CASE SCENARIO: Small Supermarket Chain
Changing demographics have forced an owner of a small supermarket chain to reconsider its overall retail strategy. Originally, the trading area served by the chain had a high concentration of older shoppers. Now, it has become increasingly inhabited by young singles and by working couples. The current strategy is built on the store's picking and delivering orders to a customer's home for a $5 additional charge, a "heat and serve" department featuring broiled chickens and fried fish, and a large selection of high-quality meats and fruits and vegetables.
Promotion has been through a weekly circular distributed with the Sunday local newspaper. The chain's owner wants to better target the younger SHOPPER without alienating the older shopper. The owner has mapped out some of the major purchasing factors for his older customers:
• Older customers who are mobile may shop at multiple food stores or shop multiple times per week. Those who are less mobile use the store's picking and delivering option and order on a weekly basis. The picking and delivering option is especially popular during snowstorms.
• Many older customers seek out store specials. They are also prone to use manufacturer COUPONS.
• Many older customers are concerned about the salt content of prepared foods. Some also prefer bland food recipes and comfort foods such as mashed potatoes, meat loaf, and roasted chickens. The owner has also mapped out some of the major purchasing factors for his young singles and working couple
Customers:
• These customers typically have smaller annual supermarket purchases due to their eating several meals per week at restaurants or on a take-out basis.
• A number of young customers would rather order via computer or by fax.
• Some would prefer a computer system that contained last week's purchases so that commonly purchased items could be more easily reordered.
• Many of the younger customers do not purchase the store's prepared foods. Instead, they prefer ethnic foods (such as Italian, Chinese, and Japanese) that can be purchased on a take-out basis in local restaurants or on a prepared basis in larger supermarkets.
In evaluating its current strategy against the needs of both segments, the supermarket chain's owner is aware that the firm currently does not offer fax or computer-based ordering, and that its selection of ethnic prepared foods is poor.
All of the supermarket's stores are located in strip neighborhood shopping centers. Typically, the neighboring stores in these centers include a dry cleaner, pharmacy, and bakery. The supermarkets are open from 8 A.M. to 9 P.M. seven days per week.Brief Description of Retail Business:
1. Situation Analysis
• Current organizational mission:
• Current ownership and management alternatives:
• Current goods/service category:
2. SWOT Analysis
• Current strengths:
• Long term strengths:
• Current weaknesses:
• Long term weaknesses:
• Current opportunities:
• Long term opportunities:
• Current threats:
• Long term threats:
3. Objectives
• Sales:
• Profit:
• Positioning:
• Satisfaction of publics:
4. Identification of Customers
• Mass marketing:
• Concentrated marketing:
• Differentiated marketing:
5. Overall Strategy
• Controllable variables:
• Goods/service strategy:
• Location strategy:
• Pricing strategy:
• Promotion strategy:
6. Specific Activities
• Daily and short-term operation:
• Responses to environment: