“the Dollar Store’s Food and Cigarettes Strategy Is Working”

Not too many people can compare McDonalds with the Cigarette companies. Fiene is comparing the fact that the cigarette companies were targeting young kids with their Cool Joe Camel commercials from the mid to late 90's.

How does a store like Trader Joe’s grow into a billion-dollar company with great ratings and demonstrate outstanding management skills? This company used the approach to stand out by being different as an effective measure to compete with the bigger grocery stores. Trader Joe’s business model intentionally kept the size of its stores small and holds fewer products than the larger grocers. They chose to frequently place new products on its shelves and revise ingredients to meet the customer’s needs. They also sell kitchen-tested products to entice new customers. They have also employed a creative marketing team to announce new private-label products to provide outstanding value. In addition to their unique way of doing business,

The company will lose over 2 million dollars in sales from customers who buy cigarettes and other tobacco products. The overall sales were over 123 billion dollars in 2012 (NY Times, 2014). By October 1, 2014, over 7,6000 stores nationwide stopped selling these products. According to president and CEO Larry Merlo, this is the right decision for the company and customers because selling tobacco does not correlate with their purpose. Be removing the products, they will better serve patients, clients and health care providers (CVS Health, 2014).

Family Dollar’s retail strategy will work in both good and bad economic times. The company’s mission: is to provide our customers with a compelling place to shop, our team members with a compelling place to work, and our investors with a compelling place to invest. Our vision is to be the best, small format convenience and value retailer serving the needs of families in our neighborhoods. (Family Dollar 2012 Annual Report) During the economic downturn, Family Dollar reevaluated the company’s goals. One of the goals the company will be refocusing on will be to build customer

CVS Health announced in 2014 that it wanted to stop selling all tobacco related products. This will affect every CVS location in the United States of America. The problem that arises in the U.S. is the usage of tobacco products. As a successful pharmacy chain and a lucrative company, CVS health wants to do its best to strengthen the health of American citizens. In order to solve the tobacco problem, the health professionals are taking it upon themselves to make a difference. If the distribution of tobacco products come to a halt at CVS pharmacies, consumers will either stop buying the products all together or looking for the products elsewhere.

Dollar General and Family Dollar are not what they claim to be in the view of their customers. As for some items in Dollar General and Family Dollar are seen to be marked up more compared to the same item of better quality at a Walmart Store. If the items bought at a “dollar” store are a dollar there is more likely of a chance that the item will be of low value in the first place, but not all the time. In the true dollar stores like Dollar Tree, there are a lot of “here and there” items that are very well worth a dollar to many people, others not so good of a deal. The same “here and there” items at a Family Dollar or Dollar General are usually known to not be a dollar, but the items are still sold to customers that

I'm by no means suggesting that smokers are headed off to concentration camps and gas chambers, although they might have in Germany because Hitler was a rabid anti-cigarette zealot. Instead, I'm suggesting that the cigarette smoker vilification campaign is something about which we all should be concerned, whether we smoke cigarettes or not. These people who want to control our lives are almost finished with smokers; but never in history has a tyrant arisen one day and decided to tyrannize no more. The nation's tyrants have now turned their attention to the vilification of fast food chains such as McDonald's, Burger King, Wendy's and Kentucky Fried Chicken, charging them with having created an addiction to fatty foods. Thus, the tyrants claim, fast food chains have contributed to obesity-related problems and growing healthcare costs. Like the anti-tobacco zealots they call for regulation, compensation for injury and taxes on foods they deem to be non-nutritious. In

Since the founding in 1959, Family Dollar has succeeded no matter the condition of the economy. Family Dollar’s retail strategy shows to be rather effective in both good and bad economic times. Family Dollar prides the business on being a small convenience store to satisfy the needs of local families, primarily low-income based, in the area with a variety of goods and services. Over the years, Family Dollar has expanded its selection of goods and apparel to include: holiday decorations, home-cleaning products, pet-related products, and health and beauty aids. However, Family Dollar reexamined its product selection, strategy, and store layout due to the economic recession. The poor economy reduced the lower-income customers additional spending

Another problem we have is black children going to the drugstores and finding very cheap food and/or other unhealthy things like beer. “The more accessible a product is, the more likely consumers are to purchase it,” she told Reuters Health by email. “This further contributes to the high toll of tobacco on racial and socioeconomic health disparities.” (Crist, Carolyn, paragraph 12). Like Crist says if a child goes to the corner store and sees that a price on their favorite food has gone down a lot then they will get it. It is a prove fact that when you go to a corner store and find something you want at a low price you’ll buy it, I do it every time. When you live in a neighborhood that has low income like Black neighborhoods then you raise

The Dollar Tree brand of stores has been around since 1986, when Douglas Perry, Macon Brock, and Ray Compton founded the chain as a compliment to their other business, K & K Toys (Parnell, 2014). Through the years, Dollar Tree has acquired several different dollar store and low-end retail chains to grow their business to over 4000 stores (Shetty, 2010). One of the first and most strategic moves that the company made was to shift away from carrying closeout merchandise and to become more of a traditional variety store with a wide variety of basic goods all priced at a dollar or less. To accomplish this change, the chain had to discontinue their current purchasing strategies and had to begin buying directly from manufacturers to change the type of merchandise that they had available for consumers. The second major strategic move involved changing the location of where stores are usually located. Up until this point, the stores had been being in enclosed malls. With this change,

In 1953, Philip Morris had a survey conducted on American’s smoking habits. The only menthol cigarette on the survey and the only one of any importance in the early 1950s was Kool. The survey showed that only 2% of White Americans preferred the Kool brand. By contrast, the survey reported that 5% of African Americans preferred Kools. This small difference in preference was successfully parlayed by Brown & Williamson executives, and later by the tobacco industry as a whole, into the 70% vs. 30% difference that we see today between Black and White menthol smokers,

As the leading manufacturer in the moist smokeless tobacco industry, UST Inc. has long been recognized by its ability to generate high profit using low financial leverage. With a dominant market share of 77%, the company maintains a pricing power that allows it to institute annual price increases without losing costumers. However, UST’s market share was eroded significantly in recent years by price-value competitors who enter the market with lower prices. Although UST responded to these threat by introducing new products, market share still decreased by 1.6% over past 7 years. In addition, UST is also exposed to an unfavorable legislative environment, in which the company is under advertising and product promotion

Threats: RAI’s threats include lawsuits, increase in taxation, competition and product regulation. Over the years, there have been many lawsuits file because of deaths due to cigarette smoking. Litigation will continue to be a problem that the company must deal with. The company has to deal with the unknown of increased tobacco regulations by the U.S. Food and Drug Administration. This is a continued processed that a threat to any tobacco company due to the history of this industry.

At 4:30 p.m. on December 6, 2010, Meredith Collins, VP of Marketing for Reed Supermarkets, walked down the sidewalk of the 10-store strip mall that housed Reed’s Westgate Plaza branch in Columbus, Ohio. Collins didn’t shop; instead she took mental notes about store traffic, first at the Reed store and then at an indirect but increasingly worrisome kind of competitor—a dollar store. The Reed was predictably well lit and inviting, and Collins could see three registers open and two or three customers in line at each. “Not too bad” she thought, “but not what I would hope for at this time of day, this close to the holidays.” She’d felt the same way at two other Reeds

In 1935, GNC was a vision that David Shakarian (founder) could not have possibly imagined in his wildest dreams. At that time, David was following his dream of owning a small health food store, despite the perception that health food was a passing fad at the time. The very first store, which all GNC’s owe their credit to, was called Lackzoom and was located in Pittsburgh, Pennsylvania. Although specializing in a food that his father helped introduce in the United States (yogurt), Lackzoom also sold foods such as grains, honey, and “healthy sandwiches” (Company, 2014). After many hardships and disasters that seem insurmountable, by the 1960’s people began to embrace better nutrition as part of their lifestyle, which meant a growing demand for David’s health food