1.2 Executive Summary
Lewis Food Town, Inc., doing business as Food Town Grocery Stores, is a chain of grocery stores located in Greater Houston, founded in 1994 by Ross Lewis. He currently has over 40 years of Grocer experience. As of 2003 the chain had 14 stores in Greater Houston, and took a 2.57% market share in that market. Lewis Food Town was the sixth largest grocery store chain in Greater Houston is a company that hopes to continually grow and expand. As of 2011 the chain had 26 stores in the area. The stores are more densely located in the south part of the city. Lewis Food Town, feature national brand products, as well as a range of international items, which include fresh vegetables and fruits, herbs/spices baking products, frozen
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Some of the major opportunities include expansion to another city.
Food Town
Opportunities Threats
Can expand to towns outside the city since it is a cooperative model Competition from other local retailers in the area
Feature more exclusive products since it is cooperative The customer satisfaction levels going down can lead to the downfall of the entire chain
Can expand their private label offerings Stores are seen as cramped and the increasing rental rates can hamper growth and margins
3.0 Competition Analysis
3.1 Primary competition
Food Town’s primary competitor would be the big supermarkets like Wal-Mart, Kroger, Target, HEB. Food Town is a family owned business that opened in 1994 and is a local company. While large supermarkets like Wal Mart that opened in 1933 and today has more than 11088 international supermarket, HEB operates since 1905 with 350 stores in Texas and the north of Mexico, Target opened in 1902 and has more than 2640 supermarkets.
Food Town* Wal Mart**
Strengths Weaknesses Strengths Weaknesses
Low Prices No Convenience Service Match Price Poorly paid
Fresh Products Local and Privately Owned Nationwide and
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Food town is working hard to maintain the lowest prices, from the highest quality, so that customers can enjoy their products to the highest standards at low cost.
4.2 Target Market Segmentation
Food Town’s vision is to expand the supermarket concept by opening store and becoming the best low price and high standard supermarket in town. To achieve the vision of this organization; the management team will successfully execute the following strategy: strategically expand the customer base, differentiate itself from other groceries stores by offering unique products and services, committed to excellence in customer service, and strive to improve high efficiency levels of operations. The way Food Town attracts consumers is by adverting his lower
Kroger Supermarkets were started in 1883 by Barney Kroger in downtown Cincinnati. Mr. Kroger started his business with the motto: “Be particular. Never sell anything you would not want yourself.” Through the years Kroger has strived to uphold this motto to its customers and to provide great service, the freshest products and expansion to meet the needs of their customer base making it one of the world’s largest retailers. Kroger now has over 2,600 stores in 34 states with $108.5 billion in annual sales. Kroger operates 37 food processing facilities and Kroger was the first grocery retailer to use the electronic scanner.
When customers walk into the store, they first try to adjust themselves according to the surroundings of the store. It is very important to get the customers attention.By viewing the setup and location of the store in relation to the shopping, Paco
While examining the community of Valdosta, Georgia there were some common themes throughout the city. In this community there are multiple grocery stores spaced throughout the city, such as Publix, Winn-Dixie, and Walmart. Even though there are quite a few grocery stores for people to buy food to cook, on weekdays
The Lakeview Pantry provides more than just a basket of food to a few select people. They create a personal shopping experience and allows clients options to pick from, to cut on food waste, which also benefits the environment. LP offers social services to initiate financial growth and establishes independence regarding food and job security for many people in the Lakeview community.
Kudler Fine Foods is a gourmet food store which also offers in store parties in order to introduce customers to their products and also teach customers how to prepare their specialty foods. They have expanded to three stores and are continuing to see growth opportunities in their industry. Kudler Fine Foods has planned on contracting with local growers to obtain their produce and now they want to add a catering service. Before they can do so, they must run the possibility fully through a marketing standpoint in order to assure the success of this project. This study will comprise of the opportunities Kudler Fine Food has in its marketing mix that will help them operate a successful catering business.
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
Opponents of the supermarket expansion might argue that the expansion will put specialty family stores out of business. Consumers prefer traveling to one location rather than several to retrieve items. Supermarkets contain a variety of items, from fresh produce and flowers to bathroom
Kroger’s, City Market, Kings Shoppers, Harris Teeters, Ralphs, and Smiths are a few companies directly or through subsidiary’s operations under the company’s umbrella of the 2,796 grocery supermarkets throughout 35 states and the District of Columbia that have helped shaped and developed the Kroger and Baking Company into one of the largest businesses in the United States based out of Cincinnati Ohio. (GuruFocus.com) The Company’s portfolio extends to the implementation of 2,255 pharmacies making it the fifth largest pharmacy business in the nation. (Kroger Company Fact Book) As a result of being the fifth largest pharmacy in the nation, the company recently acquisition and merged a deal with ModernHealth in
Kroger supermarkets were started in 1883 by Barney Kroger. Mr. Kroger invested his life savings of $372 to open a grocery store in downtown Cincinnati. He started his business with the motto: “Be particular. Never sell anything you would not want yourself.” Kroger now has over 2,600 stores in 34 states with annual sales of over 108.5 billion. This makes Kroger one of the world 's largest retailers. Kroger supermarkets were the first to establish their own bakeries “in store.” Kroger operates 37 food processing facilities. Kroger has become large enough to develop their own private label items that account for 26% of their total sales today.
Wal-Mart and Kroger are the two largest chains in the industry and they both were located across the street from one another, 10 miles from Bob’s Hanover location. Chain locations like Wal-Mart Supercenter offered far more than just groceries, they also offered clothing and apparel, pharmacy and merchandise (Parnell, 2014). Also while Bob’s was only open from 7:00am to 10:00pm, Wal-Mart is open 24 hours a day, thus capable of servicing consumers with more options and extended hours. Kroger is also 24 hours and has a customer loyalty program that offers customers discounts on items. Because these locations are so close to Bob’s many consumers are able to constantly shop with these household names and purchase everything they will need at one location, anytime of the day (Parnell,
•They are the most famous and one of the few outlets available in area and footfalls are generally heavy due to these•The places are usually visited very frequently by local people, students, etcPromotion•The joints rely on word of mouth publicity•There is no promotion done through ads for these joints. The promotion at maximum is limited to local newspaperSUGGESTIONS•McDonalds could increase the number of items served on its menu. Currently there are only 6 vegetarian and 6 non-vegetarian items served on the menu. It is also evident from the survey that many people feel that the variety of menu available is average and could be improved. Some of the customers prefer something new every time they visit. These potential customers could be targeted by increasing the number of items in the menu.
In 1883 Bernard (Barney) Kroger invested 372 dollars that consisted of his life savings to open the first ‘Kroger’ grocery. That first store, located at 66 Pearl Street in downtown Cincinnati, would soon turn into the giant retail chain that consists of nearly 2,500 stores all over the country and most recently produced sales of over 76 billion dollars. Barney Kroger was revolutionary in the formation of the modern grocery, in that he was the first grocer to have his own bakery, as well as selling meat and other groceries all under one roof. Kroger was also the first to manufacture the products that he in turn sold in his own store. This was the beginning of what is today one of the largest food manufacturing companies in America.
It all started from a concept of managing a grocery store when Bruce Thompson realized his business plans. It was in Groves, Texas that he first invested and now, the Market Basket has expanded so much and serving different regions with a 34 full-service supermarkets.
Giant Food Stores were founded in 1923 in Carlisle, PA as the Carlisle Meat Market. Since then it has grown into a regional grocery chain operating over 200
delays in store openings for reasons beyond their control, or a lack of desirable real estate locations available for lease at reasonable rates, either of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share;