💼AP Business with Personal Finance
3. UrbanSprout Markets—a regional grocery chain known for locally sourced produce—wants to increase sales of its new high-margin "Chef's Quick-Bite" prepared meals to gain a competitive advantage.
The urban grocery market is highly competitive, with major rivals like CityFresh and MetroFoods controlling 75% of the prepared foods segment. UrbanSprout's executives believe that optimizing the in-store placement of their new meals will attract busy professionals and grow their market share.
To determine the best location for the new product line, UrbanSprout’s marketing team conducted field research. Over a two-week period, researchers discreetly observed actual customer behavior in four different store zones, tracking foot traffic (the number of customers who stopped to look at temporary meal displays) and purchase behavior.
As shown in Figure 1, the observed daily foot traffic (customers stopping at the display) for each store zone was: Entrance Display 450, Deli Counter 320, Produce Section 180, and Checkout Aisle 150. As shown in Figure 2, the observed purchase conversion rates (percentage of stopped customers who purchased a meal) and average time spent at the display were: Entrance Display 8% / 15 seconds, Deli Counter 25% / 45 seconds, Produce Section 12% / 30 seconds, and Checkout Aisle 5% / 10 seconds.
Describe a market research method UrbanSprout Markets executives employed to gather the information represented in the scenario.
Figure 1. Observed Daily Foot Traffic by Store Zone (Number of Customers Stopping at Temporary Meal Display)
Figure 2. Observed Purchase Behavior by Store Zone
Describe a finding revealed by the research. Use data from Figure 1 or Figure 2 to support your response.
Explain how UrbanSprout Markets could use a finding from the research to achieve a business goal.
00:00
