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Growing Market Share While Staying True
NGA 2013
Presented By: Ryan Dach, Jacob Luna,
Lindsey Maresh, and Jarrod Taylor
Saracen Consulting Company
The Question Posed…
Chief Super Market, Inc.
(Defiance, Ohio) a twelve store independent
“….exists to delight customers with great
food and experiences." The company would
like the students to use their imagination to
determine what the company should do to
fulfill the mission and grow market share.
Chief Super Market Mission Statement:
“To treat all parties involved in our business… fairly,
honestly, and with respect for their contribution to the success of the company…”
Store InformationStore Type Location Sq. Ft.
Chief Supermarket Celina, OH 22,600
Chief Supermarket Coldwater, OH 20,745
Chief Supermarket Defiance, OH 31,000
Chief Supermarket Bryan, OH 30,000
Chief Supermarket Wauseon, OH 32,700
Chief Supermarket Paulding, OH 15,200
Chief Supermarket Delphos, OH 24,000
Chief Supermarket Napoleon, OH 31,000
Rays Market Lima, OH 31,240
Rays Northland Lima, OH 24,000
Rays Eastgate Lima, OH 52,000
Rays Clocktower Plaza
Lima, OH 40,000
Grocery Industry Market Forces
Industry Competitio
n
Location of Stores
Consumer Behaviors
Consumer Disposable Income
Demand Fluctuatio
n
Industry Rivalry – Existing Competition
Competition within the Industry: CR10 = 69% in 2010 Dominated by multiunit and Regional
Supermarket chains
Within N.W. Ohio: Stagnated population in area Market Saturated with competition
Industry Rivalry - Stagnated Market
Negative to flat population growth in N.W. Ohio
Stores located in Counties:
Bryan, OH: -3.9%
Lima, and Delphos, OH: -2.0%
Defiance, OH:-1.2%
Celina and Coldwater, OH: -0.3%
Industry Rivalry - Saturated Market
Defiance, OH Lima, OH
Industry Rivalry – New CompetitionThreat of Substitutes:
Substitutes for Grocery stores are growing
More are carrying essential goods
Threat of New Entrants: Corner Stores and Dollar General
repositioning
Whole Foods type stores entering the area
Industry Force - Consumer Behavior
Consumers have increasing number of options
Many stores trying to carry more convenience offerings to cater to consumers Pharmacy
Banking
Gasoline
Oven-ready Prepared Foods
Bill and Marge (50+)
Spend an average of 40 minutes in store
Very brand loyal
Spend 50% of income on food
Pick and choose products based on individual lifestyle
Dominate food spending
Experienced Kyle and Hannah (35-50)
Spend an average of 40 minutes in store
Value price over convenience
Value product information
Focused on feeding families
Educated
Young Kyle and Hannah (20-35)
Spend an average of 43 minutes in store
Only buy 41% of food at traditional store
Need instant access and convenience
Natural, organic and flavor mean a lot
Prefer deals over brands
BCG MatrixRelative Market Share
Ind
ust
ry G
row
th R
ate ?
B&M
YK&H
EK&HSM
P B
CG
2%
1
SWOT
Strengths Sales Promotions/PR
Product Variety
High Quality fresh and prepared foods
Good In-store Customer Service
SWOT
Strengths Sales Promotions/PR
Product Variety
High Quality fresh and prepared foods
Good In-store Customer Service
Weaknesses Low total value image
Perception of high price
Perception of lack of vegetable variety
Scarce Firm Resources compared to competitors
SWOT
Opportunities Growth of “Small Format” stores
Changing Shopper trends
Recession Mindset
Repositioning stores as wellness and nutrition
Expansion of fresh food departments
Threats Increasing competition
Rising Costs
More Rivalry
Mature Industry
The Problem
Chief is not the first choice in most items.
Not the first choice for most consumers.
Bill and Marge (50 & Up) are the most frequent shoppers.
Chiefs is not the first choice among Kyle and Hannah (20-50)
Solution
Not a “One Size Fits All” problem This has become a question of
marketing and the solution lies within the four Ps of marketing.
We are offering solutions based on price, promotion, and product
In each of these sectors we have broke it down into tactics implemented in the short term, mid-term, and long term
Strategy and Tactics
Strategy Statement
Current Strategies
High Quality
Food
Great
Experience
Community
Involvement
Strategy Statement
Strategy Statement
Store of Experiences
Social
Hometown
Wholesome Fun
Market Development Experience
Short Term
Medium Term
Long Term
Adult Beverage Tasting
Short Term
Appeals to men and women Beer Around the
World
Held every other month
“Ladies Night” Wine Tasting
Estimate 30 participants
Adult Beverage Tasting
Market Development Experience
Short Term
Medium Term
Long Term
Adult Beverage Tasting
Cooking Events
Medium Term
Annual BBQ Cook-off Chief is already
well known for it’s quality meat.
Attract new consumers
Bi-monthly Cooking Classes Engage community
with fun classes
Increase basket size and trial use
Cooking Events
Market Development Experience
Short Term
Medium Term
Long Term
Adult Beverage Tasting
Cooking Events
Contest Rewards
Long Term
Revamp the current loyalty program Use for data
collection to better serve customers
Can be used in cooperation with other tactics Contest Rewards
Cards
Change Image for Young Kyle and Hannah Through Contests
Short Term
Medium Term
Long Term
“Plinko”
Short Term
New spin on a classic game
Held once a quarter Customers gain one
chip for every $100 spent Eligible for an extra
chip with use of loyalty card
Prizes range from a free cookie to “Dinner for Two”
“Plinko”
Market Development Contest
Short Term
Medium Term
Long Term
“Plinko”
“Supermarket Sweep”
Long Term
Annual contest Contestants drawn
on a raffle system One entry for
every $150 spent Places 1st-3rd
awarded with store credit
Acts as a large draw for surrounding communities
“Supermarket Sweep”
Financials
Column1 Adult Beverage Tasting Cooking Events "Plinko" "Supermarket Sweep"
Expected Gross Income $960 $1,500 $2,000 $2500
Expenses
Inventory Products $275.00 $0 $1,600 $1,313
Promotions $200 $200 $200 $300
Event Supplies $85 $200 $200 $500
Site Rental $0 $600 $0 $0
Employee Time $95 $126 $0 $252
Total Event Expense $655.00 $1,126.00 $2,000.00 $2,364.50
Net Income $305 $374 $0 $135.50
ROI 47% 33% 0% 5.7%
Strategy Statement
Store of Experiences
Social
Hometown
Wholesome Fun
Convenient
Differentiated
Market Penetration Products
Short Term
Medium Term
Long Term
Meals-to-go
Market Penetration- Products
“Take me home tonight”
Meals prepared for pickup
Made fresh
Meals-to-go
Market Penetration- Products
Short Term
Medium Term
Long Term
Tent Sales
Meals-to-go
Market Penetration- Products
Seasonal items
Draw attention
Tent Sales
Market Development- Products
Short Term
Medium Term
Long Term
Student Discount
Soup & Sandwich Bar
Offered four times a year
Statewide
Increase college-age foot traffic
Student Discount
Market Development- Products
In store
Hot & fresh
Convenient meal
Soup & Sandwich Bar
Market Development- Products
Market Development- Products
Short Term
Medium Term
Long Term
Student Discount
Dinner for Two
Soup & Sandwich Bar
Market Development- Products
Meals prepared for couples
Date night
Dinner for Two
Market Development- Products
Short Term
Medium Term
Long Term
Student Discount
Dinner for Two
Online ShoppingFood Truck
Soup & Sandwich Bar
Market Development- Products
Ultimate convenience
Busy lifestyles
Parents with kids
Not much competition in this area
Implement within 12-18 monthsOnline Shopping
Market Development- Products
Mobile hot spot
Lunch for people on the go
Moving billboard
Gain exposure
Implement within the next 2-3 yearsFood Truck
Financials
Column1 Meals to go Tent sales Student Discount Soup bar Dinner for
twoOnline
shopping Food truck
Expected Gross Income
$12,480.00 $12,000.00 $518,400.00 $18,200.00 $65,000.00 $130,000.00 $36,000.00
Expenses
COGS $7,280.00 $ 5,400.00 $461,376.00 $10,400.00 $46,800.00 $114,400.00 $ 22,500.00
Equipment $1,500.00 $ 3,000.00 $ - $2,000.00 $ - $ - $60,000.00
Promotion $250.00 $ 750.00 $6,898.56 $500.00 $1,200.00 $1,500.00 $5,000.00
Employee Time $1,130.40 $ 1,695.60 $ 4,019.20 $ 1,130.40 $3,140.00 $5,887.50 $6,280.00
Event Profit $3,819.60 $ 4,154.40 $46,106.24 $6,169.60 $13,860.00 $ 8,212.50 $ 2,220.00
ROI 37.58% 38.3% 9.76% 43.97% 27% 6.74% 2.36%
ROI -Program 132% 76.2% 3754% 169% 319% 111% 3%
Conclusion
Questions?
Sam Houston State University Located in
Huntsville, Texas Ag-IT Department
Over 1,000 Major Students
Degrees offered:
Ag-business
Animal Science
Horticulture
Ag-education
