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Grocery Stores? Wal-MartKroger What’s the Difference.

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Presentation on theme: "Grocery Stores? Wal-MartKroger What’s the Difference."— Presentation transcript:


2 Grocery Stores? Wal-MartKroger What’s the Difference

3 Retail Meat Marketing Is there a system to the madness? How is the grocery store set up? In the past –Stores were set up to attract a certain clientele –No attention to flow or customer traffic

4 Retail Meat Marketing Now –More focus on consumer traffic patterns –More focus on perishable departments Food Court set ups –Are you price driven or quality driven –Specialty Stores Whole Foods Mexican Grocery Stores

5 Check-out Stands Produce Deli / Bakery Meat Department / Lunchmeat / Frozen Meat Milk Dairy Products Bread / Soda Frozen Foods Entrance Chips / Snacks Controlling Customer Traffic

6 Food Court Set up Entrance Produce Deli Dairy / Cheese Bakery Meat Department Milk / Frozen Foods / Dairy Products Soda Chips / Snack

7 Grocery Store Secrets Fresh Baked Bread or Home-cooked food odors Larger shopping carts End caps or wing displays are not always on sale Mark down the big items (milk, bread, eggs, toilet paper)

8 Grocery Store Secrets Shorter isles Name brands toward the bottom Pairing foods (apples w/ caramel; cheese w/ ground beef) Expensive liquor cabinet

9 Classification of Consumers Students –Cheap and easy Adults –20 to 30 somethings; out of school; more money want some quality, healthy, environmentally friendly –40 to 50 somethings; established in life, family; label readers, quality –Golden years; quality, healthy, portion size Women –Tend to be label readers, functional foods, more brand conscious

10 Classification of Consumers Men –Price driven, easy, can be very brand loyal Locovores –Locally produced and grown foods Foodies –High quality, price not important, rare foods

11 Classification of Consumers Vegetarians –Total Vegetarians; no animal foods –Vegans; no animal foods or animal derived foods –Lacto-vegetarians; dairy products –Lacto-ovo-vegetarians; eggs and dairy –Pesca-vegetarians; fish –Pollo-vegetarians; chicken –Fruitarian; only products where something did not have to die

12 The Super Store Individual stores –Bakery, Produce Stand, & Butcher Supermarket The Super Store –One Stop Shopping –Wal-Mart Supercenter, Meijer, Super Target, Big K (K-Mart)



15 Focus on the Meat Department Should have specific set up Ground Beef and Chicken toward end of the traffic flow Will re-arrange meat case to focus on seasonality –Focus on middle meats in the summer –Focus on roasts in the winter

16 Evolution of the Meat Department Butcher Shop Supermarket Personal, one on one service Combination meats and deli Self service case Fresh meat Carcasses to boxed meat Now totally changed

17 The New Meat Department What’s for dinner 4:30 meal problem –>70% of Americans do not know what they are having for dinner at 4:30 pm Products needed to solve this problem Homemakers have 15 minutes to prepare dinner

18 Solving the 4:30 Meal Problem Convenience –User friendly –Heat ‘n Eat –Ready to Eat –Pre-flavored –Pre-marinated

19 Returning to the Kitchen Food Network Foodies –Looking for high quality beef –Difficult recipes Adding recipes to the packages –Recipe Peel Labels

20 Other Trends/ Niche Markets Organic Natural Grass/ Forage Fed Free Range Greenhouse Cattle Predator Friendly Animal Compassionate Kentucky Proud No added nitrites

21 Organic Meats 2010 total sales increased 1%, organic 7.7% $28 Billion in 2010 Requirements –Fed 100% Organic feed and Pasture –No synthetic pesticides or fertilizers –No GMO’s –No sewage sludge as fertilizer –No irradiation of final product

22 Natural Meats USDA states Natural is “do not contain any artificial ingredients or are minimally processed, such as those that are smoked, roasted, frozen, or ground” No antibiotics, or growth promotants are in the new volunteer definition

23 Grass/ Forage Fed More Popular Lower levels of Saturated fat Higher Omega-3 Fatty Acids 90% of the animals energy must come from forage

24 No Added Nitrites Carcinogen (MIT Study) –40#/ d for 40 years to develop cancer Add sea salt, vegetable purees which contain natural nitrites

25 Another Trend in Grocery Stores Whole Foods Farmers Markets

26 Top Retailers in 2010 1.) Wal-Mart = $307,736,000,000 2.) Kroger = $78,326,000,000 3.) Target = $65,815,000,000 4.) Walgreens = $61,240,000,000 5.) Home Depot = $60,194,000,000 6.) Costco = $58,983,000,000 7.) CVS Caremark = $57,464,000,000 8.) Lowe’s = $48,175,000,000 9.) Best Buy = $37,110,000,000 10.) Sears Holdings = $35,362,000,000

27 Top Grocery Stores 1.) Kroger 2.) Safeway 3.) Supervalue 4.) Publix 5.) Ahod 6.) Delhaize 7.) H-E-B 8.) Shop Rite 9.) Whole Foods 10.) Aldi

28 Lab this afternoon; Get out!

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