Reed market case analyze Study Example | Topics and Well Written Essays - 500 words

Reed market analyze - Case Study Example The new items on display at DG seem to be compatible with the technological trends within the market of such goods. However, Reed has not yet considered this option and is still also doing business the old way despite many suggestions posed by management. The other problem lies in the level of customer loyalty. The level of loyal customers keep going down and the supermarket has lacked the capacity and means to retain attracted customers since it does not have a well thought out procedure for ensuring that customers who come shopping actually keep coming whenever a shopping need arises. This could also be attributed to the fact that many retail chains have sprung up and are offering better services. The growth of private label merchants seem to give Reed a big headache considering that it mainly depended on the branded items which now find little appreciation within the market. This is one of the tools that new entrants into the market are trying to implement successfully. The consumers in this locality and whole of America have become health conscious and would not go for the traditionally sold goods which are thought to affect their health status. Reed has not implemented a food retail store that caters for the changing food needs of its customers while other chains are doing so. The pricing model for Reed seems to get it in trouble since it happens to have higher prices as compared to Aldi and DG, which is actually reducing the sales of Reed. This issue has also been compounded by the fact that Reed is poorly located and access by many customers is limited as compared to other stores. The above issues and more to be identified have made it hard for Reed to keep its shares growing and instead they keep dwindling (Quelch and Carlson1-12). The 14% market share held by Reed in Columbus is not enough. If it could adjust and find new ways of doing business,