“Supermarket Project”

The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States. Establishments in this industry retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. There are many suggestions that can be made when it comes to ways to increase revenue. However, despite all the suggestions, the ways to increase profitability comes down to two things. Either the business administrators must find a way to reduce expenses or increase revenue, or find a combination that will accomplish both. To implement any strategy, a survey of the market and its needs is the key step. Upon analyzing the given data (using pivot tables), we know that the case in point is a low grade supermarket serving a large population of middle class consumers (mostly Hispanic) in various regions of Mexico, U.S and Canada, earning an average of 30k to 50k per year.

Getting customers into the store is one element of increasing sales, while triggering impulse sales is another. Our main focus is to increase revenue by keeping the existing clientele and look for the ways to use a variety of community-wide and in-store promotions to boost grocery store sales and profits, instead of spending too much in bringing new customers. For example, as it is evident in the following table that most of the market’s revenue is coming from the snacks, canned and frozen food etc., bought by the middleclass sector mostly. So it would be better not to spend too much to attract high-end customers by putting the resources into the development and marketing projects like introducing an organic section or so.

However, when we look at the average revenue generated, we see that high income customers contribute to it the most (table below). As