Tacting for gaining Market Share

Report
Growing Market Share
While Staying True
NGA 2013
Saracen Consulting
Company
Presented By: Ryan Dach, Jacob Luna,
Lindsey Maresh, and Jarrod Taylor
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.
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…”
Store Information
Store Type
Location
Sq. Ft.
Chief Supermarket
Celina, OH
22,600
Chief Supermarket
Coldwater, OH
20,745
Chief Supermarket
Defiance, OH
31,000
Chief Supermarket
Bryan, OH
30,000
Chief Supermarket
Wauseon, OH
32,700
Chief Supermarket
Paulding, OH
15,200
Chief Supermarket
Delphos, OH
24,000
Chief Supermarket
Napoleon, OH
31,000
Rays Market
Lima, OH
31,240
Rays Northland
Lima, OH
24,000
Rays Eastgate
Lima, OH
52,000
Rays Clocktower Plaza
Lima, OH
40,000
Grocery Industry Market Forces
Location of
Stores
Demand
Fluctuation
Industry
Competition
Consumer
Disposable
Income
Consumer
Behaviors
Industry Rivalry – Existing Competition
 Competition

within the Industry:

CR10 = 69% in 2010

Dominated by multiunit and Regional
Supermarket chains
Within N.W. Ohio:

Stagnated population in area

Market Saturated with competition
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%
Industry Rivalry - Saturated Market

Defiance, OH

Lima, OH
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
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
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
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
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
BCG Matrix
Industry Growth Rate
Relative Market Share
2
%
1
SWOT

Strengths

Sales Promotions/PR

Product Variety

High Quality fresh and prepared foods

Good In-store Customer Service
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

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
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)
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
Strategy and Tactics
Strategy Statement
Current Strategies

High Quality Food

Great Experience

Community
Involvement
Strategy Statement
Strategy Statement
Hometown
Social
Wholesome
Fun
Store of Experiences
Market Development
Experience
Short Term
Adult Beverage Tasting
Medium Term
Long Term
Short Term

Adult Beverage Tasting

Appeals to men
and women

Beer Around the
World

Held every other
month

“Ladies Night”
Wine Tasting
Estimate 30
participants
Market Development
Experience
Short Term
Medium Term
Adult Beverage Tasting
Cooking Events
Long Term
Medium Term

Annual BBQ Cookoff

Chief is already
well known for it’s
quality meat.

Attract new
consumers
Cooking Events

Bi-monthly Cooking
Classes

Engage community
with fun classes

Increase basket
size and trial use
Market Development
Experience
Short Term
Medium Term
Long Term
Adult Beverage Tasting
Cooking Events
Contest Rewards
Long Term

Contest Rewards Cards
Revamp the
current loyalty
program

Use for data
collection to
better serve
customers

Can be used in
cooperation with
other tactics
Change Image for Young Kyle
and Hannah Through Contests
Short Term
“Plinko”
Medium Term
Long Term
Short Term
New spin on a
classic game
 Held once a quarter
 Customers gain one
chip for every $100
spent

“Plinko”


Eligible for an
extra chip with
use of loyalty card
Prizes range from a
free cookie to
“Dinner for Two”
Market Development Contest
Short Term
Medium Term
Long Term
“Plinko”
“Supermarket Sweep”
Long Term

Annual contest

Contestants drawn
on a raffle system

“Supermarket Sweep”
One entry for
every $150 spent

Places 1st-3rd awarded
with store credit

Acts as a large draw
for surrounding
communities
Financials
Column1
Expected Gross
Income
Adult Beverage Tasting Cooking Events
"Plinko" "Supermarket Sweep"
$960
$1,500
$2,000
$2500
$275.00
$0
$1,600
$1,313
$200
$200
$200
$300
$85
$200
$200
$500
$0
$600
$0
$0
$95
$126
$0
$252
$1,126.00 $2,000.00
$2,364.50
Expenses
Inventory Products
Promotions
Event Supplies
Site Rental
Employee Time
Total Event Expense
$655.00
Net Income
$305
$374
$0
$135.50
ROI
47%
33%
0%
5.7%
Strategy Statement
Hometown
Social
Wholesome
Fun
Differentiated
Store of Experiences
Convenient
Market Penetration Products
Short Term
Meals-to-go
Medium Term
Long Term
Market Penetration- Products

“Take me home tonight”

Meals prepared for
pickup

Made fresh
Meals-to-go
Market Penetration- Products
Short Term
Medium Term
Meals-to-go
Tent Sales
Long Term
Market Penetration- Products
Tent Sales

Seasonal items

Draw attention
Market Development- Products
Short Term
Student Discount
Soup & Sandwich Bar
Medium Term
Long Term
Market Development- Products
Student Discount

Offered four times a
year

Statewide

Increase college-age
foot traffic
Market Development- Products
Soup & Sandwich Bar

In store

Hot & fresh

Convenient meal
Market Development- Products
Short Term
Medium Term
Student Discount
Soup & Sandwich Bar
Dinner for Two
Long Term
Market Development- Products
Dinner for Two

Meals prepared for
couples

Date night
Market Development- Products
Short Term
Medium Term
Long Term
Student Discount
Soup & Sandwich Bar
Dinner for Two
Online Shopping
Food Truck
Market Development- Products
Online Shopping

Ultimate convenience

Busy lifestyles

Parents with kids

Not much competition in
this area

Implement within 12-18
months
Market Development- Products
Food Truck

Mobile hot spot

Lunch for people on the
go

Moving billboard

Gain exposure

Implement within the
next 2-3 years
Financials
Column1
Meals to go
$12,480.00
Expected
Gross Income
Tent sales
$12,000.00
Student
Discount
$518,400.00
Soup bar Dinner for two
$18,200.00 $65,000.00
Online
shopping
$130,000.00
Food truck
$36,000.00
Expenses
COGS
$7,280.00
$ 5,400.00
Equipment
$1,500.00
$ 3,000.00
Promotion
$250.00
$ 750.00
$6,898.56
$500.00
$1,200.00
$1,500.00
$5,000.00
$ 1,695.60
$ 4,019.20
$ 1,130.40
$3,140.00
$5,887.50
$6,280.00
Employee Time $1,130.40
Event Profit
ROI
ROI -Program
$3,819.60
$461,376.00
$
-
$10,400.00
$2,000.00
$46,800.00
$
-
$13,860.00
$114,400.00
$
-
$ 8,212.50
$ 22,500.00
$60,000.00
$ 4,154.40
$46,106.24
$6,169.60
$ 2,220.00
37.58%
38.3%
9.76%
43.97%
27%
6.74%
2.36%
132%
76.2%
3754%
169%
319%
111%
3%
Conclusion
Questions?
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

similar documents