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EatRite
- 1. JP Hussey |Chris Johnson | Zander Magee | Brad Pehr Username Password EatRite Supermarket EatRite Eat Fresh Deloitte Undergraduate Case Competition February 12, 2016
- 2. Act Extract AttractImpact 2 EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Implementing these recommendations could increase profit margin to 2.5% and market share to 1.25% by 2020 Extract Insights from Data Outsource data management to third party vendor with experience and expertise Attract Young Employees Utilize methods to locate and hire young and adaptable new employees ImpactRecommendationsExecutive Summary
- 3. 3 Implementing these recommendationscould increase profit margin to 2.5% and market share to 1.25% by 2020 Extract Insights from Data Outsource data management to third party vendor with experience and expertise Attract Young Employees Utilize methods to locate and hire young and adaptable new employees RecommendationsImpact EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Recommendations Act Extract Attract Impact
- 4. 4 Act Extract AttractImpact Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Recommendations Personalized Website and Mobile App Innovative shopping experience combining online orders, in-store pickups, and recommendations tailored to the individual customer Integrated Customer Loyalty Program EatRite customers earn fresh points through repeat purchases to reward customer loyalty and retain the existing consumer base Geographic Expansion to New Markets Strategically penetrate markets in new cities to access new customers and regain market share
- 5. 5 Act Extract AttractImpact Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Recommendations Integrated Customer Loyalty Program EatRite customers earn fresh points through repeat purchases to reward customer loyalty and retain the existing consumer base Geographic Expansion to New Markets Strategically penetrate markets in new cities to access new customers and regain market share Personalized Website and Mobile App Innovative shopping experience combining online orders, in-store pickups, and recommendations tailored to the individual customer
- 6. 6 Act Extract AttractImpact My Select Check your account, redeem fresh points, and see saved orders Daily Deals Find out what we’re cooking up for you today What’s New See what our store has been bringing to the table recently EatRite Lifestyle Browse recipes, check out our brand, and learn more about what we stand for EatRite can become the first grocery store that allows customers to walk our aisles from the comfort of their own home Source: Team Analysis Take a stroll through our store You recently bought: Add to cartSee more You might also like: EatRite Eat Fresh Original multigrain cereal 1 EatRite Eat Fresh Vitamin D Milk 1
- 7. 7 Act Extract AttractImpact A mobile app that can walk you through the process of ordering groceries without having to go to the store Source: Excentus, FollowAnalytics
- 8. 8 Act Extract AttractImpact Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Recommendations Personalized Website and Mobile App Innovative shopping experience combining online orders, in-store pickups, and recommendations tailored to the individual customer Geographic Expansion to New Markets Strategically penetrate markets in new cities to access new customers and regain market share Integrated Customer Loyalty Program EatRite customers earn fresh points through repeat purchases to reward customer loyalty and retain the existing consumer base
- 9. 9 Act Extract AttractImpact EatRite Select gives you the features of same-day pickup and a special points-based rewards system Source: Retail TouchPoints, Nielsen Same-day Pickup Rewards System 44% of consumers are more likely to shop if Click&Collect offered Improvements in perceived efficiency increase sales 33% Phone notifications for pickup; skip the line, save your time Order and pay online through your SELECT account Choose pickup options: Express, Quick, and Standard Earn 1 point for every $30 spent; 1 point= $1FreshPoint™ 69% of consumers say retailer choice influenced by where they can earn loyalty rewards Tiers based on career FreshPoints™ Monthly point competitions
- 10. 10 Act Extract AttractImpact EatRite Select gives you the features of personalized discounts, weekly newsletters and lets you save your favorite orders Source: DigitalTrends, Gigya, Mintel Oxygen Special Discounts Newsletters & Saved Orders BIG DATA Store Trends Purchase History Targeted Marketing 73% of consumers prefer brands that use data to make their shopping more relevant How to make “EatRite EatFresh” a lifestyle Save common orders to reduce hassle and suggest items 81% of online shoppers receiving targeted emails were more likely to purchase 45% of shoppers more likely to shop stores with personal recommendations
- 11. 11 Act Extract AttractImpact Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Recommendations Personalized Website and Mobile App Innovative shopping experience combining online orders, in-store pickups, and recommendations tailored to the individual customer Integrated Customer Loyalty Program EatRite customers earn fresh points through repeat purchases to reward customer loyalty and retain the existing consumer base Geographic Expansion to New Markets Strategically penetrate markets in new cities to access new customers and regain market share
- 12. 12 Act Extract AttractImpact Geographic expansion proposal based on various demographic metrics Source: Simply Map, Nielsen, Statista, Business Insider, Social Explorer City Composite Ranking Minneapolis 3.29 Charlotte 3.57 Chicago 3.86 Boston 4.29 Philadelphia 4.57 Indianapolis 4.67 Nashville 4.86 Baltimore 6.43 Minneapolis, Charlotte, and Chicago score the highest on key metrics for promising new stores Strong growth potential High concentration of Millenials Within regional Brand boundaries Tier 1 Tier 2 Tier 3
- 13. 13 Act Strategically toGrow Implement plans to expand brand while optimizing consumer experience Implementing these recommendations could increase profit margin to 2.5% and market share to 1.25% by 2020 Attract Young Employees Utilize methods to locate and hire young and adaptable new employees RecommendationsImpact EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Extract Insights from Data Outsource data management to third party vendor with experience and expertise Recommendations Act Extract Attract Impact
- 14. 14 Act Extract AttractImpact Basic framework of data use for the modernization of the company Source: Bain, Deloitte, McKinsey “It really seems like we’re behind the ball on some of this analytics stuff. We have a ton of data- we should be using it” -John Reilly 2x more likely to be in top quartile of financial performance 3x more likely to execute decisions as intended 5xmore likely to make decisions faster
- 15. 15 Act Extract AttractImpact Third-party vendor analysis to outsource data analytics Source: SAS, Dell, Microsoft Predictive Analytics Data Mining Location Intelligence Expertise Innovation Capacity Price SAS Dell Microsoft Our Operations SAS is best equipped to fulfill all of EatRite’s big data needs
- 16. 16 Act Strategically toGrow Implement plans to expand brand while optimizing consumer experience Implementing these recommendations could increase profit margin to 2.5% and market share to 1.25% by 2020 Extract Insights from Data Outsource data management to third party vendor with experience and expertise RecommendationsImpact EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Attract Young Employees Utilize methods to locate and hire young and adaptable new employees Recommendations Act Extract Attract Impact
- 17. 17 Act Extract AttractImpact Why is EatRite Having So Much Trouble? Source: Deloitte • Average age of the workforce is in their early 50’s • Need new, young talent that has energy and creativity to drive company into 21st century • This is a bad combination and it’s hurting the company as they fall behind Old • 55% of employees reported that they do not see a clear connection between performance pay, showing a lack of incentives to work harder • Among early career employees there are extremely high turnover rates and unclear career paths and opportunities Unclear • Company culture is hierarchical, slow and very traditional • Management is having difficulty adapting to new demands • Performance processes have not been updated in over 15 years Outdated
- 18. 18 Act Extract AttractImpact How do we plan to get EatRite back on track? Source: Team Analysis Recruit and Train for New Direction Review and Promote Top Performers • Bakeries • Delis • Ready to eat meals New training to bolster our offerings •University pipelines for store managers •Train young/ unskilled workers as specialized store employees Recruit from new sources Standardized reviews incorporating feedback from subordinates, peers, and superiors Yearly conferences to promote dialogue between store managers and corporate on new training ideas and strategies Top 25% of store managers receive leadership training and promotion eligibility
- 19. 19 Implementing these recommendationscould increase profit margin to 2.5% and market share to 1.25% by 2020 Impact Act Extract Attract Impact Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Extract Insights from Data Outsource data management to third party vendor with experience and expertise Attract Young Employees Utilize methods to locate and hire young and adaptable new employees EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Recommendations
- 20. 20 Act Extract AttractImpact Conservative financial projections show that EatRite can increase market share and net profit by implementing recommendations Source: HBR, Nielson, Case Packet, Team Analysis
- 21. Act Extract AttractImpact 21 EatRite can regain traction in the supermarket industry and leverage analytics to become a pioneer in the realm of e-commerce and customer experience Act Strategically to Grow Implement plans to expand brand while optimizing consumer experience Implementing these recommendations could increase profit margin to 2.5% and market share to 1.25% by 2020 Extract Insights from Data Outsource data management to third party vendor with experience and expertise Attract Young Employees Utilize methods to locate and hire young and adaptable new employees ImpactRecommendationsQuestions?
- 22. 22 Act Extract AttractImpact Appendix Introduction Title Slide Executive Summary Act Website Platform Mobile Platform Loyalty Program Loyalty Program 2 Geographic Expansion Extract Situation Analysis Contract SAS Attract Situation Analysis Recommended Program Impact Financial Illustration Financial Breakdown Risk & Mitigations Timeline Background SWOT Competitive Analysis Competitive Ranking Other Word of Mouth Benchmarking Loyalty Millennial Customer Competing Websites In Store Pickup Pay for Premium Brand Customers Seek Value Shoppers vs. Duration Time by Day Time by Hour Millennial Employee Changing Workforce
- 23. 23 Act Extract AttractImpact Conservative financial projections show that EatRite can increase market share and net profit by implementing recommendations Source: HBR, Nielson, Case Packet, Team Analysis
- 24. 24 Act Extract AttractImpact Possible implementation risks and mitigations Source: Team Analysis
- 25. 25 Act Extract AttractImpact Estimated timeline for strategy implementations Source: Team Analysis
- 26. 26 Act Extract AttractImpact EatRite’s SWOT analysis Source: Team Analysis
- 27. 27 Act Extract AttractImpact Before and after benchmark analysis on EatRite’s competitors (Data on next slide) Source: Forbes, Business Insider
- 28. 28 Act Extract AttractImpact Benchmark analysis on EatRite’s competitors Source: Forbes, Business Insider
- 29. 29 Act Extract AttractImpact Organically growing new customers through effective word of mouth marketing Source: Nielsen
- 30. 30 Act Extract AttractImpact Other loyalty programs for EatRite to benchmark Source: Starbucks, Amazon, National Car Rental, Statista
- 31. 31 Act Extract AttractImpact Customer profile of a millennial Source: Nielsen, Statista, Consumer Profile Index
- 32. 32 Act Extract AttractImpact What leading online competitors do well Source: Whole Foods, Amazon, Expedia
- 33. 33 Act Extract AttractImpact Why in-store pickup is a good idea for EatRite Source: McKinsey
- 34. 34 Act Extract AttractImpact Grocery customers are more than willing to pay for premium store brand products Source: Booz & Company
- 35. 35 Act Extract AttractImpact Industry trends demonstrate opportunity to provide targeted discounts and promotions Source: Booz & Company
- 36. 36 Act Extract AttractImpact The current buying process is not efficient for consumers or sumermarkets Source: The Time Use Institute
- 37. 37 Act Extract AttractImpact Heavier weekend foot traffic means that customers have to wait longer to purchase their products Source: The Time Use Institute
- 38. 38 Act Extract AttractImpact Expedited pickup options can be charged surge pricing within peak hours Source: The Time Use Institute
- 39. 39 Act Extract AttractImpact Employee profile of a millennial Source: Nielsen, Statista, Consumer Profile Index
- 40. 40 Act Extract AttractImpact Rapidly changing workforce composition Source: PEW Research Center Not only are Millennials the majority, they are the fastest growing group in the US workforce. By 2025, they are projected to make up 75% of the workforce. Workforce Composition 1995 Silents Baby Boomers Generation X Millennials Workforce Composition 2015 Silents Baby Boomers Generation X Millennials