Reed’s Case Analysis

Collins to devise a optimal marketing plan to accomplish that goal. Reed Supermarket's CEO has set their market share goal to 16%, 2 points up from last year. Reed doesn't plan to add any additional stores in Columbus, so Collins must find an alternative method to reach this market share in a price sensitive community. I completely agree with this goal because it one of the major methods to increase revenue growth for the company.Reed needs to continue its dominance in the Columbus market and fight against dollar stores and super centers and will be able to do so by Increasing their market share over time. The estimated market share for Reed in Columbus in 2010 was 14%. Reed had held a 15% market share five years earlier. The reason for this decrease in market share â€Å"attributed to the peak in encroachments by superstores and warehouse stores. Along with the economy and the increase in variety in options for consumers to choose from when shopping, Reed saw a slight hit In their market share. Reed supermarket Is slowly earning back their market and Is aiming to hit 16% by 2011. I recommend that Reed should differentiate their offerings in the Columbus market. Reed has always prided themselves on their large variety of products they can offer their customers. It is pertinent for Reed to follow their core business model and mission to retain their current core customer market.Reed's goal is to increase market share by 2% by 2011 and will be able to achieve this by Increasing their differentiation of offerings. This will in turn keep bringing their customers that make up the 14% market share they currently own and eventually bring in a new way of customers to achieve that extra 2% market share. An increase in market share will increase profitability for the company assuming all else remains the same and fixed costs don't increase. $5. 99 and 22. 7% $5. 34 and 20. 23% $0. 65 and 2. 7% On a financial standpoint, Collins should not continue the dollar specials ca mpaign because It Is lowering Reed's contribution margins. In the long run this will lower the company's profits and will reduce Reed's overall growth. On a marketing standpoint, the contribution margin loss is low enough that it can be recovered by increase sales or Justified as a marketing expense. Overall I believe that its more beneficial for Collins to continue the dollar specials campaign because of the marketing benefits and the minimal financial losses.Reed's Case Analysis By stingrays against dollar stores and super centers and will be able to do so by increasing their choose from when shopping, Reed saw a slight hit in their market share. Reed supermarket is slowly earning back their market and is aiming to hit 16% by 2011. Market share by 2% by 2011 and will be able to achieve this by increasing their costs don't increase. Because it is lowering Reed's contribution margins. In the long run this will lower the