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![Page 1: Case Study](https://reader030.fdocuments.us/reader030/viewer/2022020115/5404902bdab5ca4a768b4578/html5/thumbnails/1.jpg)
Cater to an Underserved Market Segment
Presented By Sudheer Reddy Khushboo Kumari Madhusudhan M R Ramu v
&
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INTRODUCTION
Dollar General Founder J L Turner CEO: Richard Drelling
Headquarters: Goodlettsville Tennessee, U.S
No. Of Stores: 8,577
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DOLLAR GENERAL SLOGAN
Save TimeSave MoneyEveryday
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FAMILY DOLLAR Founded 1959 Founder: Leon Levine
Headquarters Matthews, North Carolina, U.S
No. of stores: 6850 aprox
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FAMILY DOLLAR SLOGAN
My Family,My Family Dollar
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STRATEGY Focus on low-income communities
Open the stores near to their homes
Provided uncrowded parking lots and avoid long checkout lines.
Open a cluster of stores in geographic area
Reduce their advertising to converted to an everyday pricing strategy.
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DISCUSSION QUESTIONS
Q1. What is the target market segment for extreme value retailers like Dollar General and Family Dollar ?
Rural and Urban shoppers , Low to middle income young families , Ethnic groups, and Older customers with fixed incomes.
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Q2. Why are customers increasingly patronizing these extreme value retailer stores ?
A. Because these provide good quality merchandise at lower prices without hassles of crowds and lines.
B. These stores are available at every nook and corner where big retailers like Wall Mart find it financially inviable to operate. And local residents find it comfortable to shop close to their homes rather than driving 30 min’s to a discount store located in a larger town.
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Q3. How do extreme value retailers make a profit when their prices and average transactions are so low?
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Q4. Can extreme value retailers defend themselves against general merchandise discount retailers like Wal-Mart, or will Wal-Mart eventually drive them out of business ? Why ?
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THANK YOU TO ALL MY FRNDS
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