Costcutter to introduce value brand

Costcutter is preparing to introduce a non-branded store fascia to fulfil the lower end of the convenience market as part of its strategy to elevate perceptions of the core brand.

/t/m/x/costcutter160.jpg

The as yet unnamed brand will be the third tier in Costcutter’s new approach to segmenting the convenience market and offer separate propositions to target the upper, core and lower end of the market.

Costcutter revealed its upmarket MyCostcutter brand fascia last week.

The symbol group operates 1,600 convenience stores as part of its franchise business and expects to convert 300 stores under the non-Costcutter brand from next year. Around 100 will become elite MyCostcutter branded stores while 1200 stores will retain the core Costcutter brand and white fascia.

Ian Bishop, Costcutter marketing director, says the chain has had the same look for 25 years, adding that the business hasn’t changed much in more than a decade.

The symbol group says it did not know enough about its retailers or customers so carried out a segmentation study and found three distinct tiers that didn’t exist 10 years ago, but it only had one offer to serve all three.

“We want to make people look at our brand again but the difficulty is that the standards of retailer vary across the estate and we are only as good as our worst retailer,” he says.

“What we want to do is improve standards across the estate and take the Costcutter brand upwards. If we look at our bottom end, some stores aren’t as good as they should be, but we don’t have a product that fits the lower end of the market. We want to create a product that fits that need, protect our core brand and develop an elite offering in MyCostcutter.”

The value chain will compete with the likes of Netto, the core Costcutter brand takes on Nisa Today’s and Londis while the “elite”

MyCostcutter brand has been developed to compete with chains such as M&S Simply Food and Waitrose.

The group plans to launch a TV and national press ad campaign next year to communicate its positioning.

Recommended

Near-field communication is future of mobile connection

Marketing Week

The fact that technological advances always take a while to bed in might explain the results of research showing that the biggest barriers to wider use of QR codes are a lack of knowledge about them, resulting in consumer apathy towards the technology (MW 8 September). However, we know from the campaigns we have carried […]

Groupon Logo

Groupon traffic dives as it fails to retain relevance

Charlottle McEleny

Groupon traffic has fallen, according to analysis by search and social agency iCrossing, as it fails to stay relevant against increasing competition. Read the article here. This story first appeared on New Media Age. For more digital stories and analysis’ from NMA click here now

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now