Marsh Supermarkets Inc.

case
BY: Makarand A. Takale Nikhil Bansal Dhruv Samel Pranit Upadhyay Manmohan Bora Asif Anwar

IIM ROHTAK

Group 10: Q1) What suggestions you would give Marsh? Why? Q2) How could Marsh maintain its profitability? What kind of service/assortment mix would be appropriate?

One of the major players in Indianapolis Market share: 30% No of stores in Indianapolis: 28 Positioning: service/ quality Targeted segment: Middle and upper-middleclass consumers

 Kroger
Market share in Indianapolis: 30% No of stores in Indianapolis: 27 Positioning: similar to Marsh but emphasis on price Targeted segment: Middle-class

 Valus Cub Food

Market share: 18% No of stores in Indianapolis: 7 Positioning: Price format stores

Two independent grocery chains

Market share: 8%

Inner-city operator + Safeway

Market share: 6%

Entry of Meijer, Inc. in Indianpolis market Initially 4 stores and plan of 3 more Expected market share: 15% Targeted segment: price driven, service oriented shoppers Positioning: Community-minded retailer Focus on service: aggressive hospitality, customer interaction, customer service center, more no of check out lanes, Meijer 1 card Strategy: Price competition, focus on service

 Meijer @ Dayton and Columbus markets in 1991 Cub foods again Even Marsh because of Meijers reputation for: product selection, quality products, customer service, low price

Advantage of distribution centers in proximity Spend more on advertising Use of subliminal stimuli in shop Involve customers in community service

 Focus on electronic procurement and logistics systems to cut down costs Automatic inventory replenishment system Electronic communication of purchase order

 Value added services

365 x 24 x 7 Electronic transaction systems Marsh cards

Effective use of database to decide assortment Customer research