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  • Superior Supermarket

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    Roshni Neog
    456 просмотров12 страниц
    James elis: Superior's District Manager wanted everyday low pricing reconsidered. He says research shows higher prices, growing price consciousness in Centralia. Decision was made to continue current pricing strategy pending further study, he says. In 2002, Hall Consolidated sales in the u.s. Were $2. Billion.

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    James elis: Superior's District Manager wanted everyday low pricing reconsidered. He says research shows higher prices, growing price consciousness in Centralia. Decision was made to continue current pricing strategy pending further study, he says. In 2002, Hall Consolidated sales in the u.s. Were $2. Billion.

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    456 просмотров12 страниц

    Superior Supermarket

    Загружено:

    Roshni Neog
    James elis: Superior's District Manager wanted everyday low pricing reconsidered. He says research shows higher prices, growing price consciousness in Centralia. Decision was made to continue current pricing strategy pending further study, he says. In 2002, Hall Consolidated sales in the u.s. Were $2. Billion.

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    Attribution Non-Commercial (BY-NC)
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    Superior Supermarkets Everyday Low Pricing In carly April 2003, James Elis was reviewing the first-quarter financial results for Superior Supermarkets, As Senior Vice President at Hall Consolidated and Presient of Superior Supermatkets, he was about to meet with the District Manager responsible for three Superior stores in Centralia, Missouri. Others in attendance would be Hall Gonsolidated’s Vice President of Retail Operations and the Controller for Superior Supermarkets, The agenda for the frst of four quarterly meetings scheduled for 2003 Rus to discuss the district's progress toward achieving planned goals and address any issues related to the District Manager's supermarkets, {np anticipation of the quarterly review, Randall Johnson, the District HT Manager for Superior Supermarkets, had proposed that everyday low pricing he reconsidered for his three stores in Centralia.” He cited company rescatvlh documenting Superior's ‘felaively higher prices in Centrala and the growing price consciousness among Centralia shoppers. He also noted that Superior Supermarkets could tose market share in Centralia since store sales were below budgeted levels inthis first quarter of 2005. He added that 2002 fourth-quarter sales revenue, which was normally a heavy sales period due to the Thanksgiving and Christmas holidays, was also lower than sales for the same period in 2001 The everyday low pricing strategy option for Centralia had been discussed briefly in) August 2002 as part of the annual planning process, However, a decision was made to continue Superior’s current pricing strategy pending further study. James Elis believed that the time had come to formally address the question in deta "ANY ‘Superior Supermarkets is a division of Hall Consolidated, a privately owned wholesale and retail food distsibutor. Hall Consolidated was formed in 1959 and initially included 3 number of wholesale food operations ‘and produce companies. The company’s frst retail grocery store chain was purchased in 1970, The Superior Supermarket chain wes acquired in 1975. By 2002, Hall Consolidated distributed food and related products to some 150 company-owned supermarket units operating under three supermarset chain names through 12 wholesate distribution centers. These distribution centers also supplied about 1,100 independent grocery stores in the United States. Hall Consolidated sales in 2002 were $2.3 billion {hah an everyday low price policy, ear charges a constant, lower everyday price for merchandise Rh few if any. pice discounts, This practice difes om 4-HcLo" price pulcy heehee ae ‘fates higher prices on an everyday basis but chen rns frequent promotions ses of specter ie ‘hich selected merchandise paces aze deeply discount ‘Ts case was prepared by Professor Roger A Kevin, ofthe Evin L Cox Stoo of Business, Sou Mesos University: as a bass for cass discundon sl not designed to deine cree 458 (CHAPTER & PRICING STRATEGY AND MANAGEMENT superior is the smallest ofthe unree supermarket chins owned Py HM) Consotie dated pith sales of $192.2 million in 2002, Superior operates conventional s\PeT=N: (aes bade areas that served small cities and towns in the South Cena United, ae rhe median size of a Superior Supermarket was 20,730 square fet, HIG 's a ns pmall by industry standards (dhe mean size of a supermnet i We rena cereates is about 4,000 square feet). Nevertheless, Superior was the PURE Y ne er? ranked supermarket chain in each ofits trade markets 35 measure by mmagket share COMPETITIVE ENVIRONMENT IN ¢ TRALIA, MISSOURI

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