Guideline for Superior Supermarket

Individual Case Draft

Outline Below--Fill in the details with bullet points (Max-4 pages)

The outline is suggestive. You may add, subtract, or modify it to how you see the case.

Use the case questions and the excel workbook to help you. Inputs to the excel workbook will be gone over in class on June 15, when you can make any corrections you need to.

1) Situation Analysis

1a) Market

* Area retail sales of $725 million in 2002

* Food and beverage sales of $62.3 milion

* Median age of 35 years

* Median household income of $36,000

1b) Competitors

* Harrisons

* Missouri Mart (Main competitor)

* Grand American

1c) Company

* Smallest of three supermarket chains owned by Hall Consolidated

* Sales of 14 million in 2002

1d) Marketing Strategy

* Spent $127,500 in advertising in 2002

* Promoting that Superior Supermarkets = Superior Value

* Use of newspaper, radio, outdoor

1e) Summary/Possible SWOT analysis

* Strengths: Superior is oldest, 3 stores in different geographical area, Seen as high quality, Renovated stores

* Weakness: High price, limited variety, Spend less in advertising, "Superior Value" is questioned, Only serves the Centralia area

* Opportunities: Increased consumer awareness, Notice others stores weakness and capitalize on them

* Threats: Bad Image with pricing,

2) Problem/Decision Statement

* Failed to reach full sales potential

* Lack of good consumer image

* People considered Superior's price higher than average

* Price is the most important choice for consumers and Harrison's is looked at as best in price

* Superior's slogan "Superior Value" is questioned

3) Decision Alternatives:

* Spend more on advertising

* Use research information