The Problem With Publix
Mr. Lansverk, Craig's father-in-law, is visiting from Norway, where he specializes in brand consulting for supermarkets. With a Ph.D. in branding from the University of London, he had a lot of wisdom and insight for us.
Much of the conversation centered around supermarkets. We talked about Whole Foods' ability to sell an experience. Kroger's expansive reach. Publix's supreme customer service. Trader Joe's expert packaging of faux-local feel.
Publix is an intriguing brand for me. Having grown up in Florida, it's been my go-to up until just recently. It's a very charming brand. Small, brightly lit stores; pretty private label design; service that will warm your heart. But something is missing.
"Where Shopping is a Pleasure" is where this brand begins and ends. Publix sells an experience that it hope justifies the 15 to 20 percent markup in price over low-cost leaders like Kroger. And they do this well. The problem, however, is product.
When everyone's making money, "pleasure" is worth the extra cost. But when times are tough, it's a difficult call to make. This is where product counts. Though pricing themselves even higher, a brand like Whole Foods can fall back on quality. Can Publix? Nobody really knows.
Publix has a problem with telling the story of the tangible. Mr. Lansverk had a conversation with the meat manager during his visit to a store. The manager made a bold claim: that only 10% of meat produced in the USA met Publix's standards. If indeed what he said is true, Publix isn't communicating it. And if the cost-conscious customer doesn't know it, Kroger may very well get their money.
It's tough to be stuck in the middle, where you're neither the cheapest or the best (case in point, the convoluted Fresh Market). Ask any sub-premium automaker. And in a rough economy, intangibles are a hard sell. Publix has the warm and fuzzy part nailed down. They just need to back it up with hard goods.
Posted by Alvin Diec on December 30, 2010



Alana Dy
Becky O'Mara
Blake Howard
Craig Johnson
Dustin Britt
Jason Orme
John Bowles
Staci Janik
1 Comment
"I went to Atlanta to visit my brother this past November, and I wasn't impressed with the quality of the products, BUT the hot guys that go there... OH MY! (also lots of sexy cougars) Maybe that's what there selling. Publix= EyeCandy Central!!!
I agree, the feeling of being in smaller market is an different experience, is not intimidating like CRAZY Walmart. Publix keeps that "corner-store feeling", with the convenience that you will find any product you might need.
It's very interesting to me how must people buy the experience sometimes more than the product itself. It speaks of what you appreciate more in life, the comfort and convenience or just the product. However, It is in fact, a very hard choice in times like this."
- miss_vidal