Question

CASE 5 PANTRY MARKETS Pantry Markets is a medium-sized southeastern grocery chain head- quartered in Tampa, Florida. Sales for the chain have been growing at an average rate of 20% per annum; the chain opened four new stores last year. Although Mr. Carl Royal, president of Pantry Markets, is modest about his achievements, the grocery chain has been increas ingly recognized as a strong competitor in several markets. "In a nutshell," Mr. Royal says, "our marketing strategy over the years has been to give our customers value for their money and known quality products. We are not like these modern discount supermarkets or warehouse grocers. We provide a nice self-service supermarket atmosphere. Being a small chain is not easy. We have to strive for a concentrated strategy among segments of the market where Pantry Markets can satisfy customer needs better than anybody else. We're looking for markets where we have a competitive advan- tage. So far we have found our market segment among the 'middles'; middle class, middle aged, and the middle stages of the family life cycle." Copyright © 1987 by Hughn Mithin com A "new" market awakening Five months ago, Mr. Royal attended a Latin Market Seminar in Miami which generated some serious thinking. In his own words: "The seminar was an awakening event. I knew these Spanish people were out there in many of my markets, but never realized how impor- tant they were. I guess I had Spanish market myopia." This case was prepared by Bert Valencia and Danny Bellenger, Texas Tech University

Answer 1

Solution 1

The major difference between Anglos and Hispanics that Hispanics had spent 30 percent more on groceries and had higher households size than Anglos. Secondly Hispanics were assumed to buy groceries from mom and pop stores.

Solution 2

Similiarity like both Latins and Anglos would browse and buy and Moreover both are neither brand conscious nor do avail generic products much.

Solution 3

Research strategy like more Latin language knowing staff should be onboarded and trained an dbetter promotion and product mixis suggested to cater Latin Americans.

Solution 4

Segmentation of markets by ethnic origin is great as it gives hyperlocal preferences and ways of buying behavior. However it must be accompanied by age and incoke and other demographic and psychographic segmentation.

Solution 5

Spanish marketing myopia can be eradicated only by having strong knowledge of Latin consumers and their purchases and what products at what prices are most lucrative to them. Optimization of merchandise mix and retail mix needs to be implemented.