By: Derrick Chen, Stephanie Gomez, Keisha Jemmott and Samantha Morris SUPERIOR SUPERMARKET By: Derrick Chen, Stephanie Gomez, Keisha Jemmott and Samantha Morris

PROBLEM Lack of strong consumer image Communication Pricing strategy

S.W.O.T Analysis

STRENGTHS Over 30 years of experience Higher quality of products Best shopping convenience More stores in operation Exceptional Customer service

WEAKNESSES High prices compare to competitor Geographical area Limited selection offered Store appearance (Cleanliness) Lack of consumer image

OPPORTUNITIES Store expansion Change display Use of market research information Improve pricing strategy “Superior”

THREATS Market share loss Loss of current customers Competitors in prime retail spots

Organizational Objectives Increase annual Profits by 12% Increase market share to 27% within 2 years Increase profit margins by 5% Reduce Operating Costs by 12% Decrease debt-to-assets ratio to under $0.15 Expand Company Operations Recognition

ALTERNATIVES

Alternative 1 Implementation of an “EVERY DAY LOW PRICING STRATEGY”.

PROS Low operating costs Low inventory handling costs GPM increase Possible market share increase Pricing strategy

CONS Image change Pricing Strategy Direct Competition Quality concern Loss of market share?

Alternative 2 Create a favourable store image among consumers

PROS Brand awareness Neighbourhood image Attracting new customers and satisfying current ones

CONS Increased Advertising Reject new image

Alternative 3 Maintain current pricing strategy and expand services and products

PROS Increase convenience Increase Brand Awareness Increase profits Delivery costs

CONS Expensive Store too small

Analysis of Alternatives http://learn.senecac.on.ca/~tegomez/alternatives.html

RECOMMENDATION

Alternative 3

TARGET MARKET

Centralia Population Profile 39.6% make $35,000-$74,999 Largest age group19 and under Core User: Individuals aged 25-54

Break Down Young Adults: 16-25 years Students and Young Professionals Live at home or share living accommodations Professionals: 26-54 years Average Income-$40,000+ Time and convenience concerns

Marketing Mix Price Same pricing strategy Promotion Print media Broadcast media In-Store promotion Place Same store location Service Improve service by adding a bakery and a deli

MAP

Pro Forma for Superior Supermarkets: Optimistic http://learn.senecac.on.ca/~sjmorri1/proforma.html

Implementation plan Year One, Quarter One Develop Pricing and Marketing strategies and plans.  8 weeks Send Marketing and Strategy plans for approval.  2 weeks Develop Information and Training sessions for Management Staff  4 weeks Conduct Information and Training Sessions Year One, Quarter Two Develop expansion objectives  2 weeks Develop Expansion Budget  4 weeks Locate and negotiate with a Contracting company to do the renovation

Development of Advertising Campaigns and In-Store Promotions Year One, Quarter Three Development of Advertising Campaigns and In-Store Promotions  10 weeks Advertising campaigns subject to approval  2 weeks Final Negotiations with the contracting company Year One, Quarter Four Store Closures, 3 weeks for each store, at alternating times  9 weeks Advertising (print media, radio and television) should coincide with store closures Grand Re-opening of newly renovated stores *Process to be completed in 1 full fiscal year

THANK YOU!!!