Business of branding

BUSINESS 2000:  PEOPLE MAY look down their nose at the "Spar generation", those who rely on the nearest convenience store to…

BUSINESS 2000: PEOPLE MAY look down their nose at the "Spar generation", those who rely on the nearest convenience store to meet their daily needs, writes Caroline Madden.

They compare rapidly multiplying convenience chains, such as Spar and Centra, to Starbucks, which attracts abuse for being ubiquitous, generic and representative of the spread of global capitalism.

Even if you dislike these stores on principle, when you visit a country where the Irish Spar/ Centra model hasn't caught on yet, you suddenly realise just how convenient they really are and how much they have developed in recent years.

Far from being pokey shops crammed with junk food, the new generation of convenience stores are bigger, glossier and attuned not only to busy lifestyles but a growing demand for healthy eating.

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This transformation is the result of clever and targeted marketing. Take, for example, Centra, which is owned by Musgraves, and which has more than 500 stores throughout Ireland.

Centra has succeeded in moving with the times, evolving and responding to the changing needs of consumers. It has thrived on the fact that many people are now working longer hours and spending more time than ever commuting each day, which increases the need for convenience shopping.

Top-up shopping is now the norm rather than the exception, according to Centra.

People may have increasingly hectic lifestyles, but there is also a growing awareness of, and preoccupation with, the health benefits of eating well. This means that convenient food must now also be fresh and nutritious.

Another factor that has shaped Centra's development is the emergence of new communities of foreign nationals living in Ireland who have specific grocery needs.

For Centra to remain competitive, it has had to adapt rapidly to these changes in the market and constantly update its brand - but how exactly? Firstly, by keeping its ear to the ground through extensive market research, which enables it to define and understand its customer base. As well as listening to its customers' evolving needs, it also has to anticipate them.

Secondly, Centra develops its marketing strategy based on the four Ps - product, price, place and promotion - also known as the marketing mix. In Centra's case, the product is its food offering. Its strategy in this area to offer the "freshest convenience" in the market.

Centra has introduced a modern Good-to-Go range, which includes several high-end elements like a wokery, where customers can choose their own ingredients for a healthy stir-fry option, and luxury ice cream.

Just to cram as much convenience as possible into one space, Centra stores also offer services such as ATM machines, Wi-Fi access and dry cleaning.

On the issue of price, offering value for money is key but value-added products and areas such as takeaway tea and coffee, home-made soups with hot crusty bread, smoothies from the juice bar and healthy alternatives such as porridge, fruit and yoghurt from the breakfast bar, are seen as major sales drivers.

In relation to price, Centra markets itself as local and convenient and playing an important role within local communities.

Finally, when promoting its brand, the chain uses a mix of television and radio advertising, together with price and loyalty promotions. Its communications campaign also extends to the look and feel of the stores and the products.

These four points form the backbone of Centra's marketing strategy and are used to determine the strategic position of the chain in the marketplace. They are also used to define its brand identity, which it sums up with four personality characteristics - youthful, energetic, community spirit and friendly.

When it comes to developing marketing campaigns, they are designed to reflect these brand attributes while conveying what it has to offer to its customers. For example, its most recent advert reflects Centra's role in making life easier for today's consumers who have hectic lifestyles, and emphasises the message: "Relax, slow down - Centra has everything covered".

It has also sponsored the Saturday night movie on RTÉ to build on the chain's "Great Nights In" advertising campaign. However its tag line sums up the brand and what it stands for most succinctly of all: "Centra - for the way we live today".

Far from being pokey shops crammed with junk food, the new generation of convenience stores are bigger, glossier and attuned not only to busy lifestyles but a growing demand for healthy eating.