Superior Supermarkets Essay

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Running Head: Superior Supermarkets Superior Supermarkets Davenport University MKTG 610 Date Case Synopsis A quarterly review by Hall Consolidated is scheduled to discuss performance in District III. District III includes fifteen Superior Supermarkets located in Centralia, Missouri. The district manager for these stores, Randall Johnson, has requested that these three locations implement an everyday low pricing strategy since these stores are the highest priced supermarkets in the Centralia market. His is concerned that because of increasing consumer price consciousness, they may lose market share. Centralia store’s sales have been below budget for the last quarter of 2002 and this first quarter of 2003. Still, operating margins are near plan due to sales of slightly higher gross margin items and a reduction in operating expenses. They have also had a higher customer count for this first quarter (Kerin & Peterson, 1998/2010, pp. 484-495). Market Conditions Centralia, Missouri had food and beverage sales of $62.3 million in 2002, which was a 4.6 percent increase over the previous year. Superior and three other major competitors, Harrisons, Grand American, and Missouri Mart account for eighty-five percent of food sales in Centralia. 41.6 percent of Centralia’s population is between the ages of twenty-five and fifty-four. 30.6 percent of household income is between $15,000 and $34,999 and 39.6 percent is between $35,000, and $74,999. In 2002, Superior held an estimated twenty-three percent of the food sales market, Missouri Mart had twenty-seven percent, Harrison’s had twenty-two percent, and Grand American had thirteen percent. However, these competitors draw customers from larger geographic areas than Superior (Kerin & Peterson, 1998/2010, pp. 484-495). Competition Superior executives consider Missouri Mart to be their primary competition since

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