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    H-E-B Own Brands Retail Case

    Uploaded by

    Karan Chhabra
    This document discusses H-E-B, a Texas-based grocery chain. It summarizes that H-E-B has been able to achieve higher sales per store than the national average through strong commitment to everyday low pricing, better operational efficiency, and focus on consumer value. It also discusses how Walmart disrupted the grocery industry in the 1990s through its supercenter format. Additionally, it outlines H-E-B's corporate social responsibility activities and pillars of retaining great employees, serving customers, driving sales growth, and supporting communities. The document then analyzes H-E-B's store formats and focus on own brand products to improve profitability and customer relationships.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    H-E-B Own Brands Retail Case

    Uploaded by

    Karan Chhabra
    1K views21 pages
    This document discusses H-E-B, a Texas-based grocery chain. It summarizes that H-E-B has been able to achieve higher sales per store than the national average through strong commitment to everyday low pricing, better operational efficiency, and focus on consumer value. It also discusses how Walmart disrupted the grocery industry in the 1990s through its supercenter format. Additionally, it outlines H-E-B's corporate social responsibility activities and pillars of retaining great employees, serving customers, driving sales growth, and supporting communities. The document then analyzes H-E-B's store formats and focus on own brand products to improve profitability and customer relationships.

    Original Description:

    HEB Case Analysis and solution regarding way forward for the Retail outlet

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    This document discusses H-E-B, a Texas-based grocery chain. It summarizes that H-E-B has been able to achieve higher sales per store than the national average through strong commitment to everyday low pricing, better operational efficiency, and focus on consumer value. It also discusses how Walmart disrupted the grocery industry in the 1990s through its supercenter format. Additionally, it outlines H-E-B's corporate social responsibility activities and pillars of retaining great employees, serving customers, driving sales growth, and supporting communities. The document then analyzes H-E-B's store formats and focus on own brand products to improve profitability and customer relationships.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views21 pages

    H-E-B Own Brands Retail Case

    Uploaded by

    Karan Chhabra
    This document discusses H-E-B, a Texas-based grocery chain. It summarizes that H-E-B has been able to achieve higher sales per store than the national average through strong commitment to everyday low pricing, better operational efficiency, and focus on consumer value. It also discusses how Walmart disrupted the grocery industry in the 1990s through its supercenter format. Additionally, it outlines H-E-B's corporate social responsibility activities and pillars of retaining great employees, serving customers, driving sales growth, and supporting communities. The document then analyzes H-E-B's store formats and focus on own brand products to improve profitability and customer relationships.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 21

    H -E-B O W N B R A N D S

    H -E-B V/S.IN D U STRY


    Industry operating on wafer thin

    margins of approx. 3 6 pct of sales


    H-E-B being an innovative leader
    clocked sales/store higher then
    national average
    H-E-B could achieve this due to:Strong commitment to EDLP
    strategy
    Better operational efficiency
    Adherence to consumer value

    W ALM ARTS EN TRY


    Amalgamated its discount mass merchandise

    store format with grocery store to create


    SUPERCENTER in 92
    Supercenter stores mushroomed to 888 by
    00
    Acted as a source of inspiration for Target
    and Kmart
    Created Neighborhood market format to
    focus on health and beauty items, pharmacy
    and bakery products
    EDLP at Walmart is credited to higher
    purchasing power and supply chain
    leadership

    H .E.BU TT G RO CERY CO M PAN Y


    CSR
    Activity

    Outsta
    nding
    custom
    er
    service

    Education
    and hunger
    relief

    H-EB
    Empower
    store
    manager
    with store
    philosophy

    Executives
    . gained
    inputs
    globally

    New
    prods
    .+
    Suppl
    y
    chain
    strat
    egies

    H -E-B PILLARS:TH E BO LD
    PRO M ISE

    THE BOLD
    PROMISE
    RETENTION OF GREAT
    PEOPLE

    CUSTOMERS
    Providing benefits

    Best service

    Recognising contribution

    Fresh,safe prods.

    Creating flexible work


    environment

    Low price with best


    value

    Ensuring safe working


    environment

    SALES GROWTH
    Turn ideas into
    action

    Maximize each
    stores potential
    Work towards
    achieving lower
    costs

    COMMUNITIES
    Earn community
    trust and respect
    trough action
    During crisis take
    action
    Share time and
    resources with
    neighbours

    Total 4 in number and formed 2 pct of the sales


    Featured ready-to-eat products
    Attracts people within a larger radius
    Carried huge collection of wine, beer,cheeses, oils etc

    Formed 16 pct of sales


    They operate on a low cost, low price format
    With increasing demand, these stores will be translated
    to H-E-B supermarkets

    Formed 77pct of sales


    Provided assortment based on local market needs
    Creation of MEAL DEAL to boost topline

    Central
    markets
    Pantry
    stores
    Supermarke
    ts

    H -E-B STO RE FO RM ATS

    H -E-Bs O W N BRAN D S
    Focused on improved

    profitability,sales growth and


    customer relationship
    Own Brand products offered better
    margins than national brands
    Captive manufacturing saved costs
    considerably
    Brand advertising and promotional
    expenses helped co. to clock higher
    awareness and ultimately boosting

    H -E-Bs PRO CU REM EN T PLAY

    CH ALLEN G ES FACED BY H -E-B

    Recom m endation for G lacia

    G lacia Road Ahead

    G lacia Com petition at a


    glance
    Cost/Unit

    Price/Unit

    Gross
    Margin %

    Ozarka

    $1.46

    $1.86

    21.5%

    $0.40

    Glacia

    $1.23

    $1.79

    31.3%

    $0.56

    Evian

    $4.23

    $5.49

    23.0%

    $1.26

    Aquafina

    $1.90

    $2.39

    20.5%

    $0.49

    Brand

    Profit/Unit

    G lacia Story ofContradiction

    G lacia Custom er View

    G lacia Proposed Solution

    Reposition Glacia as Domestic Spring water

    G lacia D om estic Spring W ater Advantages

    H EB O W N B R A N D
    R ES P O N S E TO
    C O M P ETITIV E P R IC IN G

    O bjective ofO w n Brand Product Line

    H -E-B O w n Brand Lost its prem ium Im age

    Q uest to Regain Lost G round

    THANK YOU

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