Developing and Operating a Retail Grocery Business Plan

Introduction

One of the most overwhelming trends in the retailing business today is the shift from brick-and-mortar to ecommerce. Amazon has revolutionized the way consumers think about shopping, and Amazon's entry into the grocery industry through its purchase of Whole Foods has also changed the way people think about getting groceries. Services offered by companies like Shopify, Instacart, DoorDash, and others now make it possible for people to order items from grocers and have them delivered to their homes or places of business. It is no longer necessary to leave one's house to get milk, eggs, bacon, or any of the household items one needs.

A great deal has changed in the past few years, and Kroger is focused on meeting the demands of a tech-savvy consumer base that now wants a delivery option. For Kroger to keep pace with other retailers in the grocery industry, it is leveraging the Internet to create a delivery service for people who want to shop for groceries online. This paper proposes strategies for a retail business regarding targeting customers and information gathering to develop the customer base; includes a plan for recruiting, training, and managing staff; discusses strategy for operational management; puts forward a name, mission, philosophy, and location for the retail store; and develops a plan for cultivating an inviting store atmosphere and a corresponding window display.

Strategies for Targeting Customers and Information Gathering

In retail there are multiple types of customers to target. These range from the spontaneous smart shopper to the low-involvement shopper, and each must be understood in order for a retailer to reach them all (Atkins, Kumar & Kim; Conlin & Labban). The best way to understand them is to gather information, which can be accomplished by surveying consumers by phone or online through social media. Another approach is to gather Big Data on consumers, which can be collected by companies like Google and Facebook. Big Data provides retailers with sufficient information about target customers' habits, interests, and ages, enabling them to develop detailed profiles.

Strategies for targeting customers to develop the customer base include: (1) using in-store displays to target spontaneous shoppers, who have no predetermined list and simply buy whatever looks good—displays, advertisements, and discounts can be used to attract their attention and encourage purchases; (2) targeting involved smart shoppers by offering a shopping membership club that allows them to earn points toward discounts the more they shop; and (3) targeting apathetic shoppers by promoting delivery through online or app-based ordering. These strategies would allow the business to develop a broad and loyal customer base.

Because the company is going after a specific type of shopper—one who is interested in wholesome, organic, and locally produced foods—most shoppers will likely be involved smart shoppers. This means that offering a club service will be the most advantageous way to attract customers and gather information. Once email information is obtained from customers and they are able to log in to the company's website, cookies can be used to track their browsing history so that more can be known about what they are looking at and what their interests are.

Approach to Recruiting, Training, and Managing Staff

The most important aspect of recruiting is identifying a large enough talent pool so that one is not limited in terms of potential staff. The second most important aspect is making sure that the right people with the right skills and characteristics are matched to the right jobs and positions in the store. This can be done by reviewing online resumes via sites like LinkedIn or Facebook, where a great deal can be learned about potential hires from the information they post on their social media profiles.

Once staff are recruited, it is necessary to train them. One of the best methods is an onboarding process that involves mentors—individuals who provide support for new hires as they learn the ropes on the job. Rather than having questions with no one to ask, new hires can turn to their mentors whenever they have an issue or need advice. The mentor is there to ensure the new hire both understands the role and is comfortable as they transition into it. Training helps the new hire understand the workplace culture, the values the company promotes, and what their duties and responsibilities are. The mentor supports morale and facilitates effective integration.

The best way to manage staff is to use authentic leadership (Boekhorst, 2015). Authentic leadership provides workers with an example of how to conduct themselves, with the leader demonstrating these behaviors in their own conduct. This helps create a cohesive and consistent workplace environment where the tone is set by the leader, who not only talks the talk but also demonstrates through their own actions the kind of values, demeanor, and character expected of all workers. When workers see their leader applying themselves to the company's stated values, they are more inclined to take those values seriously and embrace them. It will therefore be important to hire a manager who is capable of authentic leadership and who embodies the values that the company wants to foster.

Works Cited

Atkins, Kelly Green, Archana Kumar, and Youn-Kyung Kim. "Smart grocery shopper segments." Journal of International Consumer Marketing 28.1 (2016): 42–53.

Boekhorst, J. A. (2015). The role of authentic leadership in fostering workplace inclusion: A social information processing perspective. Human Resource Management, 54(2), 241–264.

Conlin, Ronald, and Alice Labban. "Clustering attitudes and behaviors of high/low involvement grocery shoppers." Journal of Food Products Marketing 25.6 (2019): 647–667.