NewYorker Supermarket: A Case Study on Sales, Strategies & Growth

This case study examines the strategies employed by NewYorker, a small-scale supermarket in a New York City suburb, to boost sales and revenue in the face of increasing competition. The solution involves a five-stage process: entry, diagnosis, formulation of solutions, implementation and review of promotional strategies, and intervention. The diagnosis identifies increasing competition, customer poaching, and falling revenue as key problems. Solutions include offering product bundles, providing discounts to loyal customers, online promotion, participation in trade fairs, and expanding the product line. Implementation focuses on an aggressive promotional mix, advertising, and customer loyalty programs. The review process involves monitoring profits, customer visits, employee turnover, and skills improvement. Interventions include acquiring smaller supermarkets and appointing a famous personality to endorse the brand. The case study references various academic sources to support its analysis and recommendations.

Boosting sales at
NewYorker-The
supermarket

Introduction
 NewYorker, small scale super market in New York City suburb.
 Offers food products, consumer products, electronic goods and
apparel products.
 Serves middle and lower class customer segments.
 Earning steady profits.
 Facing increasing competition from new super markets in the area.
 Needs to increase sales and revenue generation.
 Obtains external consultancy advices.

Stage 1: Entry: Establishing agreements with
customers/clients on purchase of products
 NewYorker should enter into contracts with manufacturers of
electronic goods it sells and customers.
 Customers should exclusively be able to avail aftersales services at
the counter according to contract

Establishing agreements with customers/clients
on purchase of products contd…
 NewYorker would be able to interact more with customers and sell
more products
 Generate more revenue.

Stage 2: Diagnosis Problems faced
by NewYorker
 Increasing competition in the suburban area due new super markets.
 Poaching of customers by competitors
 Fall in revenue.
 Need-Increase in sales and revenue generation

Problem 1: Increasing competition in
the suburban area due new super
markets Offering product bundles.
 Providing more products at subsidized rates
 Advertising products on newspapers and magazines.

Problem 2: Poaching of customers
by competitors
 Giving discounts and offers to old customers
 Serve its customers through outlets, official websites and mobile
apps.

Fall in revenue
 Online promotion of products
 Promotion in magazines and newspapers.
 Participation in trade fairs.
 Expand product line
 Strengthen competitive advantage and boost sales.

Stage 3: Formulate of solution-
Aggressive promotional mix
 Marketing department form strategies
 Presents strategies before the apex management.
 Apex management hold meetings with other departments
 Finance department allocates funds after approval from top
management.

Stage 4: Implementation and review
of the promotional strategies
 Promote goods and services.
 Advertisement of products in leading newspapers and magazines.
 Advertisements of assorted fresh stock on official websites and
mobile apps.
 Loyal customers should get discounts subject to certain conditions.
 New customers should get tokens in key rings and small gifts.

Implementation and review of the
promotional strategies contd
 The apex management should review profits.
 Customer visit numbers in the stores.
 Customer visits in the official websites, apps.
 Number of visits turning into purchases.
 Reduction in employee turnover.
 Improvement in employee skills.
 Intervention on unsatisfactory results

Outcomes of the review and
intervention
 Review outcomes and measure actual performances.
 Take steps if performance fall below 5 percent.

Stage 5: Intervention 1: Acquisition
of smaller super market
 Increase in asset value of NewYorker
 Get access to customer base and resources of smaller super market.
 Advertise its financial power
 Win back some of its own customers
 Poach some customers from competitors.

Intervention 2: Appointing famous
personality to endorse its brand
 Strengthen brand power
 Improve positioning in the market.
 Differentiation from other supermarkets.

References
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Constant Market Share (CMS) Model to Assess Brazil Nut Market Competitiveness. Journal of
Agricultural Science, 9(8), 174.
 Baker, L. C., Bundorf, M. K., & Kessler, D. P. (2014). Vertical integration: hospital ownership of
physician practices is associated with higher prices and spending. Health Affairs, 33(5), 756-
763.
 Boulanger, P., Dudu, H., Ferrari, E., M'barek, R., & Philippidis, G. (2017). 2030 European
agricultural policy: A new CAP at a crossroad between market competitiveness and
sustainability.
 Diallo, A., & Tomek, G. (2015). The interpretation of HH-Index output value when used as
Mobile Market Competitiveness Indicator. International Journal of Business and
Management, 10(12), 48.
 Đurđević, D., Radnović, B., & Ilić, M. (2017). Organization of marketing logistics in the function
of market competitiveness. Poslovna ekonomija, 11(1), 165-183.
 Luo, X., & Du, S. (2015). Exploring the relationship between corporate social responsibility and
firm innovation. Marketing Letters, 26(4), 703-714.

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