“Value”- is it the new mantra in retail?

Today, being a Sunday morning, while browsing my phone, one news article caught my attention which was about the price war between fast food QSR Mcdonalds and Wendy’s and Chillis in the US.

?The second news article that crossed my eyeballs while scrolling, was the entry of Westside (a TATA group co) in the UAE retail scenario, which would heat up the competition in the value fashion retailers like Max, Red Tag, R&B, etc.

?The term “Value” stayed on my mind throughout the day.

The thought of why it became so relevant suddenly as the entire retail is built on the founding pillar of “Providing value to customers consistently”. Has the value meaning changed?

?The answer is the current economic slowdown being faced in most of the countries across the globe, pushing inflation upwards, uncertain times with wars, and conflicts between countries all impact the demand and supply challenges.

“Value” wars in Food chains

On May 10,?McDonald’s?revealed it would sell a $5 bundle that includes four items — a McChicken or McDouble, chicken nuggets, fries and a drink —

while on May 21,?Wendy’s?rolled out a $3 breakfast deal that includes an egg and cheese sandwich with either bacon or sausage and a side of?potatoes.?

Meanwhile, in April,?Chili’s?introduced a burger that it says “has twice the beef of a Big Mac” for $10.99. In contrast, its other burgers go for anywhere from $13 to $20.

Suddenly with Inflation, the marketing strategy of all QSR is now focussed on “Value meals” to drive footfalls into their outlets/stores.

?The real value challenge

The real question to ask – is how long Value Meals will keep the brands afloat.

?Price wars or undercutting are never long-sustaining and may be disastrous for the brand.

?So what's the solution?

?I may sound like a typical strategist but it is the need of the hour to “relook at Value proposition”. Redefine the meaning of Value.?

a)???? Value can be found in using genuine ingredients, your menu at pocket-friendly prices, and economies of scale to bring operational efficiency thus bringing down the prices.

b)???? Value can be in exceptional customer service

c)???? Value can be found in being innovative both in Menu development and in reaching customers innovatively.

d)???? Value can be found in technological usage.

?An innovative marketing campaign by Burger King using its App and Augmented reality to promote their whooper which is a smoked chargrilled burger has always been one of my favorite campaigns.

?Burger King put posters near Burger King stores, AR app would convert the poster into smoke flowing indicating the direction to the nearest Burger King restaurant.

?Check the video here

This article has lit the spark for me to write an article on guerilla marketing on my blog site soon.

If you are a retail business owner and want to scale your business both in physical and digital space,? Schedule a coffee chat with me to grow your business.