Dave’s Grocery “Freshness, Value, and Service”

Introduction Katherine Fraser - Marketing Adriana Horvathova – Strategic Planning Sze-Zin Lo - Finance Dese Fulljames – Human Resources Sterlington & Associates

Agenda Overview of Situation Options Environmental Scanning SWOT Grand Strategy Example: Choices Market Goals Summary “You’ve fed our entire family since 1988” - Tom Adams, 1988

Overview of Situation Situation Opening of Super Mega store in next town –Free shuttle service Impact Possible loss of customers Possible decrease of business profitability Possible decrease of business viability “Dave & his staff give great tips.” -Jake & Olivia, 1991

Options Do Nothing Build on Core Competencies Open a Pharmacy “With Dave, I’m not a number, but a person.” -Kristine, 1998

Do Nothing Chance of losing business

Open a Pharmacy Cost Benefit Analysis = Not Feasible

Build on Core Competencies Grow Business

Environmental Scanning Market Research Surveys Focus Groups Observation Interviews Trend Analysis “The produce is the best!” -Randy & Jennifer, 1986

Strengths Entrenched in community Convenient location Established relationships – supplier, customer, employee Product knowledge, experience and personal touch Fresh products and unique offers Exceptional customer service Low operation costs “Great Value.” -Jim, 1990

Weaknesses Finite number of customers Limited financial resources Limited consumer product categories Old fashioned image Inability to deep discount “We know it’s fresh.” -Cam & Annie, 1991

Opportunities Positive image in community Increased demand for fresh goods Customers are time-conscious Access to knowledgeable staff Opportunity to special order products Direct customer feedback on trends “It’s an inviting place to shop.” -Sam & Gene, 2001

Threats New entrants to marketplace Discount stores Customers are price conscious Customers want one-stop shopping Market share is not growing “I can put in special orders.” -Henry, 1997

SWOT Analysis Environmental Threats Environmental Opportunities Internal Strength Internal Weakness Redesign Be Defensive Use Strengths in New Places Be Aggressive “I know the food is always fresh.” -Linda, 1995

Grand Strategy “BE AGGRESSIVE” “It’s right next door.” -Cynthia, 1991

Choices Market History Founded in 1990 Lockhart brothers Largest in Western Canada Actions Introduced new products Core competencies Food focus Niche market Community oriented “There are lots of friendly faces.” -Ken & Jane, 1989

Corporate Goals Financial Maintain profit margin of 15% for next 5 years. Safety Improve safety level by 5% over next 2 years. Retention rate of 5% above industry average for next 5 years. Stewardship Achieve 95% recycling of packaging by the end of “We go every Monday, Thursday, & Saturday.” -Jenny, Karen, Paul, Adam,, 1986

Corporate Goals Satisfaction Improve customer satisfaction by 10% over 5 years. Reduce returns by 5% in year 1. Sustainability Increase customer counts by 4% per annum. Increase product-mix by 25% in year 1. “I get my groceries & neighbourhood updates.” -Jerry, 1991

Operational Goals Financial Increase market share by 5% over the next 5 years. Human Resources Decrease attrition by 10% over the next 3 years. “Great looking outdoor displays.” -Kevin & Janet, 1993

Operational Goals Marketing Increase marketing spending by 25% each year. Production Reduce shrinkage levels by 30% over the next three years. “It’s open early.” -Ryan, 1991

Summary Focus & build on your core competencies “Be Aggressive” Create a niche “Freshness, Value, & Service”

Thank You Audience Q & A