Business case presentation

1. Maangatt Consulting Group • Reed Supermarket Business case presentation Submitted by: Akashdeep Mangat

2. Reed Supermarket is known for it high caliber in a market where customer is searching for value Company Overview US Food Retail Industry • Normal family spend $5,200 every year on basic need and took 2.1 market trip week after week in 2010. • Consumer buying behavior is changing as a result consumer price index for food is flat by 0.5%. • People are becoming more health conscious • Continuous increase in private label foods from 14% to 17%. • Established in 1939- 1st Grocery store in Kalamazoo Michigan. • By 2010-192 store 21,000 employee. • High end with a vast variety of product & customer services. • Periodically expanding & upgrading store. • Owned Two medium-sized chains serving OHIO and Indiana & Illinois by 1980. Reasons for decline in market share Reed In Columbus Change in buying preference of customer. They are seeking more value for every dollar they spend Increase in number of competition due to open market. Columbus Market • Modest decline in a share. • 2 million people with average household income of 52k. • Consumer are seeking good prices & better discount. • Reed has a high-quality index but very low-priced index. • Large number of competitors in the market. Intense market share 25 stores in Columbus region Competing against 3 major companies Reed did not add new stores and none were planned Moderate sale from 2005 to 2010 What strategic step should Reed implement to differentiate itself from its competitors in the Columbus market, to achieve 16% market share by 2011 ? Reed Super Market Business Case

3. 9.58% Delfina 10.07% Galaxy 10.23% Top Val To maintain an ideal position in the market, Reed Supermarket need to understand which of it competencies has a capability of being special to build its competiveness High consumer Involvement Reed customer is keeping pace with the statistic in Columbus and its customer doesn't mind paying a premium for quality item and administrations since normal salary is 12% higher than the territory family pay. 14% Reed High price Sensitive Low price Sensitive High consumer Involvement Keeping in mind the end goal to fulfill the customer needs Reed should focus their top-notch mark picture of their brand image, quality of products & services to give best offer to their customers. Reed Super Market Business Case

4. Expanding Reed's market share by 2% would mean expanding yearly sales by $94.29 million, which isn't doable • Total sale are driven by number of store and estimated annual sale per store. • Reed was only successful to build income by 1-2% every year over its market. • With loss making in dollar sale & no further opening on new stores , increase of market share in the overall industry isn't conceivable. Increase of $6.6mn in total sales, resulting in 0.139% of market share gain. Columbus current Market share 2% increase which is not possible 1% increase 14% 15% 16% Market Share Reed Super Market Business Case 2018-05-15 MCG.

5. Dollar Special Program should be suspended as its not right methodology to contend in the market because it is creating loss of $9,478 per store each week and additionally it doesn't accomplish the target of 16% market share 2% expansion of market share represent $94 million over all sales i.e. 14 times the current sales of Reed. Dollar special program Dollar special program is increasing the sale the by 3% but every store is facing a loss of $9,478 mm each weak. Reed Super Market Business Case

6. In order to increase the customer experience, Reed must implement the combination of strategies to realign its position in the market. Alternative Criteria Reed Super Market Business Case

7. Appendix -1 Calculation of change Reed Super Market Business Case

8. Appendix -2 Per unit calculation Reed Super Market Business Case