Tacting for gaining Market Share

Growing Market Share While Staying True NGA 2013

Saracen Consulting Company Presented By: Ryan Dach, Jacob Luna, Lindsey Maresh, and Jarrod Taylor

The Question Posed… 

Chief Super Market, Inc.

(Defiance, Ohio) a twelve store independent “….exists to delight customers with great food and experiences." The company would

like the students to use their imagination to determine what the company should do to fulfill the mission and grow market share.

Chief Super Market Mission Statement:  “To

treat all parties involved in our business… fairly, honestly, and with respect for their contribution to the success of the company…”

Store Information Store Type

Location

Sq. Ft.

Chief Supermarket

Celina, OH

22,600

Chief Supermarket

Coldwater, OH

20,745

Chief Supermarket

Defiance, OH

31,000

Chief Supermarket

Bryan, OH

30,000

Chief Supermarket

Wauseon, OH

32,700

Chief Supermarket

Paulding, OH

15,200

Chief Supermarket

Delphos, OH

24,000

Chief Supermarket

Napoleon, OH

31,000

Rays Market

Lima, OH

31,240

Rays Northland

Lima, OH

24,000

Rays Eastgate

Lima, OH

52,000

Rays Clocktower Plaza

Lima, OH

40,000

Grocery Industry Market Forces Location of Stores

Demand Fluctuation

Industry Competition

Consumer Disposable Income

Consumer Behaviors

Industry Rivalry – Existing Competition

 Competition



within the Industry:



CR10 = 69% in 2010



Dominated by multiunit and Regional Supermarket chains

Within N.W. Ohio: 

Stagnated population in area



Market Saturated with competition

Industry Rivalry - Stagnated Market 

Negative to flat population growth in N.W. Ohio



Stores located in Counties: 

Bryan, OH: -3.9%



Lima, and Delphos, OH: -2.0%



Defiance, OH:-1.2%



Celina and Coldwater, OH: -0.3%

Industry Rivalry - Saturated Market 

Defiance, OH



Lima, OH

Industry Rivalry – New Competition  Threat

of Substitutes:



Substitutes for Grocery stores are growing



More are carrying essential goods

 Threat

of New Entrants:



Corner Stores and Dollar General repositioning



Whole Foods type stores entering the area

Industry Force - Consumer Behavior 

Consumers have increasing number of options



Many stores trying to carry more convenience offerings to cater to consumers 

Pharmacy



Banking



Gasoline



Oven-ready Prepared Foods

Bill and Marge (50+) 

Spend an average of 40 minutes in store



Very brand loyal



Spend 50% of income on food



Pick and choose products based on individual lifestyle



Dominate food spending

Experienced Kyle and Hannah (35-50)



Spend an average of 40 minutes in store



Value price over convenience



Value product information



Focused on feeding families



Educated

Young Kyle and Hannah (20-35) 

Spend an average of 43 minutes in store



Only buy 41% of food at traditional store



Need instant access and convenience



Natural, organic and flavor mean a lot



Prefer deals over brands

BCG Matrix

Industry Growth Rate

Relative Market Share

2 %

1

SWOT 

Strengths 

Sales Promotions/PR



Product Variety



High Quality fresh and prepared foods



Good In-store Customer Service

SWOT 

Strengths Sales Promotions/PR  Product Variety  High Quality fresh and prepared foods  Good In-store Customer Service 



Weaknesses Low total value image  Perception of high price  Perception of lack of vegetable variety  Scarce Firm Resources compared to competitors 

SWOT 



Opportunities 

Growth of “Small Format” stores



Changing Shopper trends



Recession Mindset



Repositioning stores as wellness and nutrition



Expansion of fresh food departments

Threats 

Increasing competition



Rising Costs



More Rivalry



Mature Industry

The Problem 

Chief is not the first choice in most items.



Not the first choice for most consumers.



Bill and Marge (50 & Up) are the most frequent shoppers.



Chiefs is not the first choice among Kyle and Hannah (20-50)

Solution 

Not a “One Size Fits All” problem



This has become a question of marketing and the solution lies within the four Ps of marketing.



We are offering solutions based on price, promotion, and product



In each of these sectors we have broke it down into tactics implemented in the short term, mid-term, and long term

Strategy and Tactics

Strategy Statement

Current Strategies 

High Quality Food



Great Experience



Community Involvement

Strategy Statement

Strategy Statement Hometown

Social

Wholesome

Fun

Store of Experiences

Market Development Experience Short Term Adult Beverage Tasting

Medium Term

Long Term

Short Term 

Adult Beverage Tasting



Appeals to men and women 

Beer Around the World



Held every other month



“Ladies Night” Wine Tasting

Estimate 30 participants

Market Development Experience Short Term

Medium Term

Adult Beverage Tasting

Cooking Events

Long Term

Medium Term 

Annual BBQ Cookoff 

Chief is already well known for it’s quality meat.



Attract new consumers

Cooking Events 

Bi-monthly Cooking Classes 

Engage community with fun classes



Increase basket size and trial use

Market Development Experience Short Term

Medium Term

Long Term

Adult Beverage Tasting

Cooking Events

Contest Rewards

Long Term 

Contest Rewards Cards

Revamp the current loyalty program 

Use for data collection to better serve customers



Can be used in cooperation with other tactics

Change Image for Young Kyle and Hannah Through Contests Short Term “Plinko”

Medium Term

Long Term

Short Term New spin on a classic game  Held once a quarter  Customers gain one chip for every $100 spent 

“Plinko”





Eligible for an extra chip with use of loyalty card

Prizes range from a free cookie to “Dinner for Two”

Market Development Contest

Short Term

Medium Term

Long Term

“Plinko”

“Supermarket Sweep”

Long Term 

Annual contest



Contestants drawn on a raffle system 

“Supermarket Sweep”

One entry for every $150 spent



Places 1st-3rd awarded with store credit



Acts as a large draw for surrounding communities

Financials Column1 Expected Gross Income

Adult Beverage Tasting Cooking Events

"Plinko" "Supermarket Sweep"

$960

$1,500

$2,000

$2500

$275.00

$0

$1,600

$1,313

$200

$200

$200

$300

$85

$200

$200

$500

$0

$600

$0

$0

$95

$126

$0

$252

$1,126.00 $2,000.00

$2,364.50

Expenses Inventory Products Promotions Event Supplies Site Rental Employee Time Total Event Expense

$655.00

Net Income

$305

$374

$0

$135.50

ROI

47%

33%

0%

5.7%

Strategy Statement Hometown

Social

Wholesome

Fun

Differentiated

Store of Experiences

Convenient

Market Penetration Products

Short Term

Meals-to-go

Medium Term

Long Term

Market Penetration- Products



“Take me home tonight”



Meals prepared for pickup



Made fresh

Meals-to-go

Market Penetration- Products

Short Term

Medium Term

Meals-to-go

Tent Sales

Long Term

Market Penetration- Products

Tent Sales



Seasonal items



Draw attention

Market Development- Products

Short Term Student Discount Soup & Sandwich Bar

Medium Term

Long Term

Market Development- Products

Student Discount



Offered four times a year



Statewide



Increase college-age foot traffic

Market Development- Products

Soup & Sandwich Bar



In store



Hot & fresh



Convenient meal

Market Development- Products

Short Term

Medium Term

Student Discount Soup & Sandwich Bar

Dinner for Two

Long Term

Market Development- Products

Dinner for Two



Meals prepared for couples



Date night

Market Development- Products

Short Term

Medium Term

Long Term

Student Discount Soup & Sandwich Bar

Dinner for Two

Online Shopping Food Truck

Market Development- Products

Online Shopping



Ultimate convenience



Busy lifestyles



Parents with kids



Not much competition in this area



Implement within 12-18 months

Market Development- Products

Food Truck



Mobile hot spot



Lunch for people on the go



Moving billboard



Gain exposure



Implement within the next 2-3 years

Financials Column1

Meals to go

$12,480.00 Expected Gross Income

Tent sales

$12,000.00

Student Discount

$518,400.00

Soup bar Dinner for two

$18,200.00 $65,000.00

Online shopping

$130,000.00

Food truck

$36,000.00

Expenses

COGS

$7,280.00

$ 5,400.00

Equipment

$1,500.00

$ 3,000.00

Promotion

$250.00

$ 750.00

$6,898.56

$500.00

$1,200.00

$1,500.00

$5,000.00

$ 1,695.60

$ 4,019.20

$ 1,130.40

$3,140.00

$5,887.50

$6,280.00

Employee Time $1,130.40 Event Profit ROI ROI -Program

$3,819.60

$461,376.00

$

-

$10,400.00

$2,000.00

$46,800.00

$

-

$13,860.00

$114,400.00

$

-

$ 8,212.50

$ 22,500.00

$60,000.00

$ 4,154.40

$46,106.24

$6,169.60

$ 2,220.00

37.58%

38.3%

9.76%

43.97%

27%

6.74%

2.36%

132%

76.2%

3754%

169%

319%

111%

3%

Conclusion

Questions?

Sam Houston State University 

Located in Huntsville, Texas



Ag-IT Department 

Over 1,000 Major Students



Degrees offered:  Ag-business  Animal

Science

 Horticulture  Ag-education