Cub Foods Essay

In universal it is characterized with low-pitched prices, tables of samples and spirited discounts. While the following merchandising tactics were used by Cub Foods to attach probability of purchases1. Promotional Price Deals At the launching aisle, called a power alley is lined 2 stories high with specials, such(prenominal) as coffee covered stadium $2 and half priced apple juice. 2. Physical depict effect on cognitive Ceiling joists and girders atomic number 18 exposed giving the feeling of spaciousness up there, it suggests theres massive buying red on, translates in a pasturepers mind that theres tremendous savings going on. 3. Purchase bill The shopping carts are wider than usual to encourage expandable buying, and that fit through the wide aisles to easily appreciation high profit impulse foods. 4. Purchase mess An new(prenominal) tactic, that deli comes before fresh mall because Cub wants shopper to do the impulse buying before their budgets are depleted on es sentials. 5. Packaged rifle grocery was of low prices (by controlling the cost and high volume sales) and exceptionally high gauge for products and meats. 6. Maps to place shoppers, even without maps they would be lead by the positioning of aisles.What accounts for Cubs success in generating such large sales per customer and per store?1. They by rights identify their discussion section of customers and focus on its segment which is a family of 4-5 individuals with adult ages 24 40 years. 2. comme il faut positioning as low cost leadership, massive selection & good quality. The customers can found everything they requisite under one roof and cheaper than its competitors. 3. Their customers buy in volume and spend 4 times the supermarket fair(a) per shopping trip. 4. Relies on the word of mouth cuts on ad budgets by 25% less than other chains. 5. Pricing 6 points less than most courtly stores.Given Cubs lower prices, quality merchandise, excellent location and superior ass ortment, offer reasons wherefore many consumers in its trading areas refuse to shop there.1. The overwhelming displays could be confusing for some customers. 2. The misconception of low prices reflecting lower quality. 3. Could be of different targeted segment i.e. superstar that do not need volume purchases