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

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Presentation on theme: "SUPERIOR SUPERMARKET By: Derrick Chen, Stephanie Gomez, Keisha Jemmott and Samantha Morris."— Presentation transcript:

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

2 PROBLEM Lack of strong consumer image Lack of strong consumer image Communication Communication Pricing strategy Pricing strategy

3 S.W.O.T Analysis

4 STRENGTHS Over 30 years of experience Over 30 years of experience Higher quality of products Higher quality of products Best shopping convenience Best shopping convenience More stores in operation More stores in operation Exceptional Customer service Exceptional Customer service

5 WEAKNESSES High prices compare to competitor High prices compare to competitor Geographical area Geographical area Limited selection offered Limited selection offered Store appearance (Cleanliness) Store appearance (Cleanliness) Lack of consumer image Lack of consumer image

6 OPPORTUNITIES Store expansion Store expansion Change display Change display Use of market research information Use of market research information Improve pricing strategy Improve pricing strategy Superior Superior

7 THREATS Market share loss Market share loss Loss of current customers Loss of current customers Competitors in prime retail spots Competitors in prime retail spots

8 Organizational Objectives Increase annual Profits by 12% Increase annual Profits by 12% Increase market share to 27% within 2 years Increase market share to 27% within 2 years 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 $0.15 Decrease debt-to-assets ratio to under $0.15 Expand Company Operations Expand Company Operations Recognition Recognition

9 ALTERNATIVES

10 Alternative 1 Implementation of an EVERY DAY LOW PRICING STRATEGY.

11 PROS Low operating costs Low operating costs Low inventory handling costs Low inventory handling costs GPM increase GPM increase Possible market share increase Possible market share increase Pricing strategy Pricing strategy

12 CONS Image change Image change Pricing Strategy Pricing Strategy Direct Competition Direct Competition Quality concern Quality concern Loss of market share? Loss of market share?

13 Alternative 2 Create a favourable store image among consumers

14 PROS Brand awareness Brand awareness Neighbourhood image Neighbourhood image Attracting new customers and satisfying current ones Attracting new customers and satisfying current ones

15 CONS Increased Advertising Increased Advertising Reject new image Reject new image

16 Alternative 3 Maintain current pricing strategy and expand services and products

17 PROS Increase convenience Increase convenience Increase Brand Awareness Increase Brand Awareness Increase profits Increase profits Delivery costs Delivery costs

18 CONS Expensive Expensive Store too small Store too small

19 Analysis of Alternatives http://learn.senecac.on.ca/~tegomez/alternat ives.html http://learn.senecac.on.ca/~tegomez/alternat ives.html

20 RECOMMENDATION

21 Alternative 3

22 TARGET MARKET

23 Centralia Population Profile 39.6% make $35,000-$74,999 39.6% make $35,000-$74,999 Largest age group19 and under Largest age group19 and under Core User: Individuals aged 25-54 Individuals aged 25-54

24 Break Down Young Adults: 16-25 years 16-25 years Students and Young Professionals Students and Young Professionals Live at home or share living accommodations Live at home or share living accommodationsProfessionals: 26-54 years 26-54 years Average Income- $40,000+ Average Income- $40,000+ Time and convenience concerns Time and convenience concerns

25 Marketing Mix Price Same pricing strategy Same pricing strategyPromotion Print media Print media Broadcast media Broadcast media In-Store promotion In-Store promotionPlace Same store location Same store locationService Improve service by adding a bakery and a deli Improve service by adding a bakery and a deli

26 MAP

27 Pro Forma for Superior Supermarkets: Optimistic http://learn.senecac.on.ca/~sjmorri1/prof orma.html http://learn.senecac.on.ca/~sjmorri1/prof orma.html

28 Implementation plan Year One, Quarter One Develop Pricing and Marketing strategies and plans. Develop Pricing and Marketing strategies and plans. 8 weeks 8 weeks Send Marketing and Strategy plans for approval. Send Marketing and Strategy plans for approval. 2 weeks 2 weeks Develop Information and Training sessions for Management Staff Develop Information and Training sessions for Management Staff 4 weeks 4 weeks Conduct Information and Training Sessions Conduct Information and Training Sessions 2 weeks 2 weeks Year One, Quarter Two Develop expansion objectives Develop expansion objectives 2 weeks 2 weeks Develop Expansion Budget Develop Expansion Budget 4 weeks 4 weeks Locate and negotiate with a Contracting company to do the renovation Locate and negotiate with a Contracting company to do the renovation 2 weeks 2 weeks

29 Year One, Quarter Three Development of Advertising Campaigns and In-Store Promotions Development of Advertising Campaigns and In-Store Promotions 10 weeks 10 weeks Advertising campaigns subject to approval Advertising campaigns subject to approval 2 weeks 2 weeks Final Negotiations with the contracting company Final Negotiations with the contracting company 2 weeks 2 weeks Year One, Quarter Four Store Closures, 3 weeks for each store, at alternating times Store Closures, 3 weeks for each store, at alternating times 9 weeks 9 weeks Advertising (print media, radio and television) should coincide with store closures Advertising (print media, radio and television) should coincide with store closures Grand Re-opening of newly renovated stores Grand Re-opening of newly renovated stores * Process to be completed in 1 full fiscal year

30 THANK YOU!!!


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