Hi-Value Supermarkets: Every Day Low Pricing Case Study

Topics: Supermarket, Focus group, Competition Pages: 4 (1373 words) Published: April 17, 2014
Hi-Value Supermarket Case Study

Problem Statement
Hi-Value Supermarkets located in the Centralia, Missouri area are faced with the problem of deciding whether or not to change their sales strategy to everyday low pricing. This has become an important subject for Hi-Value due to their loss in sales of the last few quarters, and a possible future loss in market share in their area. Hi-Value has three stores in the Centralia area and all are perceived as having a high market value in comparison to its competitors. They has attempted to determine the strengths and weaknesses in accordance to its competitors by conducting a survey and two focus groups which provided some very key results. Going further into this problem we must also assess whether all products within the stores should entail everyday low pricing, and if not all which ones. We must also determine how much lower the standard price will be set for all products in order to be considered everyday low pricing. The survey and focus groups also identified that the variety of products the consumers are looking for are not present as well, and that must also be assessed. Situational analysis

Hi-Value Supermarkets have multiple key strengths with their current position in the Centralia market, and they must be considered when determining their next moves to attack this current problem. Having three locations within the Centralia area is a huge benefit with covering multiple geographic sectors. Especially when there is no other competing supermarket chain with that many stores in the area. The fact that they have had a strong market share from 1995 to 2002 with an estimated 23% share of the market in 2002 is also very important. Hi-Value is in the position where all they need to do is at the very least sustain their current positions and any increase in market share is just a bonus. Being the oldest supermarket in the Centralia area is a key strength because it makes them a well known and identifiable...
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