Compare Of Nofrills&Foodbasic

Background

Company Identification No frills are a chain of franchised "hard discount" grocery stores

Location Based on Ontario, Canada

Type Supermarket

Headquarters East York, Ontario

Industry Retail

History 1978 Founded, while most grocery stores carried thousands of items, that first No frills featured only 500.

1970s Operated a few stores in Buffalo and New York, but closed after mid-1970s.

1980s Regular national brands were introduced as part of the stores' offerings.1987, Loblaws decided to harness the entrepreneurial spirit of local ownership, changing the stores into franchise operations.

1990s Widely expanded by Loblaw Company Ltd.

Structure Owned by Lablow Company Ltd., a subsidiary of George Weston Limited. Franchise operations system, owners put their names out front,

Corporate Culture Provide the lowest prices to the customer, no frills

Background

Company Identification Food Basics is a no-frills Canadian supermarket chain created to compete with the successful No Frills warehouse style supermarket.

Location Based on Ontario, Canada, over 100 locations

11 stores in U.S.A

Type Supermarket

Headquarters Toronto, Ontario

Industry Retail

History A&P Canada opens the first Food Basics, a no frills

store offering every day low prices, in 1995.

In fall 2006, Metro Inc. began to renovate Food Basics Stores. The design and format of these new stores closely resemble Metro's Super C Banner in Quebec. New store signs feature broken lettering and a larger emphasis on yellow, white and beige colors. Drug Basics Pharmacy also changed to just "pharmacy" on a blue background color.

In spring 2007, Metro Inc. initiated their new BDMS inventory system into all of their warehouses.

Structure Owned by A&P Canada, which was purchased from A&P by Metro Inc. in 2005. Franchise operation system.

Corporate Culture Provide the lowest prices to the customer, no frills

Strategy

 No name:

Cheaper than name brands, and most of them are as good and some of them are even better. With their distinctive yellow packaging, bold lettering, and low prices, no name was proving a big hit with consumers.

In the beginning, No Name products were branded in yellow and black packaging (the product name in black letters on yellow), without any graphics or product photography to cut down product cost. This went against the prevailing assumptions of marketers about how to attract customers.

 PresidentЎЇs Choice:

Loblaws had introduced the successful better-quality President's Choice products in the middle to late 1980s with higher quality graphic design on their packaging. It started redesigning the No Name products packaging right afterwards. No Name product packaging went from the bland look of the 1970s and early 1980s, to including abstract production illustrations in the 1990s, to (more recently) photos of the products as seen today, all the while maintaining the well branded yellow color the brand is known for.

 No frills:

Were able to pass on even more savings by leaving products on display in their cardboard shipping cartons, with the sides cut away. Produce, normally washed by hand and carefully arranged, was left in its original box.

 Work with the Community

PresidentЎЇs Choice ChildrenЎЇs Charity is dedicated to helping children who are physically or developmentally challenged. They provide direct financial assistance in the purchase of mobility equipment, home access problems and physical therapy. Last year alone No Frills granted over $605,000 to more than 59 families.

Strategy

 No frills:

Also use the strategy of no frills, selling low cost products.

 Cost Saving:

Food Basics prices are generally lower due to low maintenance

No free plastic bags, just free cardboard boxes

Store decor is kept to a minimum and a smaller number of staff is employed, mostly part-time positions.

 The chain operates by pushing higher volumes on a limited selection of products than A&P/Dominion, allowing it to compete price-wise with other grocery stores.

 Gain more reputation by creating more Brand than No Frills with reasonable and affordable prices.

 Put the customer service in very important place.

Products & Services:

 Product Range:

Bakery, Beer, Charcuterie, Dairy, Deli, Frozen foods, Gasoline(select locations), General grocery, General merchandise, Liquor(select locations), Meat & poultry, Pharmacy, Seafood, Snacks, Wine

 Dollar Shop:

Party supplies, home & bath dЁ¦cor, holiday supplies, kitchenware& linens, cards& gift wrap, hangers, cups& plates, tools& hardware, stationery, batteries& electrical, candles,