Fear that Æ send Rema in in dødsspiral – Adresseavisen

the Case is updated.

Rema 1000 launched Wednesday app Æ after having spent weeks building up expectations. If your customers log into and link your atm card to the app, they will get 10 per cent on the ten items they even buy most of the in Retail stores across the country, as well as 10 per cent of all fruit and vegetables.

This immediately triggered a price war on fruit and vegetables , where the Kiwis doubled the discount to 15 per cent and Coop Extra and Note introduced the 11 per cent discount.

– Desperate

Professor and merkevareekspert Tor W. Andreassen seems the Rema fabric is disturbing, writes the newspaper Aftenposten.no .

He fears now that the Rema puts himself in a difficult situation:

– It is obvious that Rema has a desperate need to reclaim its brand position as the lowest boy in the class. Rema is challenged by Kiwi and Coop which in the past has taken market share from them. Reduction is the easiest to copy, and both Coop and Kiwi already has the black, ” says Andreassen and adds that the big question today is: “What does Rema now?”.

Read also: – This is embarrassing

the Professor doubts that customers rejoice

So far, the Kiwis won the green-the battle, because the majority of customers now associate the good fruit and vegetables with Kiwi green logo.

Several others thought the Rema launch were not in the style to the expectations.

Read also: Æ-a was a letdown

Professor of marketing at the College Kristiania (oslo), Lars Erling Olsen says to E24 that he does not think customers are thinking, “this is fantastic”.

One of the reasons is that the other two major players already have the equivalent of the loyalty program.

Tor W. Andreassen is professor at the Center for Service Innovation, Norwegian School of economics. Photo: NTB scanpix

– don’t Hit the heart

– If Rema with his Æ-app tries to create loyalty by delivering to the heart, hit the not. To put down the prices does not create loyalty. One such app is therefore hopeless when it comes to this. Now, the question is who has the lowest cost and most gasoline in the tank. Given the Rema’s position, I fear that they lose, ” says Andreassen.

– Since Norwegian consumers turns out to be very little loyal on price, is the operation Rema now performs very risky, he believes.

Andreassen points to data from the retail sector that shows that the customers moves in quickly after the lowest price.

Read also: Now has Rema revealed what Μ is

Fear that the customers do not find their goods

In addition to the launch of the Æ has Rema made a clean up in their shelves, where some brands have been taken out to give more space for other goods in which Rema has been a better prisavtale.

In practice, this means that they have fewer products.

– If your customers experience enough times that they do not find the goods they are used to purchase, Retail experience a kundevandring over to other chains where they get everything at one place. In this industry means the volume almost all, that is what they negotiate their prices from the suppliers, ” continues the professor.

With other words: the Fall turnover, the goods are automatically more expensive for the Rema.

It will lead to higher prices in the store and customers want to move even more over to the other chains.