Course Code: FIM 220. Retail Comparison. Kroger Retail Grocery Store.

Kroger Retail Grocery Store
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Course Code: FIM 220
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Assignment #1: Retail Comparison
October 3, 2018
Kroger Retail Grocery Store
1 Introduction
Kroger Retail Grocery store is located in East Lansing, Michigan and is part of the retail supermarket chain that spans 35States. It can be classified as national since it has national presence and is the largest supermarket chain in the United States in terms of revenue, having hit $115.34 Billion in 2016, and is the second largest general merchant after Wal-Mart. Kroger branded grocery stores can also be found in different locations within Michigan. The grocery store in Lancing, Michigan is part of the local chain that is directly affiliated to Kroger retail supermarket. The essay evaluates Kroger Grocery store in East Lansing based on the marketing mix concept (4 P’s) of Product, Place, Promotion and Price.
2 Marketing Mix Concept (4 P’s) Analysis
2.1 Place/Location
The grocery store is in an ideal location that is easily accessible, notwithstanding its proximity to a potential customer base. It is located closer to other retail businesses which makes it easily accessible to walk-in customers visiting neighboring stores. Besides, it is located next to a fast food chain and other departmental stores that are frequented by Lansing residents. There are also drug stores in the neighborhood which makes the store highly visible to a large population of potential clients. Furthermore, the store is centrally located thus making it highly visible as compared to other groceries.
2.2 Traffic Problem
A mild traffic problem was revealed since there is insufficient parking space as the store shares parking with the neighboring businesses. In my opinion, the store is in a desirable location even though changing the location due to parking could lead to loss of walk-in customers. In terms of accessibility, the current location is ideal and what needs to be addressed is only the parking problem.
2.3 Population Demographics
The store serves different types of clientele even though it is mostly frequented by middle aged women and men. Further analysis suggests that Kroger has more female and middle aged shoppers. In average, the store is frequented by shoppers aged 43 to 50. In terms of income, the store serves more high income shoppers even though the population of middle income earners is rapidly increasing as compared to other neighboring food stores that tend to serve a mixed population (Gauri, 2013). The client population is diverse and comprises of students, business people and the working class. Kroger serves more middle and high income families in Lansing and has a loyal client base. The store’s average shopper is relatively similar to the average Kroger retail shopper especially in terms of age. The Grocery attracts relatively younger grocery shoppers as compared to other non-branded groceries.
The type of clientele served is largely composed of relatively younger shoppers who frequent the neighboring fast food restaurants and department stores. The store’s location plays an important role in attracting this category of customers. Kroger’s main competitors are Wal-Mart, Meijer and Whole Food stores. The grocery store has a unique layout that sets it apart from the competition. The arrangement of products within the store has a significant influence on purchasing decision. It was established that people tend to purchase products based on their location and display layout. For instance, it was noted that dairy products have a common display while other products such as dry groceries and green groceries had a common display. The problem at the store was poor quality produce even though it was noted that plans were underway to change suppliers in the near future. Generally, the store is neat and the service can be rated as above average.
3 Price
It was noted that the store operates on a discount pricing strategy and high margin convenience. It was also established that plans for reviewing the current pricing strategy were underway. There was management preference for an integrated pricing strategy so as to attract different categories of clients even though the current pricing will still be retained as it is ideal for retaining the current clientele. The private label products are not extensively stocked at Kroger Grocery Store. The store stocks manufacturer branded products more than private label products. However, it was observed that over 50% of the groceries had private labels as compared to less than 10% of other consumer products. In terms of shelf placement, private label products have...