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Why No Frills is going after the frugal-chic consumer

14/06/2017

No Frills to chase price sensitive consumers

Discount shopping has become a focal point in No Frills, a Canadian deep discount chain of supermarkets, advertising campaign summer 2017, to appeal its market share amid an increasingly competitive retail market in Canada with strong players as Loblaw, Costco, Wal-Mart, FreshCo, and FoodBasics. No Frills, which has been operating retail business since 1978, is launching an ambitious campaign to re-energise its brand. This initiative responds directly to the raising volume of ‘frugal-chic consumer’, who considers discount shopping not only as a trade-off, but more of a savvy choice.

Pressure to run the campaign and its differences

Even though household income has risen, the Boston Consulting Group (BCG) estimates discounters’ market share will grow up to nearly 50 per cent in some countries, from their typical market share of 10 to 20 per cent. Consumer with higher income stills sees discount as their top promotion of choice. Cliff Grevler, managing partner at BCG Canada, stated that this growth is a result of an increasing pressure on consumer spending and a demand for more convenient shopping experience. And lowering the price does not mean poor quality offerings, but instead No Frills, as well as other discount retailers, offers an expansive selection of product with same level quality. The only distinction is the presentation.

No Frills to catch media attention

The said campaign involves a range of communication medium, from TV ads, radio, in-store ads, and of course, social media, in which No Frills tries to improve their online conversation with consumer. And as usual, such a roaring movement attracts counter-attack from competitors, with their upscale presentation as a main commercial weapon. But No Frills does have a clearly define value proposition after all.

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