Consumer Behavior Case Study: Smartmart

1496 Words 6 Pages
Background, Choice of Strategy and Decisions made

SmartMart is a successful retail grocery store, spread over 20 locations. The company’s vision is to provide organic and healthy food to a large market of customers. The Typical SmartMart customer is a health conscious individual or family, who doesn’t mind paying a little extra for products they can feel good about. A key value for them is to be mindful of how their actions impact communities, especially the natural environment.
The essence of strategy is choosing a unique positioning and a distinctive value chain to deliver to it. Focusing on particular set of market and customers, will help SmartMart create value for stakeholders based on its mission. Built on the ethics, value and mission
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By securing a label an association with FDA and other governmental agencies, SmartMart would once again find its lost differentiation. It is redefining productivity in the value chain iii by introducing organics 2.0 in the market. By securing a label with the association, it will be able to attract back the customers and make production volumes more reliable.
Protection of Shareholder & Stakeholder Interest

Shareholders
SmartMart is focusing on creating shared value, i.e. profit as well as environment. The criteria of success for a company can be shareholder’s value, i.e. company’s share price. In all the three scenarios, company is focusing on increasing productivity and long term profitability. Customers will get a wide range of products with the excellent service. As local CSA’s are popular among consumers, it would generate more profit for the company and hence share’s value will increase.
The alliance with the bio-fuel provider will save them of possibly high exit costs, should SmartMart decide to change that decision in future. SmartMart is secure in this decision, as there is no initial investment in it. Thus, creating value for shareholders.
Furthermore, the introduction of Organics 2.0 in collaboration with the Government will add to the credibility of the firm. These decisions will boost brand loyalty, thus increasing the earnings of the
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Stats from the simulation reveals that CSA is growing at a fast pace and will continue to grow. By choosing to adopt the niche market segment, SmartMart has strengthened that it is willing to go that extra mile and keep the interest of the customers and potential customers while ensuring profitability. It can do so by focusing on expanding rather than just competing for scarce resources. For example, customers are satisfied because of the increased variety and capacity of organic and healthy products. A massive 43% said that they’d like to see SmartMart compete with Local CSA’s. Their loyalty is also increased due to the focus on alternate sources of energy as bio-fuel. The strategy requires less investment and is not affected by change in fuel prices. This will work for environmentalist also, as going niche, SmartMart is further promoting a healthier lifestyle.
By making an alliance with top two Bio-fuel producers, SmartMart is maximizing value by doing a relatively quick start-up and investing low cost to initiate the process. Most shareholders, customers and local community like this decision as it provides quick access into the market. It can utilize the relationship management capability to make the alliance long

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