Growing Market Share
While Staying True
NGA 2013
Saracen Consulting
Company
Presented By: Ryan Dach, Jacob Luna,
Lindsey Maresh, and Jarrod Taylor
The Question Posed…
Chief Super Market, Inc.
(Defiance, Ohio) a twelve store independent
“….exists to delight customers with great
food and experiences." The company would
like the students to use their imagination to
determine what the company should do to
fulfill the mission and grow market share.
Chief Super Market Mission
Statement:
“To
treat all parties involved
in our business… fairly,
honestly, and with respect for
their contribution to the
success of the company…”
Store Information
Store Type
Location
Sq. Ft.
Chief Supermarket
Celina, OH
22,600
Chief Supermarket
Coldwater, OH
20,745
Chief Supermarket
Defiance, OH
31,000
Chief Supermarket
Bryan, OH
30,000
Chief Supermarket
Wauseon, OH
32,700
Chief Supermarket
Paulding, OH
15,200
Chief Supermarket
Delphos, OH
24,000
Chief Supermarket
Napoleon, OH
31,000
Rays Market
Lima, OH
31,240
Rays Northland
Lima, OH
24,000
Rays Eastgate
Lima, OH
52,000
Rays Clocktower Plaza
Lima, OH
40,000
Grocery Industry Market Forces
Location of
Stores
Demand
Fluctuation
Industry
Competition
Consumer
Disposable
Income
Consumer
Behaviors
Industry Rivalry – Existing Competition
Competition
within the Industry:
CR10 = 69% in 2010
Dominated by multiunit and Regional
Supermarket chains
Within N.W. Ohio:
Stagnated population in area
Market Saturated with competition
Industry Rivalry - Stagnated Market
Negative to flat
population growth in
N.W. Ohio
Stores located in
Counties:
Bryan, OH: -3.9%
Lima, and Delphos, OH:
-2.0%
Defiance, OH:-1.2%
Celina and Coldwater,
OH: -0.3%
Industry Rivalry - Saturated Market
Defiance, OH
Lima, OH
Industry Rivalry – New Competition
Threat
of Substitutes:
Substitutes for Grocery stores are growing
More are carrying essential goods
Threat
of New Entrants:
Corner Stores and Dollar General repositioning
Whole Foods type stores entering the area
Industry Force - Consumer Behavior
Consumers have increasing number of options
Many stores trying to carry more convenience
offerings to cater to consumers
Pharmacy
Banking
Gasoline
Oven-ready Prepared Foods
Bill and Marge (50+)
Spend an average of
40 minutes in store
Very brand loyal
Spend 50% of income
on food
Pick and choose
products based on
individual lifestyle
Dominate food
spending
Experienced Kyle and Hannah (35-50)
Spend an average of
40 minutes in store
Value price over
convenience
Value product
information
Focused on feeding
families
Educated
Young Kyle and Hannah (20-35)
Spend an average of
43 minutes in store
Only buy 41% of food
at traditional store
Need instant access
and convenience
Natural, organic and
flavor mean a lot
Prefer deals over
brands
BCG Matrix
Industry Growth Rate
Relative Market Share
2
%
1
SWOT
Strengths
Sales Promotions/PR
Product Variety
High Quality fresh and prepared foods
Good In-store Customer Service
SWOT
Strengths
Sales Promotions/PR
Product Variety
High Quality fresh and prepared foods
Good In-store Customer Service
Weaknesses
Low total value image
Perception of high price
Perception of lack of vegetable variety
Scarce Firm Resources compared to competitors
SWOT
Opportunities
Growth of “Small Format” stores
Changing Shopper trends
Recession Mindset
Repositioning stores as wellness and nutrition
Expansion of fresh food departments
Threats
Increasing competition
Rising Costs
More Rivalry
Mature Industry
The Problem
Chief is not the first choice in most items.
Not the first choice for most consumers.
Bill and Marge (50 & Up) are the most
frequent shoppers.
Chiefs is not the first choice among Kyle
and Hannah (20-50)
Solution
Not a “One Size Fits All” problem
This has become a question of marketing
and the solution lies within the four Ps of
marketing.
We are offering solutions based on price,
promotion, and product
In each of these sectors we have broke it
down into tactics implemented in the
short term, mid-term, and long term
Strategy and Tactics
Strategy Statement
Current Strategies
High Quality Food
Great Experience
Community
Involvement
Strategy Statement
Strategy Statement
Hometown
Social
Wholesome
Fun
Store of Experiences
Market Development
Experience
Short Term
Adult Beverage Tasting
Medium Term
Long Term
Short Term
Adult Beverage Tasting
Appeals to men
and women
Beer Around the
World
Held every other
month
“Ladies Night”
Wine Tasting
Estimate 30
participants
Market Development
Experience
Short Term
Medium Term
Adult Beverage Tasting
Cooking Events
Long Term
Medium Term
Annual BBQ Cookoff
Chief is already
well known for it’s
quality meat.
Attract new
consumers
Cooking Events
Bi-monthly Cooking
Classes
Engage community
with fun classes
Increase basket
size and trial use
Market Development
Experience
Short Term
Medium Term
Long Term
Adult Beverage Tasting
Cooking Events
Contest Rewards
Long Term
Contest Rewards Cards
Revamp the
current loyalty
program
Use for data
collection to
better serve
customers
Can be used in
cooperation with
other tactics
Change Image for Young Kyle
and Hannah Through Contests
Short Term
“Plinko”
Medium Term
Long Term
Short Term
New spin on a
classic game
Held once a quarter
Customers gain one
chip for every $100
spent
“Plinko”
Eligible for an
extra chip with
use of loyalty card
Prizes range from a
free cookie to
“Dinner for Two”
Market Development Contest
Short Term
Medium Term
Long Term
“Plinko”
“Supermarket Sweep”
Long Term
Annual contest
Contestants drawn
on a raffle system
“Supermarket Sweep”
One entry for
every $150 spent
Places 1st-3rd awarded
with store credit
Acts as a large draw
for surrounding
communities
Financials
Column1
Expected Gross
Income
Adult Beverage Tasting Cooking Events
"Plinko" "Supermarket Sweep"
$960
$1,500
$2,000
$2500
$275.00
$0
$1,600
$1,313
$200
$200
$200
$300
$85
$200
$200
$500
$0
$600
$0
$0
$95
$126
$0
$252
$1,126.00 $2,000.00
$2,364.50
Expenses
Inventory Products
Promotions
Event Supplies
Site Rental
Employee Time
Total Event Expense
$655.00
Net Income
$305
$374
$0
$135.50
ROI
47%
33%
0%
5.7%
Strategy Statement
Hometown
Social
Wholesome
Fun
Differentiated
Store of Experiences
Convenient
Market Penetration Products
Short Term
Meals-to-go
Medium Term
Long Term
Market Penetration- Products
“Take me home tonight”
Meals prepared for
pickup
Made fresh
Meals-to-go
Market Penetration- Products
Short Term
Medium Term
Meals-to-go
Tent Sales
Long Term
Market Penetration- Products
Tent Sales
Seasonal items
Draw attention
Market Development- Products
Short Term
Student Discount
Soup & Sandwich Bar
Medium Term
Long Term
Market Development- Products
Student Discount
Offered four times a
year
Statewide
Increase college-age
foot traffic
Market Development- Products
Soup & Sandwich Bar
In store
Hot & fresh
Convenient meal
Market Development- Products
Short Term
Medium Term
Student Discount
Soup & Sandwich Bar
Dinner for Two
Long Term
Market Development- Products
Dinner for Two
Meals prepared for
couples
Date night
Market Development- Products
Short Term
Medium Term
Long Term
Student Discount
Soup & Sandwich Bar
Dinner for Two
Online Shopping
Food Truck
Market Development- Products
Online Shopping
Ultimate convenience
Busy lifestyles
Parents with kids
Not much competition in
this area
Implement within 12-18
months
Market Development- Products
Food Truck
Mobile hot spot
Lunch for people on the
go
Moving billboard
Gain exposure
Implement within the
next 2-3 years
Financials
Column1
Meals to go
$12,480.00
Expected
Gross Income
Tent sales
$12,000.00
Student
Discount
$518,400.00
Soup bar Dinner for two
$18,200.00 $65,000.00
Online
shopping
$130,000.00
Food truck
$36,000.00
Expenses
COGS
$7,280.00
$ 5,400.00
Equipment
$1,500.00
$ 3,000.00
Promotion
$250.00
$ 750.00
$6,898.56
$500.00
$1,200.00
$1,500.00
$5,000.00
$ 1,695.60
$ 4,019.20
$ 1,130.40
$3,140.00
$5,887.50
$6,280.00
Employee Time $1,130.40
Event Profit
ROI
ROI -Program
$3,819.60
$461,376.00
$
-
$10,400.00
$2,000.00
$46,800.00
$
-
$13,860.00
$114,400.00
$
-
$ 8,212.50
$ 22,500.00
$60,000.00
$ 4,154.40
$46,106.24
$6,169.60
$ 2,220.00
37.58%
38.3%
9.76%
43.97%
27%
6.74%
2.36%
132%
76.2%
3754%
169%
319%
111%
3%
Conclusion
Questions?
Sam Houston State University
Located in
Huntsville, Texas
Ag-IT Department
Over 1,000 Major
Students
Degrees offered:
Ag-business
Animal
Science
Horticulture
Ag-education
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