Agenda <br />Introduction of our Client<br />Description of Marketing Problem<br />Project Goals<br />Survey and Methodolo...
Our Client: Dominick’s<br /><ul><li>Founded  in 1918
Chicago-based grocery store chain
One of the most successful grocery chains in America’s heartland
Slogans are : “Ingredients for life” and “Always changing for the better”</li></ul>1<br />4<br />
Our Client: Dominick’s<br />
Setting the Background<br />Organic and locally-sourced foods have become a hot topic<br />and explosive sector in the CPG...
Organic food available in 82% of all retail food stores in the U.S. as of 2007
By 2008, nearly half of all organic foods were purchased in conventional supermarkets, club stores, and big-box stores.
Fruits and vegetables account for the largest percentage of organic food sales, 38 percent, and reached nearly $9.5 billio...
Organic fruits and vegetables now represent 11.4% of all U.S. fruit and vegetable sales.</li></ul>1<br />4<br />
Marketing Problem<br />Dominick's has made a commitment to better understand the role of locally sourced and organic produ...
 Lure customers away from other Fresh Produce suppliers?
 Maximize market share?</li></ul>1<br />4<br />
Project Goals<br /><ul><li> Position Dominick’s as a fresh produce leader among the local competition
 Increase sales of organic and/or locally sourced fresh produce
 Identify the best combination of features the store can offer to attract urban and suburban fresh produce shoppers
 Attract customers from local competition</li></ul>1<br />4<br />
The Survey<br />This study fielded from May 7 - 17, 2010.  The study was conducted online among a diverse sample of respon...
The Methodology <br />A total of 100 respondents completed one of the following  self-administered surveys:<br />Survey fo...
 Attribute associations
 Identify state of the marketplace
 Identifies potential white space for client to move to</li></ul>Conjoint Analysis Survey (n=50):<br /><ul><li> Decomposes...
 Identifies strength of bundled attributes
 Identifies consumer trade-offs relative to impact on market share </li></ul>1<br />4<br />
State Of The Marketplace<br />Purely Prudent <br />Dominick's<br />Jewel<br />Whole Foods<br />There for a reason<br />Exc...
Where We Want To Go!<br />Discriminating & Prudent<br />Dominick's<br />Whole Foods<br />Richly Tasteful<br />Jewel<br />T...
Disruption Chart<br />1<br />4<br />
Who did we talk to?<br />Frequent produce shoppers<br />three-fourths (78%) shop at least once a week or more often for pr...
Who did we talk to?<br />Few weigh their produce (31%), but tend to wait for it to be on sale before purchasing (77%)<br /...
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Dominick's

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• According to the surveys of urban and suburban customers, we concluded which features and the feature combination could make Dominick's become a strong player in Fresh Produce.
• Used perceptual mapping to find Dominick's market place and which factors that customers are concerning when purchasing. We found Dominick's should place itself between Trader Joe's and Farmer's Markets.
• Then we utilized SPSS to make conjoint analysis, and we found more information could help us make good feature combination.
• Combined the results of two tools, we made a feature combination that can help Dominick's get bigger market share from 32% to 46%. We provided effective recommendations.

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Dominick's

  1. 1.
  2. 2. Agenda <br />Introduction of our Client<br />Description of Marketing Problem<br />Project Goals<br />Survey and Methodology<br />Recommendations and Action Plan <br />1<br />4<br />
  3. 3. Our Client: Dominick’s<br /><ul><li>Founded in 1918
  4. 4. Chicago-based grocery store chain
  5. 5. One of the most successful grocery chains in America’s heartland
  6. 6. Slogans are : “Ingredients for life” and “Always changing for the better”</li></ul>1<br />4<br />
  7. 7. Our Client: Dominick’s<br />
  8. 8. Setting the Background<br />Organic and locally-sourced foods have become a hot topic<br />and explosive sector in the CPG(Consumer Packaged Goods) industry over the past decade. Despite the recent recession, sales of organic foods continue to rise above the normal growth rate.<br /><ul><li>Sales of organic foods increased to $21.1 billion in 2008
  9. 9. Organic food available in 82% of all retail food stores in the U.S. as of 2007
  10. 10. By 2008, nearly half of all organic foods were purchased in conventional supermarkets, club stores, and big-box stores.
  11. 11. Fruits and vegetables account for the largest percentage of organic food sales, 38 percent, and reached nearly $9.5 billion in sales in 2009, an 11.4 percent increase from 2008 sales. 
  12. 12. Organic fruits and vegetables now represent 11.4% of all U.S. fruit and vegetable sales.</li></ul>1<br />4<br />
  13. 13. Marketing Problem<br />Dominick's has made a commitment to better understand the role of locally sourced and organic produce in large grocery stores, as compared to commercially grown produce. <br />The Objective Is To Understand How Dominick’s Can…<br /><ul><li> Become a stronger player in Fresh Produce?
  14. 14. Lure customers away from other Fresh Produce suppliers?
  15. 15. Maximize market share?</li></ul>1<br />4<br />
  16. 16. Project Goals<br /><ul><li> Position Dominick’s as a fresh produce leader among the local competition
  17. 17. Increase sales of organic and/or locally sourced fresh produce
  18. 18. Identify the best combination of features the store can offer to attract urban and suburban fresh produce shoppers
  19. 19. Attract customers from local competition</li></ul>1<br />4<br />
  20. 20. The Survey<br />This study fielded from May 7 - 17, 2010. The study was conducted online among a diverse sample of respondents. Respondents met the following screening criteria:<br />Females & Males (approximately 80% / 20%)<br />18+ years of age<br />Primary Grocery Shopper<br />Live in Urban or Suburban neighborhood relative to Chicago (50% / 50%)<br />The sample was split across two segments (Urban & Suburban) for evaluation.<br />
  21. 21. The Methodology <br />A total of 100 respondents completed one of the following self-administered surveys:<br />Survey for Perceptual Mapping (n=50):<br /><ul><li> Brand perceptions
  22. 22. Attribute associations
  23. 23. Identify state of the marketplace
  24. 24. Identifies potential white space for client to move to</li></ul>Conjoint Analysis Survey (n=50):<br /><ul><li> Decomposes importance of features in consumer decision-making process
  25. 25. Identifies strength of bundled attributes
  26. 26. Identifies consumer trade-offs relative to impact on market share </li></ul>1<br />4<br />
  27. 27. State Of The Marketplace<br />Purely Prudent <br />Dominick's<br />Jewel<br />Whole Foods<br />There for a reason<br />Excellent Value<br />Support Local Bus/Farmer<br />Organic Produce<br />Limited Product Availability<br />Low Prices<br />Trusted Food Source<br />Preference<br />Very Fresh Produce<br />Fast Food Grocer<br />Tastefully Satisfied<br />Not so fresh<br />High Prices<br />Taking a chance<br />Location<br />Wal-Mart<br />Commercial production<br />Trader Joe’s<br />Costco<br />One Stop Shopping<br />Aldi<br />Comes from anywhere<br />Farmer’s Markets<br />Forthe Convenience<br />
  28. 28. Where We Want To Go!<br />Discriminating & Prudent<br />Dominick's<br />Whole Foods<br />Richly Tasteful<br />Jewel<br />There for a reason<br />Excellent Value<br />Support Local Bus/Farmer<br />Organic Produce<br />Limited Product Availability<br />Low Prices<br />Trusted Food Source<br />Preference<br />Very Fresh Produce<br />Fast Food Grocer<br />Tastefully Satisfied<br />Not so fresh<br />High Prices<br />Taking a chance<br />Location<br />Wal-Mart<br />Trader Joe’s<br />Commercial production<br />Farmer’s Markets<br />Costco<br />One Stop Shopping<br />Aldi’s<br />Comes from anywhere<br />Not without a coupon<br />Earthly Delights<br />For the Convenience<br />
  29. 29. Disruption Chart<br />1<br />4<br />
  30. 30. Who did we talk to?<br />Frequent produce shoppers<br />three-fourths (78%) shop at least once a week or more often for produce<br />1<br />4<br />
  31. 31. Who did we talk to?<br />Few weigh their produce (31%), but tend to wait for it to be on sale before purchasing (77%)<br />Do you weigh your own produce?<br />Do you look for the items on sale?<br />1<br />4<br />
  32. 32. Who did we talk to?<br /> Majority do not have children (65%) and are 1-2 person households (73%)<br />Including yourself and any children, how many people currently live in your household? <br />1<br />4<br />
  33. 33. Where Should We Focus?<br />According to our perceptual mapping exercise respondents deemed the following attributes to be of primary importance when selecting a fresh produce vendor:<br /><ul><li> Supports local farmers and businesses
  34. 34. Organic produce
  35. 35. Trusted food source
  36. 36. Very fresh produce
  37. 37. High prices</li></ul>Note: “High Prices” may appear to be an anomaly, but in such a price-driven market, consumers are not adverse to paying more for produce that meets the above criteria.<br />1<br />4<br />
  38. 38. Our Recommendations for Dominick’s<br />In order to reposition Dominick’s as a leader in the organic and/or locally sourced produce market, we recommend the following actions: <br />Increase amount of organic/ locally-sourced produce<br />Remerchandise produce section<br />Educate staff and customers<br />Introduce bi-weekly farmer’s market<br />1<br />4<br />
  39. 39. Purely Prudent <br />Support Local Bus/Farmer<br />Dominick's<br />Excellent Value<br />Jewel<br />Whole Foods<br />There for a reason<br />Organic Produce<br />Trusted Food Source<br />Low Prices<br />Limited Product Availability<br />Very Fresh Produce<br />Fast Food Grocer<br />Preference<br />Tastefully Satisfied<br />Not so fresh<br />High Prices<br />Taking a chance<br />Location<br />Wal-Mart<br />Commercial production<br />Trader Joe’s<br />Costco<br />Aldi<br />Comes from anywhere<br />Farmer’s Markets<br />One Stop Shopping<br />Forthe Convenience<br />1. Increase Amount of Organic/ Locally Sourced Produce<br />
  40. 40. Where We Want To Go!<br />Discriminating & Prudent<br />Dominick's<br />Whole Foods<br />Richly Tasteful<br />Jewel<br />There for a reason<br />Excellent Value<br />Support Local Bus/Farmer<br />Organic Produce<br />Limited Product Availability<br />Low Prices<br />Trusted Food Source<br />Preference<br />Very Fresh Produce<br />Fast Food Grocer<br />Tastefully Satisfied<br />Not so fresh<br />High Prices<br />Taking a chance<br />Location<br />Wal-Mart<br />Trader Joe’s<br />Commercial production<br />Farmer’s Markets<br />Costco<br />One Stop Shopping<br />Aldi<br />Comes from anywhere<br />Not without a coupon<br />Earthly Delights<br />For the Convenience<br />
  41. 41. Urban consumers are willing to pay more for organic/ locally-sourced produce!<br />1<br />Charge me more!<br />4<br />
  42. 42. 2. Educate customers and staff<br />40% of Consumers are extremely/very interested in knowing the origins of their food<br />1<br />4<br />
  43. 43. Educate employees – knowledge is power!<br />In an informal survey conducted among employees in the produce section at 11 local Jewel and Dominick’s stores, 100% of employees claimed they wish they knew more about the origins of the produce and the differences between organic and conventionally grown produce. <br /><ul><li> 30% of employees knew the difference between “local” and “organic” produce
  44. 44. However, approximately 70% believed that “local” = “organic”</li></ul>1<br />4<br />
  45. 45. Urban consumers looking for more knowledgeable employees at grocer<br />1<br />4<br />
  46. 46. Educate employees – knowledge is power!<br />1<br />4<br />
  47. 47. 3. Introduce bi-weekly farmers market<br />Farmers Markets are the most preferred location for purchasing fresh produce.<br />Convenient Shopping<br />Midwest Local Grocery<br />Idealgrocer<br />Jewel<br />Dominick’s<br />Preference<br />Low Prices, Limited Selection<br />Premium Price & Products<br />Whole Foods<br />Wal-Mart<br />Low Cost Leaders<br />Costco<br />Trader Joe’s<br />Aldi<br />Farmer’s Market<br />Limited Availability<br />
  48. 48. Farmers Market style grocer scores high in product utility<br />1<br />4<br />
  49. 49. The prevalence of farmers markets in the Chicago-land area continues to grow…<br />There are 43 CSA’s (Community Supported Agriculture) in the Chicago-land area alone.<br />There are 40 different Farmer’s Markets in the City of Chicago. You can find one open 7 days a week in the various neighborhoods.<br />There are approximately 10-12 markets that run all year long! The Green City Market in Lincoln Park being the largest.<br />1<br />4<br />
  50. 50. So how can make this actionable?<br />We recommend leveraging the CRM system behind Dominick’s Fresh Values Card to promote the introduction of the store’s bi-weekly farmers market event.<br /><ul><li>Fresh Values members supply contact information, including email addresses, while the program tracks their purchases
  51. 51. Consumers are most receptive to email communications, but almost half report that they still refer to store fliers.</li></ul>Target heavy produce purchasers and heavy organic purchasers to receive email communications and fliers about events. Use these communications to make shoppers aware of changes to produce section and create “buzz” about farmers market events.<br />1<br />4<br />
  52. 52. Current Market Share<br />1<br />4<br />
  53. 53. Optimal Market Share<br />1<br />4<br />
  54. 54. How did we reposition Dominick’s against most important features?<br />Increased amt. of local produce and showcase goods in farmer’s market<br /> Increased amt. of organic produce<br /> Farmer’s market helps to showcase fresh produce and form relationships with local farmers and Dominick’s staff..<br /> All of the above!<br />Consumers are willing to pay more for fresh, quality, organic produce.<br />Supports local farmers and businesses<br />Organic produce<br />Trusted food source<br />Very fresh produce<br />High prices<br />1<br />4<br />

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