Executive Summary
The paper analyses Best Food Superstores with the aim of investigating some of the major complaints brought forth by its loyal customers. The organization has been charging its customers higher prices deliberately. Also, the organization is characterized by poor customer care services as employees are disrespectful and less knowledgeable about the store’s overcharging policy.
The marketing mix adopted by the store is the major cause of these complaints. It has been recommended that the organization should train its employees on customer care services, time management, loyalty, moral ethics, and being respectful. It has also been suggested that the organization should adopt a modern information system that will allow for a networking of the stores.
This would ensure that the prices are updated on a regular basis. The organization should reorganize its marketing mix and solve any existing flaws. Adoption of these strategies would reduce the complaints, increase customer trust, loyalty, and customer Background
Best Food Superstores is comprised of grocery chains stores that operate under the retail industry. Based on the case study, the retail stores operate in a competitive market although it seems that the company is more dominant than its competitors. The report is an effort to undertake a situational and alternative analysis to address some of the management and customer care related operational issues filed by its loyal customers.
Statement of Problem(s) or Issue(s)
One of the Best Food stores has been overcharging its customers deliberately on several occasions. Consequently Brenda, a customer at the store, has been forced to write to write a complaint letter to the president of the chain stores. On one occasion, Brenda was “overcharged $1 on a bottle of olive oil” (Mackenzie, 2007, p.31). Employees seem to be less responsible in offering customer care services and adhering to the store’s overcharging policy.
For instance, once Brenda bought the olive oil and was overcharged, she complained at the help desk where another employee was sent to cross check the prices. However, the employee under question took more than ten minutes to get back to the customer and she was later found chatting with a fellow employee instead of addressing the customer’s complaint.
The employee called Brenda a “missus” which is not a proper way of addressing a customer. In another incident, the same customer went shopping for onions at the same store. However, the price tag was wrongly placed and the onions where Spanish and not white as indicated on the label.
Some of the cashiers and employees at the store are misinformed about the store’s policy on what measures to take once a customer is overcharged. However, it seems that the overcharging was being carried out deliberately.
For instance, on a third occasion when an item is bought and charged at a higher price than advertised, the store manager reckons that they had addressed the issue during the previous week (Mackenzie, 2007). An employee admits that the manager had informed them to remain silence on the policy unless a customer had firsthand information.
This shows mismanagement, irresponsibility, and disrespect towards customers. It is an indication that the top management has conspired to reap off customers and use employees as a tool to practice unethical practices at the store.
Situation Analysis
This section uses SWOT and PEST analysis as well as marketing mix to evaluate the situation under which Best Food superstores is operating.
Table 1: SWOT analysis
Marketing mix
A marketing mix comprises of price, product, promotion and place/distribution (Bovay, 2008). The following is the analysis of the Best Food Superstores marketing mix.
Prices of most products based on the case study are charged above the normal market price. For instance, we have witnessed more than four incidents whereby the customer is charged more than required (Mackenzie, 2007). Also, the pricing strategy is deceitful as the store does not fulfill its mandate in honoring its end of bargain.
On the other hand, products are not poorly labeled and packaged and this confuses customers. For example, a customer picks onions that have been labeled white onions only to find that they are Spanish (Mackenzie, 2007). Packaging and labeling are issues that need to be addressed to avoid complaints from customers.
With regard to the issue of promotion, the organization makes use of advertising and promotion pricing placed under some commodities (Bovay, 2008). However, upon purchasing products, the customer realizes that the price is high as there are no promotions on offer (Mackenzie, 2007). This has the possibility of making some of the customers leave the chain stores. The store is strategically placed, and hence the high customer turnover.
With regard to the external environment, the company seems to be lagging behind technologically as the pricing on the shelves is different from those at the point of sale. This is an indication that prices are rarely updated in the store hence the overcharging issues. The store operates in a market which is currently faced with an economic crunch and recession (Mackenzie, 2007). This implies that the organization is operating under certain constraints.
Analysis of Alternatives
The organization needs to revise its marketing mix. For example, it has to put in place the correct price list, package and place the products at their right place, and honour the promotions being carried out. This would reduce customer complaints, increase sales, increase customer satisfaction, and enhance consumer loyalty (Bovay, 2008).
Training employees: The organization needs to train its employees on courtesy towards customers, customer care relations, and showing respect to customers (Cook, 2011). This would reduce any abusive language hence increasing customer turnover.
Employees can be trained on time management to ensure that no idleness during working hours as witnessed in the case study (Cook, 2011). The limitation of training employees is that it is an expensive venture and takes time for the employees to reciprocate.
Install information systems: The prices can be coordinated and updated through a networked information system. This would avoid overcharging, reduce complaints and increase customer satisfaction. However, the process of installing and implementing the network information system is expensive.
Initiate corporate ethics: The organization needs to initiate corporate ethics in order to ensure that loyalty, respect, trust, and moral ethics are observed. All the employees should be trained to observe and adhere to the set corporate ethics (Cook, 2011).
Recommendation & Implementation
It is recommended that all the alternatives are adopted in the long term. However, in the short run, the organization should train its employees and revise its marketing mix as this is the major causes of the issues experienced.
Table 2: Action plan
Conclusion
Best Food Superstores need to adopt the above recommendations and implementation plan in order to solve problems facing the company at the moment. This would reduce complaints from customers, increase customer loyalty and satisfaction.
Reference List
Bovay, K. (2008). The importance of marketing mix and the 4 key mix elements. Web.
Cook, S. (2011). Customer care excellence: How to create an effective customer service. (6th ed). London; Philadelphia: Kogan Page.
Mackenzie, H. F. (2007). Best food superstores. UK: Brock University, Faculty of Business.