HolyNamesUniversityEnglish108W:ProfessionalWriting

ProfessorWalkerDecember5,2017

FINALPORTFOLIOJasmineOchoa

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Brief Portfolio Purpose Overview

Overall this portfolio is set up to help me accomplish three of my main goals. The first goal is to

go to grad school. For this reason I have included a personal statement. My second goal is to get a

internship or job upon graduation. One of the companies I am considering is Safeway. For this

reason, the first sections (page 5 to 12) of my portfolio are about Safeway. Framing my portfolio

around Safeway allowed me to gain basic knowledge of the company and create a cover letter.

Lastly, my last goal is to be an educated marketing student. I have learned a plethora of marketing

and business strategies throughout my time at Holy Names University. As a result, the last section

of my portfolio is my personal business plan (page 13-19). This section allowed me to put my

business and marketing knowledge to the test while giving me experience creating my own

professional documents.

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TableofContents

PERSONALSTATEMENT..................................................................................................................................5IwantmyportfoliotorepresentfuturegoalsIwanttoaccomplish.UpongraduatingfromHolyNamesoneofmygoalsistoattendgradschool.AlthoughIhavenotdecidedwhatgradschoolIwanttoattendauniformrequirementisapersonalstatement.ForthisreasonIdecidedtoincludeapersonalstatementinmyportfolio.Mypersonalstatementwillplacemeonestepclosertoachievingmygoaltofurtheringmy

education.

SAFEWAYCOMPANYOVERVIEW..................................................................................................................7HISTORY:.....................................................................................................................................................................................7OPERATINGSTRATEGY:...........................................................................................................................................................7DuetothefactthatgraduationisjustaroundthecornerIhavebeenlookingatpossibleinternshipsandjobopportunities.OneofthecompaniesIhavebeenlookingintoisSafeway.MyfatherhasworkedforSafewayfor18yearsandotherprofessorsthatIadmirehavealsoworkedforSafeway.ForthisreasonIdecidedtolookatSafewayforpossiblejoborinternshipopportunities.However,uponwritingmycoverletterforaninternshipatSafewayIrealizedthatIhavenobasicknowledgeofthecompany.ThisrealizationinspiredmetodosomeresearchonthecompanyandIdecidedtodoacompanyoverview.Thisresearchofthecompany

allowedmetogainbasicknowledgeandthoroughlycompletemycoverletter.

SAFEWAYMARKETINGANALYSIS...............................................................................................................8MARKETINGANALYSISSUMMARY:........................................................................................................................................8TARGETMARKET:.....................................................................................................................................................................8COMPETITION:...........................................................................................................................................................................9

Thissectionallowedmetoplacemymarketingskillstothetest.IhavelearnedmanyusefulstrategiesinmymarketingclassesthroughoutmyyearsatHolyNamesUniversity.However,Ihaveneverwrittenamarketinganalysis.Forthisreason,Itookthisopportunitytocreatemyownmarketinganalysisonanexistingcompany.

ThisallowedmetogaininsightintoSafeway'sconsumerbaseandmarket.ItalsoallowedmetogainknowledgeaboutSafeway,whichwillproveusefulwhenIgoandworkforSafeway.

SAFEWAYSWOTANALYSIS............................................................................................................................9STRENGTHS:...............................................................................................................................................................................9WEAKNESSES:.........................................................................................................................................................................11OPPORTUNITIES:....................................................................................................................................................................11THREATS:.................................................................................................................................................................................12ThissectionallowedmetogainknowledgeofSafeway'scurrentpositioninthemarket.Iwaspleasantly

surprisedtolearnthatitisoneofthetopcompetitorsinthesupermarketindustry.Additionally,thissectionallowedmetogainmoreknowledgetowriteaboutSafewayinmycoverletter.

BARRIERSTOENTRY/EXIT.........................................................................................................................12Thissectionallowedmetogainknowledgeofwhatanewsupermarketwouldneedinordertocompetewith

companiessuchasSafeway.ThiswillbeusefulasbasicknowledgeofanindustryorwhenIgetajobatSafewaybecauseIlearnedaboutthebackgroundofSafeway.

ADVERTISINGANALYSIS...............................................................................................................................13TheadvertisinganalysiswasawayformetolearnmoreofSafeway'scurrentmarketing.Asamarketing

majorIbelievemarketingistheprimewayacompanycanbesuccessful.ThissectionwasusedtolearnmoreaboutSafewayandhowtheycanimprovetheirmarketing.

PERSONALBUSINESSPLAN..........................................................................................................................15EXECUTIVESUMMARY:..........................................................................................................................................................15

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COMPANYDESCRIPTION:......................................................................................................................................................16MISSIONSTATEMENT:...........................................................................................................................................................16VISIONSTATEMENT:..............................................................................................................................................................17

Mypersonalbusinessplanrevolvesaroundthefictionalstore,HAX.IwasinspiredtowriteaboutastoreafterdoingresearchonSafeway.Thebusinessplanallowedmetogainexperienceplanningforanewbusiness.Asabusinessmajor,Ihadnotreceivedtheopportunitytocreateanindividualbusinessplan.Asaresult,Iused

theopportunityinthisprofessionalwritingclasstocreateabusinessplaninmychoiceofindustry.

HAXSWOTANALYSIS:....................................................................................................................................18STRENGTHS:............................................................................................................................................................................18WEAKNESSES:.........................................................................................................................................................................18OPPORTUNITIES:....................................................................................................................................................................19THREATS:.................................................................................................................................................................................19TheSWOTanalysiswasapartoftheHAXbusinessplan.ThissectionallowedmetocomparemyfictionalstorewithSafeway.IwasabletolearnfromSafeway'smistakesandweaknessandtakeadvantageofthem.ThissectionwillbeusefulformeinthefuturewhenIgetajobduetothefactthatitisbasedontheentire

industry.

HAXTARGETMARKET...................................................................................................................................19Thetargetmarketsectionservesthepurposeofanalyzingamarketandchoosingwhatconsumersaremorelikelytovisitmystore.Iwasabletoputmypreviousmarketingknowledgeintopractice.Thiswillbean

attributeforwhenIworkinamarketingposition.

HAXFOURP’S:...................................................................................................................................................20PRODUCT..................................................................................................................................................................................20PLACE.......................................................................................................................................................................................20PRICE........................................................................................................................................................................................20PROMOTION.............................................................................................................................................................................21

Thissectionallowedmetobealittlemorecreativethanbefore.Iwasabletocompletelydesignmyownstoreandenvisionthearchitectureandlayout.Notonlydiditallowmetogaininsightonthegrocerymarket

industry,italsoallowedmetousemymarketingskillsthatIhavelearnedthroughouttheyears.ThissectionwillbeusefulifIeverhavetowriteupamarketingmixinanyfuturejobs.

WORKSCITED....................................................................................................................................................22

PERSONALSTATEMENT

Four years ago I was sitting at my desk wondering if I was intelligent enough to attend a

university. My seventeen-year-old mind raced with thoughts of how I was not good enough; how

could a shy and average girl from East Oakland accomplish what so few do? An Oakland student

graduating from a four-year university was sadly, uncommon. However, my mind battled these

doubtful thoughts with thoughts of my parents and my beautiful city, Oakland. Now, at twenty-

one years old, I am months away from receiving my bachelor’s degree in business marketing

with a minor in accounting and I am pursuing my master’s degree.

The thought of my parents and their smiling faces on my graduation day incentivized me

to never give up, no matter how hard those accounting classes were. The happiest day of my life

was when I received the Presidential Scholarship from Holy Names University. This scholarship

completely covered my tuition for four years and it granted me the ability to obtain my bachelors

degree without accumulating any debt. Although this accomplishment brought an immense

amount of joy for me, the look on my parents face when I told them the news still overwhelms

me with an even greater amount of joy. Their strong embrace from that day still fills me with

warmth to this day. Both of my parents struggled tremendously to enter this country and I know

the least I can do is make them proud and one day be able to give them the life they so greatly

deserve.

Living in Oakland, it worries me that our youth grow up with a seed planted in their head

that a college degree is a fairytale. Oakland has been stereotyped; people believe that teens in

Oakland will grow up to be low income, dropouts, low educated, drug addicts, and criminals

barely making enough money to live by. My mission is to change that stereotype. As an

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undergraduate student I spent my freshmen year volunteering at local Oakland preschools,

elementary, and high schools. Although I was there to help with homework I always made sure

to talk to the students about college and plant a different seed in their head; a seed of hope and a

brighter future. My hope was that the students would be aware of what college is and know that a

person from Oakland can attend a university. I spent sophomore and junior year working part

time at Monarch Academy, an elementary school located in East Oakland and part of the charter

school system of Aspire Public Schools, as an after school educator. I had my own class of 22

kids and I never failed to remind them that they all have the capability to attend college. My goal

was to be the teacher that inspired them to pursue a higher education. I wanted to spark a change.

Monarch Academy is a school that is near and dear to my heart because I attended that school

from kindergarten to fifth grade. I love Aspire schools because they live by their “College?

Claro!” mantra, this allows kids to learn about college from the root of their education. Now as a

college senior, even though I am occupied with a busy school schedule I still go back to the after

school program at Monarch Academy to volunteer. I hope that my former students are motivated

to join me in breaking a stereotype that affects our community.

I was brave enough to separate myself from the common, “I’m not going to college”

statement four years ago and I do not plan to stop there. Senior year in high school my goal was

to graduate college in order to prove to myself that even though I am a minority, low- income

student, and I come from a low educated neighborhood, I am able to accomplish anything I set

my mind to. Now, that I am closer to accomplishing this goal, my new goal is to obtain my

master’s degree in order to continue to disprove the stereotype of youth from Oakland.

Eventually one day, I will be able to give back to the Oakland community that, although is rough

around the edges, has given so much to me. I look forward to embracing the increasing

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responsibility and obstacles that will rise and I look forward to allowing graduate school to bring

me new skills that will help shape my future.

SAFEWAYCOMPANYOVERVIEW

History:

Safeway, Inc., a subsidiary of Albertsons, is an American grocery store chain founded in

1915 by M.B. Skaggs. By 1926, Skaggs had opened 428 stores; this number doubled that same

year when Skaggs merged his grocery stores with Selig stores and officially became Safeway. In

1928 Safeway became a publically traded company, but went private in 1986. Safeway later

became public again in 1990. Currently, there are over 1,678 Safeway stores throughout the

United States. The stores are primarily located in mid-Atlantic and Western United States,

Chicago, and Texas. Safeway stores offer a variety of food, drinks, and other general

merchandise such as toilet paper, paper towels, and toiletry items. Along with this, Safeway

stores offer other departments such as floral, bakery, deli, pharmacy, and Starbucks coffee shops;

some stores even have neighboring Safeway gasoline stations.

OperatingStrategy:

Safeway strives to provide a superb shopping experience for consumers by maintaining

exceptional store standards and competitive prices on a vast selection of products. In order to

accommodate consumer’s busy and fast paced lives, Safeway has incorporated multiple

departments in their stores to become a one-stop shop for consumer needs. Additionally,

Safeway offers grocery delivery service and a grocery-shopping app, which allows customers to

personalize their shopping experience. All these combined features allow Safeway to provide

consumers an enjoyable shopping experience in order to incentivize them to return.

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SAFEWAYMARKETINGANALYSIS

MarketingAnalysisSummary:

The grocery store and supermarket industry represents a dynamic market, with

consumer’s needs and demands always changing. Grocery stores have to be able to respond to

these ever changing demands in order to run a successful business. Consumer demands tend to

shift from organic brands to private label brands, depending on consumer’s income. If a

consumer has more money available, they will be more likely to purchase organic products,

which tend to be more expensive. However, if the consumer is making ends meet, they will reach

for off brand products, which are inexpensive. In 2011, the food store industry (grocery stores,

convenience stores, gas stations etc.) had revenue of $571 billion in the United States (United

States Department of Agriculture). Grocery stores accounted for 91% of food store sales

(USDA). In 2013, the 20 largest food retailers, including Wal-Mart, Kroger, and Safeway,

represented 63.3% of grocery store sales: $449.3 billion (USDA).

TargetMarket:

Safeway stores target middle-income households. While they offer cheaper prices to club

card members, Safeway is still more expensive then competitors such as Wal-Mart, which targets

low-income households. Safeway targets single households rather than bigger families. For this

reason, Safeway does not offer bulk grocery items. According to Infoscout.com, data taken from

receipts in 2015 shows that the majority of Safeway shoppers are males above 60 years old. On

average, the majority of shoppers have no kids, an annual income of at least $100 thousand, and

a college degree. According to the receipt data from 2015, the average basket size is nine

products and the average basket price is $32.25.

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Competition:

Safeway’s top competitors are The Kroger Co, Wal-Mart Stores Inc., and Whole Foods.

The primary factors that determine the competitiveness of a store are quality, location, price,

customer service, and selection. Safeway’s largest threat is Wal-Mart, with over 5,352 retail

stores in the United States. Due to its wide array of products ranging from apparel to groceries,

Wal-Mart has been able to provide below market prices to consumers. With competitors like

Wal-Mart, Safeway participates in price competition, which has affected the operational and

profit margins of Safeway. As Wal-Mart continues to dominate the consumer market, Safeway is

forced to find cost saving alternatives. Amazon’s increasing power in the grocery industry was a

rising threat for Safeway. This threat became strengthened and turned into competition when

Amazon acquired Whole Foods in 2017 for $13.4 billion. With competitors such as Whole

Foods, Safeway competes in quality. Whole Foods has pioneered the popularity of organic foods.

According to The New York Times, “the Organic Trade Association announced that sales of

organics had increased by 8.4 percent to $43.3 billion, or more than 5 percent of grocery sales.”

This growth was announced May 2017. This increased demand for organic foods has caused

Safeway to increase its variety and selection of organic foods in order to be attractive to

consumers.

SAFEWAYSWOTANALYSIS

Strengths:

Safeway’s private labeled products have gained an enduring and ongoing success in

stores. Safeway’s private labeled goods offer a wide selection of products and range in variety

from O-Organics brand to Signature Select. These private labeled products have maximum shelf

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presence and customers are attracted to their quality and low prices compared to brand-name

products. Additionally, by introducing Starbucks, an extremely popular coffee shop, in their

stores Safeway increases foot traffic, which makes Safeway stores an attractive destination.

Safeway offers many departments such as: floral, bakery, and pharmacy. This variety of options

allows consumers to choose Safeway as opposed to other stores. Consumers have the opportunity

to complete errands quickly, which accommodates consumers’ busy lives. Safeway’s location in

neighborhoods makes the store attractive because they are close to consumers. Also, Safeway

offers a reward card, which allows customers to save money when shopping. Consumers are

always looking for a lower price in stores, thus these reward cards allow consumers to see

exactly how much money they save as soon as they swipe their Safeway card. This brings the

consumers immense satisfaction because they know that shopping at Safeway saves them

money. These cards keep customers coming back in order to save money, which allows Safeway

to build customer loyalty. Although these Safeway cards are easy to acquire, owning a Safeway

card allows customers to feel connected to the store because they feel the card brings them

exclusivity. This feeling of exclusivity gives consumers a further incentive to shop at Safeway

stores. Similarly, Safeway offers popular campaigns and games, such as Monopoly, where

customers can win prizes when they shop. The Monopoly game allows customers to win prizes

that range from coupons, to $1 million. This game is an incentive to keep customers coming back

in hopes that they are one of the lucky winners. In an effort to expand internationally, Safeway

acquired a 49% stake in Casa Ley, a grocery store located in Western Mexico. This strategy has

allowed them to expand their presence into Mexico and begin to create brand awareness. All

these elements contribute to the Safeway’s strengths.

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Weaknesses:

Safeway has struggled with expanding outside North America and building brand

awareness. Safeway’s lack of presence outside the United States stifles the store’s popularity.

This lack of expansion prevents the brand from growing and competing with superstores such as

Wal-Mart, which is international. High and increasing operating costs jeopardize the long-term

future, success, and expansion of Safeway. With competitors like Wal-Mart, Safeway has to

maintain low prices in order to attract consumers. Without the ability to lower operating costs,

Safeway’s profits suffer. Safeway’s heavily relies on their location strategy. They generally

locate their stores near residential areas as opposed to shopping centers like Wal-Mart.

Consumers tend to go to Safeway because of the location convenience factor. An Infoscout

survey revealed that 76% of consumers shop at Safeway simply for convenience.

Opportunities:

Safeway’s O-Organics product line gives the company an opportunity to access a new

demographic of people who are searching for organic food products. O-Organics was launched

in 2005 with the mission to offer organic food at an affordable price. This product line represents

an opportunity for Safeway to cater to a wider consumer base. Online grocery delivery allows

Safeway to provide a different medium of getting groceries to customers. This allows the

company to compete with rising companies, such as Uber, who offers UberEats or Postmates.

This also allows the company to target younger consumers who are savvy with technology. Due

to the fact that Safeway has opened the door to grocery delivery from their store, they have the

opportunity to further market and advertise this option.

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Threats:

In the United States, the food store industry is extremely competitive. It is vital for

grocery stores to implement factors such as popular locations, outstanding customer service, low

prices, good quality, and wide selection of products. Superstores such as Wal-Mart present a

great threat to Safeway because of their extremely low prices. Intense competition from stores

like Wal-Mart and Kroger are a threat to Safeway because they are growing at an immense rate,

which Safeway cannot compete with. Additionally, minimal advertising and awareness of their

online operations is a threat with the growing ecommerce market. According to CNBC, “Around

a quarter of American households currently buy some groceries online, up from 19 percent in

2014, and more than 70 percent will engage with online food shopping within 10 years.”

With the growing ecommerce grocery market it is vital that Safeway increases mere exposure to

consumers of online operations. Furthermore, increasing labor and health care cost represent a

threat for Safeway. As laws require employers to cover these costs, operational costs grow. As

these costs are increasing Safeway’s profit margin will experience a decrease.

BARRIERSTOENTRY/EXIT

Barriers to entry are challenges or costs that make it difficult for companies to enter an

industry. Barriers to exit are difficulties in exiting an industry. Low barriers to entry characterize

the grocery market industry. Due to these low barriers, new companies are always entering the

industry. This makes the grocery store industry highly competitive. Grocery stores are always

trying to lower their prices in order to attract consumers. However, with increasing price

competition, stores are cutting into profits. Another barrier to entry is economies of scale. In the

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grocery industry there are several experienced competitors. The sizable competitors include Wal-

Mart, Kroger, Costco etc. Competitors such as Wal-Mart are experienced enough to have

networks with suppliers, which allow them to provide cheaper prices to consumers. An emerging

grocery store will not have the advantage of having connections with suppliers. As a result, an

emerging grocery store will not be able to compete with the cheap prices other experienced

competitors offer. Another barrier to entry are contracts and permits. If permits are limited

(depending on location), then the emerging grocery store will struggle trying to receive a permit.

For example, liquor permits are often limited in number and determined by zip code. An

emerging grocery store can also experience trouble trying to negotiate with a major food

company, such as General Mills. General Mills might be selective when negotiating contracts

with grocery stores. If a store cannot negotiate contracts with popular brands, consumers are less

likely to shop at their stores. The last barrier to entry is property costs. An emerging grocery

store must have a building to convert into a store. Finding a location is a steep start up cost that is

vital for the succession of the grocery store. The inventory involved in the grocery industry is

very liquid, which means they are able to sell quickly. Since the inventory sells quickly, exit

barriers are also low.

ADVERTISINGANALYSIS Safeway advertises through smartphone apps, television, and paper ads. They created an

app called Just for You, which is a coupon based app that allows consumers to add coupons to

their club card. This type of advertising incentivizes consumers to continue shopping at Safeway,

which increases customer retention. This type of advertisement is more effective on consumers

with high motivation, ability, and opportunity. In order for this type of advertisement to function,

consumers must be highly motivated because they have to search for the app of their phone.

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Additionally, they must wait for the app to download. Consumers must also have the ability to

use a smartphone in order to use the app. For this reason, older consumers are less likely to use

this app because they are not as fluent with technology. This advertising allows Safeway to target

a new market of younger consumers, which are more fluent with technology. Consumers also

have to have the opportunity to download the application. This means that they must have time

and the proper information available in order to download the application.

Safeway also advertises through television commercials, which give viewers insights of

the store’s deals of the week. These commercials are effective because they target a wide range

of people. A person watching these commercials does not have to have high motivation, ability,

or opportunity because they are not actively searching for information. Commercial

advertisements allow Safeway to get exposure. However, selective exposure threatens the

success of commercial advertisements. Selective exposure includes zipping and zapping. Zipping

is fast-forwarding through commercials on programs regarding earlier, while zapping is the use

of remote to switch the channels during commercial breaks. Both of these consumer strategies

are threatening because they prevent the commercials from serving their purpose. Additionally, if

selective exposure is not a threat to the advertisement the consumer’s mood can affect the

responsiveness of the consumer to the ad. If a consumer is watching a television show and they

do not like the program, their attitudes toward any advertisements they see might be negative.

Similarly, if they are enjoying the show they are watching then their attitude toward the

commercials might be positive. Thus, although television commercials grant a company

exposure, there are risks that the company cannot control.

Lastly, Safeway advertises through paper advertisements. These advertisements are a

paper version of their television commercials. Safeway sends these paper ads through mail and

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offers them in the entrance of their stores. In order for these advertisements to be effective

consumers must have high motivation, ability, and opportunity. A consumer must be motivated

to read through the paper ad and look for deals. They must also have the ability and time to read

through the ad. These ads are more effective with older shoppers who are not familiar with the

Just for You smartphone app. Safeway consumers must have a favorable attitude toward the

store in order to make time to read the advertisement.

To conclude, Safeway advertises through three different mediums. They do this in order

to receive as much exposure as possible among consumers. While some modes of advertisement

appeal to younger consumers and some to older consumers, they all grant the company exposure.

PERSONALBUSINESSPLAN

ExecutiveSummary:

Hax stores will begin operations in the Bay Area. This business plan is generated to

secure funding of $1,000,000. With this funding Hax plans to commence building and modifying

Hax stores, cover the first year of operating costs and other expenses, and purchase necessary

equipment (shelves, freezers, cash registers, etc.). The site where Hax plans to begin operations

has already been purchased.

In order to begin operations, Hax will be formed as a limited liability partnership. A

limited liability partnership incorporates some factors of a corporation. Thus, partners will have

limited personal liability. Since Hax is a new business, partners will have piece of mind knowing

that personal assets are not in jeopardy. This limited liability partnership lessens the risk of the

partnership and investment.

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Hax store is expected to have an amazing growth rate and profitability margin within the

first year of operations. Hax stores differentiate themselves in store style and food selection in

order to create a competitive advantage. This competitive advantage will allow Hax to stand out

from traditional grocery stores. We plan to reinvent and redefine a trip to the grocery store by

making it an exciting experience.

CompanyDescription: Hax plans to be the first innovative grocery store. Hax wants to combine technology and

a wide food selection in order to provide an enjoyable shopping experience. The food selection

will vary from vegan to organic to basic, in order to cater to different incomes and demands. Hax

will incorporate technology in every possible aspect. A personalized app will allow consumers to

scan a bar code and find food facts and price. With this app, consumers can check the availability

of items and the approximate restock time. They can also check how busy the store is and

approximate line wait times. In the case that a customer has suggestions to improve our stores,

the app provides a feedback section where consumers can directly communication with Hax. In

store, Hax will have price and location check screens. These kiosks are large touch screens

where customers can select the product they want and find the exact location, down to the shelf

number. This service will allow consumers to quickly find what they are looking for without

going aisle to aisle. The store will also be filled with tablets in every other aisle where consumers

can swipe their Hax member card and find any applicable coupons. They can send these coupons

to their phone or print them out to use them immediately. The cashiers at Hax will be primarily

automatic with some available human cashiers.

MissionStatement: Our philosophy for customer satisfaction centers on responsibility, honesty, concern, and

action. Hax aims to deliver an exceptional shopping experience by prioritizing our customers.

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We have a responsibility to provide a clean environment, friendly service, and quality products

in order for customers to enjoy their shopping experience. Our determination for customer

satisfaction is not simply based on selling products, but on building meaningful relationships and

connecting with our customers. We aim to build connections with local sources and always

disclose this information. We believe consumers have the right to know where their food is

coming from. Hax is dedicated to our community. For this reason, we are dedicated to giving

back to our community by participating in local volunteering events and organizing drives at our

stores. Our care for our customers and community is the driving force that allows our company

to function.

VisionStatement:

For the next six months Hax plans to strengthen its operations as a grocery store and

build brand awareness. We want to strengthen relationships with customers and suppliers.

Focusing our efforts on building a relationship with customers will increase customer retention

and allow us to create a connection with customers. Our branding will include an online

presence. Hax plans to connect with consumers through the Hax smartphone app and social

media. Management will be present daily throughout the week in order to make sure customers

are satisfied. We want to strengthen relationships with suppliers and build long term contracts in

order to pass on the lowest prices possible for customers. Our modern styled store will allow

give consumers a transformed and positive shopping experience. Over the next two years, as the

success of Hax increases we want to create at least two new Hax stores in the East Bay Area.

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HAXSWOTANALYSIS:

Strengths:

Hax has the competitive advantage of differentiation. The interior design of Hax is

specialized to attract targeted consumers. The interior design will allow consumers to feel

transported as soon as they step foot into the store. Technology will be widely present throughout

the store in order to provide consumers a fast and easy experience. According to The Business of

Retail, a survey conducted on millennials found that “two-thirds (67%) of all respondents said

that self-service kiosks are convenient.” This presents a growing demand for automated

cashiers in grocery stores. Hax will not only include automated cash registers, but also other

forms of technology. Hax will offer a smartphone app, which will allow consumers the ability

to scan any products with the store. By scanning the bar code, consumers will be presented

with a wide array of product facts. These facts include price, nutrition, and sourcing

information. In order to provide an easy shopping experience consumers will be able to locate

any item they are looking for with the app. If consumers do not have the app, kiosks will be

located throughout the store where consumers can place product availability and exact

location. Hax also offers a customer loyalty program. This program will allow the consumer

to accumulate points with every purchase. Additionally, they will be provided with coupons

and discounts. These strategies aim to increase customer retention.

Weaknesses:

Entering a new market is always risky. A major weakness for Hax is its newness as a

grocery store. With a wide array of competing grocery stores, Hax must differentiate itself from

them. Another weakness is Hax’s limited brand awareness. Due to the fact that Hax is an

emerging grocery store, many consumers are unaware of their operations. The overwhelming

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presence of technology throughout the store can prove to be a risk. There is a possibility that the

technology can malfunction once in a while, which presents a risk.

Opportunities:

Hax has the opportunity to participate in the online grocery delivery business. Online

grocery delivery is an increasing market, which shows potential for Hax. In the future, Hax can

begin national expansion through online operations. Online operations will include e-commerce

stores, similar to Amazon. The possibilities of increasing technological innovation provide Hax

the opportunity to incorporate new technology. Upon successful operations, Hax can participate

in research and development for new grocery store technologies. As a grocery store, Hax has the

opportunity to create its own private label brand. The private label brand will allow Hax to

provide low prices for consumers.

Threats: Low barriers to enter into the grocery industry affect the operations of Hax. Low barriers

to enter mean increased competition. This increased competition will threaten the future of Hax.

Apart from emerging stores, Hax also competes with major superstores such as Wal-Mart,

Safeway, and Wholefoods. Wal-Mart offers extremely low prices, which will influence the way

Hax prices its food. Safeway and Wholefoods present a threat regarding the selection of organic

food presence. The lack of clarity in government regulations regarding foreign direct investments

will threaten the future expansion of Hax.

HAXTARGETMARKET Our store will serve the needs of male and female consumers from the ages of 20-35. Our

store will cater to different type of consumer food needs. Hax offers a wide variety of food

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selection, including vegan, non-GMO, and gluten free. Our target market includes college

students, for this reason we offer coupons specifically for them. In order to make fresh food

available for anyone we will offer coupons available to the general public. Similarly, we will

offer daily sales to consumers.

HAXFOURP’S:

Product

Hax is an emerging store from the Bay Area. We are an innovative grocery store aimed to

mesh technology and grocery shopping. We believe we have created the modern store of the

future. Our store is aimed to attract consumers how love consumers and are bored of the

traditional super stores.

Place

Hax will be located in the Bay Area, specifically San Leandro, California. The prime

location for Hax is shopping centers. Positioning Hax in shopping centers will increase foot

traffic into stores. Once Hax is established and loved by the public, Hax plans to locate near

neighborhoods rather than large shopping centers.

Price

Hax will provide daily coupons, which will be available in the electronic kiosks. In order

to excite consumers we will have pop-up coupons and deals, which will last a limited time

(hours). Hax aims to price quality products at a fair and reasonable price. Hax stores will accept

cash, credit, and debt cards.

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Promotion

In order to advertise Hax plans to create their official Twitter and Facebook page. We

know that our target market is extremely active on social media. Thus, having a social media

presence will strengthen the Hax brand. We also plan to advertise through popular FM radio

stations and radio apps such as Spotifiy, Pandora. In these radio commercials we will advertise

our location, food selection, and grand opening date. In order to increase presence in the grand

opening, Hax will offer the first 50 shoppers a $15 gift card for Hax. Once doors open, we will

advertise daily sales on our Twitter and Facebook. Additionally, due to the differentiation of our

store we also plan on advertising through word of mouth.

Ochoa22

WORKSCITED

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