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…
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…
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…
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…
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…
The Supermarket “Prime Real Estate” describes how Marion Nestle is explaining to her readers how supermarkets and grocery stores all around the world manipulate shoppers into impulse buying items that are not necessary needs. In her essay “The Supermarket: Prime Real Estate,” she shows how much research has been done to have stores design to the correct layout so their customers spend more money than they intended. Also, it describes how researchers have conducted studies to prove that the…
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…