Design of a Research Proposal Smith’s Market

Business Research – BUS3595

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Design of a Research Proposal Smith’s Market

The Goal

• Smith’s would like to drive 2.2 million dollars in sales from the Lasalle location within the next three years by serving roughly 50,000 customers per year.

Background and Problem Definition

• Smith’s Markets want to stop sales decline and stagnation at their New Sudbury location.
• Smith’s Markets [Lasalle] retail location has the capacity of doing much more business. 
• The Lasalle store is projected to produce approx. 1.4 million in revenue for this calendar year [2018].  Annually, Smith’s Markets [Lasalle] about 32,000 buying customers
• Their average transactions are as follows

• 2011, $32.00
• 2012 $34.98
• 2013 $37.82
• 2014 $43.75
• 2015 47.34
• 2016 $49.15
• 2017 $50.91
• 2018 YTD 47.4

• Average price per item YTD is $15.80 – Average units per transaction is 3 units.
• The Lasalle store have enjoyed steady growth since 2011.  [10 to 20% growth a year]

• 2018 was the first year of declining sales in a long time. 

Potential Factors affecting stagnation

• Contributing factors to the decline

• Major beef price increase in 2016-2017, scared/shifted people away from beef in general and towards consuming other proteins.
• Smith is a premium brand in a premium market [beef is expensive and Smith is the most expensive beef choice].
• Trends towards eating perceived healthier choices such as fish, seafood and chicken.
• Increases in cost of living and other uncontrollable primary expenses such as gas and insurance has left less disposable income for items such as premium beef.
• Costco and Real Canadian Super Store are "value", low cost retailers who have moved 15 minutes from the Lasalle location.

Differentiating factors. Competitive benefits, features and advantages of the Smith’s

• Family, independent business.
• Smith’s Markets own line of pickles and preserves
• They have many new pieces of state of the art equipment.
• They have the ability to further process meats such as sausages, cured meats, burgers and so on.
• Smith’s has worked in partnership with one [1] pork producer for over 40 years.
• The retails shops are considered high service, high customization and a knowledge forward shopping experience.
• The Lasalle location is 4500 sq. and Four Corners is 9000sqft.
• Four Corners opened in June of 2001 and Lasalle opened in 1970.
• Smith’s is a leader and trendsetter on the local seen.  "
• Product features, advantages and benefits. No added hormones, never fed antibiotics, small herd high care and Foodland Ontario certified.

Sections to Include in the Proposal

• Purpose of the Proposed Research Project
• Type of Study
• Definition of the Target Population and Sample Size
• Sample Design and Data Collection Method
• Specific Research Instruments
• Potential Managerial Benefits of the Proposed Study
• Proposed Cost for the Total Project
• Profile of the Research Company Capabilities
• Optional Dummy Tables of the Projected Results

Additional Question

1. List five additional questions that you would ask the decision makers at Smith’s if you were granted a face to face meeting