Supervalu Vertical Integration
1. What type of distributor is SUPERVALU?
SUPERVALU is one of the largest companies in the companies in the U.S. grocery distribution channel (Page 297). As the one of the largest distributors of grocery distribution, SUPERVALU would be classified as a channel captain distributor. Our Marketing Essentials textbook defines channel captain as the dominant member of a channel of distribution (Page 269). SUPERVALU would be adopting an administered channel arrangement because they are a channel captain. Our Marketing Essentials textbook defines administered channel arrangement as an arrangement between intermediaries such that a dominant member of the distribution member of the distribution channel in terms of size, expertise, of influence coordinates the tasks of each member in the channel (Page 269). This is the type of distributor SUPERVALU is.
2. Describe vertical integration at SUPERVALU. Vertical integration is defined in our Marketing Essentials textbook as the acquisition or merger with an intermediary in the channel that is either a supplier or a buyer (Page 270). SUPERVALU has grown to have networked with retail chains. This includes CUB FOODS, FARM FRESH, HORNBACHERS, SHOP 'N SAVE, and SHOPPERS (Page 297). SUPERVALU has also bought Rainbow Foods stores. They have also had to sell five of its grocery store chains. SUPERVALU has a broad and growing network of grocery stores to do …show more content…
Where would you place SUPERVALU on the wheel of retailing? Why? The wheel of retailing illustrates the evolution of retailing (Page 288). I would place SUPERVALU in the full-line discount stores such as Wal-Mart. SUPERVALU works on low, affordable prices for higher quality products. SUPERVALU retail stores are very similar to Wal-Mart as a retail store. Even though SUPERVALU stores are not as common as Wal-Mart, the layout and of the stores and products are similar. This is why I would place SUPERVALU in the full-line discount stores on the wheel of
SUPERVALU is one of the largest companies in the companies in the U.S. grocery distribution channel (Page 297). As the one of the largest distributors of grocery distribution, SUPERVALU would be classified as a channel captain distributor. Our Marketing Essentials textbook defines channel captain as the dominant member of a channel of distribution (Page 269). SUPERVALU would be adopting an administered channel arrangement because they are a channel captain. Our Marketing Essentials textbook defines administered channel arrangement as an arrangement between intermediaries such that a dominant member of the distribution member of the distribution channel in terms of size, expertise, of influence coordinates the tasks of each member in the channel (Page 269). This is the type of distributor SUPERVALU is.
2. Describe vertical integration at SUPERVALU. Vertical integration is defined in our Marketing Essentials textbook as the acquisition or merger with an intermediary in the channel that is either a supplier or a buyer (Page 270). SUPERVALU has grown to have networked with retail chains. This includes CUB FOODS, FARM FRESH, HORNBACHERS, SHOP 'N SAVE, and SHOPPERS (Page 297). SUPERVALU has also bought Rainbow Foods stores. They have also had to sell five of its grocery store chains. SUPERVALU has a broad and growing network of grocery stores to do …show more content…
Where would you place SUPERVALU on the wheel of retailing? Why? The wheel of retailing illustrates the evolution of retailing (Page 288). I would place SUPERVALU in the full-line discount stores such as Wal-Mart. SUPERVALU works on low, affordable prices for higher quality products. SUPERVALU retail stores are very similar to Wal-Mart as a retail store. Even though SUPERVALU stores are not as common as Wal-Mart, the layout and of the stores and products are similar. This is why I would place SUPERVALU in the full-line discount stores on the wheel of