All of the
strategies we are recommending for Kroger will require some sort of change or
adjustment in an existing function for implementation. The first recommendation for Kroger is to
implement the
Fresh Fare concept into all Kroger
locations. Fresh Fare exists on a trial basis in some
locations and expanding the concept would be of great benefit to Kroger. In
order for this expansion to be
successful, some current functions or operations
need to be adjusted. In the marketing area Kroger needs to increase
customers awareness and knowledge of the Fresh Fare idea, especially in
areas where Fresh Fare will be new. This can
be done through increased and more focused advertising in key locations. Other adjustments that need to be made
include increasing distribution efficiency since Fresh Fare relies on the
freshness of its products. There is
also the need to hire or train new
employees in order to run the Fresh Fare
operation. Kroger will also be able to
use its cash flow to its advantage in funding the expansion of Fresh Fare to so
many new locations.
The second
strategic recommendation Kroger should consider is a strategic alliance with
Starbucks and a financial institution.
The Starbucks and financial institution would be placed in existing
Kroger locations and would also require some substantial changes or adjustments
for implementation. As with the Fresh
Fare idea, marketing would need to be used in order let customers know of the
new options they now have at Kroger.
This is a great opportunity for Kroger to inform customers that they now
offer more of a one stop shopping experience.
In the production area, Kroger would need to be able to make the
necessary changes to complete successful construction of these new businesses
to their locations. Again, Kroger’s
cash flow can help in this process of constructing new add-ons in so many
different areas. Kroger employees would
also have to increase their knowledge of these new divisions in order to
successfully implement them.
More summaries about the 190 Memo 2