SUPERIOR SUPERMARKET By: Derrick Chen, Stephanie Gomez, Keisha Jemmott and Samantha Morris.

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!!!