The method that supermarkets can employ Essay Example for Free

The method that supermarkets can employ Essay One method that supermarkets can employ to keep a competitive edge in the market share while competing with the larger supercenters is to appeal to the information-savvy customer by installing new technologically-advanced equipment. Examples of these include electronic shelving labels that are linked to backroom computers and automatically update price changes. Changes in pricing are updated automatically, thus delivering ethical information to the consumer in a timely fashion. Another way of keeping customers happy, and thus repeat customers, is updating customers’ hand-held devices or mobile phones upon entering the store with updated information about current specials, providing the consumer with relevant and valuable information. Another strategy is to employ customer relationship management solutions and loyalty programs. Research has shown that for most supermarkets, the top 30 percent of supermarket’s customer base accounts for 75 percent of their sales. Effective customer relationship programs will find ways to best appeal to the top 30 percent of their customers, and brainstorm ways to nourish and strengthen consumer relationships. As technology advances, many supermarket chains are discovering that their current Point-Of-Service (POS) technology is antiquated. The older technology will cripple supermarkets from gaining a competitive edge on the market share. Therefore, successful supermarket chains must maintain newer operating systems, with â€Å"plug and play† capability, that offer flexibility, self-management, self-diagnosis, and self-correction. The newer technology will offer a better shopping experience for the customer, and a competitive advantage for the retailer. Staying above the technology curve keeps consumers ethically informed of price changes and current inventory, and keeps a culturally diverse population happy with up-to-date information delivered in a relevant and sophisticated fashion. In 2002, the Coca-Cola Retailing Research Council commissioned a study of emerging trends in the supermarket industry. One finding indicates that supermarkets are increasingly tapping into the growing potential of America’s ethnic grocery shoppers. Supermarkets are implementing marketing and merchandising strategy to appeal to targeted groups of African Americans, Hispanics, and Asian-Americans, which comprise 1/3 of the total American population. This report, titled, â€Å"Grow with America: Best Practices in Ethnic Merchandising,† is filled with over 120 interviews with business owners and managers of chain supermarkets, independent grocery stores, food distributors, and food manufacturers. The study revealed that part of capturing the market share of grocery consumers is targeting and appealing to ethnic customers. Capturing the demographics of consumers can be successfully integrated into the customer relationship management policy of the supermarket chain or independent retailer. A few successful programs that supermarkets are currently using to appeal to the ethnic shopper are customized product assortment, strategies in merchandising, creating a store culture through signage, community outreach, language, community relations strategies, maintaining diverse staffing, and cultivating a diversity philosophy. This study was produced by a leading ethnic marketing research company and a marketing consulting firm specializing in ethnic markets. Together, these two companies conducted extensive research over the course of one year to compile existing research and interview leading executives and merchandisers in the supermarket industry.