Food Lion 2009 Annual Report Download - page 20

16 - Delhaize Group - Annual Report 2009
Improved Price Positioning
All our operating companies continued to
implement price initiatives and find new ways to
help our customers shop within their budget. Our
banners offered as many cost-conscious options as
possible while not compromising on our renowned
product quality and service.
To respond to a consumer who is looking more
than ever for good deals and promotions, Food
Lion initiated a series of multi-coupon continuity
programs and used more aggressive off-shelf
merchandising. To help customers cook healthy
meals with a budget of less than $10, Food Lion
reinforced its
”meals for less” program with weekly-
changing recipe and ingredient displays. During
the year, Hannaford invested in prices in certain
categories and improved its competitive price
position. The banner used television campaigns to
support the
” Good prices, Great value” company
strategy. By the end of the year, Hannaford lowered
prices on some 10 000 items and offered more
aggressive specials. Sweetbay carried on its long-
term price campaigns that started in the summer of
2007 and have led to an improved price perception
for Sweetbay in the marketplace.
Delhaize Belgium continued its price repositioning
program started in 2008. Throughout 2009, price
investments were stepped up and were supported by
strong communication campaigns, both in the media
and the stores. Delhaize Belgium ran extremely
successful marketing campaigns to capture the
attention of households with young children.
The campaigns featured Disney-Pixar
®
trading
cards or Nickelodeon marbles and received wide
international media coverage. Three additional
waves of price decreases were rolled out during
the year, further solidifying Delhaize Belgium’s value
leadership in the market, without compromising on
quality. Indeed, the banner claimed the number two
spot in the annual price comparison study by the
country’s leading consumer organization.
During 2009, Alfa Beta reinforced its competitive
position by lowering prices and increasing the
number and scope of promotional activities. To
celebrate its 70
th
anniversary, Alfa Beta organized
a six-week promotional program called
”Low Price
Autumn”
with more than 100 items posting price
reductions of up to 35%. Mega Image introduced a
new price policy narrowing the gap with its closest
competitors. Super Indo also lowered prices in the
Bandung area to improve its competitive position.
In 2009, getting value for money became even more important for customers. This mindset is here to stay.
Throughout our Group, our banners have addressed this trend by improving their price position and image
while offering a high-quality assortment. Indeed, value leadership is key to driving profitable growth.
Competitive Pricing
Private brands
generate more than
40%
of revenues
at Delhaize Belgium.