Every big metro area has that one local grocery store chain that claims to be the low price leader. Their weekly newspaper inserts are loaded with coupons which price conscious shoppers feverishly clip out because a coupon is always a good price. Around the Twin Cities our "low
price" grocery chain is Cub Foods. They've been around for about 40 years and from what I can tell began as a warehouse-type store where boxes of products were displayed with one side cut off for access when placed on store shelves. It's a logical way to keep prices low.
However, they aren't the low price leader any more. Sure, their image - using the American Typewriter font - would seem to instantly convey low prices but they just aren't consistently cheap any more. Their ads are still littered with coupons but their new low price model seems to be that of raising the regular price and then marking it down for the sale. The buy one, get one free coupon this week for a 20 oz. package of Gold 'n' Plump boneless, skinless chicken breasts comes to mind. They claim savings of a whopping $6.99! That not only seems artificially inflated but downright insanely high for 1.25 lbs. of chicken. I am fairly confident that, if it weren't for that BOGO special, I could pick up two packages for at least a dollar each less at the local Super Target store.
The puzzling fact is that people still shop at the area Cub Foods store in hordes. They did so after a very nice Rainbow Foods Fresh Store opened across the street. Rainbow's prices were equal to
or lower than on most products than at the neighboring Cub Foods store. That just goes to show that either Cub Foods has totally nailed their marketing and branding image or that Minnesotans are very loyal to certain brands.
But how, in the face of decades of successful branding and imaging, does a competitor succeed in winning over new customers? Rainbow Foods is really the only legitimate grocery-only competitor to Cub Foods in the Twin Cities. The services they offer are comparable and so are the prices but Rainbow Foods has fallen flat on their face countless times since entering the market. Their image has been all over the map and they have failed to gain footing on a community organization level (Boy Scouts, youth hockey, etc.) like Cub Foods has done so well. Rainbow has bombed, I think, because their radio ads are flat out pointless and needlessly gimmicky. The Cub radio ads feature real people and mention the specials of the week. This is one case where Rainbow would be better for imitating rather than trying to be original and unique. Grocery customers do not give a damn about unique, they want low prices and Cub Foods mentions their seemingly low prices and those numbers, voiced by a female "interviewing" Cub customers, stick with people far more than a male doing the same because women buy the bulk of a family's groceries.
But you don't have to look cheap to grab customers. Target has a simple, even classy image. They are so successful that years ago Dayton changed the corporate name to Target Corp. Which one of those two names is still around? Target has succeeded by offering not only low prices but a customer experience. The prices are comparable to competitors, the brands are recognizable but they stick out because of their customer service and image. They are the classy discount department store and, I'm guessing, are more successful in the grocery field in the Twin Cities than Rainbow Foods is or ever will be. Still, it pays to shop around so do it and find out for yourself which store gets you the best deal and listen to those radio ads - which ones grab your attention?
If you want something more entertaining, may I suggest the photos of Minnesota at MinnPics. Something fresh and engaging to look at every day.
price" grocery chain is Cub Foods. They've been around for about 40 years and from what I can tell began as a warehouse-type store where boxes of products were displayed with one side cut off for access when placed on store shelves. It's a logical way to keep prices low.However, they aren't the low price leader any more. Sure, their image - using the American Typewriter font - would seem to instantly convey low prices but they just aren't consistently cheap any more. Their ads are still littered with coupons but their new low price model seems to be that of raising the regular price and then marking it down for the sale. The buy one, get one free coupon this week for a 20 oz. package of Gold 'n' Plump boneless, skinless chicken breasts comes to mind. They claim savings of a whopping $6.99! That not only seems artificially inflated but downright insanely high for 1.25 lbs. of chicken. I am fairly confident that, if it weren't for that BOGO special, I could pick up two packages for at least a dollar each less at the local Super Target store.
The puzzling fact is that people still shop at the area Cub Foods store in hordes. They did so after a very nice Rainbow Foods Fresh Store opened across the street. Rainbow's prices were equal to
or lower than on most products than at the neighboring Cub Foods store. That just goes to show that either Cub Foods has totally nailed their marketing and branding image or that Minnesotans are very loyal to certain brands.But how, in the face of decades of successful branding and imaging, does a competitor succeed in winning over new customers? Rainbow Foods is really the only legitimate grocery-only competitor to Cub Foods in the Twin Cities. The services they offer are comparable and so are the prices but Rainbow Foods has fallen flat on their face countless times since entering the market. Their image has been all over the map and they have failed to gain footing on a community organization level (Boy Scouts, youth hockey, etc.) like Cub Foods has done so well. Rainbow has bombed, I think, because their radio ads are flat out pointless and needlessly gimmicky. The Cub radio ads feature real people and mention the specials of the week. This is one case where Rainbow would be better for imitating rather than trying to be original and unique. Grocery customers do not give a damn about unique, they want low prices and Cub Foods mentions their seemingly low prices and those numbers, voiced by a female "interviewing" Cub customers, stick with people far more than a male doing the same because women buy the bulk of a family's groceries.
But you don't have to look cheap to grab customers. Target has a simple, even classy image. They are so successful that years ago Dayton changed the corporate name to Target Corp. Which one of those two names is still around? Target has succeeded by offering not only low prices but a customer experience. The prices are comparable to competitors, the brands are recognizable but they stick out because of their customer service and image. They are the classy discount department store and, I'm guessing, are more successful in the grocery field in the Twin Cities than Rainbow Foods is or ever will be. Still, it pays to shop around so do it and find out for yourself which store gets you the best deal and listen to those radio ads - which ones grab your attention?
If you want something more entertaining, may I suggest the photos of Minnesota at MinnPics. Something fresh and engaging to look at every day.
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