Dollar General Case Study PDF

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nitors and responds to its competition. s competition by constantly keeping its target market g its prices lower than substitutes available to have tract more possible customers. Dollar General also ket, and therefore, further monitors its competition by efining its plans. When it comes to keeping prices as that the economic factors of its customer-base is stomer’s willingness to buy. Therefore, Dollar antage by offering basic needs that customers are more offers needs and wants but at a higher price. Also, the 0, compared with Walmart’s $15 million, coupled ar General to expand at a much higher rate than its its target market of lower income families. It is able than-average annual salaries. Dollar General of its competitors that allow for challenges, ver, its dedication to whom it serves and its location is

2. What overall impact do you think the U.S. Food and Drug Administration’s pilot program will have on Dollar General?

The U.S. Food and Drug Administration's pilot program could have dire effects on Dollar General. As stated earlier, Dollar General is increasingly aware of how important economic factors are to its success, and therefore, it recognizes that a large portion of its customers obtain assistance with food, such as EBT food stamps. If individuals with said assistance are able to buy their groceries online and have them delivered or only have to pick them up, those who work significant hours of the day and are tired are more likely to buy online, instead of going to stores. Also, Dollar General’s lack of a wide assortment and variety of food will also play a factor in an individual's probability of shopping elsewhere, such as Walmart and Amazon, which offers its customers with numerous food options. This may result in a decrease of not only food-related sales but also sales in other departments. If the FDA does implement the pilot program and customers do shop online in other stores, convenience and time begin to play a bigger role in a customer’s willingness to buy. If an individual is currently purchasing groceries online from Walmart, he/she may find it more convenient and less time-consuming to also purchase toilet paper from Walmart. However, Dollar General’s lower prices may still be lower than Amazon's, encouraging customers to still shop there, and Walmart’s larger store fronts and lack of stores in small towns, may disable them from delivering to certain locations, where there is a Dollar General.

3. How should Dollar General change its marketing strategies to cope with increasing competition from larger retailers like Walmart? Despite its advantage of being predominant in certain locations, Dollar General still acknowledges that the larger retailer is still highly ranked in competition, and therefore, Dollar General should change its marketing strategies. In order to cope with increasing competition

from Walmart, Dollar General should further seek to fully know their target market and concede that the use of technology is becoming more mainstream when it comes to buying things, and other retailers have taken advantage of this, allowing potential customers to search specific products to check prices, stock, and other product information. Even the evolution of credit cards has allowed customers to buy now and pay later, and Walmart is taking full advantage of this. Therefore, in order to continue to compete with larger retailers, Dollar General must expand its online presence, which may also allow for it to expand its products, only offering some online. Also, it must invest in customer service. If customers are satisfied with how they are being treated, the retention rate will increase. Furthermore, Dollar General must utilize its connection with its customer-base as an advantage, advertising its convenience in location, household products, and price....