What is Save-A-Lot’s retail strategy – its target market, format, and bases of competitive advantage? Question 1: The target markets for Save-A-Lot are those consumers that are very value oriented and those who are also convenience shoppers. The format for these stores are much smaller when compared to the traditional supermarket, also they use the boxes their products are delivered in instead of shelving everything and they do not have as many SKUs as other supermarkets. Their competitive advantage is that they offer some products that are exclusive only to their stores and carry a limited number of that product while a traditional supermarket will have more than 10 different varieties and assortments of the same product.
How do the elements in the strategic profit model for Save-A-Lot differ from those of a traditional supermarket? Question 2: they do not ask an allowance for advertising, charge backs, merchandise return privileges or fees for stocking items and by doing this it makes vendors give this store a low price for products. They are located on cheaper real estate properties, have a tight control on operating cost and staff is very limited. Along with other things they have control on and limit Save-A-Lot can offer quality merchandise to its customers at prices 20-40 percent cheaper than traditional supermarkets.
What are the pluses and minuses of offering a limited assortment from the perspective of the consumer and the perspective of the retailer? Question 3: the pluses of offering a limited assortment from the perspective of a consumer is that the consumer knows for a fact that they can get a certain type of product from Save-A-Lot that they may not be able to find anywhere else and this is also a plus from the perspective of the retailer as well because the retailer knows that the consumer will always return for that particular product. A minus of offering a limited assortment from the perspective of the retailer is that they will...
Please join StudyMode to read the full document