
Category: /Business & Economy
Details: Words: 3504 | Pages: 13 (approximately 235 words/page)
The overall emphasis on non-price characteristics and the relative
importance of the different characteristics in all countries provides
opportunities for retail managers to differentiate their firms away
from pure price competition. These consumer responses have been
important in shaping the marketing strategies of the food retail
companies and have allowed a range of strategies which range from an
emphasis on discount prices, to pure quality and service
considerations. These strategic directions are strongly supported by
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variety of circumstances which
could provide an appropriate environment. The following reasons are
adopted from a recent review (Eurofood, September 1993):
(i)Where leading brands charge 'excessive' price premiums.
(ii)Where there is difficulty in adding value to commodity items.
(iii)Where high margin products are not synonymous with the image of
the retailer.
(iv)Where products and prices are easy to compare for
performance.
(v)Where there are high advertising costs for the market
leader.