Thursday, February 4, 2010

Grocery stores stuck in the middle focusing on category & brand managers.

With the consumer demand for ready-to-eat and ready-to-heat food that is prepared, portable and profitable ala the grocerant niche. Why do many grocery stores continue utilizing procedures and operating paradigms of the 70’s,80’s & 90’s that have led them to lose market share.

When grocers are relying on category and brand managers that are focusing on buying shelf space and outwitting consumers with category management or continuous category management, results will continue to slip.

When successful companies are focusing on the consumer, making adjustments addressing concerns of the consumer, they gain marketshare. The average size of the American family is smaller today than is was 10, 15, 20 years ago, however category and brand mangers continue to focus on “basket size” rather than customer, customer frequency or measurable brand value attributes.

They continue focusing on increasing check size and bundling meat in packages of 30 pork chops, a chicken and a half in a package, or mix and match- buy any 10 for $1.00 each. What’s with that do they think the industry is going backward? What family are they selling too? Do brand mangers in the grocery industry have degrees in marketing?

Consumers want small portions or portions sized for today’s family and ready-to-eat meals. Buying 10 ingredients for one entrĂ©e or side dish is the not goal of 80% of consumer Monday –Friday. With family size much smaller than it was in the 70’s and people living longer while living alone, the demand for quality food prepared continues to grow. Look at the winners, Safeway’s life style stores – smaller check average and higher frequency the same holds for Harris Teeter.

Foodservice Solutions of Tacoma, WA is the global leader in the Grocerant niche. More about us: or leave a comment or question below. If you would like to read the latest interview of Steve Johnson on Grocerant here is the link: an interview of Steven Johnson at:

No comments:

Post a Comment