Grocery stores or chains need to act more like CPG (Consumer Packaged Goods) brands to compete in the modern world. Multi-brand retailers especially in fashion have seen their margins cut short thanks to branded retailers such as Primark, H&M and Zara. Examples of grocery chains that are catering to specific needs are BIM, Trader Joe’s, Mercadona, Aldi and Lidl. In order to get to that level, grocers need to outline their corporate strategy and vision. They need to gauge customer preferences, build an extensive R&D network and develop innovations. A proper value proposition must be set out for each brand or quality tier. The company must proactively align according to the structural changes required. Scale needs to be built for each product or brand. Any existing ecosystem needs to be leveraged. For customer engagement, social media backed digital marketing is a great ploy. While organic growth is the best way forward, sometimes key partnerships and alliances can really help ride through any rough patch.

Source:https://www.bcg.com/en-in/publications/2018/why-grocers-need-to-start-operating-like-consumer-brands.aspx?linkId=52028823

Uploaded Date:01 June 2018