Reed Supermarket Essay

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Group – 8 Group Work Date: 01/02/13 Topic: Development of marketing strategies & Plans Case Study: Reed Supermarkets: A New Wave of Competitors Problem statement: Reed wants to increase its market share by 2% (from existing 14% to 16%) by 2011 when economy is passing in recession without opening new stores in Columbus. Reed’s Position in the Columbus Market: With emphasis on quality & service I its operations & advertising, Reeds offers retail food products in attractive stores. Reeds had 15% market share in 2005 & it lost 1% market share in last five years making it 14% market share in 2010. Reed supermarket still enjoys first position in the Columbus market by the market share. Reed’s executives attributed decline in sales in last five years to encroachments by superstores & warehouses. Because of Reed’s emphasis on the quality & service, customers perceive its prices to be high & same was endorsed by a study. Because of higher prices & its full service offerings, Reed’s average value per transaction was higher than the national supermarket average. There are many competitors in the Columbus market which had different positioning as compare to Reed supermarket. The details of major competitors are as follows, a) Delfina was considered high-end & had 9.58% market share b) Galaxy Chain had medium-end products, was poorly located & marginally profitable. It had market share of 10.7% c) TopVal offered everyday low pricing & had market share of 10.23% d) Whole foods markets: Relatively new but fast growing entrant in already crowded upper-end market with market share of 1.2% e) Dollar stores with less than 1% market share. But they were expanding rapidly & targeting price- sensitive market. Apart from encroachments by competitors in the retails stores, there have been few changes in the customer preference in last five years

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