Identify a marketing strategy through launch of a new mobile app to promote Groman - a healthy food grocery store

1. Groman’s Foods
Introducing Grocer-Ease, the grocery list you don’t have to make.
Sara Gardephe
Rahul Gupta
Jenika G. Shannon

2. • Groman’s Food Inc., a high quality organic grocery food
store, has a strong brand equity for its healthy selection
of products. It currently operates 88 stores in six major
north-eastern states in the US.
• Groman’s is experiencing stagnating growth, explained
by its reliance on word-of-mouth marketing and an
aging consumer base.
• It is also facing stiff competition from other healthy
grocery food stores, restaurants and on-demand food
services.
• At present, women aged 35-55 contribute about 61% of
Groman’s profit across all locations.
• With only 3% of the business coming from the Young
Adults segment, it presents a huge opportunity to be
captured.
3.18%
12.74%
61.15%
22.93%
PROFIT CONTRIBUTION
Young Adults
(Age 18-34)
Men
(Age 35-55)
Women
(Age 35-55)
Seniors
(Age 55+)
Groman’s is facing sluggish growth in the increasingly
competitive grocery healthy foods market.

3. • Increase total market share through
improved customer segmentation and
refined value proposition.
• Capture interest and loyalty of
younger consumer base.
• Expand footprint and increase
brand awareness by opening new
stores in three metropolitan areas
outside the current geographical
presence.
Steps to Success

4. Groman’s New Target Consumer
Store Experience
Customer Service ∙ Engaging ∙ Personalized
Shopping Experience
Perceived Price ∙ Simplicity ∙ Time
Brand Values
Community ∙ Environment ∙ Health
Consumer Needs

5. • Millennials are often perceived as self-
centered. In actuality, they focus on the
betterment of themselves in order to
give back to the greater good.
• They need to feel special, and crave a
sense of belonging.
• With so many options, and little brand
loyalty, millennials tend to be highly
price- and time-sensitive.
Our proposed go-to-market strategy will
position Groman’s with a competitive
advantage in five areas key to attracting
millennials.
How to Reach Target Consumer
Customized Meal
Plans
Engagement
Perceived Price
Time
Healthy Lifestyle

6. Marketing Strategy
• Leverage brand equity in healthy foods to enhance competitive advantage.
• Engage target segment by providing weekly suggested lists of grocery items, meal plans,
and recipes that align with their health objectives and fitness plans.
• Promotional activities to build a community experience for the shoppers: Grocery runs,
Scavenger hunts, Healthy Fridays, Cooking Competitions (refer to Appendix).
• Pilot Groman’s Grocer-Ease (refer to slide 8) at select stores (25% of the existing 88 stores) to
fill remaining need gaps of target segment.
Store Expansion
• Open new stores in locations proximal to current stores to scale up presence and outreach.
Recommendations

7. App Overview
The Groman’s Foods mobile app is designed to be simple,
informative, convenient, and time-saving. The main features
include:
• Store map
• Loyalty program integration to track consumer behavior
• Personalized product and coupon suggestions (based on
shopping patterns)
• Groman’s Grocer-Ease
Welcome, Jennifer!
Better groceries at better prices.
You have SAVED $54.97 this year!
We thought you might enjoy our
New Vanilla AlmondMilk! It’s got zero
calories and zero artificial sweeteners -
but it’s still got all that yummy flavor!
SAVE $1.50
@$6.99, just for you.
Try it for yourself.
It’s waiting patiently
.
Groman’s has got the goods!
Add to PlanMain Menu

8. Day 3
Meal 1:
Egg white omelet
Fruit + Oatmeal
Meal 2:
Baked chicken breast
Steamed broccoli
White rice
Meal 3:
Oven-roasted turkey
Sweet potato hash
Grilled asparagus
Day 4
Bulking Meal Plan
CheckoutChoose Plan
Pick up the groceries for your Bulking
Meal Plan before 6:00 pm on
Thursday, November 17th.
Just present this QR code to any
Groman’s cashier in Rochester, NY.
Groman’s no-shop groceries:
fresher, faster, for you.
Grocer-Ease Workflow
Groman’s Grocer-Ease will revolutionize the way health-
conscious millennials buy food – providing them with
personalized and convenient nutritional guidance. With the
app, shoppers can:
• Add a weekly meal plan to bag based on fitness goals
(i.e., bulking, shredding, cutting, losing).
• Add non-meal plan items to bag.
• Pay within the app.
• Save time and eliminate need to wander aisles by
utilizing EZ pickup ($6 service fee).

9. Launch the app;
Offer coupons (at
store checkouts
& public places)
to achieve the
25K+ download
target
Roll-out the
predictive
analytics engine
to push new,
higher-margin
products
Marketing Strategy Timeline
Identify potential
partners
(dieticians,
fitness groups)
Offer bundled
meal plans
through in-store
promotions
(Healthy Fridays)
Promote the new
app in-store and
online (Groman’s
website, social
media)
(4-8 weeks)
(4-6 weeks prior
to app launch)
(Starting 2
weeks prior to
app launch)
(6-12 months
post launch)

10. Estimated benefit of the new marketing strategy is ~$30M
Additional Staff $1,445,400
App Development
(one-time)
$25,000
Wellness Partnerships $25,000
Miscellaneous Expenses
(safety budget)
$100,000
Total Expenses $1,595,400
* Additional staff would be required for initial in-
store promotions and packaging/pickup services
* Salary for additional staff is calculated as:
Man-hours per day: 20
Hourly wage: $9 (min. wage)
# Stores: 22 (pilot in 25% of 88 stores)
$6 $25
$120
$45
$25
$38
$120
$45
YOUNG ADULTS
(AGE 18-34)
MEN
(AGE 35-55)
WOMEN
(AGE 35-55)
SENIORS
(AGE 55+)
Projected Impact on Profits
Profit (current mkt share) Projected Profit (new mkt share)
* All numbers are in Millions ($)
* New marketing strategy will help
capture more market share from
Young Adults and Men aged 35-55;
resulting in $31.25M add. profit
Estimated Costs

11. Shortlisted 9 locations based on geographical proximity. Assessed
population demographics that best suit Groman’s target consumer goals
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Thousands
Market Size by Target Segments, 2015
Young Adults
(Age 18-34)
Men
(Age 35-55)
Women
(Age 35-55)
Seniors
(Age 55+)
* 3 Locations selected based on population
demographics and growth rates
* Population # derived from growth rates in Appendix
2 of the case applied on 2010 US Census figures.
Current Footprint (88 Stores)
NY (43)
PA (18), VA (9)
NJ (8), MD (7), MA (3)
12.66%
9.44% 6.29%
2.04%
5.23%
2.87%
-0.09%
-0.14%
-0.79%

12. Wrap-up
Groman’s can capitalize on a growth opportunity by mobilizing traditional marketing tactics,
launching an app, and expanding to strategic locations. To reach its goals, Groman’s must:
Leverage healthy brand image
Engage millennials
Increase reach

13. Appendix - Store Location analysis
Metropolitan Area 2015
Estimate
2010
Census
Change Current Market Share Improved Market Share
Young
Adults
(0.25%)
Men
(0.5%)
Women
(1%)
Seniors
(1.5%)
Young
Adults
(1%)
Men
(0.75%)
Women
(1%)
Senior
s
(1.5%)
Raleigh, NC 1,273,568 1,130,490 +12.66%
761 958 1,998 3,657 3,045 1,436 1,998 3,657
Charlotte, NC 2,426,363 2,217,012 +9.44%
1,126 1,412 2,959 5,946 4,503 2,118 2,959 5,946
Columbus, OH 2,021,632 1,901,974 +6.29%
1,223 1,384 2,812 6,324 4,891 2,076 2,812 6,324
Cincinnati, OH-KY-
IN
2,157,719 2,114,580 +2.04%
1,216 1,531 3,153 7,851 4,866 2,296 3,153 7,851
Richmond, VA 1,271,334 1,208,101 +5.23%
759 936 1,994 4,874 3,036 1,403 1,994 4,874
Virginia Beach-
Norfolk-Newport
News, VA-NC
1,724,876 1,676,822 +2.87%
1,116 1,156 2,467 5,845 4,465 1,734 2,467 5,845
Hartford-West
Hartford-East
Hartford, CT
1,211,324 1,212,381 -0.09%
647 871 1,818 4,900 2,589 1,306 1,818 4,900
Pittsburgh, PA 2,353,045 2,356,285 -0.14%
1,219 1,621 3,363 10,961 4,875 2,431 3,363 10,961
Cleveland-Elyria, OH2,060,810 2,077,240 -0.79%
1,032 1,426 3,027 8,737 4,129 2,139 3,027 8,737

14. Appendix – Projected profit
Segment
Sales
(in $B)
Avg. Profit
Margin
Old Mrkt
Share
New Mkt
Share
Revenue
Profit (current
mkt share)
Profit
Contribution
Projected
Revenue (new
mkt share)
Projected Profit
(new mkt share)
Young Adults
(Age 18-34)
100 2.50% 0.25% 1.00% $250,000,000 $6,250,000 3.18% $1,000,000,000 $25,000,000
Men
(Age 35-55)
250 2.00% 0.50% 0.75% $1,250,000,000 $25,000,000 12.74% $ 1,875,000,000 $37,500,000
Women
(Age 35-55)
400 3.00% 1.00% 1.00% $4,000,000,000 $120,000,000 61.15% $ 4,000,000,000 $120,000,000
Seniors
(Age 55+)
150 2.00% 1.50% 1.50% $2,250,000,000 $45,000,000 22.93% $ 2,250,000,000 $45,000,000
$7,750,000,000 $196,250,000 $9,125,000,000 $227,500,000