Product details

For many years, the third-largest supermarket group in the US, Kroger, has been competing to gain market share from the world's number 1 retailer, Wal-Mart. Following Wal-Mart's price-led business model, Kroger tried to attract customers and increase its sales. However it failed, as its cost reduction could not match its price reduction. Realising that it was difficult to compete on the basis of price alone, in 2002, along with Dunnhumby (a specialised provider of database management and analytical services), Kroger formulated a customer-centric strategy for itself. According to this, customer data is analysed to get a deeper understanding of their purchasing behaviour. The retailer also implemented a 'customer first' strategy to deliver higher value to its customers coupled with an enhanced shopping experience.