Vidal supermarkets store chain that currently has 22 establishments with its main focus on the Valencia region, specifically in the provinces of Valencia and Alicante, may be an example of strategic branding, let’s see why.
In Valencia there are many brands of supermarkets locally, most of these stores in times of crisis have bet on the price as strategic brand positioning, and it seems logical given the economic environment in Spain, including Mercadona was positioned before as quality and variety of choice, almost level with the supermarkets of El Corte Inglés, but over time, has been prioritizing its own private labels: Hacendado, Deliplus, etc, and reducing the range of brands available for sale, in my opinion until the end, but it’s part of their strategy and approach.
I understand that in theory was in order to be more competitive on price, and mostly sell their private labels, dominate most providers suppressing margins, and thus increasing profits, but for the customer is perceived to have been a bet clear for the price, so much so that in some cases, to approach regarding branding, other chains started by: cheap house brand, as is the clear case of Supermercados Día, part of the Carrefour Group and have traveled the opposite way, increasing the range of their products in linear, and perhaps something quality and price, while maintaining the essence of closeness to the buyer with many locals in the most remote places sometimes even if tiny.
In case of supermarkets Vidal commented, I do not know if, after the acquisition by the Alcoy company Kuups (Nudisco), but the question is who has opted for a clear position against the leader: Mercadona and its current strategic, as I said in the case of Ford and GM, offering a wide variety.
I went this saturday and had absolutely all kinds of products, from what I could think of, even with plenty of variety of brands to choose from to the point of overwhelming, and quality of products and brands. The facilities were new and even hand baskets were new and robust models.
Also, if I turned around, I could see that the usual clients users seemed upper middle class and very demanding, it may not look so much price despite the situation and appreciated more power to decide and buy the best being near house.
Maybe for some it may seem a suicide not going to position for the price these days, but certainly even at this time, no place to go upstream and benefit from it.