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Transcript of Loblaws
Final Cumulative Assignment
Two C's of Marketing
Consumer Market -
As a retail store, there are many different type of customers that come and go. The age may vary from a child with their parents, to a grandma with their nephews. Gender and family is always random because they sell products for anyone. The people that shop at Loblaw’s are usually middleclass and have a mediocre income. Loblaws does not need to depend on a specific group but rather they have a large market in Canada to work with.
Supermarkets are common among many neighborhoods including big names such as Sobeys, Metro, and Wal-Mart, in which are Loblaw’s top competitors. Sobeys have been expanding in more recent years catching up to Loblaw’s, although struggling due to the mass empire that Loblaw’s has established. Wal-Mart is still the leading, due to its international business, while Loblaws and Sobeys are both domestic businesses.
2012 Revenue in billions -
Loblaws : $31.604
Sobeys : $16.249
Wal-Mart : $468.651
Products and Services
Loblaw is a supermarket in which they sell: baby essentials, baked goods, beverages, dairy and eggs, deli, seafood, frozen foods, household items, meat, fruits and vegetables, and pet supplies. These product may vary from a variety of different brands or their own.
*Loblaw’s have their own privately labeled store brand called “President’s Choice” which sell groceries and household products.
Not only does Loblaw check out your purchased items, but they have many other services as well. Loblaws tends to collaborate with other companies as well to offer a better experience towards customers. Some may include- Goodlife Fitness, PC Cooking School, a pharmacy, Joe Fresh, and other businesses as well.
Profits and Losses
4 P's of Marketing
Since Loblaws is a domestic business, they have locations only in Canada.
Stores are located in mostly Quebec and Ontario such as – Markham, Richmond Hill, London, Ottawa, North York, Toronto, Delson, Montreal, Trois- Rivieres and many more.
Loblaws actively promotes their brands all over the Internet, on television, on major magazines and other events such as the Toronto Fashion Week promoting the Joe Fresh apparel, and the “Recipe for Riches” tv show promoting President’s Choice.
There are also many sales during the year and special deals on their weekly flyers.
*Loblaws is also active on Social Medias, giving daily facts and special deals to followers.
The price of their products are similar to the other big retailers, although with frequent sales in specific products. Their President’s Choice items are also priced relatively according to the product’s market.
Innovation / Invention
Exports / Imports
Advantages and Disadvantages
Loblaws have not invented any products yet, although they have started a new brand called "President's Choice" in which they innovate products already made. Their most famous product is their Chocolate Chip Cookie.
Loblaws has a very well thought out principle and ethics that the company follows very strictly. They centralize in creating a cleaner and safer environment.
Their key ideas are to:
- Respect the environment
-Source items with integrity
- Make a positive difference in our community
- Reflect our nation's diversity
- Be a great place to work
- Easier to manage the company because the owner does not need to constantly go around checking and helping other locations in other countries.
- Understanding the market is much easier due to the small area, giving good insight and predictions towards consumers.
- Access to markets are much more limited, therefore harder to acquire more profit and business.
- Access for resources may not be as easily obtained because the company only have locations in its own country.
Loblaws import a huge variety of products from many different countries, although they do not export because of the domestic business.
(Only sells in Canada )
( Public Corporation yet have few locations which are franchises)
- Fruits and Vegetables from exotic countries
- Meat from better environments
BREAKING NEWS - On Wednesday April 24, 2013 a factory in Bangladesh collapsed that produced Joe Fresh clothing. The incident killed over 194 people, and Loblaws has agreed to pay the families compensations only after 6 months of evaluation.
INTERESTING: George Weston also owns T&T, Oceans, Nofrills, PC and Shopper Drug Mart.
In a sense, creating his own competition and expanding his field.
(TSX : L)
KNOWLEDGE: The Loblaws in the "Maple Leaf Garden" is the biggest store they own.
By: Justin Tso
: - Theodore Pringle Loblaw and J Milton Cork founded Loblaw Groceterias in Toronto (1919)
- Expanded all over North America
- W. Garfield Weston bought 100,000 shares making him co-founder (1947)
- 2006 Joe Fresh is introduced
- 2009 First wind turbine to power a store in NB
This years revenue was better than expected, and it may be due to the large market that Loblaws and the Weston companies cover.
As of March 2014, Loblaws has had a revenue of about $43 billion.
President's Choice always seek opportunities to improve their products, therefore their employees travel the world to find the best recipes and ingredients, as well as inspiration.
Sometimes items are recalled due to low interest or low popularity of the product.