• Want to be known for quality to the customers and with the products provided • Be a major local food store within a year • Increase Total Store Sales by 30% yearly • Increase sales by augmenting advertising each department throughout the store so that customers may be drawn to the sales within each area • Customers can be certain of the principles of integrity and honesty to be upheld by Kents and every employee • Dedicated to customer service and satisfaction and approval • Committed to building and giving back to the community • Everyone local as a broad market focus • Mainly Focusing on: • Clearfield Freeport Center workers • Mothers • Families (Buy in bulk) • Adults above age 25(Those above age 25 are the heaviest consumers at grocery stores) • The Elderly (60+) • Growing chain of stores 5 in total • Has built a name of rapport for a grocery store by going above and beyond for the customer • Able to market to every age group • Focused mainly on families and elderly residents • Not big like box stores (Wal-Mart, Target, etc.) • Small and limited space • Cannot cater to every customer • Cannot carry every brand • Is becoming more known throughout the community • Looking at many places for expansion • Rising economy meaning more people are spending • Not owned by AFS foods so allows for flexibility with local markets and vendors • To be known as a grocery store of good quality • To be a store that sells quality products • Increase in customer service • Gain more customers that don’t want to pay the fee to shop at stores like Costco • Cannot always have lowest prices • Farmers and wholesalers determine prices • Only associated with AFS food distribution Annual US Food-at-Home Spending, by Age, 2012 • <25 $2,197 • 25-34 $3,338 • 35-44 $4,255 • 45-54 $4,369 • 55-64 $3,681 • 65-74 $3,213 • 75+ % $2,643 Source: Jefferies and AlixPartners, "Trouble in Aisle 5," June 27, 2012 145766 www.eMarketer.com Kent’s Primary FOCUS • Wal-Mart • - Location Strengths: 8,970 locations worldwide, 2.2 million employees, each store can carry a wide variety of products, name is well known, corporation • -Net income: 15.69 Billion (2012) • -Total assets: 193.40 billion (2012) • -Revenue: 446.9 billion (2012) • -Weaknesses: Customer Service is low, Preconception that products from them are cheap and of low quality • -Product Strengths: Known as the cheapest prices, Can buy product in bulk, has private warehouse per region • - Product Weaknesses: Not all products are of good quality, No standardization to • Target • - Location Strengths: 1,763 Stores between United States and Canada, 365,000 employees, Corporation, 13 stores in Utah alone • -Net income: $2.929 billion (2012) • -Total assets: $46.630 billion (2012) • -Revenue: $69.865 billion (2012) • -Weaknesses: Not known as a grocery store, focuses mainly on retailing household goods, and clothing with groceries as a side profit • -Product Strengths: Products are of good quality, customer service is good for a corporation • - Product Weaknesses: Pricing might be a little expensive for your household buyer, Utah buyers seek out cheapest prices not usually name brand • Costco • - Location Strengths: 622 locations, 174,000 employees, Known for bulk items • -Weaknesses: Business fee to shop there, Items are always different, never the same • -Product Strengths: Buys in bulk to ensure low prices for customer, Can hold larger quantities, doesn’t just focus on food, Is a wholesaler distributor • - Product Weaknesses: • (Exempted Sam’s Club because of similarity) • 2 years time • Review marketing strategy and allow for change after 2 years • Donate for local organizations (with the consent to promote for the store) • Allow fundraisers to be permitted on premises • Support local charities and religious functions( boy scouts, girl scouts, Cancer awareness, etc.) • Year 1 • Improve ads for a larger marketing radius • Send email to those who want to have ad emailed to them instead of reg. mail • Update Facebook page, constantly for local deals • Have mommy blogs established and linked to Facebook, and reg. webpage • Establish a trend of helping local fundraisers for local organizations (cancer awareness, muscular dystrophy, diabetes, etc.) • Reg. Mailed ad. / expansion of mailing area or selected mailing areas • Year 2 • Begin more open promotions, billboards, Bus. Stop signs • Make a connection with local or regional radio stations to promote shopping at Kent’s/ giveaways, huge sales, shopping sprees. • Facebook 72.1% • Coupons 44.2% • Twitter 41.9% • Respond to shopper-generated questions/complaints 39.5% • Store information 39.5% • Promotional information 37.2% • Targeted ads 34.9% • No answer 25.6% Social Media Marketing Efforts of Food Distribution Companies in North America, Feb 2013 Source: Supermarket News, "2013 Technology Survey" % of respondents Other Local Review Websites Online Community websites Product review websites cooking websites % of respondents Manufacturing websites couponing websites Grocery store websites 0% 20% • Types of websites US shoppers find most helpful when planning grocery shopping trips, Feb. 2012 40% 60% Purchased more store brands in the past year to save money Look at store circular before making shopping list Baby Boomers (45-64) Overall quality of store brand is equal to national advertised brands Millennials (18-29) Got recipe ideas online 0% 20% 40% 60% 80% US CPG Sales Share, by Channel, July 2012 Grocery Supercenter Club Drug Mass Specialty* Dollar 47.9% 18.6% 10.3% 5.8% 5.7% 6.7% 1.9% Note: 52 weeks ending July 8, 2012; numbers may not add up to 100% due to exclusion of convience channel data as it was not fully representative; *includes, but is not limited to, the internet, close-out stores, office supply stores, health food stores, liquor stores and beauty supply stores Source: SymphonyIRI, "Channel Migration: Charting a Course on the Voyage for Value," Aug 15, 2012 • EBSCO • SymphonyIRI, "Channel Migration: Charting a Course on the Voyage for Value," Aug 15, 2012 • Jefferies and AlixPartners, "Trouble in Aisle 5," June 27, 2012, www.emarketers.com • Integrated Marketing Services, "The New Aisle: Emerging Trends in Online Grocery Shopping" conducted by Marketing Analysts LLC, May 30,2012, www.emarketers.com • Supermarket News, "2013 Technology Survey" conducted byPenton Research, March 4, 2013, www.emarketers.com