1. JP Hussey | Chris Johnson | Zander Magee | Brad Pehr
Username
Password
EatRite Supermarket
EatRite Eat Fresh
Deloitte Undergraduate Case Competition
February 12, 2016

2. Act Extract Attract Impact
2
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
ImpactRecommendationsExecutive Summary

3. 3
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
RecommendationsImpact
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Recommendations
Act Extract Attract Impact

4. 4
Act Extract Attract Impact
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Recommendations
Personalized Website and Mobile App
Innovative shopping experience combining online
orders, in-store pickups, and recommendations
tailored to the individual customer
Integrated Customer Loyalty Program
EatRite customers earn fresh points through
repeat purchases to reward customer loyalty and
retain the existing consumer base
Geographic Expansion to New Markets
Strategically penetrate markets in new cities to
access new customers and regain market share

5. 5
Act Extract Attract Impact
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Recommendations
Integrated Customer Loyalty Program
EatRite customers earn fresh points through
repeat purchases to reward customer loyalty and
retain the existing consumer base
Geographic Expansion to New Markets
Strategically penetrate markets in new cities to
access new customers and regain market share
Personalized Website and Mobile App
Innovative shopping experience combining online
orders, in-store pickups, and recommendations
tailored to the individual customer

6. 6
Act Extract Attract Impact
My Select
Check your account, redeem
fresh points, and see saved
orders
Daily Deals
Find out what we’re cooking up
for you today
What’s New
See what our store has been
bringing to the table recently
EatRite Lifestyle
Browse recipes, check out our
brand, and learn more about
what we stand for
EatRite can become the first grocery store that allows customers
to walk our aisles from the comfort of their own home
Source: Team Analysis
Take a stroll through our store
You recently bought:
Add to cartSee more
You might also like:
EatRite Eat Fresh
Original multigrain
cereal
1
EatRite Eat Fresh
Vitamin D Milk
1

7. 7
Act Extract Attract Impact
A mobile app that can walk you through the process of ordering
groceries without having to go to the store
Source: Excentus, FollowAnalytics

8. 8
Act Extract Attract Impact
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Recommendations
Personalized Website and Mobile App
Innovative shopping experience combining online
orders, in-store pickups, and recommendations
tailored to the individual customer
Geographic Expansion to New Markets
Strategically penetrate markets in new cities to
access new customers and regain market share
Integrated Customer Loyalty Program
EatRite customers earn fresh points through
repeat purchases to reward customer loyalty and
retain the existing consumer base

9. 9
Act Extract Attract Impact
EatRite Select gives you the features of same-day pickup and a
special points-based rewards system
Source: Retail TouchPoints, Nielsen
Same-day
Pickup
Rewards
System
44% of
consumers are more
likely to shop if
Click&Collect offered
Improvements in
perceived efficiency
increase sales
33%
Phone notifications for pickup;
skip the line, save your time
Order and pay online through
your SELECT account
Choose pickup options:
Express, Quick, and Standard
Earn 1 point for
every $30 spent;
1 point= $1FreshPoint™
69% of consumers say retailer choice
influenced by where they can earn
loyalty rewards
Tiers based on career
FreshPoints™
Monthly point
competitions

10. 10
Act Extract Attract Impact
EatRite Select gives you the features of personalized discounts,
weekly newsletters and lets you save your favorite orders
Source: DigitalTrends, Gigya, Mintel Oxygen
Special
Discounts
Newsletters &
Saved Orders
BIG DATA
Store
Trends
Purchase
History
Targeted
Marketing
73% of consumers
prefer brands that use
data to make their
shopping more relevant
How to make
“EatRite
EatFresh” a
lifestyle
Save common
orders to
reduce hassle
and suggest
items
81% of online
shoppers
receiving targeted
emails were more
likely to purchase
45% of shoppers
more likely to shop
stores with
personal
recommendations

11. 11
Act Extract Attract Impact
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Recommendations
Personalized Website and Mobile App
Innovative shopping experience combining online
orders, in-store pickups, and recommendations
tailored to the individual customer
Integrated Customer Loyalty Program
EatRite customers earn fresh points through
repeat purchases to reward customer loyalty and
retain the existing consumer base
Geographic Expansion to New Markets
Strategically penetrate markets in new cities to
access new customers and regain market share

12. 12
Act Extract Attract Impact
Geographic expansion proposal based on various demographic
metrics
Source: Simply Map, Nielsen, Statista, Business Insider, Social Explorer
City Composite Ranking
Minneapolis 3.29
Charlotte 3.57
Chicago 3.86
Boston 4.29
Philadelphia 4.57
Indianapolis 4.67
Nashville 4.86
Baltimore 6.43
Minneapolis, Charlotte, and Chicago score the
highest on key metrics for promising new stores
 Strong growth potential
 High concentration of Millenials
 Within regional Brand boundaries
Tier 1
Tier 2
Tier 3

13. 13
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
RecommendationsImpact
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
Recommendations
Act Extract Attract Impact

14. 14
Act Extract Attract Impact
Basic framework of data use for the modernization of the company
Source: Bain, Deloitte, McKinsey
“It really seems like we’re behind the ball
on some of this analytics stuff. We have a
ton of data- we should be using it”
-John Reilly
2x more likely to be in top
quartile of financial performance
3x more likely to execute
decisions as intended
5xmore likely to make
decisions faster

15. 15
Act Extract Attract Impact
Third-party vendor analysis to outsource data analytics
Source: SAS, Dell, Microsoft
Predictive
Analytics
Data
Mining
Location
Intelligence
Expertise Innovation Capacity Price
SAS
Dell
Microsoft
Our
Operations
SAS is best equipped to fulfill all of EatRite’s big data needs

16. 16
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
RecommendationsImpact
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
Recommendations
Act Extract Attract Impact

17. 17
Act Extract Attract Impact
Why is EatRite Having So Much Trouble?
Source: Deloitte
• Average age of the workforce is in their early 50’s
• Need new, young talent that has energy and creativity to
drive company into 21st century
• This is a bad combination and it’s hurting the company as
they fall behind
Old
• 55% of employees reported that they do not see a clear
connection between performance pay, showing a lack of
incentives to work harder
• Among early career employees there are extremely high
turnover rates and unclear career paths and opportunities
Unclear
• Company culture is hierarchical, slow and very traditional
• Management is having difficulty adapting to new demands
• Performance processes have not been updated in over 15
years
Outdated

18. 18
Act Extract Attract Impact
How do we plan to get EatRite back on track?
Source: Team Analysis
Recruit and Train for New Direction Review and Promote Top Performers
• Bakeries
• Delis
• Ready to eat meals
New
training to
bolster our
offerings
•University pipelines
for store managers
•Train young/ unskilled
workers as specialized
store employees
Recruit
from
new
sources
Standardized reviews incorporating
feedback from subordinates, peers, and
superiors
Yearly conferences to promote dialogue
between store managers and corporate on
new training ideas and strategies
Top 25% of store managers receive
leadership training and promotion eligibility

19. 19
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Impact
Act Extract Attract Impact
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Recommendations

20. 20
Act Extract Attract Impact
Conservative financial projections show that EatRite can increase
market share and net profit by implementing recommendations
Source: HBR, Nielson, Case Packet, Team Analysis

21. Act Extract Attract Impact
21
EatRite can regain traction in the supermarket industry and leverage analytics to
become a pioneer in the realm of e-commerce and customer experience
Act Strategically to Grow
Implement plans to expand
brand while optimizing
consumer experience
Implementing these recommendations could increase profit margin to
2.5% and market share to 1.25% by 2020
Extract Insights from Data
Outsource data management
to third party vendor with
experience and expertise
Attract Young Employees
Utilize methods to locate and
hire young and adaptable
new employees
ImpactRecommendationsQuestions?

22. 22
Act Extract Attract Impact
Appendix
Introduction
Title Slide
Executive Summary
Act
Website Platform
Mobile Platform
Loyalty Program
Loyalty Program 2
Geographic Expansion
Extract
Situation Analysis
Contract SAS
Attract
Situation Analysis
Recommended Program
Impact
Financial Illustration
Financial Breakdown
Risk & Mitigations
Timeline
Background
SWOT
Competitive Analysis
Competitive Ranking
Other
Word of Mouth
Benchmarking Loyalty
Millennial Customer
Competing Websites
In Store Pickup
Pay for Premium Brand
Customers Seek Value
Shoppers vs. Duration
Time by Day
Time by Hour
Millennial Employee
Changing Workforce

23. 23
Act Extract Attract Impact
Conservative financial projections show that EatRite can increase
market share and net profit by implementing recommendations
Source: HBR, Nielson, Case Packet, Team Analysis

24. 24
Act Extract Attract Impact
Possible implementation risks and mitigations
Source: Team Analysis

25. 25
Act Extract Attract Impact
Estimated timeline for strategy implementations
Source: Team Analysis

26. 26
Act Extract Attract Impact
EatRite’s SWOT analysis
Source: Team Analysis

27. 27
Act Extract Attract Impact
Before and after benchmark analysis on EatRite’s competitors
(Data on next slide)
Source: Forbes, Business Insider

28. 28
Act Extract Attract Impact
Benchmark analysis on EatRite’s competitors
Source: Forbes, Business Insider

29. 29
Act Extract Attract Impact
Organically growing new customers through effective word of
mouth marketing
Source: Nielsen

30. 30
Act Extract Attract Impact
Other loyalty programs for EatRite to benchmark
Source: Starbucks, Amazon, National Car Rental, Statista

31. 31
Act Extract Attract Impact
Customer profile of a millennial
Source: Nielsen, Statista, Consumer Profile Index

32. 32
Act Extract Attract Impact
What leading online competitors do well
Source: Whole Foods, Amazon, Expedia

33. 33
Act Extract Attract Impact
Why in-store pickup is a good idea for EatRite
Source: McKinsey

34. 34
Act Extract Attract Impact
Grocery customers are more than willing to pay for premium
store brand products
Source: Booz & Company

35. 35
Act Extract Attract Impact
Industry trends demonstrate opportunity to provide targeted
discounts and promotions
Source: Booz & Company

36. 36
Act Extract Attract Impact
The current buying process is not efficient for consumers or
sumermarkets
Source: The Time Use Institute

37. 37
Act Extract Attract Impact
Heavier weekend foot traffic means that customers have to wait
longer to purchase their products
Source: The Time Use Institute

38. 38
Act Extract Attract Impact
Expedited pickup options can be charged surge pricing within
peak hours
Source: The Time Use Institute

39. 39
Act Extract Attract Impact
Employee profile of a millennial
Source: Nielsen, Statista, Consumer Profile Index

40. 40
Act Extract Attract Impact
Rapidly changing workforce composition
Source: PEW Research Center
Not only are Millennials the majority, they are the fastest growing group in the US
workforce. By 2025, they are projected to make up 75% of the workforce.
Workforce Composition 1995
Silents Baby Boomers
Generation X Millennials
Workforce Composition 2015
Silents Baby Boomers
Generation X Millennials