Waitrose: A Lifestyle Recipe for Loyalty

Price
Global License: US$ 3,240.00

Introduction

Waitrose has reacted to the economic turmoil in the UK with a two-pronged strategy: launching a value range of staple groceries, while protecting its premium proposition by responding to the changing lifestyles of its core customers with a number of initiatives. This case study examines Waitrose's lifestyle alignment strategy and explains how it has successfully maintained high customer loyalty.

Features and benefits

• Assess if Waitrose’s customers share any characteristics with your own and uncover some initiatives to bond with them based on their values.
• Glean ideas for corporate social responsibility promotions by gaining insight into how Waitrose has developed its ethical and green credentials.
• Display your company's food knowledge and expertise by seeing how Waitrose promotes a shared love of food and cooking with its customers.
• If partnering with Waitrose, inform your business pitches and enhance your relationship by understanding more about its strategy.

Highlights

Waitrose's maintanance of it premium price positioning involves a strong focus on quality and freshness, and the promotion of the traceability of its products and its green and ethical credentials.

It has focused on bonding with its customers through a consistent digital media strategy, local charitable initiatives, and the communication of a shared love of cooking.

This success of this strategy of wider involvement with customers and alignment with their values was reflected in the results of Verdict's How Britain Shops 2011 survey where Waitrose outscored the big four UK grocery retailers in terms of customer loyalty.

Your key questions answered

• Does Waitrose have a loyal customer base and how can premium grocers maintain customer loyalty in a downturn?
• What type of initiatives has Waitrose embarked on in order to align itself with the values of its customers when it comes to their food preferences?
• How does Waitrose communicate with customers and what is its approach to digital media?
• How can a national grocer establish a more central role in the local community through its retail proposition?
• What is Waitrose's overall proposition in terms of its target market, price positioning, stores, produce range and services?

Contents

INTRODUCTION

  Summary

STRATEGY OVERVIEW

  Waitrose has built a loyal following through quality and customer lifestyle alignment

STRATEGIC ACTION POINTS INSPIRED BY WAITROSE

  Waitrose's strategy demonstrates initiatives that smaller up-market grocers should consider
    Respond to demographic and lifestyle changes
    Adapt to the more price-sensitive post-recessionary consumer
    Support local communities and make your customers aware of your initiatives
    Exploit the increasing interest in cooking and the public fascination with celebrity chefs
    Develop a consistent digital strategy
    Develop a diversified portfolio of private label ranges
    Offer additional premium services associated with memorable experiences

DRIVERS BEHIND THE STRATEGY

  Intensifying competition in the UK grocery market necessitates differentiation
    Smaller grocers need to steal market share from larger players in an increasingly consolidating UK market
    Sainsbury's and Tesco tempt price-conscious consumers from Waitrose
  Consumers regard local sourcing as an important factor in choosing grocery products
  Demographic and lifestyle changes require grocers to adapt their offerings
    The growing number of small households generates greater demand for meals for one or two
    An aging population demands higher-quality products and customer service
    Consumers want to eating healthily but spend less time cooking
  The economic downturn has impacted the consumer mindset
  Consumers are increasingly interested in cookery and celebrity chefs

STRATEGY IN FOCUS

  Waitrose engages with customers through multiple media outlets
    Waitrose makes use of different digital platforms to build a closer relationship with customers
  Waitrose bonds with its customers through "the love of cooking"
    The retailer has an extensive database of recipes on its website and gives out recipe cards instore
    Waitrose has launched a cookery school
    Famous British chefs endorse the Waitrose brand
  Waitrose supports local communities
    The retailer is committed to national and regional sourcing
    Waitrose supports local causes and succeeds in getting customers involved
  Waitrose offers catering services, linking its brand to special moments in customers' lives
  Waitrose improves pricing image with the launch of a cheaper range and price-match move
  Waitrose has a balanced portfolio of private labels
  Waitrose collects customer insights from MyWaitrose members
  Waitrose experiences particularly high loyalty despite footfall declining in 2010/11
    Visitor and main user shares drop as consumers move to lower-priced retailers
    Loyalty recovers from dip in 2010

RETAILER PROFILE: WAITROSE

  Some basic facts about Waitrose

APPENDIX

  Retail Innovations case studies
  Methodology
  Further reading
  Global Retail FreeView
  Ask the analyst
  Verdict consulting
  Disclaimer
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