Reed Supermarkets Essay

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Main players • Meredith Collins, VP of Marketing for Reed Supermarket • Dollar stores are increasing competitor→The Dollar General (DG), , Family dollar, Aldi poses threat due to its remarkable low price, • Jack Morrissey, CEO of Reed Supermarket • Other supermarkets like Wal-Mart, Costco • Higher-end customers • Food manufacturers—aldi, trader joe’s, sell mostly private label merchandise Limited selection stores a) The main problem or two key problems. • Declining shares in the past in the Columbus, Ohio market—the fight for market share is very intense due to large supermarkets, small regional chains, independents that include lower priced TopVal, mid-range Galaxy (owned by Supervalu), and top-range Delfina, three Whole Foods Market—Wal-Mart Supercenters, four Target Superstores, and one regional chain, Five Warehouse outlets—three Costco and two Sam’s, low-end channels like drug stores and gas stations (COMPETITORS) • Unite States’ consumer price index is flat—customer are not loyal, they have become savvy customers who shop at different stores for a best deal, Warehouse has attract consumer bulk buying shoppers, the growth of private label foods, American consumers has become health conscious—benefiting whole food stores, Trader Joe and others like Reed, • The perceive customer believe that Reed’s products are expensive—and price is indeed higher, main problem pg 6 • Dollar special campaign might tarnish the image of Reed because it is too close to dollar store offerings, it also lower margin but have a potential of increasing market share b) Three (maximum) suggested solutions for either the main problem of for each of the key problems • Continue trying out the “special dollar” operation for a few more months, and make it a permanent operation if it capture more customers for Reed • Reposition Reed to continue having organic and high-end

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