NSU H.

Wayne Huizenga School of Business & Entrepreneurship

Assignment for Course: (MKT 5017 Delivering Superior Customer Value) Submitted to: Dr. William C. Johnson Diego A. Echeverri Submitted by: N00529639 729 S. Columbus Street, Alexandria, VA 22314 202-643-8885

Date of Submission: 10/20/13 Title of Assignment: Publix Case Study Customer Value Funnel

CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.

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Case Analysis 1 Publix Customer Value Funnel questions #1 and #2 1. Identify the relevant macro-environmental factors (level 1). What impact do these issues have on the focal organization? Publix Super Markets, Inc, is a Florida-based grocery chain that had over 140,000 employees in 2011 and serves one million customers everyday. (Mujtaba & Johnson, 2010) According to Mujtaba & Johnson the focus of this company is pleasing their customers and making sure everyone feels personally valued. Publix operates in Florida, Georgia, South Carolina, Alabama, Tennessee, and North Carolina. Level 1 of the Customer Value Funnel is the macro-environment, comprised of geographic and demographic sectors. For the purposes of question 1 the Level 1 relevant area for this case study is the geographic, and demography of Publix customers. The Customer Value Funnel consists of five levels for management analysis: macro-environment, microenvironment, organization, customers, and business performance. (Weinstein, 2012) Level 1 is composed of the Global Business Community. This is comprised of society, subcultures, demographics, psychographics, economic communities, geographic communities, political communities, and technological communities. The Publix approach to customer interaction is a primary focus of their approach, however this level of CVF is at the bottom of the funnel, however relates directly to the demographics, and societal concerns where Publix is situated. Publix is primarily in the south. The south is known for hospitality and politeness. The funnel model represents a downward flow, with each successive level being a component of the level above. (Weinstein, 2012) The personality and approach to customer service is seen in every level of the CVF of Publix, it is the companys southern hospitality. This is especially

important because Publix competes with chains like Walmart, Whole Foods, Walgreens and others. In this economic downturn and recession companies are competing for less. The economy is more of a reason for Publix to be certain that customers are receiving the highest value. The company also has four success drivers that they use as a mantra. The four drivers are: knowing the business, knowing the product, knowing the customer, and continuously training people. The primary success driver Publix depends on is knowing the business which is synonymous with knowing the top two CVF levels. Knowing the business is knowing where they do business, the business environment, who they do business with, and how that business is done effectively. Publixs use of the Associate Voice Survey (AVS) to make them more of a world player is also evidence of a focus on level 1 CVF. Another concern of Level 1 CVF is the technological global business community. According to Mujtaba & Johnson, Publix was the first supermarket chain to install electric-eye doors, fluorescent lighting, air conditioning, and computerized scanning technology in its stores. These technologies are commonplace and expected and in a time and when everyone uses a smart phone Publix has apps for Android and iPhone. Publix also has an effective website and mobile computing approach that allows for electronic couponing, electronic grocery lists, barcode/QR scanning, recipes, and pharmacy prescription services. Publix also has an associate self service portal called PASSport which allows associates to easily view company news, banking, benefits, insurance, grocery delivery, uniform and clothing options and more. The top value drivers are what society values, and these days society values connectivity.

As explained above the most relevant CVF level 1 concerns are geography, economy, technology and societal values. Publix operates during a time where customers are in the midst of a recession, expecting more for their money, and during a time of technological advancement. Publix has the right strategy and has been successful in applying the right approach to level 1 of CVF.

2. Discuss the market factors (level 2). How do collaboration, competition, supplier, and regulators affect the performance of the focal organization? Level 2 of the Customer Value Funnel is comprised of the market, alternately stated as the microenvironment. The microenvironment of the CVF is comprised of collaborators, competitors, suppliers, and regulators. The market and microenvironment are synonymous with the American supermarket industry. According to Mujtaba & Johnson Publix was ranked third among 46 chains nationwide. According to the same source many customers claimed that they dont mind paying a little more to shop in Publixs clean stores staffed with well trained employees. (Mujtaba &Johnson, 2010) Publix is also consistently ranked the highest among its competitors in the American Customer Satisfaction Index. In regards to collaboration not much evidence was described in the case study to discuss it in great detail aside from the collaboration internally. Publix takes care of its people, and this is especially evident when considering that employees own Publix. This ownership by the employees allows them to have skin in the game, and promotes a greater level of positive attachment to the employer. The case describes a high degree of competition throughout the areas where Publix cooperates. Alternative formats such as

supercenters value grocers, upscale food markets, and warehouse clubs are increasing. Despite competition Publix comes out on top due to their approach to doing business, focus on the customer and focus on employees. Also, despite industry trends showing that US food spending is on the rise, and supermarkets not capturing their fair share, a focus on values oriented consumers allows Publix to differentiate itself from the competition. Also, generic products that Publix sells at a lower price also allow the company to stay competitive, and give greater value. Technological changes also can give grocery stores a competitive advantage. The aforementioned was discussed above relating to Publixs use of new media and mobile computer applications, however the case study gives the example of Kroger using infrared technology. Krogers use of infrared technology allows the stores to calculate how many lanes should be open, decreasing wait time during checkout for customers.

References:

Weinstein, A. Superior Customer Value: Strategies for Winning and Retaining Customers, Third Edition. Kindle Edition.