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Assignment 1-1

Naveed Hasan is an owner of a newly opened supermarket trying to decide on a business strategy. Due to the COVID-19 lockdown, customers need to fulfill daily needs while staying home. The Mart supermarket's strategy is to offer free home delivery for orders over PKR 2500 to attract customers during the pandemic by meeting their needs while keeping them safe at home. Competitors in the city offer different strategies like low prices, high-end products, or being a one-stop shop. The Mart aims to succeed by offering home delivery to serve customers during the lockdown when crowded places are unsafe.

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Irfan Jadoon
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364 views

Assignment 1-1

Naveed Hasan is an owner of a newly opened supermarket trying to decide on a business strategy. Due to the COVID-19 lockdown, customers need to fulfill daily needs while staying home. The Mart supermarket's strategy is to offer free home delivery for orders over PKR 2500 to attract customers during the pandemic by meeting their needs while keeping them safe at home. Competitors in the city offer different strategies like low prices, high-end products, or being a one-stop shop. The Mart aims to succeed by offering home delivery to serve customers during the lockdown when crowded places are unsafe.

Uploaded by

Irfan Jadoon
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Naveed Hasan | Registration #: 44460

Assignment: Strategy
What Kind of Supermarket?
Discuss the following scenario: Due to the recent outbreak of COVID-19
and the subsequent enforced lock down by provincial and federal
authorities. Every day life has become extremely difficult as except food,
medicine and fuel are the only commodities being provided to the general
public.

You are owner of a newly inaugurated supermarket investor. You are


trying to decide what business-level strategy would provide your
supermarket with a competitive advantage that would allow you to attract
customers and outperform your prospective rivals.
1. List the supermarket chains in your city and identify their business-level
strategies (for example, low cost, differentiation, or focus). Also, list any
particular kinds of strengths or weaknesses that they might have (such as a great
bakery or a horrible meat counter).
2. On the basis of this analysis, what type of business-level strategy do you
think will best succeed in the local market? What will the specific elements of
this strategy be? (For example: What kind of supermarket will it be? What kind
of strengths will you try to develop? What kinds of customers will you aim for?
What will you do to attract them?)
The Mart
Delivering Happiness
Considering the current scenario and lock down in the city, customer are fighting for their
survival both from the pandemic and fulfil their daily needs while staying at home. In this
current situation, a strategy that could satisfy the needs of consumer while keeping them
away from crowded places will certainly pull consumer spending’s. The Mart is a
supermarket that cares for the community and has come up with a concept of free home
delivery for consumers looking forward to spend more than PKR 2500. The amount of PKR
2500 covers the cost of delivery from the profit margin.

1) Out of the many we are only mentioning the name which have differentiated competitive
strategy.
a) Chase Value: Their competitive strategy is to sell economical rated products targeting
the middle class sector of the society.
b) Agha’s Super Market: The store generally keeps high end, imported and expensive
branded products and mainly target the high income groups.
c) Imtiaz Super Market: Imtiaz works on ELDP strategy and their target audience are all
kinds of income groups
d) Salma Super Market: They are new comers and don’t seem to have a clear
competitive strategy. Recently they come up with the home delivery option but that
could attract consumers in the recent pandemic, otherwise Pakistani consumer still
require more time to be more comfortable with the online shopping strategy. Also the
resellers are not matured enough with the online selling norms. Nevertheless Salma
Supermarket is providing the closely located consumer a better place for routine
grocery.
e) TM Mart: Serves as one stop shopping platform that includes grocery items,
wearables, a pharmacy and fresh fruits and vegetables counter. The perishable items
like vegies and fruits are of great quality and also the quality of other products offered
are excellent.

2) The concept of supermarkets has evolved in the recent past. Initially consumers were
fascinated with the availability of almost all kinds of products under one roof. However
with the passage of time increasing competition in the super markets and new entrants
consumers were available with more options which made them choose amongst the
options on the basis of best offers and benefits. To grab consumer attention and to make
them shop from a specific reseller, different strategies were adopted by different resellers.
Some of them targeted guaranteed low priced strategy, while others came up with
subscription and membership offers, some others increased the variety of products, out of
the box marketing strategy which helps position the product as unique, their display and
brand image in the market and the list goes on.

Now a days, one cannot be rigid with the strategy which can be adopted while opening a
new supermarket. To be successful, the strategy should change with the change in the
market scenario. A mix of all the above could be a best suit for the consumer industry of
Pakistan. However, there are few things that can serve as a competitive edge.

(a) Everyday low prices concept should be adopted.


(b) Through backward integration company should manufacture most
consumable products, for eg, tissue papers, plastic made items, and
clothing. This will increase the profit of the company and will allow the
reseller to offer low prices.
(c) Through backward integration, reseller should approach the farmers to get
the lowest possible price by eliminating the middle man profits.
(d) Generally it is seen that quality clothes are not offered in super stores. This
can attract high number of females and youngsters if a proper market
competitive brand is launched.
(e) Company should make vertical integration via long term strategic
partnership which in terms guarantees the growth of brands in parallel with
the growth of the reseller.
(f) Also an unorthodox marketing strategy should be adopted to differentiate
the product from other available products in the market.

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