If you’re not familiar with Whole Foods, you might not see anything unusual about the promotion of great values and great deals at a grocery market. For those of us who are, trust us…this new messaging is quite an oddity for this high end, natural foods and gourmet grocer who is more often thought of as the ‘whole paycheck’ food market. For us, seeing this signage causes pause and forces us to ask: Have they changed their strategy? Have they lost their way? Have they sold out? Have they gone mad? The answer, of course, is no, not at all. They are simply finding a way to stay relevant in what is a very challenging economic period for all.
Faced with a significant downturn in earnings and the reality of a slowing economy, Whole Foods has launched a new value strategy aimed at helping more cost-conscious customers trim their grocery bills without sacrificing their desire for healthy, high quality foods. In the process, they are hoping to squelch their image as an overpriced destination store. To achieve this goal, the company has turned to some traditional solutions including the use of discounts and coupons, and an expanded offering of value alternatives including its own store-branded (Whole Foods’ 365 Everyday Value Brand) items. The retailer has also, however, found some clever ways of helping customers while driving home its value proposition. For example, they are now publishing money saving tips, meal plans, and recipes for customers in their Whole Deal Value Guide (available online and in-stores) and offering ‘value guides’ and ‘value tours’ to help guide shoppers to good deals and tips for shopping smartly. The company is also actively supporting an online community forum where ‘frugal foodies’ can share buying tips and low cost recipes with one another. One has to appreciate these initiatives as they deliver a direct benefit to consumers while reinforcing the uniqueness of the Whole Foods experience and creating a sense of community around the Whole Foods brand.
When times get tough, we all know that companies face the temptation to cut costs in areas that inevitably remove value from customers and degrade the overall customer experience. It takes strong leadership and commitment to one’s mission to find other ways to survive the tide and so I think it’s helpful for us to feature companies who resist the easy and worn path in an effort to steel our collective will and inspire us to do the same at our companies.
Do you have examples of how companies are staying relevant in these economically challenged times? Perhaps creative things you’re doing at your company? If so, please do share. I think we can all use some inspiration in these trying times.
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