Reed supermarket case analysis
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Reed supermarket case analysis

572030

  • Undergraduate
  • 349

Short excerpt:

The point to note is that Reed Supermarkets has positioned itself to cater to quality conscious customer rather than cost a conscious customer which makes for eminent business sense given the demographics of Columbus where the number of people earning more than the national average income is high. Further, Reeds scores heavily in the quality index of consumer perceptions (consistently averaging around 8.3) whereas it scores lower in the price index (averaging around 4.3). This is the crucial aspect of the case i.e. Reeds is perceived as a place to get high quality goods but not at an attractive price. Though a combination of high quality and low price is something that is a bit of a paradox, the fact that other retailers have been able to wean away the cost conscious consumers with their

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