I. TITLE Supermarkets, The Philippine Experience II. TIME CONTEXT Late 1950s III. VIEWPOINT Supermarket Managers IV.

STATEMENT OF THE PROBLEM The Introduction of Supermarkets to the System Symptom: Cause: V. OBJECTIVES Must: Supermarkets managers commit to establishing and introducing supermarkets to the people by implementing effective strategies. Wants: Supermarkets managers aims to introduce the supermarket system of retailing to the country which is currently ruled by other types of shops. VI. ENVIRONMENTAL ANALYSIS A. Internal Environmental Analysis 1.Strengths: The capability of Supermarkets to sell even low-priced items for a few centavo less Supermarkets had adequate parking space Supermarkets carry fresh-food items which were properly priced, packed, and graded Supermarkets are kept clean and being air-conditioned meant that there was less spoilage and customers do their shopping in comfort Supermarkets equip themselves with the latest in refrigeration facilities for better food conservation Supermarkets are equipped with computer generated facilities such as RFIDS, CCTVs and also provide efficient weighing scales Marketing could be done in less time and with greater convenience The goods were properly organized

2. Weaknesses: Standard prices are implemented meaning they have no control over the prices. There are rising costs in operating a supermarket They are somehow prone to crimes such as shoplifting Self-service is no service at all. B. External Environmental Analysis 1. Opportunities The country is open for modernization of its retailing system Open for expansion and putting up more branches Offer other services such as food stalls Job opportunities 2. Threats There are many competitions including public markets, grocery stores and also other supermarkets Increase in the prices and commodities Increase in tax VII. ALTERNATIVE COURSES OF ACTIONS A. Change in product mix. 1. Advantage: Matches the consumers demands. 2. Disadvantage: Probably bad to expenses due to disposal of unused goods B. Offer membership cards to prospective customers which may provide discounts and other freebies. 1. Advantage: It will attract more customers which means they will probably have higher sales. 2. Disadvantage: It will require higher initial costs. C. Invest in advertisements 1. Advantage: It will gain popularity among customers. 2. Disadvantage: it will require higher initial costs VIII. RECOMMENDATION We recommend that they should impose the first alternative course of action which is the change in product mix. Its advantages include matching the consumers demands.

IX. DETAILED PLAN OF ACTION

Activity

Person Responsible

Budget

Time Frame

Buy goods that will match the customers demands.

Manager

P 1 000 000

1-2 weeks

Organize goods to make it easy for customers to locate their needs and add the necessary facilities such as CCTVs, RFIDs or bar code scanners, etc. Have a systematic or organized plan or flow of activities, say for one year.

Manager

P 500 000

1 week

Manager

1 week

Advertise the supermarket through flyers, posters, and the like.

Marketing

P 500 000

1 week

Provide freebies, discounts, membership cards, and the like.

Marketing

P 500 000

1 week

Employ people possessing the qualities of a saleslady or salesman.

HR (Human Resource Managers)

1 week

X.APPENDICES, HISTORY, AND FINANCIAL RATIOS The concept of introducing self service by store managers made it possible to the introduction of Supermarkets. However, some problems arise when the new concept was introduced. For example the method of self service was said to be no service at all for customers. Selling the products in a lesser price for a few centavos less and the persistence of inflation made the supermarkets gain its customer acceptance. Due to the inconvenience brought about by the Public markets and Traditional Grocery stores. The shoppers are convinces that the supermarkets are more convenient when it comes to buying groceries. Supermarkets latest refrigeration equipment and proper sanitation provides a good quality of products and service for the shoppers but it contributes to the high operation cost. Store managers are trying to solve this problem by a change in the product mix. One supermarket is trying to meet the foregoing difficulties by a change in their product mix, reversing their 60% food-40% non food mix into 40% foof-60% non food. Also, selling items would be increased by 30%, only leading brands of food items would be carried and a better selection of infants wear and beauty aids would be stocked. In the 1950s ACME Supermarkets was the most prominent, with the united supermarket next in line (both were in Ermita). But Acme Supermarket lost its leadership position after Makati Supermarket began operations in 1962. Makati Supermarket strengthened its leadership by establishing Unimart in Greenhills some years later. By 1974, these two supermarkets together had 58.44% of the combined sales total of the countrys top six supermarkets. Eventually, Acme supermarket closed its Ermita Location. The Anconan opened a small neighbhourhood store which flourished until it became the Trophical Hut Supermarket chain, the countrys fourth largest. The Azoonas sold out in 1972 end Tropical huts Food markets, Inc became part of the mercury Drug Merchandising complex.