CASE STUDY 2: Supermarkets
The Competition Commission enquiry into supermarkets, which began in April 1999, followed a nine-month investigation by the Office of Fair Trading (OFT) into the major supermarket chains’ business activities. The OFT identified three major areas of concern: the use of barriers to entry, the lack of effective price competition, and the relationship between the large supermarket chains and their suppliers.
The main issue concerns the major supermarket chains’ huge buying and selling power. They have been able to drive costs down by forcing suppliers to offer discounts. Many suppliers, such as growers, have found their profit margins cut to the bone. However, these cost savings have not been passed on from supplier…
-Why do supermarkets have to sell a lot in order to make a profit?
Supermarkets have to sell a lot in order to make a profit because of rent, employes, and the items sold.
-What are three facts research has revealed about most shoppers?
Time is money
Senses drive sales
Shoppers have habits
-For every extra minute, shoppers spend in the supermarket, how much more money do they spend?
-Give 3 examples of how supermarkets try to appeal to your senses.
Supermarkets try to appeal to our…
The role of supermarket having control on consumer spending is discussed in four different ways in literature. First, is the pricing strategies that are used in the supermarkets to trick consumers into thinking they are getting a good deal. Article 2 stated that “price is unquestionably one of the most important marketplace cues” (234). Authors have noted “several researchers have argued that a price reduction in coupon form may produce an increase in consumer response beyond that which would…
Per an IBISWorld report, the Australian Supermarket industry is one of the most fiercely competitive industries in Australia. Although, good news joins that last statement; over the next five years, projected through the reporting period of 2021-2022, industry wide revenue is projected to grow at an annualised rate of 2.9%. This translates into roughly 121.3 billion dollars.
Accompanying the growth in revenue are growth in population and growth in disposable income. The population increase in…
which allows for Reed Supermarkets to be a one-stop shop for consumers in the area, driving traffic into stores and enticing potential customers to position themselves around their store. The customer service standard of the Reed Supermarkets is exceptional. Not only is this a huge differentiator in an increasingly automated world, Reed Supermarkets also pays special attention to its store layout and quality of service through services such as runners and greeters with cookies. All these…
Bob’s Supermarket is your friendly down-home grocery store that so many of us grew up with, in small town America. In 1988, Bob and his brother Sam bought out a run down, but somewhat profitable grocery store, and thru a lot of sweat equity and frugal expenditures they managed to eke out a living while competing against some major players like Walmart, Kroger, Aldi, Dollar General and CVS (Parnell, 2014). While Bob and Sam knew that they could not complete with the economies of scale offered…
contribute highly to the challenges. Bob has encompassed the challenge of focusing on what customers want that is not only competitive but also of high quality. All the rival supermarkets are focusing on price hence there have not been able to distinguish themselves from each other. Pleasure and community have surfaced as the new area of battle for Bob 's supermarket. Community in this context refers to the importance of individuals in the local neighborhood. Moreover, quality is a vital element…
EUROSPAR Supermarkets operate within a very competitive market firstly because it competes with the larger multiples of Dunne’s Stores and Tesco, with discounters of ALDI and LIDL but also from the independent Retailers who operate under the franchise of a National Retail Brand e.g. Supervalu, Londis and Cost cutter. These are similar Retail Formats operating in the same section of the marketplace and it is from these formats that the biggest challenge comes. This is when stores leave our brand…
Nosh Supermarket Case Study
School: Waikato Management School, Hamilton
Paper: Marketing Strategically
Paper Code: EXLD543-15G (HAM)
Lecturer: Mr. Greg Bold
Date: 28th June 2015
Word Count: 1821
Aby Kurien (ID No: 1253031)
The first Nosh supermarket store was opened in Glen Innes, Auckland in the year 2006 followed by stores in Ponsonby, Greenlane, Matakana and Mt. Eden. In 2011, Nosh opened its first store outside of…
Marketing and Sales
The High-End Supermarkets offer a premium selection of products from around the world, provide upmarket specialist products and luxury imported groceries which priced at higher rate. Following the annual report of Marks and Spencer, “Quality, innovation and convenience are the hallmarks of our Food business.” For example, City’Super provides imported Iberico Pork, Japanese fruit and French oysters which are priced at higher than the goods provided by…