Waitrose: A Lifestyle Recipe for Loyalty
Waitrose has reacted to the economic turmoil in the UK with a two-pronged strategy: launching a value range of staple groceries, while protecting its premium proposition by responding to the changing lifestyles of its core customers with a number of initiatives. This case study examines Waitrose's lifestyle alignment strategy and explains how it has successfully maintained high customer loyalty.
Features and benefits
- Assess if Waitrose’s customers share any characteristics with your own and uncover some initiatives to bond with them based on their values.
- Glean ideas for corporate social responsibility promotions by gaining insight into how Waitrose has developed its ethical and green credentials.
- Display your company's food knowledge and expertise by seeing how Waitrose promotes a shared love of food and cooking with its customers.
- If partnering with Waitrose, inform your business pitches and enhance your relationship by understanding more about its strategy.
Waitrose's maintanance of it premium price positioning involves a strong focus on quality and freshness, and the promotion of the traceability of its products and its green and ethical credentials.
It has focused on bonding with its customers through a consistent digital media strategy, local charitable initiatives, and the communication of a shared love of cooking.
This success of this strategy of wider involvement with customers and alignment with their values was reflected in the results of Verdict's How Britain Shops 2011 survey where Waitrose outscored the big four UK grocery retailers in terms of customer loyalty.
Your key questions answered
- Does Waitrose have a loyal customer base and how can premium grocers maintain customer loyalty in a downturn?
- What type of initiatives has Waitrose embarked on in order to align itself with the values of its customers when it comes to their food preferences?
- How does Waitrose communicate with customers and what is its approach to digital media?
- How can a national grocer establish a more central role in the local community through its retail proposition?
- What is Waitrose's overall proposition in terms of its target market, price positioning, stores, produce range and services?
Table of contents
Waitrose has built a loyal following through quality and customer lifestyle alignment
STRATEGIC ACTION POINTS INSPIRED BY WAITROSE
Waitrose's strategy demonstrates initiatives that smaller up-market grocers should consider
Respond to demographic and lifestyle changes
Adapt to the more price-sensitive post-recessionary consumer
Support local communities and make your customers aware of your initiatives
Exploit the increasing interest in cooking and the public fascination with celebrity chefs
Develop a consistent digital strategy
Develop a diversified portfolio of private label ranges
Offer additional premium services associated with memorable experiences
DRIVERS BEHIND THE STRATEGY
Intensifying competition in the UK grocery market necessitates differentiation
Smaller grocers need to steal market share from larger players in an increasingly consolidating UK market
Sainsbury's and Tesco tempt price-conscious consumers from Waitrose
Consumers regard local sourcing as an important factor in choosing grocery products
Demographic and lifestyle changes require grocers to adapt their offerings
The growing number of small households generates greater demand for meals for one or two
An aging population demands higher-quality products and customer service
Consumers want to eating healthily but spend less time cooking
The economic downturn has impacted the consumer mindset
Consumers are increasingly interested in cookery and celebrity chefs
STRATEGY IN FOCUS
Waitrose engages with customers through multiple media outlets
Waitrose makes use of different digital platforms to build a closer relationship with customers
Waitrose bonds with its customers through "the love of cooking"
The retailer has an extensive database of recipes on its website and gives out recipe cards instore
Waitrose has launched a cookery school
Famous British chefs endorse the Waitrose brand
Waitrose supports local communities
The retailer is committed to national and regional sourcing
Waitrose supports local causes and succeeds in getting customers involved
Waitrose offers catering services, linking its brand to special moments in customers' lives
Waitrose improves pricing image with the launch of a cheaper range and price-match move
Waitrose has a balanced portfolio of private labels
Waitrose collects customer insights from MyWaitrose members
Waitrose experiences particularly high loyalty despite footfall declining in 2010/11
Visitor and main user shares drop as consumers move to lower-priced retailers
Loyalty recovers from dip in 2010
RETAILER PROFILE: WAITROSE
Some basic facts about Waitrose
Retail Innovations case studies
Global Retail FreeView
Ask the analyst
Related market research by company
Our prices are competitive, and to ensure you get the most attractive deal available, we'll do our very best to match any price in the unlikely event you can find the same product for less elsewhere.
All we ask for is reasonable proof of the report being currently available at the lower price.
If you do find a lower price, contact Claire Cole direct by telephone on +44 (0)1527 573 738, 1-866-545-5878 Toll-Free from the US, alternatively email us here.
Many resellers don't offer refunds full stop. We're different. If you are dissatisfied with your purchase let us know within 5 working days. If we are unable to address the problem to your satisfaction we will give you a full refund.