...Hi-Value Supermarkets Major Issue/Problem: Should Hall Consolidated transition to the everyday low pricing strategy in the 3 Hi-Value Supermarkets in the Centralia, Missouri area? Alternative Courses of Action: Alternative One: Implement Everyday Low Pricing with a 5% reduction across ALL product lines Advantages * Prices become more competitive to a price conscientious market * Doesn’t exclude a product line * Not low enough to start a price war * Price is closer to Grand American and Missouri Mart (7% lower currently) * Reduce cost from lower inventory and handling costs * Reduce costs from labor expense from remarking prices Disadvantages * Could damage current image (although it is weak) of offering high-quality merchandise * Requires 20.08% increase in sales volume to break even * Lowers gross profit margin to 26.2% * Additional costs for advertising to promote new pricing concept Quantitative Implications: 5% Price Decrease on ALL Categories | Category | Gross Profit Margin | VC | Price | 5% Decrease | Percentage of Sales | Weight GPM (5%) | Grocery (w/ dairy) | 30% | 70% | $1.00 | 27.42% | 50% | 13.71% | Meat/Poultry/Seafood | 18% | 82% | $1.00 | 14.78% | 20% | 2.96% | Produce | 30% | 70% | $1.00 | 27.42% | 18% | 4.93% | Seasonal & General Merchandise | 33% | 67% | $1.00 | 30.57% | 7% | 2.14% | Deli | 50% | 50% | $1.00 | 48.47% | 5% | 2.42% | | | | | | 100% | 26.2% | Alternative Two:...
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...Hall Consolidated and president of Hi-Value supermarkets, must decide whether to pursue an everyday low pricing (EDLP) strategy at its three Centralia MO locations. After much analysis, I believe that my recommendation would be for Superior stores (Hi-Value) to most definitely adopt this new method. First let’s look into some details about Hi-Value, and their competition: Product: The stores’ products are divided into 5 categories: 1) grocery (including diary); 2) fresh meat/poultry/seafood; 3) produce; 4) seasonal and general merchandise; and 5) bakery and deli. Price: more of a high-end branding strategy. Hi-Value everyday (non-promotional) prices are 10% higher than Harrison and 7 percent higher than Grand American and Missouri Mart. Higher prices have become a competitive concern due to their declining market share in Centralia. The negative growth rate, based on 1998 to 2005 figures from Figure 2, is -0.53%. Place: Three locations (North Fairview, West Main and South Prospect) give a competitive advantage. The VP of Operations even said “we offer greater convenience of shopping with our three stores and that is worth something (implying higher prices)”. Exhibit 6 shows that Hi-Value is ranked “most convenient” by 35%, Promotion: The 2005 advertising budget was 0.89% of sales revenue, or $127,500. Competitors spent an 1% of their sales revenue. If EDLP is adopted, Hi-Value should increase the advertising budget. One of Hi-Values important goals that they wish to...
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...Supermarket Industry Porters 5 Force’s Porter (1980) illustrates in this analytical tool 5 variables that determine the attractiveness of an industry for organisations in terms of profitability in their immediate environment. Using the forces in this model we can analyse how attractive the UK Supermarket industry is to enter, the 5 forces are as follows. The threat of potential new entrants Barriers to entry in the UK supermarket industry relies on the entrants capability of matching capital requirements of existing firms, the UK supermarket industry is dominated by firms known as Tesco, Asda, Sainsbury’s and Morrison’s (Big 4) owing up to 69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total advertising...
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...The customer perceived value of supermarkets: Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives (Kotler, 2003). Customers will buy from the firm that they see as offering the highest perceived value. There are various benefits that a person receives and he sacrifices something in order to achieve that. The first table takes in the interests received and sacrifices made while shopping at supermarkets. Benefits of visiting supermarkets | Sacrifices of visiting Supermarkets | Convenience/Accessibility -Extensive range of products and services-Ample amount of stores present-24x7-Mobile apps, discounts and freebies-Smooth access to pedestrians and vehicles | Monetary-Cost of buying the goods-Cost of going to the supermarket | Monetary -Economical Prices-Coupons and discounts-Saving schemes | Effort -Time taken to travel to the supermarket-Queueing and locating the product | Quality -Large brands have certain quality standards before being imported. -Goods have certain quality standards approved by the ministry | Health-Products may cause a hazard to people while consuming-Stress in queueing-Products might contain harmful contents | Social-Sense of pride while buying branded goods.-Benefits the person’s psychology for shopping at big brands | Social-Psychology of people shopping at cheaper stores | Opportunity-Ease of accessibility-Small...
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... in a demand model for our product, which uses data from 26 supermarkets around the country in the month of April. The following is the regression equation, with the standard errors in the parentheses for the demand of the dinners: The following are the independent variables assumed: * Q = Quantity demanded of 3-pack units * P (in cents) = Price of the product = 500 cents per 3-pack unit * PX (in cents) = Price of leading competitor’s product = 600 cents per 3-pack unit * I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5,500 * A (in dollars) = Monthly advertising expenditures = $10,000 * M = Number of microwave ovens sold in the SMSA in which the supermarkets are located = 5,000 My supervisor wants me to find the elasticity of demand for each independent value, but first we must find out the value of Q, by inserting the values in the demand regression equation as follows: The elastisities are calculated as follows: To determine the implications of each of these independent variable’s elasticity, you must first understand what elasticity in economics implicates. The elasticity of a variable is the degree to which the variable has influence on another variable. The price elasticity of demand shows the relationship between the change in prices and the quantity demanded. Since the value is greater than one the product is considered to be elastic,...
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...Journal of Integrative Agriculture Advanced Online Publication: 2013 Doi: 10.1016/S2095-3119(13)60585-7 Revenue Sharing in Dairy Industry Supply Chain --- A Case Study of Hohhot, China1 QIAN Gui-xia1, 2, ZHANG Yi-pin1, WU Jian-guo2, 3 and PAN Yue-hong4 1 2 3 4 School of Economics & Management, Inner Mongolia University, Hohhot, 100021, P.R. China Sino-US Center for Conservation, Energy and Sustainability Science in Inner Mongolia, Hohhot, 010021, P.R. China School of Life Science & Global Institute of Sustainability, Arizona State University, Tempe, AZ, 85287, USA Agricultural Information Institute of Chinese Academy of Agricultural Sciences, Beijing, 100081, P.R. China Abstract Dairy industry has become an increasingly important enterprise in China as people’s dietary preferences and composition have changed dramatically with rapid economic development in the past several decades. A number of problems, however, exist in China’s relatively young dairy industry, including the imbalanced allocation of profits throughout the dairy supply chain. One of the root causes of the melamine infant powered milk scandal in 2008 was the unfair profit allocation mechanism in dairy supply chain. The revenue sharing contract approach has proven to be effective in generating market shares and total profits. In this study, we apply the three-stage revenue sharing contract model of Giannoccaro and Pontrandolfo (2004) in an analysis of dairy supply chain to explore its problems in profit...
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...Module Assignment One 1.0 Introduction to the assigment - Morrisons The supermarket chain to which this report refers to is ‘Morrisons’; this is considered to be one of the big four supermarket retailers in the country and since its creation in 1899 has grown from strength to strength. Morrisons is a family run empire that first started as an egg and butter merchant in Bradford, as times progressed its first supermarket was opened in 1961 (also in Bradford), throughout the 1970s and 1980s the company diversified into distribution of stock, and in 1999 its 100th year of trading it also opened its 100th store. In 2000 its first store opened in Wales, and in 2004 they branched into Scotland. “The OFT said the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons - had built up their dominance of the food retailing business over the past six years.” , A sign of the times was when the company took over the Safeway’s Group ‘creating the UK’s fourth largest supermarket group’. At present there are more than 360 stores; several factories, distribution centres and head office administrative posts across the country employing over 130,000 staff and welcoming around 10 million shoppers each week; their mission statement is ‘to deliver the very best for less’ . 2.0 A review of the macro environment of Morrisons ‘Macro environment relates to the larger forces that have an impact on society as a whole and not just on one or a few organisations…the company’s macro-environment...
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...com/1355-5855.htm Hedonic shopping motivations, supermarket attributes, and shopper loyalty in transitional markets Evidence from Vietnam Trang T.M. Nguyen Hedonic shopping motivations 227 Received February 2006 Revised July 2006 Accepted August 2006 Vietnam National University, Ho Chi Minh City, Vietnam Tho D. Nguyen and Nigel J. Barrett School of Marketing, University of Technology, Sydney, Australia Abstract Purpose – This study aims to explore the impact of hedonic shopping motivations (HSM) and supermarket attributes (SMA) on shopper loyalty (SLO). Design/methodology/approach – A sample of 608 supermarket shoppers in Ho Chi Minh City, Vietnam was surveyed to test the model. Structural equation modeling was used to analyze the data. Findings – It was found that SMA and HSM had positive effects on SLO. It was also found that the impact of hedonic motivations on SLO was different between the younger and older, as well as lower and higher income groups of customers. However, no such difference was found between female and male shoppers. Research limitations/implications – A major limitation of this study was the use of a sample drawn from one transitional market. Cross-national samples will be a direction for further research. Also, the study focuses on attitudinal loyalty. Behavioral loyalty should be taken into account in future research. Practical implications – The findings suggest that the supermarket managers showed concentrate their positioning...
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...international school of business | The Necessities of Supermarkets | Applied Research | | | | Applied Research Project | Introduction In this contemporary life, people cannot survive without supermarket which is interrelated to the whole thing of people’s lives, such as food and clothing line. A supermarket is a outward appearance of grocery store, a self-service store offering a wide variety of food and household merchandise and organized into departments. The supermarket characteristically comprises meat, fresh produce dairy, baked goods departments, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as household cleaners, pharmacy products and pet supplies. Most supermarkets also sell a variety of other household products that are consumed regularly, like alcohol, medicine, clothes and some stores sell a much wider range of non-food products. A supermarket is larger in size and has a wider selection than a traditional grocery store also selling items typically found in a convenience store but is smaller and more limited in range of merchandise than a hypermarket or big-box store. In this paper we divided supermarkets of the worlds into three categories: * Convenience stores also called corner store, a small store that stocks a range of everyday items such as groceries, toiletries, alcoholic soft drinks and tobacco products. * Regional supermarket, a superstore which is bigger than 3000 square meters...
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... : Author : Assignment Coversheet The Faculty of Business STUDENT INFORMATION STUDENT NO. | | SURNAME | | PHONE NO. | | GIVEN NAMES | | E-MAIL | | Instructions for submission are found in the course description. Assignments with Cover Sheets not signed at the bottom will be returned unmarked and ma y then incur a penalty for late submission. ASSESSMENT INFORMATION COURSE NAME | | COURSE CODE | | ASSIGNMENT DETAILS (title) | | LECTURER / TUTOR’S NAME | | Campus / Provider | | DUE DATE | | SUBMITTED ON | | PLAGIARISM The Faculty and the University regards as a very serious matter the action of a student who acts dishonestly or improperly, including plagiarism or cheating, in connection with his or her academic work. Under University Regulation 6.1.1 “Plagiarism” is defined as “…the presentation of the works of another person / other persons as though they are one's own by failing to properly acknowledge that person / those persons”. Plagiarism may take many forms including: direct copying of sentences, paragraphs or other extracts from someone else’s published work (including on the Internet and in software) without acknowledging the source; paraphrasing someone else’s words without acknowledging the source; using facts, information, ideas, concepts or diagrams derived from a source without acknowledging them; producing assignments which should be the student’s own independent work, in unauthorised collaboration...
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...Central Region of south Ghana. He is married for the past six(6) years with his magnificent wife Christabel with three kids. Gabriel pass through the junior high school and continued his senior high school at Amenfiman senior high school in Western Region of Ghana and did general arts as a course of choice. Mr Gabriel Takyi is now an entrepreneur who owns a supermarket and petroleum station with branches at Abura Dunkwa, Sefwi Wiawso and Dunkwa – Offin. ABOUT THE SUPERMARKET The name of the supermarket is NASCO supermarket. It has being in operation since 2000 at Sefwi Wiawso in the Western Region. He is mainly into sales of meat, fresh produce, dairy, baked goods and household products. At this current stage, the supermarket and all the goods in it worth about GHC 250,000. HOW THE ENTREPRENEUR STARTED After the SHS education, he didn't get any financial support to further his studies. So he traveled to Tarkoradi as a sailor. Some years back he went to Accra as a sales boy and later on learnt mechanic. So he worked with a friend as a junior mechanic, while working he saves some money. During his experience as a sales boy, he decided to establish a small provision store in his vicinity. He started in front of his father's house. Mechanic was not his wish, but he used it as a stepping stone in order to achieve his goals. Later on, business went on fine so he decided to move from his father's house to rent his own apartment. Since he always searches for change, responds to it and...
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...company was founded in 1919 by Jack Cohen when he began to sell surplus groceries from a stall at Well Street Market, Hackney, in the East End of London. The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from Thomas Edward Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word TESCO. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software; financial services; telecoms and internet services; DVD rental; and music downloads. The 1990s saw Tesco business motto was "pile it high and sell it cheap", to which he added an internal motto of "YCDBSOYA" (You Can't Do Business Sitting On Your Arse) which he used to motivate his sales force. This was successful, and saw the chain grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later. Tesco is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £24.4 billion as of 15 January 2012, the 15th-largest of any company...
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...AN INVESTIGATION ON THE INFLUENCE OF FINANCIAL COMPENSATION ON EMPLOYEES’ PERFORMANCE IN RETAIL OUTLETS. A survey of selected supermarkets in Meru Town By BUS-1-0622-2/2010 A Research project Submitted in Partial Fulfillment for the Requirement of a Degree in Business Administration of Kenya Methodist University. AUGUST, 2012 DECLARATION I hereby declare that this is my original work and has not been presented for any examination purposes in any university or institution for the award of a degree, diploma or certificate. SIGN…………….. NAME: MARY NGUGI DATE……………………………….. This research project has been submitted with the approval of the University Supervisor; SIGN……………… SUPERVISOR: MS. ROSELYN KINYAMU DATE……………………………. DEDICATION I wish to dedicate this to my parents Mr. and Mrs. Muriuki, my siblings George and Christine and to my friends for the great support they have given from the beginning and to the supervisor who was supportive and very encouraging. May God bless them. ACKNOWLEDGEMENT Special Thanks to the Almighty God for giving me wisdom, endless favors and the ability to do this proposal successfully. I would like to recognize the contribution of my supervisor, Ms Roselyn Kinyamu, for her time...
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...CLINICAL ANALYSIS OF A SMALL SCALE BUSINESS VENTURE: BLENCO SUPERMARKET. Vision “Grow Blenco to be the next big thing ahead of Shoprite in Nigeria” Mission “Making high quality goods available to satisfy customer needs and striving to effectively deliver customer support services” BY GROUP FIVE: 2009MBA012 2009MBA014 2009MBA027 2009MBA029 2009MBA033 2009MBA041 2009MBA046 2009MBA049 3rd December, 2010 INTRODUCTION: The retail food sector in Nigeria consists of supermarkets, convenience stores/small groceries and traditional open air markets. Blenco Supermarket is a retail supermarket targeting customers within different localities. Her operations and strategic objective were clinically analyzed to see if there were deviations between her strategy and operations. The breakdown of the systematic analysis of the firm and its industry has been critically analyzed below to see how Blenco Supermarket can gain competitive advantage in a continuously dynamic market. COMPANY HISTORY: Blenco supermarket is an owner-managed business that has grown to become a family-owned business. The organization was started by Mr. Blessing Aghedo an energetic young man from the South-Eastern region of Nigeria. He started business as a provision shop with a modest sum of N1, 000 at Oshodi, Lagos in 1999. By 2002, he opened another provision shop in the Ejigbo environ...
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...ASSIGNMENT ON SAINSBURY PLC Background Information Sainsbury is the one of the oldest supermarkets in the United Kingdom. Sainsbury was founded in 1869 by John Sainsbury and his wife, Mary Sainsbury. Today Sainsbury runs 1,200 supermarkets and convenience stores. Its employees are around 161,000 and it is now one of the largest supermarkets in UK. Sainsbury plc. Business consists of supermarkets, convenience stores and Sainsbury banks. In 2010, Sainsbury became the first world’s largest retailer of fair trade products and only food retailer to have won Gold accreditation by the investor in people. Vision: ‘’To be the most trusted retailer where people love to work and shop.’’ Goal/Objectives: ‘’To make all our customers’ lives easier every day by Offering great quality and service at fair prices.’’ Mission: Is to be provider of healthy, safe, fresh, and tasty food at fair price Reference: http://www.j-sainsbury.co.uk/about-us/ Strategic objectives: The Sainsbury strategic objectives are to be the most trusted retailer and to be supermarkets where people will love to work and shop. Sainsbury plans is to focus on five areas that are supported by their strong values, culture and operation excellence. The business strategy and objectives are categorised into five areas of focus as follows: Reference: http://www.j-sainsbury.co.uk/about-us/business-strategy-objectives/ The Sainsbury stakeholders are as follows: Suppliers: These are agents that supply...
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