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Published byDarcy Chandler Modified over 9 years ago
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Eagle Rock Consulting Group LLC. Edoardo Cuomo, Joseph Joyce, Jillian Kupcha, Mathew Fogel, Gianna Riccoboni
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Safeway INC.
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AB
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A
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Who is Safeway? Second biggest grocery chain in the United States - 12 distribution centers Currently in low-price supermarket industry
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History April 1912: Sam Seeling Company founded, single grocery store in Los Angeles After WWI: bought by W.R.H. Weldon 1925: Safeway becomes name 1927: Initial Public Offering 1947: Sales exceeded $1 billion for first time Present: 1418 stores in the United States
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What’s Next? Challenge Responses Implementation
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The Challenge Safeway once had a strong market hold Supermarket industry has changed radically Safeway’s market share continues to decrease Lacks a clear distinctive market position
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The Challenge Discount vs. High-End Grocer Increased competition from: No longer profitable to compete with these companies
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Our Future Safeway must conform to new standards Build a concrete stance; upper- scale segment
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What’s Next? Challenge Responses Implementation
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Response Becoming a high end brand in the consumer/customer service grocery segment Implement a differentiation strategy with a mix of store improvements, better customer service, higher quality products
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Top Complaints
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Delivery Service Those whom frequently need delivery -Consumers that rarely have time to shop Offer discounts to consistent delivery customers
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In Store Pick-up Anybody -Visible emphasis -Quality image -Change perception of shopping
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Day Care Improve the experience at the stores Place for kids Better for kids and parents
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Atmosphere Better eating area Better Wi-Fi connection
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Better Quality and Customer Service Training employees Well informed about the products Suggest products to customers Suggest to use the “Just For U” program
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What’s Next? Challenge Responses Implementation
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Implementation Renovate stores Increase customer service Higher Quality Additional Store Features
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Logistics Course of action: -5 test locations -All in California -6 months to renovate and train employees -Test locations for 18 months
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Financials
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Financials Renovations17,250,000 Day Care700,000 Advertising500,000 Quality Control/Training100,000 Delivery/Pick-up450,000 Total19,000,000
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Financials Lifestyle Renovations Total Cost New StoresRenovations 927,000,000912 Store Totals720000000207000000 720000000/9207000000/12 Per store80,000,00017,250,000
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Budget Over estimate $20 million per store Total of the whole project 2 years $100 million total Out of $200 million dollars Extra money removed for future
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Larger Plan Bring all Safeway's to the high end market Implement over the next 10 years Rebuild the brand
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Additional Financial Slides
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Day Care Insurance - $2,000* a year Food - $2.50 per child $3,000 $2,000 Employees – 31,186* 15 an hour 2080 hours a year 5 employees $155,954 Supplies/equp - $450 per child 1,200 800 $540,000 $360,000* www.cultureofsafety.com/2013/04/ask-the- experts-how-much-does-child-care-insurance- cost/
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Quality Control NSF GFTC is the company that we found does training courses in quality and customer service (consulting firm) http://www.gftc.ca/courses-and-training/course- details.aspx?course=FST14 Total employees: 171,000 Total Stores 1418 Average per store 121 Training per employee= 525 525*121= 63, 525
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Deliver and Pick-Up http://www.ford.com/commercial-trucks/e- serieswagon/ Two Delivery trucks $50,000 each -Ford starting at $31,000 -Add customization Extra money for more training and additional employee salaries over next 18 months ($350,000)
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