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Reed supermarkets - Final design

Group C team

Rohan Joseph

on 7 November 2013

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Transcript of Reed supermarkets - Final design

A New Wave of Competitors
Walid Yaqoobi
Laura Andujar
Giovanna Porcella
Rohan Joseph

Who are we?
Established in 1939 by William H Reed

Over 192 retail stores and 2 regional distribution centers in the Midwestern United States by 2010

Well known for its high quality of its produce

Emphasis on organic produce

High end supermarket

Prepared entrees

Decline in market share due to high competition

Price sensitive customers

Consumer Behavior
U.S Food Retailing Industry
Average American annual expenditure on grocery items - $5,200.00

2 supermarkets trips weekly

Cherry picking customers

Growth of private label merchandise

Growth of pet and health food shops due to rising trend of pet lovers and health conscious Americans.

Increase in warehouse clubs, supercenters and specialty stores

SWOT Analysis

Highest market position
Strong brand value
Large assortment of products, prepared entrees and imported varieties
Elegant and attractive stores
Attentive customer service

Potential revival of economy
Expansion into new areas – pet and health product lines
Enter into private label merchandise
Social media

Limited store presence
Small store size
Lack of private label merchandise
Limited focus on pet and health products

New firms and branches entering the market
Increased pressure on prices
Cherry picking customer
Second generation competition
Dollar stores
Packaged food, housewares, clothing, seasonal items priced at $1 per unit or low dollar multiples.
33000 dollar stores in the U.S
Maintained net margins of 8%

Limited selection stores
Stores with specialization in private label food items
Limited inventory of 1500 products per store
Highest sales per square foot of grocery chain in America
Emphasis on imported and specialty food items

Market research
Understanding market, customer behavior, segmentation and special dollar campaign
Company goals
Dollar special campaign
Reed Supermarkets
Columbus market share
Market segmentation
Thank you
Any questions?
Customer perception
Price Index
Quality Index
Growing Trends
Achieve market share of 16% by 2011

Understand customer feedback

Study popular customer trends

Make target segmentation

Impact of dollar special campaign

Devise action plan

Prepare marketing strategy

Discontinue the dollar special campaign
Steep decline in net profits margins
Unsustainable financial model
Detract from quality image
Confuse affluent Reed consumers

Financial Impact
Focus on reinforcing the range and quality of the products
Emphasis on quality and services in operations and advertising
Agenda - Reed Supermarket Case
Who are we?
Consumers' Behavior
U.S. Food Retailing Industry
SWOT Analysis
Should it be continued?
Company goals
Growing trends
Market share
Marketing research
Market segmentation
Customer perception
Market positioning
Dollar special campaign
Action Plan
Raise the bar on by reinventing the shopping experience — better quality goods, a spectacular abundance of choice, restaurant-quality prepared foods, beautiful stores and displays and a nearly telepathic level of customer service. Reed must increase its offerings by providing more customer convenience options.

Market Penetration
Training and coaching the staff for better service
Promotional plan: Plan on promotions, such as club membership, discount card for frequent shoppers “Loyalty program”.
Increase private label product: Comparison diagram
Discontinue dollar campaigns
Refocus position as a high quality food retailer
Increase variety of prepared food

Action Plan
Email survey of 400 Reed customers
Survey of 250 Reed non-customers
Reed Positioning
Full transcript