GroupCase2_Final

GroupCase2_Final - Team Case Project 2: H-E-B Own Brands...

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Team Case Project 2: H-E-B Own Brands October 6 th , 2008 John Lilly, Ashley Mohney and Leslie Norrington
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Introduction H-E-B Brand Stores are widely popular supermarkets dominating the Texas grocery market. This family business has gained a clear image in the mind of its customers to be a top every day low pricing grocery chain. Their strong focus on the consumer has created a sizeable customer following for the store, allowing H-E-B to compete with the leading retail outlets. The success of H-E-B allows the chain to draw sales of $7.9 Billion in 2000: similar to the sales of Great A&P Tea and Supervalu even though those chains have almost double the number of H-E-B stores. A major factor for H-E-B’s success is strong private labels. Its use of multiple private label brands and over 3,000 products makes H-E-B a powerful competitor against even national brands. Charles Butt’s goal of earning 30% of sales from its Own Brands alone is a challenging yet manageable goal for H-E-B. In order to maintain its EDLP image while increasing sales of its private labels, H-E-B must target its pricing to follow (yet beat) the national brands, build an effective price promotions strategy, and scale up Own Brands product offerings in certain successful departments. Recommendations for Glacia We believe that H-E-B would be best served by elevating the current “Glacia brand” and position the product as a direct competitor to Evian. To do this, it will be important for Glacia not to just move its location on the shelf but also make several other key changes such as: Re-label the water as “Glacia Canada,” since now even the name will draw attention to the fact that the water is imported Repackage so that bottle sizes are comparable to Evian. For instance, have .5L 1L and 1.5L bottles instead of the .5 L and gallon sizes seen now. Move package to same shelf area as Evian Re-price to about $4.49 so that price will be comparable to Evian but still $1 cheaper
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Distinct Positioning for New Glacia When H-E-B reintroduces Glacia Canada it must make take precise actions to ensure success of the product. In repositioning the brand, it should be sure to: Temporarily remove it from shelves (for about 1 month) and replace with an H-E- B branded domestic spring water that is designed to be competitive with Ozark
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GroupCase2_Final - Team Case Project 2: H-E-B Own Brands...

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