...JOHN A. QUELCH CAROLE CARLSON Reed Supermarkets: A New Wave of Competitors At 4:30 p.m. on December 6, 2010, Meredith Collins, VP of Marketing for Reed Supermarkets, walked down the sidewalk of the 10-store strip mall that housed Reed’s Westgate Plaza branch in Columbus, Ohio. Collins didn’t shop; instead she took mental notes about store traffic, first at the Reed store and then at an indirect but increasingly worrisome kind of competitor—a dollar store. The Reed was predictably well lit and inviting, and Collins could see three registers open and two or three customers in line at each. “Not too bad” she thought, “but not what I would hope for at this time of day, this close to the holidays.” She’d felt the same way at two other Reeds she’d visited that day . Collins walked on to the Dollar General (DG). A fairly steady stream of shoppers entered DG’s doors, their progress slowed by families exiting with plastic bags jammed full. When Collins looked inside, she noticed workers filling what was obviously a new freezer case—the first freezer she had seen in a dollar store that day. This DG was doing just as well, to judge from this glimpse, as the Family Dollar she’d walked past half an hour earlier at North Valley—but no better than the Aldi store she had visited in the morning. That Aldi trip was interesting: a bright and spotless mini- supermarket, run by a giant firm from Germany that carried one-tenth the food items that a Reed did and sold virtually no brand names, only...
Words: 6658 - Pages: 27
...Reed Supermarkets Growth Action Plan Prepared By: Vishal This document explores the Industry of Supermarkets, Industry players and Competition and outlines the Growth Action Plan for 2011 to be driven by Meredith Collins, VP of Marketing, Reed. Reed Supermarkets Growth Action Plan 2011 Action Plan for Reed’s Growth 2011 Background: Meredith Collins, VP of Marketing, Reed, needs a plan for 2011 to execute to grow its current market share from 14% to 16%. Margins for error are negligible as competition has intensified in every segment and current economic conditions aren’t looking good. Recommendations for Growth: Stop the dollar special for each week: 1st step is to stop the dollar special promotion immediately. This is not consistent with the brand equity and positioning built over the years. It’s resulting in net operating loss of 76% on each discounted item and overall decreased the net operating profit for 2010 to 0.4% only (details in justification). Moreover, this promotional activity is polluting the message for regular consumers, considering that some of the dollar stores are located nearby. Increase Sales Target: To increase the current market share to 16%, sales target is set to 775Mn for 2011. It’s an increase of 95Mn. from 2010, on the assumption that total market size (4.74Bn) remains same. Focus and Maintain current Target Segment and Increase the Wallet Share: Continue focusing on the current target segment of affluent and older customers with smaller...
Words: 3275 - Pages: 14
...Reed Supermarkets – Action Plan Prepared by : Rishi Ranjan Reed Supermarket – Case Analysis Problem Statement : Meridith Collins, VP of marketing of Reed Supermarkets, is asked to increase the current market share of 14%(2010) to 16% by 2011.The following constraints are evident : 1. The market is fragmented with multiple players. 2. The operating margin is merely 2.1%, no scope of any error. 3. No investment plan for increasing the no. Of stores. Options available: 1. Increase margin/increase revenue – It will increase profitability. 2. Introduce Niche products – Healthy food items, organic products. 3. Increase operating efficiency – It will lower the operating cost. 4. Loyalty programs – It will help in retaining the customers. 5. Introduce mid-range products – It will attract non-affluent consumers. 6. Make tie-ups with corporate houses/ partners – It will add to the consumer base that may remain loyal. 7. Convert to Dollar store/ open dollar stores as a separate brand – New brand. 8. Introduce private labels – New range of products. Recommendations: 1. Closure of Dollar Special service – As per the given data, the Dollar special products were being offered at a price 44% lower than the average price which was not generating money at all. Infact it was creating a loss of 80%.Also this Dollar scheme had hit the image of Reed (Quality product seller). 2. Reed customers were older and affluent players, so Reed should extend its services further to create...
Words: 619 - Pages: 3
...players • Meredith Collins, VP of Marketing for Reed Supermarket • Dollar stores are increasing competitorThe Dollar General (DG), , Family dollar, Aldi poses threat due to its remarkable low price, • Jack Morrissey, CEO of Reed Supermarket • Other supermarkets like Wal-Mart, Costco • Higher-end customers • Food manufacturers—aldi, trader joe’s, sell mostly private label merchandise Limited selection stores a) The main problem or two key problems. • Declining shares in the past in the Columbus, Ohio market—the fight for market share is very intense due to large supermarkets, small regional chains, independents that include lower priced TopVal, mid-range Galaxy (owned by Supervalu), and top-range Delfina, three Whole Foods Market—Wal-Mart Supercenters, four Target Superstores, and one regional chain, Five Warehouse outlets—three Costco and two Sam’s, low-end channels like drug stores and gas stations (COMPETITORS) • Unite States’ consumer price index is flat—customer are not loyal, they have become savvy customers who shop at different stores for a best deal, Warehouse has attract consumer bulk buying shoppers, the growth of private label foods, American consumers has become health conscious—benefiting whole food stores, Trader Joe and others like Reed, • The perceive customer believe that Reed’s products are expensive—and price is indeed higher, main problem pg 6 • Dollar special campaign might tarnish the image of Reed because it is too close to dollar store offerings...
Words: 726 - Pages: 3
...• Meredith Collins, VP of Marketing for Reed Supermarket • Dollar stores are increasing competitor→The Dollar General (DG), , Family dollar, Aldi poses threat due to its remarkable low price, • Jack Morrissey, CEO of Reed Supermarket • Other supermarkets like Wal-Mart, Costco • Higher-end customers • Food manufacturers—aldi, trader joe’s, sell mostly private label merchandise Limited selection stores a) The main problem or two key problems. • Declining shares in the past in the Columbus, Ohio market—the fight for market share is very intense due to large supermarkets, small regional chains, independents that include lower priced TopVal, mid-range Galaxy (owned by Supervalu), and top-range Delfina, three Whole Foods Market—Wal-Mart Supercenters, four Target Superstores, and one regional chain, Five Warehouse outlets—three Costco and two Sam’s, low-end channels like drug stores and gas stations (COMPETITORS) • Unite States’ consumer price index is flat—customer are not loyal, they have become savvy customers who shop at different stores for a best deal, Warehouse has attract consumer bulk buying shoppers, the growth of private label foods, American consumers has become health conscious—benefiting whole food stores, Trader Joe and others like Reed, • The perceive customer believe that Reed’s products are expensive—and price is indeed higher, main problem pg 6 • Dollar special campaign might tarnish the image of Reed because it is too close to dollar store offerings...
Words: 725 - Pages: 3
...spending on clothing increased by 12.5% between 2006 and 2010, which was slightly below the rate at which overall consumer expenditure increased (12.9%). In 2010, it was estimated that the clothing retailing market was worth £41.9bn, which was the highest value seen over the review period. Key Note believes that supermarkets have increased their share of the clothing market, now accounting for around 25% of the total market. Supermarket retailers have witnessed a large increase in sales since the recession, as consumers became more cautious about unnecessary spending, and turn to cheaper alternatives available in the supermarkets. There has also been a decline in specialist companies operating within the clothing retailing industry, with figures from National Statistics indicating that, in 2010, there were 11,800 shops, compared to 12,700 in 2009; this represents a 7.1% decrease over the course of that year. This phenomenon is visible in many UK cities, where an increase in empty high-street shops is apparent. Many independent shops were forced to exit the market after the recession, as they could not compete with the larger well-known retailers and supermarkets. The cost of clothing is expected to rise, shaping the industry over the forthcoming years. On the 4th January 2011, VAT increased to 20%, while the rising cost of cotton will continue to increase the retail price of garments. Other issues, such as the weak pound affecting imports and the costs of...
Words: 819 - Pages: 4
...Group Interim Report Group Name Date submitted Client’s name Executive summary of the changes you are proposing with a rationale for the changes. Portfolio 1 Portfolio 2 SOURCE ----------------------- 27/10/2013 Group 20: Girls’ Power David King Markowitz portfolio theory (MPT) is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. According to Markowitz portfolio theory, investors attempt to maximize portfolio expected return by analyzing risk, return, correlation and diversification...
Words: 1613 - Pages: 7
...Privacy policies, code of ethics, insider trading policies. All the policies are consistent with each other. They all want their employees and board members to act ethically. They want their nonpublic information to stay private and prohibit insider information trading. vi. II. Corporate Governance a. Board of Directors i. Mostly External members. Jay Hoag- Technology Crossover Ventures. Timothy Haley- Redpoint Ventures. Ann Mather- MGM holdings Inc. Leslie Kilgore- Linkedln Corporation. Richard Barton- Zillow, Inc. A. Battle- Aspen Institute. Reed Hastings- Chair of board ii. Significant shares on the board are only held by Leslie Kilgore. Reed Hastings and Jay Hoag hold 0. iii. Publically traded iv. Richard Barton-2002 A. Battle-2005 Timothy Haley- 1998 Reed Hastings- 1998 Jay Hoag -1999 Leslie Kilgore- 2000 Ann Mather- 2010 b. Top Management i. Reed Hastings is the Founder and CEO. David Wells is the CFO. ii. Reed Hastings has been the CEO since 1998. He...
Words: 1194 - Pages: 5
...University of Surrey | Consumer Behaviour | Factors influencing students’ choices of branded grocery products when grocery shopping’ | | Thomas Partridge (6166777) | 4/22/2013 | A focus groups, face-to-face interviews, and in-store observation of a shopping will be used to investigate the factors affecting purchasing behaviour of students. A Comparison of the strengths and weaknesses of each of the three data collection methods. Suggestion of ways in which marketing managers could use your findings on shopping/purchase determinants to improve business performance | Contents 1. Introduction 2. Fieldwork Results 2.1. Price 2.2. Quality 2.3. Discounts 2.4. Personal Preference and taste 2.5. Brand Reputation 2.6. Other peoples reviews 3. Analysis of data Collection Method 3.1. Advantage and disadvantages of collection methods 3.2. Summary of the three research methods 4. Practical implications of findings 5. Appendix A. Focus Group B. Interview 1 C. Interview 2 D. Observational shop 1 E. Observational shop 2 1. Introduction Within this report explores the factors influencing students choices of branded grocery products when grocery shopping through a three types of data collection methods, which are a Focus Group, two Face-to-face- interviews and two observational shops. After analysing the findings the advantages and disadvantages of the research methods are discussed...
Words: 13815 - Pages: 56
...We were on the “Oh, yeah, I forgot I was subscribing to that” plan. With the “Honey, we’ve had this National Geographic documentary DVD for two months — are we really going to watch it, or should we just send it back?” option. Then, in July, Netflix /quotes/zigman/87598 NFLX -7.37% tried to jack up the price of our subscription. Bad move. Why? Because it meant we noticed our subscription. Click to Play Has Netflix lost critical momentum? There were more woes for Netflix on Friday, as its shares fell another 5% and analysts continued to hammer on the drop management forecast in its U.S. subscriber base. Has Netflix lost critical momentum? Rex Crum reports. And so we cut it. It was only a few bucks. But there gets to be a point where you just get fed up leaking money at every pore. We already have two set-top boxes — from Apple and Roku — that allow us to stream videos on demand from a variety of different sources, including Amazon /quotes/zigman/63011 AMZN +1.00% , Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -0.35% and Hulu, as well as Netflix. If I wanted to pay extra, I could get more of the same from Comcast /quotes/zigman/89307 CMCSA -0.35% as well. Apparently we weren’t alone in cutting our Netflix sub. The DVD rental and streaming company warned that the move was going to cost it a million subscribers. As recently as July 25, the company was expecting to have 25 million customers by the end of this month. Now it expects 24 million. That will actually...
Words: 495 - Pages: 2
...Rondolph and reed Hustings Netflix reached 27 million subscribers at the end of January 2013.In the beginning when DVDs first came out to the market the CEO and one of the founder OF Netflix Reed Hustlings take this as an opportunity, The plastic disc small size and light weight make it cheap to send it through mail. Netflix takes advantage of the US postal services and send rental DVDs to customers through mail and accept returns the same way. With time Netflix has evolved into a company with reputation of low charge, unlimited movies without a due date, no late fees shipping or handling fees. Netflix then makes it more easier for costumers by introducing the online streaming options to watch movies at their on time when ever they are free. The online streaming allows subscribers to browse by many different categories, such as moods, qualities, story line, release dates, music, and cultures. Netflix search features are highly comprehensive making finding a film very relaxed and fun. If someone wants to watch a specific show but does not seems to remember the name of show it can be easily lookup by the starring actor. After selecting a title the online database of Netflix shows a DVD case and details about all the actors and actresses staring in the film/show. Environmental scan of Netflix. Internal Analysis Netflix vision and Mission Netflix does not have an Official published mission statement but at a conference in Dublin in Oct 2011 the co founder and CEO Reed Hastings...
Words: 954 - Pages: 4
...Part Two This assignment will provide a justification of the scheme of work created. The scheme of work has closely linked two foundation subjects together, these are geography and art and design. Together, these compliment and enrich the children’s learning through a Take One approach. Take One Methodology begins with an initial stimuli chosen, in the scheme of work created this is a Dutch landscape painting which can be found in the Walker Art Gallery, (See Appendix One.) Using a stimuli is something which Bloomfield, (2000:138) supports, as they ‘are used to enhance children’s understanding.’ From this a plan of potential lines of enquiry should be created around the artefact chosen, (see Appendix Two.) This helps the practitioner to select one key line of enquiry, and from this, clear connections between subjects can be identified. This promotes cross-curricular learning, however Barnes, (2007:245) states that ‘cross curricular teaching is risky.’ This is something which Webb, (1996:93) identifies; however there are ‘no magical formula[s] for incorporating a crucial cross-curricular theme.’ Previous experience has shown that cross curricular practice will come when a wealth of experience and confidence is gained. The two subjects linked within the scheme of work are geography and art and design. Linking these together is something which Bloomfield, (2000:123) identifies as beneficial as ‘geographical understanding can be expressed artistically.’ It is believed by Althouse...
Words: 1422 - Pages: 6
...smartphones and personal computers. The offer is only available to new customers. These tiers include 1-stream, 3-stream and 4-concurrent stream variants. All these are currently undergoing experiments. The 1-stream tier would cost customers $6.99 a month, a price which is $1 less than its standard version. This will enable subscribers play content on only one screen at a time (LA Times). The 3-stream tier will cost $9.99 a month and can stream video on three screens concurrently. Finally, the 4-stream tier which is the top tier which was announced sometime in April allows four streams at once at a cost of $11.99 per month (Shiller, 2013). In an interview after revealing their intention to change their pricing options, Netflix CEO Reed Hastings admitted that one price can fit all customers. This may be due to diverse demands for Netflix services (Shiller, 2013). However during the launch of the 4-stream tier in April, whose cost was $4 higher than the standard cost, the increase in prices was not received well by the customers. The different tiers may also be too complicated to customers, against the company’s aim to make prices as straight-forward as possible (Shiller, 2013). The company should focus on the fair prices to expand their business. Since one price cannot fit all services offered, the different prices should not be exploitative and should be within the range of the standard...
Words: 408 - Pages: 2
...Competitive Intelligence At Lexis-Nexis Submitted to: Ms. Marian Pio Submitted by: Lourdes Andrada Paolo Garces Ji Hyeon Kim (Leila) Victor Kim Jevan Sugue Julia Valenzuela Koko Victory Table of Contents Background of the Company 3 Background of the Business Intelligence Undertaking: Challenge 5 Background of Business Intelligence Undertaking: Solution 6 Sources 6 Background of the Company As a market leader with a significant revenue base to protect, Lexis-Nexis certainly understand the value of competitive intelligence. A source of real time and archival information for 26 years, with 1998 revenues of $1.3 billion, the Lexis-Nexis Group provides customers with highly structured information tools. Our mission is to be the preferred provider of decision support information and services to professionals in legal, business, and government markets. We are comprised of companies operating either within Lexis Publishing (for the legal profession) or the Nexis business unit (serving business, government, and academic markets). Their brands guarantee access to information from authoritative sources, enriched with enhancements such as indexing, linkages, and segmentation. Lexis-Nexis is a large group, global organization with about 8,000 staff in 63 locations, and all 8,000 staff members have access to our CI tools through our internal corporate intranet. Lexis-Nexis have 1.8 million subscribers, excluding the two-thirds of the U.S. undergraduate...
Words: 1845 - Pages: 8
...Tolley® Exam Training UK CORPORATION TAX CHAPTER 10 CHAPTER 10 INTEREST ON LATE PAID TAX AND REPAYMENTS This chapter looks at interest and in particular it covers: – interest on late paid tax and repayments; – the effect of losses carried back. In this chapter both FY 2013 and FY 2014 rates will apply 10.1 Introduction Interest runs from the due date for payment to the actual date of payment of the tax where corporation tax is paid late. FA 2009, Sch 53 So, if tax due on 31 March 2015 is paid on 1 April 2015, interest runs from 31 March to 1 April and is charged for one day, as the payment was one day late. This applies to all payments of corporation tax – whether the company pays by instalments or not. So small companies, which are required to pay their tax 9 months and 1 day after the end of the chargeable accounting period, will also be charged interest where they pay that tax late. HMRC charges interest at an interest rate calculated as bank base rate plus 2.5%. The current rate is 3%. Repayments of overpaid tax receive repayment interest at an interest rate calculated as bank base rate minus 1%, with a minimum rate of 0.5%. The current rate is 0.5%. FA 2009, Sch 54 10.2 Interest on instalments Problems are experienced particularly by larger companies, as tax due by instalments is based on the tax liability of the current year, yet the payments are made during the year. A company will therefore have the problem of estimating its tax...
Words: 1497 - Pages: 6
