Superior Supermarket Everyday Low Pricing Harvard Case Solution & Analysis

Superior Supermarket Everyday Low Pricing Case Solution

Problem

A meeting was scheduled for the first quarter of 2003 from the annual four quarters of Superior Supermarkets. It was faceted towards the decline in its sales during previous quarter, which was the fourth quarter of 2002. The fourth quarter is usually anticipated as the intensive sales period due to Thanksgiving and Christmas. However, the profit & loss statement of the superstores depicted contra verse effects.

The purpose of the meeting was to evaluate the progress of the district that, whether it is in accordance with the planned goals or not. Moreover, it has been anticipated that Superior Supermarket will lose its shares by the next year if it does not change its strategies. The reason for the decline in the sales was discussed that has also raised previously, but was not taken into consideration before. The major reason for decline in sales was the pricing strategy of Superior Superstore.

 Solution

Superior Supermarket has appeared to the problem that it had a decline in its sales. Moreover, it can lose more of its customers. It is also concerned about decline in its market share. The meeting held in the first quarter of 2003 has evaluated the exact reason for the decrease in its customers. Hence, it was concluded that the pricing strategy of the supermarket is the main reason for decline in the sales. Superior Supermarket can get rid of the situation with many ways.

The first way of resolving the problem is that the supermarket can re-consider the prices of its whole products. With the decrease in the prices, Superior Supermarket will get the cost benefit, the customers will get back to high-quality products of Superior Supermarket. Similarly, it can either reduce the prices of the items that are most sold items in the stores. A partially lower price will lead the supermarket to maintain its profitability. Another solution for the problem was also identified. The Superior Supermarket can end up with one of its stores among three

Brief History

Hall Consolidation acquired Chain of Superior Supermarket in 1975. Hall Consolidation is a private wholesale and retail distributor of food. Hall Consolidation itself, however, was established in 1959. Its initial purpose involved wholesale operations and distribution of food from different companies. The company purchased its first purchase store in 1970. Moreover, it enhanced its performance through the acquisition of Superior Supermarket in 1975. Furthermore, Hall Consolidation has expanded its business of food and retail products distribution to 150 Supermarkets units that were operating through three major supermarkets. Nonetheless, Hall Consolidation’s sales reached $2.3 billion in 2002.

In addition, Superior Supermarket is the smallest chain of Superstores among major three chains of supermarkets. It has carried out with the sales of $192.2 million by 2002. Superior Supermarket serves small towns and the cities in its trade areas. It has continued with the different branches in South Central United States. Superior Supermarket's food sale continued with three branches in Centralia. Nonetheless, Superior Supermarket is ranked at either number 1 or 2 for its market share in the region. Moreover, it did not return to the sale that was expected in the fourth quarter of 2002. Hence, Superior Supermarket held a meeting to discuss the decline in its sales. The discussion of the meeting led towards the identification of key challenges that were high price strategy of Superior Supermarket than that of its competitors. Furthermore, it was foresighted that the Superior Supermarket will lose its customers and would get a decline in its market shares.....................

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