In April 2003. James Ellis. the president of superior supermarket was about to run into with the District Manager that manage the three supermarkets in Centralia Missouri. He mentions that the higher monetary values in Centralia and the turning monetary value consciousness among the local shopper. They are presently confronting the hazard of losing market portion from supermarkets in Centralia. Specifically. he was asked to implement Everyday Low Pricing for all merchandise categories across-the-board or merely on certain classs.
In Centralia Missouri. there are entire population of 41. 000 and about 13. 500 families. The average age of population is 35 and their average income per family is $ 36. 000. More than 80 % of the population has high school instruction or more. Centralia recorded a entire retail gross revenues of $ 725 million and nutrient and drink retail shop gross revenues of 62. 3 million in 2002.
There are four food market concatenation shops which dominate the market of nutrient gross revenues in Centralia Missouri. Harrison’s. Grand American. Missouri Mart and Superior Supermarkets. Each supermarket serves a different function and has their ain company image toward the shopper in Centralia. The superior supermarkets owned three locations in Centralia. The gross net income border is 28. 8 % which is over mean by 2. 4 % . Each location have a shopper centre which dwelling of a apothecary’s shop and two or three store such as dry cleansing agent. shoe fix store. barber store or a florist. They carry high quality general ware and fresh merchandise to pull clients. Superior supermarket besides offer profoundly price reduction monetary values in high volume points and characteristics “Loss leaders” which is points sold to the client at or near their cost to the marketer.
Around 20-23 % of clients purchasing from two locations are out of Centralia. The STP Strategy for superior supermarkets targeted the age of 35-49 old ages old. Most of them shop two times a hebdomad in superior supermarket and holding a backing of 3 old ages or more. They consider the loyal clients which besides shop in the other supermarkets at the same clip. About half of them purchased their nutrient demand in Superior and the most popular class in the supermarket is grocery and day-to-day merchandises. We did a SWOT analysis for superior supermarkets. For Strength. they offered high quality ware and fresh merchandises.
The three locations increased the shopping convenient for clients within Centralia. They have over 25 old ages of experience runing the supermarket. In terminal of 2002. they are ranking figure two in entire market portion. For failing. the superior supermarkets are holding a higher pricing comparison to the norm. They offered merely limited assortment of ware which might non fulfill all clients. Compare to other supermarkets. higher-ups have a low advertizement investing. The shop sizes are smaller comparing to other supermarkets which will restrict the merchandise capacity. Superior supermarket besides deficiency of client image because of their higher pricing and lower meat quality.
For chances. Superior supermarket could spread out their choice of merchandise which could fulfill more clients. They could offer competitory pricing and pull more clients to the shop. They should reconstruct their shop to derive client image toward the company. In the interim. offering sole merchandise and alter their advertisement scheme could besides assist to trade name their client image and drive more traffic to the shop.
For menaces. they might be put on the lining the loss of market portion which will drop to a lower rank. Customer might reject and dislike the new image of the shop since most of them are loyal client for more than 3 old ages. They might be put on the lining losing current client and exchanging to buy from a different supermarket alternatively. There will be a higher cost or excess disbursal if they want to spread out their choice of merchandises. At last. there might be new rivals enter the market and drive some clients off from Superior Supermarket.