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The Strategies of Price Chopper Supermarket

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Discuss some of the pull and push strategies that Price Chopper supermarket uses to increase product contact for grocery items.

Describe these strategies by stating how they have increased product sales.

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Solution Summary

The push and pull strategies of Price Chopper Supermarket, the processes and systems that they have been using to increase their sales, the objective and the aggressive application of information technology in their marketing and operational strategies are being discussed in this solution.

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Price Chopper is a chain of 80 24-hr. supermarkets in New England. During the last few years, Price Chopper has applied information technology (IT) very aggressively, particularly to its Point of Sale (POS) operations. This is how it is actually pushing its technology and all its efforts into pulling back their customers in the long run. The following are some of the strategies that Price Chopper Supermarket has done to increase product contact for their grocery items:

1. In 1980s, Price Chopper installed ATMs and Point of Banking (POBs) Terminals at customer service desks throughout the chain and by doing such, it didn't only increase its sales but it also complemented the other services offered at those locations. Eventually, they installed its own network, and a Stratus-based fault-tolerant switch and transaction-processing node resulting in capturing a variety of financial transaction-types and passes them on to the relevant financial institutions.

2. Customers pay transactions in various methods, some by cash, others by cheques or by cards. There is a high variability in terms of the cost per transaction. To simplify matters up and to make it more convenient for all, Price Chopper issues its own frequent shopper card, which performs multiple functions. Payment may be performed using the magnetic stripe on the card to effect an ACH electronic cheque ...

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