HARPS H O M E T O W N F R E S H NGA Case Competition 2017 C H I S T O P H E R L A Z Z A R O T T I
2 Agenda Overview Of Harps Food Stores Case Briefing Strategies & Tactics Budget & Implementation Schedule
3 The Harps Operation • Est. 1930 • Employee Owned • Over $690M in Sales • Mission is Centered Around Value "Our History." Harps Foods - History. Harps Food Stores, 2017. Web. 06 Feb. 2017.
4 Harps Target Areas How can Harps Food Stores increase sales by Millennial Consumers? Attract Millennials Grow Basket Size Increase Frequency of Visits
5 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
6 Millennial Presence and Opportunity 27% 28% 28% 27% Nielsen Millennial Report, Feb 2014; E.Repbulic – State by State Look
7 Potential Opportunity for Basket Size Growth $52 $26 Harps Current Basket Size Millennial Average Basket Size Nielsen Millennial Report, Feb 2014
8 Competitive Analysis Competitive Pricing Interactive Store App Convenient Format Fresh Food Selections Loyalty Card Program Corporate Social Responsibility Mintel - The US Millennial Food Shopper 2015; FMI – U.S. Grocery Shopping Trends 2016
9 Enhance Current Actions to Gain Millennials
10 Strategic Recommendations 1 2 3 Mobile Harps Hometown App Express Advantage Connect Enhance Share
11 Millennial Technology Usage 92% of Millennials Own a Smartphone 81% of Millennials use Mobile Devices while shopping Retail Decisions – Millennials at the Mall; Forbes Magazine – Fifty Essential Mobile Marketing Facts
12 Millennial Smartphone Usage Millennials are most likely to use their smartphones to: 66% 59% 56% 55% Look Up Use Digital Create Shopping Check Weekly Recipes Coupons Lists Store Sales US Grocery Shopper Trends, 2015, FMI; Mintel – The US Millennial Food Shopper
13 Harps Current Website Harps Food Stores Website
14 Strategy #1: CONNECT #1 Enhance #2 Support a Implement an Shopping Loyalty interactive mobile app Experience Program to leverage Millennial usage of smartphone technology. #3 Promote App Download & Usage
15 Welcome, Welcome, Welcome, Thank You For Using Your HARPS Rewards Welcome, Welcome, Welcome, Welcome, Thank You For Choosing HARPS! Thank You For Using Your HARPS Rewards NGA NGA NGA NGA NGA NGA NGA Card! Card! When its in your cart, When its in your cart, My Account Helpful HARPS Recipes! check off your list! check off your list! Apples Apples My HARPS Shopping List Type to search for the perfect recipe to prepare! Quantity: 3 Quantity: 3 Type: Red Type: Red Helpful HARPS Recipes See our recipe for Apple Pie! See our recipe for Apple Pie! My Cookbook HARPS Savings (Coupons) 2% Milk Community Feedback 2% Milk Weekly Recipes $20,000 Quantity: 1 Quantity: 1 Size: Gallon Gas Rewards Size: Gallon Check out our sale on cereal! Check out our sale on cereal! Video Recipes My HARPS Pharmacy HARPS Social Media Bread Bread Meals Made Easy Welcome, Welcome, Quantity: 1 HARPS for Hands Quantity: 1 Type: White Type: White NGA! NGA! Do you need butter as well? Do you need butter as well? HARPS Recipe of the Day! Eggs Eggs Quantity: 2 Quantity: 2 Type: Organic Type: Organic Home Store: Home State: Home Store: Home State: See our recipe for Apple Pie! See our recipe for Apple Pie! #1738 Arkansas #1738 Arkansas
16 Strategic Recommendations 1 2 3 Mobile Harps Hometown App Express Advantage Connect Enhance Share
17 Convenience as a Driver for Millennials
18 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) 100% 95% 91% 90% 90% 84% 85% 77% 80% 75% 70% 65% 60% 60% 55% 50% WWII/Swing Baby Boomers Generation X Millennials iGeneration Mintel – Convenience Store Food Service – March 2016
19 Millennial Convenience Rationale What attracts Millennials to C-Stores? 69% 66% 34% Purchase Food and Drinks Buy Gasoline Buy Fresh Prepared Food Mintel – Convenience Store Food Service – March 2016
20 Current Infrastructure
21 Strategy #2: ENHANCE #1 Increase #2 Offer More Enhance Awareness Fresh-Prep Harps Express C-Space with Storefront Options Signage to appeal to Millennial preferences #3 Promote Relaunch of Harps Express
22 Millennial Value of Freshness 84% 41% 48% Freshness Influences Pay More for Profit Purchase Freshness Margin Gordon Food Service – Give Millennials What They Crave; Nielsen Millennial Report
23 Millennials Expectation of Fresh 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’
25 Strategic Recommendations 1 2 3 Mobile Harps Hometown App Express Advantage Connect Enhance Share
26 Millennial Interest in Social Responsibility Millennials seek companies that support social causes: 90% 75% 66% 58% 57% Would Switch Brands Find Importance Use Social Media Believe Where They Have To Ones That Are In Companies To Engage Grocery Shop Volunteered Associated Giving Back Around CSR Reflects In The Last Year With A Cause To Society Their Personal Values Mintel – US Millennials Twice as Likely as Non-Millennials to Distrust Large Food Manufacturers – 2015; Mintel – The US Millennial Food Shopper
27 Strategy #3: SHARE 2. Hire 1. “Feature Leverage Harps Hometown Community Your Fresh image in order to Brand Farmer” Ambassadors promote new community activities and connections 3. “Harps to Hands”
28 Harps to Hands Program 4.8% of Grocery Produce Sales to HANDS Agriculture – Estimated Fresh Produce Shrink and Food Loss in US Supermarkets – 2015; Food Donation Connection Website
29 Attractiveness of Harps to Hands 1 2 3 Millennial Hometown Financial Alignment Happiness Savings Harps Food Stores Company Website; Harps Given Financials; Agriculture – Estimated Fresh Produce Shrink and Food Loss in US Supermarkets - 2015
30 Budget Strategy Investment Fixed Cost Connect App Development $20,000 v 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
31 Implementation Schedule 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
32 Overview Connect Enhance Share Grow Basket Size Increase Frequency of Visits Attract Millennials
Thank You
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