• According to the surveys of urban and suburban customers, we concluded which features and the feature combination could make Dominick's become a strong player in Fresh Produce. • Used perceptual mapping to find Dominick's market place and which factors that customers are concerning when purchasing. We found Dominick's should place itself between Trader Joe's and Farmer's Markets. • Then we utilized SPSS to make conjoint analysis, and we found more information could help us make good feature combination. • Combined the results of two tools, we made a feature combination that can help Dominick's get bigger market share from 32% to 46%. We provided effective recommendations.

2. Agenda Introduction of our Client Description of Marketing Problem Project Goals Survey and Methodology Recommendations and Action Plan 1 4

4. Chicago-based grocery store chain

5. One of the most successful grocery chains in America’s heartland

6. Slogans are : “Ingredients for life” and “Always changing for the better”1 4

7. Our Client: Dominick’s

9. Organic food available in 82% of all retail food stores in the U.S. as of 2007

10. By 2008, nearly half of all organic foods were purchased in conventional supermarkets, club stores, and big-box stores.

11. Fruits and vegetables account for the largest percentage of organic food sales, 38 percent, and reached nearly $9.5 billion in sales in 2009, an 11.4 percent increase from 2008 sales.

12. Organic fruits and vegetables now represent 11.4% of all U.S. fruit and vegetable sales.1 4

14. Lure customers away from other Fresh Produce suppliers?

15. Maximize market share?1 4

17. Increase sales of organic and/or locally sourced fresh produce

18. Identify the best combination of features the store can offer to attract urban and suburban fresh produce shoppers

19. Attract customers from local competition1 4

20. The Survey This study fielded from May 7 - 17, 2010. The study was conducted online among a diverse sample of respondents. Respondents met the following screening criteria: Females & Males (approximately 80% / 20%) 18+ years of age Primary Grocery Shopper Live in Urban or Suburban neighborhood relative to Chicago (50% / 50%) The sample was split across two segments (Urban & Suburban) for evaluation.

22. Attribute associations

23. Identify state of the marketplace

25. Identifies strength of bundled attributes

26. Identifies consumer trade-offs relative to impact on market share 1 4

27. State Of The Marketplace Purely Prudent Dominick's Jewel Whole Foods There for a reason Excellent Value Support Local Bus/Farmer Organic Produce Limited Product Availability Low Prices Trusted Food Source Preference Very Fresh Produce Fast Food Grocer Tastefully Satisfied Not so fresh High Prices Taking a chance Location Wal-Mart Commercial production Trader Joe’s Costco One Stop Shopping Aldi Comes from anywhere Farmer’s Markets Forthe Convenience

28. Where We Want To Go! Discriminating & Prudent Dominick's Whole Foods Richly Tasteful Jewel There for a reason Excellent Value Support Local Bus/Farmer Organic Produce Limited Product Availability Low Prices Trusted Food Source Preference Very Fresh Produce Fast Food Grocer Tastefully Satisfied Not so fresh High Prices Taking a chance Location Wal-Mart Trader Joe’s Commercial production Farmer’s Markets Costco One Stop Shopping Aldi’s Comes from anywhere Not without a coupon Earthly Delights For the Convenience

29. Disruption Chart 1 4

30. Who did we talk to? Frequent produce shoppers three-fourths (78%) shop at least once a week or more often for produce 1 4

31. Who did we talk to? Few weigh their produce (31%), but tend to wait for it to be on sale before purchasing (77%) Do you weigh your own produce? Do you look for the items on sale? 1 4

32. Who did we talk to? Majority do not have children (65%) and are 1-2 person households (73%) Including yourself and any children, how many people currently live in your household? 1 4

34. Organic produce

35. Trusted food source

36. Very fresh produce

37. High pricesNote: “High Prices” may appear to be an anomaly, but in such a price-driven market, consumers are not adverse to paying more for produce that meets the above criteria. 1 4

38. Our Recommendations for Dominick’s In order to reposition Dominick’s as a leader in the organic and/or locally sourced produce market, we recommend the following actions: Increase amount of organic/ locally-sourced produce Remerchandise produce section Educate staff and customers Introduce bi-weekly farmer’s market 1 4

39. Purely Prudent Support Local Bus/Farmer Dominick's Excellent Value Jewel Whole Foods There for a reason Organic Produce Trusted Food Source Low Prices Limited Product Availability Very Fresh Produce Fast Food Grocer Preference Tastefully Satisfied Not so fresh High Prices Taking a chance Location Wal-Mart Commercial production Trader Joe’s Costco Aldi Comes from anywhere Farmer’s Markets One Stop Shopping Forthe Convenience 1. Increase Amount of Organic/ Locally Sourced Produce

40. Where We Want To Go! Discriminating & Prudent Dominick's Whole Foods Richly Tasteful Jewel There for a reason Excellent Value Support Local Bus/Farmer Organic Produce Limited Product Availability Low Prices Trusted Food Source Preference Very Fresh Produce Fast Food Grocer Tastefully Satisfied Not so fresh High Prices Taking a chance Location Wal-Mart Trader Joe’s Commercial production Farmer’s Markets Costco One Stop Shopping Aldi Comes from anywhere Not without a coupon Earthly Delights For the Convenience

41. Urban consumers are willing to pay more for organic/ locally-sourced produce! 1 Charge me more! 4

42. 2. Educate customers and staff 40% of Consumers are extremely/very interested in knowing the origins of their food 1 4

44. However, approximately 70% believed that “local” = “organic”1 4

45. Urban consumers looking for more knowledgeable employees at grocer 1 4

46. Educate employees – knowledge is power! 1 4

47. 3. Introduce bi-weekly farmers market Farmers Markets are the most preferred location for purchasing fresh produce. Convenient Shopping Midwest Local Grocery Idealgrocer Jewel Dominick’s Preference Low Prices, Limited Selection Premium Price & Products Whole Foods Wal-Mart Low Cost Leaders Costco Trader Joe’s Aldi Farmer’s Market Limited Availability

48. Farmers Market style grocer scores high in product utility 1 4

49. The prevalence of farmers markets in the Chicago-land area continues to grow… There are 43 CSA’s (Community Supported Agriculture) in the Chicago-land area alone. There are 40 different Farmer’s Markets in the City of Chicago. You can find one open 7 days a week in the various neighborhoods. There are approximately 10-12 markets that run all year long! The Green City Market in Lincoln Park being the largest. 1 4

51. Consumers are most receptive to email communications, but almost half report that they still refer to store fliers.Target heavy produce purchasers and heavy organic purchasers to receive email communications and fliers about events. Use these communications to make shoppers aware of changes to produce section and create “buzz” about farmers market events. 1 4

52. Current Market Share 1 4

53. Optimal Market Share 1 4

54. How did we reposition Dominick’s against most important features? Increased amt. of local produce and showcase goods in farmer’s market Increased amt. of organic produce Farmer’s market helps to showcase fresh produce and form relationships with local farmers and Dominick’s staff.. All of the above! Consumers are willing to pay more for fresh, quality, organic produce. Supports local farmers and businesses Organic produce Trusted food source Very fresh produce High prices 1 4