Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code :BSM0038

Year : 2006

Industry : Retailing

Region : USA

Teaching Note:Available

Structured Assignment :Not Available

Abstract: For many years, the third-largest supermarket group in the US, Kroger, has been competing to gain market share from world's No.1 retailer, Wal-Mart. Following Wal-Mart's price-led business model, Kroger tried to attract customers and increase its sales. However, it failed as its cost reduction could not match its price reduction. Realising that it was difficult to compete on the basis of price alone, in 2002, along with Dunnhumby (a specialised provider of database management and analytical services), Kroger formulated a customer-centric strategy for itself. According to this, customer data is analysed to get a deeper understanding of their purchasing behaviour. The retailer also implemented a 'customer first' strategy to deliver higher value to its customers coupled with an enhanced shopping experience.