1. Reed Super Market A New Wave of Competitors
Mahesh Amarasiri, MBA,FCMA,ACIM,B.Sc( Eng)

2. Abstract
Reed Supermarkets is a high-end supermarket chain with operations in several Midwestern states.
Meredith Collins, vice president of marketing, visits stores located in Columbus, Ohio, an important region with the largest market and the greatest impact on revenue growth.
She is concerned about increased competition from dollar stores and limited- assortment stores offering very low, appealing price points.
Reed's market research shows that as a result of the economic downturn, customer loyalty is dwindling and consumers are willing to go to multiple stores to get the best deals.
The management have diverse views on the options in hand

3. Options in Hand
Collins must decide whether to change the current marketing and positioning plan in an effort to increase market share to meet challenging corporate targets.
Her options include retreating from price competition and focusing on quality or embracing more private-label brands and competing more aggressively on price.
She can also maintain the current positioning and appeal to customers looking for a quality shopping experience.

4. Problem in Hand
Grow Market Share from 14% to 16% amidst declining trend
Arrest threat from Competition
Slow down in the retail market in US
Positioning in Customers Mind

5. Suggested Approach Overview Analysis of Problem in Hand
Competitor Analysis/Positioning
SWOT Analysis
Evaluation Options in Hand
Recommendations

6. Strategic Tools
SWOT
Competitor Analysis/Mapping
Evaluation of Options

7. Suggested Answer

8. Overview
Reed Supermarkets is a high-end supermarket chain with operations in several Midwestern states.
Meredith Collins, vice president of marketing, visits stores located in Columbus, Ohio, an important region with the largest market and the greatest impact on revenue growth.
She is concerned about increased competition from dollar stores and limited- assortment stores offering very low, appealing price points.
Reed's market research shows that as a result of the economic downturn, customer loyalty is dwindling and consumers are willing to go to multiple stores to get the best deals.

9. Overview
Collins must decide whether to change the current marketing and positioning plan in an effort to increase market share to meet challenging corporate targets.
Her options include retreating from price competition and focusing on quality or embracing more private-label brands and competing more aggressively on price.
She can also maintain the current positioning and appeal to customers looking for a quality shopping experience.

10. Problem in Hand
Grow Market Share from 14% to 16% amidst declining trend
Arrest threat from Competition
Slow down in the retail market in US
Positioning in Customers Mind

11. Options in Hand Continue with dollar special program
Continue with everyday low price program
Overall price reduction
Expand private label and health range

12. SWOT Analysis Strength Convenience Private Label
Positioning for Quality
Weaknesses
Low Margins
Opportunities
Increase Private Labels
Prepared Food
Pet Food
Threats
Dollar Stores
Warehouse
Super Centre

13. Industry Analysis ( Porters Five Forces)
Threat of New Entrants
Dollar Stores
Warehouses
Customer Bargaining Power
Customers tend to move to the best offer instead of convenience
Different shopping formats for customers
Bargaining power of the supplier
Increase private Labels
Threat of Substitutes
Different shopping formats are in place for the customers needs
Rivalry among the existing players
Many promotional programs are in place in the industry in order get the share of wallet

14. Competitor Analysis

15. Positioning MAP

16. Options in Hand

17. Recommendations