Reeds Supermarkets

In: Business and Management

Submitted By AlexLionTao
Words 2929
Pages 12
Executive Summary
Reed’s VP Marketing Meredith Collins needs to develop a plan to increase the market share (MS) of this company from 14% to 16% in the Columbus Market. The Reeds actual expansion plan does not consider any new store opening. The competition in the retailers market is intense and the profit margins are low, therefore Collins has a minimal margin of error.
Reed is the actual leader of the retailer Columbus Market but the Executives of the company are worried that Reed lost 1% of MS in the last five years. They just have implemented the dollar Weekend Campaign with no considerable important results.
Reed Business is in the High end segment and it has differentiated by offering high quality products and excellent customer service. In this market price is the most important factor, but location, quality, diversity of products and customer service are also points of differentiation.
In the latest years in Supermarket Industry the private labels have not been perceived anymore as low quality and their presence in the market has increased in 3% since 2005. Customers have become friendlier towards healthy and organic food. The customers are not as loyal as 20 years ago; nowadays is a trend of savvy customers. Reed’s customers are affluent, old and owned small medium houses, also more likely to have a pet.
Based on the facts above my recommendation is maintaining focus in its actual customer segment, improving the product mix offered by developing private labels, focusing in organic and healthy foods, and taking advantage of Galaxy’s slum to transfer market share from them. Finally we should stop the dollar special Campaign as it is detrimental for Reed in the long term.
Main Problem
Reeds VP Marketing, Meredith Collins needs to develop a market plan in order to increase market share from 14% to 16%. Opening more stores to do so is not an option and…...

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