The price war of the distribution chains

The economic pressure experienced in recent years has caused consumers to focus on saving and change their habits to pay less money for their shopping basket: change brands, compare prices, look for promotions and change where they buy.

The leaders

As a consequence, food distribution has undergone a strong transformation of its business model, which has led to an acceleration in the development of private labels and has made the supermarket the preferred commercial format for much more austere consumers. Two changes to which Mercadona has been able to adapt, since in 2008 it decided to reduce expenses to lower the price of its products. A strategy that has made it possible for the giant chaired by Juan Roig to already have a market share of 21% in Spain.

In this sense, the only food distribution chains that increase their sales are the discount ones, while they decline in the rest. According to the annual report ‘Worldpanel Distribución 2013’, in Spain Mercadona, DIA, Alcampo and Salvamas were the most dynamic brands in 2012, as they have not only increased their market share, but also have more and more loyal customers . These four distribution chains, which have in common a clear focus on price, have also grown by having expanded their retail park in the last year.

The followers

Even El Corte Inglés has begun to lower prices to the maximum. Nine months after initiating a downward revision campaign for the prices of its products in El Corte Inglés, Hipercor and Supercor establishments, the emblematic distribution brand has taken stock of the results achieved and has confirmed that the strategy “is will keep permanently.

The strategy of ‘search, compare and if you find something better, buy it’ that Manuel Luque, former general director of CAMP, popularized in his day to advertise Colon detergent, has spread widely among the brands in the sector. Along these lines, Caprabo has recently launched an app to steal customers from Mercadona. The supermarket chain controlled by Eroski wants to show that it can be as competitive as Mercadona with the comparison of more than 2,500 references.

the mexican market

In Mexico, there are four supermarket chains with a significant share, Walmart being the largest of them both in terms of geographic coverage and market share (47%), followed by Soriana (18%), Comercial Mexicana (10%) and Chedraui ( 9%). The four brands follow very aggressive policies in terms of competitiveness, promotions and pricing strategies, which, although it has affected their margins, allowed them to obtain average growth of 10% and 9% in sales and Ebitda, respectively, in 2012 .

Most of these chains have a multi-format strategy, although Wal-Mart is the only one that has been able to reproduce all of its formats throughout the country, which has allowed it to expand its customer base and increase its market share.

“Currently, the Warehouse and Discount Store sector presents a very interesting area of ??opportunity for Walmart, since due to its size it can compete with popular markets, corner stores and mini-supermarkets,” explains Paola J. Sotelo. Bodegas Aurrera is the largest Walmart Group brand in Mexico. Its main strength is to have positioned itself as the chain of low prices. His communication can be described as empathetic and honest, generating an impression of accessibility for Mexican households.

The benefits

The main benefits of a strategy of PBTD (Low Prices Every Day) for the distributor are clear:

  • Achieve customer loyalty by passing on cost reductions to consumers in the form of lower prices and not confusing them with ongoing claims and discounts.
  • Improve inventory management, avoiding excess stocks, as demand is more predictable.
  • Reduce advertising costs as there are no constant offers.
  • Improve the perception of quality and the value of the products, by not applying strong discounts on the original price.

Competitive pricing intelligence

But, in this context of generalized price reduction: nobody creates value? If everyone looks only at the price, who offers something different?

Most people move not only motivated by the price of an item but by the value it represents for them. The perception of value that a product or service has begins in the minds of people. For this reason, on many occasions the best-selling products or services are not exactly the cheapest. Research shows that consumers respond not just to price, but to how fair they think it is.

Competitive pricing intelligence is based on the use of analytics to create and optimize a dealer’s pricing strategy, with the goal of better competing in the marketplace and improving sales.

Competitive pricing intelligence software and platforms provide dealers with the tools they need to: analyze industry pricing, extract analytics to support business pricing decisions, and measure the effectiveness of the implemented pricing strategy.

Read Previous

newsletter | Wake up 9: Making Big Data a competitive advantage

Read Next

Increased business productivity by optimizing campaign management

Leave a Reply

Your email address will not be published.

Situs Togel 4D Bo Togel Bandar Togel Deposit Pulsa hondatoto Agen Togel Deposit Ovo Togel Bet 100 Perak Bandar Togel Terbesar Toto Togel Bandar Togel Daftar Bandar Togel Terbesar agen togel deposit ovo situs togel 4d Slot Bonus 100 Situs Judi Slot Terbaik Slot Gacor Slot Pragmatic Link Slot Gacor Dingdong Togel Slot Deposit Pulsa Situs Slot Judi Online Agen Slot Online BO Togel 5 Bandar Togel Terpercaya Agen Togel Bet 100 Perak Toto Togel Agen Togel Resmi Bandar Togel Deposit Pulsa Dingdong Togel Situs Togel Terbesar Bandar Darat Togel Togel Toto Online Togel Singapore BO Togel Bet 100 Perak Agen Togel Deposit Pulsa Situs Bandar Togel Hadiah 4D 10 Juta 10 Situs Togel Terpercaya 5 Bandar Togel Terpercaya Situs Slot Deposit Pulsa Agen Slot Online Togel Hari Akun Slot Bet Game Situs Judi Slot Situs Judi Slot Resmi Game Slot Slot Game Bonus New Member 100 Agen Togel terpercaya 10 Situs Togel Terpercaya Agen Togel Online Agen Togel Singapore Togel Toto Macau Situs Togel Terpercaya 10 Situs Togel Terpercaya Situs Bandar Judi Togel Situs Togel BRI Online 24 Jam situs togel dan slot SITUS TOGEL DEPOSIT VIA DANA situs togel terbaik 5 bandar togel terpercaya bandar togel hadiah 4d 10 juta terpercaya BANDAR TOGEL HADIAH 4D 10 JUTA Situs Slot Bet 100 Perak situs bandar togel terpercaya Bandar Togel Deposit Pulsa Situs Slot Situs Slot deposit Pulsa Agen Slot Dan Togel Toto Slot Bandar Togel Hadiah 4D 10 Juta Situs Togel Online Situs Slot Togel Terlengkap Agen Slot BO Togel Agen Togel Online Situs Bandar Togel Dan Slot Situs Togel Togel Deposit Pulsa Slot Gacor Bandar Togel Lengkap Situs Slot 5 Bandar Togel Terpercaya Bo Togel dan Slot Toto Togel Judi togel Togel Hadiah 2D 100rb Bandar Togel Dan Slot Togel Bet 100 Lotre Togel bandar darat togel 5 bandar togel terpercaya Situs Togel Terpercaya bandar judi terpercaya Bandar Togel Terbesar Bandar Togel Online bandar togel bandar togel terpercaya hadiah terbesar judi togel bandar togel terbesar situs judi online bandar togel terbesar Togel Online Bandar Togel Bolak Balik Dibayar Bandar Togel Lengkap situs togel Bandar Togel Togel Hadiah 4d Terbesar bandar togel hadiah terbesar Bandar Togel Hadiah 4d Terbesar judi togel Togel Online Terbaik Situs Togel Terbesar Bandar Lotre Togel Togel Kamboja Dingdong Togel Bandar Togel Terbesar dan Terpercaya Bandar Togel Terpercaya Daftar Bandar Togel Togel Deposit Via Dana 5 Bandar togel terpercaya agen togel terpercaya slot online Situs Bonus New Member Slot Gacor 10 Situs Bandar Togel Slot Online Agen Slot Online Slot Pragmatic Slot Pragmatic Agen Togel Lengkap Bandar Togel Hadiah 4d 10 Juta Slot Resmi Bo Togel Situs Togel Terpercaya 5 Bandar Togel Terpercaya Agen Bo Togel Bandar Togel Slot Pragmatic Judi Slot Pragmatic agen togel online Agen Togel Terpercaya toto togel 5 Bandar Togel Terpercaya Bandar Togel Terpercaya Bandar Togel Online Situs Togel Resmi Agen Slot Judi Slot Online 10 Situs Togel Terpercaya Slot Pulsa Tanpa Potongan Situs Slot Gacor Bo Togel Togel deposit pulsa Agen Judi Slot Online Terpercaya Situs Slot Gacor Mesin Slot Bandar Togel dan Slot Agen Judi Slot Pragmatic Slot Online Via Dana Link Slot Gacor Situs Game Slot Online SITUS SLOT ONLINE GAME SLOT Agen Togel Terpercaya Bandar Togel Slot Bandar Togel dan Slot Bandar Togel Terpercaya Hadiah 4d 10 Juta Bo Togel Bandar Togel Deposit Pulsa Bandar Togel Terpercaya Bandar Togel Hadiah 2d 100rb Slot Pragmatic 5 Bandar Togel Terpercaya Bandar Darat Togel Bandar Togel Dan Slot Bandar Togel Hadiah 2d 100rb Bandar Togel Hadiah Terbesar Bandar Togel Lengkap Bandar Togel Online Bandar Togel Terbesar Daftar Bandar Togel Tertua Agen Slot Bonus 100 Agen Togel Mesin Slot BANDAR TOGEL HADIAH 2D 100RB Bandar Togel 77 TOTO SLOT 5 Bandar Togel Terpercaya 5 Bandar Togel Terpercaya 2022 Situs Judi Slot Terbaik Bandar Darat Togel Bandar Lotre Togel Bandar Togel Bet 100 Rupiah Bandar Togel Bet 100 Bandar Togel Hadiah 4d 10 Juta Terpercaya BANDAR TOGEL HADIAH 4D 10 JUTA Bandar Togel Terpercaya BANDAR TOGEL TERPERCAYA HADIAH TERBESAR Bandar Togel Terbesar BANDAR TOGEL LENGKAP Bandar Togel Hadiah Full Togel Online Bandar Togel Resmi Bandar Togel Terbaik Bandar Togel Terbesar Situs Slot Online Bandar Judi Slot Online BANDAR JUDI SLOT ONLINE BANDAR TOGEL TERPERCAYA KUMPULAN SITUS JUDI SLOT 4D Situs Bandar Togel Hadiah 4d 10 Juta LINK BANDAR SLOT TERPERCAYA Daftar Bandar Togel Terbesar Dan Terpercaya Daftar Bandar Togel Tertua Dingdong Togel Daftar Situs Judi Slot Online BANDAR TOGEL TERPERCAYA AGEN JUDI SLOT ONLINE TERPERCAYA DAFTAR JUDI SLOT ONLINE Slot Pragmatic BO JUDI SLOT ONLINE DAFTAR SITUS SLOT GACOR Nama Nama Situs Judi Slot Online Terpercaya Togel China Bandar Judi Slot Online SITUS JUDI SLOT DEPOSIT PULSA Situs Slot Deposit Pulsa Togel Kamboja Agen Togel Resmi AGEN SLOT ONLINE Slot Bonus New Member 100 LINK BO TERPERCAYA SITUS SLOT GACOR Slot Gacor Agen Judi Slot Online Resmi DAFTAR NAMA NAMA SITUS JUDI SLOT ONLINE DAFTAR SITUS JUDI SLOT ONLINE AGEN TOGEL RESMI DEPOSIT PULSA Toto Slot Agen Judi Slot Gacor SLOT ONLINE KUMPULAN NAMA SITUS SLOT ONLINE TERPERCAYA Bandar Togel dan Slot GAME SLOT ONLINE Togel Bandar Darat BANDAR TOGEL TERBESAR TOGEL HADIAH PRIZE 123 BANDAR TOGEL TERPERCAYA Agen Slot Online Situs Slot Deposit Pulsa Situs Judi Online Situs Slot Online Situs Judi Togel Situs Judi Slot Online Terpercaya 5 Bandar Togel Terpercaya Toto Slot Agen Judi Slot Online Situs Slot Terbaru Togel Deposit Pulsa Slot Online Situs Judi Slot Online Terpercaya Slot Pragmatic Bandar Togel Bet 100 Perak Situs Slot Slot Deposit Pulsa Slot Mpo Situs Judi Slot Online Slot Online Terbaik dan Terpercaya Game Slot Agen Slot Pulsa Slot Gacor Agen slot dan Togel Agen Judi Slot Online Terpercaya Togel dan Slot Agen Togel Slot Gacor Slot Gacor Agen Judi Slot Online24Jam Slot Gacor Judi Online Judi Slot Online Bo Togel Slot Online Sultanplay Situs Judi Slot Online Situs Mpo Slot Gacor Slot PG Soft Slot Online Sultanplay Situs Togel Online Agen Judi Slot Online Situs Togel dan Slot Online 10 Situs Togel Terpercaya 10 SITUS TOGEL TERPERCAYA Slot Online Terpercaya Joker Slot Bandar Togel Dan Slot Bandar Togel Hadiah Full Bandar Togel Hadiah Terbesar Bandar Togel BANDAR TOGEL TERPERCAYA Akun Togel Resmi Togel Macau Togel Kamboja Slot Deposit 5000 Slot Terpercaya Togel Singapura Toto Macau Nama Nama Situs Slot Online Bandar Togel Kamboja Bandar Togel Terpercaya Togel Hadiah 4d 10 Juta Terpercaya Agen Slot Agen Judi togel Resmi Situs Togel Terpercaya Situs Togel Terbesar Bandar Toto Terpercaya Agen Slot Gacor Togel Hongkong Judi Slot Online Hondatoto Ojktoto agen slot agen togel resmi togel online agen togel terpercaya agen togel slot online bandar togel situs slot bandar togel online judi slot agen bandar togel agen togel situs judi slot slot online 5 bandar togel terpercaya bo togel terbesar agen slot judi togel online agen togel terpercaya situs togel terpercaya slot online bo togel slot online bo togel bo togel agen togel online agen togel online bo togel deposit via pulsa bet 100 tanpa potongan agen togel terpercaya https://www.cansbar.com/cgi-bin/ toto slot bo togel bo togel idn slot bo togel judi togel online slot gacor https://www.veracruzanos.info/wp-admin/js/widgets/ murah slot situs judi slot situs togel resmi daftar bandar togel tertua bo togel wap togel aman https://www.la-hunaudaye.com/wp-includes/pomo/ bandar togel resmi bo togel situs slot situs slot https://extraderondonia.com.br/extras/video/ togel online bandar togel terpercaya 10 situs togel terpercaya https://wegotpowerfilms.com/music/img/ judi slot online situs slot gacor situs togel deposit via dana situs slot online terbaik 5 bandar togel terpercaya situs slot daftar togel bandar togel lengkap agen slot dan togel terpercaya bandar slot terpercaya dingdong togel agen judi togel situs togel situs judi slot situs togel bandar togel situs togel terpercaya bo togel hadiah terbesar togel 100 perak bo togel terpercaya seratus bandar togel togel 100 situs judi slot online togel hongkong togel sdy situs togel slot 4d bandar togel terbaik togel singapore situs togel terbaik agen togel resmi situs judi slot online bandar togel hadiah 4d terbesar situs slot deposit pulsa agen judi slot online agen judi slot gacor online situs judi slot online togel macau togel macau nama situs togel terpercaya situs bo togel togel kamboja slot mpo situs judi slot terbaik situs judi slot online situs togel situs agen togel judi slot bandar togel online situs judi slot toto sdy togel deposit pulsa 10rb tanpa potongan togel taiwan situs togel resmi toto situs togel terpercaya daftar bandar togel situs togel resmi