The food retail industry is also one which is characterised by tight profit margins as customers in this industry are constantly on the lookout for value for money in terms of prices offered.
This has resulted in food retailers adopting various promotion strategies in a bid to control customer behaviour, and the bulk of the promotion strategies seem to have focussed on loyalty. Other promotion strategies that have been used include blanket couponing and one-to-one marketing (Peppers and Rogers 1997). These strategies have also relied on recording customer shopping behaviour, and the information collected is often used to ascertain what customers' buy, the frequency with which they buy these products and when they buy it. This information is then used to give the customer coupons or vouchers that are specific to their frequent purchases.
Some food retailers like Aldi's and Lidl's have not adopted any promotional strategies and instead they have gone for low pricing on the basis that it introduces stable pricing to customers. ...Show more