CEO explained to the Financial Post that epicentre of the war competition is in

Ceo explained to the financial post that epicentre of

This preview shows page 40 - 42 out of 52 pages.

CEO explained to the Financial Post that “epicentre of the war (competition) is in Ontario, which has seen grocery square footage growing at more than double the historical level in the past year, with a wave of new food space added to the market from Wal-Mart, Target, Costco and Longo’s” (2013). With the majority of retailers competing on price, together with that fact that price points aren’t rising, retailers are feeling the pressure of shrinking profit margins and a lack of customer loyalty. It is clear that these retailers must innovate and find a way to compete on something other than price. Segment 1: “Prosperous parents and middle-age achievers” The first segment that is relevant to our service is prosperous parents and middle-age achievers. This consumer segment represents consumers that live in Canada’s largest metropolitan areas such as the Greater Toronto Area, earn over $70,000 per year (household income), hold professional careers, have on average 1.7 children living at home, and enjoy lavish lifestyles (SimplyMap, PRIZMC2, 2011). These consumers have busy lifestyles due to family and work responsibilities. Due to a lack of data, it is unclear as to weather these consumers purchase delivery grocery services mentioned earlier. These 40
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consumers shop at traditional retail grocery stores. These traditional grocery retailers appeal to customers based on three primary differentiating factors, which include location (proximity to home), product selection (ethnic and specialty foods, breadth and depth of product offerings) and price. These consumers are not price conscious, and are attracted to convenient locations, clean environments, a wide variety of products and excellent customer service. This segment can be identified through indirect means (such as where they purchase clothes, furnishings, etc.) as well as by their primary location of residence (as this is typically indicative of income, marital structure, profession, etc.). This segment is technologically savvy and can be reach through online media channels as well as traditional media, news, billboards, direct mail, etc. Consumers within this segment (keeping in mind they are households) are between the ages of 25 and 59, have completed education levels beyond high school, and are approximately equally divided between males and females. The entire household, including children, makes purchase decisions. At this point, it is not know if this segment is aware of current delivery services, although this service would likely rank high in importance for many of these busy professionals. Purchases are typically made at grocery retailers that occupy the higher-end of the market in terms of price, which include Fortino’s, Loblaw’s and Loblaw’s Great Foods, The Real Canadian Super Store, Metro Plus and Sobeys. This segment typically spends approximately $12,000 a year on food purchased from grocery retailers (Simply Map, 2011), and visits these retailers once a week.
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  • Winter '12
  • Volpe
  • Supermarket, Grocery store, Safeway Inc., Government of Canada

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