Loblaw Companies Limited is Canada's largest food retailer. [1] It has a strong market position but sees opportunities for growth through better understanding customers. [2] Its strengths include national scale and private label brands, but weaknesses include outdated customer and supply chain data systems. [3] The company aims to increase customer retention and spending by developing a more sophisticated customer identification, differentiation, interaction and customization (I.D.I.C.) strategy.

1. Loblaw Companies Limited
Bishen Pertab
Cristina Malik
Nestor Noriega

2. Key Issues
Increasing the customer base;
Opening new stores;
Increasing % of food dollar;
Keeping a customer longer;
Differentiating customers;
Developing corporate brands;
Improving customer lab activity.

3. S.W.O.T Analysis
Strengths:
Largest and most profitable food retailer in Canada;
Innovative management team;
High quality store brand products at a better price - President’s Choice;
Less expensive advertising system;
Well trained employees and professionals;
Good stores locations;
Diversified store formats;
Many in-store services;
Centralized buying;
Active in protecting the environment;
Strong organizational culture (values:learning, serving,excellence,integrity);
Active thinking about the future.

4. S.W.O.T Analysis
Weaknesses:
Simplistic customer data system;
Too many store names;
Tight supplier-retailer relationships (zero sum game);
Weak data communication system;
High inventory level;
People intensive business;
Undeveloped forecasting data system.

5. S.W.O.T Analysis
Opportunities:
Growing food retailing sales;
Changes in consumer trends in food buying and consumption;
Increasing population;
Increasing income per capita;
Internet access;
Globalization;

6. S.W.O.T Analysis
Threats:
More demanding customers;
More competition: Wal-mart in Canada;
Imitation by competitors;
Economic recession ;
Terrorist attacks or war disaster.

7. I.D.I.C
Identification
Developing a system that identify the customers in as much detail as
possible, including habits, preferences, and other characteristics that
make each customer unique- Advantage Plus Card Applications;
Train the employees to greed and thank the customers for each
transaction, using their names;
Develop forecasting methods.

8. I.D.I.C
Differentiation
For “cherry pickers” : mark the products on sale and with very low
prices and offer them coupons each week ;
For “secondary shoppers”: offer points on the Advantage Plus Card for
each product purchased and develop in store product sampling centers;
For “primary shoppers”:train the employees to recognize them and help
them to find the best deals according to their preferences, offer them
incentives to convince new people to visit the stores.

9. I.D.I.C
Interaction
Build a customer service department in each store;
Build a web page where customers can communicate their concerns,
complaints or satisfaction about the company products;
Develop a quick feed-back system;
Introduce a 1-800 phone line for customer concerns;
Make quick adjustments according to the preferences of the majority of
customers;
Publish in the Insider’s Report Magazine a customer feed-back review.

10. I.D.I.C
Customization
Emphasis on the top five criteria customer used in evaluating a food
retailer:
 Price, convenience, product selection, freshness, cleanliness
Adapt behavior toward customers to satisfy their expressed needs;
Improve the Product Choice selection according to customers’
preferences;
Group products by method of cooking, international or regional cuisine,
activities etc.
Build self check-out counter and express ways to shop;
Promote the same Advantage Card for all the company’s stores.