Superior Supermarkets

4176 Words Aug 11th, 2011 17 Pages
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
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484-495).
Harrison’s was remodeled in 1999 and allots fifteen percent of its footage to a large assortment of general merchandise. They have captured most of the middle and upper income groups with annual incomes of over $40,000. Harrison’s is well managed, orderly, clean, and attractive with a balanced variety of groceries, meats, and produce. Their promotional theme is “Save on the Total,” focusing on everyday low prices. Customers perceive Harrison to have the best overall prices, the best quality, and best variety of meat and produce (Kerin & Peterson, 1998/2010, pp. 484-495).
Centralia’s Superior Supermarkets
Each of Superior’s Centralia stores is older than their major competitors. Each is anchored in a strip mall, owned by Hall Consolidated, which also house a drug store plus two or three other shops. Sales have steadily increased since 2000 and operate with a 28.8 percent gross margin, higher than industry average of 26.4 percent. Below is a breakdown of sales and gross margins for all three stores in Centralia (Kerin & Peterson, 1998/2010, pp. 484-495).

(Kerin & Peterson, 1998/2010, pp. 484-495) Corporate believes that although Superior offers a more limited variety of merchandise than its competitors, they carry a higher quality product particularly in grocery and fresh produce. However, consumer acceptance of their fresh meat, poultry, and seafood

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