Marsh supermarket - Case Study Example

and Marsh supermarket The Marsh Supermarkets is one of the biggest chain stores on the United States of America and even the entire world. The chain store operates more than one hundred and seventeen supermarkets. The major problem that the Marsh Supermarkets is facing is the increasing rate of fall or deterioration in sales. This has been attributed to a number of factors, but the major one is due to shifts in consumer behavior. The shifts in the behavior of consumers was largely caused by the recessions or financial crisis that hit the world, and more so the economy of the United States of America, which had substantial effects of the incomes of many individuals.

Another thing that to some great extent led to reduced sales was stiff competition from the rival corporations such as the Wal-Mart and Kroger. Consequently, the company decided to carry out a study to fond out exactly the kind of goods or items that were performing badly in the market, and to what extent it had gone. The research that was conducted by the company was also aimed at trying to find out the possible solutions to the crisis or problems that is was facing. The study lasted for a period of sixty five days, and the UPC scanners that were fitted in all the test stores recorded sales of seventeen thousand, two hundred and twenty six different SKUs in one hundred and twenty key product categories (Don 6).

The research operations department of the company recorded all the costs, which included store transportation and warehouse, inventory, occupancy and labor. The calculation of DPC was one of the most difficult procedures in the study. Nonetheless, we find that the items that appeared to record the highest DPCs were perishable or fragile merchandise, slow-moving goods, and labor intensive departments and products. For instance, charcoal scored a high of $0.37 DPC per unit, while the disposable diapers scored a low of $0.

70 DPC per unit (Don 6). Some categories such as cosmetics and alcoholic beverages had poor scores of sales-per-foot, at $7.45 as well as $0.69 respectively. Whereas the average sales per client scores a low of $12.51, the results indicate that they actually spent the most per item, which stood at $2.50 and purchased a disproportionate share of items of high profits such as milk and commercial bread. The research had gone for a period of nearly one and quarter years to get completed and had captured about 98 million dollars in sales (Don 9).

From the study carried out by the company and the results obtained, we find that they give a clear guideline for what should be done to save the situation. From the steady depreciation of falls after analyzing the behavior of consumers, I believe it is important for the company to embark on aggressive promotion and advertisement. The company should create awareness of its items, accompanied by their respective prices so that the consumers can be able know where to find them as well as compare them with competitors.

Work cited Don E. Marsh Supermarkets, Inc. (A): The Marsh Super Study, 1995. Print.