Introduction
Background to the study
Krexox is a store owned by a sole-proprietor and is located within the suburban Mill Run shopping center. The store has been in operation for 5 years. In its operation, the store deals with a variety of food products such as cereals. To ensure that consumers easily access the cereals, effective positioning is integrated.
The firm has attained this through incorporation of racks which are strategically located within the store. The racks are 20 meters in length, 1 meter wide and 1.5 meters in height. To increase their carrying capacity, the racks have two shelves on which the cereals are stocked. Since its inception, the firm has managed to attain an optimal performance as a result of integration of effective marketing practices.
In order to analyze the operations’ of Kerox store, the researcher conducted an observational study. The observation is conducted during the busy morning and afternoon hours for a period of three days.
Aim
The report is aimed at analyzing Krexox cereal aisle.
Scope
The report entails an analysis of Krexox store. The various types of cereals the store deals with are identified. In addition, the report also includes the various consumer behaviors identified. An explanation of the findings is also given. Finally a conclusion giving some of the marketing strategies which the firm can integrate are given. However, the report is limited in that it is only based n observation.
Types of cereals
The entrepreneur has appreciated the fact that consumer’s have diverse product requirement. As a result, the store stocks various cereal brands. From observation, it was identified that the store mainly stocks wholegrain cereals.
Some of the whole grain cereals which the store stocks include cheerios, mini –wheat, muesli, French toast crunch, golden grahams, cinnamon toast crunch, low fat granola, oatmeal crisp, oatmeal squares, shredded wheat, multi-grain chex, wheat chex, grape nuts and grape nut flakes. In addition to whole grains, the store also stocks other cereals with other characteristics such as novelty ingredients, cereals which lead to reduction of weight and also those which reduce heart diseases.
It was also observed that the cereals were stocked in various quantities while the packets were branded in different colors. From the observation conducted during the three days, it was observed that the rate of restocking the various cereals varied. The rate of restocking was measured on a scale of 1-5 where 1-2= slow rate of restocking, 3-4= medium rate of restocking, 4-5= Fast rate of restocking. The table in the appendix section illustrates the rate of restocking identified.
Consumer behavior observed
From observation, a number of consumer behaviors were identified as outlined below.
- The consumers enquire about the characteristics of the various cereals. One of the elements enquired about relate to health characteristic of the cereals.
- Consumers evaluate the quantities in which the cereals are packaged.
- The consumers enquire about the price of the various quantities.
From the three day period in which the observation was conducted, it was identified that the wholegrain were restocked daily. This indicates that there is a high demand for breakfast cereals.
Explanation of the findings
Decision to stock a wide variety of cereals would enable the store to attract and retain a wide range of customers. Decision to stock whole grains and other variety of cereals may have resulted from realization of the fact that consumer’s are increasingly becoming health conscious in their purchasing patterns (Leven, 2009, p. 23). In addition, the consumers are considering purchasing food products which have high a high nutritional value (Miller, n.d, p. 298).
Whole grain cereals are considered to be of high nutritional values. In addition, the cereals have minimum amount of fats and sugars. By packaging the cereals in different quantities, the firm is able to meet diverse customer demands. In addition, it has become possible for the firm to price its cereals. Positioning the cereals in sizeable racks enables consumers with different characteristics to easily access the cereals.
By branding the packets in different colors, the firm is able to appeal to a wide range of customers considering the diversity in consumer preferences with regard to color.
Conclusion
From the above analysis, Krexox Store can be able to improve its marketing efficiency through observation of consumer behavior. As a result, the entrepreneur can be able to influence the consumer decision making process.
For example, the firm can be able to identify the products and services which are highly demanded. This means that it will be possible for the entrepreneur to ensure that the particular cereals are in sufficient supply. In addition, gaining knowledge regarding consumer product requirement will contribute towards the firm attaining a high competitive advantage.
This can be achieved through effective branding. For example, the entrepreneur can make a decision to add value to the various cereals. This will culminate into the store attaining an optimal market position. The resultant effect is that the threat of competition arising from new entrants will be minimized.
Reference List
Leven, M.(2009). Marketing: defined, explained and applied. London: Pearson Education.
Miller, J.(n.d). Encyclopedia of human ecology. New York: ABC-CLIO.