CASE ANALYSIS #1

Wegmans Food Market

Group 1 (BSA 3201)

Alido, Jessica _________________
Bautista, Shirley H. _________________
Como, Shandy G. _________________
Evangelista, Clariz B. _________________
Garcia, Gian Pauline _________________
Gonzales, Realyn _________________
Ilagan, Kevin Allen _________________
Marquez, Mayette R. _________________
Pablo, Daniel Ezra M. _________________
Zaraspe, Glaiza I. _________________

I. Point of View The group will use the point of view of a marketing strategist.

II. Time Frame The case happened during the maturity of Wegmans Food Market.

III. SWOT Analysis

 Strengths
1. The company operates over 70 stores in Rochester, Buffalo, Syracuse, New York State, New Jersey, Pennsylvania and Virginia.
2. The company employs over 37,000 people and has annual sales of over $3 billion.
3. Wegmans has a strong reputation for offering its customer high product quality and excellent service.
4. Each store has various special features offering different products and services.
5. The company prides itself on fresh produce in which it uses the “farm to market” system thus reducing the company’s inventory holding costs and getting the produce into the stores as quickly as possible.
6. Many stores have a full-service butcher shop offering a variety of fresh meat products with highly-trained employees that instills a “selling culture”.
7. Wegmans continually analyzes store operations to improve processes.
8. Each department handles its own ordering.
9. The company exercises strict control over supplies, insisting on product quality and on-time deliveries.
10. Wegmans uses a companywide system to keep track of inventory.
11. The company recognizes the value of good employees having only about 6% employee turnover as against the industry average of 20%.
12. Quality and customer satisfaction are utmost in the minds of Wegmans management and its employees.
13. Wegmans continues to adopt new technologies to maintain its competitive edge.

 Weaknesses
1. The management and supervision of all the 70+ stores might be difficult.
2. Many of the company’s stores are giant 100,000-square foot superstores which could have a negative bearing to customers due to the large shopping area.
3. Customers often wander among stations as they decide what to order.
4. Meat department employees often spent 75% of their time talking with customers.

 Opportunities
1. Wegmans may add branches to other potential locations since it has stable financial condition.
2. The company may expand the products and services it offers.
3. The company’s operation and control systems may still get improvements as it becomes accustomed with the advanced world generation.
4. The company’s private-label food items as well as brand name have the potential to grow due to the increasing rate of demand.

 Threats
1. The competition level, especially in the US, is very tough in terms of the quality of products and services and their respective prices.
2. Economic downturn may affect the customers’ ability to shop.
3. Inflation rates might get higher which may cause the prices to increase.
4. Some customers might prefer the average-sized stores than the large ones to shop on.

IV. Statement of the Problem How to strengthen the relationship between Wegmans Food Market and its customers to boost customer satisfaction and loyalty?

V. Formulation of Alternatives

A. Revise the way customer service is rendered to make it more efficient.
Advantages:
1. Quick response to the customers’ queries.
2. Increase employees’ self-worth as they will be trained to work with lesser time and effort consumed.
3. Customers will be delighted with the excellent service.
Disadvantages:
1. High cost for training.
2. Time-consuming.

B. Design cheaper ways of preparing the company food products through investing on more advanced machineries.
Advantages:
1. The company will achieve the competitive price for the products.
2. This may lessen the operating costs.
3. There would be a decrease in the occurrence of human error.
Disadvantages:
1. There is a possibility for layoff due to preference on machineries.
2. This requires for additional working capital.

C. Develop new functional recreational facilities (benches, wifi zone, proper signage & direction) and offer additional services (free parking, carwash) and privileges (membership cards, gift vouchers).
Advantages:
1. It will enable the customers to shop conveniently and comfortably.
2. It will give the customer a great shopping experience.
3. Delighted customers can create a lot of customers for the store by the sheer word of the mouth.
Disadvantages:
1. It requires additional cost.
2. Time-consuming.

D. Put up additional branches in accessible areas.
Advantages:
1. More customers can be reached.
2. Store growth.
3. The branches will contribute to the company’s sales.
Disadvantages:
1. Additional investment.
2. There are time constraints.
3. It will be risky.

E. Develop promotional campaigns.
Advantages:
1. This might attract more customers.
2. Increase the company’s publicity.
3. The company will gain an edge against its competitors.
Disadvantages:
1. It will be costly.
2. No assurance that it will cover most of the public.

VI. Recommendation/Conclusion As marketing strategist, the group recommends that Wegmans Food Market choose Alternative C, that is, to develop new functional recreational facilities and offer additional services and privileges.

VII. Implementation Plan

1. Make a survey with regards to the facilities to be established.
2. Discuss with the management the result of the survey and ask for approval.
3. Consult to the finance department for the appropriation of funds.
4. Engage with the companies that will establish the needed facilities.
5. Hire additional crew who will render the services.
6. Create a system for the issuance of the privileges.
7. Get the feedbacks of the customers concerning the added facilities, services and privileges.

VIII. Contingency Plan In case Alternative C will not be successful, the group recommends Alternative A.