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1 EXECUTIVE SUMMARY The following is an overview of the case analysis of Food Lion Inc The overall environment for Lion Food and its competitors is changing from a product-oriented atmosphere towards an emphasis on satisfying all of a consumers needs In order for Food Lion to remain competitive it wants to re-evaluate its future opportunities for growth without compromising its profits Industry-wide grocery chains are changing the importance on satisfying the consumer in order to keep their profit margins high Some examples include the move towards a superstore witnessed by some of Food Lions competitors Here customers have a one-stop shopping experience This is conducive to generation of dual-income families and a growing amount of adult singles with busier lifestyles who value time saving measures which also provide convenience A microscopic look at Food Lion shows that their principal strength is their low pricing strategy which gives them a competitive edge On the other hand Food Lions sales are relatively low and are slow to increase which is their main weakness Outside opportunities available to Food Lion include the consumers desire for low price shopping and convenience External threats facing the company are Food Lions competitors moving towards the superstore format in response to customers desired Our group felt that Food Lions main problem was that it had an unbalanced marketing mix It focused it efforts toward the pricing portion but failed to also accentuate the product promotion and distribution areas Symptoms indicative of this problem include their declining sales low name recognition and low quality products This causes a problem for Food Lion if it were thinking of becoming a superstore because these factors would then make it difficult for them to gain an edge in a market already dominated by other competitors with low prices With other marketing variables involved Food Lion would not survive on its low pricing strategy
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