imc 613 brand equity audit for ingles markets
DESCRIPTION
Ingles’ ability to remain competitive in its changing markets will depend in part on its ability to pursue expansion and brand renovation programs and its response to new store openings by its competitors. Every single shopping experience is different. If Ingles invests in understanding how the consumer travels across the store and see how to make the experience frictionless, convenient and emotional, they can then take that data look at the decisions Ingles is making and look at their impact on the consumer. Much of a grocery store’s revenue growth comes from understanding individual consumers and not relying on demographics. Instead, a DNA on each consumer, rather than cramming them into segments, is what drives their behavior — do they have kids, do they skew toward healthy or fun, do they like organic or convenience, and where are they price sensitive — across all products or only on some. Understanding loyalty is key to making good decisions for consumer. If grocery store is out of a favorite yogurt it is apt to lose a consumer’s total sale. Kosher butter may be a low revenue producer, but for some consumers, its absence means they will take their business to another store. Ingles’ competitive advantages include convenient locations, the quality of service it provides its consumers, competitive pricing, product variety and quality and a pleasant shopping environment, which is enhanced by its ongoing modernization program.TRANSCRIPT
Brand Audit
West Virginia University
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 1
Table of Contents
Executive Summary....................................................................................................................... 2
Competitive Analysis......................................................................................................................3
Brand Inventory.............................................................................................................................8
Brand Meaning...........................................................................................................................9
Brand Elements........................................................................................................................11
Brand Associations...................................................................................................................12
Marketing Support Programs...................................................................................................14
Competitive Environment........................................................................................................18
Brand Hierarchy....................................................................................................................... 20
Brand Exploratory........................................................................................................................21
Brand Meaning.........................................................................................................................24
Brand Elements........................................................................................................................27
Brand Associations...................................................................................................................29
Marketing Support Programs...................................................................................................30
Competitive Environment........................................................................................................30
Recommendations.......................................................................................................................31
Conclusion................................................................................................................................... 32
References...................................................................................................................................34
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 2
Executive Summary
Ingles Markets, Inc. (Ingles) is a regional supermarket chain with 203 stores in North
Carolina, South Carolina, Georgia, Virginia, Tennessee, and Alabama. Most stores are located in
rural areas, small towns, or suburban communities within 250 miles of the firm's headquarters
and distribution center of Asheville, North Carolina. Ingles also owns a milk processing plant,
which makes dairy products for sale in its stores and other outlets. In addition, the firm owns
74 shopping centers and also 30 other properties, almost all of which contain an Ingles
supermarket. (Ingles Markets, Inc., 2014)
By locating in suburban areas, small towns, and rural communities, Ingles has
concentrated operations within a relatively small geographic region where the company can
monitor markets, and the needs of consumers within these markets.
The company business model is a one-stop shop for everyone’s essential food and non-
food needs. Non-food includes gas, pharmacy, clothing, health and beauty, etc. Within that
model are company values based on convenience, consumer service and competitive pricing.
Like its competitors - which include Kroger and Publix - Ingles offers much more than
just canned, fresh, and frozen food. To provide one-stop convenience for busy consumers,
Ingles also sells numerous nonfood items, from office supplies to cooking utensils, and includes
services such as sit-down cafes, check cashing, take-out meals and deli items, floral shops, and
video rentals. Ingles sells national brands and also its generally lower-priced Laura Lynn private
label items. All stores are open seven days a week and many operate 24 hours a day. Some
locations even sport a Starbucks.
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Competitive Analysis
Increasingly over the last few years, competition for consumers’ food dollars has
intensified due to the addition of, or increase in, food sections by many types of retailers such
as specialty grocers, drug and convenience stores, national general merchandisers and discount
retailers, membership clubs, warehouse stores and super centers. Restaurants are another
significant competitor for food dollars.
For 2013, Ingles reported record sales of $3.74 billion, its 49th consecutive year of sales
growth. Net income for the fourth quarter totaled $15.6 million, 17.2% higher than net income
of $13.3 million for the fourth quarter of fiscal 2012. (Ingles Markets, Inc., 2013)
The advantage for many of Ingles’ large national and international competitors is related
to their size. These larger organizations may have an advantage through stronger buying power
and more significant capital resources. Certain competitors, such as super centers, may be able
to operate with smaller margins in the food sections of their stores by relying on their higher
margins on the general merchandise sections of their stores to compensate. (Haxthausen,
2004)
Rank 2012 Retail
Sales ($000)
Sales Growth
(’12 v ’11)
2012 Stores Stores
Growth (’12
v ’11)
(2) Kroger $92,165,000 6.6% 3,538 -1.0%
(15) Publix $27,485,000 1.9% 1,230 2.7%
(99) Ingles $3,578,00 4.3% 203 0.0%
Table 1 National Retail Federation Top 100 Retailers (2013)
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Ingles’ strategy is to place its supermarkets in suburban areas, small towns and rural
communities. Because Ingles has operated in many of its markets longer than many of its
competitors, it has been able to place its stores in prime locations. Furthermore, unlike many
of its competitors, Ingles owns property on which a majority of its stores are located, allowing it
the flexibility to expand the store when needed. (Ingles Markets, Inc., 2014)
As evidenced by the number of Ingles free-standing store sites; the grocery, drug store,
and dollar store categories have evolved into a similar free-standing box strategy and Ingles
pioneered this innovative concept many years ago. (Reference for Business, 2014) In many of
its company owned stores it is unlikely to see a competing dollar store or drug store within the
boundaries of an Ingles’ owned property.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 5
The loyalty program for Ingles is called the Ingles Advantage Card (Advantage) provides
discounts exclusive to card-holders. Seventy-five percent of Ingles transactions use the
Advantage card. (Ingles Markets, Inc., 2014) Items in the Advantage program are marked
throughout the store with a special tag featuring a picture of the Advantage Card. At the time
of checkout savings are automatically deducted from the total purchase, and a summary of the
savings for that transaction are printed right on the receipt. Advantage provides information to
better understand the shopping patterns of Ingles’ consumers in various demographic
categories and to develop targeted marketing programs based on this information.
The Advantage idea should encompass all facets of the Ingles brand, from its website to
its store employees and all points in between. Consumers need to embrace the message that
Ingles is the best choice for value and choice in their rural community over the higher priced
options of Kroger and Publix.
By revenue, Kroger is the country's largest supermarket chain, second-largest general
retailer (after Walmart), and twenty-third largest company. Kroger is also the fifth largest
retailer in the world. As of February 2013, Kroger operates, either directly or through its
subsidiaries, 2,424 stores. (National Retail Federation, 2014) Kroger's headquarters are in
downtown Cincinnati. It maintains markets in 31 states with store formats that include
supermarkets, superstores, department stores, convenience stores, and mall jewelry stores.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 6
Kroger-branded grocery stores are located throughout the Midwestern and Southern United
States. (Kroger, 2014)
Kroger brand products are produced and sold in three quality tiers: Private Selection,
Our Value, and Banner brands. This strategy fills the needs of consumers in the various markets
where they operate. All tiers are value priced to offer shoppers big savings over other
premium, national and economy brand items.
The chain offers extra savings to its consumers through the Kroger Plus card.
Consumers who have a Kroger Plus card can get more in-store discounts on items and can also
load online coupons onto the card to use in the store.
In 2013, Kroger announced its acquisition of the 212 stores of Charlotte-based Harris
Teeter. Harris-Teeter's stores are in eight Southern states, with a major portion of them in its
headquarters state of North Carolina, where Ingles has a stronghold. Doing so, Kroger acquired
Harris Teeter’s click and collect program which allows online ordering of groceries. Some
industry experts see this as a competitive move against online grocers such as Amazon Fresh.
The Harris Teeter acquisition marks Kroger's return to the Charlotte market after a 25-year
absence. (Clifford, 2013)
Publix operates throughout the Southeast, with locations in Florida, Georgia, Alabama,
South Carolina, Tennessee, and North Carolina. Their 2012 sales totaled $27 billion, with profits
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 7
of nearly $1.9 billion, ranking #106 on Fortune magazine's Fortune 500 list of U.S. companies
for 2012. Based on 2012 revenue, Publix is the fifteenth-largest US retailer. (National Retail
Federation, 2014) They recently opened their first store in Asheville, where Ingles is
headquartered.
Like Kroger, Publix offers three private labels: Publix, Publix Premium, and Greenwise
Markets. These labels are consistently priced lower than national brands without
compromising quality. Publix also stands behind that quality by offering a satisfaction
guarantee. (Publix, 2014)
Unlike Kroger, Publix does not offer a loyalty program and is generally seen as higher
priced than its competitors. The audience, however, is considered more affluent.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 8
Brand Inventory
A brand inventory is just one part of the overall brand audit, which allows a company to
examine its sources of brand equity. A brand inventory provides a thorough profile of the
current marketing and branding efforts of a company’s goods or services. Conducting a brand
inventory consists of profiling all of these elements and compiling them into one
comprehensive document. (Keller, 2013)
Brand Position
Brand positioning is the heart of a marketing strategy. Ingles Markets, Inc. (Ingles) is a
regional supermarket chain with 203 stores in North Carolina, South Carolina, Georgia, Virginia,
Tennessee, and Alabama. Most stores are located in rural areas, small towns, or suburban
communities within 250 miles of the firm's headquarters and distribution center of Asheville,
North Carolina. (Ingles Markets, Inc., 2014)
Target Audience. By locating in suburban areas, small towns, and rural communities,
Ingles has concentrated operations within a relatively small geographic region where the
company can monitor markets, and the needs of consumers within these markets.
Category Need. The company business model is a one-stop shop for everyone’s
essential food and non-food needs. Non-food includes gas, pharmacy, clothing, health and
beauty, etc. Within that model are company values based on convenience, consumer service
and competitive pricing.
Key Brand Elements. Ingles offers a full variety of brand name products supplemented
with Ingles' own Laura Lynn brand products which are equal or superior to national brands and
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 9
guaranteed by Ingles Markets. Ingles Private Label products are named after Mr. Ingle's
daughter, Laura Lynn Ingle. (Reference for Business, 2014)
Purchase Motivators. To provide one-stop convenience for busy consumers, Ingles also
sells numerous nonfood items, from office supplies to cooking utensils, and includes services
such as sit-down cafes, check cashing, take-out meals and deli items, floral shops, and video
rentals.
Brand Character. Although Ingles is considered to be a challenger brand for Kroger and
Publix in the southeast region, the company positions itself as a hometown grocery store that
provides most everything a consumer needs. Ingles is keenly aware of its lower-to-middle class,
mostly blue collar audience and makes the shopping experience affordable for them.
Brand Portfolio
One of the key concepts in defining brand architecture is the brand portfolio. Early on,
Ingles implemented a successful strategy of real estate investment in the communities it
served, often owning the real estate on which its stores are located. Ingles today owns two-
thirds of the real estate on which it operates and owns its own dairy that produces Laura Lynn
Milk. (Ingles Markets, Inc., 2014)
Brand Meaning
Brand meaning comes from establishing what a brand is characterized by and what it
stands for in the minds of a consumer. (Keller, 2013) Ingles has long been a well-respected and
reputable brand in its target markets because they are placed in areas where larger grocery
stores would not think profitable. Only recently have Kroger and Publix set their sights on
establishing a foothold in North Carolina, the home state of Ingles. (Clifford, 2013)
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 10
Brand Performance
Because Ingles is a challenger brand in the grocery industry, the company must be
diligent in its efforts to ensure the consumer experience meets, if not surpasses, their
expectations. (Keller, 2013) Ingles’ ability to remain competitive in its changing markets has
depended on its ability to pursue expansion and brand renovation programs and its response to
new store openings by its competitors.
Brand Imagery
Brand imagery is defined as the intangible associations of the brand. (Keller, 2013)
Ingles relies on its presence and relationship in small, rural, typically underserved communities
to fulfill the social and psychological needs of its consumers. All of the marketing messages are
directed to the value shopper without relying on recognizable celebrities to convince
consumers to shop at Ingles.
Brand Personality
Brands have the ability to take on real life personalities that could potentially influence
consumption by the consumer. The Ingles brand is multi-faceted, including traits of sincerity,
concern, and empathy that speaks to the budget-minded consumer.
Brand Judgments
The judgments of a brand are what contribute to the development of personal opinions
and evaluations of a brand. Ingles positions the brand as one of being more locally operated
than its national competitors. This, in turn, acts favorably in the mind of a consumer that Ingles
is, essentially, a neighborhood grocery store.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 11
Brand Feelings
Brand feelings stem from the emotional reaction and response from a consumer about a
brand. (Keller, 2013) All three grocery stores evoke unique brand feelings that have earned the
trust of their respective consumers. Where Ingles differentiates itself is with its commitment to
the community.
Brand Elements
Brand elements are trademarkable devices that serve to identify and differentiate a
brand. For Ingles these include the Laura Lynn and Harvest Farm private label brands, Ingles
logo, slogan, and packaging.
Brand Kroger Publix InglesBrand Name Highly recognizable Highly recognizable Regionally and
moderately recognizable
Logos and Symbols
Slogan “Right Store.Right Price.”
“Where shopping is a pleasure”
“Low prices.Love the savings.”
Spokesperson
Real life customers and employees
Real life customers and employees
Real life customers and employees
Packaging
Table 2 Brand elements.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 12
Brand Associations
Memorability
A necessary condition for building brand equity is achieving a high level of brand
awareness. Ingles has a highly recognizable brand name in its defined market but not so much
outside of rural areas. In larger metropolitan areas most consumers have not heard of Ingles.
Meaningfulness
Even the simplest company logos have a high amount of thought and time put into
them, from logos representing small businesses all the way to logos for colossal corporations.
One of the most important aspects in choosing the symbol that will define a company, and thus
the self-image presented to prospective consumers, is not necessarily the design itself but
rather its color. (Grayson, 2013) The primary color for Ingles, Laura Lynn and Harvest Farms is
red, which is typically perceived as exciting, youthful, and bold while the secondary color,
yellow, is associated with optimism, clarity, and warmth. The colors used for the Laura Lynn
logo and packaging as well as the Ingles logo itself are great indicators of the type of brand
Ingles aspires to be and suggests the position taken by the company. Furthermore, the
combination of colors can ultimately persuade consumers to be able to properly identify Ingles
products.
Likeability
Buying local is an important initiative in all departments for Ingles not only because
reduces transportation cost and fuel usage, but because it supports the community in which
the stores are located. The Ingles Distribution Center delivers groceries to stores in six states
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 13
but the trucks do not return empty, wasting fuel. Most of the time delivery trucks pick up
groceries to return to the Ingles warehouse for redistribution. (Ingles Markets, Inc., 2014)
Over the past 10 years, Ingles has contributed over 10 million dollars to schools in towns
where Ingles stores are located. These dollars have been used for valuable learning tools and
equipment. Public schools, private schools and home school associations are welcome to
participate in this program. Ingles and their Tools for School program are committed to helping
thousands of schools and students achieve their education goals. (Ingles Markets, Inc., 2014)
Transferability
Because Ingles is a localized brand, its brand elements are not able to transfer through
various cultures and regions outside of the community in which it resides.
Adaptability
The Ingles logo has been consistent for decades. The storefront logo is easily
recognizable from the street and its consumer logo is perhaps with which most consumers
identify. It is unclear, though, as to why the logos are different.
Figure 1 Ingles Storefront logo.
Protectability
Figure 2 Ingles consumer logo.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 14
The Ingles brand and items in its hierarchy are legally protected from any unauthorized
use. Its logo, symbol, and brand name cannot be infringed by another company cannot utilize
and copy either the logo or the symbol. According to Ingles’ website, all content on its site
including design, graphics, logos, icons, images, audio clips, and downloads is the exclusive
property of and owned by Ingles, its licensors or its content providers and is protected by
copyright, trademark and other applicable laws. (Ingles Markets, Inc., 2014)
Marketing Support Programs
Understanding the needs and wants of consumers and organizations and devising
products and programs to satisfy them are at the heart of successful marketing. Ingles
currently organizes its marketing programs based on the four P’s of marketing: Product, Place,
Price, and Promotion.
Product
Ingles offers a full variety of brand name products supplemented with Ingles' own Laura
Lynn brand products which are equal or superior to national brands and guaranteed by Ingles
Markets.
Place
Most stores are located in rural areas, small towns, or suburban communities within 250
miles of the firm's headquarters and distribution center of Asheville, North Carolina.
Price
Pricing is in line and sometimes lower than the national chains in its markets. Additional
ways to save include using the Advantage Card, buying the Laura Lynn comparable product, and
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 15
watching for in store promotions. Ingles also honors competitor coupons and doubles most
coupons.
Promotion
Ingles greatly benefits from various marketing promotions including social media
campaigns, direct marketing, philanthropic activities, and educational efforts regarding
nutrition.
Twitter. Content is often cross-posted between Twitter and Facebook. Ingles is more
active on Twitter with almost 12,000 tweets and over 1,500 engaged followers.
Figure 3 Ingles Twitter page.
Figure 4 Ingles Facebook page.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 16
Pinterest. Ingles has accounts on Pinterest: Leah McGrath, their nutritionist and the
primary link from the Ingles website. The Ingles page is mixed in with the content. Recipes and
tips for nutrition are provided on both.
Direct Marketing. Perhaps the most successful of all the promotional activities for
Ingles, direct marketing encompasses inserts, mailbox flyers, and Advantage mail delivered via
email.
Figure 6 Ingles Pinterest page.
Figure 7 Examples of Ingles Direct Marketing.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 17
Philanthropy. In addition to their Tools for Schools program, Ingles frequently partners
with non-profit organizations and churches within the community the opportunity to raise
money for their respective causes.
Education. Ingles has a certified nutritionist that provides information on diet, nutrition,
and other educational insights to consumers. They have developed innovative strategies to
connect brands and products to consumers and inform customers about health and nutrition.
Website. The Ingles website is simple and relatively easy to navigate, providing links to
social media, online coupons, and recipes. Rotating graphics suggest seasonal purchases, ways
to save, and remind consumers about placing orders online for bakery and deli items.
Figure 8 Ingles website.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 18
Competitive Environment
By revenue, Kroger is the country's largest supermarket chain, second-largest general
retailer (after Walmart), and twenty-third largest company. Kroger is also the fifth largest
retailer in the world. As of February 2013, Kroger operates, either directly or through its
subsidiaries, 2,424 stores. (National Retail Federation, 2014) In 2013, Kroger announced its
acquisition of the 212 stores of Charlotte-based Harris Teeter. Harris-Teeter's stores are in
eight Southern states, with a major portion of them in its headquarters state of North Carolina,
where Ingles has a stronghold. Doing so, Kroger acquired Harris Teeter’s click and collect
program which allows online ordering of groceries. Some industry experts see this as a
competitive move against online grocers such as Amazon Fresh. The Harris Teeter acquisition
marks Kroger's return to the Charlotte market after a 25-year absence.
Publix operates throughout the Southeast, with locations in Florida, Georgia, Alabama,
South Carolina, Tennessee, and North Carolina. Their 2012 sales totaled $27 billion, with profits
of nearly $1.9 billion, ranking #106 on Fortune magazine's Fortune 500 list of U.S. companies
for 2012. Based on 2012 revenue, Publix is the fifteenth-largest US retailer. (National Retail
Federation, 2014) They recently opened their first store in Asheville, where Ingles is
headquartered.
Market Share
As a challenger brand, Ingles has made great strides to control a large portion of the
market share. Although Kroger owns the majority of the market share, Ingles does have about
3% of the market share in the areas where it competes with Kroger and Publix. (National Retail
Federation, 2014)
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 19
Table 3 Market share.
Points of Parity and Points of Difference
The points-of-parity and the points-of-difference help differentiate Ingles from its main
competitor, Kroger and its second rival, Publix.
Brand Kroger Publix InglesPoints of
Parity2nd highest grossing grocery store in USStrong brand image
15th highest grossing grocery store in US
Refined brand image
Well known in rural markets
Simplistic brand image
Points of Difference
Extensive brand portfolio
Popular with majority of consumers
Diverse brand portfolioPopular with more affluent consumers
Relevant brand portfolioPopular with budget minded consumers
Table 4 Points of Parity and Difference.
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Brand Hierarchy
Ingles offers a full variety of brand name products enhanced by providing their own
private label brands, Laura Lynn – which includes their Dairy - and Harvest Farms, which are
equal or superior to national brands and guaranteed by Ingles Markets.
Other proprietary associations include Ingles Advantage Card, which allows consumers
to save on select items throughout Ingles as well as on fuel purchases through Ingles Fuel
Centers.
Robert Ingle's background certainly qualified him to know the preferences of shoppers
in his territory. A member of a third generation grocery family, he worked in a grocery store
started by his grandfather in Asheville, North Carolina where the company headquarters is still
located. He opened the first Ingles supermarket in Asheville, North Carolina in 1963. He saw an
opportunity to invest in smaller towns and rural communities throughout North and South
Carolina that were being underserved by large grocery chains. It was a strategy that proved so
successful that expansion into similar communities in Georgia, Tennessee, Alabama and Virginia
Ingles
National Brands
Laura Lynn Brands
Laura Lynn Dairy
Harvest Farms Organic
Advantage Card
Fuel Centers
Pharmacy
Figure 9 Brand Hierarchy for Ingles.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 21
soon followed. Ingles now operates approximately 200 stores in six southeastern states with
annual sales of almost $4 billion. (Reference for Business, 2014)
Brand Exploratory
The brand exploratory is research activity conducted to understand what consumers
think and feel about the brand and its corresponding product category to identify sources of
brand equity. The diversity of opinion that typically emerges from interviews serves several
functions. It increases the likelihood that useful insights or ideas will be generated; it also
points out any internal inconsistencies or misconceptions. (Keller, 2013)
Brand Position
Because most Ingles Markets, Inc. (Ingles) stores are located in rural areas, small towns,
or suburban communities within 250 miles of the firm's headquarters and distribution center of
Asheville, North Carolina, the reach of the brand is limited to the southeast region. (Ingles
Markets, Inc., 2014)
Based on qualitative research conducted with friends on Facebook, the mental map
below portrays in detail the brand associations and responses for the target market of Ingles.
(Keller, 2013)
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 22
Figure 10 Ingles Mental Map.
Target Audience. By locating in suburban areas, small towns, and rural
communities, Ingles has concentrated operations within a relatively small geographic region
where the company can monitor markets, and the needs of consumers within these markets.
Research conducted with a sample size of 23 individuals indicated a clear demonstration of
Ingles’ target audience. The consensus was that those people who lived in the southeast region
were familiar with and fans of the Ingles shopping experience.
Table 5 Location of Consumers Surveyed.
Furthermore, qualitative research indicated that the majority of consumers have the perception
that Ingles markets provide a great selection of produce at very affordable prices, regardless of
whether they shopped there.
Respondent
Have you heard of Ingles?
Do you shop there?
What is your opinionof Ingles?
If you don’t shop there, where do you shop?
Where do you live?
Response No No Don’t know anything WV
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 23
1Response
2Yes No Low prices but not a
great selectionPublix Atlanta Metro
Response 3
Yes No Not a great selection Kroger Atlanta Metro
Response 4
No No Don’t know anything Commissary LA
Response 5
Yes Yes Low prices and great selection
Food Lion Charlotte Metro
Response 6
Yes No Low prices and great selection
Publix Atlanta Metro
Response 7
No No Never heard of them OR
Response 8
Yes Yes Low prices, fuel points, great selection
Rural Atlanta
Response 9
Yes Yes Great produce selection, staff, prices, organic choices
Rural N. GA
Response 10
Yes Yes Well stocked, great staff, fuel points
Rural N. GA
Response 11
Yes No Well stocked, great produce selection
Food Lion Charlotte Metro
Response 12
Yes No Great produce, organic choices
Kroger Atlanta Metro
Response 13
Yes No Don’t really know much Farmers Market Atlanta Metro
Response 14
Yes Yes Nice selection, affordable prices
Charlotte Metro
Response 15
Yes Yes Good quality produce, organic choices
Rural Atlanta
Response 16
Yes Yes Organic choices Rural SC
Response 17
Yes No Great produce selection, staff, prices, organic choices
TX
Response 18
Yes Yes Locally owned, better selection of produce
Rural GA
Response 19
Yes Yes Selection of produce, like being able to donate thru Advantage card purchases
Asheville
Response 20
Yes Yes Love the Laura Lynn brand, good produce choices
Atlanta Metro
Response 21
Yes No Less selection, lesser quality produce
Kroger Rural N. GA
Response 22
Yes Yes Meat department is great, produce choices are good
Rural N. GA
Response 23
Yes No Not as clean as other stores
Publix Rural N. GA
Table 6 Consumer perceptions of Ingles.
Rural Areas41%
Metro Areas41%
Out of Region18%
Region
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 24
Brand Portfolio
Although many Ingles consumers are knowledgeable about the Laura Lynn and Harvest
Farms brands within the portfolio, a large majority of consumers were unaware that Ingles
owned its own dairy and has such an extensive real estate investment portfolio.
Brand Meaning
Brand meaning is made up to two major categories of brand associations related to
performance and imagery. These associations can be formed directly, from a customer’s own
experiences and contact with the brand or indirectly, through advertising or by some other
source of information, such as word of mouth. (Keller, 2013) Likewise, positive and negative
brand associations can hinder the level of success for a particular brand, especially a region-
specific organization like Ingles. Additionally, consumer engagement and consumer loyalty are
crucial aspects to the Ingles brand since the majority of consumers will form a perception of the
brand based on its advertisements and the how their friends, family, and the public views a
product, or number of products.
For consumers familiar with the Ingles brand it holds a valuable brand meaning near and
dear to their hearts. A research participant from Facebook recently stated that his loyalty to
the Ingles brand is deeply rooted in every aspect of the company:
Love Ingles. Super clean. Great layout. Super quality food. Great value, especially on their store brand. They hire the best kids to work for them, so well
mannered. Meat department is the best in town. Great fish market. Great produce. They are really trying to educate the public to what/why we should go
organic. Organic prices are well below anyone else's. They're making a concerted effort to make it affordable unlike the boutique grocers who are just
riding the wave. (Taylor, 2014)
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Brand Performance
Brand performance as how well the product or service meets customers’ more
functional needs. (Keller, 2013) With Kroger and Publix more readily available in the larger
markets in the southeast region, consumers have three viable choices for a grocery store. As
indicated in the research questionnaire, those familiar with Ingles in markets where Kroger and
Publix are also options still prefer to shop at Ingles because of the great selection of produce –
both national and private label brands – and the variety of organic options from which to
choose.
Moreover, Ingles consumers can enjoy a wide variety of produce at a nominal price.
Price is a particularly important performance association because consumers may organize
their product category knowledge in terms of the price tiers of different brands. (Keller, 2013)
The Ingles Advantage Card program, which allows consumers to save on select items
throughout Ingles, is a popular program for consumers because of the savings, the fuel points,
and the ability to assign a favorite charity to receive donations. (Ingles Markets, Inc., 2014)
Figure 11 Examples of Ingles direct marketing.
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Brand Imagery
Brand imagery is defined as the intangible associations of the brand. (Keller, 2013)
Ingles relies on its presence and relationship in small, rural, typically underserved communities
to fulfill the social and psychological needs of its consumers. Budget minded consumers
appreciate the coupons available online through state specific links as well as through direct
marketing efforts.
Figure 12 State specific discounts.
Brand Personality
Brands have the ability to take on real life personalities that could potentially influence
consumption by the consumer. In particular, the recent popularity of consumers seeking out
organic choices as a healthy lifestyle choice has been a successful venture for Ingles.
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Brand Judgments
The judgments of a brand are what contribute to the development of personal opinions
and evaluations of a brand. Ingles positions the brand as one of being more locally operated
than its national competitors. This, in turn, acts favorably in the mind of a consumer that Ingles
is, essentially, a neighborhood grocery store.
Brand Feelings
Brand feelings stem from the emotional reaction and response from a consumer about a
brand. (Keller, 2013) Ingles separates itself from competitors with its commitment to the
community and providing nutritional choices with its organic options and healthy recipes
available on their website.
Figure 13 Ingles website.
Brand Elements
Brands typically comprise various elements, such as:
Name: the word or words used to identify Ingles or their associated brands
Logo: the visual trademark that identifies Ingles or their associated brands.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 28
Tagline or catchphrase: "The Ingles Advantage" and “Low Prices. Love the Savings”
that reinforces the value of shopping at Ingles and the statement “American Owned”
which resonates in small, rural areas where Ingles thrives.
Logo
There is a discrepancy between the storefront logo and the consumer logo, as depicted
below. It is unclear as to why the two logos exist but it does not appear to be of any
considerable issue for the consumer.
Figure 14 Storefront logo
Packaging
The Laura Lynn brand packaging is simple and to the point, this is a generic brand and
not a national brand imitator. The Harvest Farms packaging is attractive and definitely indicates
the products are organic in nature with its use of a farm, silo, and country background.
Figure 16 Examples of Ingles private labels.
Figure 15 Consumer logo
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 29
Brand Associations
Memorability
A necessary condition for building brand equity is achieving a high level of brand
awareness. As indicated in the research questionnaire, Ingles has a highly recognizable brand
name in its defined market but not so much outside of rural areas. In larger metropolitan areas
most consumers have not heard of Ingles.
Meaningfulness
Ingles’ slogans have always been descriptive and persuasive, leading consumers to have
a clear understanding of the brand. Slogans including “Low prices. Love the savings,” and
“American owned" evoke positive feelings for Ingles consumers. When referencing Pepsi
slogans, consumers bring up words like accurate, positive experience, and great place to shop.
Likeability
Many consumers enjoy the wide selection of Laura Lynn products, organic choices, and
the in store savings which helps them to identify the brand, be exposed to descriptive
persuasive information, and drives them to increase product consumption. (Keller, 2013)
In addition, the philanthropic programs that Ingles provides for consumers to participate
in is very popular in rural markets that are prone to be community and civic oriented.
Transferability
Because Ingles is a localized brand, its brand elements are not able to transfer through
various cultures and regions outside of the community in which it resides.
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Adaptability
The Ingles logo has been consistent for decades. The consumer logo for Ingles, Laura
Lynn, and Harvest Farms are easily recognizable on store shelves and signage.
Protectability
Generally, consumers understand and are aware that the brand name, logo, symbol,
and slogan as well as all other pertinent brand elements cannot be copied or infringed for a
competitive gain. Although copies of the Ingles logo can easily be found on the Internet,
consumers do not try to replicate the brand or its likeness in any sort of fashion as they are
cognizant of the repercussions or attempts to copy the brand’s protected elements.
Marketing Support Programs
For many decades, Ingles consumers have applauded the brand for its effective and
relevant marketing support programs. Research respondent, Lisa Baker Clennan, stated:
I would have had to drive past Publix and Kroger to get there although I love hearing about them teaching folks why they should eat organic! (Clennan, 2014)
Competitive Environment
Although Ingles is limited in its reach because of its regional distribution business model,
those consumers familiar with the company and have one conveniently located are more prone
to shop there than over its competitors because of the value, quality, selection, and overall
experience with Ingles. Those who choose Kroger or Publix generally do not have an Ingles
nearby. In the eyes of these consumers, Ingles will remain a challenger brand.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 31
Recommendations
The following recommendations will enable the Ingles brand to achieve and sustain
market success. Recommendations include expanding the brand’s private label portfolio and
consumer’s knowledge of the new products, incorporating real-life / non-celebrity endorsers to
promote the products and the brand, and increased participation within the communities
where Ingles are located to further deepen the existing relationships and develop new ones. Of
particular focus should be those areas where Kroger and / or Publix are new or non-existent.
Additionally, as the popularity of social networking sites continues to grow, Ingles will
need to ensure its efforts across all social media platforms are maintained continuously. The
website should be more interactive and use the social media channels as an extension of the
brand, rather than an additional media presence. They should work in together towards the
common goal of engaging consumers as brand ambassadors.
Lastly, expanding the Ingles Advantage rewards program for consumers to earn points
towards future purchases will aid in consumer retention and help with product consumption.
Anything that Ingles can do to improve the lives of its consumers or make purchasing
habits easier should be at the forefront of all decision making. The overall goal of
accomplishing the aforementioned recommendations include increasing brand awareness,
recognition, memorability, and ultimately create a stronger brand image. It is also highly
recommended that the Ingles brand maintain the highest level of integrity, respect, and dignity
when improving its brand position in the marketplace.
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Conclusion
Ingles’ ability to remain competitive in its changing markets will depend in part on its
ability to pursue expansion and brand renovation programs and its response to new store
openings by its competitors.
Every single shopping experience is different. If Ingles invests in understanding how the
consumer travels across the store and see how to make the experience frictionless, convenient
and emotional, they can then take that data look at the decisions Ingles is making and look at
their impact on the consumer.
Much of a grocery store’s revenue growth comes from understanding individual
consumers and not relying on demographics. Instead, a DNA on each consumer, rather than
cramming them into segments, is what drives their behavior — do they have kids, do they skew
toward healthy or fun, do they like organic or convenience, and where are they price sensitive
— across all products or only on some. (Keller, 2013)
Understanding loyalty is key to making good decisions for consumer. If grocery store is
out of a favorite yogurt it is apt to lose a consumer’s total sale. Kosher butter may be a low
revenue producer, but for some consumers, its absence means they will take their business to
another store.
Ingles’ competitive advantages include convenient locations, the quality of service it
provides its consumers, competitive pricing, product variety and quality and a pleasant
shopping environment, which is enhanced by its ongoing modernization program. (Business
Wire, 2013)
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 33
Focusing more on the “Advantage” brand, Ingles can make decisions not based on what
a consumer bought today but what they have bought over the last two years. Then Ingles can
recommend a product they buy every four months via email, mail, and receipt data to reinforce
the Advantage of being an Ingles shopper over Kroger or Publix.
By concentrating its operations within a relatively small geographic region, Ingles is
positioned to more carefully monitor its markets and the needs of its consumers within those
markets. Because of the company’s size, store managers have direct access to corporate
management and are able to receive quick decisions regarding requested changes in
operations. Ingles can then move quickly to make adjustments in its business in response to
changes in the market and consumer needs and truly promote the Ingles Advantage.
Running Head: BRAND AUDIT FOR INGLES MARKETS, INC. p. 34
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