“I’d do all of my shopping at the co-op if it were just for me, but my family likes products I can’t find there.”
“I feel terrible about it, but I don’t shop at the co-op as much as I used to. The new grocery store down the street has more options.”
“I’d love to be able to afford to buy more of my groceries at the co-op.”
Sound familiar? These statements reflect what market research suggests about health and wellness shoppers today — that their shopping behaviors are influenced by the relative cost of food and the many options available in an increasingly competitive market. Competitors aim to capture consumer dollars with promotional strategies like loss leaders, added value upgrades, values messaging, private label organic brands and the list goes on. Mid-level shoppers represent 62% of health and wellness spending — and they are savvy with their grocery budgets.*
A strategic product and pricing strategy that appeals to a broad shopper base is essential to winning the customer count battle in the war for every dollar. Co-ops might not be able to replicate the rock bottom pricing that stores like Costco or Walmart are able to achieve, but they can implement a strategy that keeps them competitive on key categories and items, making it easier for customers to shop co-ops instead of other local retailers.
NCG recommends a “Good, Better, Best” (GBB) strategy that allows co-ops to offer both premium products with high value attributes (local, organic, fairly traded, etc.), familiar natural and organic brands, and some value options. Having these price and quality options appeals to mid-level shoppers and gives them the opportunity to choose when to trade up or down based on their own needs and circumstances. This strategy is all about providing more options and clear value to shoppers.
If you think your co-op could benefit from implementing such a strategy, read our summary of the pricing strategy (including some examples of what a “good” baseline might look like), implementation guidelines for getting started at your store, talking points for staff and category recommendations.
