Marketing mix of Sobeys (4Ps of Sobeys)
This is a comprehensive analysis of the marketing mix of Sobeys. It aims to examine the company’s 4Ps i.e. product, price, place, and promotion strategies. Sobeys Inc. is a Canadian company, headquartered in Stellarton, Nova Scotia.
Product strategies of Sobeys
Sobeys’ products fall into diverse categories i.e. baby, bakery, baking, dairy, deli, drinks, frozen foods, fresh fruits and vegetables, health & beauty, households products, meat & seafood, soup, broth & bouillon, snacks & candy, seasonal, pantry, pets, and prepared foods. It launched its private label offerings ‘Compliments’ in 2005 with a view to offering customers products that combine quality, price, and selection (Sobeys, 2021).
Sobeys’ private label offerings are growing very rapidly. Therefore, the company has brought about some changes to those products such as new looks and graphics so that customers may perceive them as similar and equivalent to national brands. It offers 100% Guarantee meaning that if customers are not 100% satisfied, they can bring the products back to a store within 14 days of purchase and ask for a full refund.
Sobeys often introduces new products to satisfy the demands of its customers. However, it had to recall a number of products in the last several years due to contamination and other health concerns.
Pricing strategies of Sobeys
Some analysts argue that many of Sobeys’ products are more expensive than those offered by its competitors. However, others observe that the company has started adopting a low-pricing strategy for some of its offerings. It introduced FreshCo (a deep discount supermarket) in 2010 to offer customers high-quality food at discount prices. This shows that Sobeys has listened to the desires of the discount shoppers very well.
Place/distribution channels of Sobeys
Sobeys has over 1,500 corporate and franchise stores, and 27 distribution centres in Canada (Sobeys, 2021). Its distribution centres have automated facilities. It signed an agreement with Ocado Group plc in 2018 to introduce home delivery services. It should expand this service throughout Canada as more and more people are getting used to home delivery services.
Promotion strategies of Sobeys
Promotion is the last area of focus in the Marketing mix of Sobeys (4Ps of Sobeys). Sobeys runs wide-ranging promotional campaigns throughout the year. For instance, it has a fully integrated campaign of TV ads, online videos, and digital billboards situated near its stores to promote its private offerings, Compliments (Lombardo, 2020). Likewise, it signed an agreement with Jamie Oliver (a celebrity chef) in the past to promote its healthy products.
Sobeys’ Facebook page is doing well; however, its Instagram page and YouTube channel have a limited number of subscribers. Apart from advertising, it also uses other techniques such as sales promotion and public relations to reach out to the customers.
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Last update: 08 July 2021
Lombardo, C. (2020) Sobeys launches its largest-ever private label campaign for Compliments, available at: https://strategyonline.ca/2020/09/28/sobeys-launches-its-largest-ever-private-label-marketing-campaign-for-compliments/ (accessed 02 July 2021)
Sobeys (2021) Our company and purpose, available at: https://corporate.sobeys.com/our-purpose/ (accessed 06 June 2021)
Author: M Rahman
M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.