M RahmanMarketing mix of Loblaw Companies Ltd (4PS of Loblaw)
This is a comprehensive marketing mix of Loblaw Companies Ltd (4Ps of Loblaw). Loblaw Companies Ltd is one of the largest retail companies in Canada. It is a food and pharmacy retailer that operates more than 2,400 stores across Canada and employs around 200,000 people (Loblaw Companies Ltd, 2023).
Loblaw Companies Ltd has been successful in implementing an effective marketing mix to reach its target market and increase its brand awareness. This article examines all 4 elements of the mix in detail.
Product strategy of Loblaw Companies Ltd
Product refers to the products or services that companies offer. It includes the features, design, quality, and packaging of the product or service. It is important to choose the right products to meet the needs, and expectations of the target market.
Loblaw Companies Ltd has a wide range of products and services, including grocery, pharmacy, financial services, health and wellness, fashion, beauty and more. It is constantly introducing new products and services to meet the needs of its target market.
Loblaw’s product developers frequently travel around the world in search of new and unique food experiences to increase the diversity in its offerings (Loblaw Companies Ltd, 2023). This helps the company stay ahead of competition and meet diverse consumer demands.
Loblaw Companies Ltd has a wide range of products that appeal to health-conscious consumers, such as organic and natural food products. It also has products and services that appeal to budget-conscious consumers, such as discounted products and services.
Pricing strategy of Loblaw Companies Ltd
Loblaw Companies Ltd has been successful in setting a competitive price for its products and services to appeal to its target audience. Furthermore, it decided to freeze prices on 1,500 No Name brand products for some period in 2022 to help the customers who were struggling with high cost of living. However, the price freeze has ended, making many customers frustrated.
Some customers and analysts argue that many products are expensive at Loblaw. In fact, the company agrees to it as well as evidenced from its recent Twitter comments with self-defence: ‘Food prices are higher in our stores simply because the manufacturers who make the products are charging more for them’. However, it claims that it profits less than $4 for every $100 spent on groceries (Talbot, 2023).
Place strategy of Loblaw Companies Ltd
Place is a very important element of the marketing mix of Loblaw Companies Ltd (4Ps of Loblaw). Loblaw has a wide network of stores across Canada and has also been successful in leveraging its size and market share to expand its reach.
The company is also active in e-commerce. Digital services like online prescriptions, and text reminders are very useful for patients to manage medications for themselves or a family member (Loblaw Companies Ltd, 2023).
Loblaw has opened stores in shopping malls, airports, and other high-traffic areas to increase its reach and appeal to its target customers. It has also opened stores in rural areas to provide them with access to its products and services.
However, Loblaw is not immune from supply chain challenges. For instance, Frito-Lay Canada, one of Canada’s biggest food manufacturers, halted shipments to Loblaw stores in 2022 as the latter had refused to accept a price hike. This has left Loblaw’s food aisle less full than usual (Global News, 2022).
Promotion Strategy of Loblaw Companies Ltd
The last element in the marketing mix of Loblaw Companies Ltd (4Ps of Loblaw) is promotion. Promotion refers to communication with the target market. It includes advertising, sales promotions, public relations, and other promotional activities. It is important to choose the right promotional activities to reach customers and increase brand awareness.
Loblaw has been active in traditional media, such as television and radio. It advertises in consumer-related magazines as well. In fact, it has been successful in leveraging its advertising campaigns to reach its target market very well.
The company also offers discounts and promotions on its products and services to increase sales. Likewise, its PC Financial® products deliver everyday rewards towards free groceries, beauty, and more.
Loblaw has been active in digital marketing, such as social media, and search engine optimization. However, it should work more to increase the number of followers/subscribers in its social networking sites such as Facebook, and YouTube.
Summary of marketing mix of Loblaw Companies Ltd (4Ps of Loblaw)
In conclusion, Loblaw Companies Ltd has been successful in implementing an effective marketing mix to reach its target market and increase its brand awareness. It has been successful in creating products and services that are attractive to its target market and that are in line with its brand image.
The company has also been successful in setting a competitive price for its products and services, selecting the right distribution channels, and leveraging its promotional activities to reach its target market. However, it needs to improve in some areas as stated above.
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Last update: 08 February 2023
References:
Loblaw Companies Ltd (2023) What we do, available at: https://www.loblaw.ca/en/what-we-do (accessed 07 February 2023)
Global News (2022) Loblaw ‘effectively managing’ through supply hurdles, available at: https://globalnews.ca/news/8643028/loblaw-supply-chain-inflation/(accessed 07 February 2023)
Talbot, M. (2023) Loblaw says it has unfairly become ‘the face of food inflation’, available at: https://toronto.citynews.ca/2023/02/01/loblaw-food-inflation-no-name/ (accessed 07 February 2023)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
