...Business, University of Windsor Title of case: Superior Supermarkets. “Everyday Low Pricing” Key person and his / her position in the organization: James Ellis Senior V.P at Hall Consolidated and President of Superior Markets Key issue or decision that must be made: Should Superior Supermarkets implement the everyday low pricing strategy? If so, should this strategy be adopted across-the-board for all products or just certain categories? Basic facts of the case: Superior Markets is a division of Hall Consolidated, a privately owned wholesale and retail food distributor. Hall Consolidated was formed in 1959 and initially included a number of wholesale food operations and produce companies. The Superior Supermaket chain was acquired in 1975. Superior operates conventional supermarkets in trade areas that serve small cities and towns in the South Central United States. Centralia is the primary trade area in Scott County, which is located in central Missouri. Four grocery chain stores accounted for 85% of all food sales in Centralia in 2002. Three of the chains – Harrison’s, Grand American, and Missouri Mart – operated one store in Centralia, and Superior Supermakets operated three. Sales in the three Superior stores were divided as follows: grocery (50%), fresh meat, poultry and seafood (20%), produce (18%), seasonal and general merchandise (7%), bakery and deli (5%). Company officials believed that Superior stores offered a more limited variety of merchandise...
Words: 1837 - Pages: 8
...Superior Supermarkets (SS) is a division of Hall Consolidated, a privately owned wholesale and retail food distributor. Hall distributes food and related products to some 150 company-owned supermarket units and about 1,100 independent grocery stores in the U.S. through 12 wholesale distribution centers. Superior is the smallest of the three supermarket chains owned by Hall, with sales of $192.2 million in 2002. Sales of three Centralia stores were $14,326,700 in 2002. Randall Johnson, the District Manager for the Centralia stores, has recommended that they implement everyday low pricing (ELP) since Superior’s prices are higher than the competition at a time of growing price consciousness, and that the price differential could cause them to lose market share. Problem Statement Superior Supermarkets (SS) must decide whether o not to pursue an everyday low pricing (ELP) strategy at its three Centralia MO locations. Analysis Three viable alternatives have been found. Alternative #1 is to do nothing. Do not adopt ELP and keep the current promotional budget. If market share continues to decline, at the growth rate of -0.53% or greater, this alternative would be deemed unsuccessful. Conversely, if market share remains stagnant or improves, this strategy would prove to be prudent. Alternative #2 is to implement a ‘limited ELP’ model. By marginally increasing the amount of loss leaders, the model could attract price-conscious customers at the margin. Under this model, the advertising...
Words: 708 - Pages: 3
...Superior Supermarkets Memo Memorandum To: James Ellis, President of Superior Supermarkets CC: Randall Johnson, District III Manager of Superior Supermarkets From: Matthew Clemente RE: Potential Everyday Low Pricing Strategy Date: April 9, 2010 The challenge presented to the President of Superior Supermarkets James Ellis and his district manager Randall Johnson is whether or not to implement an everyday low pricing strategy to the Superior Supermarkets stores in Centralia, MO. Superior Supermarkets’ current pricing strategy is a high-end branding strategy, giving them the highest prices in Centralia. With their declining market share the past seven years (they currently have 23% market share in 2002, down from 31% just three years ago; see Exhibit 2) Superior Supermarkets looks to increase their rising revenues from the past three years (Exhibit 4), regain their past successful market share and maintain their already successful contribution margin. To accomplish these three goals, there are several alternatives that Superior Supermarkets could employ to help them retake the market in Centralia. The three locations of Superior Supermarkets in Centralia certainly give them precedence in location, but their market share should certainly be higher with the various options of location they give their customers. However, customers in Centralia are certainly price-sensitive and a new pricing strategy must certainly be considered to give Superior Supermarkets the...
Words: 1216 - Pages: 5
...Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Search Home Page»Business and Management Superior Supermarkets In: Business and Management Superior Supermarkets Superior Supermarkets Memo Memorandum To: James Ellis, President of Superior Supermarkets CC: Randall Johnson, District III Manager of Superior Supermarkets From: Matthew Clemente RE: Potential Everyday Low Pricing Strategy Date: April 9, 2010 The challenge presented to the President of Superior Supermarkets James Ellis and his district manager Randall Johnson is whether or not to implement an everyday low pricing strategy to the Superior Supermarkets stores in Centralia, MO. Superior Supermarkets’ current pricing strategy is a high-end branding strategy, giving them the highest prices in Centralia. With their declining market share the past seven years (they currently have 23% market share in 2002, down from 31% just three years ago; see Exhibit 2) Superior Supermarkets looks to increase their rising revenues from the past three years (Exhibit 4), regain their past successful market share and maintain their already successful contribution margin. To accomplish these three goals, there are several alternatives that Superior Supermarkets could employ to help them retake the market in Centralia. The three locations of Superior Supermarkets in Centralia certainly give them precedence in location, but their market share should certainly be higher with the various...
Words: 331 - Pages: 2
...order for us to achieve the same goals and objectives per period. The company sets our quota periodically. At the end of the period, we discuss with our superior of what percentage we have achieved in a certain time. Aside from strategic congruence, Thoroughness is also present. We also follow the 4 dimensions in performance management. Employees are being evaluated at a certain period of time, once a year, including managers. Human resource will also evaluate our job descriptions as well as our responsibilities and duties. After being evaluated for a certain period of time, feedbacks are given to us regarding our performance for that period of time. 2. Two characteristics that are not present in our firm are the Identification of Effective and Ineffective performance and Reliability. There are some employees that are not working properly yet they are still receiving allowances and incentives. It is a combined effort of all employees disregard of what an employee has done to achieve monthly quota. We can also not secure in staying in the company even if you were trying so hard. Supervisor’s judgment in performance evaluation is not fair and not free of error. 3. The best characteristic that is present in our company is the strategic congruence. Our individual goal is aligned with the company’s goal. Our immediate superior always discusses to his...
Words: 422 - Pages: 2
...accountability based on “work and interaction”, in accordance with explaining the consequences of treating the individual not as an instrumental. In my personal opinion, I agree with an individualizing form of accountability because the organization stands for making a profit. In order to sustain and maintain the organization, a company needs to have a good performance, which brings it a profit. The hierarchical accountability is most suitable for this goal because it concentrates on securing self, as one is driven by the standard of acceptance and recognition. On the other hand, I do give a certain respect to attempting a socializing form of accountability. This form may benefit the company, as it facilitates a shift in focus away from superior control and makes a subordinate accountant have face-to face accountability between people of relatively equal power. However, it will eventually become a double-edged sword because this form of accountability leads to direct encounters between others. When that occurs, it...
Words: 304 - Pages: 2
...To show that the companies are now merged, one of the most common practices is to use “one company, one email”. That way everyone can see that the companies have merged. But we also need to know how many computers they are currently using as well as how many servers, both physical and virtual. This will allow us to assess the combined strength of their IT infrastructure. We also need to know what version of Windows Server they are using as well as what Exchange server that they are using, that will help us establish how we can migrate all the information to one server for the new company to access the combined information. This will also allow us to establish domain trust for both networks that way both companies can access and share information between all the users. We can use the Active Directory Migration Tool to help with the merger of information. The ADMT will allow us to migrate users, computers, and groups from one domain to another domain. Since we are using an Exchange Server we need the information for the other company so we can use the Inter-Organization Replication Tool to replicate all of the information between the exchange servers so they both have all of the information, emails and anything that has been sent. This will also allow the coordination of meetings, appointments, contacts and all public folders to share access. If one or more domain exist, as in a merger, you can combine the multiple domains into a hierarchical tree structure. If one company is using...
Words: 309 - Pages: 2
...Company Vision: A globally recognized company and at the forefront of the hospitality and real estate industry in the country that offers consistent products and services in key business and leisure destinations. We will be known for our innovation, exemplary service to both external & internal customers, and superior financial performance. Company Mission: We are committed to deliver quality products and services to exceed our clients’ satisfaction. We constantly achieve to reward them with superior experience and value for their money. Brief Historyof the Company and its Businesses: The company J. King & Sons Trading was started in 1950’s by family patriarch Jesus King. Beginning with a textile store called the King’s Remnants up to the 1960’s. In 1972 it was incorporated to J. King & Sons Company, where it ventures into real estate development. To date, the company business has diversified into: * Real Estate Leasing * Drive-In Hotel Operations * Hotel Operations * Health and Leisure * Real Estate Development * Laundry Operations Real Estate Leasing: J. King & Sons Company Inc. began to venture into the leasing of warehouses and commercials and residential spaces in 1970’s. It is now leasing over 200 warehouses in key areas of Cebu, Manila and Davao. Drive-In Hotels: In the mid-1990’s the company began focusing on the idea of a per day rental basis for its apartments to boost its real estate leasing business...
Words: 4451 - Pages: 18
...BACKGROUND COMPANY Superior supermarket is the one of division of Consolidated Hall. Consolidated Hall is a privately owned wholesale and retail food distributor. In year 1959, the Hall Consolidated was formed. In year 1970, the first retail grocery store chain was purchased. The superior supermarket chain was acquired in 1975.The Hall distributed food and related products to some 150 company owned supermarket units operating under three supermarket chain names through 12 wholesale distribution centers.By year 2002 also,1,100 independent store also supplied by Hall distribution in Unites States. In the year, the sales were $2.3 billion. In supermarket chain owned by Hall consolidated, Superior supermarket is the smallest compared to three supermarket chain in Hall consolidated. The superior gained with sales of 192.2 million in year 2002.In trade areas with small cities and towns in South Central Unites States, the superior served them conventionally. The median size is about 44,000 square feet in United States. So the superior is considered small because the areas of the superior supermarket just cover about 20,730 square feet. Even though the size is small, the superior was the number 1 or number 2 in ranking of supermarket chain in each of its trade measured by market share. The figure 1.1 below had shown the front view of superior supermarket. Figure 1.1: The view in front of Superior Supermarket. 2. OBJECTIVES ...
Words: 2981 - Pages: 12
...Case; Superior Supermarkets “Everyday Low Pricing” Company background; * Superior supermarkets is a division of Hall Consolidated, a privately owned wholesale and retail food distributor, Hall formed in 1959 and distributed food and related products to 150 company-owned supermarket units, operating under three supermarkets chain names through 12 wholesale distribution centers in US, its sales in 2002 were 2.3 billion *The three Superior supermarkets are located in Centralia-Missouri, Everyday Low Price Policy; A retailer charges a constant lower everyday price for merchandise with few, if any, price discounts, this practice differs from a “Hi-Lo” price policy, whereby a retailer charges higher prices on an everyday basis, but then runs frequent promotions. The Goal of the Superior Markets new approach “Everyday low price”; 1-Superior’s prices were higher than the competition 2-Superior could lose market share due to the price differential and accordingly losing its second position “Market challenger”. Everyday Low Pricing Implementation Considerations; *All of the Hall executives acknowledged that Superior Supermarkets were rightly perceived by shoppers as having the highest prices *Whether or not to adopt this pricing strategy across-the board for all products or just certain categories? *The pricing itself and how much it should be lower? As the studies showed that their market-basket prices were always 7-10% higher than other competitors ...
Words: 706 - Pages: 3
...PROBLEM STATEMENT Superior Supermarkets (SS) must decide whether or not to pursue an everyday low pricing (ELP) strategy at its three Centralia MO locations. Strategic Issues & Marketing Mix Pricing: Current prices are reflective of a high-end branding strategy. SS everyday (non-promotional) prices are approximately 10% higher than Harrison (Hr) and about 7 percent higher than Grand American (GA) and Missouri Mart (MM). Subsequently, higher prices have become a competitive concern due to their declining market share in Centralia. The negative growth rate, based on 1995 to 2002 figures from Figure 2, is -0.53%. Product line: SS are supermarket stores. The stores’ products may be 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. Promotion: The 2002 advertising budget was 0.89% of sales revenue, or $127,500. Competitors spent an estimated 1.0% of their sales revenue. If ELP is adopted, SS would increase the advertising budget (discussed later). Location: SS’s three locations (North Fairview, West Main and South Prospect) provide a competitive advantage. As cited by the VP of Operations: “we offer greater convenience of shopping with our three stores and that is worth something (implying higher prices)”. Further evidence is indicated in Exhibit 6 customer survey ranking “most convenient”: SS -35%, MM -25%, Hr -21%, and GA -18%. Goals & Objectives 1. Increase...
Words: 1706 - Pages: 7
...HiHi-Value Supermarkets: Everyday low pricing General Overview NOTE***I included not only information specifically designed for the slides but also extra information that I will speak about. The information in parenthesis is what I will verbally add to my part of the presentation so don't worry about putting in the actual case presentation PPT. SLIDE: The Meeting > In early April of 2006, several members of Hall Consolidated meet with the District Manager of 3 Superior stores in Centralia, Missouri. (The agenda of this meeting was to disuss the districts progress and to address any issues related to the 3 stores.) > The District Manager proposed EDLP for his 3 stores. (The DM thought this was appropriate because he noticed their prices were higher compared to their competitors in the Centralia area. He also realized that consumers were becoming much more price conscious. Sales were also below quota for the 1st quarter of 2006.) > The EDLP strategy had been briefly discussed in August of 2005. (Although, they discussed the EDLP stratgey prior to the quarter meeting in 2006, they continued on with their current strategy) SLIDE: The Company > Hi-Value Supermarkets is a privateloy owned wholesale and retail food distributor. (HVS is a division of Hall Consolidated) > It is the samllest of the 3 supermarket chains owned by Hall Consolidated. > It was the number 1 or number 2 ranked supermarket chain in each of its trade markets.(This is measured by...
Words: 369 - Pages: 2
...Inc. Wegmans Food Markets, Inc. is a supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, Maryland, and Massachusetts. The family-owned company was founded in 1916 and currently have 83 stores. Wegmans is recognized as an innovator and an industry leader, which has earned them a ranking with FORTUNE magazine as one of the ‘100 Best Companies to Work For’ for seventeen consecutive years. Although in previous years, Wegmans ranked higher on Fortune’s list, landing first place in 2004, they continue to rank high, landing fifth place in 2013 and recently capturing twelfth place in 2014 (4). Wegmans’ consistent success over the years is based on family values which has been the driving force behind their reputation for having a strong ethical foundation. Implementation of their ethical values have placed them as a top competitor in the grocery industry. Unlike their competitors, their advantage has nothing to do with lower prices. Because of this they have set themselves apart from their competitors. Their commitment to ethics, integrity, and personal respect begins at the corporate level and works its way down through the ranks to positively impact their bottom line figures. They have gained superiority among their competitors. In fact, Wegmans was named one of the 2012 World's Most Ethical Companies for the third year in a row. They top the industry in all the world with regard to their code of ethics, superior litigation and regulatory infraction history...
Words: 1199 - Pages: 5
...TESCO PLC is a British multinational grocery and general merchandise retailer based in Welwyn Garden City, Hertfordshire, United Kingdom. Jack Cohen founded Tesco in 1919. Currently it is a biggest grocery market leader in the UK with a market share of around 31%. Tesco Plc is the second and third biggest grocery retailer worldwide measured by revenue and profit respectively. Initially, a retail grocery store in United Kingdom since 1990s by Tesco Plc has differential geographically and in areas as the retail sale of clothes, toys, books, gasoline, electronic, software, furniture, telecommunications, internet service and financial services. In 1990 saw the Tesco Plc reattached transferred than to be a down market high volume low cost retailer, to that addressed in several group in society, offering products ranging from “Tesco Value” data in “Tesco Finest” This enlargement of the recourse was winning and saw the chain grow 500 stores in the middle of 1990s to 2500 fifteen year beyond. Tesco Plc is listed on a stock exchange market and is included in FTSE 100. Market capitalization is around £18.100.000, such as at April 2015, 28th greatest from any company with a primordial listing on London Stock Exchange. The key issue company can face when choosing to operate under the cost model is that due to low profit margins grocery retailers become more vulnerable to external circumstances, such as financial crisis or natural disaster, and does not have sufficient capital to cover...
Words: 738 - Pages: 3
...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...
Words: 3433 - Pages: 14
