Kroger Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Kroger analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Kroger marketing mix, help the brand succeed in the market. Let us start the Kroger Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Kroger Product Strategy:
The product strategy and mix in Kroger marketing strategy can be explained as follows:
Kroger operates in Grocery Retail, Convenience stores, Fine Jewelry and Manufacturing. Kroger brand products are produced into three categories i.e. private selection, banner brands and value brand. Private selection offers premium quality products; Banner brands offer more than 10,000 items in Kroger’s stores and value brand deliver good quality products at affordable price. The company also offers drug and general merchandise, frozen foods, nutrition foods, and pharmacy group. Kroger has 1387 supermarket petroleum centres.
Kroger also offers financial services in personal finance, store debit and credit cards. It has different formats for different stores. This shows the product strategy in the marketing mix of Kroger. There are more than 2500 Kroger stores spread across USA.
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Kroger Price/Pricing Strategy:
Below is the pricing strategy in Kroger marketing strategy:
Kroger offers products manufactured by other companies under its brand name. The company envisages to provide products at lowest possible price under the Kroger brand.
Private label goods and services are available in wide varieties which range in different categories. Kroger continues to enhance its distribution, logistics, assortment and supplier partnerships to support lower prices for their customers. Kroger also offers a loyalty card program. Using the loyalty card, the loyal customers get to save money on purchase of general merchandise, fuel and grocery. The annual revenue of the company exceeds more than $120 billion.
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Kroger Place & Distribution Strategy:
Following is the distribution strategy in the Kroger marketing mix:
Kroger's main office is situated in Ohio. Kroger operates directly and through its subsidiaries. The company has a three tier private label model. The chain has more than 2500 supermarkets operational. The company has its presence in almost all states in United States. Kroger runs its business through supermarkets, superstores, departmental stores and Jewelry stores.
Kroger operates many food processing facilities and more than pharmacy in United States.
Kroger Promotion & Advertising Strategy:
The promotional and advertising strategy in the Kroger marketing strategy is as follows:
Kroger offers promotion activities for its customers. The company offers special saving items as weekly promotion activities. To promote the brand and create a loyal customer base the company offers the loyalty card which provides benefits to its customers in eateries and gas stations. Kroger’s offers jobs to veterans to join the Kroger family. The company claims to have employed more than 35,000 veterans since 2009. Kroger offers weekly ads savings updates via email. Kroger’s also participates in social causes by conducting charitable programs, donations, food banks for hunger relief organizations.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Kroger.
People:
The company has nearly 200,000 full time and part time associates in all the supermarkets across almost all US states. The company hires employees to play different roles in clinical jobs, technology jobs, pharmacy jobs and manufacturing jobs. The company also hires employees on hourly jobs. The company invites online applications for hiring new talent.
Physical Evidence:
Kroger has 2500 grocery and multi-department stores, discount stores, 700 convenience stores and 300 Jewelry stores. Kroger has 1300+ supermarket fuel centres, food production plants and distribution centres. Kroger’s corporate office is in Cincinnati. The company’s wide distribution chain makes its physical presence very strong.
Process:
Fundamental strategy, “Customer first” continues to drive Kroger’s business strongly and grow the business forward. Productivity is a preference for the company. Kroger has a value system which include honesty, integrity, respect, diversity and inclusion for guiding their decision-making. Company follows a consistent process throughout its 36 distribution centres i.e. Peyton distribution centres and Kroger’s internal warehousing system. This highlights the Kroger marketing strategy and marketing mix.
About Kroger:
The Kroger Company is one of largest grocery vendors in United States. The company was founded by Bernard Kroger in 1883. The company has established its headquarters in Ohio. The company has grown inorganically. The different mergers have played an important role in its growth over the years. In 1999, the company teamed up with Fred Meyer.
This merger created a supermarket chain with the widest geographic expansion and extensive variety of formats in the retailing business for food. The business principles that Kroger follows since 1883 are service, selection and value -which continue to guide the company’s operations even to this date.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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