OnDemand WTP Pricing Research

What expensive ketchup can tell us about Amazon’s grocery strategy | The Grocer

On the face of it, it’s a head-scratching offer.

Six squeezy bottles of no-name ketchup for an eye-watering £10.34, more than three times the price you’d have to pay for six bottles of own-label ketchup in Tesco, where a 550g bottle costs just 65p.

Own-label mayonnaise, yellow mustard and BBQ sauce under the same Solimo own-brand are sold at similar price points.

So why is Amazon selling own-label table sauces at such a seemingly uncompetitive price? What kinds of shopper is this aimed at? And what does all this tell us about its wider grocery strategy?

We asked Ray Gaul, senior vice president of research and analytics at Kantar Consulting, to explain.

“Let me start by saying that Amazon doesn’t seem to have got its prices right at the moment – and most of the comments online reflect this. It will correct that quickly.

Now, let me explain why this Amazon ketchup should not be compared to Tesco or Asda ketchup.

First, this product is part of the Amazon Vine Programme. Think of this as Amazon’s R&D platform, where it invites consumers to provide feedback.

Read complete article here:

What expensive ketchup can tell us about Amazon’s grocery strategy.

Post a Comment

WP-SpamFree by Pole Position Marketing