Kesko has strong brands
Kesko has dozens of successful chain and product brands. Strategic objectives and target images that are based on customer needs have been defined for each brand. The objective is to strengthen the value of these brands and to improve the efficiency of marketing. This is measured by customer satisfaction and employer profile surveys, as well as by financial indicators.
Consumers' shopping experiences at K-stores determine our success in the market.
K-Plussa is the joint customer loyalty system of the K-Group. It is the most extensive and diverse customer loyalty system in Finland, providing K-Plussa customers with benefits at over 3,000 outlets and from more than 40 business partners. Chains and stores utilise customer information in, for example, their selection planning, pricing, marketing and store network planning. A key objective is to increase the commitment of K-Plussa customers.
Kesko is primarily the group brand of a listed company. The target groups of the Kesko brand are investors, shareholders, suppliers of goods and services, employees, society in general and all other actors in our operating environment.
Customer-driven business models
The business models applied in Kesko's sales to consumer-customers are retailing through retailer entrepreneurs and Kesko's own retailing. Kesko is also engaged in B2B sales.
1) Retailer entrepreneurs' retailing
The principal business model in the Finnish market is the chain business model, in which independent K-retailers run retail stores in Kesko's chains. In Finland, all food and building and home improvement stores in the K-Group are run by K-retailer entrepreneurs. Through its chain operations, Kesko provides a first-class setting for its retailer entrepreneurs to provide the best possible service to their customers. The K-retailer entrepreneur implements the chain concept and is responsible for store management, customer satisfaction, personnel and business profitability. The K-Group's competitive edge is based on its best selections, excellent service and knowledge of customer needs.
At the end of 2011, Kesko had 1,102 independent K-retailer entrepreneurs and about 130 other retailer entrepreneurs in the Asko, Sotka, Byggmakker and Senukai chains as partners. Kesko's sales to the retailer entrepreneurs accounted for 52% of Kesko's total sales in 2011.
2) Kesko's own retailing
Kesko acts as a retailer in business operations where its competitive advantage is based on having a centrally managed chain concept and large units. Kesko's own retail stores in Finland include the Anttila and Kodin Ykkönen department stores. Kesko is also responsible for retailing home and speciality goods in the K-citymarket chain. Kesko's own retailing is the model mainly used in business operations outside Finland. In 2011, Kesko's own retailing accounted for 26% of total sales.
3) B2B sales
Kesko is also engaged in B2B sales. Typical B2B customers include construction companies, agricultural entrepreneurs, the manufacturing industry, retail dealers, institutional kitchens and the public sector. In 2011, Kesko's B2B sales accounted for 22% of total sales.