University Case Study Competition 2014 By: Doug Wheelright, Hanna Downs, Jessica Roerig & Dan Tyranski
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1 University Case Study Competition 2014 By: Doug Wheelright, Hanna Downs, Jessica Roerig & Dan Tyranski
2 Always fresh, always local Mission: We like to know our customers on a first name basis, and give them the quality products, low prices and excellent customer service they deserve. We routinely go that extra mile to earn your business. Operates under three banners 15 Cities 30 Store Operation Primarily focused on serving Ohio area Current local campaign is unsuccessful
3 Trade Area
4 Demographics Population 45,621 Average Household Size 2.5 Household income $58,212 Median Age 40 Total Area Grocery Sales $109M Population 11,570,808 Average Household Size 2.46 Household income $48,246 Median Age 38.8 Total Area Grocery Sales $17B *Reflective of data provided by Community Markets covering entire Logan County-area
5 Lifestyle New Homesteaders Old Milltowns Bedrock America Bellefontaine Young & Rustic *
6 Lifestyle New Homesteaders Old Milltowns Bedrock America Bellefontaine Young & Rustic *
7 Competitive Landscape Limited local offerings from main competitors Steve s Market & Deli o..i can only think of local popcorn & kettle corn that we carry from the Ohio area Kroger o Not a lot, maybe a few yellow & orange tomatoes o it comes from the warehouse, not sure where we buy it from.
8 Assumption: Local Local Product Definition Getting close to the farmer means better tasting fresher products A clear division in what local is Promotional Definition Buying locally produced products creates jobs and supports the community
9 Our Vision for To be the premier independent grocer for the communities that we serve where supporting local producers & communities is not just an option, it s a way of life
10 How can reach this vision? 1. Community Involvement Organization of the Month Producer of the Month Promotional focus on local 2. Merchandising Revamp Eye-catching signage Seasonality
11 focuses on the community
12 recognizes an Organization of the Month To highlight organizations that bring value to our community by advertising their contributions in our stores & providing discounts to support healthy, local living
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17 recognizes an Organization of the Month Bellefontaine Elementary School Home of the little Chieftains Roughly 600 students currently enrolled Two Community Markets only miles away!
18 recognizes an Organization of the Month Letter of Recognition Full Page of Coupons Producer of the Month Highlight Activity Page
19 Recognition Letter to the students of Bellefontaine Elementary
20 Full page of coupons also highlighting local Producer of the Month
21 Producer of the Month highlight & Activity Sheet Activity Sheet includes nutritional facts & benefits of highlighted product!
22 recognizes... as the Organization of the Month
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25 reaches out with Social Media
26 Bellefontaine Students Support Local Farmers Community Markets new local initiatives encourages the community to support their local farmers, producers and the community as a whole. This month Fresh Encounter s highlighted the students of Bellefontaine Elementary School and local farmer, Honeyrun Farm. Students were given coupons for their families to be used at local Community Markets establishments; as well as a Bee coloring page to showcase the Producer of the Month: Honeyrun Farms. If students colored the picture and brought it into the store to be hung up, their coupons could be redeemed. John Smith, of Fresh Encounter, says the success of the program in the first two weeks was a new high for his store. They were able to increase sales 1.5% and also move more local products off the shelves; even those outside of the curricular. This campaign has done exactly what we hoped. And we cannot wait to highlight more organizations and producers in our community. 309 N. Main St. (937) Community Markets local efforts recognized by the community!
27 How will implement this? Corporate Marketing Regional Manager Community Manager Distribution
28 focuses on local
29 Ohio s Own Storewide program that brings attention & awareness to the assortment of products we offer that are made or grown in your backyard
30 You re Never 5 Steps Away from Local! Informative signage that provides.. A personalized, hometown feel Breakdown of local product locations Eye-catching colors & design Motivation to buy local & support your community
31 At You re Never 5 Steps Away from Local! Eggs/dairy/yogurt/cheese Meats Bakery Produce Frozen Paper and cleaning items Baking Items Canned food Soda and snack foods Beer Wine & spirits Magazines Checkout Flowers entrance
32 focuses on merchandising: Ohio Flag Shelf Talkers Easily recognizable shelf talkers direct customers to Ohio s Own Products
33 focuses on merchandising: Mileage Markers Mileage Markers Mileage signs show customers how far away their produce was grown from the store.
34 Local Producer Bios focuses on merchandising: Local Producer Bio Where is your Honey from? Honeyrun Farm Williamsports, OH Miles traveled to Your Shopping Cart: We got our start in beekeeping back in 2003, when I gave Isaac his first beehive as a Christmas gift. What started as a simple hobby quickly turned into much more... We currently keep 320 hives of bees, harvest seasonal honey, collect bee pollen, create candles and handcrafted soap from the products of the hive, and market our products throughout Ohio as well as online and in several grocery stores.
35 focuses on merchandising: Local Producer End Caps Featured Local product with company bio Rotated out bi-weekly Connecting our customers to the food they buy! recognizes... as the Producer of the Month
36 Local Producer Bios BeerCa We got our start in beekeeping back in 2003, when I gave Isaac his as well as online and in several grocery stores. Beer Where is it from? Attorney for the Ohio Brewing Company, consultant for the Craft Beer Advisory and local government in Ohio.
37 Marketing Budget Bellefontaine Sales $14,838,710 2% Community Involvement Marketing Budget Weekly Circulars & Distribution $296,774 Local Promotion Education Supporting Economy Higher Nutritional Value Building Trust with Consumers Always fresh always local
38 Ohio's Own Merchandising Qty. Piece Price Total Cost/Month Print & Distribution Shelf Talkers 1000 $0.10 $ Mileage Markers 30 $0.15 $4.50 Producer Bios 500 $0.035 $17.50 End Caps Chalkboards* 4 $20.00 $80.00 Producer Bio Posters 8 $0.25 $2.00 In-store Signage Chalkboards* 3 $20.00 $60.00 Highlight Poster Signage 4 $0.50 $2.00 Total Annual Cost of Program $13, Rolled out in Two Stores & Rotated *One time purchase Out Bi-weekly
39 Organization of the Month Qty. Piece Price Total Cost/Month* Print & Distribution 4 Pages per Dist. Packet 600 $0.07 $ Total Discount Per Page Total Avg. Retail Cost of Coupons Offered $ % Discount Off Ea. Item Total (+ add tl 15% off Local product) $4.32 Retention Rate 25.00% Total Markdown Per Shopper $1.08 Number of Coupons Distributed 600 Overall Markdown During Promo $ Total Annual Cost of Program $21, *Promotion ran bi-weekly (26)
40 Total Program Cost Highlighted Promotions Ohio s Own Merchandising $13, Organization of the Month $21, Total Promotional Spend $35,188.40
41 Local Strategy: Economic Impact 14.6% (2012) 13.6% (Current Market Share) (2016) Market Share Recovery (3 years) +$500,000 per store Recency Frequency Loyalty
42 Local Strategy: Conclusion Consumers Expand local offering Which categories Merchandising strategy Cost Applicable to all Store Formats including those in Indiana To be the premier independent grocer for the communities that we serve where supporting local producers & communities is not just an option, it s a way of life
43 Thank You!
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45
46 Producer of the Month highlight & Activity Sheet Activity Sheet includes nutritional facts & benefits of highlighted product!
47
48 Total Program Cost Highlighted Promotions Ohio s Own Merchandising $13, Organization of the Month $21, Additional Promotional Activities 3-Day Local Sale $27, BOGO Canned Food Drive $11, Community Involvement & Sponsorships $35, Misc. Marketing Expenses $39, Total Promotional Spend $148,387.00
49 3-Day Local Sale Qty. Cost/Total Population Total Bellefontaine Population 45,621 Total No. of People Visiting 25% 11,405 Basket Size No. of Local Items in Each Basket 6 $4.00 Total Sales on Local ($) $273,726 10% Off Ea. Item Discount $27, Total Annual Cost of Program $27, *Reflective of both Bellefontaine Locations as a whole
50 Population BOGO Canned Food Drive Qty. Total Bellefontaine Population 45,621 Cost/Total Total No. of People Visiting 25% 11,405 Canned Goods Cost per can for retailer $0.50 No. of cans 1 Total Sales Lost on Promo* $5, Total Annual Cost of Program $11, *Promotion ran twice a year during winter Holidays & Thanksgiving
51 Community Involvement Sponsorship Qty. Schools 10 Churches 12 Cost Youth Groups 5 Various Organizations (i.e., Jump Ropers) 8 Total Cost per Org. $1, Total Annual Cost of Program $35,000.00
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