PUBLIX CASE STUDY
Publix supermarket labor-intensive, real estate, and service estate can continuously support growth in the future. The grocery store utilizes the labor-intensive approach to provide additional customer services to its customers, which is vital in providing an excellent customer experience. Hence, customers develop loyalty, which is vital for long-term sustainability. Besides, the company’s real estate stands to support growth in the future since the mandated team is responsible for managing and leasing property affiliated to the supermarket. Also, the service-first stands to promote growth since the firm utilizes the attitude to win the supermarket wars facing international grocery.
Customers are likely to migrate towards cost savings in case they are found regardless of being brick-and-mortar or online-based. To curb customer migration, Publix has ensured that its prices are 5% to 15% cheaper compared to the cost of purchasing goods at other stores such as Walmart. Customers utilizing a brick-and-motor would migrate in search of cheaper priced goods since they prefer physical storefronts. Besides, competitors have flooded the market with cheaper and quality products, thus reducing the options for customers to stick to Publix whenever the prices are low.
The partnership strategy adopted by Publix and Instacart would help it address challenges faced in its online business. The partnership addresses the basic requirements of an online shop by escalating their delivery and pickup options. Such initiatives developed through the partnership are aimed at controlling a share in the online transaction market. Furthermore, the partnership has ensured that in-store and curbside pickup stations are available to flexibly fulfill their online marketing mandates to its customers. Moreover, Publix and Instacart have articulated the need for consumers to save time while shopping, which has been exemplified through the partnership.
The company should focus more on expanding its private-label margins and organic offerings rather than increasing investments on aprons. As such, the company should embark on improving its private label to influence the competitive nature of the industry based on price variations. Thus, Publix would be in a position to improve competitive position in the market rather than just retailing their brands at normal prices despite having quality products. Therefore, other stakeholders would sell Publix’s branded products on behalf of the company as a strategic initiative to improve the firm’s position in the market.
Publix should not abandon its long-standing aversion to the loyalty program since it enables its customers to scan through the firm’s app used to pay and receive e-receipts. The aversion on the loyalty program stands to help customers automatically enroll in the Club Publix to help the firm offer personalized content. Besides, the royalty programs adopted by the company initiates to dive insight into the southeastern grocer that has continued to serve its customers without a clearly outlined loyalty program.
Publix should position itself through branding to achieve continued growth despite challenges in the business environment. The marketing positioning proved effective since it beat Walmart to become the most profitable grocer in America. Branding poses to reduce intense competition from companies offering the same products as Publix. As such, the firm would develop a high market position to achieve continued growth in sales and revenue. Good branding ensures that the customers have a clear message on the products and services offered. As a result, customers would develop loyalty to Publix’s products and services.