Publix Final

2015

Tammy Jimenez, Tifphanie Stafford,

Priyank Patel, Jennifer Callaghan

Publix Super Markets – Tallahassee, Fl.

9/8/2015

Publix in College Town


RESEARCH – Priyank Patel

George W. Jenkins had a dream to create a grocery store that reflected a set of values that were

different from all other competition stores. These values would be passed on to all associates who work at

Publix. In 1930, Jenkins decided to open the first Publix in Winter Haven, Florida where he focused on

customer service that was unparalleled to none. His idea of treating the customers and the employees as well

is still part of Publix’s operation methods. In order achieve the highest output from his employees, Jenkins

decided to use the principle of profit sharing where part of the profit made every quarter or at the end of the

fiscal year, was given back to the employees (over 176,500) in the form of bonuses. Free shares that can help

build up retirement funds are awarded annually to all the employees. Also, Publix offers its employee’s

discounts in products they carry obtain health insurance as well as further their education. This is a major

reason why people love working for Publix, a fact that was proven with Publix being continuously ranked as

one of Fortune’s 100 best companies to work for. Since the opening of the first store, Publix has become the

most profitable private grocery store in the USA

Currently, Publix has over 1000 locations in the following states; Florida, Georgia, Alabama, South

Carolina, North Carolina and Tennessee. Florida ranks first in number of locations and Publix plans on

increasing their presence in North Carolina even more. For convenience purposes, stores where there is a

huge presence of Publix, some stores are within a few miles of each other.

Publix offers a variety of grocery goods, health and beauty care products as well as various other

services like State Lottery and Western Union. For the categories of products mentioned above, Publix carries

most popular brand of items as well as its private “Publix” branded items which help them compete

strategically since they process of manufacture them in their own manufacturing facilities in Georgia and

Florida. Majority of the products that Publix offers for its grocery and deli department are natural and less

processed compared to the ones offered by its competitors.


RESEARCH – Priyank Patel

Publix gets a lot of criticizing from Wal-Mart which points out they are cheaper than Publix but in

return, Publix counters this claim by offering BOGOs (Buy One Get One) and special deals on a more products

that help to save customers some money. The goods produced in their manufacturing plants are cheap which

add to the competitive advantage that Publix enjoys over its close competitors. It should be kept in mind that

whereas Walmart highly focuses low prices, Publix stresses on friendliness, helpfulness and motivated staff.

For a company that holds such high standards for its customers and employees, Publix finds it difficult

to stay away from helping its communities through numerous causes. It actively supports non-profits

organizations in different fields. Through causes such as March of Dimes, Special Olympics, Food for Sharing

and Food for All, Publix utilizes its loyal customer base to raise funds. While at check out, the customers are

requested to make voluntary donations for the specific causes and the money is added to the customers’ total

bill. Upon receiving the donations, Publix ensures that the goods reach the food banks packed in such a way

that the food banks do not incur any additional expenses in trying to repack it. The food is distributed to the

needy families in time and this is repeated regularly. Publix has excelled thoroughly in helping raise money for

various causes and this is evident through the fact that it was ranked as the second best giver in March of

Dimes in 2013.


Target Audiences – Tifphanie Stafford

The primary target audiences for the Publix Caper are college students who live in the geographic area of

college town. The secondary audience are professors, administrators, work people, all in walking distance and

growing; an approximate total of 4,000 individuals. The average age of the college student is 21 and extends to

college professors and administrators of no specific age.

College students are trendsetters, often focused more deeply on their friends and family—and their cash—

than on their studies. So even when they’re not making purchases, they’re influencing them. Students are

smarter and savvier than their reputation lets on, and they’re teaching enterprising marketers some valuable

lessons about their future customers. College students don’t make a lot of money but they spend a lot. They

spend for electronics, Spring Break vacations, partying and social time (Source: 2015 Business.com Media,

Inc., Marketing to College Students). Tuition and books are at the expense of parents predominately; money

that is earned through part-time jobs or financial gifts received, are additional resources that college students

also utilize for their reckless spending habits. Below is an example of college students spending habits:

(Source: College Students Spending Habits; Survey results 2014)

73% of students are spending $6,000 or more each year on basic living expenses (groceries, rent,

utilities, and gas); more specifically, 14% spend $18,000 or more.

-66% of students are spending $1,200 or more each year on entertainment (bars, restaurants, live music,

media, alcohol, marijuana, etc.); more specifically, 21% spend $3,000 or more and 6% spend $6,000 or

more.


Target Audiences Cont. – Tifphanie Stafford

The Secondary audiences’ professors, administrators and working individuals, fall into several age

groups. These individuals are more likely late Millennial, Gen X (34-47), Baby Boomers (48-66) and some Silent

67+. These mature savvy shoppers are known to be bargain shoppers, coupon clippers and BOGO (buy one get

one) buyers, paying close attention to the weekly sales ad. It is evident that they pay close attention to food

choices and food shopping experiences. Health and Wellness for the middle age shopper is toward the top of

their shopping list. When compared with younger and older generations, Boomers, in general, are slightly

more likely to say they shop fewer stores for food than Millennial and Gen-X consumers or the older Silent

generation of consumers (Source: Boomer Shops Atlanta: Publix, The Fresh Market and Kroger).

The Secondary audience, also spend much of their time searching for more time in the day. It is

imperative that they juggle several tasks at one time and are always in need of convenience. For example,

Boomers remain to be on the lookout for ways to enhance themselves or increase the quality of their lives,

they will have a substantial impact on the food and beverage marketplace. Their shifting and evolving

behaviors and purchase choices will continue to redefine and reshape the brands, products and services they

are most willing to pay for and invest in. They will continue to challenge the traditional stereotypes of what it

means to grow older.


SWOT Analysis – Jennifer Callaghan

The need of basic necessities makes the supermarket industry a very lucrative one. Publix’s strengths

include their customer service and inviting atmosphere. They have become well-known and well-respected

through their quality management and marketing tactics. Consistent throughout their stores are the

personable, knowledgeable employees, which significantly strengthen their brand and solid reputation.

Although many feel Publix is the company that sets the standards for the industry, they do recognize the areas

that can be improved upon. They are also aware of potential threats, such as rising competitors, and future

opportunities, such as expansion.

Publix prides themselves on their training and there seems to be a direct correlation between their

process and the quality of their employees. The amount of commitment from their employees is highly

noticeable, especially in the amount of full-timers, more than the industry average. The atmosphere of each

and every location is equally as important to the company. Cleanliness and organization are vital to maintain

the environment they place so much value on. They continuously strive to live up to their motto and provide a

supermarket “where shopping is a pleasure”. Another aspect that sets Publix apart from other supermarkets is

their private label brand products and in-house manufacturing units.

Any business experiences areas of weakness which can be improved upon. Publix is no different, and

they recognize these problem areas and work diligently to better them in any way possible. They acknowledge

that competition is inevitable and that because they have different focus areas, they are often able to offer

lower prices to their customers. Another weak spot for Publix is their lack of diverse locations, only available

currently in five states in the United States; unlike other supermarkets, such as Wal-Mart. Convenience is also

a factor that competitors seem to have the upper hand on, since Publix has limited hours of operation.


SWOT Analysis Cont.– Jennifer Callaghan

Publix recognizes the issues will not be resolved overnight, but they can be viewed in a more positive

light, as opportunities rather than weaknesses. Geographic expansion is one aspect that Publix has already

been working towards over the past few years. Another opportunity that has already been set in motion is

their private label brands, which can make for competitive pricing and increase profit margins. With so many

customers already loyal to the brand, it is important to maintain the standards set and continue to reinforce

the importance they place on providing quality service.

While focusing on the opportunities available for the company is vital, it is extremely important to be

mindful of potential threats as well. Wal-Mart, Costco and Sam’s club not only offer the same types of

products as Publix at a competitive price, but they sell items not available at Publix such as clothing and

furniture. These three stores pose a threat in the sense that they are one-stop shops and have the ability to

make a customer’s shopping experience more convenient.

It would be unrealistic for Publix to deny any weaknesses or threats and just highlight their strengths

and opportunities. They pride themselves of specific aspects of their company, but also make it abundantly

clear that there is always room for improvement. They care about the customer experience above all else, and

appreciate their feedback immensely. As long as they continue to make their customers their number one

priority they will continue to grow and prosper as one of the top contenders of the supermarket industry.


SWOT Analysis Cont. – Jennifer Callaghan

Strengths

Quality Customer Service

Cleanliness & Organization

In-house Production

Weaknesses

Competitive Pricing

Limited Location

Convenience

Opportunities

Expansion

Private Labels

Brand Loyalty

Threats

Versatile Warehouse Competitors

Expanding Competitors


TACTICS – Tammy Jimenez

Publix ranks #8 as the largest privately owned super market and #84 as America’s Best Employer per

Forbes magazine. This private chain has increased sales due to the rise in same-store sales, inflation of food

prices and customer traffic increasing all have a part in the proof that the economy is recovering. Publix has

1080 retail food supermarkets with over 700 located in Florida alone. Other stores are in the states of

Alabama, Georgia, North and South Carolina and Tennessee. The franchise has its own manufacturing plants in

the state of Florida and Georgia for baked items, dairy, deli items, along with other freshly prepared items.

The main competition for Publix in the southern region is Kroger, and Wal-Mart Stores in North

Carolina. Kroger bought out Harris-Teeter so that it may increase its presence within Publix’s market area. In

addition, BI-LO Holding is another competitor that has acquired Winn Dixie’s and Sweet bay Supermarket.

Therefore, Publix is in the running as they continually open new stores throughout the regions and increase

their market share in the southeast.

Publix is here to align our business with the needs of the community. The purpose of this section is to

provide marketing strategies and tactics which help Publix increase sales, customer count, items per customer

and sales per customer. The execution of plans for the College Town store will promote sales and community

involvement. Based off of the marketing research, opening a store in the College Town area will provide value

to our customers and bring long-term profit to Publix.

Promotional activities will be set for the grand opening of the Publix in College town. As part of the

grand opening we will set forth a strategic plan to provide as much coverage to the target audience and

connect with the community.


TACTICS Cont. – Tammy Jimenez

The following will be in store promotions:

The first 500 customers will receive Publix reusable/eco-friendly grocery bags

The first 50 customers to purchase $75 in groceries will receive a $25 Publix gift card

The Deli will have samples of different meats and cheeses

The Bakery will have samples of different baked items

My Apron will be set throughout the store for different food making ideas

There will be registrations for $50 gift cards, cakes, deli platters and fruit baskets

All items will be given away daily for the first week of the grand opening

During the first week of the grand opening, registration for free delivery of grocery items within a half

mile radius of the College Town Publix for the first three months

The following will be platform promotions:

Promote “Grand Opening – College Town Publix, Tallahassee, Florida” on the front page of Publix

website and landing pages for the Tallahassee Area.

Promote “Grand Opening – College Town Publix on all social media sites: Facebook, Twitter, LinkedIn,

and Google+

Traditional media, local weekly Publix sales paper front page will list Grand Opening for Publix College

Town

Traditional media, 30 second radio advertisements of the Grand Opening – Publix College Town

Traditional media, mail out through the USPS to target the College Town residential and business area

with advertisement flyer of the Grand Opening – Publix College Town


Bibliography

Vault, Inc. (n.d.). Publix Super Markets, Inc. (2015). Retrieved September 8, 2015.

Chen, L. (n.d.). Forbes America's Best Employers 2015 Ranking. Retrieved September 8, 2015.

Marketing to College Students. ( 2010, December 22) © 2015 Business.com Media, Inc.

http://www.business.com/market-research/marketing-to-college-students/

College Students Study Habits. (2014, July, 2) © 2015 Themify WordPress Theme.

http://studybreakscollegemedia.com/2014/college-students-spending-habits-survey-

results/#sthash.QhlAdtne.dpuf

Publix Final

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