Save-a-Lot Case

Topics: Supermarket, Retailing, Online shopping Pages: 4 (1126 words) Published: March 28, 2011
Lynn D.
Mktn 3506
Dr. Smith
May 27, 2010

1. Retail strategypg. 30
2. Niche Marketingppt (segmentation 13)
3. Valueppt (segmentation 19)
4. Target marketpg. 30
5. Psychographic segmentppt (segmentation 9)
6. Retailing conceptpg. 31
7. Retail formatpg. 30
8. Vendor relationpg. 38

Save-A-Lot Case Analysis

In 1977, Bill Moran, was the Vice President of Sales for a food wholesaler in St. Louis. After recognizing how the weak economy had affected his customers during the most competitive time, Bill Moran decided to become a hero. He invested his times and finally developed a retail strategy that would generate an extreme value for his customers by providing limited assortments of SKUs of the most popular items and not every brands out there in the larger traditional supermarket chains.. By doing this over the years, Save-A-Lot has expanded to over 1,300 stores across the United States and are continuing to grow. Save-A-Lot is operates in a foodservice industry that serves as retailers within a niche marketing segmentation. Save-A-Lot target market consists mainly of value seeking and convenience oriented psychographic segment. These consumers usually seek quality products at lower prices. They want valuable low prices like Costco but without the bulk, and a convenience of a mama and papa stores but much bigger, meaning that it is small enough and convenience enough that consumers don’t need to park and walk as far. For this mean, Save-A-Lot’s retailing concept meets the shoppers’ needs and expectation with smaller grocery stores. Within a year, through word-of-mouth advertising, Save-A-Lot spread to 29 locations.— (Save-A-Lot ) The constraints of Save-A-Lot in the foodservice industry comparing to its competitive retailer is that they lack the wide assortment of products to choose from. Another is the friendly customer services that helped customers around the stores or bagged...

Cited: Smith, Michael. E-Retailing and Supply Chain. McGraw Hill, 2009.
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