Source: Kroger
Kroger to make fresh marketing start with a new logo, tagline and ‘Krojis’
Kroger management is feeling good about the company’s prospects after a couple of years investing in its private labels, upgrading stores and further developing its digital operations. This has been a big week for the supermarket giant, which raised its sales forecast and introduced an ad campaign featuring a new corporate logo and tagline — “Fresh for Everyone” — for its namesake chain.
The grocer is touting its new logo as an evolution of its brand identity. The chain is sticking with its traditional blue color and retaining the shape of the “K” and “G” from the previous iteration. Gone is the oval that formerly backed the company name. The “Fresh for Everyone” slogan is intended to communicate Kroger’s commitment to selling fresh and affordable food.
“Fresh and friendly underpin Kroger’s new brand identity because product quality and the total customer experience — across physical and digital — are key to bringing our brand promise to life,” said Mandy Rassi, Kroger’s vice president of marketing, in a statement.
Ms. Rassi said that the changes are an attempt by the company to distinguish itself in “the ‘sea of sameness’ that has beset grocery retail advertising for far too long. Having a more consistent and recognizable brand enables Kroger to stand out and engage our customers in an even more compelling way.”
Kroger is well known for its use of data analytics to respond to and predict shopper buying needs and behavior. The chain, Ms. Rassi said, is relying on “the deep insights” it has about its customers as it rolls out its ad campaign.
The chain’s new ads feature animated characters known as “Krojis” (Kroger + emoji), intended to represent its customers, associates and the communities they serve. Outreach will be made through in-store signage and radio. Out of store communication channels will include cinema, digital, music streaming services, print, outdoor, radio, social media and television.
Kroger also announced it is waiving its grocery pickup fee, typically $4.95, until Jan. 1.
Discussion Questions
DISCUSSION QUESTIONS: What is your assessment of Kroger’s current competitive position? How will the chain’s new logo, tagline and marketing efforts affect its standing?
Poll
BrainTrust
Bethany Allee
Senior Vice President Marketing, PDI
Brandon Rael
Strategy & Operations Transformation Leader
Kroger continues to innovate in a way that gives them a clear competitive advantage. Through a combination of technology and corporate philanthropy Kroger is capturing consumer hearts and minds – refreshing their logo and tagline to help continue the evolution of and articulation of their story is an important part of the brand.
I think the tagline and logo are excellent. Short, easy to understand, and indeed easy to remember. If Kroger promotes the message well as stated in the article with in-store radio, in-store signage, and full out of store communication, they will find success. Unfortunately, too often, what a retailer says they are going to do and what they do are two different things. However in the case of Kroger, I see them living up to their commitment. It is smart for every brand to have an identity and something that consumers to relate to when choosing where to shop. As the article states, there is too much grocery sameness, and this campaign should help Kroger stand aside from its competitors.
This allows Kroger to maintain its leadership position in grocery and with its commitment to using data analytics to stay close to its shoppers. It is my hope that Kroger will lead other progressive grocers to understand ways in which to stay aggressive and thrive as the channel competes with Amazon.
Change is always a good thing, and long-standing legacy companies such as Kroger periodically need to reinvent themselves. The grocery segment is hyper-competitive, and consumers are always seeking newness and a change of scenery from their usual routines. It will be critical for Kroger to turn their marketing refresh into true operationalized changes, that will be very clear during the customer shopping experience.
Marketing and branding changes will need supportive people, processes, and technological investments to properly execute those initiatives at the store level. Kudos go out to the Kroger team for taking this big first step.
Atlanta is one of Kroger’s largest markets. They compete directly with Publix and to some extent with Walmart. The plan here is simple. Be cheaper than Publix, have better quality and selection than Walmart. They can advertise fresh until the cows come home – you still can’t get good celery at Kroger.
In general, U.S. supermarkets suffer from a creeping sameness disease that spreads from the corner office to the fresh aisle and center store. Kroger’s new logo and tagline are fresh and promise differentiation in mindset and operations to be experienced in the stores and online. The Krojis are a bold step forward and time will test their acceptance and effectiveness.
Overall, this is a very smart and potentially credible move by Kroger to upgrade and redefine the perception and reality of U.S. supermarkets in the 2020s.
Kroger’s brand refresh sets the grocer apart by expressing warmth, inclusivity and variety.
Current competitive position:
Although Kroger is the leading grocery chain, Walmart and Amazon have made global headlines for their intense rivalry in omnichannel grocery. Yet Kroger remains the most progressive grocery chain, investing in agility, quality and innovation. This rebrand emphasizes Kroger’s more personable, authentic positioning relative to its massive competitors.
New logo:
It’s positive, friendly and welcoming while retaining its traditional blue, which represents trust.
New tagline:
Every chain seems to focus on “fresh”; it’s table stakes. However, Kroger’s intentional use of “everyone” shows it serves diverse socioeconomic groups with its assortment, ranging from affordable staples to premium products, including their popular private labels.
Marketing:
The Krojis are a clear attempt to appeal to younger consumers, as Millennials and Gen Z represent key audiences for long-term growth. Showing diverse ethnicities reinforces Kroger’s inclusive culture and mainstream accessibility.
Kroger better be very serious about delivering on their brand promises to separate their stores from the competition. That means that all brand promises and slogans must be followed by consistent proof in action. If not, slogans become meaningless and the stores disappoint customers, and that can be very hard then to repair.
Leveling up their service offering and meeting the new brand with a “human touch” could set them apart, but consistency is the key.
Kroger’s new logo and tagline and Krojis will do very little to improve sales or even really re-position Kroger against its competitors. However, eliminating its grocery pickup fee through the holidays is a great idea, and one that Kroger should keep after January 1.
“Kroger also announced it is waiving its grocery pickup fee, typically $4.95, until Jan. 1” Saving the best for last … eh?
I’m not going to criticize the effort, since I’m sure (well, surely hoping) a lot of thought went into it, and it probably taps responses I’m not even aware of, but I’ll confess to being underwhelmed: discussing the color and shape of lettering, and developing what look like Claymation dolls is what I would expect to find reading the corporate report … from 1961. Certainly in a hyper-competitive industry in 2019, a market leader like Kroger has more rabbits in its hat?
While it’s a great brand promise, they’re not the only grocery brand promising “fresh,” so the proof is in the execution. What is Kroger changing in their stores that’s going to prove to shoppers they fulfill their “fresh” promise? Overall, from a marketing standpoint, the new brand works, it looks good, feels good, and should resonate with their customers.
The real question is, will it help retain those customers, encourage them to increase their spend, and will it attract new customers while keeping them away from Walmart and Amazon.
I’d like to hear more about how new technology, processes, and associate training are driving improvements to keep that “fresh” promise. Kroger is well-positioned to accomplish that, so I expect we’ll be seeing more of this message in the coming weeks and months.