Kroger ranks among the top three retail stores in the United States. The retail store benefits from a good public standing putting it in a strategic position to compete against other major retail outlets in the industry.

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Kroger: Situation Analysis
Marketing and product objectives
Kroger ranks among the top three retail stores in the United States. The retail store benefits from a good public standing putting it in a strategic position to compete against other major retail outlets in the industry. The general retail firm, therefore, intends to take advantage of its high rating in the market to expand its operations and introduce a new line of products. The core objective employed Kroger is to diversify its product offering and ensure that customers find all the products that they need in one store to maintain customer traffic to the outlet besides enhancing customer satisfaction. Kroger intends to base the product range expansion on the broad market segment that it has. The details of the marketing and product objectives are discussed below.
Current market
Kroger plans to introduce prescription drugs into its broad line of products. The prescription medicine will be offered to the consumers through pharmacies based within the Kroger retail outlets. Other products sold in the Kroger retail outlet include electronics, household items and appliances, ready meals, and other baked foodstuffs. As a result, prescription medicine will go together with the items sold in the stores. The retail store plans to carry out awareness campaigns on the availability of the new products in its stores and expect their move to be backed by their experience gained by selling food preservatives and other drugs. The introduction of prescription drugs is bound to significantly increase revenue returns as well as guarantee customer satisfaction as the company seeks to achieve its objective of ensuring customers do all their shopping under one roof.
New market
The company will roll out the new products on its retail and supermarket chains across the country. Kroger prefers to stock the stores based on a highly populated area that has potential to meet its sales targets for the new products. As a result, Kroger supermarket, Fred Meyer, city market, and Harris Teeter among other stores will be the first to stock and sell the prescription drugs once introduced by the firm. Chasser and Jenifer, in the article titled, “Brand Rewired: Connecting Branding, Creativity, and Intellectual Property Strategy” noted that retailers like Kroger can capitalize on the recent changes by the American health division to sell the prescription drugs over the counter (20). The management will base the decision to introduce the new product to other Kroger stores on how the products perform in the first batch of stores to stock and sell the products.
New products
The new products are prescription medicines that can get sold over the counter and whose functions are to cure or prevent the occurrence of illness. The prescription drugs are sold to the customer only when they produce a dully filled prescription form from the doctor. Kroger cannot manufacture the new products, as a result, will source the prescription medicine form Bayer and GlaxoSmithKline. Qualified pharmacists employed by the retail giant will dispense the medicine sold by the firm. The pharmacists will be based in the stores to ensure that prescription drug customers get the best service and advice on its usage (Chasser and Jennifer 26). The Pharmacists will play a critical role in providing that customers can differentiate between the drug brands stocked by the firm and boost customer satisfaction in the process.
Target Market
Kroger targets the American middle class with the new product as they are likely to pay for the products in cash. The segment also lacks an active medical cover. The firm, therefore, plans to exploit the unique characteristics of the middle-income customers to sell the product. The company will carry out the new product awareness campaigns to attract more customers to the store and sell the product. Excellent customer service and advertisement will play a critical role in boosting the sales of the product. Positioning
Most customers associate Kroger with high-quality goods and services, as a result, the firm will ensure that they keep up with the outlook by sourcing the items from reputable drug manufacturers and suppliers. In fact, the choice for the two leading pharmaceuticals suppliers was intentionally made to guarantee high quality and hence customer satisfaction.
Perceptual map
The prescription drugs Kroger intends to sell to its customers will be manufactured by Bayer and GlaxoSmithKline and delivered to Kroger Perceptual map is meant to capture how the customers comprehend the characteristics of prescription drugs in the market and will assist the company position the drugs it plans to sell. The attributes used to develop the perceptual map are the age of the customers and the brand name of the product. The perpetual chart below casts the age of the consumers against the expected perception of the brand held by the consumers in the market.

Brand name (high familiarity)

Age (below 17 years) Age (above 17 years)

Brand name (low familiarity)
Figure 1. Perceptual map for the common prescriptive medicine supplied by Bayer and GlaxoSmithKline.
The chart indicates the widely used prescription medicine distributed by the two Bayer and GlaxoSmithKline. The medication treats ailments like a cough, cold, bacteria, and suppress allergic reactions. DeNoon Daniel in the article titled, “The 10 Most Prescribed Drugs” noted that amoxicillin is one of the most prescribed drugs by medical practitioners (1). The chart was developed based on the performance of the drug in the market with amoxicillin having a higher ranking compared to other drugs.

Works Cited
Chasser, Anne H, and Jennifer C. Wolfe.Brand Rewired: Connecting Branding, Creativity, and Intellectual Property Strategy. Hoboken, N.J: Wiley, 2013. Print
DeNoon, Daniel. The 10 Most Prescribed Drugs. Web M, 2017. Retrieved on November 20, 2017 from