How to Do a Case

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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…show more content…
This might help them capture some more of the market shares. This approach would capture the attention of customers who value quality over price and customers who are price conscious, which in turn might create some loyal customers. They might even pass the targeted 16% that the CEO Jack Morrissey has set up, which in turn might give them at least a temporary competitive advantage. (differentiate itself from the other supermarkets) • The company can continue on carrying organic products but they can also emphasize on the healthy aspect of the it, so they could meet the demands of the health conscious Americans. c) Pros and Cons for each of the solutions. • The special dollar approach might confuse customers or tarnish Reed’s image and possibly lower margin as Collins is worried about, but it will help it might increase market share by creating a whole new customer base. • High-end and Low-end operation would capture a new customer base, but might lose some of its current high-end customers they might not properly understand the new approach. • Focus on advertising to health conscious customers could help the company maintain current and possible bring in new customers, but it could very expensive and limit the company’s customer potentials. d) Rationale for choosing one of the solutions, explain how this is the best solution. • Reposition to have both low price and high quality high price products would be the best solution because
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