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It’s sauerkraut season, and that makes the chains compete for certain ingredients.
This week, the price per kilo is only NOK 1.90 for cabbage in the low-price chains Rema, Kiwi and Extra. This is the middle of kale season:
– They use an essential ingredient in a plate for people to enter. This is a chain pricing strategy, says Tor Wallin Andreassen, a professor at the Norwegian School of Management and an expert in marketing and entrepreneurship.
SALES TRICK: Tor Wallin Andreassen, professor at NHH, thinks cheap cabbage is a sales trick.
Photo: (NHH)
He thinks cheap cabbage makes people turn on the idea of having sauerkraut for dinner.
– Customers are attracted by the low price of cabbage. If they’ve already decided to make sauerkraut, they don’t look at the price of the rest of the ingredients, he says.
Also read: Norgesgruppen has now changed the packaging of its meat
– Includes more expensive raw materials
Andreassen believes that this is a classic trick to start a purchase agreement and compares it, for example, with a printer, where it is cheap, while the ink is expensive. Therefore, you think cheap cabbage is a sales ploy.
– It’s a way of getting people to make the decision to make a dish that includes more expensive ingredients, he says.
The online newspaper has analyzed the prices of cabbage, sauerkraut meat and whole pepper in Kiwi, Rema and Extra. Although cabbage is very cheap, NOK 1.90, it still won’t be a cheap dinner dish.
In the three low-price chains, the total price ends at just over 85 crowns. Fårikål meat costs NOK 74.90, for the cheapest fresh meat type, while whole pepper 22 grams costs NOK 8-9.
MEAT: The most affordable fresh lamb from the low-priced chains is priced per kilogram of NOK 74.90. Illustration photo.
Photo: Nina Lorvik (Mediehuset Nettavisen)
Feel free to express your opinion in the survey before reading further, the article continues below.
Confirm price competition
Harald Kristiansen, head of communications for Coop Norge, says there will be a price competition for cabbage when it is season for this vegetable in Norway.
– There is a lot of competition for cabbage, and it is an additional product that customers need when making kale. We hope cheap cabbage helps motivate people to eat more kale, he says.
DON’T FRAUD CUSTOMERS: Harald Kristiansen, Coop’s communications manager, says they don’t try to fool customers with cheap cabbage.
Photo: Halvor Ripegutu
Kristine Aakvaag Arvin, Kiwi’s head of communications, also confirms that there is price competition for cabbage.
– It is true that Kiwi has lowered the price of cabbage. This week is Kale Day, and there is a high demand for cabbage, bell peppers and kale in Kiwi, he says.
She says there is stiff price competition for lamb cabbage as well.
– We sell cabbage, peppers and lamb at a loss. Kiwi should be the cheapest of all products, including what you need for kale dinner, says Arvin.
Arvin has not responded to Nettavisen’s questions about what they think of Andreassen’s remarks.
Rema 1000 also confirms the price war, but rejects Andreassen’s claims that only cabbage is sold cheaply:
– There is stiff price competition for mutton cabbage between low price chains, so this theory is not true. Our Nordfjord beef also scored a dice roll of five in Dagbladet’s taste test, so it’s very good value for money here. The fact that we also have such a low price for cabbage is only good for customers, so they pay even less for a good sauerkraut dinner, says Calle Hägg, manager of public relations and communications at Nettavisen’s Rema 1000.
Read also: Races against Rema products: – Direct lies
– Customers are not dumb
Lamb cabbage meat is sold year-round, but it’s fall when most people eat it, according to Kristiansen in Coop.
– There is the best meat supply in autumn, and it is in autumn that most Norwegians also eat kale. But lamb is inexpensive compared to other meats, he notes.
He points out that the price of the cheapest beef tenderloin in the Xtra series is 278 kr, and then he thinks that kr 74.90 per kilo of sauerkraut is not expensive.
Kristiansen at Coop rejects using cheap cabbage as a sales tactic.
– Selling cabbage for 1.90 does not mislead customers. The only ones cheated here are us, who sell cabbage and sauerkraut at a loss. It may seem “headless,” but the competition is fierce and we must be the cheapest, he says.
Also Read: Now You Can Use Vipps At Rema Grocery Stores
He doesn’t think customers are blind to the price of cabbage.
– Customers are not stupid. In all seasons, accessories are priced lower, he says.
Kristiansen points out that stores sell different types of lamb cabbage meat and there are quality differences in the meat that also help control prices.
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