Kroger Marketing Mix

In 1904 the company proved a leader in the industry again by establishing it as one of the first companies to sell groceries and meat under one roof. By 1929, Kroger was operating 5,575 stores. The company opened its first superstore in Barberton, Ohio, in 1972.

In 2008 Kroger partnered with The Little Clinic to opened walk-in medical clinics and consumer health solutions inside.

Product

  • Kroger operates 15 dairies and three ice cream plants.
  • The company operates three meat plants.
  • Kroger grocery Items include but is not limited to: meat, poultry, cereal, vegetables,  soft drinks,  wine, beer, canned goods, snacks and packaged foods
  • In addition to food, Kroger store items include: automotive products, flowers, office and school supplies, kitchen gadgets and apparel, as well as home electronics, yard furniture and a pharmacy.
  • Kroger private label brands include: Private Selections, Naturally preferred, Active Lifestyle, Kroger Brands and Kroger Value.

Price

  • In 2009 Kroger invested an additional $28 million to reduce prices in its meat, produce, and beauty and health departments to save shoppers money on hundreds of popular items and help them weather the economic slump.
  • Kroger’s increased emphasis on developing cheaper private label products and prepared foods is compatible with consumers desire to eat more meals at home, and forgo higher priced items.
  • The company’s success with private brands puts it in a strong bargaining position with suppliers seeking cost increases.
  • Kroger utilizes data from its loyalty card program link our customers to savings on groceries, fuel, pharmacy needs, general merchandise and corporate brands and tailor unique coupon offers.
  • Increased sales at its Kroger sushi bars, hot soup, sandwich counters and refrigerated soups and entrees also reflect a shift in consumer behavior towards the price savings of prepared foods over eating out of the home.

Kroger Case Study

Introduction

Kroger Store originated in 1883, established by Barney Kroger of Cincinnati, Ohio.
In 1901, Kroger broke new ground that same year by becoming the first store to have its own bakery. The company was incorporated in 1902 as The Kroger Grocery and Baking Company. Would you like to take a lesson on the marketing mix?

Place

  • Kroger is headquartered in Cincinnati, Ohio
  • The company has subsidiaries located in Colorado, Kansas, Texas, Roanoke, Louisville, Tennessee, Atlanta, Indianapolis, Salt lake City, Arizona, Denver, Compton, Belleview and Westerville.
  • Kroger distribution centers are located in Delaware, Ohio, Memphis Tennessee, West Liberty, Ohio, and Simpsonville South Carolina.
  • Kroger’s Fred Meyer distribution centers are found in Clackamas, Oregon, Puyallup Washington, and Chehalis, Washington.
  • Kroger ha four Ralph’s distribution centers in California: Compton, Los Angeles, Riverside, and Paramount.
  • Kroger also has Peyton distribution centers they are found in Bluffton, Indiana, Cleveland, Tennessee, and Portland, Tennessee.
  • Kroger offers prescription refills, flowers, gifts, gift cards, digital photo developing and hard-to-find products on their websites.

Promotion

  • Kroger’s “Digital Choice Rewards” lets customers obtain free music, movies and ringtones when they use their shopper’s card to by 10 participating items.
  • The company is offering special savings on items in association with the 50th Daytona 500.
  • In 2009 Kroger ran a “Free Gas and Groceries” gift card contest promotion
  • Kroger offers weekly ads savings updates, via email.
  • Kroger is running a “March to Savings” yellow tag promotion in participating stores.
  • Kroger’s “Right Store, Right Price” slogan is consistant with its Customer 1rst Strategy.

People

  • David Dillion is the Kroger company chairman and chief executive officer.
  • W. Rodney McMullen is Kroger’s chief operating Officer.
  • Kroger employs more than 334,000 associates who serve customers in 2,468 supermarkets and multi-department stores in 31 states
  • Kroger has executed labor agreements that include cost-reducing measures such as relaxed work rules, wage progression extensions and continue to pursue fair and balanced contract settlements.  

Pysicial Evidence

  • Kroger operates 40 manufacturing plants, primarily bakeries and dairies. In addition to the supermarkets, it operated through subsidiaries, 777 convenience stores and 374 fine jewelry stores.
  • Its fine jewelry stores located in malls are operated in leased locations.
  • In addition, Kroger also oversees 87 convenience stores were operated through franchise agreements.
  • Kroger’s company website provides information on healthy living tips, recipes, and special savings promotions.  

Process

  • Kroger operates its own fleet of trucks and trailers to distribute products to its various stores, in addition to a contract with the trucking company, First Fleet.
  • Food distribution and buying takes place under various subsidiaries and divisions. These include: Inter-American Products – private label goods and Wesco Foods – produce buying.
  • Kroger has a 3-tiered distribution system. The 2nd and 3rd tiers, internally known as "Peyton’s", service retail stores and provide promotional and seasonal products. Kroger operates five "Peyton’s.
  • Kroger store has core values that guide its decision-making include: honesty, integrity, respect, diversity, safety, inclusion and involvement.
  • Kroger’s overriding plan is found in its “Customer 1st strategy”.

Published by

Tim Friesner

Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals.