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INTRODUCTION
Netto is a Danish supermarket group, opened its first store in December 1990, since then Netto has been trading in the UK successfully. ...
Everything Netto does is designed to keep prices down. ... Very little effort or expense is made in presenting (merchandising) the goods to the customers - Netto is thus a far cry from Sainsburys in this field!
Prices are very good at Netto, although the range is limited. ...
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. ...
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. ...
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. ... 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 consumer tastes and buying habits are the prime importance
Pricing
This is the main part of Netto marketing strategy, They keep there price low to attract customers, the products at Netto are cheap compare to other grocery shops but same in quality, as the Managing director Of Netto John Rix Said “We compete on the basis of lowest price and high quality , our strategy is to be the cheapest but not cheaper”.
Approximate Word count = 1691
Approximate Pages = 6.8
(250 words per page double spaced)
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