Kroger: A Marketing 50 Case Study

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As consumers hit by higher prices and a weakening economy flock to lower-price big-box stores such as Wal-Mart and Costco, most supermarket retailers have struggled to post same-store-sales growth.

Then there's Kroger Co., which has consistently been notching comparable-store-growth rates of about 5% in the past year and 4.7% for the recently concluded second quarter, excluding gasoline.

According to Kroger senior management, much of the credit for that growth goes to a loyalty-card program with more than 43 million households operating under various supermarket brands and led by David Ciancio, VP-customer relationship management.

Dunnhumby USA analyzes the payoff from each offer at the household and customer-segment levels to boost sales, which for Kroger were up 11.9% for the second quarter to $18.1 billion.

"One of the most sophisticated tools we use to leverage opportunities in any economy is our vast collection of consumer data," Kroger Chairman-CEO David Dillon said in a September earnings conference call.
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