Case Study: Retail – Neighborhood Grocery

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Case Study: Retail – Neighborhood Grocery

Case 1: Repositioning a Neighborhood Grocery Store Chain

Before Hiring Ethridge

Management of a new and innovative type of grocery store, a “Neighborhood Grocery Store,” wanted to learn how to get more people from the neighborhood that surrounded the store to shop there rather than at the larger supermarkets that were further away. Thus, management asked Ethridge & Associates, L.L.C. to conduct marketing research to help them expand their local business and begin to assess the opportunity for expansion.

After Hiring Ethridge

We conducted a series of focus groups among grocery store shoppers in the neighborhood, with the groups segmented by customers and non-customers of the store. We probed grocery store shopping preferences, why people choose one grocery store over another, this grocery store’s brand image relative to competing stores, specific product mixes, and the perceived price/value of product lines carried by the store compared to competition. We also tested specific advertising and promotional concepts as well as probing media behavior and preferences to determine the best way to communicate with prospective customers.

We analyzed the results using our innovative and proprietary Motivational Linguistics Analysis® to identify motivations and themes that needed to be address in both merchandising and marketing. Because the Motivational Linguistics Analysis® quantifies verbatim comments, we were able to use multivariate statistical analysis to discover how the brand was positioned relative to competing brands on the motivating attributes. As a result, we were able to recommend how to better position the brand relative to competition to take advantage of the store’s strengths and opportunities in the market. We also identified and recommended specific changes that the store needed to make in product mix, pricing and merchandising, as well as what message and media to use to generate more business and build brand loyalty. The store has implemented our recommendations and is enjoying a higher level of revenue and profitability as a result.

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