Retail Strategy At Spencer’s Harvard Case Solution & Analysis

Option 2:

Spencer’s is using a marketing strategy named “make living affordable” which is better than its previous strategy and would focus on reduced pricing, value-oriented positioning, EPP and proper space allocation. Spenser’s has a very broad product portfolio of different goods including food and lifestyle with a special emphasis on brands and quality, its core strength of the business is its grocery products that are ensured as best in the financial metrics. It has a strong customer base that buys its product and can differentiate its products based on its strategies. The cost reduction strategy would work by decreasing the cost of those products that are not priced appropriately as the customers mentioned in their feedback and would help attract those customers that are category loyal rather than brand loyal.

Weakness

Spencer’s, besides being the number one among all of its competitors, is not able to make significant profit from its operations. Neighborhood retailers are generating their profits by operating in the market and cutting its market share with a greater proportion. Further, the strategy that the company uses is not structured according to the Indian market and buying behavior of its domestic consumers. The rise in its operating costs is another issue that the company should deal with and the higher bargaining powers that the suppliers have with the same products that company deals with, is considered as another weakness.

Retail Strategy At Spencer’s Harvard Case Solution & Analysis

Option 1:

Option one would lead towards more investment relative to market expansion and increasing its consumers, this approach will cause the business to lose money and would stay in its declining phase.

Option 2:

Cutting down costs is not an easy option for the company, if the company fails to cut the right cost, its revenue is more likely to decrease which, in turn, would decrease its market share as well and negatively affect the organization. The market strategy in this term also lowers down as the organization is considering to cut down costs; new consumers would be very low and the organization will stay at the same customer base.

Opportunities

Spencer’s has an opportunity to grow its business due to the economic condition of India. The lack of penetration of organic food retail in tier one and two and three cities and the increasing tendency of the consumer acceptance of modern retail provides a great opportunity for its future growth. A cost reduction strategy can be best utilized to cut down the cost and improve operational efficiency to increase its consumer base by giving them what they really want.

Option 1:

If the company usesan aggressive approach by expanding into different cities, then the company would be able to position itself into the right direction where more chances of growth exist and in this way, more customers would increase the overall profitability of the firm. The Marketing budget would also enhance and so would the image in the market as expansion will create more customer base for the organization.

Option 2:

Decreasing the price of different products and groceries offered by Spencer’s would increase the probability of the probability that more customers buy from the superstore or the hyper store.................

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