Managerial Communication I
Roll No.: xxxxxx
The present case deals with the positioning efforts of Reed Supermarkets in Columbus, Ohio. Reeds Supermarkets was established in 1939 by William H. Reed and has since then grown from a grocery store to chain encompassing 192 retail stores and 21,000 employees. Our present focus lies in the market of Columbus where Reed’s current market share of 14% is facing stiff competition from recent entrants in the market.
I. Situational Analysis
|Sr No |Fact |Inference | |1. |Reed laid special emphasis on quality of service, albeit at |There existed a niche segment of upscale customers in the | | |relatively higher prices than the rest of the competition – |Columbus region. | | |still managing 14% of the market share. | | |2. |Columbus demographics exhibited higher than national average |Another indicator of the presence of upscale customers in | | |income and population growth, and lower than national average|Columbus which hints at a potential market for high-end | | |unemployment. |offerings. | |3. |Supercenters operated on large scales and offered big |Reed lost cost-conscious customers, prosperous families with | | |discounts. |large storage areas, small businesses low to middle-income | | |Warehouse clubs sold in bulk, offering prices way below |earners to other competitors. | | |conventional stores. | | | |Dollar stores served the low to middle-income earners through| | | |their offerings. | | |4. |Traditional supermarkets could no longer count on the loyal |Price had become one key factor in determining where a customer | | |weekly customers who were shifting to other cheaper |would buy his/her supplies. | | |alternatives, in pursuit of value above convenience. | | |5. |The market for private label merchandise was expanding and |It had become imperative for all players in the market to focus | | |their lower quality image was being shed; besides, they |on private label goods as means of widening margins. | | |offered higher margins of return. | | |6. |American consumers had become more health-conscious. |Health and organic product selections are expected to have a | | | |good demand. | |7. |Market share of Reed fell from 15% in 2005 to 14% in 2008 and|The fall in market share happened before the economic downturn, | | |has remained stable since. |hence factors other than the economic downturn (e.g., | | | |availability of lower priced alternative) are responsible for | | |...