This document discusses Booths, a small regional supermarket chain in northern England. [1] It provides background on the market, including Booths' small market share in an oligopoly market with strong competitors. [2] It then covers Booths' unique selling points around local and fresh products. [3] A SWOT analysis identifies strengths in quality and suppliers, but also weaknesses in high prices and limited promotions, as well as threats from larger competitors and economic conditions. [3] The document concludes with recommendations around maintaining product advantages while expanding offerings, using strategic pricing and promotions, improving store locations and service.
2. CONTENT
I - Introduction
II - The background of the market
Market share
Competitors
Consumers
Special time
Segmentation
III – Unique Selling Points
IV – Threats and Opportunities
V – Recommendations
3. Introduction
. Small family supermarket chain
Founded in 1847 by Edwin J Booth
. Specificity : regional supermarkets (North England)
local products
. 26 stores located in the north of England
. Headquarters in Preston
. £250 millions in 2009 (+5,4%)
. 3000 employees
. Edwin Booth's philosophy :
“Sell the best goods available, in attractive
stores, staffed with first class assistants”.
5. COMPETITORS
The “Big 4” Tesco – ASDA – Morrison’s – Sainsbury’s
47% of British shopper’s spending on food in supermarkets
Other “ethical supermarkets”
The higher the rating the more ethical the brand.
BRAND RATING
Co-op supermarkets 7
Booths supermarkets 6.5
Farmfoods supermarkets 6.5
Budgens supermarkets 6
Londis supermarkets 6
Mark & Spencer supermarkets 5.5
http://www.ethicalconsumer.org/FreeBuyersGuides/miscellaneous/supermarkets.aspx
6. CONSUMERS
ETHICAL CONSUMERS
Since 2006, BOOTHS focus on a green issue
comfortable standard living consumers
price of products
environment-conscious consumers
local products (less transport,
focus on local activity)
12. UNIQUE SELLING POINTS
o Fresh products
o Typical north English products
o Products and brands which directly come from other countries
Meats
80% of the fresh meat is regionally sourced.
Cheese
Local, national and continental with over
90 varieties to choose from.
14. STRENGHTS
STRENGHTS
o High quality product
o Wide product range in foods and drinks
o Big car park
o Comfortable buying atmosphere
o Good market segmentation
o Strong regional suppliers
o A very strong label position
15. WEAKNESSES
WEAKNESSES
o Price - very high
o Location - far away from city centre
o Lack of promotion - less advertising
o Limited choice of non-food products, such as household ware
16. OPPORTUNITIES
OPPORTUNITIES
o Government and people preoccupations concerning fresh products
Booths USP : high quality products and organic food
o Brand identity
Brand image in customers’ heads
Booths refers to quality
17. THREATS
4 BIG THREATS
o Strong competition
from other supermarkets
from other types (One Stop, small stores, etc …)
o Material price
. Product from global
. New products ?
. Requirement from global
. More export
18. THREATS
o Global marketing
o Local economy
. High unemployment rate
. Economic crisis
. Financial windstorm, debt crisis
. GDP
20. RECOMMENDATIONS
Product strategy
maintain the product advantages
high quality; complete varieties
extend the private lable product
keep the product sourcing & inventory
21. RECOMMENDATIONS
Price strategy
discount pricing
quality eg: dozen cheaper than odd sale
festival eg: Christmas
student
psycological pricing
break even point sales
buy one get one free
oddment eg: £1.96 is much cheaper than £2