Market Penetration – Increase Spending for Advertising,
Credit Card Emphasis – Increase customer loyalty, Increase market share
*Check out
advertising expenditures/market share
-Increased spending for advertising (including emphasis on
credit card/point system) through TV ads, in-store promotions,
newspaper/mail-outs?
Market
penetration is another strategy option that Kroger should pursue. We feel that a good way to accomplish this
would be by increasing the companies spending on advertising. We would also like this advertising to focus
on the new credit card that Kroger has introduced. This is an innovative credit card where points are awarded for
spending money anywhere, but more points are awarded for shopping at Kroger and
buying Kroger brands. If these features
can be presented in the advertising it can help increase customer loyalty as
well as bringing in new customers to further increase market share. The advertising can be done in a variety of
mediums such as television ads to increase awareness and reach new audiences
and in-store promotions to reach our current customers and let them know about
the benefits that are available to them.
Horizontal Diversification – Strategic Alliance with
Starbucks, and Financial Institution –Enhance customer experience, Increase
customer loyalty
-Gain strategic alliances with Starbucks and
financial institution (partner with a bank-help them get a foothold?)
-Create a one-stop
shopping experience
-Enhance customer
experience and increase customer loyalty, which increases profits, etc.
A strategy option we think will
really help Kroger compete and stand out in the supermarket industry is horizontal
diversification. Kroger should look at
the possibilities of forming a strategic alliance with Starbucks and a
financial institution. If Kroger were
able to partner with these companies they could place them in their present
Kroger locations making Kroger a more convenient one-stop location for
customers. Having these two partners
would help enhance the customer’s shopping experience and thus increase
customer loyalty. Picking a smaller,
more local bank to partner with could also help enhance the public image of
Kroger by helping the smaller branch get a foothold. This would show that Kroger has concern for the communities where
they are located.