Price and Promotion implementation of the HOFER KG Report
Price and Promotion implementation of the HOFER KG - Report
Due to the recent drops in sales and therefore the decline of economic feasibility the Hofer KG carried out a market research to determine the differences between retailers within the Austrian market with a focus on one of Hofer KG’s major rivals, Billa. First a competitor analysis had to be carried out to find out what makes Billa more successful. According to the analysis the introduction of a bonus card influenced customers in a very positive way. Beside of that Billa clearly reviewed and restructured their promotion and price policy. As customers’ wants and needs are constantly changing the Hofer KG has to adapt to these changes in order to influence sales positively. Therefore the aim of this report is to outline the importance of implementing promotion tools and a proper price policy within the company.
One of the main differences between the competitor in question and the Hofer KG was the implementation of the customer bonus card, mentioned in the beginning. A bonus card would provide the possibility to combine both, price and promotion advantages to customers.
A simple registration with one’s personal data should be the requirement to obtain a card. Beside of that customers have to agree to the business terms and therefore the acceptance of targeted advertising in the letterbox. A certain number of special offers for card owners would change periodically and should be announced in flyers and on the website. Daily consumer products should always be taken into account for the offer to target the largest number of customers possible and therefore directly influence them to use the card as often as possible. As a matter of fact this should guarantee, that people adapt to the new concept quickly. Beside the advantage of creating a stronger customer relationship and therefore a more loyal connection to the customers, the card system allows the analysis of the baskets bought by each individual. It
Due to the recent drops in sales and therefore the decline of economic feasibility the Hofer KG carried out a market research to determine the differences between retailers within the Austrian market with a focus on one of Hofer KG’s major rivals, Billa. First a competitor analysis had to be carried out to find out what makes Billa more successful. According to the analysis the introduction of a bonus card influenced customers in a very positive way. Beside of that Billa clearly reviewed and restructured their promotion and price policy. As customers’ wants and needs are constantly changing the Hofer KG has to adapt to these changes in order to influence sales positively. Therefore the aim of this report is to outline the importance of implementing promotion tools and a proper price policy within the company.
One of the main differences between the competitor in question and the Hofer KG was the implementation of the customer bonus card, mentioned in the beginning. A bonus card would provide the possibility to combine both, price and promotion advantages to customers.
A simple registration with one’s personal data should be the requirement to obtain a card. Beside of that customers have to agree to the business terms and therefore the acceptance of targeted advertising in the letterbox. A certain number of special offers for card owners would change periodically and should be announced in flyers and on the website. Daily consumer products should always be taken into account for the offer to target the largest number of customers possible and therefore directly influence them to use the card as often as possible. As a matter of fact this should guarantee, that people adapt to the new concept quickly. Beside the advantage of creating a stronger customer relationship and therefore a more loyal connection to the customers, the card system allows the analysis of the baskets bought by each individual. It