Food Lion 2006 Annual Report Download - page 15

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DELHAIZE GROUP / ANNUAL REPORT 2006 13
IN FOCUS
PRICE EFFORTS
IN BELGIUM
In 2006, Hannaford launched Guiding Stars, the fi rst-
ever in-store nutrition navigation system in the U.S.,
making it easier for interested shoppers to choose
more nutritious foods. Hannaford analyzed more than
32,000 products, including all brands and all product
categories and awarded them stars based on their
nutritional value. Foods receive positive points for
nutrients such as vitamins, minerals, dietary fi ber and
whole grains, and get negative points for ingredients
such as trans fat, saturated fats, cholesterol, added
sugar and added salt. The formula used for this analysis
was developed by an independent scientifi c advisory
panel. The system features one, two or three stars,
which are on food shelf tags throughout all Hannaford
stores. Consumers responded very favorably to the
system, particularly praising its ease of use.
In 2006, Delhaize Belgium worked vigilantly to improve
its price positioning and perception, and introduced a
refi ned price comparison methodology. Following this new
methodology, it lowered the prices on approximately 1,000
products at the beginning of the year. Pricing was adapted
continuously on an item level, supported by price-focused
advertising and marketing initiatives. In early 2007,
Delhaize Belgium obtained the certifi cation of its price
comparison methodology by OIVO-CRIOC, an independent
consumer organization. All these initiatives allowed the
company to improve price perception, resulting in stronger
sales and market share growth.
Different customers have different
lifestyles and are in different life
stages, demographic groupings, etc.
and therefore have different needs
for products and services. To account
for these differences in a network of
almost 1,300 stores, Food Lion started
a thorough analysis of loyalty card,
transaction and external sociographic
data. Based on this, Food Lion identifi ed
eight mutually exclusive customer
segments and 13 combination clusters.
The store-specifi c profi les that resulted
from this effort aides Food Lion not
only when deciding on which brand to
implement in which area, but also in
decisions on assortment, service and
marketing.
CUSTOMER
SEGMENTATION
AT FOOD LION
NUTRITIOUS
SHOPPING
MADE
SIMPLE
In stores with a high number
of aged customers, people
can fi nd magnifying glasses in
the pharmacy department to
read the products’ instruction
leafl ets.