Chief Supermarkets The emergence of the premier fresh supermarket Cornell University Nathaniel Drake Josh Brown Stephanie Ko Emily D’Agostino

Problem Statement Chief Supermarkets is surrounded by low price, value oriented competitors in a saturated market. Its positioning has led to declining customer counts and low brand perception in the community.

HIGH LOW HIGH Price Service, Quality, Experience

Total Number of Households in 3 mile radius of all Chief and Ray Supermarkets-Mosaic Studies

Demographic Takeaways-Mosaic Studies High concentration of value-focused customers Customers find advertisements helpful Strong brand loyalty 50% of Families in Motion have 2-3 children Favor local entertainment, outdoor activities, and sporting events

Mission To delight our customers with great food and experiences. Current Tactics Family Tradition Chief, through product and service, will promote family values and traditions within its communities. Wine tasting Fresh market salads Smokehouse Chief University Specialty Cookies Premium Meats Experience Chief will strive to provide a warm and friendly shopping experience for all its customers. Great Food Chief will be the premier provider in its market of the freshest perishables & prepared foods. Value Chief will price itself at a level that is accessible and affordable for all its customers, on the items they use most.. Recommendation Chief’s Brand Pillars

Great Foods Require more frequent produce quality and expiration date checks in stores to avoid consumer backlash Become 1 st store in area to have key fresh items Product line extension in bakery—Chief Signature Items Incorporate local sourcing of produce and perishables

Great Foods

Sample Advertisement

Experience Implement employee incentive program Vent bakery aromas into vestibule—would cost approximately $2000 per store Provide meal solution samples, and cost would include labor and food supplies Leverage Chief University to increase employee knowledge about perishable freshness

Family Tradition Sponsoring Local Sporting Events Creating a stronger bonds with the community will strengthen Chief’s brand and customer base. Building strong relationships

Family Tradition Meal Deals and “Camper’s Corner” Meal Deal Provide affordable bundled meals to support eating dinner together at home “Camper’s Corner” Families enjoy outdoor activities like camping and hiking

Value Provide more products at affordable prices Spartan private label Big sizes Bundle packs Close out deals Off sizing Strong advertising price policy

“The Wall of Values”

Implementation of Brand Pillars Immediate changes (by month 1) Changing the presentation of the produce “Camper’s Corner” Meal Deals Meal Solution Samples Assorted pricing tactics Short term (by month 6-9) Local sporting events Spartan private label Employee incentive program Improving produce Long term (by month 9-12) Chief signature items Spartan private label Bakery aromas

Success Measures Mystery shopper Score high ratings on freshness and enjoyable experience Customer survey Improve employee rating by measuring exit surveys

Leverage the extended enterprise network with Spartan Working with local suppliers to provide locally based products. Transfer best practices from Spartan and its subsidiary, D&W Fresh Market, creating supply chain synergies. Work with the manufacturer to ensure that Chief will never be beaten on price on the cover of their weekly specials. Exploiting the relationship between Chief and Spartan will ensure Chief stays competitive in a saturated market.

Conclusion Chief’s improved produce department, stronger ties to the community, superior customer service, and highly utilized supply chain will provide a competitive advantage for the foreseeable future Chief’s new Brand Pillars provide flexibility that is unrivaled by competitors, allowing customers to enjoy great food and experiences