Loblaw is committed to providing Canadians with a wide, growing and successful range of products and services to meet the everyday household demands of Canadian consumers. Loblaw is known for the quality, innovation and value of its food offering. It offers Canada’s strongest control (private) label program, including the unique President’s Choice, no name and Joe Fresh Style brands. In addition, the Company makes available to consumers President’s Choice Financial services and offers the PC points loyalty program..
Competing against Wal-Mart is a challenge that no company want to face.
Loblaw offers Canada’s strongest private label program, including the unique President’s Choice, no name and Joe Fresh Style brands. In addition, the Company makes available to consumers President’s Choice Financial services and offers the PC points loyalty program.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
This presentation describes the journey of Louis Vuitton in Japan. It highlights the strategies adopted by Louis Vuitton to beat the competition in the fiercely competitive luxury market of Japan
Unilever in India: Hindustan Lever's Project Shakti - Marketing FMCG to the R...Anurag Kumar
Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Case Analysis |Altius Golf and the Fighter Brand|Anahit Babayan
Questions covered.
1. If Altius implements the Elevate strategy what are the risks to the brand and how can they be managed?
2. What sales result would you expect for each item in the line if Elevate is introduced?
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
This presentation describes the journey of Louis Vuitton in Japan. It highlights the strategies adopted by Louis Vuitton to beat the competition in the fiercely competitive luxury market of Japan
Unilever in India: Hindustan Lever's Project Shakti - Marketing FMCG to the R...Anurag Kumar
Project Shakti is a rural distribution initiative in small villages. The project benefits HUL by enhancing its direct rural reach and at the same time creates livelihood opportunities for underprivileged rural women. Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities to over 65,000 Shakti Entrepreneurs who distribute our productions in more than 165,000 villages and reach over four million rural households.
As per Unilever Sustainable Living Plan, Unilever will increase the number of Shakti entrepreneurs that it recruits, trains and employs from 45,000 in 2010 to 75,000 in 2015 globally.
MANA 695O - Corporate Governance - Loblaw Casemarhenbun
This case was presented in the summer of 2010 for the Corporate Governance course at JMSB. Presented a case on Loblaw company to recommend to the Concordia University Pension Fund to either invest or not invest in Loblaw.
Creating Omnichannel Experiences with Loblaw Digital - eCommerce Toronto MeetupDemac Media
For May's eCommerce Toronto Meetup we were joined by the team at Loblaw Digital to explore how they create omnichannel experiences through their eCommerce properties.
Business analysis and strategy recommendation of jucCharlie Chen
In this case study and strategy recommendation document the author use the knowledge and methodologies learned in the managerial marketing course of (EMBA) to analyze the position dilemma that Just Us! Cafes (JUC) is facing and help the management team of the organization addressing some of its burning issues. By leveraging analytical tools and framework learnt from the course the author able to produce a competitive, sustainable strategy for the business.
one of the most valuable companies in the world. its brand equity about 79.2 billion dollars. This valuation includes the brand value, the factories, its assets around the world and its operations cost and profit of coca cola.
Running Head: SWOT Analysis 1
SWOT Analysis 3
SWOT Analysis
Bobby Holman
Columbia Southern University
December 21, 2015
Company of choice: Red Bull
Introduction
Also referred to as SWOT matrix, SWOT analysis is an organized method of planning that is used to analyze and gauge the weaknesses, strengths, threats and opportunities that are involved in a business venture or a project (Quincy, 2013). It is a basic framework that is used to generate strategic alternatives from an analysis of a given situation. This analysis often appears in business marketing plans and is applicable in either business unit levels or in corporate levels (Blake, 2015). It can be done for a product, a person, an industry, or a particular place. The Acronym SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Often deploying this framework helps a firm to become fully aware of its position in the competitive market and also aides in both decision making and strategic planning. As a company, Red Bull has over the recent years encountered various challenges including competitive rivalry which have raised concerns about the overall wellbeing of the company and its stand in the marketplace. This paper will be divided into four sections and will attempt to discuss the strengths, weaknesses, threats and opportunities of the company through the application of the SWOT analysis.
Section One: The Strengths of Red Bull
The strengths of Red Bull include its marketing strategy, its geographical presence, category leadership, market share, and alliances.
Business Marketing Strategy
Red Bull has deployed very tactful and beneficial marketing and promotional activities which have helped the company to build a strong foundation and a name for itself. Activities such as extreme sports sponsorships have helped to increase customer awareness of the product and also grasp and maintain the loyalty of customers to the brand. The brand’s marketing strategy has been magnificently implemented to bring a strong identity to the brand which brings with it unwavering customer loyalty.
Geographical Presence
Red Bull’s broad geographical presence has been so strong and is a major contributing factor to its positive and long-term growth. This is unlike most other companies in the market which often stagnate after reaching their maturity stage. The company’s quick global expansion has worked to earn it an undisputed position among the world’s leading energy drinks, and despite facing growing competition, Red Bull is still aggressive in further expanding its customer base and market share.
Category Leadership
Another one of Red Bull’s astounding strengths has been in its ability to be consistent in establishing a strong brand global image which has mad.
IntroductionTeam 9 Consulting will be working with Coca-Cola t.docxnormanibarber20063
Introduction
Team 9 Consulting will be working with Coca-Cola to develop an analysis of their marketing strategies. We’ll discuss various facets of the industry and the company and provide a recommendation for their marketing department.
The specific product line that we will be focusing on in our marketing plan is on the Coca-Cola brand drink itself, or Classic Coke. Coca-Cola does have many varieties of Coke, such as Coca-Cola Life, Diet Coke, and Coke Zero that will be touched on throughout this report as well.
Market Profile
Coca-Cola (NYSE: KO) is the world's largest beverage company with over 500 brands and 3,900 beverage choices (Coca-Cola, 2017). They aim to continue their growth and “refresh the world” by starting within and making the company a better, more sustainable one. Their main competitors in the beverage industry are Pepsi and Dr Pepper Snapple Inc. (Reference.com, 2017)
Coca-Cola has strong values that guide their business philosophy: Coke supports ideas such as family, togetherness, happiness, and community. This is strongly reflected in their company vision statements.
Mission Statement (Coca-Cola, 2017):
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
· To refresh the world...
· To inspire moments of optimism and happiness...
· To create value and make a difference.
Coca-Cola mainly manufactures and sells Carbonated Soft Drinks (CSDs). As of December 2016 Coca-Cola led the CSD sector with a market share of 40.7% which resulted in approximate sales of $18,630.8 million (Mintel, 2017).
The CSD market is a multi-billion dollar industry seeing approximately $36 billion dollars in revenues each year (Stivaros, 2016). The industry has been in decline in recent years, with CSD sales forecasted to continue falling. The graphic below (Mintel, 2017) illustrates this decline.
Growth Strategy
Coca-Cola has two main growth strategies: strategic initiatives and product development.
Strategic initiatives:
James Quincey, President and COO of Coca Cola, has spoken recently about Coca-Cola’s growth strategy (Bailey, 2016), which is based on the following five initiatives to restore momentum and transform the business: focus on productivity, streamline organization, make disciplined investments, adapt a segmented approach to driving revenue, and focus on its core business model.
Coca-Cola’s business approach of segmenting its operations, such as outsourcing all of their bottling to partners (Coca-Cola, 2017), helps them keep costs low and increase their overall profits.
Product Development:
During a conference call during their 3rd Quarter in 2016 (Bailey, 2016) their Chief Operating Officer noted the following strategies:
· Expanding their sugar free range of sodas
· Working on reformulating existing products to contain less sugar
· Packing their soda in smaller containers
· Expanding their range.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
1. “Loblaw Companies Limited: Preparing
for Wal-Mart Supercenter”
Kipenzi Herron and Emilsen Holguin
Bus 511 Business Strategy and Policy
Dr. Adolfo Gorriaran
January 2010
2. Agenda
Loblaw Mission and Vision Statements
Loblaw History
Corporate Strategy
Industry Overview
SWOT analysis
Wal-Mart Market Entry
February 2007: 100-day review
Summary
Discussion Questions
References
2
3. Loblaw Mission and Vision
Loblaw’s mission is to be Canada’s best
food, health and home retailer by exceeding
customer expectations through innovative
products at great prices.
Loblaw is committed to a strategy
developed under three core themes:
Simplify, Innovate and Grow.
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e
3
4. Loblaw History
Loblaw was acquired by George Weston Ltd.
Loblaw was built as a food empire through the purchase of
grocery manufacturers, retailers and wholesalers
Credited with inventing premium private brands in North
America
In 2005, Loblaws was the largest supermarket chain in
Canada, with an estimated market share of 34.9%
In 2008, Loblaw has 609 corporate and 427 franchised stores
in every province and territory in Canada (21 banners).
Loblaw’s President’s Choice and name control brands are the
#1 consumer packaged good brands by sales in Canada.
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e
4
5. Corporate Strategy
Creation of private labels
Consolidated of distribution centers
Closure of unprofitable stores
Maximized the use of Loblaw’s fleet
Uniform pricing strategy
Standardized store design
Renegotiated union contracts
Introduction of general offerings
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e
5
6. Industry Overview
Canadian supermarket industry was valued at $73
billion in 2006.
The grocery business was less fragmented, more
competitive, multicultural and dominated by national
companies.
Canada has a well-developed discount grocery sector
with very high standards.
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e
6
7. Industry Overview (continue)
The Province of Ontario is a key market in Canada and the
biggest market for Loblaw. Ontario’s sales declined 4.3% in
2006.
Although sales in 2006 grew 2.49%, the growth was slower
than the traditional year-to-year increase of around 4.8%.
New stores are increasing the average size of supermarkets in
Canada.
National and regional chains are getting a wider range of
store innovations and an increased spotlight on private labels.
2006 Annual Report, http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_e
7
8. SWOT: Loblaw’s Strengths
Strong brand name
Position of market share – sales number continue growing
7000 Private-label products (No Name and President’s
choice)
President’s Organic product
President’s Choice Bank and its loyalty program
Large amount of fixed assets versus low amount of debt
Economy of scale and large knowledge and experience in
Canadian market
Wide geographic coverage (all Canadian provinces)
Social responsibility initiatives, close to the community.
8
9. SWOT: Loblaw’s Weaknesses
Operating margin dropped to 1% in 2006.
Return on average total assess of only 2.30% in 2006.
Stores are underperforming
Complicated corporate structure and weak management
Plagued with problems in its distribution systems: broken buyer-
supplier relationships, delayed delivering goods, out of stocks
Loblaw is not doing fresh food as well as the others are right now
Customers accustomed to prices driven by regular sale promotion
Customers find difficult to navigate the superstores
Lack of experience managing general merchandise inventory
21 banners
9
10. SWOT: Loblaw’s Opportunities
New management team and new business plan
Commitment to strategy: Simplify, Innovate, Grow
Growing its discount segment, becoming the low-price leader
Openings to exploit emerging new technologies
Proven product innovation capabilities
Large on financial resources to grow the business and pursue
promising initiatives
Four-year contract with unions and elimination of 20% of its
administrative workforce
Lack of customer awareness about general merchandise deep
discount pricing strategy
Joe Fresh Style line of clothing
10
11. SWOT: Loblaw’s Threats
Goodwill is continuously dropped in value
Market/book ratio has been decreasing since 2002
Intense competition
Major Union problems
Grocery sales are growing slower than others year’s average
Canadian market is attracting foreign investors
Wal-Mart experience in global market has continually pushed
its general merchandise dominance forward while developing
its food business.
11
12. SWOT: Conclusions
Although the Loblaw faced significant hurdles, the company has
an attractive set of strength and resources to restore its
profitability and growth.
We have identified as alarming weak, its problems with
distribution systems and tolerated poor management. A retailed
store’s distribution system and management are key success
factors.
The major threat is that competitors are growing stronger while
Loblaw’s consumer satisfaction is decreasing due to the
company poor performance.
Loblaw’s best opportunity is to capitalize its experience on food
market. Loblaw’s commitments to simplify, innovate, and grow
under the application of a new business plan is the best
opportunity that the company has to be a front-runner again.
13. Wal-Mart market entry
Wal-Mart poses a serious threat to other grocers
Economies of scale and scope
Everyday low pricing
Supplier influence
State-of –art distribution system
Wal-Mart built a super-centers and rapid
expansion forthcoming.
In 2007 groceries accounted for 31% of total sales
13
14. February 2007: 100-day review
“We are not delivering the right value for money and we are not getting the credit with the
customer for investments that we do make,” said chairman Galen Weston Jr.
Proposed actions by executing and analysts:
Clear out excess inventory and improve stocking
Strong offering of private labels, de-emphasize national brands and eliminate
redundant sizes
Reduce space allocated to general merchandise. Devote more are to food or reduce
the size of stores
Lower prices for selected items to retain its customers
Improved differentiation between the smaller conventional Loblaw supermarkets and
the larger discount outlets
Reconstruction of the famous Maple leaf Gardens in downtown Toronto
14
15. Summary
Loblaw has begun to reorganize its
business strategy however it is evident
that change is imminent.
15
16. Discussion Questions
What are Loblaw’s challenges?
What issues should Loblaw’s executives be most
concerned about? Why?
What specific actions should Loblaw take to
improve its competitiveness against Wal-Mart?
16
17. References
• Canadian Council of Grocery Distributors (CCGD)
http://www.ccgd.ca/home/en/index.html
• Loblaw Companies Limited, http://www.loblaw.com/
• 2006 Loblaw Annual Report,
http://www.loblaw.com/en/lcl_ar06e/downloads/lcl_ar2006_eng.pdf
• Thompson, A. A. Jr., Strickland, A. J. III, & Gamble, J. E.
(2009). Crafting & Executing Strategy: The Quest for
Competitive Advantage: Concepts and Cases, Sixteenth
Edition. New York, N.Y.: McGraw-Hill/Irwin
17
Editor's Notes
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada’s largest food distributor and a leading provider of drugstore, general merchandise and financial products and services. Over 13 million of Canadians shop with Loblaw every week.
The first part of this presentation includes an overview of Loblaw Companies. We will outlines its milestones and identify its corporate strategy. During the second part, we will analyze the Loblaw situation at the end of 2006 and introduce its main competitor: Wal-Mart. We will end the presentation with a summary of February 2007: 100-day review that will help us to open a discussion.
To reach their goal, they expect to become a centralized, marketing-led organization with an un relenting focus on customers, products and stores. They plan to continue leveraging their scale and developing their capacity for consistent execution to drive profitable growth.
Thompson, Strickland, & Gamble (2009) stated George Weston Ltd was a company that specialized in bakery goods. George Weston Ltd gained majority interest in Chicago based food distributor named Loblaws Groceterias and incorporated the company as Loblaw Companies Limited. A large number of grocery manufactures, retailers and wholesaler across Canada and the Midwestern US were acquired. 2005 Loblaws Corporate Stores by Banner Banner Number of stores Maxi 97 Loblaws 95 The Real Canadian Superstore 88 Provigo 81 Extra Foods 78 Cash & Carry & Presto 57 Zehrs Markets 52 Atlantic Superstore 51 The Real Canadian Wholesale Club 37 Maxi & Cie 15 Dominion 14 Other corporate banners 5
Loblaw’s most successful strategy has been its private labels. Loblaw’s marketing team was credited by the invention of private brands. It’s President Choice is leader in the grocery market. Loblaw has innovated in the clothing category with is named Joe Fresh Style, which is a line of designer fashions that has been very well accepted by its customers. However, the effort to consolidation of distribution centers had backfired due to lack of poor planning. Loblaw is still challenging by problems in its distribution systems.
Thompson, Strickland, & Gamble (2009) stated: The Canadian market is too sophisticated and too multicultural with well-developed discount grocery sector with high standards for produce, meat, deli, bakery and seafood. Expectations of grocery stores in Canada are higher compared to the expectation in United States. “Fresh” are the largest buzzword in Canada grocery retailer. - Market Share in food sales in Canada in 2005 Retailer Market Share 1. CO-OP 3.4% 2. Costco 5.2 3. Loblaw 34.9 4. Metro 13.1 5. Overwaitea 3.5 6. Safeway 7.1 7. Sobeys 16.0 8. Wal-mart 2.6 9. Others 14.3
New stores are increasing the average size of supermarkets in Canada, which is about 26,000 square feet. Loblaw will lead the push with projected superstores in the 140,000-square-foot range, according to the Canadian Council of Grocery Distributors. Canada has been not as attractive as a first look, mainly because the U.S. markets have been more attractive and easier to get into, with bigger volumes. However, the global dynamic is changing and now that the US is becoming a little bit on the saturated side, Canada is going to warrant a second look. In response to Wal-Mart’s anticipated diversification into the food category and changes occurring at Loblaw, competitors are focusing on food.
Loblaw’s brand is highly recognized among its competitors in the industry and among it suppliers.
21 banners means higher marketing expenses and a challenge to build a unified corporate image. No all its customers known that they are buying in a “Loblaw” store. Many of the stores banners do not include the company name “Loblaw,” for instance, Fortinos, Freshmart, Independent supermarket, Extrafoods, Nofrills, Cash and Carry, etc.
Wal-Mart expertise in managing inventories and distribution centers and suppliers, lower labor costs and refine logistic systems is one of the most significant threats that Loblaw faces.
The company needs to strengthen immediately its distribution systems and its managerial model: building strong buyer-supplier relationship and improving technology and logistics. Loblaw needs to refocus on “fresh food” Loblaw needs to ensure that its private labels are always available and that general merchandise is restocked timely. Improve its marketing campaign to educate customers on its new deep discount pricing strategy Loblaw need to redesign the layout of its stores, in order to make them easier to navigate for customers.
Thompson, Strickland, & Gamble (2009) described that: A typical distribution center was approximately 1 million square feet (the size of 23 American football fields) The accuracy of shipments was more than 99 percent. Stores are located no more than a one-day’s drive from its distribution center. Analysts predicted that, as a result of the Wal-Mart’s pricing strategy, some of Loblaw stores can lose between 5 to 10 percent weekly sales.
Goals to achieve in a timeframe of three to five years: Increase sales by 5 percent and increase earnings by 10 percent Cutting prices, offering more products and improving customer service.
Loblaw’s executive team is working through different options: Clear excess inventory Refresh stale inventory Negotiation of unionized multi-year contract Go back to the basics - reallocate stores for more food Reduce store size Narrow assortment of general merchandise Lower prices