New Upscale Supermarket in Columbia, Sc
Essay title: New Upscale Supermarket in Columbia, Sc
New upscale supermarket in Columbia, SC
The opening of a new upscale supermarket requires a thorough analysis of the current competition and the business strategy that the competition has. After analyzing the competition, a plan has to be conceived, which has to determine what the competitive advantage of the company will be.
Competition
Columbia currently has several supermarkets operating, from the upscale ones like Publix and Kroger to the ones that target the lower income customers like Food Lion, Bi-Lo and Piggly Wiggly.
Publix is probably the only true upscale competitor in Columbia. They emphasize service and a family-friendly image rather than price. They make some of their own bakery, deli, and dairy goods and many stores offer flowers, house wares, pharmacies, and banks. 30% of the company is owned by employees. Publix also offer different clubs and programs that add value to the company.
Kroger is still the nation’s #1 pure grocery chain, although Wal-Mart has taken its place as the largest grocery seller in the US. In order to be able to stay in competition, it has started diversifying its offering adding jewelry and general merchandise.
Food Lion prides itself on extra low prices. However, it has been hurt by Wal-Mart and a weak economy. The company is the largest US subsidiary of Delhaize America. Food Lion maintains its low prices and quality reassurance through technological advances and operating efficiencies such as standard store formats, innovative warehouse design and management, energy-efficient facilities and data synchronization and integration with suppliers (Food Lion website).
Piggly Wiggly is the largest employee-owned company. It offers outstanding selection of fresh, quality products, excellent customer service, in-store pharmacy departments and health screenings. It also operates a trading stamp rewards program with Sister Company Greenbax and promotes brand fidelity through selling various Piggly Wiggly merchandise.
Bi-Lo offers national brand names, store brands, health and beauty products, Southern Health Bakery products, deli meats, meats-to-go, pharmacies and Starbucks Cafй kiosks.
Creating a Competitive Advantage
In order for the new upscale supermarket to have success, it has to target the right people, be placed in the right location, and offer the right products, ambience and prices. The group that the supermarket would be targeting is very clear: affluent shoppers that will go to the better grocer for convenience, freshness and variety. So placing the supermarket in a convenient area is very important.
There are different location options for the upscale supermarket. If could be placed in a high-income neighborhood or it could be placed in the highest vacancy area in the region. Downtown Columbia, for example, has a 21% vacancy rate, which is the highest in the region..
The second attribute that the supermarket will have to satisfy better than any other competitor is the freshness of the