The Kroger Co. Business Success Strategies
Building a successful business entails taking certain decisions. Here are the strategies and keys that are instrumental to Krogerâ€™s business success, which you can adopt in your business too.
Setting Up Business In Area Of Your Expertise
A start up business stands to succeed more if it is founded in an industry where the founder has some expertise. Having a good knowledge of the industry before starting a business in it will help you to take the right decisions in running it, and to avoid costly mistakes.
Before starting his business, Kroger had been in the industry right from when he was a boy.
Looking For Ways To Help Customers Save Money
Successful companies are those who are focused on satisfying their customers, and one way you can really make your customers pleased with your service is if your prices are low, and therefore help your customers to save money. Everyone desires to keep more money while leaving with more articles from a store.
Kroger knew he would be giving his customers huge value if he could provide them quality products at low prices, so he baked his own bread, and later added other products, which his customers bought at low prices.
Sticking To Offering Quality Products
There is no way a business can succeed without offering quality products. You will be gaining the trust and loyalty of your customers if they knew you go all out to provide the best quality product available.
The quest to provide top quality products led Kroger to being the first grocery retailer in the U.S. to test foods and monitor the quality of products sold in its stores.
Knowing Your Customersâ€™ Needs
Knowing your customersâ€™ needs or desires will enable you provide the exact service or product that meet them, and get your customers fully satisfied. Therefore, it pays to invest some of your resources in researching the needs of your customers.
In the 1970s, Kroger had perfected its scientific method of researching its customersâ€™ needs, which provided it the information upon which to plan and advertise its business.
Expanding Your Product Line
Once your business has taken root, the next thing is to develop more products or services. This will definitely increase your revenue and profit and enable you to maximally employ the full potential of your resources. However, be sure that the new product or service will add more perceivable value to what your customers are already getting.
In 1960, Kroger realized that most of its customers also buy drugs, and so would be giving them the convenience of shopping for grocery as well as buying drugs in the same environment, and so it came up with the idea of having drugstores built next to its grocery stores, which brought increased revenue to the company.
Reducing Your Cost Of Operation
No matter how much revenue you are generating monthly or yearly, if you donâ€™t watch your cost of operation, you will discover at the end of the year that you are not making as much profit as you should. And if your cost of operation keeps mounting, your profit may completely be eroded, bringing your business it its knees. To remain profitable you must continually check how much you are spending operating your business, and finding ways to reducing it.
Kroger was able to achieve $1.2 billion profit in 2002 due primarily to its cost reduction program.
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