Recently certain serious changes in the dynamic retailing sector could be noticed. Changes in the market environment, and a certain adjustment of the customers’ needs, demand for a reaction in the market. Satisfying these changing needs, the importance of discounters in the retailing branch was more and more strengthened, since these markets are beginning to better meet the needs of the majority of customers in the market. Consequently discounters face a certain success and were able to grow and to capture new market shares of other retailing institutions by generating more and more sales.
Therefore the aim of this paper is to provide a description of the current situation and the further expected development in the retailing market in Europe. To stress the importance of the discounters’ influence on the market as well as the difference between different market’s institutions satisfying various and differing needs of differentiating groups of customers, a comparison of an exemplary ordinary retailer, SPAR, and an exemplary discounter, the LIDL Stiftung & Co. KG, is provided. Within the whole retailing industry, the food branch provides an exemplary market to work out these differences among discounters and ordinary supermarkets. In this market, discounters faced a certain success and customer changes could be more clearly and numerously recognized.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Ways of Investigation and Sources
- European Food Market
- Overall Situation and Trends of Evolution
- Recent Changes in the Market
- Presentation of SPAR
- History and different Markets of SPAR
- General Management
- Presentation of the LIDL Stiftung & Co. KG.
- History and current Position of the LIDL Stiftung & Co. KG.
- Market Strategy and Communication
- Critics
- Discussion and Comparison
- Strategies
- Marketing Activities
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to describe the current state and future development of the European retail market, focusing on the growing influence of discounters. A comparison of SPAR (a typical retailer) and LIDL (a discounter) within the food sector illustrates how different market institutions cater to diverse customer needs. The food branch exemplifies the success of discounters and clearly reveals changing customer behavior.
- The changing dynamics of the European retail market
- The rising prominence of discounters
- Comparative analysis of SPAR and LIDL business strategies
- Analysis of consumer behavior and its impact on market trends
- The role of marketing activities in the success of retailers
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This chapter introduces the significant shifts in the dynamic retail sector, particularly the rise of discounters in response to evolving consumer needs and market changes. It highlights the increasing success of discounters in capturing market share and sets the stage for a comparative analysis of SPAR and LIDL to understand how different retail models address varying consumer preferences within the food retail industry, chosen for its clear demonstration of these trends.
Ways of Investigation and Sources: This chapter outlines the research methodology employed in the study. It details the various sources of information used, including company descriptions, articles, magazines, third-party sources, data from European statistical offices and A.C. Nielsen GmbH, and the book "Retailing Management" by Levy and Weitz. The methodology emphasizes a balanced approach, combining company-specific information with external data and theoretical frameworks to provide a comprehensive analysis. The use of multiple sources aims to ensure a less subjective perspective and robust support for the conclusions drawn.
European Food Market: This chapter provides an overview of the European food market in 2001, highlighting the dominance of France, the UK, Germany, and Italy, and the rapid growth in Eastern European countries. It discusses the disparity in market development across Europe, with mature Western markets showing stagnant growth and Eastern markets experiencing rapid expansion. The chapter analyzes the decreasing share of food retail sales as a percentage of overall retail sales due to increased consumer wealth, leading food retailers to focus on Eastern European markets. Globalization's impact on retailers' strategies and the need for adaptation to local contexts are also discussed, culminating in a definition of a supermarket and an examination of key evolutionary trends: the growing preference for ready-made meals and the boom in the ethnic food sector.
Presentation of SPAR: This section would delve into a detailed analysis of the SPAR supermarket chain. It would cover the history of the company, its expansion across various markets, its overall management strategies, and its positioning within the broader competitive landscape. The analysis would likely examine SPAR's target market, its strengths and weaknesses compared to discounters, and how its operations are structured to cater to its customer base. A thorough exploration of SPAR's approach to pricing, product selection, and customer service would likely be included to provide a comprehensive view of the company's overall strategy and effectiveness.
Presentation of the LIDL Stiftung & Co. KG.: This section would offer a comprehensive examination of LIDL, focusing on its historical trajectory, its current market position, its unique market strategies, and the communication methods it uses to reach its target audience. The chapter would likely analyze its aggressive pricing strategy, its efficient supply chain, and its private label product offerings. Critical analysis of LIDL's approach and any criticisms leveled against the company's business practices would also be included, creating a well-rounded picture of this major player in the discount supermarket sector.
Schlüsselwörter (Keywords)
European food retail market, discounters, supermarkets, SPAR, LIDL, consumer behavior, market trends, retail strategies, marketing activities, competitive analysis, market share, globalization.
Frequently Asked Questions: European Food Retail Market: A Comparison of SPAR and LIDL
What is the main topic of this paper?
This paper analyzes the European food retail market, focusing on the rise of discounters and comparing the strategies of a typical retailer (SPAR) and a discounter (LIDL). It examines how these different market institutions cater to diverse customer needs and reflects changing consumer behavior.
What are the key themes explored in the paper?
Key themes include the changing dynamics of the European retail market, the increasing prominence of discounters, a comparative analysis of SPAR and LIDL's business strategies, consumer behavior's impact on market trends, and the role of marketing activities in retailers' success.
Which companies are compared in this study?
The study compares SPAR, a typical supermarket chain, and LIDL, a prominent discounter, within the European food retail sector.
What is the objective of this research?
The paper aims to describe the current state and future development of the European retail market, particularly the growing influence of discounters, by comparing the strategies and approaches of SPAR and LIDL.
What sources of information were used in this research?
The research utilized a variety of sources, including company descriptions, articles, magazines, third-party sources, data from European statistical offices and A.C. Nielsen GmbH, and the book "Retailing Management" by Levy and Weitz.
What methodology was employed?
The research employed a balanced approach, combining company-specific information with external data and theoretical frameworks to provide a comprehensive analysis. Multiple sources were used to ensure a less subjective perspective.
What is covered in the chapter on the European Food Market?
This chapter provides an overview of the European food market in 2001, highlighting market dominance and growth in different regions. It discusses market trends, such as the decreasing share of food retail sales and the impact of globalization, as well as the rise of ready-made meals and ethnic food.
What aspects of SPAR are analyzed?
The analysis of SPAR covers its history, expansion across various markets, management strategies, target market, strengths and weaknesses compared to discounters, pricing, product selection, and customer service.
What aspects of LIDL are examined?
The examination of LIDL includes its historical trajectory, current market position, market strategies, communication methods, pricing strategy, supply chain, private label products, and criticisms of its business practices.
What is the focus of the "Discussion and Comparison" chapter?
This chapter compares the strategies and marketing activities of SPAR and LIDL, highlighting their differences and similarities in approaching the market.
What are the key takeaways from the chapter summaries?
The chapter summaries provide concise overviews of the key findings and arguments presented in each section of the paper, offering a structured understanding of the research’s progression and conclusions.
What keywords are associated with this research?
Keywords include European food retail market, discounters, supermarkets, SPAR, LIDL, consumer behavior, market trends, retail strategies, marketing activities, competitive analysis, market share, and globalization.
- Quote paper
- Niklas Kürten (Author), 2006, Consumption Behavior - Comparison of SPAR and LIDL, Munich, GRIN Verlag, https://www.grin.com/document/79088
