The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the United States. Establishments in this industry retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products. There are many suggestions that can be made when it comes to ways to increase revenue. However, despite all the suggestions, the ways to increase profitability comes down to two things. Either the business administrators must find a way to reduce expenses or increase revenue, or find a combination that will accomplish both. To implement any strategy, a ...view middle of the document...
But they are not regular customers, so we will stick to target our existing market. Focusing on increasing the sales in existing markets is well worth the effort, because it’s a business growth strategy that will grow with business. And as we all know, one regular customer is worth ten one-time buyers.
Customers are mostly from 20K to 50K which is low income group; even 30K to 50K is still lower income, because this is per household income
Increasing sales in an existing market is one of the easiest ways to grow the business. The key to successfully increasing the sales in an existing market is to know the customers’ buying histories, both generally and individually. The goal, of course, is to get the existing customers to buy more. The data about what the customers buy, when and how often will help make savvy decisions about stocking and marketing.
The following tables show that more revenue comes from homeowners which represents that our customer base is mostly married people with families and kids, which makes it obvious that supermarket has more female customers (table below), who buy food items for their family. We can see the table below in which we see a uniform distribution of revenue coming from the edible section of the supermarket including produce, dairy etc., as well household items that a family needs in day to day life.
Now that we know what our target market consists of, we should be thinking of various strategically effective methods to increase the revenue.
Advertise the specials: Major chains use regular, weekly advertising newspaper inserts that showcase specials. We can even use display ads placed in sections of a newspaper that cater to our customer, such as the cooking...