The combination of good quality and lower prices does not just work for retail brands like Tesco. In Europe, the deep discounters such as Aldi and Lidl continue to gain share in the food retailer segment and the format is now growing rapidly in most countries.
Click here to read a case study on mb-blog.com on the impact of deep discounter competition on one traditional retail brand.
Again, however, big differences exist between formats by region. In Europe, Aldi is reliant on the strength of its own brand goods, whereas in the U.S., Wal-Mart utilizes its scale to offer low-priced branded goods (often in variants unique to Wal-Mart). A big difference between European deep discounters and those in the U.S. is the nature of the shopper. In Europe, this store type appeals to a broad cross-section of consumers, in the U.S., discounters are still heavily reliant on low-income shoppers.
Click here to read a discussion on mb-blog.com of the different strategies employed by the differing retail brands.
Brand marketers must adopt different strategies and tactics depending on retail brand and store type in order to be successful. A good understanding of in-store shopping behavior and how point-of-sale influences interact with demand generation can go a long way to help brand marketers retain market share. Without compelling and differentiated brand offers, consumers are all too easily trained to buy on price alone.