Personal Shopping Assistant
Presented By: John Chang
4/15/03
Copyright © 2001-2003, Farm Fresh.
All rights reserved.
1
Management Plan
John Chang, Project Mgr
• Timeline
• Deliverables
• Milestones
4/15/03
2
Management Plan
Graphical Representation
4/15/03
3
Team Organization
General
Manager
M.L.Nelson
Project Manager
John Chang
Product
Development
Kevin Jones
Financial
Management
Steve Eleyet
4/15/03
Documentation
Management
Jeremy Allen
Technical Manager
Cleveland Burnett
Academic
Research
Chris McKee
Market
Research
Mattanyah
Woodburry
4
Project Timeline
February
Task
28 30
3 10 17 24
March
3 10 17 24 31
April
7 14 21 28
May
5 12 19 26
June
2
9 16 23 30
July
7 14 21 28
August
4 11 18 25
1000 - Team Organization Phase
1001 - Define the problem
1002 - Define the product
1003 - Assign team responsibilities
2000 - Project Feasibility Phase
2001 - Conduct academic research
2002 - Conduct surveys
2003 - Conduct interviews
2004 - Define the market
2005 - Create top-level design
2006 - Determine expected costs
2007 - Feasibility Presentation
3000 - Milestone Planning Phase
3001 - Risk analysis
3002 - Refine the technical design
3003 - Cost analysis
3004 - Identify SBIR funding agency
3005 - Milestone Presentation
4000 - Project Approval Phase
4001 - SBIR plan
4002 - Refine plan
4003 - Refine costs
4004 - Project Approval Presentation
5000 - Prototype Construction and Testing Phase (CS 411)
5001 - Identify and contract technical support
5003 - Refine system specifications
5002 - Refine budget proposal
5004 - Produce user's manuals
5005 - Produce prototype
5006 - Production development specifications
5007 - Prototype testing
5008 - Project complete
Webpage Development
Summary
Milestone
Subtask
4/15/03
5
Research Plan
Chris McKee, Research Mgr
• Identify Problem Statement
• Gather Data to Support Problem
• Strategy
– Contact The Virginian-Pilot’s Marketing Department
– Conduct online data for Food Retail studies
– Analyze gathered data
– Compile data and format to support problem statement
4/15/03
6
Problem Statement
Without innovative features and
services, Farm Fresh is unable to
differentiate itself from other
grocers and compete against the
supercenter giants like Wal-Mart
4/15/03
7
The Competition
South Hampton Roads Market
Year 2002 vs. 2001
Traditional Grocers
Farm Fresh
Be-Lo
Food Lion
Kroger
Harris
Teeter
Wal-Mart
Supercenter
.1%
Sales Growth
5%
Shopper Growth
3%
10%
Primary Farm
Fresh Shoppers
4%
4/15/03
Source: Food World, June 2001 and 2002 editions & The Scarborough Report, 2002
22.5%
8
Goals
• Farm Fresh
– Integrate new and
innovative technology
– Help set them apart
from other traditional
grocery stores and
compete against the
Supercenter giants
4/15/03
• Shoppers
– Provide a mobile,
multi-featured,
shopping assistance
tool to enhance their
shopping experience
and increase
customer satisfaction
9
Product Development Plan
Kevin Jones, PD Mgr
•
•
•
•
Identify Key Features
Identify Competition
Identify Risks (Mitigators)
Identify Benefits
4/15/03
10
Product Description
4/15/03
11
Benefits
• Shoppers
– On-site assistance
– Greater self-reliance
– Faster Shopping
• Retailers
– Differentiate from
competition
– Increase Customer
Satisfaction
– Generate revenue
– Data collection
• More efficient
• Comprehensive
4/15/03
12
• Theft
Risks
– Permanently Mounted
• Damage
– Rugged Materials
• Reliability
– Basic Features
• Competition
– Free Service to Shoppers
• Reluctance to use
– Technically Adverse – Easy to use
– Privacy Concerns – Loyalty Programs
4/15/03
13
Marketing Plan
Mattanyah Woodbury, Marketing Mgr
•Identify Primary Market
Farm Fresh Grocery Chain
•Identify Secondary Market
Farm Fresh shoppers, manufactures of products
•Justification of Primary Market/Secondary Market
Why the PSA is a good match for Farm Fresh
Identify consumers needs and wants
Identify Flagship Store (Gean Walter Market Place)
•Strategy
Survey Shoppers:
Paper & Web
200 Survey Results
Interviews of Farm Fresh Executives:
Head of Consumer Affairs-Susan Mayo
Store Director of Farm Fresh #40 - Terri Estill
Store Director of Gean Walters - Colleen McCabe
4/15/03
14
Survey Results
200 Respondents
48% Male
52% Female
54% 18-34 y.o. 30% 35-54 y.o. 16% 55+
47% Single
53% Married
67% Primary Shopper of Household
75% Other household members shopped
4/15/03
15
Identified Problems
RESEARCH: Difficult to locate products
SURVEY: 84% had difficulty in the past finding the products
RESEARCH: Takes too long to get out of the store
SURVEY: 85% would like to spend less time in the grocery store
RESEARCH: Unsure of how much total will be
SURVEY: 86% would find it beneficial to know running total as they
shop
RESEARCH: Deterioration in customer service
SURVEY: 78% would like better customer service in grocery stores
4/15/03
Source: The American Customer Satisfaction Index
The Food Industry Center's 2001 Supermarket Annual Report
16
Survey Results
• 95% Utilize the internet at least once a week
• 80% Use a Shopping List
• 77% Forgotten Shopping List
• 77% Forgotten when they last bought an item
• 72% Find it beneficial to have a map
• 64% Use Coupons
• 63% Do Not know Store Specials
• 53% Use a technical device (computer, PDA, etc)
• 47% Do Not believe items have accurate price
labels
4/15/03
17
Survey Results
• 70% Would use a
technical device that
would make shopping
more convenient
4/15/03
18
Why Farm Fresh ?
•
•
•
•
•
•
Locally Headquartered
37 stores
Total Sales: $420 Million
Net Profit: $228 Million
Innovative Technology
Vision Statement:
– Our goal is to serve the customer to our
greatest ability
Source: MEDIA GENERAL FINANCIAL SERVICES INC, 27 July 2002
4/15/03
19
Interview with Farm Fresh
President
• “….if you don’t have any other way to
differentiate yourself from the
competition, other than claiming to be the
lowest price, then all you’re saying is ‘Me, too.’...”
• “….you have to be able to save the customer
both time and money and you have to make
the customer feel good.”
• “….you are going to continue to see
opportunities for growth and what we are
looking at today are ... opportunities that
may be out of the mainstream.”
4/15/03
Source: Food World, June 2001
20
Interviews with Farm
Fresh Executives
• “The President of the company always wants the
company to be on the cutting edge of everything.”
– Terri Estill Store Director #40, 16 years in the field
• “It would assist, as well as add to the shopping
experience, ...it would be a faster way to shop.”
– Susan Mayo, Head of Consumer Affairs
• “No way, we would go with the PSA ... because all
customers do not own PDA’s and we would not want
[shoppers] to be at a disadvantage.”
– Collen McCabe, Store Director Gean Walters, 14 yrs experience
4/15/03
21
Online Shopping & PSA
Similar Features
•
•
•
•
•
•
•
•
Personal shopping history
Shopping list
Running total
Nutritional information
Specialty ordering
Data collection
Store specials
Free service
4/15/03
22
Added Features of PSA
•
•
•
•
•
•
Specialized Advertisement
Precise Data Collection
Enhances in-store shopping experience
Coupon Scanning
Product Locator
Store Map
4/15/03
23
Technical Plan
Cleveland Burnett, Technical Mgr
• Identify General Technical Components
• Identify Specific Components
– Justification Criteria
• Data-Flow Diagram
• Interview Technical Experts
–
–
–
–
4/15/03
Tim Clark, Director of Retail Technologies at Farm Fresh
Gary Kinsey, Director of Web Services at Farm Fresh
Dr. Larry Wilson, Old Dominion University (Wireless Networks)
Dr. Stephan Olariu, ODU (Mobile Computing, Wireless Networks)
24
Technical Layout (Unit)
PC
Tablet
UNIT
Scanner
Network
Interface
•Touch Screen (Display/Input/Login)
•X-Pilot Wireless Mobile WinCE Tablet
– CPU (Intel Strong ARM 1110) – OS (Windows CE 3.0)
– Hard Drive (20 Gig HD)
– RAM (128 SDRAM)
– Software (PSA Software)
–Power Supply ( 4-cell Li-ion Battery Pack) Power up to six hours
•
Scanner (Input) – Opticon MSH 220 “Smart” Wand
•
Network Client Device – Orinoco World PC Card
4/15/03
25
Technical Layout (System)
Existing
Customer
Off-Site
New
Point of Sale Units
Network Devices
PSA
PSA
Store’s
Database
Server
Network
Devices
PSA
PSA
WIRELESS ACCESS POINTS:
Network Device – Symbol AP-4121 (Three access points)
4/15/03
©2003 Symbol Technologies All Rights Reserved
26
Design Dimensions
Scanner
6.25 in
Display
9.5 in.
Weight: 2.4 lbs
4/15/03
27
Data Flow Diagram
Request A Feature
Customer
GUI translation
To/from Data
Feature displayed
Data
Wireless
Transmission
Requested
Query
Query
Results
4/15/03
Store’s Database
Data
Request
28
Organizational Plan
Jeremy Allen, Documentation Mgr
• Identification of Required Staff
– Skills by Task
– Groups by Skills
• Assignment of Tasks
– To Individuals
– Determine Length of Employment
4/15/03
29
Organization by Groups
Project Manager
CIS Group
Technical Analysis
Group
Marketing Group
Project Support
Consulting Group
Installation Group
Customer Training
Support Group
4/15/03
• Phase 0 Groups
–
–
–
–
Marketing
Technical
CIS
Project Support
• Phase 1+ Groups
– All Groups Active
30
Personnel Requirements
• Project Manager
• Marketing:
– Marketing Manager
– Researcher
• Technical Analysis:
– Technical Manager
– Technical Analyst
• CIS:
–
–
–
–
–
4/15/03
CIS Manager
Programmers (6)
Hardware Engineers (2)
Software Engineers (4)
Support Specialists (2)
• Project Support:
–
–
–
–
Technical Writers (2)
Financial Manager
Accountant/Auditor
Lawyer
• Installation:
– Installers (5)
• Training/Support:
– Training/Support Staff (5)
31
Daily Salaries by Title
Personnel
Project Manager
Researcher
Marketing Manager
Technical Manager
Technical Analyst
CIS Manager
Computer Programmer
Hardware Engineer
Computer Support Specialist
Technical Writer
Installers
Customer Training/Support
Lawyer
Financial Manager
Accountant/Auditor
Salary
$288.56
$219.92
$326.00
$342.40
$243.76
$342.00
$236.16
$266.88
$178.16
$185.76
$168.56
$176.00
$332.80
$297.04
$190.88
Salary + Overhead
$403.98
$307.89
$456.40
$479.36
$341.26
$478.80
$330.62
$373.63
$249.42
$260.06
$235.98
$246.40
$465.92
$415.86
$267.23
Bureau of Labor Statistics
4/15/03
32
Funding/Budget Plan
Steve Eleyet, Financial Manager
• Identify Funding Agency for SBIR
– Identify Funding Limits, Timeline, Documentation Required
• Identify Work Breakdown by Phase
• Identify Budget by Phase
– Utilize U.S. Labor Statistics & Product Pricing
• Profit Projections for Production Out-Years
4/15/03
33
SBIR Funding -
National Science Foundation
• SBIR for NSF Topic: IT, subsection C3
–
–
–
–
Electronic Commerce and Collaboration
Customer Advising and Service
Marketing
Merging of E-Commerce with In-Store
Shopping Experience
Source: NSF SBIR Program Guide, NSF SBIR Topics
4/15/03
34
NSF SBIR
Funding Amounts
• Funds Provided Upon Acceptance
– Phase 0 – Concept Development
• $ 100, 000 for 6 months
– Phase 1 – Proof of Concept
• $ 500,000 for 12 months
• Additional $250,000 for 12 months
4/15/03
35
SBIR Phase 0
WBS
ID
January
Task
28
30
February
3
10
17
March
24
3
10
17
April
24
31
7
14
21
May
28
5
12
19
26
0.0 Concept Development
0.1 Project Initialization
0.2 Marketing Plan
0.3 Resource Assessment
0.4 Feasibility Presentation
0.5 Product Development
0.6 Project Budget
0.7 Milestone Presentation
0.8 Funding/SBIR Proposal
0.9 Legal Services
0.10 Final Approval Presentation
0.11 Develop Website
Summary
Milestone
Subtask
4/15/03
36
SBIR Phase 1
WBS
ID
May
Task
5
12 19 26
June
2
9
16 23 30
July
7
14 21 28
August
4
11 18 25
1.0 Prototype Development
1.1 Contract Technical Support
1.2 Refine System Design
1.3 Prototype Construction
1.4 Documentation
1.5 Customer Training
1.6 Prototype Testing
1.7 SBIR Proposal Phase II
Summary
M i lestone
Subtask
4/15/03
37
SBIR Phase 2
2003
ID
Task
2004
2005
S O N D J F M A M J J A S O N D J F M A M J J A
2.0 Production
2.1 Contract Acquisitions
2.2 Personnel Hiring
2.3 Material Acquisitions
2.4 Systems Production
2.5 Systems Installation
2.6 Customer Training
2.7 Testing
2.8 Technical Support
Summary
Subtask
Milestone
4/15/03
38
Budget – Phase 0
Concept Development
Project Initialization
Marketing Plan
Resource Assessment
Feasibility Presentation
Product Development
Project Budget
Milestone Presentation
Funding/SBIR Proposal
Legal Services
Final Approval Presentation
Website Development
Total Phase 0 Costs
4/15/03
$ 7,074
3,230
1,522
6,786
6,821
38,023
6,468
6,476
1,576
6,468
14,878
$ 99,322
39
Budget – Phase 1
Prototype Development
Indirect Costs
Contract Technical Support
System Design
Documentation
Customer Training
SBIR Phase 2 Proposal
Employee Overhead
Total Indirect Costs
Direct Costs
4,561
5,158
11,876
3,357
7,829
60,065
$ 92,847
Prototype Construction
Prototype Testing
Total Direct Costs
Total Phase 1 Prototype Development Costs
4/15/03
$
$ 98,208
23,160
$ 121,367
$ 214,214
40
Budget – Phase 2
Production
Indirect Costs
Acquire Sales Contracts
Hire Personnel
Customer Training
Technical Support
Overhead and Administrative
$
Total Indirect Costs
23,742
14,616
31,810
100,832
594,519
$ 765,520
Direct Costs
Acquire Materials
System Production
Systems Installation
Testing
Total Direct Costs
Total Phase 2 Production Costs (37 Systems)
4/15/03
$
77,552
306,163
176,070
23,690
$ 583,475
$ 1,348,995
41
Profit Projections
Sales Price
$ 49,750
(20 PSA units with hardware and software)
Number of Systems
Total Revenue
Production Costs
x 37
$ 1,840,750
1,348,995
Profit
$ 491,755
Sales to Overcome Initial Development Costs
31.8 systems
Future Break-even Sales
8.9 systems
(After covering initial development costs)
4/15/03
42
Evaluation Plan
• EVALUATE PLANS AT 6 MONTH & ONE YEAR MARKS
–
–
–
–
–
–
4/15/03
Research Plan
Product Development Plan
Marketing Plan
Technical Plan
Organizational Plan
Funding/Budget Plan
43
Evaluation by Research Plan
• Research to determine if Problem
Statement still exists
• Gather Additional Data
• Analyze and Compile New Data
4/15/03
44
Evaluation by Product
Development Plan
•
•
•
•
Conduct Surveys
Gather usage data
Identify use/need of features
Identify New Competition/Track Current
Competition
• Evaluate Mitigators to identified Risks
• Identify New Risks (Mitigators)
4/15/03
45
Evaluation by
Marketing Plan
• Conduct Surveys & Interviews with
Executives
• Gather Financial Data (Sales, Net Profit)
• Evaluate On-line Shopping Feature
4/15/03
46
Evaluation by Technical Plan
• Log maintenance and system failures
• Add new features
• Identify areas for training improvement
4/15/03
47
Evaluation by
Organizational Plan
• Evaluate efficiency of organization
• Maintenance of outside contracts
• Employee Evaluations
4/15/03
48
Evaluation by
Funding/Budget Plan
•
•
•
•
Evaluate SBIR process
Continue SBIR funding
Continue seeking Investment Capital
Farm Fresh’s Return On Investment
– utilizing advertising feature
– utilizing data collection
– analyze sales and profits
4/15/03
49
Questions ???????????
4/15/03
50
References 1
Food World, June 2001
Food World, June 2002
The Scarborough Research Report, 2002
www.scarborough.com
Progressive Grocer, December 2002
The American Customer Satisfaction Index http://www.theacsi.org
The Food Industry Center's 2001 Supermarket Annual Report http://foodindustrycenter.umn.edu
NSF SBIR Program Guide
http://www.eng.nsf.gov/sbirspecs/Program/program.htm
NSF SBIR Topics
http://www.eng.nsf.gov/sbirspecs/IT/it.htm
Bureau of Labor Statistics
http://www.bls.gov/oes/2001/oes_dl.htm
Occupational Labor Rates for Virginia:
Bureau of Labor Statistics, http://www.bls.gov/oes/2001/oes_dl.htm
General and Administrative Expenses from similar companies:
Financial statement (2002) from PSC Inc., retrieved from http://biz,jahoo.com/fin/l/p/pscx.ob.html
Financial statement from (2002) from Metrologic Instruments, Inc., retrieved from http://biz.yahoo.com/fin/l/m/mtlg.html
Office supplies and multifunction printer
www.staples.com
Development software
www.cdw.com
Computer systems for development
http://configure.us.dell.com/dellstore
4/15/03
51
References 2
•
•
•
•
•
•
•
•
•
Technical Interviews:
Tim Clark, Director of Retail Technology at Farm Fresh
Gary Kinsey Director of Web Services at Farm Fresh
Dr. Larry Wilson, Associate Professor at ODU (area of research, Wireless Networks)
Dr. Stephan Olariu, Associate Professor at ODU(area of research, Wireless Networks and Mobile Computing)
User Operated Devices
Touch screens
Touch screens Inc. (http://www.touchscreens.com)
ComReady.com (http://www.comready.com/abxpilwirtab.html)
•
•
•
Barcode Scanners
Register 5
http://www.register5.com/
•
•
•
•
•
Wireless System
Access Points
Client Devices
Register 5
http://www.register5.com/
4/15/03
52
National:
Biggest Threat To
Traditional Grocers
• By 2006, Wal-Mart’s total supermarket-type-merchandise sales
will be one-fourth of the total volume of the supermarket industry
• This means at least 1,800 supermarkets must close over the next
five to six years (annually, that translates to 350 to 400 store
closures)
• One in 18 supermarkets operating today will shut down to
accommodate Wal-mart in the marketplace. In South Hampton Roads
that equates to 9 stores shuttered
Source: Progressive Grocer, December 2002
4/15/03
53
Internet Access & Usage
Online/internet access
used in past 30 days
Age:
18 to 34 years old 39.7
40.3
35 to 54 years old 47.7
47.4
55 years old and over
12.7
12.3
1 to 2 persons
40.2
39.5
3 to 4 persons
44.4
44.5
Any child in household
47.7
47.9
Single
27.5
28.4
Married
61.6
60.6
< $50,000
33.6
32.9
$50,000 to $74,999
26.2
26.0
$75,000 to $149,999
32.6
33.1
Household size:
Marital status:
Household income:
4/15/03
Source: U.S. Census Bureau, Statistical Abstract of the United States: 2000
54
Personnel Costs
Personnel
Phase 0
Project Manager
$11,253.84
Researcher
$3,518.72
Marketing Manager
$6,194.00
Technical Manager
$7,875.20
Technical Analyst
$4,143.92
CIS Manager
$5,472.00
Computer Programmer$15,822.72
Hardware Engineer
$0.00
Computer Support Specialist
$712.64
Technical Writer
$557.28
Installers
$0.00
Customer Training/Support$0.00
Lawyer
$998.40
Financial Manager
$5,940.80
Accountant/Auditor
$381.76
Salaries Total
$55,550
Fringe Benefits (40%
Overhead)
$22,220
Salaries and Benefits
Total
4/15/03
$77,770
Phase I +
$4,328.40
$0.00
$1,630.00
$13,696.00
$487.52
$6,156.00
$47,940.48
$10,675.20
$12,471.20
$7,430.40
$6,742.40
$8,976.00
$998.40
$3,861.52
$381.76
$120,534
Total
$15,582.24
$3,518.72
$7,824.00
$21,571.20
$4,631.44
$11,628.00
$63,763.20
$10,675.20
$13,183.84
$7,987.68
$6,742.40
$8,976.00
$1,996.80
$9,802.32
$763.52
$176,084
$48,213
$70,434
$168,747
$246,517
Phase 0 Phase 1
days
days
39
15
16
0
19
5
23
40
17
2
16
18
67
203
0
40
4
70
3
40
0
40
0
51
3
3
20
13
2
2
salary
$288.56
$219.92
$326.00
$342.40
$243.76
$342.00
$236.16
$266.88
$178.16
$185.76
$168.56
$176.00
$332.80
$297.04
$190.88
55
Competition Matrix
Online shopping lists
Price Checker
Calculates and displays running total of items
in Cart
Personal shopping data available to customer
(w hat and w hen)
Intranet Capabilities(connects to store intranet
only)
Product Locator
Store Map
Specialty Ordering
Nutritional Information
Recall Aw areness
Rew ards for Loyal (frequent/subscribed)
customers
Coupon Scanning
Display store specials
Generalized Advertisement
Product Specific Advertisement
Generic Data Collection
Precise Data Collection(Where item w as in
store, w hat products are compared, time
spent in store)
Mobility
Printers
Self-Check Out
Builds Customer Loyalty
4/15/03
Splash
cs410 Shopping
Aisle
KleverKart SafeWay Shopper Sym bol
PSA
Cards Scanners Kiosks E-Grocer
PSA
Magellan
PDA
PSS
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
O
O
X
X
X
O
X
X
X
X
X
X
O
X
X
F
X
X
X
X: standard O: optional F: future
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
F
F
X
X
X
F
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
O
X
X
56
Wal-Mart Food Sales
South Hampton Roads:
(SALES IN MILLION $$)
2000
Sales % growth
2001
Sales % growth
2002
Sales % growth
Traditional Grocers/Food
Retailers
Sales in South HR
$2063.6 (1.13%) $2101.5 (1.83%) $2166.5 (3.09%)
Wal-Mart
Sales in South HR
$118.4 (4.31%)
25%
Wal-Mart’s
sales growth 20%
has outpaced
15%
the growth of
traditional 10%
grocers and
other food
5%
retailers.
0%
4/15/03
$142.5 (20.35%) $174.5 (22.45%)
The Sales Growth Story
Traditional
Grocers
Wal-Mart
2000
Wal-Mart’s pace of
annual growth
over 20%
2001
2002
57
Source:Food World June publications
Food World Reports
South Hampton Roads
Store
2002 Sales 2001 Sales Market
% Change
Share ($2,244
2002
m illion)
2001
($Million)
($Million) 2002vs.2001 Locations Locations
Wal-Mart
$174.50
$142.50
22.5%
8*
7
Food Lion
$589.10
$580.50
1.5%
60
58
Farm Fresh
$420.00
$420.30
-0.1%
26
26
Kroger
$112.00
$112.60
-0.5%
8
8
Harris Teeter
$66.40
$67.10
-1.0%
4
4
Be-Lo/Fresh Pride
$26.30
$27.20
-3.3%
6
9
*Note: 6 of the 8 Wal-Mart stores are Supercenters
Wal-Mart’s astronomical growth took place at the cost of traditional
grocers’ business.
Source: Food World, June 2001 and 2002 editions
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Food Stores Shopped Past
Week
% of South Hampton Roads Adults
Wal-Mart Supercenter
Harris Teeter
Farm Fresh
Food Lion
Be-Lo/Fresh Pride
2001
2002
% Change
27%
10%
56%
70%
8%
30%
12%
51%
64%
2%
3%
2%
-5%
-6%
-6%
Wal-Mart Supercenter had the highest growth in weekly shoppers past
year and it is feeding from the traditional Grocers’ business.
Source: The Scarborough Report, 2002
“Hampton Roads alternate market, led by Wal-Mart, has continued to eat
away at supermarket business and drive down prices in the region.”
Food World June 2002
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Farm Fresh Primary
Shoppers
Shopped Past Week
Harris Teeter
Wal-Mart Supercenter
Be-Lo/Fresh Pride
Food Lion
2001
2002
6%
19%
8%
70%
12%
23%
5%
57%
% Change
6%
4%
-3%
-13%
Farm Fresh primary customers are less likely to shop at Food Lion and Be-Lo.
However, more of the Farm Fresh primary customers are also now shopping at
Wal-Mart Supercenter and Harris Teeter.
Source: The Scarborough Report , 2002
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Opportunity : Niche Market
South Hampton Roads
Women
Military: Active Duty
Race: Black/African American
Households with children
Wine buyers
Senior Citizens (Age 60+)
% of Primary
% of Primary
% of SHR
Farm Fresh
Farm Fresh
Adults Customers Customers 2002
2001
2002
40.2
51.2
53.3
10.1
11.4
11.7
29.4
29.7
35.2
46.3
47.2
53.7
38.4
36.3
43.5
12.9
15.4
16.6
Source: The Scarborough Prime Next Report, March of 2002 and 2001
Farm Fresh can protect and further grow these niche customer segments.
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2002 Scarborough
Research Report 1
AREA:
The Norfolk-Virginia Beach-Newport News
DMA (Designated Market Area)
PERIOD:
April 2001 through March 2002
METHOD:
Respondents selected by a random sampling
procedure. Phase I: Telephone interviews. Phase
II: Mailed self-completion questionnaire
concerning shopping and purchasing behavior and
television diary. A monetary incentive and a
reminder mailing are used as prompts.
SAMPLE:
2,000 adult interviews balanced by age, sex,
geography, race, household size, and education
RELIABILITY:
Statistical chances are 95 out of 100 that
percentages in this survey will not vary by more
than plus or minus 2.2 percentage points from the
findings of a complete census.
2002 Scarborough
Research Report 2
AREA:
The Norfolk-Virginia Beach-Newport News
DMA (Designated Market Area)
PERIOD:
April 2000 through March 2001
METHOD:
Respondents selected by a random sampling
procedure. Phase I: Telephone interviews. Phase
II: Mailed self-completion questionnaire
concerning shopping and purchasing behavior and
television diary. A monetary incentive and a
reminder mailing are used as prompts.
SAMPLE:
2,000 adult interviews balanced by age, sex,
geography, race, household size, and education
RELIABILITY:
Statistical chances are 95 out of 100 that
percentages in this survey will not vary by more
than plus or minus 2.2 percentage points from the
findings of a complete census.
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