Small Family Grocers

Improved Essays
In addition to the strategy of focusing on nearby clientele, an understanding of different types of shopping trips can also help small family grocers to simplify price decisions. To compete with large retailers, many store owners have been found to adopt a low-price strategy to attract consumers (Mutebi and Ansari, 2008). Although lowering prices is an apparently attractive strategy, small family grocers typically lack access to the economies of scale, such as the significant volume discounts available to chain retailers (Hamilton, 2003). This suggests that the low-price strategy is inappropriate for small family grocers (Hamilton, 2003), and in fact, consumers usually expect to pay a higher price when they are making a shopping trip to satisfy

Related Documents

  • Improved Essays

    Trader Joe's Evolution

    • 893 Words
    • 4 Pages

    The Rise of Organics Nowadays, people are care about food safety and many markets like Safeway and Sprouts are selling organic products in their store. As USDA (United States Department of Agriculture) states, “Organic agriculture produces products using methods that preserve the environment and avoid most synthetic materials, such as pesticides and antibiotics” (“What is?” par. 2). It gives people the idea of the agriculture they planted does not use chemicals to kill the insects on the plant that are harmful to people’s body. In addition, if the livestock that people usually eat in meals want to qualify for organic, they should be feed with antibiotic forage every day.…

    • 893 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Chain stores can provide the general public with a numerous amount of goods, ranging from clothing, retail jobs, and supplies. In the article “In Praise of Chain Stores” author Postrel, argues in favor of chain stores throughout America, he clearly states chain stores “increase local variety, even as they reduce the differences from place to place” (50). Chain stores provide extra experience for people who prefer to stay put in one location, in addition; every town deserves a chance at popular stores as much as the next major city does. Postrel says “Chains do more than…

    • 827 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    With their small-box format and modest “no frills” buildings designed to keep costs low. With economical store format gives advantages of low initial investment, low manpower requirements and proximity to customers enables them to keep costs low, and able to expand locations (Marketline, n.d.). During harsh economic times consumers are going to the lower cost stores. Dollar General Stores are more convenient and are a “no frills” basic store…

    • 1135 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The first film viewed was called Broken Limbs. The film was about the poor farmers who were facing an economic crisis. The main topic of the film was how the international economy is destroying small businesses and forcing them to reevaluate their selling strategies to be in competition with bigger name brand companies. Economic factors that were depicted in the film were, unlike the small farmers, the bigger companies had more money and resources due to cheaper labor costs and resources outside the United States. This put some of the small farmers out of business.…

    • 643 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    2. Nordstrom’s greatest risk is catering to consumers in a higher financial bracket. There are numerous individuals who love high end products, but hate the luxury price tag. In other words, Nordstrom is dependent on the loyalty of current customers to meet financial objectives, as opposed to attracting new customers. If Nordstrom implements a strategy that decreased its price point, less fortunate shoppers would be more inclined to purchase items from the retailer, and thus increase its customer base.…

    • 97 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    This year Mary was given the overwhelming task of hosting Thanksgiving for her 36 person family. She has decided to shop for her supplies in Marshall, Minnesota. Mary has the choice to shop at either Walmart or Hy-Vee. When making her decision, she has to take into account the differences and similarities of the two stores. Walmart is a grocery and department store, while Hy-Vee is strictly a grocery store.…

    • 806 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    For nearly 30 years, Steritech has been an industry leader and pioneer, providing innovative solutions that mitigate risk and drive growth. Founded as a pest management company in 1986, Steritech began its business providing highly specialized pest prevention services to commercial facilities. In 1996, Steritech entered the food safety business, conducting sanitation audits for a major grocery store chain in the Southeast. It's from those humble beginnings that Steritech's assessment business got its start.…

    • 111 Words
    • 1 Pages
    Decent Essays
  • Superior Essays

    James Hall Professor Elizabeth Harris & April Carlisle Shopper Marketing 490 October 29th, 2014 Inside the Mind of a Shopper: A look into Peapod In the book Inside the Mind of Shopper: The Science of Retailing, Doctor Herb Sorensen answers the question “What do you really do when you shop?” Dr. Sorenson stresses that retailers are “leaving” millions in sales by simply not watching and understanding the customer’s behaviors. Dr. Herb Sorensen has some important takeaways from his research that expose the truth about the retail shopper and reject old myths about shopper marketing that lead retailers to miss big revenue opportunities Dr. Sorensen’s book mostly focuses on shopper marketing within large and small supermarkets, in that he uses…

    • 1537 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Supermarket, a large form of the traditional grocery store, which is considered the best place to spend money on food are likely to have an adverse effect on customer’s health according to researchers. In the article “The Supermarket: Prime Real Estate,” Marion Nestle discusses how supermarkets design and control their features to make influences on shopping behaviors in order to gain more money from purchasers. Specifically, she argues buyer choices are being manipulated by food companies and the supermarket itself. Since their job is to do business, to sell more products, and to gain more profit, therefore, consumer’s health is not their first priority. As she puts it, “Perhaps, but they do everything to make the choice theirs, not yours.…

    • 886 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The first few food stores can be located very close by to the “high velocity” food distribution centers, making it easy and inexpensive to deliver the products to the new grocery stores. If the stores make an impact and increase sales, Wal-Mart can plan on the growth of these grocery…

    • 1848 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Farm Boy Case Analysis

    • 294 Words
    • 2 Pages

    Current analysis of Farm Boy reveals the considerations facing the company in providing direction to future marketing decisions. In their microenvironment, Farm Boy faces a high-level of reliance on their produce suppliers. Anticipation of environmental disasters like floods or droughts may impact FB’s margins or force higher prices; however, FB’s efforts to consistently maintain strong relations with their local suppliers may mitigate the effects of this. Furthermore, a positive public perception of FB is critical to uphold, and validates continuous efforts to create an unmatched customer experience with their brand. In addition, factors facing FB in their macroenvironment include a shift in the size of Canadian households, more working mothers, and urban migration indicating the need for larger food retailers in urban areas.…

    • 294 Words
    • 2 Pages
    Improved Essays
  • Superior Essays

    Analysis of CPM: Whole Foods CPM shows a small marginal difference between them and their competitors Trader Joe’s and Wegman’s. Competing on price, quality, variety, and brand will enable the company to increase sales and become more competitive than Trader Joe’s and Wegman’s. Shopping at Whole Foods has declined by 19% and with the acquisition of Wild Oats, their long-term debt increased significantly. When compared to Trader Joe’s shoppers who spend 38 dollars per customer and Safeway whose shoppers spend 45 dollars per shopper, Whole Foods comes in lower with shoppers spending on average 28 dollars per customer. Whole Foods goal should consist of closing stores that are not profitable and reduce…

    • 1251 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Target Canada Essay

    • 1597 Words
    • 7 Pages

    Another contributing factor to the issue of low foot traffic was Target Canada’s poor physical store placement and image due to its buyout of Zellers leases. As executives soon learned, quick increases in market share are not always worth business model compromises. Overall, Zellers locations were more city-oriented than American Target locations, which led to less access for the retail chains primary target market segment: the middle class. Instead of driving out of their way to shop at Target, many middle-class Canadian consumers opted to continue frequenting their usual preferred retail outlets, an outcome Target Canada bet would not materialize. In addition, the Zeller’s stores not only had smaller store footprints with less shelf space…

    • 1597 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Tesco Research

    • 1998 Words
    • 8 Pages

    The large-scale company I have chosen is Tesco because it is a large and a global supermarket. It is categorized as a large-scale business as it has over 472,000 employees worldwide. Tesco has spent over £34.6m on TV and internet advertising. This gives it a massive boost on sales figures because it reaches out to a wider range of customers not just locally but nationally and internationally. I have chosen Tesco because I want to find out how they promote themselves and if they do any similar pricing and promotion strategies like the small businesses.…

    • 1998 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Shopping for groceries is one thing that everyone does in their life, but not all grocery stores provide a good shopping experience for their customers probably because of their “Profit first” business theory. Another reason is that employees in the shop is not being helpful or being friendly. There are different markets or stores available for shopping, but a store that provides pleasant shopping experience is always more preferable to customers because it makes their life easier. Often times, when customers do not find their shopping experience enjoyable, they do not want to return. But most of the stores presented itself that way so they leave customers no choice.…

    • 1195 Words
    • 5 Pages
    Improved Essays