Running Head: WEGMANS SUPERMARKET COMPANY
WEGMANS SUPERMARKET COMPANY
Wegmans Supermarket Company
Professor Robert McCarthy
Wegmans food market is a privately-owned family business. The organization was founded in 1916 by John Wegman and his brother. This grocery store chain is based in Rochester and has 70 stores in six states. The company has over 45,000 employees and annual sales exceeding $3 billion. It was named by Fortune Magazine as one of the 100 best companies to work for. This paper seeks to analyze the business strategy of Wegmans Supermarket Company. Focusing on the company’s profile it will highlight the organization’s corporate mission as well as discuss the nature of the industry using Porters Five Forces. The paper will also discuss the environment in which the company operates in and the major environmental forces that affect it. PEST analysis will help grasp the aspects in which social-cultural environment most affects the company. The paper will also examine its competitors, the market strategy, and marketing segmentation strategy. Additionally, the paper will investigate the company’s current pricing, promotion, and distribution strategy.
Keywords: Market strategy, Wegmans, Pricing, Promotion, Supermarket Company
Wegmans Supermarket Company
Wegmans is a family-owned private organization best known for retaining grocery along the mid-Atlantic region. The company was founded as a produce stand in downtown Rochester, New York in 1916 by John Wegman and his brother Walter Wegman. The brothers went ahead and bought the Seel Grocery Company in 1921 and this expanded their company’s horizon and their sales included baked goods and groceries. In the year 1930, they opened their first store and added more products such as dairy, fresh produce, and meats to their sales as well as including a cafeteria with a capacity of about 300 people. Wegmans became very popular in its markets and has developed a huge loyal consumer base. The company operates 79 stores in six states and claims a large market share in NY State, predominantly in Rochester. This paper will seek to discuss the company’s environmental analysis, the nature of the industry it is in, Wegmans’ competitors, the company’s corporate mission, marketing strategy, marketing segmentation strategy, positioning strategy, pricing, promotion, and distribution strategy.
The grocery industry is a very competitive one and for a company such as Wegmans food market, there are major environmental forces that affect how they perform and stay ahead of their competitors. Some of the political and legal issues that are affecting this industry include USDA’s strict guidelines. Despite having strict guidelines there have been issues regarding organic food fraud. This issue has brought about doubters in the organics community as more and more cases have been brought forth by consumers unknowingly buying products that have...