Question

Fred’s Grocery was a small grocery business located in an affluent suburb. It suffered sales declines when a large supermarket chain opened in the near neighbourhood.

Fred initially considered lowering prices and adding new items to compete. This would have meant greater expense and lower margins. However, as a result of a family discussion about the vision, intentions and image of Fred’s Grocery, Fred chose to respond in a less direct, less costly, less risky manner.

Fred and his family determined that what they wanted to do was to serve the convenience needs of local shoppers for specialty and last minute grocery items. This meant identifying the specific needs of a niche market and catering for the needs of that market. Fred was able, as a result of market research, coupled with analysis of his own business structure and strategies, to identify a range of products and pricing structures that would meet the special needs of local customers and would enable him to continue operating a successful business. They predicted that the majority of Fred’s shoppers would spend an average of $12 to $25 per visit, considerably less than at the larger supermarket, but that the store’s operating hours would exceed those of the supermarket.

Comment on how clearly identifying and crystallising Fred’s intentions that enabled Fred to develop strategic plans would help him to stay in business. (75–100 words)

Answer 1

Grocery stores often serve an extensive variety of food and household products but normally they rely on pre-dominantly identical business models and product offerings. However specialty retailers indeed can differentiate their stores through target marketing and unique service offerings.

Thus it’s important to initiate your marketing plan with a wide-ranging overview of conditions in the local marketplace by clearly defining your target market in terms of demographics and diverse geographic conditions. Furthermore effectively examine and evaluate the size of your target market by using statistical data and information available from Bureau of Labor Statistics.

A comprehensive market overview indeed facilitates to efficiently examine and evaluate the existing competitors in the local area and then concentrate on those who presently serve your target market. Thus it’s very crucial and significant to take effective notes on competitors' sizes, product mixes and specialties which indeed can facilitate to develop an efficient strategic plan for your grocery store.

Product and service development are the most crucial elements of comprehensive marketing strategies. Thus it’s important to use the business overview to describe how your offerings of goods and services in a more convincing manner can effectively appeal your target consumers than your competitors.

Furthermore frame appropriate pricing policies and strategies for instance your planned promotional programs, exclusive service offerings etc. Create a SWOT (Strengths, Weakness, Opportunities and Threats) analysis to attain a detailed insight into your present business situation.

Thus it’s important to place more emphasis on marketing plan by effectively and efficiently framing policies and strategies by drafting precise plans for advertising, sales promotions, public relations, pricing and consumer service. Then effectually merge these marketing objectives to efficiently leverage your store's strengths, avoid weaknesses, take benefit of opportunities and avert threats.