Reed Case

Hannah Loubris

MKT 444N

Reed’s Case

Situation Analysis

Summary

Reed Super Markets are a high end Market located in Ohio at the top of competition established in 1939 with 192 retail stores, 2 regional distribution centers and over 20,000 employees. Reed is known for their long hours and exceptional customer service. Reed’s main competitors are Top Val, Galaxy, and Delfina. In 2010, Reeds sales were 660$ million, Gross Margin of 22.7%, with a Market Share of 14%. Reed focuses on health concerned and high end customers.

Problem

The main problem for Reed Super Market is that their competition is rising, and Reeds sales are decreasing.

Goals and Objectives

Increase the Market Share by 2% From 14% to 16%. Next, goals for Reeds Market are to increase sales, revenues, and net profit. In order for these goals to become a reality, action plans must be made.

SWOT Analysis

Strengths:

* Recognized Brand name

* High quality and good product variety

* 2nd highest market share in Columbus

Weakness

* Dollar special could confuse people because they are supposed to be a “high quality” store

* 3rd lowest on price index

* Low operating margin of 2.1%

Opportunities

* Growth potential

* Increasing amount of customers that are becoming health conscious

* Growing trend of private label

Threats

* Competition

-Aldi

-Sam’s Club

-Galaxy

-Delfina

-Whole Foods

* Cherry Picking customers

Recommendations

* Customer Loyalty Program

To show appreciation to their weekly, and daily customers that always shop there.

* Private Labeling

Would provide a better margin for Reed.

* Bulk Offers

Since Reed has 192 stores, it would be a good idea similar to BJ’s and Costco.

* Online Retailing

With cash as a delivery option.

* Stop the Dollar Program

It doesn’t provide a great profit.

* Focus on Daily Price Reductions

Reed will be able to maintain their position as a high quality market.

* Service...