Netto Case Study Marketing.

1668 words - 7 pages

INTRODUCTION

Netto is a Danish supermarket group, opened its first store in December 1990, since then Netto has been trading in the UK successfully. Although it is pitched at the more affluent middle market in it's own country, in the UK it has aimed exactly for the budget end.

Everything Netto does is designed to keep prices down. The stores are very simple, many looking like warehouses, and products are generally displayed either on the pallets they have been transported on or in their packing cases with the fronts cut away. Very little effort or expense is made in presenting (merchandising) the goods to the customers - Netto is thus a far cry from Sainsbury's in this field!

Prices are very good at Netto, although the range is limited. It is therefore very good for getting "basic" shopping - you can save a good money (pounds) a week and do "top up shopping" at a more mainstream supermarket.

Fewer products on sale at Netto are brand name, so you know that you are getting exactly the same product as you would at the more expensive supermarkets - just at a cheaper price.

In store the service can be a little poor - the shop floor workers cutting away the fronts of boxes all carry Stanley knifes, which is a little upsetting! Queues are the checkouts are hardly what you'd call short, either.

So comparatively to other stores like Tesco and Sainsbury prices are very cheap at Netto that's why within few years of time Netto is one of the fastest growing food chains in UK currently running 118 stores across the country (1997).

Q1: Marketing Strategy pursued by Netto since its entry to the UK

The major marketing strategy of Netto can be described as follows:

-Beginning
-Convenience for the buyer and store location
-Merchandising
-Pricing
-Communication
- Low profit margins

Beginning

Netto opened its first shop in north of England because of many reasons but marketing point view we can say low prices and opportunities for easier growth both south and northwards and the shopping habits and price understanding of the population in these areas which benefited the start of a discount operation or awareness of discounted prices to people.

Convenience for the buyer and store location.

In UK Netto adopt this policy of opening the shops either in neighborhoods retail parks or in high street and shopping malls, so as to make more convenient and accessible because if there is a shop near to home so it is more convenient for someone to shop there rather then to going some far place, same like in shopping malls.
The company operates in areas where it comes together with other retailers and stores to increase the attractive ness of the area, which results in higher sales.

Merchandising

The company is dependable in using its individual corporative logo colors in order to standardize the shops layout. Netto merchandizing policy has adapted its culture to the local retail market, in other words we can say that Netto operates a" buy British "policy...

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