Hi-Value Supermarkets

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Hi-Value Supermarkets: Everyday low pricing
General Overview

SLIDE: The Meeting
> In early April of 2006, several members of Hall Consolidated meet with the District Manager of 3 Superior stores in Centralia, Missouri. (The agenda of this meeting was to disuss the districts progress and to address any issues related to the 3 stores.)

> The District Manager proposed EDLP for his 3 stores.
(The DM thought this was appropriate because he noticed their prices were higher compared to their competitors in the Centralia area. He also realized that consumers were becoming much more price conscious. Sales were also below quota for the 1st quarter of 2006.)

> The EDLP strategy had been briefly discussed in August of 2005. (Although, they discussed the EDLP stratgey prior to the quarter meeting in 2006, they continued on with their current strategy)

SLIDE: The Company
> Hi-Value Supermarkets is a privateloy owned wholesale and retail food distributor. (HVS is a division of Hall Consolidated)

> It is the samllest of the 3 supermarket chains owned by Hall Consolidated.

> It was the number 1 or number 2 ranked supermarket chain in each of its trade markets.(This is measured by their market share)

SLIDE: Competition
> Harrisons: Halls believes this store has captured the upper income business in Centralia. (It has the 2nd largest sales of all the major chain stores)

> Grand American: Halls believes this is the modern store. This is Halls secondary competitor. (It has wide aisles, and fine décor and fixures. Captures the younger market.)

> Missouri Mart: Halls believes this is the food sales volume leader in the Centralia area. This store has captured the middle aged and older families. (This is the main competitor to the Hi-Value Supermarkets)

SLIDE: Location

> North Fairview: Where the oldest Hi-Value Supermarket is located > West Main Street: Harrisons & Great American are located across...
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