HWY 21 & TEXAS
We concluded that our store uses the focus and cost leadership models as business strategies. This particular HEB tries to compete as a low cost leader and offers low prices for their products. They also try focus on their target market group as much as they can. We found this market group to include low-income and price conscious families, elderly people, and the Bryan area customers. There are not many different brands of each type product to choose from and many items are in bulk so that prices can be driven down lower to please the target market. This HEB’s motto is “stack it high and sell it low,” as stated on the many discount banners located through the store. There were also limited school supplies and toiletries. That being said, there is not much at this location that appeals to college students, unlike the rest of the HEB’s and Walmarts located in the BCS area. Those stores have more product differentiation and products that appeal to the college crowd and middle-upper level class families. The ambiance of this store is extremely different as well. It feels more like a big open warehouse with pallets of products still shrink-wrapped and stacked high unlike the clean and attractive stores we are used to shopping in. There is also little organization and strategic product placement at this store as opposed to placing similar products together like at the other locations.
After completing this exercise, we have learned that grocery stores can face competition from both large and small retailers. Although HEB is the only main supermarket in the area, there are several small discount stores and Mexican specialty stores that can appeal to the same customers that HEB is trying to attract. However, since there are no other major supermarkets in the area, HEB can still attract a sufficient amount of customers from the Bryan area. In the grocery industry we found that location is very important,