Cater to an Underserved Market Segment

Presented By Sudheer Reddy Khushboo Kumari Madhusudhan M R Ramu v

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INTRODUCTION

Dollar General Founder J L Turner CEO: Richard Drelling

Headquarters: Goodlettsville Tennessee, U.S

No. Of Stores: 8,577

DOLLAR GENERAL SLOGAN

Save TimeSave MoneyEveryday

FAMILY DOLLAR Founded 1959 Founder: Leon Levine

Headquarters Matthews, North Carolina, U.S

No. of stores: 6850 aprox

FAMILY DOLLAR SLOGAN

My Family,My Family Dollar

STRATEGY Focus on low-income communities

Open the stores near to their homes

Provided uncrowded parking lots and avoid long checkout lines.

Open a cluster of stores in geographic area

Reduce their advertising to converted to an everyday pricing strategy.

DISCUSSION QUESTIONS

Q1. What is the target market segment for extreme value retailers like Dollar General and Family Dollar ?

Rural and Urban shoppers , Low to middle income young families , Ethnic groups, and Older customers with fixed incomes.

Q2. Why are customers increasingly patronizing these extreme value retailer stores ?

A. Because these provide good quality merchandise at lower prices without hassles of crowds and lines.

B. These stores are available at every nook and corner where big retailers like Wall Mart find it financially inviable to operate. And local residents find it comfortable to shop close to their homes rather than driving 30 min’s to a discount store located in a larger town.

Q3. How do extreme value retailers make a profit when their prices and average transactions are so low?

Q4. Can extreme value retailers defend themselves against general merchandise discount retailers like Wal-Mart, or will Wal-Mart eventually drive them out of business ? Why ?

THANK YOU TO ALL MY FRNDS