Reed Supermarkets: a New Wave of Competitors Essays

1132 Words Mar 15th, 2013 5 Pages
MBAD 6171‐U90

Reed Supermarkets

Spring 2013

Meredith Collins faces the problem of choosing the most appropriate marketing strategy for Reed Supermarkets to implement so that the company increases its market share in the Columbus, OH market from 14% in 2010 to a target of 16% in 2011. This goal should be accomplished in spite of the new competitive challenges posed by the rising prominence of dollar and limited selection stores in the food retailing industry.
SWOT Analysis
Internal Strengths
1. Reed’s quality image and exceptionally attentive customer service;
2. Full range offerings;
3. Attractive stores, long hours, and elegant service‐case displays.
Internal Weaknesses
1. Many
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This customer segment has been the backbone of Reed’s growth in the past 20 years, and the company wants to be ready to satisfy its upscale tastes as the economy recovers.
Operations Director Jane Wu offered yet another alternative: increase low‐priced specials, expand private label brands, and introduce double couponing. The new consumer that emerged from the 2007‐2009 recession is more savvy and cost‐conscious, which is demonstrated by the increasing share of wallet captured by dollar and limited selection stores. By acknowledging this new reality and resorting to the strategy suggested by Director Wu, the company can potentially attract new customers and appeal to both fill‐in “trippers” and full grocery “runners”. This seems to be a sound strategy in order for the company to capture, in the short‐term, the $94 million additional sales required to meet the target market share. It is unclear, however, if this strategy could hurt the quality image recognized to Reed’s supermarkets and as a result drive high‐end customers away. On the other hand, during difficult economic times, such as the downturn of 2008‐2011, consumers tend to opt for value.
Finally, we should not discard the introduction of new stores as a strong alternative

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