Reed Supermarket was establlished in 1939, when wiliam H reed opened his first grcery store in kalamazoo, michigan. Now Reed has 192 retail stores, two regional distribution centers and 21,000 employees in five states in the Midwest of the United States. This case summary talks about Reed’s market strategy for the Columbus, Ohio, market in particular, which is one of Reed’s largest markets. The Columbus market has grown slightly over the past five years, while Reed’s market share has dwindled slightly in the market. Reed has watched their market share stagnate with the entrance of new competitors and a dramatic shift in customer preferences to value or quality.
The main issue
Reed supermarket needs a new strategy to grow its current market share and revenues without compromising their customers’ perception of them as a high-end brand.
1. There are many competitors which have branches entering the market somehow with the same segment 2. Prices War , low end price stores to compete with the competitors 3. No consensus within management on what strategy to implement for market share growth. 4. Reed Supermarket is fighting to keep market share in Columbus, Ohio with a growing number of competitors.
Analysis for the alternative
Reed Supermarket position
Reed is considered as market leaders when it comes to product quality and they are high-end grocery store. Competition is present in the Columbus market with Reed’s market share distributed on multiple levels. they should continue to build on their high end reputation and focus on other desires of their existing customers. Management needs to focus on their existing customer base to continue what has made them successful over the last two decades. Rather than trying to establish a discount image that strategy leads to significant negative consequences.
To improve reed base customers, reed needs to research and learn from their customer shopping...
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