Exercise on Competitiveness

Kwik Save remains a competitive business compared with The Gourmet. Although Kwik Save sells its products at much lower prices than The Gourmet does, its products do not cost nearly as much to produce. The products are sold in bulk, but the quality is not as high. This however does not effect the profit margin. Although the profit margin is lower the sales turnover makes up for the difference. Kwik Save has a Low and Narrow Range of Brands to offer to its consumers. This means that Kwik Save is only interested in producing successful and fast selling Brands.

This is an advantage compared to The Gourmet because it is not wasting precious shelf space on non- selling products. Kwik Save does not have its own Personal Service. This is not a problem because Kwik Save might have other stores situated around the country. The Gourmet being a smaller business might not have another premise to sell to its products to customers, so the option of have a Personal Service might bring more sales. The market segment that Kwik Save has aimed at is for people earning at a lower income. This is suited for everyone.

This means that people who are high or low-income earners can shop at Kwik Save. Low prices would be an attracting factor for other people. Retailer: The Gourmet The Gourmet offers a smaller service to its consumers, than Kwik Save. The products being sold to the public are of a Higher Price and Higher Quality. The reason behind this is because; the products sold take more time and higher level of skill to produce. There is a significant difference in the quality between the products being sold at Kwik Save and The Gourmet.

The products in Kwik Save are sold in bulk, so quality is not important it’s fast selling Brands. The Gourmet attracts their customers with the Range of Brands and Quality not Quantity. The Gourmet is a different business altogether and with a Range of Brands it has a lot of High Quality Variety to offer. This would prove a pulling factor due to the choice of class products. The Gourmet being a smaller business than Kwik Save offers a personal service, which can help add to the profit margin/income.

This is an added value, as people do not always want to travel. Shopping from home has become a popular habit for the public. The market segment that The Gourmet has aimed at is for people earning at a higher income. This means that people who have lots of money can spend on the luxury products that are expensive. Nowadays people are interested in expensive products. They believe that it helps their image. The Gourmet would be an attracting factor for these people.