me-mart grocery

8/6/2019 Me-Mart Grocery

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Francois Filamor Project #1 IMC 462 November 15, 2010



me-mart® Green, Sustainable, Innovative and Interactive shopping

experience for you!



Background

! Consumer Spending

! Since the recession, 96% of US consumers considered it important

that new products and services provide them value for the dollar

! Green and Natural Products! 70% are motivated to buy products that are better for the

environment, but only 40% are willing to pay more for those

products.

! 58% consider it important for a new product they purchase to be

“natural.”

Data from Better Home and Garden and Brank Sparks

surveying 50,000 US Shopper - http://bit.ly/btOH1Z



Background

! Health and Wellness

! 68% believe health is their greatest priority

! 80% believe that better food choices prevent illness

! Early Adopters

! 80% are women

! 50% download coupons of the internet

Data from Better Home and Garden and Brank Sparks

surveying 50,000 US Shopper - http://bit.ly/btOH1Z



Background

! Technology

! 38% of US phone users are accessing the internet over their mobile

phones

! 25% in the second quarter of 2010 have smartphones

! 61.6 million out of the

! 4% of Americans online use location-based services (foursquare,

Gowalla, facebook places)

Data from : http://bit.ly/aAAYNK

, http://bit.ly/c8qYKp

http://bit.ly/9AHTWt ,



What we were ?

! Three family owned grocery stores with similar personality traits

merged into one chain serving former, current and future

customers with a singular and new vision…



Where we are ?

! Chicago, IL (Greenest City)

! Typical Store

! 15,000 Square feet ($2 million in annual sales)! 3,500 items (similar to Trader Joes)

! Employment – 50

! Sales and related workers (43%)

! Office and admin (27%)

! Transportation and material moving (10%)

! Management (10%)

Data from justlivegreener.com, fmi.org and bls.gov



Who we are today ?

! A chain of grocery stores called me-mart with one vision of a

green, sustainable, innovative and interactive experience created

for you…



Green & Sustainable -

Inspiration! Modeled after Fresh and Easy

! Saved $3 million dollars in energy related costs

! Modeled after Hannaford Supermarket

! First supermarket in the US to be Platinum LEED certified

! Modeled after Cub Foods

! Educates consumers through signage

Data from http://bit.ly/9EKJz7, httphttp://bit.ly/9p1kCP ://bit.ly/dzwoS2 ,



Green

! Making environmentally friendly choices

! Better your health and save money

! Reuse and recycle! Prevent global warming

! Use less water and energy

Data from Why go green? http://bit.ly/b7V91v



Green - me-mart® ! Energy changes (Reducing costs by up to $3 million a year and

obtaining LEED Platinum Status – 80-110 points)

! More windows to maximize natural sunlight

! Use of solar power

! LED exterior lighting reducing energy consumption by up to 80%

! Sensor lighting, lights up part of the store when someone passes

through and remain dim during the day

!Refrigeration, heating and cooling has zero ozone depletionpotential

! Low VOC Paint used throughout the store

! Reduction of water usage by using ice-free displays and waterless

urinals

Data from http://bit.ly/9EKJz7, httphttp://bit.ly/9p1kCP



Green - me-mart® ! Integration of green initiatives to current grocery stores

! Upgrade store structure

! Save time and money from having to demolish and rebuild new store.

Instead make smaller changes that can be done in a short timeframe soif the store needs to be closed during construction, changes can be

implemented faster

! Change Products and services

! Add alternative products, presented differently to create a better and

cleaner environment for customers! Business operations

! Car sharing and other transportation considerations including officesupplies and management and employee workspace changes



Green – Potential Concerns

! Each store will have different needs and a different set of

problems/issues

! Some stores may be older and may have different dimensions and

might already need to be renovated and revitalized! Similar standards of quality that are feasible for all stores is

necessary to ensure a consistent grocery store chain

! Each store has current customers with specific needs and

demands as well as specific shopping behavior

! Understanding these concerns will ensure that changes will not

affect current customers

! Me-mart is in the business of meeting the needs and demands of the

different shoppers and innovations and interactivity will help

shopping become more efficient and convenient for all shoppers



Sustainability ! Sustainable meat and produce! Food that our bodies were designed to eat! Are healthy for us, the soil, and the animals

! Do not harm the environment! Are humane for both the workers and the animals! Support the local economy instead of large corporations

Data from http://bit.ly/8XxLuL



Sustainable - me-mart® ! Higher quality products offered at lower prices

! Integration of sustainable food and produce from local farmers and

vendors into each store

! Current inventory will also be available but will slowly be replaced

by alternative products so that customers can be educated on the

value of sustainable food sources which will result in smarter

shopping decisions

!Local sources minimizes delivery distances saving on fuel andtransportation costs

! Lower prices are offered as a result of Green Initiatives

! Will not affect prices from local farmers, producers and vendors



Sustainable – Potential

Concerns

! Local Farmers and Vendors resistance

! May not want to change methods of farming or finding alternative

products and packaging

! May find the cost of change to be to high to make a profit

! Give Incentives for current local farmers and vendors to practice more

sustainable methods

! Provide resources and subsidize new methods such as machinery



Sustainable – Potential

Concerns

! Elimination of some farmers and vendors

! Although non-sustainable products will be sold at stores, these will

slowly be replaced by alternative products

! To lower costs transportation and delivery costs and to maintain a

local approach, previous farmers and vendors may have to be

dropped causing layoffs

! New needs and demands of current and new customers

! Create an understanding of the need for sustainable products andprovide a comparable higher quality product at a lower cost



Innovations and Interactivity

! Create a new store concept for the grocery chain for US grocery

shoppers

! They are more technologically savvy and make smarter decisions

! Want a convenient and more efficient shopping experience

! Use social media and other communication tools

! In keeping with the Green and sustainable products and services, the

store also needs to be updated



Innovative and Interactive -

me-mart® ! GPS-enabled store

! Use an application that can be downloaded onto mobile devices

that can be customized to the customer and can help them navigate

through the store and tell them where everything is located! Provide information on sales and promotions

! Provides the customer a route that is efficient or allows them to tour thestore

! A store that works with a customers social media savvy and

technologically advanced mobile devices! GPS can be activated automatically and can sync to various social

networks

! Phone will be prompted to check-in on foursquare or other

location-based social media networks




me-mart® ! Digitized LED Screens

! State of the art low energy efficient LED screens

! Messages, deals and other related information can be updated

throughout the day saving paper and other materials! State of the art interactive inventory system

! Prevents customers from forgetting ingredients and the store from

running out of items

! Customers can view a floor plan of the entire store online and can take

an interactive tour of all of the merchandise

! They no longer need to leave the house and worry about what they want, because we will tell them if we have it!




me-mart® ! State of the art checklist planning system called checkit

! Download the application on various app stores or use the online

version on the grocery website

! Instead of writing down a grocery check-list on paper, customers caninput their list on the new checkit system which will provide a QR code which can be printed, synced or saved onto a mobile device with in-store

directions to save time and give the customer the best route within thestore to find all of the items on the checklist

! Checkit also learns to understand the customers like and provides

them with inventory data to make future shopping trips easier and

more convenient

! Customers can also find ingredients and items based on the dish

they are trying to make by typing in the dish which will list

everything they need to purchase and where to find it




me-mart® ! State of the art checkout system

! When entering the store customers can purchase reusable and

recycled bags with sensor technology. When customers are ready to

checkout, they can place their bag(s) at the self-checkout counter andit will scan all of the items in the bag

! No need to scan each item or put in a customers store card for

discounts and savings. Their information inputted into the system

as well as the sensors in the reusable bag calculates all of the

necessary data! A total appears and the customers can pay at their convenience



Innovative and Interactive –

Potential Problems

! Customer resistance and confusion

! Some current customers may not be technologically savvy and may

not understand new innovations and interactivity

! All current customers will be given information through emailnewsletters/direct mail before grocery stores re-open to understand thebenefits to them and how it will make their shopping experience more

efficient and convenient

! New customers will be able to obtain similar information and will have

employees ready to help them use all of the various benefits to them

! All customers will be able to create their own profiles and can createthem at the store to better serve their needs and demands

! The goal of the store is to create a store for you, so it should be easy for

everyone to understand




Potential Problems

! Traditional customers

! Some customers may not have access to social media saavy/

technological mobile devices or understand new innovations and

interactivity ! These customers can obtain brochures on new technologies and

information about green and sustainability

! All stores will have traditional store formats such as cashiers, baggers,

self-checkout lines with the same technology and experience that they had with previous stores

! One major difference is store layout which they can obtain a map of which

helps guide them through the store

• Even if a customer doesn’t use the interactive and innovative features they are

still shopping in a better environment with higher quality products and services




Potential Problems! Technology

! With the various new innovations and interactivity, there may betechnical problems

! Store is capable of reverting to the traditional method if needed as there

are cashiers and baggers at hand. There are also brochures and relatedinformation and customers can also print out their checkit lists at thestore if their phones aren’t syncing or working

! Quality and Standards

! Management and employees will have to work harder to keep up

with inventory and store layouts as well as making sure that Greeninitiatives and sustainable products are monitored

! Workforce will have programs and systems to help them with inventory and making sure everything is managed and taken care of with the highstandards.

! Workforce is given incentives and rewards for tasks and have open

communication with management if there are problems or concerns



Constituents

Customers

Local Farmers/Local Producers

Shareholders

Competition

Foundations and

Charities

Green BuildingCertification

Institute Vendors

Community

Banks and OtherBusinesses

Management

Employees

Unions



Constituents Analysis

! Constituent Groups

! The various groups the chain (should or could) communicate with

! Each group can be broken down further into former, current and

future constituents. Although the most important are current

constituents, in some cases regaining former constituents and

attracting future constituents may be considered as well

! Each group exists to provide ROI or brand integrity/value

! Although each constituent group has a different value to the

company, they all provide importance and are interconnected to oneanother in one way or another to meet the overall objectives and

goals of the business

! Each group provides analysis and recommendations to the business

to grow and change to meet needs and demands of the most

important constituent, customers!



Constituents Analysis

! Responsibilities of Grocery Chain

! Providing green and sustainable products and services to customers

while enhancing their shopping experiences providing efficiency

and convenience.

! Creating and maintaining strong relationships and working with

current constituent groups, providing incentives to meet new

standards and quality



Constituents - Breakdown

Group Former Current Future

Customers X X X Management X X

Employees X X

Shareholders X X

Vendors X X

Local Farmers andproducers

X X

Unions X X

Competition X


X

Community X

Foundations/Charities X X

Green Building

Certification

Institution/Inspectors

X



Constituents – Value

Value Customers

Management

Employees

Shareholders

Vendors

LocalFarmers and producers

Unions

Competition

Banks and Other Businesses

Community

Foundations and Charity

Green Building Certification Institution/

Inspectors



Constituents – Relationship and Goals

Group Relationship Assessment

Customers

Doesn’t work with any constituent group directly,

although communicates with

management and employees.

It is important to monitor needsand demands constantly to

make important decisions to

enhance and benefit customers

Management Works with all constituent

groups

Manages all constituent groups

and meets the needs and

demands of customers andshareholders

EmployeesCommunicates with

management and customers

Employees are direct line to

customers and must maintain

high standards within the

grocery store

Shareholders Communicates withmanagement

Invested in customer satisfactionand overall business success

Vendors, local farmers and

producers

Works directly with

management

Provide high quality products

based on consumer needs and

demands. Goal of sustainability

and incentives for group to

commit to sustainable products



Group Relationship Assessment

Unions

Works with employees,

management, vendors, local

farmers and producers

Creates standards and satisfies

needs and demands for

constituent groups that it works

for

CompetitionMay influence customers,

business objectives and goals

Important to monitor

competing grocery stores to

meet new standards

Banks and Other BusinessesCommunicates with customers

and business

Important to enhance customer

experience and connections to

community by offering more

services such as cash backs ordeals

Community Affected by grocery store

Important to monitor concerns

and questions and retain a

positive relationship

Foundations/CharitiesConnected to business

objectives and goals

Association with various causes

and provide support to create a

positive image in the

community and to customers

Green Building Certification


Communicates with

management and is important

to store business objectives and

goals

Make sure to maintain LEED

status and continue to become

more eco-friendly



Mar Com Tools Assessment

Tool Positive Factors Negative FactorsGeneral

Assessment

Advertising

(ADV)

Demonstrates productattributes, portrays usage

imagery, consumer

benefit and brandpersonality

High cost, clutter,

opportunity to “tune out”

Although it may beexpensive, it creates the

most impressions/TRPS

Public Relations(PR)

Customized, able to buildstrong relationships,

control message

May not reach allconsumers, can’t control

all content, may create

negative impact

Although some contentmay be hard to control,

such as feedback andreaction, it is a good tool

to promote and producenews quickly!

Sales Promotion(PROMO)

Easy to understand,strong consumer

acceptance, physicalreminder to buy

Clutter, coupon abuse,cost of distribution can

be high

It might be costly todistribute, but is the best

method for measurementand trial



Marcom Tools Assessment

Tool Positive Factors Negative FactorsGeneral

Assessment

Website(WEB)

Interactivity, tracking,

content can be

controlled

Expensive to maintain,

some content may not be

controlled, has to be

updated regularly

Although expensive tomaintain, every company

needs it to give the

customer a place to find

information on their

own time

Direct Mail(DM)

Can target specific

customers and content

can be controlled and

customized

Expensive, time

consuming, clutter

Not the best solution formost companies but

some people still prefer

direct mails, especially if

they are not online!

Social Media(SM)

Reach, cost-efficient,

content can be

controlled, shared and

modified

May not understand

medium, difficult to

measure ROI

Most effective mode of

communication andinformation that all

companies should use

but need to understand

in order to use effectively

and efficiently



Mar Com Tools – Preliminary Usage

Group ADV PR PROMO WEB DM SM

Customers X X X X X X

Management X X X

Employees X X X

Shareholders X X X X

Vendors X X X X

Local Farmers and

producers X X

X

X X

Unions X X

Competition


X X X X

Community X X X X X X

Foundations/Charities

X X X X

Green BuildingCertification


X X



Mar Com Aims/Goals

! Customers and Community

! Engage in advertising/social media/sales promotions/website/direct

mail/PR initiatives and obtain new customers and retain them

! For existing and previous customers, regain and retain them by emphasizing changes that will benefit them while creating loyalists

through

! New Innovations and interactive shopping experience

! Green and sustainable products

! Social media and technology to connect to customers

! Community

! Understands the value of the chain in the local area as well as what thechain can do for the community. Active participant of the chain while

creating a stronger and emotional relationship long-term



Mar Com Aims/Goals

! Management and Employees

! Engage in website/social media/PR initiatives to provide

information on company objectives as well as related information

! Emphasize a workplace that produces more outlets for

communication among employees and management while creating a

more eco-friendly environment for the workforce to create more

retention of employees and management

! Information about grocery stores within the chain and rewards and

incentives for employees and management to do better



Mar Com Aims/Goals

! Shareholders

! Engage in website/social media/direct mail/ PR initiatives to

provide information and updates on what is going on with the

grocery chain

! Accessibility to management and communication channels

! Emphasize important highlights of the grocery chain

! New Innovations and interactive shopping experience

!Green and sustainable products! Social media and technology to connect to customers



Mar Com Aims/Goals

! Vendors

! Engage in promotions/website/social media/direct mail/ PR

initiatives to provide incentives and benefits to

! Provide high quality products in a timely manner as well as a wide

variety for customers to choose from at an affordable price that meetsboth the chain and the vendors needs

! Don’t alienate current vendors, or vendor who don’t necessarily meetGreen and sustainable standards but decide on what products and

services to continue to provide! However, some products may be cashcows and will continue to besold in each grocery store based on needs and demands



Mar Com Aims/Goals

! Local farmers and producers

! Engage in promotions/website/social media/direct mail/ PR

initiatives to provide incentives and benefits to

! Continue to produce high quality sustainable produce/meat that meats

sustainable standards

! Don’t alienate current farmers and producers but attempt to influence

them to use more sustainable methods. Customers want better meatsand produce, so farmers and producers will have to use better methods

to meet these needs! Create incentives for current farmers and producers who do notpractice sustainable methods to start using it or subsidize needs to

do so



Mar Com Aims/Goals

! Unions

! Engage in direct mail and PR initiatives to provide information

regarding workforce

! Treatment as well as benefits and incentives of employees and

constituents that unions work for

! Creating strong ties with unions



Mar Com Aims/Goals

! Banks and other businesses

! Engage in social media/sales promotions/website/direct mail/PR

initiatives to create relationships and partnerships to

! Pass on to customers

! Banks could give cashback to customers as incentives to use theircards for purchases

! Benefits, prizes and rewards

! For making frequent purchases, use of social media such as

foursquare and other vehicles to influence customers

! Other incentives, benefits, savings for consumers



Mar Com Aims/Goals

! Foundations and Charities

! Engage in social media/sales promotions/website/direct mail/PR

initiatives to create relationships and partnerships to

! Understand that the chain is there for them. Foundations and charities

that share the same vision of the chain of a Green and sustainablefuture, working with them and providing services to help both the chain

and the foundation/charity

! Create a presence in the foundation and charity

! Support their causes

! As well as causes important to customers



Mar Com Aims/Goals

! Green Building Certification Institution/Inspectors

! Engage in website and PR initiatives to communicate new initiatives

and innovations instated into each grocery and

! Make sure to maintain LEED platinum status and provide a model for

other grocery stores to follow and maintain a high quality and standardall the time

! Continue to understand new requirements as well as ways to stay Greenand eco-friendly



! Green, Sustainable, Innovative and Interactiveshopping experience for you!

me-mart grocery

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