Superior Stores Superior Supermarket Case Analysis
Problem Definition
a. Strategic Issues to be Addressed:
• Superior Supermarkets must decide whether or not to pursue an everyday low pricing strategy in its three stores servicing grocery shoppers in the Centralia, Missouri area
b. Goals and/or Objectives:
• Sustain customer loyalty by implementing an everyday low pricing strategy
• Improve the lack of store image through additional advertising
c. Concerns/Constraints, Resource Limitations that Affect Decisions:
• Have the highest prices in Centralia
• Lack a strong consumer image
• Lack of store image and poor positioning (North Fairview)
Review of Situation
a. Organizational Background:
• Superior Supermarkets is a division of Hall Consolidated, a privately owned wholesale and retail food distributor
Hall Consolidated distributes food and related products to some 150 company-owned supermarkets and about 1,100 independent grocery stores in the U.S. and through 12 wholesale distribution centers. Superior is the smallest of the three supermarket chains owned by Hall, with sales of $192.2 million in 2002. “Superior serves small towns in the South Central U.S., and is number one or two ranked supermarket chain in each of its trade markets as measured by market share.” (Retrieved from Kerin & Peterson, p.471 on October 16, 2008)
b. Demand-Market Size:
• Superior Supermarkets serve small towns in the South Central U.S., and is number one or two by market share in each of its respective trade markets.
c. Competition:
• Harrison’s – perceived as having the “best” overall prices with an extremely favorable customer image regarding their everyday low prices
About 15 percent of the store ...