Kroger 2008 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2008 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 54

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54

The Kroger Co. Page 23
brands, quality is the key ingredient. Before Kroger will carry a banner
brand product, the quality must be tested with key customers to ensure
overall liking and product quality versus the competitive set.
3. Our Value™ brand aims to offer our price sensitive customers a choice
of basic products that are priced to fit their budget. The Value™ brand
offers practical, economical solutions for everyday needs.
Kroger’s three-tier own brands strategy generates strong profit margins.
Our “good, better, best” approach enables us to serve a very broad and
diverse customer base.
Meeting Customer Needs
Understanding our customers and responding to
their needs through product innovation is a key
part of our own brands strategy.
In 2008, our Private Selection® brand reached
$1 billion in annual sales, driven by strong
innovation. Our PS Tiger Shrimp, with our cook in-
shell and proprietary deveining technology delivers superior taste, texture,
color, and appearance, creating culinary delight when consumed. We
introduced a complete line of fresh, premium, cleaned, and cut vegetables
in microwave bags under the Private Selection® brand, and we stole the
show with our award-winning PS Black Cherry Pie in Deli Bakery.
Our banner brand also delivered unique items that meet our customers’
needs. In the frozen aisle, our Banner brand “Three Minute Pizza” provides
a fast and easy way for our customers to have after-school snacks or quick
meals. Our Banner brand frozen chicken chunks with Bourbon, Caribbean,
Mexican, or Mole sauce offer new and exciting flavor experiences for our
customers. We introduced Banner brand tortilla chips – which we
manufacture in one of our own plants – in a new bag size to bring a unique
$1 price point to bagged snacks that is popular in the recent challenging
economy. Finally, Banner brand cake mixes with edible images brought a
unique way of decorating cakes to our Banner brand moms. These are just
a few examples of how our Banner brands met customers’ needs in 2008.
Our Value™ brand brought solutions to our budget-focused customers
through innovative price points and new basic offerings. Our Value™
brand fresh potatoes brought new purchasers into our produce department,
and our pre-priced Value brand bread (along with other pre-priced items)