This article examines various pricing strategies that grocery stores utilize to remain competitive.
Appropriate Subject Area(s):
Pricing, business management, competition, marketing
Key Questions to Explore:
- How do pricing policies make a store more or less competitive?
- Football prices, ad collision, ad match, provide coverage
Introduction to lesson and task:
The lesson examines the intensifying pricing battle in the fast-consolidating Canadian grocery sector.
Action (lesson plan and task):
- Review the marketing mix with the class: Four P’s Product, Price, Place and Promotion.
- Review pricing strategies with the class, including:
- Keystone pricing
- Meet or beat the competition
- Discuss the notion of meet or beat the competition and explore how a store does this. What are the implications?
- Distribute the article for reading.
- Have students individually prepare a charted summary of the article highlighting the key points.
- In groups of four, have the students share their highlights and discuss their understanding of the article.
- As a class, discuss Loblaw’s positioning within the grocery field.
Consolidation of Learning:
- Have students write a one page paper on why they think the Competition Bureau is concerned about Loblaw’s pricing practices.
- Students understand price competition and can distinguish between the various pricing strategies.
- Have students examine three products commonly used in their household and compare the prices either in-store or online at three different sellers. Have them share with the class what they discover..