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The People's Supermarket Case Study: Attracting Experiential Consumers with an Authentic Ethical Positioning
Datamonitor, April 2011, Pages: 12
Following the growth of the food co-operative movement in the US, a new co-operative supermarket has opened in London in 2010. The People’s Supermarket is based on many of the concepts and principles of the US movement, but uses cutting-edge branding and social media engagement to attract shoppers who are keen for a differentiated retail experience.
Features and benefits
- Grow sales of CPG products by understanding how ethical principles can be harnessed in the retail market.
- Stimulate ideation and invigorate brands by learning how consumers feel about ethical issues and sustainability.
- Gain a competitive edge in the market by uncovering global consumer, product and market trends pertaining to consumer habits in this space.
- The majority of global consumers surveyed agree it is important to buy socially responsible products, although a lower proportion of consumers are actually altering their own purchasing habits to include such items.
- Most consumers accept a flexible/inconsistent approach to embracing ethical consumerism with the recognition that there are many factors shaping what they require.
- Across all consumers, quality is significantly more influential in shaping grocery store choices than ethical or sustainability benefits.
Your key questions answered
- How can the rise in consumer demand for ethical and sustainable products be best harnessed in the retail market?
- How does ethicality and sustainability rank against other factors important in the consumer purchase decision hierarchy?
- What kind of profitability do ethical and sustainable products generate, high or low?
CONSUMERS INCREASINGLY WANT TO DISTANCE THEMSELVES FROM MAINSTREAM RETAIL EXPERIENCES
- Ethical concerns are increasingly important motivators behind people’s consumption behavior, even if they remain secondary considerations in shaping where consumers do their grocery shopping
- The search for authenticity is an important aspect of premiumization
FOOD CO-OPERATIVES HAVE BEEN IMPORTANT IN FOOD SUPPLY FOR OVER 100 YEARS
- Traditional co-operatives helped create the modern retail model
- The Park Slope Food Coop has pioneered a new wave of local food co-operatives in the US
- The US co-op movement is expanding and requirements are becoming less onerous
- The co-op movement has made some headway outside the US
THE PEOPLE’S SUPERMARKET IS WELL SUITED TO ETHICAL AND BOUTIQUE TRENDS
- The People’s Supermarket aims to be a more accessible version of US food co-ops
- Branding and media positioning are massively important to The People’s Supermarket
- Current signs seem promising, but the supermarket will need to inspire a loyal following to survive
CONCLUSION AND IMPLICATIONS
- CASE STUDY SERIES
- Secondary sources
- FURTHER READING
- ASK THE ANALYST
- Figure: Few UK shoppers are really satisfied with various aspects of grocery retailing
- Figure: A marked gap exists in the stated influence of product quality versus ethical or sustainability factors when consumers across territories decide where to shop
- Figure: Park Slope Food Coop is one of the oldest and most successful US food co-ops
- Figure: Unicorn Grocery resembles a US co-operative but is owned solely by its workers
- Figure: The People’s Supermarket is aiming to position itself as ethical but accessible
- Figure: The People’s Supermarket has imposed a strong brand identity from day one