Fraser Valley Meats
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Fraser Valley Meats
Company Introduction:
Fraser Valley Meats have been in business for 33 years. The business was started with 4 partners for the purpose of supplying customers with the meat lockers. Local farmers would slaughter a side of beef and use the store as a freezer. In the early days when freezers were specialty products, the rentals of lockers were cheaper and accessible. As freezers became more affordable it was clear that the needs for lockers lessened.
After 12 years in business the owners sold the company to the present 4 partners who run a very competitive business. A new strategy was needed to continue to meet the needs of the local cliental. Fraser Valley Meats has grown and now has two stores. The original store is located on Alexander Ave. in Chilliwack and the second store is located on Vedder Rd. The first store supplies 17.6% of the meat market and its second store makes up to 4.7% of the market for F.V.M. to supply 22.3% of the total meat market in the lower mainland. They also supply hospitals nursing homes and non-chain restaurants. F.V.M. also have a delivery truck 4 days a week that travels to the interior all the way to Prince George.
They dont have a mission statement but run their business on great customer service, quality products at competitive prices. F.V.M. are very community minded and pride themselves on a good image, The company is very aware of the competition by price checking once a month and surveys once a year to ensure the needs of the customer are being met. Competition is always important to analyze how your business is positioned in the market and how to gain the competitive advantage.
Fraser Valley Meats and the Competition:
Fraser Valley Meats holds 22.3% of the market share in the lower Fraser Valley. They sell high quality meat at a reasonable price. Their niche in the market is their marketing strategy: customer satisfaction, total company effort, at a profit. Customers shop there because the meat is always fresh, the location is convenient, the prices are comparable, and they have friendly staff.
Save-On-Foods holds 24% of the market share in the lower Fraser Valley. Their specialty is Angus beef products, which they promote on a regular basis. They realized that their butchers needed to have a more personal approach, so they encourage them to interact more with the customers. The butchers now make themselves available at all times for specialty cuts, and for advice.
Safeway holds 21.2% of the market share in the lower Fraser Valley. Their specialty is Gold Seal chicken, which they promote on a regular basis. However their butchers are completely separated from the customers by glass walls. Safeways approach is quite different from its competitors and does not encourage interaction with the customers. Although, the rest of the employees are very friendly and interact positively with customers on a daily basis.
Superstore holds 17.2% of the market share of meat sold in the lower Fraser Valley. Their focus is more on mass selling than personal selling. They are more concerned with price and selling quantity. Consumers find them convenient because you can get all of your households needs in one stop.
Costco holds 5.4% of the market share of meat sold in the lower Fraser Valley. Their focus is more on selling bulk packages. People that live in Chilliwack do not find it very convenient, because it is located in Abbotsford. Customers that live in the area like the selection of meat products because they are pre-packed and thinly sliced.
Johnsons Meats holds 3% of the market share of meat sold in the lower Fraser Valley: primarily selling wholesale, although they do have retail outlet. They are a wholesale, retail store that supplies F.V.M with all of their pork products. Johnsons Meats is considered to be the best pork in town.
IGA holds 2% of the market share of meat sold in the lower Fraser Valley. Their regular customers are usually situated in the area, and like it because it is convenient.
M&M Meats holds 1.5% of the market share of the meat sold in the lower Fraser Valley. They are more of a specialty store: that sells pre-made, pre-packed food, which you can just throw in the oven.
The others hold 3.4% of the market share of meat sold in the Fraser Valley. These consumers go wherever the sales are, do not have a preference to where they shop.
Buying Behavior
There are different aspects to F.V.M buying behavior. They provide different meat and buy it in different ways. The poultry is bought from sunrise and the price is good and consistent service so minimal time is needed for reordering. The beef is bought from different suppliers. If F.V.M. buys from just one supplier the prices go up and competition isnt challenged. Some negative aspects to this way of channel buying is more time spent on ordering and negotiating the terms. But the product is quality and prices are competitive.
F.V.M is also a supplier to hospitals, nursing homes, and restaurants to name a few .To supply hospitals it is a 6-month contract. Any interested suppliers are faxed a sheet of what the hospitals require and the supplier faxes back a list of prices to fill the order. The suppler is chosen on the basis of price and ability to deliver.
F.V.M. also has sales men that help restaurants and institutions buy what best suits their needs. When Menno Terrace opened up they contacted F.V.M to provide the meat for them. A sales man came out asked to see the menu and explained the ordering process .If not enough meat was bought or something was forgotten in the order F.V.M has same day delivery or morning of the next day, to rectify the situation. F.V.M is also an intermediary due to buying meat from supplier, repackaging it and selling it to large institutions or to the general public.
Segmentation
And The
Firms Target Market
F.V.M has several different target markets because they assume different roles. First they are a retail business that sells to the general public that eats meat. Within that market some segmentation can be targeted such as the health conscious consumers who prefer poultry and fish or leaner cuts of meat. Now that its summer diehard barbequers like the convenience of marinated meats and to the busy consumer already prepared meats are important to minimize cooking time. Some examples of products targeted