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Growing Market Share While Staying True NGA 2013 Presented By:Ryan Dach, Jacob Luna, Lindsey Maresh, and Jarrod Taylor Saracen Consulting Company.

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Presentation on theme: "Growing Market Share While Staying True NGA 2013 Presented By:Ryan Dach, Jacob Luna, Lindsey Maresh, and Jarrod Taylor Saracen Consulting Company."— Presentation transcript:

1 Growing Market Share While Staying True NGA 2013 Presented By:Ryan Dach, Jacob Luna, Lindsey Maresh, and Jarrod Taylor Saracen Consulting Company

2 The Question Posed… Chief Super Market, Inc. (Defiance, Ohio) a twelve store independent ….exists to delight customers with great food and experiences." The company would like the students to use their imagination to determine what the company should do to fulfill the mission and grow market share.

3 Chief Super Market Mission Statement: To treat all parties involved in our business… fairly, honestly, and with respect for their contribution to the success of the company…

4 Store Information Store TypeLocationSq. Ft. Chief SupermarketCelina, OH22,600 Chief SupermarketColdwater, OH20,745 Chief SupermarketDefiance, OH31,000 Chief SupermarketBryan, OH30,000 Chief SupermarketWauseon, OH32,700 Chief SupermarketPaulding, OH15,200 Chief SupermarketDelphos, OH24,000 Chief SupermarketNapoleon, OH31,000 Rays MarketLima, OH31,240 Rays NorthlandLima, OH24,000 Rays EastgateLima, OH52,000 Rays Clocktower PlazaLima, OH40,000

5 Grocery Industry Market Forces Industry Competition Location of Stores Consumer Behaviors Consumer Disposable Income Demand Fluctuation

6 Industry Rivalry – Existing Competition Competition within the Industry: CR 10 = 69% in 2010 Dominated by multiunit and Regional Supermarket chains Within N.W. Ohio: Stagnated population in area Market Saturated with competition

7 Industry Rivalry - Stagnated Market Negative to flat population growth in N.W. Ohio Stores located in Counties: Bryan, OH: -3.9% Lima, and Delphos, OH: -2.0% Defiance, OH:-1.2% Celina and Coldwater, OH: -0.3%

8 Industry Rivalry - Saturated Market Defiance, OH Lima, OH

9 Industry Rivalry – New Competition Threat of Substitutes: Substitutes for Grocery stores are growing More are carrying essential goods Threat of New Entrants: Corner Stores and Dollar General repositioning Whole Foods type stores entering the area

10 Industry Force - Consumer Behavior Consumers have increasing number of options Many stores trying to carry more convenience offerings to cater to consumers Pharmacy Banking Gasoline Oven-ready Prepared Foods

11 Bill and Marge (50+) Spend an average of 40 minutes in store Very brand loyal Spend 50% of income on food Pick and choose products based on individual lifestyle Dominate food spending

12 Experienced Kyle and Hannah (35-50) Spend an average of 40 minutes in store Value price over convenience Value product information Focused on feeding families Educated

13 Young Kyle and Hannah (20-35) Spend an average of 43 minutes in store Only buy 41% of food at traditional store Need instant access and convenience Natural, organic and flavor mean a lot Prefer deals over brands

14 BCG Matrix Relative Market Share Industry Growth Rate 2%2% 1

15 SWOT Strengths Sales Promotions/PR Product Variety High Quality fresh and prepared foods Good In-store Customer Service

16

17 SWOT Strengths Sales Promotions/PR Product Variety High Quality fresh and prepared foods Good In-store Customer Service Weaknesses Low total value image Perception of high price Perception of lack of vegetable variety Scarce Firm Resources compared to competitors

18 SWOT Opportunities Growth of Small Format stores Changing Shopper trends Recession Mindset Repositioning stores as wellness and nutrition Expansion of fresh food departments Threats Increasing competition Rising Costs More Rivalry Mature Industry

19 The Problem Chief is not the first choice in most items. Not the first choice for most consumers. Bill and Marge (50 & Up) are the most frequent shoppers. Chiefs is not the first choice among Kyle and Hannah (20-50)

20 Solution Not a One Size Fits All problem This has become a question of marketing and the solution lies within the four Ps of marketing. We are offering solutions based on price, promotion, and product In each of these sectors we have broke it down into tactics implemented in the short term, mid-term, and long term

21 Strategy and Tactics

22 Strategy Statement

23 Current Strategies High Quality Food Great Experience Community Involvement

24 Strategy Statement

25 Store of Experiences Social Hometown WholesomeFun

26 Market Development Experience Short Term Medium TermLong Term Adult Beverage Tasting

27 Short Term Appeals to men and women Beer Around the World Held every other month Ladies Night Wine Tasting Estimate 30 participants Adult Beverage Tasting

28 Market Development Experience Short Term Medium TermLong Term Adult Beverage Tasting Cooking Events

29 Medium Term Annual BBQ Cook- off Chief is already well known for its quality meat. Attract new consumers Bi-monthly Cooking Classes Engage community with fun classes Increase basket size and trial use Cooking Events

30 Market Development Experience Short Term Medium TermLong Term Adult Beverage Tasting Cooking EventsContest Rewards

31 Long Term Revamp the current loyalty program Use for data collection to better serve customers Can be used in cooperation with other tactics Contest Rewards Cards

32 Change Image for Young Kyle and Hannah Through Contests Short Term Medium TermLong Term Plinko

33 Short Term New spin on a classic game Held once a quarter Customers gain one chip for every $100 spent Eligible for an extra chip with use of loyalty card Prizes range from a free cookie to Dinner for Two Plinko

34 Market Development Contest Short Term Medium TermLong Term Plinko Supermarket Sweep

35 Long Term Annual contest Contestants drawn on a raffle system One entry for every $150 spent Places 1 st -3 rd awarded with store credit Acts as a large draw for surrounding communities Supermarket Sweep

36 Financials Column1Adult Beverage TastingCooking Events"Plinko""Supermarket Sweep" Expected Gross Income$960$1,500$2,000$2500 Expenses Inventory Products$275.00$0$1,600$1,313 Promotions$200 $300 Event Supplies$85$200 $500 Site Rental$0$600$0 Employee Time$95$126$0$252 Total Event Expense$655.00$1,126.00$2,000.00$2, Net Income$305$374$0$ ROI47%33%0%5.7%

37 Strategy Statement Store of Experiences Social Hometown WholesomeFun Convenient Differentiated

38 Market Penetration Products Short Term Medium TermLong Term Meals-to-go

39 Market Penetration- Products Take me home tonight Meals prepared for pickup Made fresh Meals-to-go

40 Market Penetration- Products Short Term Medium TermLong Term Tent Sales Meals-to-go

41 Market Penetration- Products Seasonal items Draw attention Tent Sales

42 Market Development- Products Short Term Medium TermLong Term Student Discount Soup & Sandwich Bar

43 Offered four times a year Statewide Increase college-age foot traffic Student Discount Market Development- Products

44 In store Hot & fresh Convenient meal Soup & Sandwich Bar Market Development- Products

45 Short Term Medium TermLong Term Student Discount Dinner for Two Soup & Sandwich Bar

46 Market Development- Products Meals prepared for couples Date night Dinner for Two

47 Market Development- Products Short Term Medium TermLong Term Student Discount Dinner for TwoOnline Shopping Food Truck Soup & Sandwich Bar

48 Market Development- Products Ultimate convenience Busy lifestyles Parents with kids Not much competition in this area Implement within months Online Shopping

49 Market Development- Products Mobile hot spot Lunch for people on the go Moving billboard Gain exposure Implement within the next 2-3 years Food Truck

50 Financials Column1Meals to go Tent sales Student Discount Soup barDinner for two Online shopping Food truck Expected Gross Income $12,480.00$12, $518, $18, $65, $130, $36, Expenses COGS $7, $ 5, $461, $10, $46, $114, $ 22, Equipment $1, $ 3, $ - $2, $ - $60, Promotion $ $ $6, $ $1, $1, $5, Employee Time $1, $ 1, $ 4, $ 1, $3, $5, $6, Event Profit $3, $ 4, $46, $6, $13, $ 8,212.50$ 2, ROI 37.58% 38.3%9.76%43.97%27%6.74% 2.36% ROI -Program 132% 76.2%3754%169%319%111% 3%

51 Conclusion

52 Questions?

53 Sam Houston State University Located in Huntsville, Texas Ag-IT Department Over 1,000 Major Students Degrees offered: Ag-business Animal Science Horticulture Ag-education


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