Q1. What is Reed’s Position in the Columbus market? How does a super market make money? Ans. Reed is considered as market leaders when it comes to product quality and they are high-end grocery store. Competition is present in the Columbus market with Reed’s market share distributed on multiple levels. Every part of the supermarket from parking lot to checkout counter is designed to make you spend more money and buy more food than you need. Customers may go to the store for milk and come away with a pint of Ben & Jerry's (it was on sale), a fresh baguette (it smelled so good), a bag of chips and salsa (for fun), a few cans of soup (while you're here) and a magazine (Jennifer is dating who?!). Altogether the supermarket is retail nirvana.
Q2. What strategy would be most effective for Reed moving forward? Is the strategy defensible? Ans. In my opinion the strategy should be to work on the profit margin. Using the strengths and using them fairly can make a difference. The $ coupon is not a greatest idea for the firm who deals in the top and upper segment of the grocery stores, where quality is the key not the price. There is a very strong chance that Reed can loose the brand image and the reputation of being top class grocery store, which can lead the clients to leave the brand loyalty. Instead of $ discount and concentrate on: 1. Customer focus and satisfaction
2. Product verity
3. Product Specifications
4. Product Quality
6. Store layout
7. Concentrate on Whole Food
Of course customers must see all the efforts Reed is putting in getting them and the way to do it is – Aggressive Marketing Champagne is a way to move forward.
Q3. How serious is the threat posed by dollar stores and Aldi? Ans. $-Store and Aldi are service a totally different segment of the customers and this niche market. Nevertheless, they will surely take customers from Reed, mainly the customers who are on the lower margin...
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