Case Study: Dollar General
1. Dollar General is a discount retailer that have proven to be a strong competitor because it offers a small selection of products at lowers prices. This allows customers from different economic backgrounds to afford their products and be a one-stop shop where individuals can pick an item and head to the register- it is convenient for small items. With its limited items and $1.00 pricing strategies, they create a high level of sales while remaining a competitor to industries such as Walmart. Other retailers are stocked heavily with a variety of different products, but the Dollar General has a select stock, usually composing of items such as party supplies.
2. The Dollar General used its own name to differentiate itself, everything being a dollar. This makes consumers aware of their stores because people like low priced convenience items. People want to save money and even when individuals incomes are over $50,000 they are still price conscious. These stores are aimed at individuals who need quick, in and out items at a low rate. They generally target consumers who have lower incomes, but are becoming more common in suburban areas. In my hometown suburban area, we do have a Dollar General so it shows they are targeting different, smaller locations to have stores in. This company selects a variety of convenient but quality brand name items, which differentiates them even more. They want consumers to change their shopping habits and go to stores with lower priced convenient items.
3. Ultimately, the Dollar General saves consumers time and money. They do this by offering convenient items at low prices, as I’ve stated before. This doesn’t mean their products aren’t quality, they do offer quality brands that are priced less than at regular grocery store prices. They even still manage to keep in line with big discount stores, such as