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WelcomeTABLE OF CONTENTS
1. ABOUT STORES
1.1 Stores Mission and Core Values
2. PRODUCT
2.1 Assortment of Products: Milk, Coffee and Water
3. PRICE
3.1 Comparison between Organic and Non-Organic Products with Recommendation based on Price
3.2 Price Average Comparison between 3 stores on: Milk, Coffee and Water
4. LOCATION
4.1 Surrounding Stores
4.2 Store Layout
4.3 Atmospherics
4.4 Accessibility (Train, Car, CTA) and Parking
5. PROMOTION
5.1 Geographic Location
5.2 Online Service Offering
5.3 Sample Tasting in the Store
5.4 Traditional Advertising
5.5 Loyalty Programs
6. COMPETITION
6.1 Who Are Their Competitors
6.2 Strategic Positioning
7. CUSTOMER SERVICE
7.1 Services Offered (Gift Baskets, Personal Shopping, Catering)
7.2 Employees on the sales floor
7.3 Credit/Debit Card Acceptance
7.4 Return Policy
8. DEMOGRAPHICS
8.1 Who are their customers: Age, Income, Gender, Race
1. ABOUT STORES
1.1 Stores Mission and Core Values
ALDI
Operating over 1,000 stores in the U.S. for over 30 years, Aldi has become a highly recognized name in the grocery business. Being ranked 25th in U.S. grocery chains in terms of gross sales is a great accomplishment for the company since it conducts business on a much smaller scale in comparison to Your New Wiki!
Getting Started
Clicksome of the other local and national grocery chains. But Aldi has a different take on its’ business model and solely focuses on providing the edit button abovehighest savings on groceries: “At ALDI, our philosophy is also the foundation for our less-is-more approach to putgrocery retailing. Everything we do, from selecting suppliers to scouting locations to building and operating stores, facilitates savings substantial enough to impact your own contentevery-day living” (aldifoods.com).
JEWEL
From www.jewelosco.com:
Vision
Albertsons is a unified team of energized associates obsessed with creating the world's number one food and drug retailer in the areas of market value, scale, profitability, customer service and associate satisfaction.
Mission
Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision…Albertsons and its family of stores have jumped on the fast track...to become the supermarket and drug store powerhouse of the 21st century…And to achieve our vision of being the world's number one food and drug retailer…In other words, we needed an action plan, a mission, to make sure we're all pulling in the same direction.
Five Strategic Imperatives
Supporting a vision the five strategic imperatives provide the power and discipline to transform Albertsons into the world's number one food and drug retailer.
Imperative #1: Aggressive cost and process control
Imperative #2: Maximize return on invested capital
Imperative #3: Customer-focused approach to growth
Imperative #4: Company-wide focus on technology
Imperative #5: Energized associates
Core Values
Our core values define who we are as a company and are another key part of our mission. They are a permanent part of our culture.
With an unyielding commitment to integrity, quality & compliance we will:
1. Drive and passionately implement the spirit of customer first…
2. Embrace a strong commitment to community…
3. Foster a mindset of continuous improvement…
4. Create an uplifting atmosphere for associates...
5. Build a strong commitment to diversity...
6. Establish an uplifting environment of recognition and reward...
7. Partner with and reward vendors…
Analysis of Jewel Vision Statement
Jewel-Osco’s (Albertson’s) Vision statement summarizes the overall goal of the company. According to Jewel the goals of the company are growth, market value, employee satisfaction, profit, and customer satisfaction.
Analysis of Jewel Mission Statement
The mission statement broadly talks about the ways Jewel-Osco’s parent company-Albertsons’ plans to achieve the goals of the vision statement. It plans on doing so by hiring the most productive, helpful, friendly employees and by working with suppliers to sell only the freshest products. As mentioned in the lecture the mission statement ties the organization to a type of business and its role in the marketplace. In the mission statement Jewel affirms that the company will focus on becoming “the supermarket and drug store powerhouse of the 21st century” while focusing on quality.
Analysis of Five Strategic Imperatives
Jewel-Osco’s Five Strategic Imperatives are five specific steps that will create absolute value for the company by minimizing cost, and focusing on technology and the consumer.
Analysis of Core Values:
Jewel-Osco’s (Albertson’s) core values talk about the ways the store plans to achieve their mission. They include ten steps that emphasize the importance of consumers, citizenship, improvement, employees, recognition, and vendor partnerships.
Overall the steps of organizational planning follow the format of:
1. Mission Statement
2. Vision Statement
3. Core Values
WHOLE FOODS
Company History
Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. The founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery. The original Whole Foods Market opened in 1980 with a staff of only 19 people.
Core Values
The following list of core values reflects what is truly important to them as an organization. These values are the underpinning of their company culture. Many people feel Whole Foods is an exciting company of which to be a part and a very special place to work. These core values are the primary reasons for this page.
To invitefeeling, and they transcend their size and their growth rate. These core values are the soul of our company:
· Selling the highest quality natural and organic products available
· Satisfying and delighting our customers
· Supporting team member happiness and excellence
· Creating wealth through profits & growth
· Caring about our communities & our environment
· Creating ongoing win-win partnerships with our suppliers
· Promoting the health of our stakeholders through healthy eating education main
Mission
There’s three basic success elements used to describe the company’s mission: Whole Foods, Whole People, and Whole Planet. Through these statements Whole Foods clearly emphasizes in an organic approach regarding food products, an organizational culture where people feel s they are doing something good for themselves, and for the world; and a continuous effort to help entrepreneurs who have new members, clickideas, with a constant effort to give back to the community.
Whole Foods — We search for the highest quality, least processed, most flavorful and natural foods possible because we believe that food in its purest state — unadulterated by artificial additives, sweeteners, colorings and preservatives — is the best tasting and most nutritious food there is.
Whole People — Our people are our company. They are passionate about healthy food and a healthy planet. They take full advantage of our decentralized, self-directed team culture and create a respectful workplace where people are treated fairly and are highly motivated to succeed.
Whole Planet — We are committed to helping take care of the world around us, and our active support of organic farming and sustainable agriculture helps protect our planet. And while we assist our global neighbors through our Whole Planet Foundation’s micro-lending operations, we also step out the back door of each of our stores to support food banks, sponsor neighborhood events and donate to local non-profit groups.
2. PRODUCT
2.1 Assortment of Products: Milk, Coffee and Water
ALDI
ALDI: Milk
MILK OFFERED AT ALDI SUPERMARKET
PRICES
Friendly Farms Homogenized Milk
1.79
Friendly Farms 2% Milk
1.79
Friendly Farms Skim Milk
1.70
TOTAL AVERAGE PRICE OF MILK
1.76
ALDI: Coffee
COFFEE OFFERED AT ALDI SUPERMARKET
PRICES
Beamont Whole Bean Specialty Coffee (12 oz)
3.99
Beamont Jamaican Blue Mountain Blend Coffe (12oz)
3.99
German Poasted Coffe (1.1 lb)
3.99
Beamont Donut Store Blend Coffee (12 oz)
3.99
Beamont Assorted Bag Coffe (12oz)
2.99
Beamont Instant Coffee (8 oz)
2.99
Beamont French Vanilla (16 oz)
1.89
Beamont Double Mocha Cappuccino (12 oz)
1.89
Beamont Classic Roast Coffee (34.5 oz)
4.45
Beamont Decaffeinated Coffee (12oz)
2.79
TOTAL AVERAGE PRICE OF COFFEE 12 OZ
3.27
Aldi offers a somewhat wide selection of coffee as opposed to its other products.
ALDI: Water
WATER OFFERED AT ALDI SUPERMARKET
PRICES
AVERAGE PER BOTTLE
Fit & Active Enhanced Water (1 bottle)
0.89
0.89
PurAqua Raspberry Flavored Water (6 pack)
1.79
0.30
PurAqua Lemon Flavored Water (6 pack)
1.79
0.30
PurAqua Purified Drinking Water (24 pack)
2.89
0.12
Camelot Natural Spring Water (12 pack)
1.99
0.17
Aldi provides a limited choice in water with only 2 flavored waters and no vitamin water.
JEWEL
JEWEL: Milk
Small Width & Small Depth of an assortment:
Brands: Deans, Silk, Horizon, Wild Harvest, Oberweis, Jewel, Lactaid
Kinds: Fat Free, Regular, 2%
Sizes : 1 quart, ½ gallon, 1 gallon
JEWEL: Coffee
Medium width of (18 brands) of coffee: Folgers, Maxwell House, General Foods International, Tasters Choice, Megalia D’Oro, Jewel, Senseo, Hills Bros, Melita, Kava, Java, Green Mountain, Stewarts, Tullys, Papa Nicholas, Eight O’Clock, Fair Trade, and Starbucks.
Medium depth: compromises of different roasts and flavors of coffee as well as different sizes.
Depth:
1) Folgers: Singles, Silk, House Blend, Pods, Classic, Gourmet, Decaf
a. Gourmet – Vanilla, Caramel, Mocha, Hazelnut,
2) Maxwell House: Filter Packs, Instant, Master Blend, Regular, Decaf
3) General Foods International – Ground
a. Cappuccino, Mocha, Vanilla
4) Tasters Choice – Regular, Decaf, Original, On The Go
5) Megalia D’Oro – Brazilian Roast
6) Jewel – Classic Roast, French Ground, Instant, Decaf
7) Melita – Euro Roast
a. Vanilla, Mocha
8) Senseo – Instant
a. Vanilla
9) Hills Bros
a. Cappuccino
10) Kava – Instant
11) Nescafe – Classico,
12) Stewarts –Decaf
13) Java – Delight House Blend
a. Java Delight Flavored
14) Tully’s – Decaf
15) Papa Nicholas - Regular, Decaf
a. Vanilla, Mocha
16) Fair Trade – Organic
17) New England - House Blend Decaf
18) Starbucks – House Blend, Brazilian Roast, Decaf
a. Vanilla, Mocha, Caramel, Hazelnut, Cinnamon, Spiced
Size:
Size (oz.)
of brands
<=3oz.
3
4-4.99 oz.
4
5-5.99 oz.
1
7-7.99 oz.
2
8-8.99 oz.
1
9-9.99 oz.
1
10-10.99
4
11-11.9
3
12
7
13
1
23
1
33
2
35
1
36
2
JEWEL: Water
Medium width of drinking water.
Regular drinking water : (12 brands) Jewel Brand, Hickley Springs, Absopure, Ice Mountain, Fiji, Glaceau-Smartwater, Glacial Icelandic, Snapple Lyte, DejaBlue, Function, and Dasani.
Flavored water: (Four Main Brands) Nestle Purelife Flavored, Aguafina Flavored, Propel, and Dasani Flavored.
The depth of these products is minimal, and varies only in the size of the bottles, including:
· 1 gallon
· 500 ml
· 550ml
· 700ml
· 1L
· 1.5L
WHOLE FOODS
WHOLE FOODS: Milk **
MILK OFFERED AT WHOLE FOODS SUPERMARKET
PRICES
Horizon Organic 500 ml Whole Milk
3.79
Horizon Organic 500 ml Chocolate
4.39
Horizon Organic 500 ml Half & Half
3.39
Horizon Organic 500 ml Fat Free
3.59
Horizon Organic 500 ml Whole, Skim 2%, 1%
3.99
Horizon Organic 1L Chocolate
4.39
Organic Valley 500 ml
3.79
Organic Valley 1L
6.49
Organic Valley 500 ml Soy Milk
3.69
Farmer's Creamery 500 ml Whole, Skim, 2%, 1%
3.99
Farmer's Creamery 500 ml Chocolate
4.69
365 Organic 500 ml Whole, Skim, 2%, 1%
3.69
365 Organic 500 ml Vainilla, Unsweetened, Chocolate
3.39
365 Organic 1L Whole, Skim, 2%, 1%
5.99
365 No Organic 500 ml Whole, Skim, 2%, 1%
2.39
365 No Organic 1L Whole, Skim, 2%, 1%
3.99
Rice Dream Milk 500 ml
3.99
Coconut Milk 500 ml
3.39
Almond Milk 500 ml
3.99
Silk 500 ml Light, Soy, Chocolate
3.29
Silk Organic 500 ml
3.69
Goat's Milk 500 ml
6.99
TOTAL AVERAGE PRICE 500 ml of milk
3.90
TOTAL AVERAGE PRICE 1L of milk
5.22
When analyzing the product assortment of milk at Whole Foods Supermarket, we can see that it carries a great variety of pretty much all kinds of milk available on Manage Wikithe market. This great variety appeals to customers that because of health reasons can't ingest regular milk but still need some kind of milk intake on their daily diet. Also, this whole variety facilitates to the customer the amount of milk he or she decides to purchase; for example, somebody that's not at home very often would prefer to buy half gallon of milk (500 ml) instead of a gallon of milk.
Whole Foods clearly emphasizes in Organic and Invite People.
To change your wiki's colorsNatural milk, which are mainly packaged in glass or theme, clickin carton containers. Very few of them are packaged in plastic containers. This represents that customer's are more aware of buying products that are not packaged in harsh materials or contain hormones.
Also, Whole Foods tries to appeal to its customers who might be "price sensitive through its "365" own store brand.
WHOLE FOODS: Coffee
COFFEE OFFERED AT WHOLE FOODS SUPERMARKET
PRICES
365 Organic Coffee 1 lb 8 oz
11.99
365 Non-Organic Colombian, Island Blend Coffee 1 lb 8 oz
11.99
365 Organic Buzz Free Decaf 1 lb 8 oz
14.99
Intelligentsia Coffee House Blend, Black Cat Classic 12 oz
11.99
Intelligentsia Coffee Black Cat Decaf 12 oz
12.99
365 Hazelnut, Break Blend, French Toast 12 oz
6.49
Metropolis Coffee 12 oz
12.99
Andrew Jackson Language Academy 12 oz
11.99
Jim's Organic Coffee 12 oz
8.99
Equal Exchange Whole Bean 12 oz
9.99
Teeccino Coffee Maya, Mediterranean, Mocha, Chocolate 12 oz
8.99
Allegro (Whole Bean) Dark French Roast 12oz
10.99
Allegro (Whole Bean) Mocha Java 12oz
9.99
Allegro (Whole Bean) Tanzania Kanyovo 12oz
11.99
Allegro (Whole Bean) Kenya Grand Cru 12oz
12.99
Allegro (Whole Bean) Rainforest Blend 12oz
11.99
Allegro (Whole Bean) Sumatra 12oz
12.99
Allegro (Whole Bean) Colombian La Cacica 12oz
10.99
Allegro (Whole Bean) Allegro Blend 12oz
9.99
Allegro (Whole Bean) Vail Blend 12oz
9.99
Allegro (Whole Bean) Vienna Roast 12oz
9.99
Allegro (Whole Bean) Cafe Blend 12oz
9.99
Allegro (Whole Bean) Espresso Sierra 12oz
11.99
Allegro (Whole Bean) Breakfast Blend 12oz
10.99
Allegro (Whole Bean) Whole Food Blend 12oz
10.99
Allegro (Whole Bean) El Salvador 12oz
12.99
Allegro (Whole Bean) Mexican 12oz
10.99
Allegro (Ground) French Roast 12oz
11.99
Allegro (Ground) Mocha Java 12oz
11.99
Allegro (Ground) Tanzania Kanyovo 12oz
11.99
Allegro (Ground) Kenya Grand Cru 12oz
12.99
Allegro (Ground) Rainforest Blend 12oz
11.99
Allegro (Ground) Sumatra 12oz
12.99
Allegro (Ground) Colombian La Cacica 12oz
10.99
Allegro (Ground) Allegro Blend 12oz
9.99
Allegro (Ground) Vail Blend 12oz
9.99
Allegro (Ground) Vienna Roast 12oz
9.99
Allegro (Ground) Breakfast Blend 12oz
10.99
Allegro (Ground) El Salvador 12oz
12.99
Allegro (Decaf) French Roast 12oz
12.99
Allegro (Decaf) Whole Foods Blend 12oz
12.99
Allegro (Decaf) Sumatra 12oz
12.99
Allegro (Decaf) Colombian 12oz
11.99
Allegro Espresso del Canto 12oz
12.99
Allegro Italian Roast 12oz
12.99
Cafe Altura French Roast 12oz
7.99
Cafe Altura Fair Trade Classic Roast 12oz
7.99
Regular Roast 12oz
7.99
TOTAL AVERAGE PRICE 12 oz of coffee
11.20
TOTAL AVERAGE PRICE 1lb 8 oz of coffee
12.99
When analyzing the product assortment of coffee at Whole Foods Supermarket, we can observe that it has a great depth of coffee brands. Whole Foods pretty much carries well-known coffee brands such as Intelligentsia Coffee and Allegro as well as coffees from around the world including Colombia and South & Central American products.
Whole Foods product assortment entails all types of coffee flavors (such as vanilla, chocolate, and French roast) and presentations such as instant and whole bean coffee.
However, its price-oriented brand "365" is not price competitive with other coffee brands since they can offer the same amount of coffee for a lower price. Whole Foods also tries to show its customers that they hold a commitment towards ethical trade, the environment, and quality products.
WHOLE FOODS: Water
WATER OFFERED AT WHOLE FOODS SUPERMARKET
PRICES
365 Gallon Distilled
1.19
365 Gallon Spring
1.39
365 Gallon Spring
1.39
Crystal Geyser Gallon Alpine Spring
1.79
Whole Food Gallon
1.69
Whole Food Gallon Refill
0.59
Poland Springs Gallon
1.79
Poland Springs Gallon
1.59
365 24 pk
5.99
Re-source 24pk
14.99
Poland Springs 24pk
10.99
365 12pk
3.69
Poland Springs 12pk
5.79
Fiji 12pk
26.28
365 Electrolyte Enhanced Water 6pk
4.69
Volvic 6pk
6.69
Earth 6pk
6.99
Poland Spring 6pk
2.99
Fiji 6pk
7.99
Eternal New Zealand 6pk
5.69
Penta 6pk
10.99
Crystal Geyser 1.5L
1.19
365 1.5L
0.99
Eden Springs 1.5L
2.19
Volvic 1.5L
2.39
Eternal New Zealand 1.5L
1.99
Iceland 1.5L
2.29
Evian 1.5L
2.49
Essential Electrolytes 1L
1.67
SmartWater 1L
1.49
Volvic 1L
1.99
Evian 1L
2.49
Eternal New Zealand 1L
1.99
Penta 1L
3.49
Voss 1L
2.19
Fiji 1L
2.19
Poland Spring Bottle Water
0.59
Re-source Bottle Water
0.99
Evian Bottle Water
1.69
Ethos Bottle Water
1.39
Penta Bottle Water
2.29
Voss Bottle Water
1.49
Fiji Bottle Water
1.39
Total Average Price of Gallon Water
1.43
Total Average Price of 24pack
10.66
Total Average Price of 12pack
11.92
Total Average Price of 6pack
6.58
Total Average Price of 1.5L
1.93
Total Average Price of 1L
2.19
Total Average Price of Bottle Water
1.40
FLAVORED WATER OFFERED AT WHOLE FOODS SUPERMARKET
PRICES
Hint 16oz Watermelon
1.99
Hint 16oz Cucomber
1.99
Hint 16oz Honeydew Hibiscus
1.99
Hint 16oz Black berry
1.99
Hint 16oz Pear
1.99
Hint 16oz Lime
1.99
Hint 16oz Pomegrante - Tangerine
1.99
Ayala's herbal 16oz - Cinnamon Orange Peel
1.69
Ayala's herbal 16oz - Lavender Mint
1.69
Ayala's herbal 16oz - Cloves Cardamom Cinnamon
1.69
Ayala's herbal 16oz - Ginger Lemon Peel
1.69
Metro Mint 16.9oz Chocolatemint
1.79
Metro Mint 16.9oz Orangemint
1.79
Metro Mint 16.9oz Lemonmint
1.79
Metro Mint 16.9oz Peppermint
1.79
Metro Mint 16.9oz Spearmint
1.79
Metro Mint 16.9oz Cherrymint
1.79
Total Average Price of Flavored Water
1.85
When analyzing the product assortment of water at Whole Foods Supermarket, we can see it carries a great variety of sizes and kinds of waters. First, it carries big sizes of water like gallons and 24 packs. It also carries standard sizes such as 12 packs and 6 packs. One of the very “cool” services that Whole Foods provides is a refill of your own gallon of water for $0.59 cents.
They offer products designed for all kinds of customers: the ones that want to replenish the nutrients lost during exercise, the ones that look for 100% free of minerals water, and the ones that just look for different options such as flavored water just to get over the "plain" flavor of the regular water.
The assortment of water comes from different parts of the world such as Fiji Mountains, France, and Iceland.
3. PRICE
3.1 Comparison between Organic and Non-Organic Products
Organic vs. Non-Organic Products: What does it cost to eat healthy at each store?
Eating healthy can be a challenge, as well as expensive when you are trying to shop for organic groceries. We didn't know which of the stores have the best values in regular groceries and organic food products. What we did was to compare and find out the price for a bag of common grocery items from these 3 stores: Whole Foods, Aldi, and Jewel.
Our first price comparison was for a bag of non-organic products at each store. We looked for the lowest price available for each product. Products included bread, milk, eggs, carrots, rice, milk, yogurt, apples, canned green beans, apples, tuna and chicken.
IN THE BAG: NON-ORGANIC PRODUCTS
(1) Loaf of White Bread
(1) Gallon of 2% Milk
(1) dozen Large Eggs
(1) 3 pack of Romaine Hearts
(1) lb. of Red Apples
(1) lb. of Boneless Chicken Breasts
(1) lb. of Rice
(1) lb. of Carrots
(1) Yogurt
(1) 14.5 Oz. can of Green Beans
(1) 5 Oz. can of Tuna
(1) 1.75 litters bottle of Orange Juice
What we found?
In our first price comparison Whole Foods supermarket is the most expensive store for regular products, followed by Jewel with a difference of just $0.75 cents. This result was quite surprising since we thought Whole Foods was going to surpass Jewel by a big amount of money. ALDI was the least expensive store, with the same bag of groceries costing almost half of the price of what our bag cost at Whole Foods and Jewel.
Then, we analyzed the same bag of products but this time with 100% organic products. However, Aldi doesn’t carry any organic products so they were left out of this comparison. To simplify our analysis we assigned a value of 0.50 cents on Manage Wikithe graph to represent a value of zero.
IN THE BAG: NON-ORGANIC PRODUCTS
(1) Loaf of White Bread
(1) Gallon of 2% Milk
(1) dozen Large Eggs
(1) 3 pack of Romaine Hearts
(1) lb. of Red Apples
(1) lb. of Boneless Chicken Breasts
(1) lb. of Rice
(1) lb. of Carrots
(1) Yogurt
(1) 14.5 Oz. can of Green Beans
(1) 5 Oz. can of Tuna
(1) 1.75 litres bottle of Orange Juice
At the end of our comparison study, we found that Whole Foods was the most expensive place to buy organic and Looknon-organic products, followed by Jewel and Feel.
ToAldi.
Organic products are more expensive than regular products at every store but Aldi since they don’t offer any organic products. Jewel has the smallest price difference between regular and organic products – only about $5.00 dollars. A bag of organic products at Whole Foods was $13.55 dollars more expensive than a bag of the same non-organic products in the same store! One of the proposals we could suggest to Whole Foods is that they try to lower its prices on their organic items so the difference would not be as evident when people shops at other stores for the same products.
Also, this information is definitely telling us that Whole Foods is not being as competitive as Jewel is being. Jewel is offering the same bag of organic products for about $7.77 dollars less than Whole Foods. This can be represented in increasing customer turnover of Whole Foods customers to other stores where they can get it the same items for less. However, Aldi is trying to keep its “low-price” strategy by not introducing any organic products. We know that Aldi is mounting an aggressive expansion in Chicago, posing a threat to Supervalu-owned Jewel. “By year end, Aldi is set to have more stores in the city than any other grocer when it completes 3 locations now under construction; it will have 37 stores inside Chicago to Jewel's 35”[[#_ftn1|[1]]].
Jewel stores are trying to maintain an appearance of a “budget-friendly” supermarket by introducing the “Big Relief Price Cut” promotion that cuts prices by up to 20 percent on thousands of everyday items, according to a story in the Chicago Sun Times. "Consumers have become increasingly budget conscious, and their spending and savings habits have shifted dramatically due to concerns about the economy”.
Probably, the customers that used to shop at Whole Foods before the recession are now forced to shop in other store formats like Jewel, Dominick’s, Target, and Aldi.
Other than private label groceries, the growth of which has gotten significant media attention in recent months, the trends seem to be breaking this way[[#_ftn2|[2]]]:
• Cheaper beef cuts are more popular, and carbohydrates have been making s comeback because they tend to be less expensive than protein.
• Refrigerated and frozen pizza sales are up, as are the sales of microwave popcorn and popcorn poppers.
• People seem to be buying more seeds so they can plant their own gardens and feed themselves.
• Sales of items like vitamins, supplements and over-the-counter medications are on the rise, as people try to take care of themselves.
3.2 Price Average Comparison between 3 stores on: Milk, Coffee and Water
Price Comparison:
Aldi:
Average price for 1 gallon of milk
$1.79
Average price for a coffee product at Aldi
$3.30
Average price per ounce of coffee
$0.27
Average price per bottle of water at Aldi
$0.19
Jewel:
Average price for 1 gallon of milk
$4.29
Average price of coffee product
$7.12
Average price per ounce of coffee
$0.80
Average Per Unit Price
$1.22
Whole Foods:
Average price for 1 gallon of milk
$5.22
Average price for 12 oz of coffee
$11.20
Average price per ounce of coffee
$0.93
Total Average Price of Bottle Water
$1.40
ALDI
Since its’ main business model focuses on providing groceries at the lowest possible price, Aldi does not offer any organic food items since in general organic foods are more expensive to grow and produce for final sale. The savings in the foods sold at Aldi can be observed by looking at the prices of milk, coffee, and water sold and compared to these same items in other stores. The average price for a gallon of milk is $1.79, a coffee product costs $3.30 or averages out to $0.22 per oz., and a bottle of water sells for $0.19.
JEWEL
When comparing these 3 items Jewel-Osco is in the middle of the price spectrum between the three stores, as expected.
WHOLE FOODS
WHOLE FOODS: Milk
Because Whole Foods specializes in present to the consumer with natural food, their dairy products can be more expensive because farmers are using fewer hormones and chemicals to grow animals so it takes more time to the producer to have enough “natural” cows and efficient production methods “hormone-free”. Ordinarily, when a product contains hormones, it can be cheap since it is mass-produced and the timeline is shorter. As an example, we can see that the average price for 1L of Milk is $5.29, which is fairly high compared with the other stores.
Whole Foods is committed to bring foods that are free from artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats.
WHOLE FOODS: Coffee
Whole Foods has a great selection of coffees but its prices are way higher for a regular upscale supermarket. A bag of 12 oz of regular coffee is almost 3 times more expensive than a 12 oz regular bag of coffee at Aldi. We think that the main reason of having these outrageous high prices is because importation costs into the U.S (approximately $0.93 per ounce of coffee). Also, we have to think that these coffee products have been obtained with a “fair-trade” philosophy.
WHOLE FOODS: Water
There’s an entire aisle dedicated to water in Whole Foods. They have from the most expensive bottle of regular water at $2.29 to the cheapest $0.59. Also, they carry expensive imported brands such as Evian (France), and Fiji (Mount Fiji). This big selection of brands makes them very strong when trying to appeal to consumers who want something different such as flavored waters, ranging from $1.69 to $1.99 a bottle.
However, even though Whole Foods have a recycling approach to its products, we don’t see any “green” alternatives about plastic bottles and its disposal.
4. LOCATION
4.1 Surrounding Stores
ALDI
After arriving at the location, a shopper will be able to find Aldi in a L-shaped shopping center among:
· Chase
· Pozzillo's Pizza
· Vivien's Hair Design and Boutique
· Cricket
· Stretch-a-dollar
· BB's Bulgarian Specialty
· Dragons Cuisine Chinese Food
· Jim's Liquor
· El Salitre Mexican Restaurant
· Subway
· Dunkin' Donuts
· Dairey Queen
· Jackson Hewitt
JEWEL
Surrounding Stores
· DOTS
·
Bank of America
· Dunkin Donuts/Baskin Robins
· Cleaners & Tailors
· Subway
· Jackson Hewitt
· Chinese
· GNC-Live Well
· Ashley Stewart
WHOLE FOODS
There are many retailers surrounding Whole Foods, which makes it convenient for consumers to shop at many stores in one area. The retailers are:
-Petsmart -Home Depot -South Central Bank
-DSW Shoes -Bedbath & Beyond -U.S.Cellular
-Michaels -Harris Bank -Cartridge World
-Vision Works -Bank of America -FedEx Office
-AT&T -Starbucks -Radio Shack
-Game Stop -Chase Bank -Victoria’s Salon & Spa
-Cleaners -Staples -Sears Optical
-Back to Bed -Midias Auto Service -GNC General Nutrition
-Walgreens -Best Buy
Whole Foods major competitors in the area are:
· Dominick’s
· Jewel
· Target
Jewel and Dominick’s are Whole Foods biggest competitor in the area. Jewel is located just two streets away on Roosevelt and State Street. Jewel has a wide assortment of products; it would be between Dominick’s and Whole Foods. Jewel has many organic products along with regular products. Dominick’s has mostly regular products but do carry some organic products and it is located across the intersection from Whole Foods. Target does not offer as much grocery items, but they do offer household items, hair, face, body care and more.
Whole Foods minor competitors in the area are:
· White Palace Grill
· Panera Bread
· Dunkin donuts/Baskin Robbins
· Domino’s Pizza
· Subway
· Hong Kong delight
· Jason deli
· Binny’s Beverage Depot
All of the minor competitors listed above are restaurants except for Binny’s Beverage Depot, which is a large liquor store. We consider Binny’s as a competitor because of their wide assortment of wine and beer. Whole Foods has a large section in their store devoted to wine and beer. The other competitors listed above are small restaurants. They are minor competitors to Whole Foods because when we observed the store at noon there were more people buying lunch than groceries and the people we interviewed said they buy lunch from Whole Foods because it was close to work. There are many office buildings in the area and the restaurants listed above are within driving/walking distance.
4.2 Store Layout
ALDI
The store has uncluttered and wide aisles. The store is designed in such a way that all shoppers enter the store and go the same route through the same aisle.
JEWEL
Jewel has different “stands” on the outside perimeter of the store that include some sort of service activity and compromise the main part of the store. They include the cheese section, deli, liquor, pharmacy, photo counter and flower shop. The middle isles are somewhat crowded and are all self service. There are two entrances to the store, and only one can viewbe used to exit.
WHOLE FOODS
Whole Foods store layout is similar in some ways to many grocery stores. You would have to first pass through the fruits and edit your wiki, clickvegetables then meats or other isle and the dairy products are in the back. There are two entrances; the other entrance is located in the back of the store by the alcohol/cheese/dairy section. What’s different about Whole Foods is that they have soup and shrimp bar near the meat section. When people pass through they can sample the shrimp. Jewel-Osco does not offer samples like Whole food does. In Whole Foods, before you head to the cash register, they design it so you would most likely pass through the prepared food sections such as:
· Asian Express
· Pastries
· Cakes/Desert
· Hot bar
· Salad bar
· Chef Prepared/Grill
· Olive Bar
This is a good strategy because customer may purchase something to eat even though they did not plan on Manage Wikiit.
4.3 Atmospherics
ALDI
The atmospherics can be describing the store as simple and Permissions.
Need Help?
Clickplain. The store has bright lighting and pale yellow walls. The store is rather quiet since there is no music playing and there are no announcements on the help linkintercom. A big plus to the shopping experience at Aldi is that everything can be easily found and a shopping trip to this store as opposed to a larger store will take a considerately shorter amount of time.
JEWEL
Overall, this Jewel is nicely organized and has a good feel. It is easy to find all products and the atmospherics are very good compared to other stores visited. The store has updated fixtures and has departments other comparable stores do not have.
Other Jewels compared:
6107 S Archer
5320 S Pulaski
This Jewel has the cheese department which the above Jewels don’t have, and the wine & spirits department has upgraded shelving, paint and lighting. The overall feel of the store is somewhat crowded and the shelves in the middle of the store can be hard to learnmanage through if more than 3 carts are in the same isle. The flower and gift department is in the middle of the store, which breaks it up. The store is nice to walk through, but the ongoing announcements take away from the ambient feel. It can be seen that the store was recently upgraded, because unlike other Jewel stores we have seen, the Ashland Jewel has newer fixtures and a more upscale look. It feels though that only the outside perimeter of the store was renovated, and the middle shelves were left to be because the isles are somewhat harder to navigate than in other Jewel stores. One example of this would be the cosmetics department which is much bigger in other stores, with showcase items in the middle. That said, we conclude that the Ashland Jewel store is a step up from the other comparable Jewel stores in some aspects, but scores lower in some. Although it is smaller than both stores compared it has a nicer atmosphere because of the different shops that surround the perimeter of the store and upgraded fixtures.
WHOLE FOODS
Whole Foods has a great atmosphere compared to its nearest competitor Dominick’s. There is an immediate difference when you walk into both stores. Dominick’s lighting makes the store seem dull. Whole Foods stores are bright and make you feel alive and the employees just seem friendlier at Whole Foods. Whole Foods is a interesting store because of its unique products and customers may spend more time in the store just looking through different products.
4.4 Accessibility (Train, Car, CTA) and Parking
ALDI
The Aldi store located at 9310 Irving Park Road, Schiller Park, IL 60176 is located at a large intersection between Irving Park Rd. and Des Plaines River Rd. which makes the store very easily accessible by car and also by bus since there is a PACE bus station at the end of the parking lot where the store sits. There is also a CTA blue line train station about 2.7 miles away. Despite the large amount of renters in the shopping center, there is no problem at finding a parking space since a large parking lot encompasses the center hosting approximately 100 cars.
JEWEL
Jewel-Osco at 1220 S Ashland is easily accessible by car or by bus. The store is within close proximity to the Eisenhower Expressway (I-290) which has entrances and exits all along Congress Parkway and intersects with I-90/94. (Kennedy Expressway) The store is also only a couple of miles away from I-55. There are CTA bus lines with routes through the area, which are easily navigable through the use of the transfer system. The closest CTA Lines are the CTA Pink Line which travels north/south through the Medical District, stopping at Polk and the CTA Blue Line train has two separate branches, one of which also stops at Polk Street and the other stopping at Illinois Medical District directly. The CTA Lines require a transfer to be able to get to Jewel so traveling by bus or car is recommended.
Jewel has a very large parking lot to accommodate all of the above stores. The Jewel-Osco parking lot has the average 300 spaces, but during busy times of the day parking is sparse due to its shared use with other stores.
JEWEL: Public Transportation and Parking
Public Transportation:
CTA
yes
2 CTA Lines(pink&blue)
not walking distance
Metra
no
Bus
yes
Ashland 9
Parking:
Spots # approx
300
Open parking and its size
Yes
300 spots
Covered (garage) parking and its size
no
Is parking free?
yes
For how many hrs can you park?
Unspecified
Non-overnight
General Comments:
Parking lot can get cramped with shared use from neighboring businesses.
WHOLE FOODS
There are three parking lots available to the customers, one of which is garage parking, but the ticket can be validated. This is also a convenient location for people who take public transportation. The Red, Orange, and Green Line are two streets away and there are buses that can go to and from the train station. Jewel is better accessible to public transportation users, because it is located right next to the Red, Orange, and Green Line. There are also many bus lines that pass through the Jewel location.
WHOLE FOODS: Public Transportation and Parking
Public Transportation:
CTA
Yes
2 streets away
Metra
No
Bus
Yes
2 bus lines
Parking:
Spots # approx
?
Open parking and its size
Yes
3 Parking Lots
Covered (garage) parking and its size
Yes
Is parking free?
Yes
For how many hrs can you park
90mins/2hrs
Garage Parking can be validated for 2hrs
5. PROMOTION
5.1 Geographic Location
ALDI
The Schiller Park Aldi store is conveniently located close to 90/94 and 294 highways and is amongst a largely populated residential area. With many condo and apartment buildings as well as residential homes, the store is in an ideal location with many families in the area who can do their grocery shopping at a discount. Also, with sidewalks around the area, the store is easily accessible by foot as I have observed mothers pushing their babies in strollers to the store to do their groceries.
JEWEL
This Jewel Osco is located at 1220 S Ashland is located in Chicago, IL close to the Medical District, and University of Illinois at Chicago, at the intersection of Ashland and 13th St.
WHOLE FOODS
This Whole Foods store is located at 1101 S. Canal St, Chicago, IL 60607. This is a great location for Whole Food because of the office buildings and residential buildings in the area. After work consumers can shop for groceries or buy dinner then go home. This location is easily accessible and located near major highways such as: Kennedy, Eisenhower, and Stevenson Expressway. A downside for being at this location is the high traffic during rush hours, making it difficult to travel on the streets. This area is also a new development and there are condos being constructed nearby. This Whole Food is catering mostly to residents in the South Loop.
5.2 Online Service Offering
It today's high tech business world it is hard to imagine a company without a web-site. Web-sites act like information, sales, and promotion tools. We analyzed the web-sites of ALDI, Jewel, and Whole Foods form the point of view of promotion.
We browsed the web-site and found the answers in the following questions:
· What customers see on the main page of a site
· Are sales and promotions visible to a customer
· Are there special deals offered to a customer based on a store location
· Are these deals easy to find on the site
· Are product prices shown
· Is online shopping available
· Are printable coupons available
· Are there recipes on the site (since we are dealing with food retailer)
· Are there money saving plans offered to customers on the web-site
· Do retailers have community/ networking and forum
· Can customers subscribe to newsletter
· Are there commercials on the web-site
· Are there any contests for buyers
· Are there printable news/ ads available for customers
· Are gift cards available
· Is there preferred card (membership)
· Does the store have in home brands
What We Found?
Since these three stores - ALDI, Jewel, and Whole Foods - have different approaches to their customers, their web-sites, of course reflects that:
ALDI
Emphasis on overall saving - current sale deals are popping out everywhere.
On ALDI web-site, the promotions and hot deals literarily jump into user. Sales info is very visible and easy to find. ALDI site shows its customers that they are going to find a great value in all ALDI stores all the time.
parameter
comment 1
link
comment 2
what's on the main page?
sales info
clickhere
big current sale deals
are the sale and promos visible to user?
very
very visible - huge image on the main page, links on the right panel, special buys menu by dates
are there deals by store location?
no
general deals
are deals hard to find on site?
no
are product prices shown?
yes
clickhere
regular and sale prices are shown
is on-line shopping available
no
are printable coupons available?
yes
recipes on the site
yes
money saving plans
yes
community, forum
no
you can sign in, but not big activity is shown
newsletter
yes
commercials
yes
clickhere
contests for buyers
yes
clickhere
win a Wii - value contest
printable news/ ads
yes
clickhere
aldi win retailer of the year
gift cards
preferred card (membership)
in home brands
JEWEL
Emphasis on local saving and membership.
On Jewel web-site user is forced to browse sale and promotions by location. Also users who have Jewel preferred card can register for forum and for personalized saving program - Avenue. Jewel site shows its customers that Jewel is not only provide overall value, but also make each customer feel unique.
parameter
comment 1
link
comment 2
what's on the main page?
store locator
[[file:///C:\Users\Lera\Documents\UIC\005-UIC Fall 2009-2010\MKTG 452 PRINCIPLES OF RETAILING\part 2\www.jewelosco.com\|click here]]
can not go to site until enter the correct zip (kind of annoying)
are the sale and promos visible to user?
yes
not that aggressive - just a thumbnail of the coupon newspaper - by location
are there deals by store location?
yes
click here
only by location
are deals hard to find on site?
no
are product prices shown?
yes
is on-line shopping available
yes
are printable coupons available?
yes
click here
weekly ads by location
recipes on the site
yes
click here
money saving plans
yes
click here
"Avenu" - Personalized Saving
community, forum
no
newsletter
yes
commercials
no
contests for buyers
no
printable news/ ads
yes
gift cards
yes
preferred card (membership)
yes
in home brands
yes
Jewel Brand
WHOLE FOODS
Emphasis on community; a lot of good blogs, forums, reviews networks.
Whole Foods site is not obsessed with pushing saving into customers. However, Whole Foods showing that "sharing is caring". Its web-site has a lot of opportunities for networking: people can join Whole Foods on Facebook, Twitter, etc. It make customers feel like they cozy and like home.
parameter
comment 1
link
comment 2
what's on the main page?
season info + "what's on sale"
click here
are the sale and promos visible to user?
not very aggressive
what's on sale - location
are there deals by store location?
Yes
click here
are deals hard to find on site?
medium
are product prices shown?
no
click here
just the product description; some prices are shown on sale products - only by location (http://www.wholefoodsmarket.com/products/wholedeal/suredeals.php)
is on-line shopping available
no
are printable coupons available?
no
recipes on the site
yes
click here
money saving plans
no
click here
they have money saving plan page, but it does not show the prices at all
community, forum
yes
click here
blog flickr, facebook, twitter
newsletter
yes
commercials
contests for buyers
yes
click here
community contest
printable news/ ads
yes
click here
Whole Deals newspaper
gift cards
yes
click here
preferred card (membership)
no(?)
in home brands
Yes
click here
Whole Foods Market brand
5.3 Sample Tasting in the Store
ALDI
Through numerous trips to this Aldi store as well as other locations, we have never observed any tastings or small sample giveaways.
JEWEL
The store offers little to none sample tasting. New food products are sometimes given out as samples, and a customer may ask for a sample at the deli or kitchen.
WHOLE FOODS
Food Sampling is a tool that Whole Foods uses. They offer many different types of food sampling some of which you need employee assistant, like tasting something from their shrimp, olive, or open bars. Whole Food also has sampling of chips, cheese, wine, dips and cookies. This is a great promotional mechanism because customers can try products that they would have never bought in the past. Samples also make the shopping experience more enjoyable.
5.4 Traditional Advertising
ALDI
Aldi uses many in mail techniques of advertising. Flyers announcing upcoming sales and sale mailers are often the only means of promotion.
JEWEL
Jewel-Osco advertises on many TV & radio stations, including ones that cater to many different ethnic groups. The store translates TV & radio commercials to the language of the intended audience. Jewel also advertises in print ads, on some billboards and street advertising and sponsors many events.
WHOLE FOODS
Whole Foods does radio, billboard, print, Internet marketing, investing in projects like the Windmill and projects to improve the community. We haven’t seen much of Whole Foods advertisements compared to Jewels, Dominick’s, and Aldi, but we think this is because Whole Foods spends more money on improving their image and quality of their stores, products and employees.
5.5 Loyalty Programs
ALDI
Although point or discount cards seem to be a growing trend in grocery stores as a means of customer loyalty, Aldi does not offer any such cards. It seems as though shoppers stay loyal to Aldi and keep on coming back to the store due to their low prices.
JEWEL
Jewel Osco for many years has the Preferred Card program, which provides its users with savings on select products after using the card. This is beneficial to both the consumer because it provides cost savings and to the store because it is a way to get to know customers shopping habits and identify popular products.
WHOLE FOODS
Whole Foods doesn’t seem to have loyalty programs or print our coupons for you, unlike Jewels and Dominick’s. They offer in-store price cuts. We think this is because of high quality products and service that brings customers back for more. They don’t need to depend on these programs, although we think this would be beneficial to have.
6. COMPETITION
6.1 Who Are Their Competitors
ALDI
Although Aldi enjoys graet success with about 9,000 stores worldwide, the company does have competition. Aldi’s biggest competitor is Lidl, a German discount supermarket chain which has over 7,000 stores worldwide. Other competitors for Aldi are Metro AG and Wal-Mart.
JEWEL
Jewels-Osco’s competition in the produce market in the area is: Whole Foods, Dominic’s, Aldi, Pete’s Fresh Market, and the pharmacy constantly competes with Walgreens.
WHOLE FOODS
Whole Foods major competitors include: Kroger, Safeway, Trader Joe’s, Wal-Mart, Meijer, Dominick’s, Jewel, Aldi
Most of these are grocery stores except Wal-Mart and Meijer has other products like gardening, electronics, home improvement and etc. Trader Joe’s would be closest competitor to Whole Foods, because they also offer unique products and experience compared to the other stores.
6.2 Strategic Positioning Whole Foods
(Upscale Grocer)
Price/Service Jewel-Osco
(Traditional Grocer)
Product Lines Offered
Aldi
(Discount Grocer)
ALDI
Aldi has adapted and operates under a discounting strategy and overlooks many other operational factors. The main goal of the grocery chain is to provide the absolute cheapest product and Aldi achieves that by cutting costs at all levels of the operation. Cost cutting for Aldi is achieved through tactics such as positioning their stores on the outskirts of cities where land is cheaper, not focusing on positive atmospherics, and cutting out amenities which are present in other grocery stores.
JEWEL
Jewel-Osco takes on a Combination Store Strategy Mix, being located in a community shopping center, using competitive pricing, having average atmospherics and service, and heavy use of newspapers and flyers for promotion.
WHOLE FOODS
7. CUSTOMER SERVICE
7.1 Services Offered (Gift Baskets, Personal Shopping, Catering)
ALDI
Aldi does not sell any gift baskets but at times certain “Special Buys” are featured at the store which could constitute a gift. As to personal shopping and catering, both those services are not offered since Aldi focuses on providing food at the lowest price which means cutting out exclusive services as personal shopping and catering.
JEWEL
Jewel offers floral services, online shopping, personalized gifts, photo, banking (TCF), video rental, coin counting.
WHOLE FOODS
Catering: For any occasion — business meetings, weddings, rehearsal dinners, galas, premiers, open houses, bar mitzvahs, bat mitzvahs or holiday parties — Whole Foods Market Catering can create a memorable event for you.
Cooking Classes: Whole Foods offers classes that will help you increase your wiki.
culinary know-how and expand your recipe repertoire at their state-of-the-art Culinary Centers. Located in over 30 stores nationwide, their instructional kitchens offer affordable, recreational culinary education for all ages.
iPhone App: Whole Foods Market developed an application for the iPhone that provides the retailer’s entire selection of over 2,000 online recipes to iPhone and iPod touch users. Searchable by ingredient, special diets, and other elements like "budget" and "family friendly," each recipe contains detailed preparation instructions and nutritional information, which can be copied and pasted, saved as a personal "favorite," and emailed from within the App itself. The App also includes an "On Hand" feature where customers can enter ingredients and get back meal recommendations.
Personal Shopper: Whole Foods offers this service in which their Personal Shoppers will take the time to learn what you like, how much time you have, and what fits into your budget. They can even arrange for your groceries to be delivered to your door or bring them right out to your car. You just pay the retail cost of your groceries, from the list you provide + $9.99 Personal Shopping Fee +Delivery Fee based on your delivery zone.*= your total!
Gift Baskets: In addition, Whole Foods provides custom gift baskets by special order, including baskets tailored for special diets and special occasions. These are available with a minimum 24-hour advance notice, 48 hours preferred, and subject to a minimum $50 charge. Another service in this particular store in 1101 St Canal St is the daily chair massage area.
7.2 Employees on the Sales Floor
ALDI
1-2: there is always a cashier at the front of the store to ring up purchases and frequently through the day a manager/stocker can be observed stocking merchandise. When there are no customers in line, the cashier always goes into the aisles and either organizes or stocks merchandise. Having a limited amount of employees definitely cuts costs and training employees to serve more than one function also reduces the costs.
JEWEL
Average number is said to be 15-20.
WHOLE FOODS
Approximately 30-35.
7.3 Credit/Debit Card Acceptance
ALDI
Aldi does not accept any credit cards or checks but instead only accepts cash and debit cards. The reason why credit cards are not accepted in this grocery chains is because credit card companies charge fees as well as a percentage of the sale price which in turn ends up being an unnecessary expense. Checks are also not accepted because there is always a risk of not being able to collect on a check which ends up costing the store money.
JEWEL
All forms of payment are accepted, and Jewel recently adopted the Pay By Touch system that is more secure because it uses biometrics as a safety method. With Pay By Touch the customers bank information and preferred card is stored in the IBM Data Center, and follows strict financial industry security standards and payment can only be processed by using one’s own finger to check out.
WHOLE FOODS
Whole Foods accepts Visa, Master Card, American Express, Illinois LINK card, Cash (does NOT accept Checks).
7.4 Return Policy
ALDI
Aldi accepts all of its products for returns weather they have been open or not. “Special Buys” are also available for a refund but due to the limited time they are available for sale they are not available for an exchange if they are not in the store. Another form of customer satisfaction and return policy that Aldi has incorporated in its’ stores is The Double Guarentee Quality, taste and satisfaction are always DOUBLE* guaranteed at ALDI. If for any reason, you are not 100% satisfied with any product, they will gladly replace the product AND refund your money”(aldifoods.com).
JEWEL
Jewel-Osco promises to accept a return of any product defective or not suitable for use. Osco does however accept returns of most non-food purchases if they are unused, and do not suit the needs of customers or prove to be defective. Jewel does not accept returns of food products because of laws regarding food product tampering.
WHOLE FOODS
Whole Foods promises to accept a return of any product defective or not suitable for use. However, they do accept returns of most non-food purchases if they are unused, and do not suit the needs of customers or prove to be defective. Whole Foods does not accept returns of food products because of laws regarding food product tampering.
8. DEMOGRAPHICS
8.1 Who Are Their Customers: Age, Income, Gender, Race
ALDI (Zip Code 60176)
ALDI: Age
With over 50% of the residents in the area being in the age range of individuals moving out on their own or people raising families, it is assumed that these individuals are on a limited income and benefit by having a discount grocer such as Aldi in their neighborhood.
Age
Percentage
Number of People
Under 5
6.80%
793
Age 5 to 9
7.20%
829
10 to 14
6%
694
15 to 17
3.70%
425
18 to 19
2.60%
304
20 to 24
9%
1,040
25 to 34
17.90%
2,078
35 to 44
14.80%
1,717
45 to 54
13%
1,503
55 to 59
3.80%
442
60 to 64
4.10%
474
65 to 74
6.40%
742
75 to 84
3.60%
421
Over 85
1%
118
Total
100.00%
11580
ALDI: Income
Since a significantly large group of the residents have an average household income of under $50K, it is assumed that such individuals will benefit from having a discount grocer in their area.
Income
Percentage
HH Income Under $50K
59.20%
HH Income $50K-$100K
33.00%
HH Income Over $100K
7.60%
ALDI: Gender
Since the population of this particular area is split almost evenly in half between males and females, the store does not have any particular appeal geared towards either the male or female shoppers.
2008 Population by Sex
Male
51.10%
Female
48.90%
ALDI: Race
With the majority of residents in the area being white and Hispanic, the stores food assortment seems appropriate for these individuals and their diets.
Race
Hispanic/Latino:
22.00%
White
68.90%
Black
1.80%
Native American
0.00%
Asian
5.10%
Hawaiian/Pacific Islander
0.00%
Other
0.20%
Multiracial
1.90%
JEWEL (Zip Code 60608)
JEWEL: Age
The majority of the surrounding population is over 18 years old and under 65.
JEWEL: Income
The median household income is an average of $35,000 and the majority of people in the area make less than $50,000 per year.
Income
Percentage
HH Income Under $50K
67.40%
HH Income $50K-$100K
25.70%
HH Income Over $100K
6.90%
Median Household Income $34,923 $54,749
JEWEL: Gender
A smaller percentage of women occupy the area then men.
2008 Population by Sex
Male
51.50%
Female
48.50%
JEWEL: Race
The area is predominantly Hispanic.
Race
White Alone
33.80%
Black Alone
13.80%
American Indian Alone
0.70%
Asian or Pacific Islander Alone
5.90%
Some Other Race Alone
42.50%
Two or More Races
3.30%
Hispanic Origin
71.10%
Total Population
84,824
309,299,265
Total Households
25,473
WHOLE FOODS
Whole Foods customers are mainly located in the zip codes 60607, 60605, and 60616 (South Loop and Chinatown area). Since it is located in a well-transited street, it might attract customers from other neighborhoods, or areas from Downtown Chicago. The total population area is 22,089 people and 9,439 households.
The zip code we analyzed for research purposes is 60607, which is the one where the store is strategically located. There are 4 aspects of demographics we think are relevant: gender, race, income, and population age[[#_ftn3|[3]]].
WHOLE FOODS: Age
We concluded after intensive observation that Whole Foods Supermarket is mostly visited by people between the following group ages:
20-24: 14.80% of the population area which is equivalent to 3,269 people.
25-34: 27.40% of the population area which is equivalent to 6,052 people.
35-44: 15.20% of the population area which is equivalent to 3,357 people.
These percentages are also the higher number in the graph which make us think that this people is the “workforce” which is translated as “the people that has the money to go to the supermarket and spend it”.
WHOLE FOODS: Income
Income is one of the most important demographic data that we can look for. When we look at the income we look at the amount of money households make in a year and how much of that income is going to be destined to buy groceries. As we can see, Whole Foods is located in an area where 25% of the population (5.500 people) has an income of over $100K per year; which is translated in a great acquisition power. Nevertheless, a 31% of the population has a decent income between $50K-$100K per year; and a 44% (9.700 people) has an income of less than $50K per year.
22089
WHOLE FOODS: Gender
In the 60607 area, there is a population of 51% males and 49% females. In terms of numbers is almost the same.
WHOLE FOODS: Race
In terms of who makes a 100% of the population that lives in the zip code 60607, we found out that it is incredibly diverse. Pretty much it has people from all over the world. This might be an advantage to Whole Foods Supermarket because these people can find and consume products that are made in their countries, or that they used to consume before moving into the U.S. When an area is diverse, it encourages other stores in the area to be innovative when they want to target these customers.
WHOEL FOODS: Financial Info
While Walmart has what is termed a “natural advantage” in an economic downturn because of its low price positioning, Whole Foods has suffered from its reputation as an expensive place to shop for fancy food. However, Whole Foods has seen some turnaround by creating an in-store focus on values (which is different than being “cheap”) and by cutting back on new store openings to free up cash and reduce debt from its acquisition of Wild Oats.
Not surprisingly, Business Week also makes its judgment based on stock price: “In 2008, as the recession deepened, shares of high-end grocer Whole Foods plunged 77%, while discount retail giant Wal-Mart saw its stock jump 17%,” the magazine writes. But “on May 14, in response to the release of quarterly results, Wal-Mart's shares sunk 1.9%, to 49.10, while Whole Foods' rose 2.8%, to 20.55.” Walmart’s earnings were up for the quarter and Whole Foods’ were down…but Whole Foods’ earnings were better than expectations, and that’s all the market cares about.
[[#_ftnref1|[1]]] http://us.infores.com/Insights/Publications/RetailIndustryNewsWeekly/tabid/148/Default.aspx
[[#_ftnref2|[2]]] http://us.infores.com/Insights/Publications/RetailIndustryNewsWeekly/tabid/148/Default.aspx
[[#_ftnref3|[3]]] http://www.zipcodesandmore.com/zip-census.aspx?zip=60607

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