468 Retail and Channel Management Blog

Sunday, March 12, 2017

Maxima – The Real Lithuanian Superpower

Maxima – The Real Lithuanian Superpower

Maxima, is a large supercenter most popular across the Baltic regions of Europe with locations in Lithuania, Latvia, and Estonia.  With just over 237 stores they serve 550,000 buyers daily in Lithuania, and in a country with only 2.96 million this is very impressive! To understand how successful they are in this region they could be easily compared to Walmart, they offer a large variety and best of all at low prices. Maxima is one of my personal favourite stores I found while living there as it was always nearby and always had what you needed. Focusing on their Retail Value Proposition we will delve into their locations and their remaining RVP strategies.

We start by analyzing their Environment portion of their RVP. Maxima utilizes an excellent strategy of various store sizing depending on the area they are located in. Lithuania has many varying sized cities and towns which greatly benefits them in meeting demand but not over supplying these areas. The main focus for Maxima is convenience as stated in their mission statement and they definitely meet this by using X, XX, and XXX sizes (Exhibit 1). X sized stores are for small living areas to find daily meals, XX stores allow a larger selection with a quicker shopping process with XXX stores being the largest and elaborating the most on XX.

Exhibit 1: Maxima Store Formats

Next speaking on aspects of Selection and Engagement in which they really shine by leveraging their store sizes. Selection is excellent at a XXX location being able to offer a wide variety of products all year round. For someone being from North America this was very convenient, for example, one may find finding various fruits and vegetables can be challenging in Baltic countries and who wants to go a winter without oranges and other delicious fruit. Although their smaller store locations don’t have such selection they serve their purposes in both small towns and neighbourhoods. Engagement is quite limited as items are strategically placed on shelves, and displays are set up as well similarly to large stores here in Canada. Therefore, customers grab products via their own efforts then continue to the cashier, thanks to Piggly Wiggly of course!

Their Pricing approach is one similar to Walmart by pricing to beat competitors such as Iki and guaranteeing to price match as well to be the lowest in any category. It is clear that with this new campaign launch at the end of February 2017 they are targeting price sensitive customers and ensuring all of their 1,000 group’s best-selling products are priced to beat everyone. These 1,000 items represent a large portion of their turnover and also these prices seem to be a very sought after aspect of a superstore after the market research done on the citizens of Lithuania.

Exhibit 2: 1000 Item Pricing Markdown Announcement

In summary utilizing their various store sizes, convenient locations, and new pricing strategy I believe they provide an excellent value proposition to draw in new customers and maintain current relationships as well.



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