Grocery Gateway Case Study

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COMM 5305

Marketing Management and Planning

Module 8

Grocery Gateway – Case Study

Group A

Table of Contents

Executive Summary 3

Problem Statement 3

Company Background 3

Dominique’s Objective 4

Grocery Gateway Short Term Goals 4

Grocery Gateway Long Term Goals 4

Forecast 5

SWOT Analysis 5

PEST Analysis 8

Market Analysis 9

Segmentation Analysis 10

Competition Analysis 11

Financial Analysis 11

Key Question/Issue/Opportunity 12

Key Success Factors 13

Key Uncertainties 13

Alternatives 13

Recommendation 15

Action Plan 16

Contingency 16

References 17

Executive Summary

Dominique Van Voorhis, the vice-president of industrial engineering and operations systems for Grocery Gateway has been asked to make recommendations aimed at improving delivery operations at the weekly management meeting in seven days. There she will need to present her plans to the CEO and COO of Grocery Gateway that will help the organization realize its profit objectives.

To optimize delivery operations, two solutions are recommended. First, an upgrade to the route optimization software should be purchased to provide a more effective analysis of route profitably and determine appropriate delivery times. Second, a change in the cash collection from point of delivery to point of purchase will further increase operation efficiencies. These changes to operations are expected to increase the number deliveries per hour to help meet the organization’s objective to become cash flow positive in 2001 on a variable costs basis.

Problem Statement

Dominique needs to determine how to increase sales in order for Grocery Gateway (GG) to move into a positive cash flows position for variable costs. Although drivers are budgeted for 4 stops per hour on area (SPHOA), current trends are 2.7 stops....