Topic > Grocery Stores and Their Strategies

Table of ContentsGrocery Stores Consumer Targeting StrategyPositioning Statement Market Cart:Shaw's Positioning Statement:Sam's Club Positioning StatementGrocery Stores Consumer Targeting StrategyLast week I visited three stores in the Portland area that specifically cater to consumers in need of groceries. These three stores were Market Basket in Biddeford, Sam's Club in Scarborough and Shaw's in Scarborough. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The first store I visited was Market Basket in Biddeford. Market Basket is a grocery chain that sells name-brand products as well as its own Market Basket brand items such as bagels and bread. The company is based in the New England region and has approximately 75 supermarkets. This centralized approach leads to lower overhead and ultimately allows Market Basket to offer lower prices than other supermarket chains. They in turn target everyday consumers looking for good prices. The Biddeford location also features a cafe area where consumers can also purchase drinks, sandwiches and other items to enjoy in the store. This approach to creating a quick but also healthy coffee compared to the typical “prepared meals” of other grocery stores differentiates Market Basket from its competitors. Market Basket demonstrates the 4Ps in several ways. As far as products go, the store is quite large and offers a large variety of items. Their coffee offers another incentive to shop at a competitor's store. Their price is much lower than other competitors, creating an environment where repeat buyers come in more often since they won't depend on weekly sales to return. They are also in a great position with their business model. Being centralized entirely in New England allows Market Basket to manage overhead expenses well across all of its stores. The promotion is carried out mainly in local newspapers which have attached a weekly sales offer flyer. Being a grocery store, they target local customers, making this promotional approach perfect for their business model. The second store I visited was Shaw's in Scarborough. This supermarket has over 100 stores in the New England region. Unlike Market Basket, prices often appear higher than other supermarkets in the area. Shaw's makes up for this by offering bigger discounts within their weekly flyers. In turn, Shaw's appears to be targeting different groups of customers who will be attracted to stop by depending on the items featured in their weekly flyers instead of building a large base of repeat customers. Shaw's also offers a pharmacy within its stores, something Market Basket does not have. Although they offer this pharmacy service, they do not offer a cafe, but only take a “ready meals” approach. Shaw's shows the 4 Ps a little differently than Market Basket. They offer a slightly smaller variety of products within their store due to the size difference between the specific stores I visited. Price-wise, Shaw's is typically more expensive than Market Basket and relies more on weekly flyer sales to attract customers. Like Market Basket, Shaw's is also in a great position for its business model. Being entirely centralized in New England allows Shaw's to manage overhead expenses well across all of its stores. Shaw's also promotes the same way as Market Basket by handing out flyers.