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SUPERIOR SUPERIOR SUPERMARKETSUPERMARKET
By: Derrick Chen, Stephanie By: Derrick Chen, Stephanie Gomez, Keisha Jemmott and Gomez, Keisha Jemmott and
Samantha MorrisSamantha Morris
PROBLEMPROBLEM
Lack of strong consumer imageLack of strong consumer image
CommunicationCommunication
Pricing strategyPricing strategy
S.W.O.TS.W.O.TAnalysisAnalysis
STRENGTHSSTRENGTHS
Over 30 years of experienceOver 30 years of experience Higher quality of productsHigher quality of products Best shopping convenienceBest shopping convenience More stores in operation More stores in operation Exceptional Customer serviceExceptional Customer service
WEAKNESSESWEAKNESSES
High prices compare to competitorHigh prices compare to competitor Geographical areaGeographical area Limited selection offeredLimited selection offered Store appearance (Cleanliness)Store appearance (Cleanliness) Lack of consumer imageLack of consumer image
OPPORTUNITIESOPPORTUNITIES
Store expansionStore expansion Change displayChange display Use of market research informationUse of market research information Improve pricing strategyImprove pricing strategy ““Superior”Superior”
THREATSTHREATS
Market share lossMarket share loss Loss of current customersLoss of current customers Competitors in prime retail spotsCompetitors in prime retail spots
Organizational ObjectivesOrganizational Objectives
Increase annual Profits by 12%Increase annual Profits by 12% Increase market share to 27% within 2 Increase market share to 27% within 2
yearsyears Increase profit margins by 5%Increase profit margins by 5% Reduce Operating Costs by 12%Reduce Operating Costs by 12% Decrease debt-to-assets ratio to under Decrease debt-to-assets ratio to under
$0.15$0.15 Expand Company OperationsExpand Company Operations RecognitionRecognition
ALTERNATIVESALTERNATIVES
Alternative 1Alternative 1
Implementation of an “EVERY DAY Implementation of an “EVERY DAY LOW PRICING STRATEGY”. LOW PRICING STRATEGY”.
PROSPROS
Low operating costsLow operating costs Low inventory handling costsLow inventory handling costs GPM increaseGPM increase Possible market share increasePossible market share increase Pricing strategyPricing strategy
CONSCONS
Image changeImage change Pricing StrategyPricing Strategy Direct CompetitionDirect Competition Quality concernQuality concern Loss of market share?Loss of market share?
Alternative 2Alternative 2
Create a favourable store image Create a favourable store image among consumers among consumers
PROSPROS
Brand awarenessBrand awareness Neighbourhood imageNeighbourhood image Attracting new customers and Attracting new customers and
satisfying current onessatisfying current ones
CONSCONS
Increased AdvertisingIncreased Advertising Reject new imageReject new image
Alternative 3Alternative 3
Maintain current pricing strategy and Maintain current pricing strategy and expand services and products expand services and products
PROSPROS
Increase convenienceIncrease convenience Increase Brand AwarenessIncrease Brand Awareness Increase profitsIncrease profits Delivery costsDelivery costs
CONSCONS
ExpensiveExpensive Store too smallStore too small
Analysis of AlternativesAnalysis of Alternatives
http://learn.senecac.on.ca/~tegomez/alternathttp://learn.senecac.on.ca/~tegomez/alternatives.htmlives.html
RECOMMENDATIONRECOMMENDATION
Alternative 3Alternative 3
TARGET MARKETTARGET MARKET
Centralia Population ProfileCentralia Population Profile
39.6% make $35,000-$74,99939.6% make $35,000-$74,999 Largest age group19 and underLargest age group19 and under
Core User:Core User: Individuals aged 25-54Individuals aged 25-54
Break DownBreak Down
Young Adults:Young Adults: 16-25 years16-25 years Students and Students and
Young Young ProfessionalsProfessionals
Live at home or Live at home or share living share living accommodationsaccommodations
Professionals:Professionals: 26-54 years26-54 years Average Income-Average Income-
$40,000+$40,000+ Time and Time and
convenience convenience concernsconcerns
Marketing MixMarketing Mix
PricePrice Same pricing strategySame pricing strategy
PromotionPromotion Print mediaPrint media Broadcast mediaBroadcast media In-Store promotionIn-Store promotion
PlacePlace Same store locationSame store location
ServiceService Improve service by Improve service by
adding a bakery and adding a bakery and a delia deli
MAPMAP
Pro Forma for Superior Pro Forma for Superior Supermarkets: OptimisticSupermarkets: Optimistic
http://learn.senecac.on.ca/~sjmorri1/prhttp://learn.senecac.on.ca/~sjmorri1/proforma.htmloforma.html
Implementation planImplementation planYear One, Quarter OneYear One, Quarter One Develop Pricing and Develop Pricing and
Marketing strategies and Marketing strategies and plans. plans. 8 weeks8 weeks
Send Marketing and Strategy Send Marketing and Strategy plans for approval. plans for approval.
2 weeks2 weeks Develop Information and Develop Information and
Training sessions for Training sessions for Management Staff Management Staff
4 weeks4 weeks Conduct Information and Conduct Information and
Training SessionsTraining Sessions 2 weeks2 weeks
Year One, Quarter TwoYear One, Quarter Two Develop expansion Develop expansion
objectivesobjectives 2 weeks2 weeks
Develop Expansion BudgetDevelop Expansion Budget 4 weeks4 weeks
Locate and negotiate with Locate and negotiate with a Contracting company to a Contracting company to do the renovationdo the renovation
2 weeks2 weeks
Year One, Quarter ThreeYear One, Quarter Three Development of Development of
Advertising Campaigns Advertising Campaigns and In-Store and In-Store PromotionsPromotions
10 weeks10 weeks Advertising campaigns Advertising campaigns
subject to approvalsubject to approval
2 weeks2 weeks Final Negotiations with Final Negotiations with
the contracting the contracting companycompany
2 weeks2 weeks
Year One, Quarter FourYear One, Quarter Four Store Closures, 3 Store Closures, 3
weeks for each store, weeks for each store, at alternating timesat alternating times
9 weeks9 weeks Advertising (print Advertising (print
media, radio and media, radio and television) should television) should coincide with store coincide with store closuresclosures
Grand Re-opening of Grand Re-opening of newly renovated newly renovated storesstores*Process to be completed in 1 full fiscal year
THANK YOU!!!THANK YOU!!!