HARPS H O M E T O W N F R E S H NGA Case Competition 2017 C H I - - PowerPoint PPT Presentation

C H I S T O P H E R L A Z Z A R O T T I

HARPS

NGA Case Competition 2017

H O M E T O W N F R E S H

Agenda

Overview Of Harps Food Stores Budget & Implementation Schedule Case Briefing Strategies & Tactics

2

The Harps Operation

• Est. 1930
• Employee Owned
• Over $690M in Sales
• Mission is Centered

Around Value

3

"Our History." Harps Foods - History. Harps Food Stores, 2017. Web. 06 Feb. 2017.

Harps Target Areas

How can Harps Food Stores increase sales by Millennial Consumers?

Attract Millennials Increase Frequency of Visits Grow Basket Size

4

Consulted Resources

• Webinar with Harps Food Stores
• Food Industry Reports, Market

Research, & White Papers

• Interviews w/ Food Retail Executives
• Independent Grocery Retailers
• Convenience Stores
• Drug Stores

5

Millennial Presence and Opportunity

6

27% 28% 28% 27%

Nielsen Millennial Report, Feb 2014; E.Repbulic – State by State Look

Potential Opportunity for Basket Size Growth

$52

$26

Millennial Average Basket Size Harps Current Basket Size

7

Nielsen Millennial Report, Feb 2014

Competitive Pricing Interactive Store App Convenient Format Fresh Food Selections Loyalty Card Program Corporate Social Responsibility

Competitive Analysis

8

Mintel - The US Millennial Food Shopper 2015; FMI – U.S. Grocery Shopping Trends 2016

Enhance Current Actions to Gain Millennials

9

Strategic Recommendations

Mobile App Harps Express Hometown Advantage

10

1 2 3

Connect Enhance Share

Millennial Technology Usage

92% of Millennials Own a

Smartphone

81% of Millennials use

Mobile Devices while shopping

11

Retail Decisions – Millennials at the Mall; Forbes Magazine – Fifty Essential Mobile Marketing Facts

Millennial Smartphone Usage

Millennials are most likely to use their smartphones to:

66%

Look Up Recipes

59%

Use Digital Coupons

56%

Create Shopping Lists

55%

Check Weekly Store Sales

12

US Grocery Shopper Trends, 2015, FMI; Mintel – The US Millennial Food Shopper

Harps Current Website

13

Harps Food Stores Website

Strategy #1: CONNECT

Implement an interactive mobile app to leverage Millennial usage

• f smartphone technology.

#1 Enhance Shopping Experience #2 Support a Loyalty Program #3 Promote App Download & Usage

14

Thank You For Choosing HARPS!

My Account My HARPS Shopping List Helpful HARPS Recipes HARPS Savings (Coupons) Community Feedback Gas Rewards My HARPS Pharmacy HARPS Social Media HARPS for Hands

Welcome,

NGA!

Home Store: #1738 Home State: Arkansas

Welcome,

NGA!

Home Store: #1738 Home State: Arkansas

Apples

2% Milk

Bread

Eggs

Apples

2% Milk

Bread

Eggs

Helpful HARPS Recipes!

My Cookbook Weekly Recipes Video Recipes Meals Made Easy

HARPS Recipe of the Day!

15

$20,000

Strategic Recommendations

Mobile App Harps Express Hometown Advantage

16

1 2 3

Connect Enhance Share

Convenience as a Driver for Millennials

17

Millennials are Frequent Visitors of C-Stores

“In the last 3 months, how often have you visited any of the following types of convenience stores?” (Any c-store type)

60% 77% 84% 90% 91% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% WWII/Swing Baby Boomers Generation X Millennials iGeneration

18

Mintel – Convenience Store Food Service – March 2016

Millennial Convenience Rationale

What attracts Millennials to C-Stores?

69%

Purchase Food and Drinks

66%

Buy Gasoline

34%

Buy Fresh Prepared Food

19

Mintel – Convenience Store Food Service – March 2016

Current Infrastructure

20

Strategy #2: ENHANCE

Enhance Harps Express C-Space to appeal to Millennial preferences

#2 Offer More Fresh-Prep Options #3 Promote Relaunch of Harps Express

21

#1 Increase Awareness with Storefront Signage

Millennial Value of Freshness

84%

Freshness Influences Purchase

41%

Pay More for Freshness

22

48%

Profit Margin

Gordon Food Service – Give Millennials What They Crave; Nielsen Millennial Report

Millennials Expectation of Fresh

23

Trendy Transparent Nutritious

Global Food Forums – 2016 Food Trends

24

A New Line With Your Health And Time in Mind

NPD Group – Millennials Are Driving The Rise of The ‘Grocerant’

Strategic Recommendations

Mobile App Harps Express Hometown Advantage

25

1 2 3

Connect Enhance Share

Millennial Interest in Social Responsibility

Millennials seek companies that support social causes:

90%

Would Switch Brands To Ones That Are Associated With A Cause

75%

Find Importance In Companies Giving Back To Society

66%

Use Social Media To Engage Around CSR

58%

Believe Where They Grocery Shop Reflects Their Personal Values

57%

Have Volunteered In The Last Year

26

Mintel – US Millennials Twice as Likely as Non-Millennials to Distrust Large Food Manufacturers – 2015; Mintel – The US Millennial Food Shopper

Strategy #3: SHARE

Leverage Harps Hometown Fresh image in order to promote new community activities and connections

• 1. “Feature

Your Farmer”

• 2. Hire

Community Brand Ambassadors

• 3. “Harps to Hands”

27

Harps to Hands Program

4.8% of Grocery Produce Sales

28

toHANDS

Agriculture – Estimated Fresh Produce Shrink and Food Loss in US Supermarkets – 2015; Food Donation Connection Website

Attractiveness of Harps to Hands

29

1 2 3

Millennial Alignment Hometown Happiness Financial Savings

Harps Food Stores Company Website; Harps Given Financials; Agriculture – Estimated Fresh Produce Shrink and Food Loss in US Supermarkets - 2015

Budget

30

Strategy Investment Fixed Cost Connect App Development $20,000 Enhance Store Signage $19,800 Total Fixed Cost $39,800 Strategy Investment Variable Cost Enhance Harps Fresh Express Branding $5,000 Share Community Brand Ambassadors $5,200 Total Variable Cost $10,200 Total Cost for Year 1 $50,000

v

Implementation Schedule

31

Harps Food Stores Implementation Schedule 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Strategy 1: Connect Application Development Promotion of App and Download Usage Strategy 2: Enhance Harps Express Storefront Signage Fresh Prep Options Promotion of Relaunch of Harps Express Strategy 3: Share Feature Your Farmer Campaign Community Brand Ambassadors Harps to Hands Program

Overview

32

Attract Millennials Increase Frequency of Visits Grow Basket Size

Connect Enhance Share

Thank You