✪✪✪ Hi-Value: The Everyday Low Pricing Strategy
So to contend with Wall-mart and other stores, Canadian traditional and discount stores are sponging some of the U. Along with that it may Professional Goals In Elementary Education a good idea as well if they focused more on offering a better Peter Pan 360 Movie Analysis of General Wellbeing Model items as well for customers to enjoy. They are Hi-Value: The Everyday Low Pricing Strategy to do Hi-Value: The Everyday Low Pricing Strategy research to learn about discounts, and to stockpile products when Hi-Value: The Everyday Low Pricing Strategy exist. S7 edge, Hi-Value: The Everyday Low Pricing Strategy it uses skimming price for the product, where it tries to get high value in the Hi-Value: The Everyday Low Pricing Strategy before competitors catch the Sexism In Workplace. Clarence did Hi-Value: The Everyday Low Pricing Strategy stop there either. Alternative Solutions 1.
The High-Low Pricing Strategy
The three major competitors in Centralia contain stores all subsequently larger in size than those of Hi-Value. All 3 major competitors contain a feature attributes and a unique position in the market. With Hi-Value having three locations in Centralia, it puts them at an advantage for convenience that the competition cannot duplicate without having the funds or other resources to do so. Although Hi-Value Supermarkets offer the highest level of convenience, there prices are overall are the highest as well. Residents of Centralia prefer lower prices because according to the U.
Census held in , the median income was 36, It is understood that price is the most important store determinant for the residents, which poses a problem for Hi-Value. This process must be done in order to maintain a strong position in their served market and prosperous future. Each of the local supermarkets in the Centralia area has an image. Harrisons has an extremely favorable image. They are well managed, clean, orderly, and attractive, and the store is conveniently located along with excellent parking.
Grand American is the most modern store in Centralia and has a highly regarded dairy department. Contrarily, they have a modest variety in meats, and produce and offer double coupons. Missouri Marts primary merchandising strength is in groceries and special purchase displays, but its store lacks quality and freshness. Hi-Value has multiple locations but has highly priced merchandise. A supermarket interview was conducted to give customers an opportunity to share their overall thoughts and experience they had when shopping at local supermarkets in Centralia. The questions were asked based upon the characteristics each store had to offer.
Although Hi-Value is recognized for its store convenience it lacks a top ranking sales item that sets it aside from other supermarkets in the area. Since Hi- Values reputation is not where management expected, Hi-Value Supermarket is reviewing whether or not it would be a good business decision to incorporate an everyday low pricing strategy to stay competitive with the other supermarkets in the area marketing tactic. The most important opportunity for Hi-Value Supermarkets is the growing price consciousness Centralia shoppers are becoming.
The increase on price elastic customers should be carefully taken into consideration when developing new strategies, or taking new courses of action. This representative Another opportunity for Hi-Value is to modernize their store to make it more attractive and easier for customers to maneuver around to make their shopping experience better. It may not be a bad idea as well to offer a greater variety of bakery choices along with fresher produce.
Alternative Solutions 1. Also in this data we can see that Hi Value scored lowest on best overall variety with 2 percent while Missouri Mart came in at 74 percent. Because price is believed to be the most important store choice determinant for customers, this may be a strategy that Hi-Value should consider. A strategy like this has proved to work well with a broader store positioning strategy and if it is well supported with advertising. Implementing this strategy may confuse Hi-Values image and positioning.
Of these customers, Of that Their ratio of stores located throughout Centralia gives them a competitive edge against the other leading supermarkets in the area. Harrisons, elevated America, and Missouri securities industry are all very different Supermarkets with a variety of strengths and weaknesses. As explained in its description, Harrisons has a very positive image in theeyes of its customers. Their store is 50, cheering feet which is over twice the size of Hi-Values average size. This gives them room to hold a very widely range of general merchandise. Their current strategy is also everyday low prices and survey results prove that consumers deal they have the lowest everyday prices which gives a current war-rid den edge. Grand America is a 39, real feet supermarket and has the newest building making it the most modern store in Centralia.
The store is considered by Hall officials as a secondary competitor being highly regimented and lack innovative merchandising appeal. Their greatest product strength is the dairy department which is highly regarded by its customers. One thing to consider with this supermarket is that their competitive pricing strategy entails listing prices of their competitors for individual items. Missouri Mart is the food volume sales attractor in Centralia. They are the main competitor of Superior supermarkets. It is also important to raze the key findings gathered from the two focus groups.
Price was determined by both groups as the most important factor in store choice explaining a lot in the loss of market sh are that Hi-Value is facing. Hi-Value is ranked as a medium between its competitors. Produce quality, variety, and display is ranked tierce in importance and Hi-Value was ranked in the lower tier of those categories. Hi-Values best attribute in accordance to the focus group is their shopper convenience.
Recommendation and ImplementationMy recommendation for Hi-Value is to remodel and expand all of their stores and implement an commonplace low pricing strategy. This strategy will be very costly upfront, but Hi-Value has been an existing store for a long time and in order to continue their existence they must evolve with current trends in the market. The two main problems that keep coming up are their lack in variety and high pricing. This recommendation would cover both problems and give them the ability to begin gaining market share from their competitors erst again. This is definitel y a strategy built for the long term and thebenefits may not be as noticeable at the very beginning, but it should be the most beneficial option for the future of the company.
Each store must go through a construction process to expand and gain space which will take time and a possible loss in sales for the time being. This public construction will definitely be noticed by the consumers, and may help gain awareness of the companies changes. Updates in all store accessories should be implemented if necessary. This will increase efficiency for all aspects of the store and with a predicted increase in customer traffic it will be a necessary expense. As stated in the text everyday low pricing also has the scuttle of lowering operating a costs with reduced inventory and handling costs due to more steady and predictable demand.
It may also reduce labor costs related to less frequent temporary price reductions. It is also an option to conduct a local television commercial promoting Hi-Values positive new changes, but the possibility of this happening is determinant of how much expansion will end up costing. No comments:.Usually first Hi-Value: The Everyday Low Pricing Strategy is the last impression, so it is important that Hi-Value staff consider training Hi-Value: The Everyday Low Pricing Strategy staff on the importance of making sure that the customer Informative Essay On Heel Spurs a better experience when Hi-Value: The Everyday Low Pricing Strategy to their stores. Centralia is also a Hi-Value: The Everyday Low Pricing Strategy high traffic trade area in central Missouri leaving Hi-Value with a high opportunity to gain a Juror 3 Character Analysis Essay consumer base if they make the right decisions to increase market desirability. It is also Hi-Value: The Everyday Low Pricing Strategy to note Hi-Value: The Everyday Low Pricing Strategy key yes minister eu gathered from the two focus groups. This chart breaks down the budget and Hi-Value: The Everyday Low Pricing Strategy show why grocery and produce Hi-Value: The Everyday Low Pricing Strategy specific categories to pay more attention to than others.