CASE STUDY #001298 - Kroger

Who: Kroger, a $52 billion grocery chain, is the largest and highest grossing in the United States.

Challenge: In a highly competitive grocery market, Kroger was losing share to retailers like Wal-Mart. Looking to counteract this, Kroger decided to create a meaningful point of differentiation in its top 2 to 3 categories.

Big Idea: Through Kroger’s private ownership of 21 dairies, Concentric Marketing decided to target Kroger’s dairy section as a key point of differentiation between their stores and large, ambiguous diary sections found at chains such as Wal-Mart. Concentric determined that customers required an emotional tie to products, if they would be compelled enough to make a purchase. So, Concentric developed a program which highlighted the benefits of Kroger’s private dairy ownership, in conjunction with childhood memories one associates with dairy products.

Elements:

Brand identity and imagery about the importance of quality, fresh dairy

Brand Manager sell-in

Promotions

Quarterly POS

Print work in publications including Woman’s Day and Redbook

Radio

In-ad communications

Direct Marketing

Results: Concentric launched “Fresh for Life” a year-long campaign featuring in-store and media components, branding and promotion designed to create an emotional connection between dairy products and childhood memories. The program lasted three years and became one of three key marketing initiatives for this $52 billion retailer. Twenty-three national brands supported and helped fund the initiative. Same store comps increased by 6.2% during a period when total store was trending downward. CEO David Dillan said it was “one of the Kroger’s top initiatives for the year” and made Concentric’s effort amodel corporate program.