Shopper Marketing - October 2017 - 30

| HEADING
HEADINGREPORT
SPECIAL

last fall, Lidl introduced the "Social Price
Drop," in which it lowered the prices of
certain products from week to week
based on how many tweets they received. It has similarly used Facebook in
the Netherlands to allow fans to select
products that receive a discount.
"Lidl takes social media very seriously," says Simon Johnstone, a U.K.-based
analyst with Kantar Retail. "They were
the first chain to have 10 million 'likes'
on Facebook. Lidl is very good at reacting to what's happening in the marketplace, and they're one of the best retailers out there in terms of giving shoppers
a voice. They've got a humorous and fun
approach to building the brand."
That kind of positioning might win
over Millennial shoppers, who tend to
reward companies and brands that communicate in relevant ways and speak to
their values. It could also represent a
growing threat to dollar stores, notes
Steve Abdo, senior vice president, grocery and value channel leader at Catapult. "Dollar stores are positioned well,
especially on value, but they need to
keep improving the in-store experience
with Aldi and now Lidl offering shoppers
something new and potentially a better
experience," Abdo says.
Lidl made a splash this year when it
launched a partnership with supermodel
Heidi Klum. Three winners of a promotion
on social media got a sneak peek at the
exclusive new Klum apparel collection,
which features affordable leather goods.
30

y SHOPPER MARKETING OCTOBER 2017

Says Straus: "Lidl is clearly not afraid to
take pages out of other retailers' books -
in this case Target, as they're known for
their designer partnerships - and is smart
to work with celebrities who are more relatable for the younger generations."

Others Want Piece of Value
Prize
Many retailers outside the value channel
are seeking a piece of the value prize.
Amazon dipped its toe in the water earlier this year with a discounted Prime
membership for individuals on government financial assistance, slashing the
usual rates approximately in half for
anyone with a valid Electronic Benefits
Transfer (EBT) card. Then, the company made a much bigger splash with its
acquisition of Whole Foods, which will
make the premium grocery chain and its
notoriously high-priced products more
accessible to value shoppers.
Small-format stores are another way
in which mass retailers are reaching out
to the price-conscious shopper. Target,
for example, plans to open 30 new smallformat stores on or near college campuses this year. "Target has always won
on experience and is now approaching
format in a strategic way," Abdo says. "I
think it's fair to say college students are
a prime subset of value shoppers."
The idea of creating smaller or unique
format stores to cater to value shoppers
in local markets is certainly not new.
Walmart's Neighborhood Markets and



Table of Contents for the Digital Edition of Shopper Marketing - October 2017

Contents
Shopper Marketing - October 2017 - Intro
Shopper Marketing - October 2017 - 1
Shopper Marketing - October 2017 - 2
Shopper Marketing - October 2017 - 3
Shopper Marketing - October 2017 - Contents
Shopper Marketing - October 2017 - 5
Shopper Marketing - October 2017 - 6
Shopper Marketing - October 2017 - 7
Shopper Marketing - October 2017 - 8
Shopper Marketing - October 2017 - 9
Shopper Marketing - October 2017 - 10
Shopper Marketing - October 2017 - 11
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