What if Microsoft Acquired a Supermarket Chain



The New England Consulting Group in Westport, Connecticut is revealing the findings of a research study on female shoppers and their attitudes toward supermarket shopping. This research was conducted among more than thirteen hundred female shoppers.

's8220;One of the key findings,'s8221; said David Stone, Partner, 's8220;was who consumers wanted to take over and run their local supermarket.'s8221; When asked, these heads of household preferred more dynamic and exciting companies such as Starbucks, Whole Foods, Nordstrom's8217;s, and Disney to traditional supermarket operators. Mr. Stone related, 's8220;it is a powerful tool of innovation to force the consideration of how someone outside an industry would revolutionize a category.'s8221;

In addition, the shoppers were polled on their ideas or suggestions for improving their own shopping experience at grocery outlets. The shopper recommendations tended to relate to convenience and increased customer choice including a 's8220;cut-to-order's8221; meat section's8221; (62%), 's8220;improved international food section's8221; (59%), and a broader selection of take-out food's8221; (57%). These respondents shopped five or more different chains or type stores in the past year.

Traditionally, retailers have managed the tradeoffs of price, assortment and convenience. This habitual approach has led to commoditization and now convergence. As a result, traditional mass retailers are losing today, while formerly niche banners are gaining ground. From an economic standpoint, Ahold, Albertson's8217;s, Kroger and Safeway are indisputably returning less to shareholders than Publix, Wal-Mart, Costco and Whole Foods.

So the question becomes, what has Publix, Wal-Mart, Costco and Whole Foods done right It seems these retailers have become marketers. They have identified a brand defining idea that echoes loud both in- and out-side the company. Wal-Mart has low prices. Publix has great service. Costco has a treasure hunt. Whole Foods has healthy. What does Kroger have Successful retail marketers are leveraging brand-defining ideas through experiential environments. This implies that consumer shoppers can articulate what the retailer stands for because they can feel it. The brand-consumer relationship is deep and meaningful 's8211; and often worth the drive.

Tom Hayes, Partner, indicated that the New England Consulting Group developed this study in preparation for several presentations at the recent ACNielsen Consumer 360° industry summit of retailers and manufacturers.

For more information, contact Patty Meagher (203)226-9200.





What if Microsoft Acquired a Supermarket Chain