⌛ Sobeys Case Study

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Sobeys Case Study

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TheCompany is headed by Empire Corporations EMPIRE that acquires smallsuperstore businesses in Canadian market, to increase the market share, and to grab more sales out of thesame customer. Sobeys operate in staple food like meat, vegetables and some of its private label products to target the particular segment of the market. Sobeys has six different market segments in which it operates through separate offerings. In order to sustain the business, and market share in the chaotic market situation. The company landed in by adopting a disrupted and fast paced strategy, which deteriorated the whole customer value chain, and hence affected the sales of the stores. In doing so, the company at initial discontinues the loyalty programs which agitatedthe client'sexpectation, and spread bad word of mouth against the store.

Also, since many customers had a significant number of loyalty points saved to consume later, themoves to discontinue the program, immediately hurt the customer base, making them spread bad word of mouth and switching to other stores. Leading to low sales and negative brand image. The sudden rise in price significantly criticized the strategy of the Sobeys,and distracted many of the major customersto other conveniencestores. The third strategic issue, Sobeys faced was from Private label customer base. The primary focus of the company is to be widely recognized as the best food retailer in Canada. Sobeys had to recall a number of products over the years. For instance, the Canadian Food Inspection Agency expanded its list of recalled products sold at Sobeys and other grocery stores over Listeria Concern Rosella, These recalls impact on customers confidence as many of them question whether appropriate steps were taken before allowing these products to be available on the shelves of the retailer.

Another weakness to consider is the pricing strategy of Sobeys. It prices its offerings higher than some of its competitors. However, some analysts observe that Sobeys has moved to lower prices in some of its offerings. For instance, it reduced in the last few years its prices of a number of grocery, dairy, frozen, health and beauty products. Sobeys is the second largest grocery retailer in Canada. It has good opportunities to grow further in the country. Further growth can be achieved by many ways e. It has been reported in the media that Ocado will help Sobeys to build a website and mobile service, and manage its delivery system and customer service. Sobeys wanted a way to reach more food shoppers, boost brand awareness and increase sales.

For many grocery retailers, the traditional weekly flyer continues to play a key role in their marketing efforts. Sobeys wanted to understand whether supplementing the traditional weekly flyer with Facebook and Instagram ads could bring more people into stores to purchase grocery items. Sobeys turned to its media agency, UM, to plan and execute the campaign. Together, they created short video ads with simple, easy-to-understand narratives that told people about the best weekly deals. They planned to release 2—3 videos per week over a six-week period.

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