Publix Grocer Chain Trade Enhancement Plan - Assignment Example

Publix Grocer Chain trade enhancement plan Part one Purpose The purpose of this marketing plan term project hugely focuses on elaborate development of information on the current situation for Publix Grocer Chain. It mainly centers of gathering and analyzing information on the Industry, Company and Brand, Competitors, and Marketplace thus highlighting the suitability for further improvements in regards to the enhanced collection of the required data. The purpose of this work is hence directed in amplifying the output from Publix Grocer Chain by enhancing its competition amongst the competitor in the market and expanding. Background Information Publix Grocer Chain is an industry player majoring Food Markets industry, founded in 1930, the country of origin is United States, the current CEO is Mr. William E Crenshaw and the CFO is David P Phillips. The company has its main website as www.publix.com for elaborating companies information and it has a current employees population of about 158,000. The sale of company is currently valued at $27.49 b, its headquarters is at Lakeland, FL and firm’s fiscal year end ritualistically ends on Dec 31, 2012. The history of Publix Grocer Chain dates back to 1930 in which it was found by George W. Jenkins and thus Publix is a private corporation indicating that it is mainly or wholly owned by current and past employees. The enterprise is currently rated No. 67. The founder George Jenkins opened the initial Publix market in place called Winter Haven, located in Florida, in 1930 on a 27 ft by 65 ft structure at 199 West Central Avenue. Gradually n 1934, the primary store made virtually $120,000 on sales thus enabling further expansion in which 1935, George Jenkins opened a subsequent market, by the name Economy Food Store, located also in Winter Haven. Disregarding e the Great Depression, all his stores were fiscally successful as he well mortgaged an orange grove to erect Florida’s pioneering supermarket. His enhanced "food palace" had well piped-in music, entailed air conditioning, smart cold cases for well frozen and refrigerated goods and items, in-store corresponding donut and also flower shops, and even electric-eye automatic doors. Following the effects of World War II, entailed material shortages dearly prevented him from erecting additional stores. Industry and Categories Publix Grocer Chain falls in the Food Markets industry with some intense player including Walmart, Safeway, Publix, Kroger Dairy, Farm, Shoprite, Albertsons, Winn-Dixie and TARGET. According to the prevailing statistics, the firm is presently ranked No. 67 in terms of volumes of sales and profits accrued. In the industry, the firm processes its own company dairy, deli products and bakery and hence it acts as a distributor of the goods all of its stores. It has further announced a deal to purchase and develop seven BI-LO-branded products stores in South and North Carolina. Publix is an entirely private corporation that is completely owned by current and past employee. The firm is opening 37 additional shops this year both in farther afield and Florida. Judging by its flourishing expansion in Georgia, where it has the greatest number of stores apart from Florida the firm, Publix will persist on giving the Bentonville behemoth enhanced run for its money as it steadily expands all through Americas south-east. The sales on Publix Super Markets Inc. in Lakeland started in 2014 with additional growth in entailed earnings and subsequent augmentation in sales. The first-quarter availed profits were virtually $493.7 million and this was a corresponding 4.8 percent in comparison with the year before, the firm has since a total sales increment on sales by 4.1 percent on a yearly basis to the final $7.8 billion. On the other end, same-store sales went up 4 percent. Pubix management affirms that the first- quarter sales were highly and negatively impacted by approximate 1.3 percent due to the Easter holiday. Consequently, earnings on every share for the highlighted first quarter finally came to 63 cents which is up from 61 cents on every share last year. Brand The achievement of distinct strong brand is highly invaluable as the increased battle for customers well intensifies day by day. Its imperative to spend time well investing in increased researching, corresponding defining, and essential building your brand. Publix Grocer Chain the regards of brand for the company is communicated by the companys recognizable 2011 sales which totaled close to US$27.1 billion, with corresponding profits of virtually $1.5 billion and eventually ranking 106 as indicated on Fortune magazines. The companies Critical to efficient brand management is the lucid definition of the compounded brands audience and entailed objectives that the company has invested. Competitor, strength and weakness The main competition Publix is waging is in connection with the nations largest grocery supermarket and retailer, Wal-Mart Stores which is trying forcefully to lure and captivate shoppers especially in Central Florida whemarre Publix dominates. The Publix cherishes its strength of having numerous intensely loyal customers. Various analysts admits that the grocer is in verge of losing business to Wal-Mart’s as the retailer (Wal-Mart) opens extra supermarkets and further undertakes running of ads and even comparing its normal low prices with the one of the competitors. Some elements provided by Publix supermarket like provision of stables make Publix uniquely cited in the market. The elevated battle is mainly over billions of dollars. Currently, Publix generates virtually 43.8 percent of entire grocery sales and normally close to $8.8 billion emanates from the southwest and the central of the state including Orlando, Fort Myers and Tampa. Wal-Mart stores have currently assumed nearly 27.7 percent in the area which translates to close to $5.5 billion. Quite discouraging (weakness)that Publix’s market entire share has been growing at a lower rate compared to n Wal-Mart’s which is by 0.9 percent and compared with 1.4 percent, correspondingly between May 2012 and January 2013. Publix product positioning, differentiation and competitive advantage Publix has mainly undertaken segmentation and positioning targeting students from high school and college very profoundly. The entailment of BOGO or inclusion of half price for a single well offers numerous scholarship opportunities and outlined employment opportunities. The chain has always implemented a desire to continue to grow intensely and thus market itself as the locality store that is well involved it has further differentiated on enhanced and focused on increased customer service level thus creating a very unique shopping experience. Publix always succeeded through a enhanced differentiation approach that combines towering levels of skilled sales assistance by inclusion of dedicated and trained staff, well-specialized on merchandise which most of them are private label and usually a shopping atmosphere that is normally viewed by several consumers as very exciting, fun and entertaining. The competitive advantage of Publix lies on several issues that customers states as the best reason for selecting Publix over Wal-Mart. Shoppers choose Publix due to enhanced quality store brands, well kept stores and excellent customer service. The grocer is also the lowest price leader. Publix pricing The pricing policy for Publix is best and indisputably most accepted by clientele base. It is the cheapest as compared to most of its market competitors. Publix Grocer Chain has various competitors in the industry including, Walmart, Safeway, Publix, KrogerDairy ,Farm, Shoprite, Albertsons, Winn-Dixie and TARGET. The positioning of Publix Grocer Chain in the market however defines the extents to which clients select one store as compared to the other. The command of the created brand by Publix Grocer Chain lies in the enhanced ability to focus and hence the market plan builds on the strengthened brands entailed effectiveness. Publix Grocer Chain regards the concerns on performing a careful analysis to verify principal barriers that the company faces including the subsequent supplier related and entailed government rules or varying customer’s response with increased advertisements. The corresponding competition has dire reduction in the chunk of the market controlled by the super market. Marketplace Publix is well structured in the market and is loved by several clients. It is mostly loved by young group of college student and high school students. The target market for the chain lies in intensively in geographical expansion to the other parts as currently the firm operates throughout the entire Southeast, with branches on other locations in Florida having 756, Georgia having 182 segments, Alabama entailing 56 branches, South Carolina having 49, Tennessee having 38, and ultimately North Carolina has 2. This statistics indicates the strength and power by which it holds the wider region control of the supply chain region. In comparison with Wal-Mart which it typically encroaching into publix base,. Walmart, is growing faster. Publix Grocer Chain marketplace is indicated with the varying range variant income earning segments of the society. The adaptation of Publix Grocer Chain in the marketplace is indicated by the enhanced. Publix frequent conduction of charity drives aimed at raising money and even food for various charities as Special Olympics, Childrens Miracle Network, March of Dimes and United Way and an assortment of local food banks and entailed soup kitchens for instance Our Fathers House Soup Kitchen or Second Harvest North Florida. Publix has in the past won various local or regional, and even national industry awards on philanthropy. Publix is usually organized into various departments well grouped based on comparable skills, work activities, expertise, and resource use, for instance human resources, marketing, manufacturing, public affairs, and distribution. Entire the departments have explicit resources that aid it reach an excellent organizational task, and even each department simply deals with their detailed or specific area and interest or problems. Normally stores are consistent of six departments entailing customer service, produce, deli, bakery grocery, meat, and pharmacy which are run by a departmental manager or even assistant manager of the department (shah, 35). All the departments are well overseen by a superior store manager consistent assistant store manager. Economy &Consumer Characteristics Publix Grocer Chain operates in American economy which comprises of a population past 14.2 million with a GDP (PPP) of $15.7 trillion, subsequent 2.2% growth, entailed 0.6% 5-year compounded annual growth and corresponding $49,922 per capita. The statistical rate of unemployment levels is close to 8.1% with varying Inflation (CPI) of 2.1% and subsequent FDI Inflow of nearly $167.6 billion. There is enhanced and aggressive completion for the market as indicated by the varying consumer characteristics and segments. Analysis In evaluation and analysis Publixs main same-store entailed sales has grown steadily increasing. In 2014, the firm had clocked 5.1% in the primary three months of the year. Comparing with the current standing of the market and outlined slimming margins, Publix creates 40% extra profit on their groceries as compared to Wal-Mart. Entirely, Publix has 60% bigger revenue in comparison to the Meijer in the Midwest which is the subsequent principal private supermarket. The creation of the brand in the market kept the enhanced reputation over marketers or the industry players thus ensuring that the supermarket is always at the top. The future brand of the grocery chain lies in the providence of best quality suppliers as it has always attempted and maintaining elevated standards in terms of provision of services to its clients. This process elevates the existing rates of completion with the prevailing conditions. Part two The current Objectives Publix Grocer Chain is an ever-growing company and has current objectives on widening its coverage regions. The chain, In September 2010, reported it had started the process of adding Blockbuster DVD rental- oriented kiosks to its wide range of stores, having movie rentals and consequently starting at $1 per day. Subsequently in 2010, Publix fully completed its entire rollout of Blockbuster Express kiosks to stores. Publix Pix and affiliate Publix Liquors have interests in liquor. Publix has been operating eleven Publix Pix on gasoline-convenience stores. The Locations were very limited during the experimental basis of the concept. Afterwards, in 2014, Publix Pix locations were all sold and the entire concept was hence discontinued (Ride et al, 26). Publix Liquors is currently a stand-alone liquor store. Fig, Example of a Flow Supply Chain Strategies The main strategies available to Publix chain include proper positioning in the market segment, increased escalated differentiation and proper development and recognition of a competitive advantage. The esteemed strategies by the firm are aimed at expanding and adding up additional branches. The additional can only be well maintained by provision of an exceedingly competitive setting as this feature creates a segment that has made companies to have competitive advantage. Excellent logistics management has the great potential to assist the various organizations in the accomplishment of both enhanced cost/productivity benefit and subsequent value advantage. Under the logistics entailed perspective which ritualistically considers the company itself without correspondingly considering its attached supply chain members or branches is not usually sufficient. To properly attain this enhanced competitive advantage, there is the dire need to adopt the enhanced Supply Chain Management or entailed approach and consider the entire supply chain as a whole. Normally correct and enhanced Supply Chain Management which refers to “the management of upstream or downstream relationships with subsequent suppliers or customers to well deliver superior customer worth at less cost to the usual supply chain as entirely. With adoption of the philosophy by Publix Grocer Chain, there is normally less requirement for movement away from normal or arms-length relationships on partnership-style arrangements (Ride et al, 56). Other strategies include coherent distribution Management which considers the sources from suppliers’ loading dock to eventual Publix Grocer Chain front door as this aims well streamlining distribution process, enhancing delivery faster and eventual reduction in costs. Variations and enhancement on the transportation lifecycle management would strategically result in reduce costs, coordinate deliveries precisely, reroute around trouble spots, and deliver more goods , faster, for less costs. Connect of the firm’s transportation network from contemporary procurement to delivery (Ray, 54). Marketing Implementations programs Marketing Implementations programs at Publix Grocer Chain shall be expected to highly operate effectively on basis of certain guidelines to foresee thorough realization of the visions and strategies laid down. The firm will acknowledge that in prevailing scenario there is high need for competitiveness globally, marketing sits transversely every function of any business, and thus it is ‘The Marketing Department’ that has the great role of elevating the firm. Marketing essence can be a very multifaceted subject, but the fundamentals of developing a few of the interior or center skills is quite rewarding. The essence of Pareto Principle (80/20 rule) for a firm is highly imperative and comprehension of the 80/20 Rule for the firm as Pareto’s Principle as it commonly referred to in business is the rule that tells us that eighty percent of the sales come from virtually twenty percent of the customers. The authentic percentages may fluctuate, but fundamentally it means that Publix Grocer Chain have to recognize where its profits or revenue come from and purposely target the customers. The marketing or advertising budget should correspondingly take account of the fact apart from which Publix Grocer Chain you will be wasting time resource and effort. A critical implementation factor is the Customer Segmentation essence. Recognition of the different types of customers Publix Grocer Chain deals with and tailor appropriate and deserving approach to them is highly imperative. There are normally hundreds of ways or models a business can amply segment customers, and hence Publix Grocer Chain has the right to select which is the best option they would choose and which is awesomely right for the business (Ray, 34). Market Budget Fig a: Publix Grocer Chain budget The Market Budget implies inclusion of several items thus enabling the efficient stabilization of the variant and instrumental segments of the budget plan. Subdivision of the budget into three main portions entails critical consideration of the variants factors entailed in this process. Expenses or investment line items state elaborate centers under which fiscal concern should be well undertaken. The executive business operations and corresponding financial operations segment have the corresponding amount allocated. There is a significant amount set aside for the day –to – day operations on leadership segment. This section aids in increasing the numbers of the attendees to various branches of the chains. Rejuvenated Sales and marketing section would similarly consume considerable amount of cash to enable proper running of the grocery chain. The rest of budgeted money is as outlaid in the diagram. Budget control Budget control with reference to the process of proper management of individual line items within on the prospective budget business budget so that expected expenditures over the allocated amounts is avoided. This form of control is highly necessary in order to ensure that entailed operational expenses do not surpass the well projected revenue for the time period, creating a unexpected net loss. There are numerous elements that are considered in this cases, including the proper preparation of a achievable and realistic budget, proper monitoring of income levels, and efficient engaging in contrast shopping before executing the purchases. The initial step in efficient budget control is the design of a budget that is typically based on inherent factual information concerning the revenue normally needed to maneuver the business effectively. Recommendations For an excellent running of Publix Grocer Chain, the main recommendation considerable on the company includes timely re-evaluation to determine whether the company is well and running at maximum or optimum level possible to spur corresponding income in revenues. stringent and enhanced order lifecycle management to effectively manage the order processes incoming efficiently from supplier and back again to save properly money. subsequent inventory optimization is highly needed to avoid rush in charges, excess inventory, express delivery fees and gloomy customers with prevailing sophisticated inventory optimization ability. the recurrent urge for enhanced planning and entailed forecasting is very imperative to facilitate clear anticipation of demand and efficient outlined response quickly when it changes. Precisely predict exact inventory requirements for concurrent promotions, seasons or proper store clusters to augment sales, curtail working capital demands and well keep customers happy. Works cited Ray, Rajesh. Supply Chain Management for Retailing. New Delhi: Tata McGraw-Hill Education, 2010. Print. Shah, Janat. Supply Chain Management: Text and Cases. Upper Saddle River, N.J: Pearson Education, 2009. Print. ride, William M, Robert J. Hughes, and Jack R. Kapoor. Business. Australia: South-Western/Cengage Learning, 2010. Print. Read More