Kroger Marketing Strategies: An Analysis of the Marketing Mix Elements

This report provides a comprehensive analysis of The Kroger Company's marketing strategies. It delves into the core elements of the marketing mix, including product, pricing, place (distribution), and promotion, examining how Kroger utilizes these elements to attract customers and maintain its market position. The report explores Kroger's product categories, pricing strategies, and distribution channels. It also analyzes Kroger's promotional methods, including TV advertising, newspaper ads, online marketing, and email marketing, and how these methods align with the company's target market. Furthermore, the report examines Kroger's branding strategies, including brand identity, the types of branding employed (co-branding, multi-branding, and corporate branding), and how Kroger conveys its brand identity to customers. Finally, the report analyzes Kroger's customer segmentation approach, including demographic segmentation, and discusses challenges related to this approach. The report concludes with an overview of Kroger's marketing practices and their effectiveness.

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Table of Contents
Introduction:...............................................................................................................................2
Analysis of marketing mix:........................................................................................................2
Product:..................................................................................................................................2
Pricing:...................................................................................................................................3
Place.......................................................................................................................................4
Promotion...............................................................................................................................5
Promotion methods and channels used by Kroger.............................................................5
Various channels used by Kroger......................................................................................5
Analysis of branding..................................................................................................................7
Kroger brand identity.............................................................................................................7
Identity conveyed to customers..............................................................................................7
Types of branding..................................................................................................................7
Analysis of customers................................................................................................................8
Method of customer profiling................................................................................................8
Customer characteristics........................................................................................................9
Challenges in Kroger segmentation approach......................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
Appendix 1...............................................................................................................................14
Appendix 2...............................................................................................................................14

Introduction:
The Kroger Company is famous grocery retailer of USA. It is operating in more than 1200
supermarkets across the country. The main business area of Kroger is in Midwest, southeast
and southwest. More than 1,050 of Kroger name, there are names of stores like Dillon Stores,
King Soopers, and Fry's through its Dillon Companies, Inc. auxiliary. More than 90 per-cent
of the organization's business originated from its grocery operations and rest of business
comes from its store operations i.e. Dillon works under different names in 15 states. The core
business sector of Kroger is Food and beverage sector.
Analysis of marketing mix:
Marketing mix can be described as the set of controllable factors the can be used by
the companies to attract the customers and their buying behaviours. Those controllable
behaviours are 4 P’s i.e. product, price, place and d promotion. These 4 P’s can create higher
level of satisfaction among the customers (Appendix 1).
Product:
Product by Kroger in market
Kroger is a grocery retail and convenience store offering variety of products. Kroger’s
products are divided into three categories. The categories in which products are distributed
are private selection, exceptional brand and value brand. The private selection category offers
superior quality products to the customers. Further, exceptional brand offers more than
10,000 products in Kroger’s stores and value brand provides good quality products at
reasonable price. The Kroger is also offering medicines, merchandise, frozen foods and many
more quality products at affordable price. Kroger has 1387 grocery petroleum store oil
(Brassington, F. and Pettit, 2006). Kroger additionally offers monetary administrations in

personal finance, credit and debit card. It has distinctive arrangements for various stores. This
represents the product category of Kroger which are provided to the customers.
• Kroger manages 15 dairies and three frozen yogurt plants.
• Kroger grocery items inclusive of but isn't restricted to: meat, poultry, oat, vegetables,
soda pops, wine, brew, canned merchandise, snacks and bundled nourishments
• In expansion to food items, Kroger stores include: automotive items, office and school
supplies, kitchen gadgets and clothing, flowers and in addition household gadgets,
yard furniture and a drug store.
Introduction of new products in market
In a drive to introduce more and more new products, Kroger grocery store has introduced
more than 1000 new products in household and food category to enhance the customer
experience. The Kroger store keeps on launching new products from time to time but recently
it introduced new products at speedy rate in past 18 months. They give customer greater
value for their money and quality. It is currently offering more than 30,000 products under
different brands.
Core product value benefit:
The key objective of Kroger is to enhance the customer base for the business by
providing them high quality products and important information (Kotler & Keller, 2009).
Company is focused on providing the products on the online platforms also so, company is
using digital media platforms for this manner.
Pricing:
Pricing strategy by Kroger:

In the pricing strategy set by Kroger, the prices of competitors and various pricing trends are
considered with the products provided by the company. For example, this pricing strategy is
for those products which are consumed by the customers on daily basis. Apart from this,
there is the product-bundle pricing strategy for these kinds of products. Kroger’s is using this
pricing strategy to deal with the various competitors in the market (McDonald, 2007). This
policy is also effective for the organizational objectives of providing quality products to the
customers.
Effectiveness of pricing strategy:
Pricing strategy used by Kroger is effective as customers are attracted more towards the
affordable products in recent years. Kroger is experiencing high level of growth in terms of
sales of retail products (Considine, 2004). Net earnings attributable to the Kroger Co. were
$680 million in previous year which is much figure in comparison to other companies.
Place:
Customer accessibility
The stores of Kroger are convenient for the customers to buy retail products. The
stores of the company are situated in all over the country so that customers can buy the
products easily. Not with standing its markets, Kroger manages accommodation stores and
retail establishments. The supermarkets are regular shopping plaza and comfort stores which
are situated in all over the country. They are serving the customers and their retail chains can
be found in normal shopping centres (Levitt, 1960). Kroger uses online business model with
help of social networking like Facebook, Pinterest and many more. Through these channels,
company posts about the products, and offers the products among large number of customers
feasibly.
Place strategy used by Kroger

Place strategy used by Kroger is effective as the products are approachable to general public
and countrywide as well (Powers, & Loyka, 2010). There are various stores through which
they approach to customers conveniently. The assortment of sections and areas makes Kroger
exceptionally available to vast sections of the populace.
Promotion:
Promotion methods and channels used by Kroger
Kroger offers promotion exercises for its clients. The organization offers unique saving
products and enhances the buying experience of the customers. In order to promote the brand
and make a huge customer base, the organization offers the dependability card which gives
advantages to its clients in diners and service stations.
Various channels used by Kroger
TV advertisement: Kroger publicizes on TV utilizing the trademark, "Right store, right
value." The television is a suitable promotion medium, as its popularity is amongst all the
people (Radulescu, 2012). Kroger utilizes this advantage and reach to mass number of
customers internationally as well.
Newspaper: The newspaper advertising helps Kroger in targeting definite demographics that
are conventionally more difficult to reach through other mediums. This is done by printing
advertisement regarding its products, offers, stores and many more to wide range of customer
through newspaper.
Promotion methods fitting target market:
The promotion methods used by the company are fit with the target market as the media used
by them like TV channels, newspaper and many more are always used by target customer.
For instance Tuesday is senior subjects' day at Kroger. Kroger provides 5% discount to the
customers who have age more than 55 on their Tuesday buys (Blythe, 2014). Kroger's

Customer approach puts stock in tying client data with brilliant coupon offers. The customers
of get mails on their mail address regarding important information of the products. The
thought is to offer them 'what they really purchase in the store, and not endeavouring to offer
things they have never purchased.
Online marketing strategy:
Online promotion is effectively and actively used by Kroger in promoting the brand all over
the nation. The online tools commonly used by Kroger are Facebook, Pinterest and many
more social media which public can access and approach viably.
With a specific end goal to get more activity and increment deals, Kroger frequently has
fabulous product offers like Campbell's stout soups for $1 every when customer purchase ten;
Pillsbury Plus cake blends for $0.50 per box when they purchase ten; Yoplait yogurt 6-oz
mugs for $0.50 every on purchase of ten (Clarke, 2005). The objective is that clients will
want these low-evaluated things and will buy different things at the standard cost,
consequently expanding deals.
E-mail marketing: Clients with the Kroger Plus loyalty card can get email promoting for
week after week specials including the capacity to download coupons. In the competitive
environment of the market, company is focused on the operations for society and in this way,
it gives a huge number of dollars every year to nearby schools, places of worship, and other
not-for-profit associations.
Objectives behind promotional strategy:
Increase Business: The objectives behind promotional strategy used by Kroger are to attract
the potential customers for the quality products. This can be possible only by the arrangement
of the business strategies such as operating on publicizing efforts, having extraordinary
services, or driving an online networking stream. Key objective is to attract new customers
and encourage them to buy the products on daily basis.

Growth of Sales: The objectives behind promotional strategy employed by Kroger are to
enhance sales through new customers. Because when individuals move toward becoming
clients of a business, motive is to support them to expand their expenditures (Czinkota &
Ronkainen, 2004). The main objective of the promotional activities is to use of a customer
"rewards" card that can record the purchasing actions of the customers and develop various
coupons to encourage them. Along with this, the objective of the promotional strategy is to
encourage the customers to buy more and more products and increase the sales of the
products.
Analysis of branding
Kroger brand identity:
Branding is an important part of promotion, and key for the success of Kroger. Branding is a
piece of all parts of an item - from its bundling to its site. The more reliable the branding, the
more probable the client will recall the brand (Johnson, Scholes & Whittngton, 2008). As an
effective brand, Kroger has assumption that a client will pay more for the brands which are
known for them. This trust is known as "brand value" and is profitable for the advertiser. It is
also necessary that Kroger consider all unique selling points (USPs), as these are the
effortlessly perceived parts of a message.
Identity conveyed to customers:
Kroger was proving meals class by focusing on more youthful customers who are keen on
getting ready simple, extraordinary, and tasty dinners (Kotler, et al., 2008). Kroger brand
image is known as the sustenance culture, different flavours, and social immediacy of sharing
awesome food revelations on-the-go. Offering a "taco-truck new" experience is the objective
of the company to benefit the customers from the pattern of new, tasty tasting sustenance that
is anything but difficult to plan and offer.
Types of branding:

Co-branding: It is the use of at least two brands to name another item. The ingredient brands
help each other to accomplish their points. The general synchronization between the brand
mix and the new item must be remembered.
Multi branding: The promotion of more than two brands along with the same place and
same classification by the company is known as multi-branding. In such case, brands can be
the substitutes for each other. One more things is to be considered while dealing with various
brands portfolio is that there is a consistent need of dividing the condition and productivity of
each brand and to choose how much promoting and other consumption should be done on it.
Corporate branding: Corporate branding includes marketing of different items or
administrations under the name of an organization. A corporate branding methodology
utilizes Kroger association's name and notoriety to draw buyers, rather than utilizing the
objective of a particular item (Worthington & BriSon, 2009). Corporate branding is important
for association as the best supplier of item or administration. The message of corporate
branding may be to what extent they have been doing business, the acknowledgment earned
or an innovation that Kroger has created to be a leader in industry.
Analysis of customers
Method of customer profiling:
Demographic Segmentation:
This segment of Kroger includes gender, nationality and household size. The different
elements or parameters utilized for statistic division are given below:
1. Age-Age of a man is one of most vital, straightforward and quantifiable parameter for
division. In terms of age segmentation, Kroger items are focused for various age groups for
babies, youngsters, youths, grown-ups, middle-age gathering or senior natives.

2. Demographic segmentation: Products can be made particularly for ladies or for men too.
This is sexual orientation segments where Kroger differentiates between the two groups and
causes organizations to target clients better. This is known as demographic segmentation.
3. Salary: People who purchase an item need to pay a specific cost. This relies on the buying
power of the client and whether he/she can manage the cost of it. This characterization is
finished by salary division, where Kroger creates groups by understanding the month to
month or yearly wage of the populace.
4. Religion-Religion division is utilized by Kroger to characterize and distinguish individuals
having comparable religious convictions, otherworldly needs and so on.
Geographic segment:
The Kroger (either straight or through its holdings) is operating in more than 2500
supermarkets in 34 countries and in Columbia under different banners. Kroger has developed
through organic growth and achievement. Moreover, it believes powerfully in retaining local
banners where suitable (Palmer, 2011).
The operational structure of Kroger includes various corporate offices in Cincinnati, Ohio,
and general stores. This balance keeps on promoting choices nearby the Customer while
achieving business objectives by the effective operations in order to amplify business
effectiveness and limit working expenditures.
In territories that straightforwardly control the Customer, Kroger's decentralized structure
places significant impact on marketing and working choices in our store divisions. Divisional
supervisors can focus on changes in rivalry and client preferences in the operating market.
Customer characteristics:
Lifestyle: Customers have an extraordinary aptitude in present time to get information about
products via social media, developing it more stimulating than Moreover, consumers access
information about the recognized food industry in spite of retailers’ and manufacturers’ old

efforts to retain customers absolutely involved with their brands (Ireland, Hoskisson & HiS,
2008). The shift in lifecycle is affecting the business of Kroger. Sometimes, it is difficult to
be recognized in advance. And moreover shift towards organic product is creating concern
for Kroger to deliver demanded product at reasonable price.
Social factors: This facto is essential to consider while making and executing an advertising
system of an organization. These factors frequently connected yet to the elements affect the
choices of buyers of Kroger (Shoemaker, Lewis & Yesawich, 2007). Fundamentally, socio-
cultural factors are traditions, ways of life and qualities that portray a general public. All the
more particularly, social viewpoints incorporate feel, training, law and governmental issues,
religion, social associations, innovation and material culture, qualities and states of mind.
Social components of Kroger incorporate reference gatherings, family, part and status in the
general public (Appendix 2).
Challenges in Kroger segmentation approach:
Segmentation uses the wrong variables: There are a various approaches to divide markets
and each relies upon the determination of the privilege variables. Demographic division
utilizes socioeconomics to separate a market into fragments. Organization fails to segment
the customer properly most of the times due to variation in numerous factors. The failure in
segmenting customers properly creates issues in company like Kroger to sale the products for
the targeted customers. The market has shifted i.e. Customer are changing need, lifestyle, and
many more attributes. So segmentation becomes difficult in case of frequent alteration in
requirement of segment. Most of the time, there is the need of change in distribution channels
as well. The Kroger has to incur additional cost sometime to meet the expectation of
customer which decreases profitability (Sloman & Sutcliffe, 2004). So company need to keep
on updating segments of customer to be remaining updated in market.

Issues in earning profit: The segmentation many a times are not connected to benefits. The
strategies related to the sales of the products must be related to the preferences of the
customers so that they can get desired products in the easy way. One segment might be more
troublesome and more costly to reach, or may utilize items that have a higher cost and lower
edges. The segmentation process must focus on all the aspects such as taste and preferences
and income of the customers so that the potential challenges and issues realted to sales can be
addressed effectively.
Conclusion
The best way to grow and perform in the market is to adopt effective marketing and sales
strategy by Kroger. After that Company should create strategies for functional areas inside
the marketing plan. The Kroger should also find the problem area in business as well in
marketing where they are lacking. Proper analysis should be done so that company can focus
on the improvement in marketing strategies and increase the performance of company. The
overall report describes the marketing mix strategies of Kroger along with its brand value and
effectiveness in the operating market. Along with this, the analysis of customers is also done
in the report that is crucial part of the company in the business operations.

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Appendix 1
Marketing mix can be described as the set of controllable factors the can be used by
the companies to attract the customers and their buying behaviours. Those controllable
behaviours are 4 P’s i.e. product, price, place and d promotion. These 4 P’s can create higher
level of satisfaction among the customers.
Marketing Mix
Appendix 2
Customer profiling is the process by which marketers decide correct and proper
strategies and tactics to meet specific requirements of the customers. Based on the marketing
perspectives, customer profiling is important to get relevant information about the potential
customers.
Customer profile Analysis