Student Case Study Competition 2014
Proudly Sponsored by the Asparagus Club*
Case Overview
Competing directly with Kroger, Walmart, Giant Eagle and others, Fresh Encounter, Inc. faces
formidable competition. A family-owned and managed food retailer, Fresh Encounter's stores operate
under various local banners emphasizing personalized service, 10 for $10 items specials, fresh-cut meat,
community involvement, private label products, and locally grown produce.
(http://www.communitymarkets.com/)
Currently, Fresh Encounter is considering their "Local" strategy. Like many food retailers, Fresh
Encounter, Inc. tries to source some locally grown produce, meat and dairy. More recently, Fresh
Encounter has expanded their local presentation to include a modified CSA (Community Supported
Agriculture) effort, ‘Grow For It’, that may be a basis for additional differentiation.
However, Michael Needler, President of Fresh Encounter wonders if there are other opportunities to
expand their local offering. If so, which categories might make sense? And how would such a
merchandising strategy be incorporated into Fresh Encounter's larger marketing strategy? Costs, of
course, are a consideration. And, importantly, so are Fresh Encounter's consumers.
Students will be asked to analyze the data provided in the case1 to develop their recommendations for
Fresh Encounter, Inc.
Main Issue
This case deals with the challenges and opportunities “Local” offers independent grocers. When
considering "local", student teams should make their recommendations for merchandising strategy, as
well as support their recommendations with thoughtful analysis incorporating both the data and
interview supplied by Fresh Encounter management together with secondary data. Other elements of
the retailer’s marketing mix should be also considered, but time constraints will require teams to
determine the most critical elements to be presented.
Motivation
“Local” is recognized as a major trend for the retail food marketing channel. Over the last few years it
has developed from denoting seasonal, limited and non-traditional direct-to-consumer products to a
life-style marketing concept. Local as a phenomenon is an integral part of major marketing trends
recognized by NGA’s annual consumer panel such as; health and wellness, food safety, home
preparation of meals, and food quality and safety. Furthermore it can, and is often used, as a vehicle to
increase personalization of a grocer’s relationship with its customers. “Local” has become part of the
playbook for many food/CPG retailers and certainly independent grocers have played their part in its
popularity with shoppers and consumers.
1
See Data Requirements for the type of external data allowed.
It is however equally clear that the decision to purposefully include local products as part of
merchandising reaches beyond only merchandising and promotional decisions. Sourcing local products
has a direct effect on operational domains such as supply chain management, vendor relationships,
store atmospherics, in-store promotions, and marketing campaigns. As such, “local” has now a distinct
strategic charge. Importantly, the emphasis placed on “local” by consumers advances it as a valuable
resource to establish competitive advantage.
Given these market realities the case sets out to investigate not only the practicalities of establishing a
“local” strategy for an independent grocer, but also how such a strategy could (or should) be integral
part of the independent grocer’s business model. The ultimate objective is to determine how “local” can
be a way to differentiate from national chains and possibly also from specialty stores such as Whole
Foods.
Parameters
The case will be set in the context of an independent supermarket operator. This holds that the solution
of the case is not to change the business model of the store into an epicurean or specialty store. The
end-strategy should still be one that is based on a full assortment supermarket-style retail operation.
Students are asked to develop a strategy for sourcing, merchandising, promoting, and implementing an
integrated “local” campaign. The students are free to decide on the level of integration of their
solution. In line with the main question, they have to decide, based on the data, the extent of product
merchandising, cross-department implementation, and its effect on the brand image and messaging of
the retailer.
The team presentation is limited to a 15-minute presentation, with an additional 5 minutes for
questions and answers. Given the relatively short presentation time, it will be up to the student team to
determine what they believe to be the most critical elements of their recommendation and to present
those elements. If handouts are given to the judges, only information presented should be contained in
those handouts (so, no extra material may be included in the handouts given to judges).
There is no limit to the number of students on a team; HOWEVER, the presentations are limited to 4
undergraduate students. Graduate students may also work on the case competition; however, the
number of graduate students working on the case may not exceed the number of undergraduate
students on the team.
Tasking of Case Teams
Students will be offered data on the existing “local” aspects of the retailer’s current operations and
assortment, and opportunities to expand those offerings. Next, the students will be challenged to
investigate how the retailer can use “local” to develop a local shopping experience and so an alternative
to national chains. Finally, the students will be asked to integrate the different elements of their
solution into a defined set of recommendations with the associated performance improvements
anticipated for a number of KPI’s provided in the case.
Data Requirements
All company data will be provided in the case. Students may seek external, secondary data. HOWEVER,
there are some important restrictions to external data collection that are outlined below. Student
teams must adhere to these restrictions. Noncompliance may result in team disqualification from the
case competition.
 Student teams should not contact any personnel of Fresh Encounter, Inc or its stores.
 Student teams should not collect any data directly related to Fresh Encounter, Inc or its stores.
 Student teams should not contact any consumers of Fresh Encounter's stores
 Until the date of the case competition, student teams should not frequent Fresh Encounter's
stores
Again, teams who have violated any of the above restrictions will be at risk of competition
disqualification.
Date
The competition will take place during the NGA Show in Las Vegas. All teams will present on February
9th. The final round of presentations will be held Monday, February 10. Winning team will be
announced and recognized at the Chairman’s Dinner and Gala, February 11 at the NGA Show. The
competition, generously sponsored by the Asparagus Club*, awards up to $4,000 for winning teams of
four students.