IMC 613 Brand Equity Audit for Ingles Markets

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


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.


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)


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.


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.


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


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.


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


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)


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.


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



Packaging

Table 2 Brand elements.


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


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.


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


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.


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.


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.


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)


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.


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.


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)


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


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


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)


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.


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.


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.


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


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.


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.


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.


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)


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.


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