In Hong Kong, the A.S. Watson Group and Dairy Farm International Holdings have turned the grocery retailing industry into a monopoly situation for the last thirty years. A.S. Watson Group operates a number of supermarkets under different brand names that target different income groups. The ParknShop is the one of successful brand that under A.S. Watson Group with over 200 stores in Hong Kong. Dairy Farm International Holdings has associated and joint ventures which operated over 5,700 outlets. Wellcome is found under Dairy Farm International Holdings which is the longest-established supermarket chain in Hong Kong. A report studied on the grocery market was conducted on the behaviors of the public in buying retail goods (Consumer Council, …show more content…
However, there are always rooms for struggling. In July 2010, CEC International Holdings Limited had decided to join the competition – 759 Store. To become a blockbuster, 759 Store has chosen to enter the market, with opening its stores at an alarming rate . There were more than hundred branches opened within the first two years. Unlike the traditional supermarket chain stores, 759 Store focuses on selling groceries and snacks. Their goods mainly import from Japan, Korea and other foreign countries, while sells at a relatively low price when comparing with other supermarkets. (759store.com, n.d.). And this action had awakened the awareness of the supermarket giants ParknShop and Wellcome. Long ago, there are always rumors on the supermarket giants ParknShop and Wellcome, they are keeping prices artificially high by pressuring suppliers not to sell to rivals who undercut them. (Nip, 2013). So, suppliers usually provide a recommendation on price to the retailers, so as to avoid those bigger clients complained about competitors selling products at lower prices. Swire’s Coca-Cola has this sort of recommendation price list as …show more content…
759 Store refused to follow Coca-Cola’s recommendation price list which provided and supplied by Swire Pacific. Even Swire Pacific has “advised” 759 Store to follow the price, 759 Store insisted to sell at a lower price which below the recommendation price and the two giant supermarkets’ prices. Finally, 759 Store stopped all Coca-Cola selling. At the meantime, Swire Pacific rejected all the supplies for 759 Stores. (Company statement of Swire Coca-Cola HK on the incident of "759 Store", n.d.) Nothing so bad but might be a blessing, 759 Store became famous as a victim of commercial hegemony when a distributor refused it supplies because it was selling Coca-Cola too cheaply. (The Standard, 2012)
Supermarkets provide an ideal environment for affecting consumer purchasing behaviors cater to the healthy lifestyles of younger consumers while addressing the health concerns of older ones. The behavior of the consumer gives an image of our company.
The framework that will compare Publix Super Markets and its competitors is the Five Forces Model of Competition. The five aspects that will be discussed are the threat of new entrants into the market, the bargaining power of suppliers and buyers, threat of substitute products and rivalry among competing firms. Striving for the optimal position in each of these categories has given Publix Super Markets the reputation it has pride towards earning. It is important to every compa...
America 's grocery industry is a big business. It is so big in fact, that a few major corporations dominate it. For example Walmart 's grocery business in the US accounts for approximately 56% of the company 's sales. This is the equivalent of $188B per year. It 's nearest competitor, Kroger 's total sales volume for 2014 was less than one third that of Walmart. (Soni, par. 1) Another
Presenting a variety of services, the company has established the supercenter model. Vendors and suppliers for Meijer have to meet requirements that need to be quality checked and supply a third party audit report on product and facilities. They keep a tight control on which they purchase merchandise from, and by offering grocery items next to pet supplies, leading to housewares, clothing, sports equipment, toys, electronics, and health items, all selections are included in the retail environment and available with a smooth transition through the establishment. The one place to shop locally for your needs, earn rewards and help local community is the vision Meijer looks for in every store
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
When looking at the general attitude of shoppers toward each of the three shopping areas, several important facts are needed to prepare the results. The average response or mean, the size of the sample of our population and clarification on the level of confidence acceptable to the end user of the survey all cont...
The purpose of this memo is to show the affects of how Albertson’s is trying to implement many strategies in order to try, and compete with its powerhouse competitor Wal-Mart. This memo will contain information on steps Albertson’s is taking to gain back some of the market share that Wal-Mart has swallowed up. It will also describe Albertson’s planned innovations that will be what determines their success. Lastly it will discuss how through IT as well as a successful implementation of satisfying consumers demands, will possibly allow them to compete with the ever so powerful Wal-Mart.
I found in interesting that the company exploits a relatively small amount of marketing, less than 1 percent of revenue. They are able to keep a tight hold on their brand as most of the stores are company-owned.
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
... and Engel, J. (2007). Consumer Behaviour An Asia Pacific Approach. Australia: Nelson Australia Pty Limited. 172.
It is one of the largest hypermarket chains in the world, the second largest retail group in the world in terms of revenue, and the third in profit.
Challenges in Today's U.S. Supermarket Industry. 2014. Challenges in Today's U.S. Supermarket Industry. [ONLINE] Available at:http://msdn.microsoft.com/en-us/library/aa479076.aspx. [Accessed 31 March 2014].
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
The nature of the business of retailing puts retailers at a assumed risk of incurring costs because products are bought with the assumption that consumers will purchase. Additionally there are external factors that may also pose risks such as natural disasters, theft, spoilage and fire. In other circumstances retailers also extends financial credit to customers in the form of credit sales which facilitates the smooth transition from retailers to the marketplace. Retailers are in constant contact with customers which gives them the opportunity to research and study buyer’s behaviour. This involves collecting information about changes in customer preferences, perception and shifts in the demand curve. Through advertising within their stores retailers are able to exhibit and introduce existing and new products to the marketplace. Ultimately retailers are in the business of selling products to customers to achieve their goals of generating
As was known, FamilyMart is the convenience store that sells all kinds of goods that satisfy all the needs of people's daily life. In this case, the goods that FamilyMart purchases from suppliers wo...