Retail Comparison- Okemos Meijer

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Retail Comparison Okemos Meijer Victoria Myers A43832498 Assignment 1 FIM 220 Food Product Marketing February 3 2014 The most well known supercenter to students in the East Lansing Area would have to be Meijer Located a few short miles from Michigan State University s campus many students consider the Okemos Meijer as a one stop shop The supercenter has everything from clothes and electronics to school supplies and groceries Meijer is a regional chain with stores located in Michigan Indiana Ohio Illinois and Kentucky Meijer 2011 I will be taking a closer look at the grocery sector of the store and why it is such a popular choice for residents and students of the East Lansing and Okemos areas The four P s of the Marketing Mix product place promotion and price will be used to give an in depth analysis of the grocery sector PLACE The Okemos Meijer is located off Grand River Avenue one of the busiest roads in both the East Lansing and Okemos areas With its prime location Meijer is able to attract thousands of passerby s to its store daily The Meridian Mall is located just across the street from Meijer Because the Meridian Mall is the only mall on the east side of town Meijer benefits from its many retail shoppers that are coming and going People can easily plan a day of shopping that begins at the mall and then finishes by heading over to Meijer and picking up their groceries Best Buy also located on the north side of Grand River Avenue can also lure potential customers to Meijer Known as a category killer Best Buy specializes in selling a variety of electronics Being the closest supermarket in sight Meijer is easily benefited by Best Buy customers Located only a block away from Meijer is Gordon Food Service GFS is a store where large and bulk quantities of food are sold As a result shoppers at GFS may make their way to Meijer to buy specialty items as well as items that they do not need in large or bulk quantities There are a variety of fast food and dine in restaurants just within a block of the Okemos Meijer The nearby fast food restaurants include McDonalds Burger King Taco Bell Subway KFC and Wendy s I believe that currently these fast food restaurants do not have as large of an impact when it comes to attracting customers to shopping centers as they might have had in the past Today you can find at least one fast food restaurant in almost every city or town Thirty years ago that was definitely not the case eating away from home has become less popular through the years At one point in time people may have planned their trips around fast food restaurants Today people are more focused on planning trips around large retail or grocery stores and fall victim to the fast food The Okemos Meijer has many competing grocery stores some are even located as close as a couple of miles away Kroger is most likely Meijer s largest competitor due to the discount given to their loyalty cardholders Other competitors include Gordon Food Service Whole Foods Tom s Food Center Oriental Market and the East Lansing Food Co Op Each of these competitors offers something unique whether it s organic choices or international foods The variety of stores allows the grocery customers to be picky about what kind of food they buy and where they buy it PROMOTION Meijer does a fantastic job attracting customers to its store with the use of advertising Weekly ads are sent out to prospective buyers in the area listing all of the sale items for the following week Although it may be costly these weekly ads are the best way to reach out to current and potential customers because it makes it easy for every customer to see what items are on sale before even entering the store Meijer also has a webpage that customers can access and view the weekly ads Their webpage is extremely advertising focused Online customers are able to sign up for weekly emails that include My Meijer Deals and Anytime Deal Alerts For those who create an account exclusive online discounts are available that ordinary customers cannot receive This online promotion is known as The Big Steal Meijer 2011 In store advertising is extremely important for Meijer as well While touring the grocery section of the store I noticed end displays at every aisle along with large signs reading SALE or BUY ONE GET ONE FREE These end displays seemed to catch the eye of a majority of Meijer s customers I believe that these items on the end of the aisles were the most sold sale items of the week The items located in the center of the aisle are sometimes hard to spot This makes it extremely easy for any customer to miss out on sale opportunities Providing samples throughout the store was another promotion technique used by the Okemos Meijer allowing customers to get a taste of the actual product before they decide to purchase it Food sampling is not a daily occurrence but luckily on the day I chose to observe I counted at least five different samples being offered They included both national and Meijer brand items such as kettle cooked chips macaroni and cheese cube cheese cereal and sausage This is a great way to catch buyer s attention especially those buyers who are teetering and can t decide whether or not to buy a specific product PRODUCT Store layout can directly affect the types of items purchased by customers Having the produce deli bakery section in the front of the store is a fantastic idea for the Okemos Meijer It is where customers today spend a majority of their grocery bill so it s nice to have it convenient when the customer walks in The produce also looked very fresh which is important Walking through the aisles the dry ingredients were labeled and easy to find I did have a problem locating the dairy section I have seen it located at the back of the store in other locations but here it was located along a sidewall close to lunchmeats and juice which I wasn t accustomed to The employees kept the store very clean I didn t notice any extremely dirty areas that may have turned me off to buying any of the products Meijer recently continues to add more private label items to its shelves This is due to the fact that customers are looking for ways to get the most for their money making private labels a great choice because they are cheaper while still maintaining great if not better food quality than some national brands The extent to which private label items are stocked depends on the product In the chip aisle there was a seventy to thirty percent ratio between national and private brands national brands leading private However while walking through the soda section I noticed that the private brands were leading the national labels The one thing that really caught my attention was the shelf placement of the private label items In the soda aisle all of the private label items were located on the end of the aisle and on the lower shelves while national labels such as Pepsi and Coke were located in the center of the aisle at eye level The national brands also covered more space than the private level beverages The same can be said about the cereal aisle as well as cookies and crackers Conversely when looking at peanut butter the national and private labels covered the same amount of space and were both at eye level rather than the private label consuming the lower shelves Another product offered by Meijer is ready to eat meals In the deli section a heat station is available This station includes an assortment of chicken and potatoes in addition to pulled pork This has become more popular because it is so convenient to customers who are crunched for time Meijer also offers a large variety of pre made salads that compliment these ready to eat meals very well These meals are seen as competition to surrounding fast food restaurants Customers view the meals provided by Meijer as a healthier option convincing them to choose that particular purchase Meijer makes its products available to customers twenty four hours a day 364 days a year This makes shopping easy for customers because they can shop whenever is most convenient for them as opposed to having to work around the stores hours This particular Meijer also has a couple of different smaller stores located within the supercenter There is a Subway Biggby Coffee Angel Nails a barbershop and a vision center There is also a pharmacy and a bank Having all of these additional businesses makes it even more convenient for customers to run more than one errand in one easy place PRICE I visited the Okemos Meijer on Tuesday January 28th around 1pm The majority of people I noticed that were shopping were students mostly female with little to no income and elderly women who seemed to be retired and living a middle class lifestyle The Okemos East Lansing area is highly diverse especially with the amount of MSU students living here Females represent 51 8 while men make up 48 2 of the total population Over 83 of the population is white and the median income is 66 802 Residents with jobs are likely to work in a management or professional position 59 8 or in sales an office 23 2 ZIPskinny 2011 The amount of diversity had led Meijer to offer three types of pricing strategies everyday best price sale and price drop Retailer Daily Everyday best price items are priced at the lowest cost possible in order to help customers save money Sale items are limited time deductions usually lasing between one and seven days Price drop items are those that represent special buys or promotions from suppliers They are discounted for a longer period than the sale items Retailer Daily 2009 Meijer customers are now able to take advantage of new technologies in the store New price scanners are located variously throughout the grocery section which gives customers the ability to check the price of an item that might be on sale or having a special promotion Meijer has also incorporated the use of self checkout lanes making checking out much faster and more convenient for customers improving the flow of traffic in and out of the store CONCLUSION After a full review and analysis of Meijer I have concluded that the store operations are very effective There seems to always be products on the shelf and there are plenty of employees around to answer any questions that a customer may have One thing I might change is the location of the dairy section At a number of grocery stores this section is located at the back of the store making it easy to find and recognize Meijer continues to progress forward technologically and promotionally in order to take the appropriate steps to keep its customers satisfied REFERENCES Meijer 2011 Our Company Meijer Corporate website http www meijer com content corperate jsp pageName company Accessed February 1 2014 Retailer Daily 2009 Meijer Launches Major Price Shift Retailer Daily website http www retailerdaily com entry 46100 meijer pricing shift Accessed February 1 2014 ZIPskinny 2011 Okemos Demographics ZIPskinny website http zipskinny com index php zip 48864 pagetype main Accessed February 1 2014


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