hi Value case analysis

Topics: Grocery store, Supermarket, Price / Pages: 7 (2098 words) / Published: Apr 25th, 2014
Hi-Value Supermarkets- Everyday Low Pricing
Case Analysis
Kimberly Stamos
MKT 601 Section 51
Professor Ivan Vernon
April 11, 2014

Case Analysis
I. Factual Summary Hi-Value Supermarkets became a division of Hall Consolidated, a privately owned wholesaler and retail food distributor in 1975. Hi-Value Supermarkets is considered to be the smallest of the three supermarkets chains owned by Hall Consolidated, with a small store distribution for its category. Hi-Value was the number one or two ranked supermarket chain in each of its trade markets (as measured by market share).

Hi-Value is known as “most convenient”, having three stores in Centralia compared to its top competitors only having one each. Hi- Values three are major competitors are: Harrison’s, Grand American, and Missouri Mart. The three major competitors in Centralia contain stores all subsequently larger in size than those of Hi-Value. The four major supermarkets in Centralia make up 85% of all food sales, with the remaining 15% stemming from smaller, independent grocery stores and convenience stores. All 3 major competitors contain a feature attributes and a unique position in the market. With Hi-Value having three locations in Centralia, it puts them at an advantage for convenience that the competition cannot duplicate without having the funds or other resources to do so.

Although Hi-Value Supermarkets offer the highest level of convenience, there prices are overall are the highest as well. Residents of Centralia prefer lower prices because according to the U.S. Census held in 2000, the median income was 36,000. It is understood that price is the most important store determinant for the residents, which poses a problem for Hi-Value. The major question described in the case is whether or not Hi-Value should implement a low-pricing strategy. With the examination of Hi-Value’s current situation, it is evident that their future falls in between several courses of action that

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