– Cub’s grocery carts are wider than other grocery stores shopping carts – Cub has low prices
– Cub offers samples
– Cub gives its customers maps to guide the shoppers
– Cub has large selections and offers samples to shoppers
– Cub’s entry aisle is lined two stories high with discounted specials – Cub designs its building so it “suggests there’s massive buying going on that translates in a shopper’s mind that there’s tremendous savings going on as well.”
Section 2 – What Accounts for Cub’s success
Many things account for Cub’s success in generating such large sales per customer and per store. First, unlike traditional grocery stores, Cub focuses on a primary market of consumers. This market consists of larger families ages 24 to early 40’s. Cub believes these consumers are “informed, value-conscious consumers.” Many of these customers go into Cub Food’s and spend more than they were expecting. This occurs because of the “wow factor: a shopping frenzy brought on by low prices and clever marketing” according to a Cub executive. Cub also has lower prices than their competitors along with a wider variety of goods and offers customers samples. Offering samples will encourage the customers to try new products.
This increases Cub’s chances of the customer buying the product that they may have never bought prior to the sample. A shopper can find about everything they need at Cubs, another reason why Cubs is so successful. Many of these shoppers are also buying in bulk and as a result, spend more money then they would at a regular grocery store. Cub also relies on word of mouth advertising. They spend 25% less than other chains on advertising which allows them to keep their prices lower then their competitors.
Part 3 – Why Consumers May Refuse to Shop at Cub Foods