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Food Localization:
Niche Merchandising
PRESENTED BY EXECUTIVE DETECTIVES:
L I N D S AY B R I G H T W E L L
EILEEN CORLEY
MICHAEL DIGIORGIO
FAW N A WA S S O N
What to Expect!
Company overview
Project objective
Initial SWOT
Implementation

After SWOT
Questions

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Target - Company Overview
Who are we?
o Expect more, pay less!

US Age Demographics

Who are our guests?
o Avg. Age
o Avg. Income
o College Education
o Children at Home

3/2/2014

= 40
= $64,000
= 55%
= 43%

Under 18

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

18-65

Over 65

Expect more, pay less!
Project Objective
To gain local relevancy while maintaining its corporate
brand, margin goals, and commitment to shareholders in
order to provide a relevant shopping experience for our
customers.

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
SWOT Analysis as of Now
Strengths

Weaknesses

Opportunities

Feed the latest trends;
one-stop-shop; visually
appealing stores;

Products not
segmented; low
inventory; self-service
focus;

Product promotion;
Economic growth;
store expansion;
unemployment;
demand for private label inflation;
products

Brand awareness:
Expect more, pay less! ;
1st largest retail in
America

Damage reputation
(Data Security Breach);
Not always lowest
prices;
Stores are not location
specific

Room for new localized
merchandise

3/2/2014

Threats

Competition: Costco, KMart, & Wal-Mart

In EXPANSION of
business cycle!

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Implementation – Online Surveys
Brief survey
oAllows customer to obtain additional discount on overall purchase
Implement at checkout

oInformation on store receipts
oExample:
Q: What style BBQ sauce do you prefer?
a)
b)
c)
d)

3/2/2014

Tangy
Original
Spicy
Other – Please indicate!

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Implementation – Product Specific
Regionalized BBQ sauce – store location
oThrough FDC

Promotions (Location Specific)
oREDcard Exclusive Offers
oiBeacon – discounts according to location
oBOGO – Compliments in economics

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Implementation – Mobile Application
iBeacon
oPromo’s according to location
Certain products, certain areas

oTexts/Notifications while in store

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Food Distribution Center Locations
Ft. Worth, Texas
Phoenix, Arizona
Lake City, Florida
Cedar Falls, Iowa

**West Jefferson, Ohio**

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Implementation – Regional Map
Midwest Region
oRegion specific according
to preference and stock store
locations accordingly.
Tomato
Vinegar/mustard
& sugar
Tomato & vinegar

Mop sauce/spicy

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Implementation – Product Specific
Ex.
Kansas City, MO. (Region)
oKansas City Style

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
SWOT Analysis After Implementation
Strengths

Weaknesses

Opportunities

Threats

Targeted market due to
localized products;
relevant branding &
shopping experience for
customers.

Higher shipping cost;
customer rejection of
new brands;

Larger consumption;
growth to implement
with other products

Competitors can use
similar tactics; economy;
inflation;
unemployment

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Project Timeline
4 months of
Research &
Development

4 months of
Implementation

Adjustments

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!
Questions?

3/2/2014

ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION

Expect more, pay less!

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2014 Target Case Competition

  • 1. Food Localization: Niche Merchandising PRESENTED BY EXECUTIVE DETECTIVES: L I N D S AY B R I G H T W E L L EILEEN CORLEY MICHAEL DIGIORGIO FAW N A WA S S O N
  • 2. What to Expect! Company overview Project objective Initial SWOT Implementation After SWOT Questions 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 3. Target - Company Overview Who are we? o Expect more, pay less! US Age Demographics Who are our guests? o Avg. Age o Avg. Income o College Education o Children at Home 3/2/2014 = 40 = $64,000 = 55% = 43% Under 18 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION 18-65 Over 65 Expect more, pay less!
  • 4. Project Objective To gain local relevancy while maintaining its corporate brand, margin goals, and commitment to shareholders in order to provide a relevant shopping experience for our customers. 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 5. SWOT Analysis as of Now Strengths Weaknesses Opportunities Feed the latest trends; one-stop-shop; visually appealing stores; Products not segmented; low inventory; self-service focus; Product promotion; Economic growth; store expansion; unemployment; demand for private label inflation; products Brand awareness: Expect more, pay less! ; 1st largest retail in America Damage reputation (Data Security Breach); Not always lowest prices; Stores are not location specific Room for new localized merchandise 3/2/2014 Threats Competition: Costco, KMart, & Wal-Mart In EXPANSION of business cycle! ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 6. Implementation – Online Surveys Brief survey oAllows customer to obtain additional discount on overall purchase Implement at checkout oInformation on store receipts oExample: Q: What style BBQ sauce do you prefer? a) b) c) d) 3/2/2014 Tangy Original Spicy Other – Please indicate! ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 7. Implementation – Product Specific Regionalized BBQ sauce – store location oThrough FDC Promotions (Location Specific) oREDcard Exclusive Offers oiBeacon – discounts according to location oBOGO – Compliments in economics 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 8. Implementation – Mobile Application iBeacon oPromo’s according to location Certain products, certain areas oTexts/Notifications while in store 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 9. Food Distribution Center Locations Ft. Worth, Texas Phoenix, Arizona Lake City, Florida Cedar Falls, Iowa **West Jefferson, Ohio** 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 10. Implementation – Regional Map Midwest Region oRegion specific according to preference and stock store locations accordingly. Tomato Vinegar/mustard & sugar Tomato & vinegar Mop sauce/spicy 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 11. Implementation – Product Specific Ex. Kansas City, MO. (Region) oKansas City Style 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 12. SWOT Analysis After Implementation Strengths Weaknesses Opportunities Threats Targeted market due to localized products; relevant branding & shopping experience for customers. Higher shipping cost; customer rejection of new brands; Larger consumption; growth to implement with other products Competitors can use similar tactics; economy; inflation; unemployment 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 13. Project Timeline 4 months of Research & Development 4 months of Implementation Adjustments 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!
  • 14. Questions? 3/2/2014 ALPHA KAPPA PSI 2014 TARGET CASE COMPETITION Expect more, pay less!

Notas do Editor

  1. We are a company attempting to prove to our customers that they can get what they need, while getting the best deal.Expect more, Pay less! That’s our goal.