A&R Supermarkets, Inc. by Taylor Davis

Running Head: Client Analysis of A&R Supermarkets, Inc.

A&R Supermarkets, Inc. Taylor Davis Auburn University

Client Analysis of A&R Supermarkets, Inc. 2 Mission The mission of A & R Supermarkets, Inc. is to provide customers with a quality shopping experience. The company strives to provide “the best products at the best price with the best customer service possible” (B. Davis, personal communication, September 19, 2014). History A&R Supermarkets, Inc. is a family-owned chain of grocery stores whose goal is to serve the local community by providing quality products at low prices. Founders W.W. Alvie and Martin Ringelberg established A&R Food Store in 1935 with the opening of the first store in Birmingham, Alabama (P. Davis, personal communication, September 19, 2014). During its early years, A&R Food Store was one of the most successful grocery companies in Birmingham, with five stores located throughout the city. Following the bombing of Pearl Harbor in 1941 and the United States’ involvement in World War II, the availability of workers and consumer demand for products were drastically reduced. These challenges forced the company to close three stores. In 1943, John L. Davis, Sr., then an assistant manager, bought A&R Food Store from Alvie and Ringelburg and renamed it A&R Supermarkets, Inc. As World War II came to an end, soldiers returned and the U.S. economy recovered. Davis decided to sell one of the remaining two stores and use the capital to construct a brand new store (P. Davis, personal communication, September 19, 2014). Stores in Clanton, Brent, Selma, and Calera, Alabama were established during the 1950’s. With the exception of the Selma store, which closed in 1971, all of these stores remain open today. During the 1980’s, the company transitioned leadership from John L. Davis, Sr. to his two sons Donald Davis and John L. Davis, Jr. During the 1990’s, competition from larger grocery

3 Client Analysis of A&R Supermarkets, Inc. chains forced the company to transition its format in most locations from a conventional grocery store to a Cost Plus 10% (P. Davis, personal communication, September 19, 2014). In 2004, A&R Supermarkets, Inc. added stores in Leeds, Alabama followed by one in Tarrant, Alabama, in 2013. In 2012, the next Davis generation assumed leadership as Phillip Davis, son of Donald Davis, was named president and Bill Davis, son of John L. Davis, Jr., became the secretary/treasurer (P. Davis, personal communication, September 19, 2014). A&R Supermarkets, Inc. is currently a thriving business with five stores located throughout central Alabama. Products A&R Supermarkets, Inc. offers a large variety of products and services in each of its stores. These products include: • • • • • • • • •

Non-perishable groceries: e.g. dry goods, canned goods, breads, and drinks; Meat: e.g. poultry, pork, and beef; Produce: e.g. fruits and vegetables; Dairy: e.g. milk, cheese, butter, yogurt, and eggs ; Frozen products: e.g. microwavable meals, deserts, fruits, vegetables, and meat; Non foods- e.g. paper and plastic products, laundry supplies, cleaning supplies, and pet supplies; Tobacco: e.g. cigarettes, loose tobacco, cigars; Beer and wine; DSD Groceries: e.g. healthcare products and personal hygiene products (P. Davis, personal communication, September 19, 2014).

Internal Structure A&R Supermarkets, Inc. maintains a vertical organizational hierarchy, meaning that information flows from company executives to store managers and eventually to general employees. A&R Supermarkets, Inc. currently employs approximately 160 employees who range

Client Analysis of A&R Supermarkets, Inc. 4 in age form 16-71. Full-time employees comprise 65 percent of the company’s workforce (P. Davis, personal communication, September 19, 2014). A&R Supermarkets, Inc.’s five grocery stores are supervised by a central corporate office located in Calera, Alabama. Working in the corporate office is President Phillip Davis and Secretary/Treasurer Bill Davis, both of whom own all of the company’s stock and possess all executive decision making powers (P. Davis, personal communication, September 19, 2014). All financial and staff operations are coordinated through this office. Phillip Davis manages the hiring and terminating of management personnel, assesses the company’s overall performance through weekly store visits, and monitors outside forces and competing grocery stores to strategically determine how the company should progress. Phillip Davis also manages any legal disputes among customers and employees and manages employee issues that cannot be resolved at store level. Bill Davis oversees the Calera store and consults on corporate financial ventures (P. Davis, personal communication, September 19, 2014). Each store maintains an executive manager that reports directly to Phillip Davis. Assistant managers, produce managers, and meat market managers report to the executive store manager allowing any employee concerns to be addresses at the store level before reporting to Phillip Davis. Both produce and meat market managers are responsible for staffing the departments. All other employee management is facilitated by executive managers (P. Davis, personal communication, September 19, 2014). Each store conducts its own product ordering, inventory, and daily bookkeeping, all of which are reported to the corporate office (P. Davis, personal communication, September 19, 2014).

5 Client Analysis of A&R Supermarkets, Inc. Internal Culture The internal culture of A&R Supermarkets, Inc. is best characterized by openness and loyalty. Nearly sixty percent of the company’s full-time employees have worked there for more than ten years. For many employees, a job with A&R Supermarkets, Inc. was their first, leading to a strong sense of loyalty shared by both the company executives and employees. This loyalty often translates into long-term employment. A&R Supermarkets, Inc. also strives to provide employment opportunities to a variety of prospective employees. As a result, A&R Supermarkets, Inc. employs workers from diverse educational levels, skills sets, and cultural backgrounds (P. Davis, personal communication, September 19, 2014). This workplace diversity creates an atmosphere of acceptance and openness between employees and management. A&R Supermarkets’, Inc. overall atmosphere is family-like. Employees respect and care for each other and are often engaged in each other’s lives outside of work. This also contributes to the high employee retention rate. Management’s View of PR The management of A&R Supermarkets, Inc. maintains a very positive and open view of public relations, which is demonstrated through its regular interactions with the company’s three primary publics: employees, customers, and the community. Phillip and Bill Davis strive to maintain positive relationships with employees through weekly store visits. Company leaders know employees by name and are available for employees to communicate ideas and concerns. Management makes an effort to be attentive to extraordinary circumstances in employee’s lives. It is not uncommon for management to visit employees in the

Client Analysis of A&R Supermarkets, Inc. 6 hospital or provide food to employees who have recently lost family members. Good deeds, such as reporting theft, are recognized and encouraged as positive reinforcement. A&R Supermarkets, Inc. executives know that strong employee satisfaction carries forward to customer satisfaction. As a result, the company strives provide an open work environment. A&R Supermarkets, Inc. engages in positive customer relations. Employees often know customers by name and strive to provide the best customer service possible. Special store events, such as free pictures with the Easter Bunny and truckload sales, are planned to engage customers at various times throughout year. In an effort to tailor customer needs, the meat market specially cuts meat to the request of the customers. Out of devotion to their customers, company officials have been known to open stores during hurricanes and snowstorms in an effort to accommodate customer need for basic supplies (P. Davis, personal communication, September 19, 2014). A&R Supermarkets, Inc. actively participates in its surrounding communities. Bill Davis, the company’s secretary, serves on the Chamber of Commerce in Calera where the corporate office is located. Participation in Chamber events is one way that the company remains knowledgeable of community needs. A&R Supermarkets, Inc. participates in fundraising initiatives for local high schools and community organizations by allowing them to use company property for fundraising events. In an effort to enhance its community, A&R Supermarkets, Inc. also financially supports various community organizations such as the YMCA and Humane Society (P. Davis, personal communication, September 19, 2014). Each A&R Supermarkets, Inc. store has its own Facebook page and website where weekly ads and store information are available. Managers use Facebook to recognize employees and customers (P. Davis, personal communication, September 19, 2014). Examples of this are

7 Client Analysis of A&R Supermarkets, Inc. posting about the employee and customer of the month and acknowledging the death of longtime customers. A&R Supermarkets, Inc. does not participate in any other forms of social media. Image A&R Supermarkets, Inc. is well perceived among its publics. The company maintains a positive image due to consistent meaningful involvement in employee, customer, and community initiatives. Company executives and employees work diligently to preserve its image of quality products and services and community involvement. Financial Status A&R Supermarkets, Inc. remains a financially sound corporation, reporting profits for most of its existence. The early 1990’s represent the only time the company experienced financial difficulty, resulting in the transition to Cost Plus 10% format. However, A&R Supermarkets, Inc. quickly recovered following the change, with the company’s annual sales reporting thirteen percent increase in 2014 over 2013 (Annual Report, 2014). Current Reputation A&R Supermarkets, Inc. has a reputation of quality and friendliness. The company is known by the community for its fresh cut meats, its friendly employees, and its dedication to community involvement. A&R Supermarkets, Inc.’s commitment to making customers feel welcomed and well served by providing customer-oriented service makes them reputable among their publics.

Client Analysis of A&R Supermarkets, Inc. 8 Public Relations Opportunity A&R Supermarkets, Inc. is an active participant in positive employee, customer, and community relations. Although the company successfully interacts with its publics in a variety of ways, A&R Supermarkets, Inc. has an opportunity to enhance its public relations efforts by implementing a program that engages all three publics. Instead of just being an “arm’s-length, good corporate citizen”, A&R Supermarkets, Inc. has the opportunity to become “part of the fabric of its community” by implementing a program that engages employees, customers, and their community in “social projects that tackle the real community needs” (Center, Jackson, Smith, Stansberry, 2008, p. 52). An estimated 14.3 percent of American households were food insecure at least some time during the year in 2013 (Jensen and Gregory, 2014). A&R Supermarkets, Inc. has the resources and strong community ties necessary to implement a program that will end food insecurities in its community. By utilizing its publics through volunteer programs, donations drives, and awareness efforts, A&R Supermarkets, Inc. will further strengthen its relationships with its public while solving a major community issue. Audiences Affected A&R Supermarkets, Inc. has the opportunity to engage all three of its publics to successfully end food insecurities in its community. Employees, customers, and community members will be affected by this opportunity. Objectives A&R Supermarkets, Inc. has the opportunity to address food insecurities in its surrounding communities by engaging employees, consumers and community members in a

9 Client Analysis of A&R Supermarkets, Inc. program that promotes awareness of food insecurities and supplies food to people who suffer from food insecurities. Informational Objectives: 1. To increase awareness of food insecurities among A&R Supermarket, Inc. community members. 2. To inform employees, consumers, and community members of ways they can be involved in A&R Supermarkets, Inc.’s efforts to address food insecurities. Behavioral Objectives: 1. To encourage employees, consumers, and community members in A&R Supermarkets, Inc.’s efforts to address food insecurities.

Strategies A&R Supermarkets, Inc. has the opportunity to address food insecurities in its surrounding communities by engaging employees, consumers, and community members in a program called “Do More with Sav-Mor” that promotes awareness of food insecurities and supplies food to community members who suffer from food insecurities.

Client Analysis of A&R Supermarkets, Inc. 10 Objective #1: To increase awareness of food insecurities among A&R Supermarket, Inc.’s community members. Strategy #1: Create promotional materials that detail facts and statistics about food insecurities in each A&R Supermarket, Inc. store community. Key Public (s) Addressed: A&R Supermarkets, Inc. employees, consumers, community members and media Channels:

Evaluation:

Publication: Flyer- Flyers will display infographics and facts about food insecurities in the community as well as links to the store’s website and Facebook account. Distribution Method: 1). Distribute a 3.5”x7” flyer to customers upon checkout with their purchase receipt. 2). Distribute an 8”x11” flyer to leaders of community organizations, churches, and schools though 1 to 1 personal contact by company executives.

Online surveys will be posted to each store website’s home page as well as the Do More with Sav-Mor tab. The survey will evaluate users knowledge of food insecurities in their community and how they were informed of this information. Traffic to the website will also be monitored.

Publication: Poster- A 1.5’x2’ poster will display infographics and facts about food insecurities in the community and be posted on the doors of each A&R Supermarket, Inc. store. An 8.5”x11” poster with the same information will be displayed on the back of each cash register monitor that faces the customer in the checkout line. All posters will have a QR code that can be scanned with a phone. By scanning the code, customers will be taken directly to the Do More with SavMor tab of that specific store’s website. Here they will find more detailed facts and statistics about food insecurities in the community.

11 Client Analysis of A&R Supermarkets, Inc. Mass Media: Media Kit: A media kit will be sent to local newspapers, businesses, churches, schools, and community organizations for each A&R Supermarket, Inc. store. The media kit will include: • News Release- Contains information about food insecurities in the community and A&R Supermarkets, Inc.’s efforts to address food insecurities through Do More with Sav-Mor. • Feature Story- Features a community member who has suffered from food insecurities in the past discussing how programs like Do More with Sav-Mor have impacted his or her life in a positive way. • Fact Sheet- Includes facts and statistics about food insecurities in the community and information about each element of Do More with Sav-Mor. • Photos- Photos of the mock pantry and end cap display will be provided in the media kit.

Monitor the number of stories produced in local media and determine the differences in information provided and information published. Conduct focus groups with churches, schools, and community organizations to determine what was done with the information once it was provided.

Mass Media: Individual Store Websites- Display info graphics, facts, and statistics about food insecurities in the community on each A&R Supermarket, Inc. store website. One info graphic will be found on the website homepage, while more detailed facts and statistics will be found under a special tab for Do More with Sav-Mor.

Monitor traffic to each A&R Supermarket, Inc. store website and Do More with Sav-Mor store tab. Surveys will determine users knowledge of food insecurities in the area as well as the program.

Strategy #2: Create an in-store, mock pantry display showing the differences in the pantry of a family that is food secure and the pantry of a family suffering from food insecurities. Key Public (s) Addressed: A&R Supermarkets, Inc. consumers Channels:

Evaluation:

Personal Message Tool: The mock pantry display will be placed near the entrance of each store so that all customers must walk past it before they begin shopping. The mock pantry will also feature a QR code that customers can scan with their phone that will take them directly to the store website where they can access more information under the Do More with Sav-Mor tab.

Monitor the use of the QR code and conduct focus groups with customers to determine the effectiveness of the mock pantry display and ways that it could be more effective.

Client Analysis of A&R Supermarkets, Inc. 12 Objective #2: To inform employees, customers and community members of ways to become involved in the Do More with Sav-Mor program. Strategy #1: Create promotional materials detailing ways for employees, consumers, and community members to be involved in Do More with Sav-Mor. Key Public (s) Addressed: A&R Supermarkets, Inc. employees, consumers and community members Channels:

Evaluation:

Social Media: Individual Store Facebook- A promotional video detailing the Do More with Sav-Mor program will be uploaded to the Facebook page of each individual A&R Supermarket, Inc. store. The video will feature store executives, employees, and consumers describing each element of the Do More with Sav-Mor program.

Monitor the number of views, likes, and shares on the video.

Mass Media: Individual Store Website- A promotional video detailing the Do More with Sav-Mor program will be uploaded to the website of each individual A&R Supermarket, Inc. store. The video will feature store executives, employees, and consumers describing the each element of Do More with Sav-Mor.

Monitor the number of views on the video as well as monitor website traffic.

Mass Media: Media Kit: A media kit will be sent to local newspapers, businesses, churches, schools, and community organizations for each A&R Supermarket, Inc. store. The media kit will include: • News Release- Contains information about food insecurities in the community and A&R Supermarkets, Inc.’s efforts to address food insecurities through Do More with Sav-Mor. • Feature Story- Features a community member who has suffered from food insecurities in the past discussing how programs like Do More with Sav-Mor have impacted his or her life in a positive way. • Fact Sheet- Includes facts and statistics about food insecurities in the community and information about each element of Do More with Sav-Mor. • Photos- Photos of the mock pantry and end cap display will be provided in the media kit.

13 Client Analysis of A&R Supermarkets, Inc. Strategy #2: Promote Do More with Sav-Mor among community organizations. Key Public (s) Addressed: A&R Supermarkets, Inc. community members Channels:

Evaluation:

Individual: 1 to 1 Personal Contact- A&R Supermarket, Inc. executives meet with leaders of community organizations and explain to them the initiatives that A&R Supermarkets, Inc. is taking to address food insecurities through Do More with Sav-Mor.

Keep track of how many leaders have been spoken to and the size of the audience that each leader has the potential to influence.

Publications: Flyer- 8.5”x11” flyers detailing Do More with Sav-Mor will be provided when company executives meet with organization leaders.

Assess the number of leaders have spoken to and the size of the audience that each leader has the potential to influence. Send a follow up email asking if the flyers were helpful in promoting Do More with SavMor to the members of the organization.

Strategy #3: Target local high school students to inform them about the Do More with Sav-Mor Facebook challenge. Key Public (s) Addressed: A&R Supermarkets, Inc. community members Channels:

Evaluation:

Individual: 1 to Large Group- Company executives will attend school assemblies to inform students of the Do More with Sav-Mor Facebook challenge and the incentive for participation.

Surveys that determine students knowledge of the program and their willingness to participate will be emailed to students.

Client Analysis of A&R Supermarkets, Inc. 14 Objective #3: To encourage employees, consumers, and community members to be actively involved in Do More with Sav-Mor. Strategy #1: Create an in store opportunity for consumers to contribute to Do More with Sav-Mor. Key Public (s) Addressed: A&R Supermarkets, Inc. consumers Channels:

Evaluation:

Advertising: End-Cap Display- An end cap display located on the end of an isle near the checkout registers will feature a grouping of items that would feed one person suffering from food insecurities for one week. The price of the combined items would be displayed on the end-cap along with a 3”x2” card featuring a barcode. To purchase the items, consumers would simply have the barcode scanned at the register. A&R Supermarkets, Inc. employees would package and distribute the boxes to food insecure families in the community.

Track the number of boxes purchased as well as conduct a focus group asking customers what other factors affect their decision to by the box and how prices or items could be altered to make the offer more appealing.

Mass Media: Individual Store Website- A&R Supermarket, Inc. consumers will be able to track Do More with Sav-Mor’s progress and see how many total boxes have been donated to community members suffering from food insecurities on each store website.

Monitor traffic to the Do More with Sav-Mor tab and conduct focus groups determining what affects the decision to visit the site or not.

Strategy #2: Create community service opportunities for local schools, churches, and community organizations to be involved in Do More with Sav-Mor Key Public (s) Addressed: A&R Supermarkets, Inc. community members Channels:

Evaluation:

Individual: 1 to 1 Personal Contact- Schools, church groups, and community organizations will have the opportunity to volunteer by speaking with customers before they enter the store and asking them if they would like to buy a can to donate to Do More with Sav-Mor can drive. The can drive will be an alternative to buying the weeks supply for consumers who aren’t willing to buy the box but still wish to contribute to the Do More with Sav-Mor program.

Keep track of how many organizations volunteer and how many cans they generate for the program.

Mass Media: Media Advisory- A media advisory will be sent Monitor media coverage of to local news outlets. The media advisory will detail when the the Do More with Sav-Mor can drives will be held and what organization will be can drive. volunteering for that specific drive.

15 Â Client Analysis of A&R Supermarkets, Inc. Social Media: Facebook- Facebook posts will detail when the can drives will be held and what organization will be volunteering for that specific drive.

Monitor how many likes and shares are received on the post.

Strategy #3: Promote Do More with Sav-Mor by engaging local high school students in a social media challenge. Key Public (s) Addressed: A&R Supermarkets, Inc. community members Channels:

Evaluation:

Mass Media: Facebook- Local high school students will have the opportunity to compete in a Do More with Sav-Mor Facebook awareness challenge. Each grade will compete for the most likes and shares of infographics and videos about Do More with Sav-Mor over a one-week span. Sponsors for each grade will keep track of and total the results. The winning grade will receive a predetermined award.

Determine how involved students were by the number of likes and shares that they generate. Conduct a focus group of students to determine what would have made them more eager to be involved or ways that they would improve the challenge. A survey posted on the store website will determine how many people heard about the program as a result of the social media challenge.

Client Analysis of A&R Supermarkets, Inc. 16 References Center, A., Jackson, P., Smith, S., & Stansberry, F. (2008). Community Relations. In Public Relations Practices, Managerial Case Studies and Problems (7th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall. Jensen, A., & Gregory, C. (2014, September 1). Economic Research Report, Household Food Security in the United States in 2013. Retrieved September 25, 2014, from http://ers.usda.gov/publications/err-economic-research-report/ err173.aspx#.VCRkeKXwvwK Sales. (2014). In A&R Supermarkets Inc. Annual Report. Dent Baker and Co.