Netto is a Danish supermarket group, opened its first store in December 1990, since then Netto has been trading in the UK successfully. Although it is pitched at the more affluent middle market in it's own country, in the UK it has aimed exactly for the budget end.
Everything Netto does is designed to keep prices down. The stores are very simple, many looking like warehouses, and products are generally displayed either on the pallets they have been transported on or in their packing cases with the fronts cut away. Very little effort or expense is made in presenting (merchandising) the goods to the customers - Netto is thus a far cry from Sainsbury's in this field!
Prices are very good at Netto, although the range is limited. It is therefore very good for getting "basic" shopping - you can save a good money (pounds) a week and do "top up shopping" at a more mainstream supermarket.
Fewer products on sale at Netto are brand name, so you know that you are getting exactly the same product as you would at the more expensive supermarkets - just at a cheaper price.
In store the service can be a little poor - the shop floor workers cutting away the fronts of boxes all carry Stanley knifes, which is a little upsetting! Queues are the checkouts are hardly what you'd call short, either.
So comparatively to other stores like Tesco and Sainsbury prices are very cheap at Netto that's why within few years of time Netto is one of the fastest growing food chains in UK currently running 118 stores across the country (1997).
Q1: Marketing Strategy pursued by Netto since its entry to the UK
The major marketing strategy of Netto can be described as follows:
-Convenience for the...