Win-win strategies at discount stores

Deleersynder, Dekimpe, Steeenkamp and Koll adress the issue that well-known discounters extend their assortment with attractive national brand offerings. The reason behind this strategy of discounters is to differentiate themselves from other discounters, build stronger and more sustainable consumer relations and thereby moving beyond a pure price-based competition.

The current study provide interesting new insights when trading national brands through discount stores:

  • Focus on a larger price difference between the NB and the store‘s PL
  • Focus on a large price gap for NBs between mainstream retailers and the discounter
  • Use attractive outer cases – presenting NB in a plain outer-case box or simply putting a brand claim on it is insufficient
  • Add innovative NBs
  • Pick not only the more popular NBs but also less popular, but perhaps more targeted, branded goods

 

Barbara Deleersnyder, Marnik G. Dekimpe, Jan-Benedict E.M. Steenkamp, Oliver Koll (2007), Win–win strategies at discount stores. Journal of Retailing and Consumer Services, Vol. 14 Iss: 5 pp. 309-318.
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