PROFESSIONAL SCHOOL OF ENGINEERING AND

ARCHITECTURE

“MASS” SUPERMARKET STRATEGIC PLAN

COURSE: STRATEGIC MANAGEMENT

TEACHER: ENG. GUSTAVO HERNÁN TATAJE SALAS

MEMBERS :

 AYALA ESPINOZA, ALEJANDRO ALEXIS

 MONTESINOS TUMBA, ANDERSON MIGUEL

 OROSCO GAVINO, ROSA MARÍA

 TORRES ÑIQUEN, FRANCKIN JONATAN

DATE: 02/06/2020

LIMA PERU

1
 INDEX

INDEX..........................................................................................................................................2
INTRODUCTION.........................................................................................................................3
CHAPTER I..................................................................................................................................4
1. PRESENTATION AND BACKGROUND OF THE COMPANY.............................................4
1.1. Company's presentation.............................................................................................4
1.2. Company Background................................................................................................4
1.3. Background of Planning or Strategic Management of the Company.....................8
CHAPTER II...............................................................................................................................11
2. FORMULATION OF THE COMPANY'S STRATEGIC PLAN.............................................12
2.1. CURRENT VISION........................................................................................................12
2.2. PROPOSED VISION......................................................................................................12
2.3. CURRENT MISSION...................................................................................................12
2.4. PROPOSED MISSION................................................................................................13
2.5. CURRENT OBJECTIVES AND GOALS....................................................................13
2.6. PROPOSED OBJECTIVES AND GOALS.....................................................................14
2.6. CURRENT STRATEGIES...........................................................................................14
CONCLUSIONS.........................................................................................................................15
RECOMMENDATIONS..............................................................................................................15
INFORMATION SOURCES.......................................................................................................16
APPENDICES OR ANNEXES...................................................................................................16

2
 INTRODUCTION

Throughout its development, the strategic plan establishes the bases for the operation of
the company in line with the achievement of future objectives, even without knowing what
the future will be. In other words, it will define what actions will have to be carried out at
the business level in order to face the challenges that appear and finally achieve the
previously set objectives.
In this sense, the strategic plan is a document integrated into the business plan that
includes the economic-financial, strategic and organizational planning that a company or
organization has to address its objectives and achieve its future mission.

The present strategic plan carried out on the “MASS” supermarket, which is currently a
company dedicated to the sale of food products, cleaning products, among others; located
in different parts of the city of Lima and provinces, which will provide customers with easy
access to quality products, from 8:00 a.m. to 9:00 p.m., being within reach and proximity
of customers.
The main activity being the sale of retail products to the final consumer (customer),
through the different branches.

Competitiveness in the traditional channel (markets and warehouses) is still aggressive in

some urban areas of the country, which represents an opportunity to review the current
strategy that supermarkets apply to continue with their expansion plan and penetrate the
national market at rates greater than those recorded in recent years. In this sense, this
work presents strategies that, if applied, will allow Peruvian Supermarkets to consolidate
leadership in the market in the coming years.

3
 CHAPTER I

1. PRESENTATION AND BACKGROUND OF THE COMPANY

1.1. Company's presentation

Peruvian Super Mercados is a Peruvian company belonging to the RETAIL

industry that has operations in Peru. It participates in the supermarket market and
belongs to INRETAIL, which is part of the INTERCORP Group, one of the largest
and most influential groups in Peru. SPSA began operations in 1993, however, it
passed entirely into the hands of the INTERCORP group in 2003 with the
purchase of shares from the Ahold group. In 2004, the chain changed its name to
the one it currently maintains.
Peruvian Supermarkets and currently leads the RETAIL industry in Peru within the
supermarket sector.

Brands of Supermercados Peruanos SA:

VIVANDA Directed Families High Income

Brand (super)
PLAZA VEA (hyper) Average Income
MASS(retail) Low incomes

2018 monitoring based on Supermercados Peruanos SA in Retail.

1.2. Company Background

SPSA began operations under the name Supermercados Santa Isabel SA in

1993. The chain grew during the 1990s through the acquisition of the Mass and
Top Market chains, and the lease of the San Jorge supermarket.
Thanks to these acquisitions, Santa Isabel consolidated itself as the second
supermarket chain in Peru. In 1998, the Dutch group Royal Ahold, the third largest
retailer in the world, became co-owner of Santa Isabel, and increased its
participation until assuming full control of the company in May 2002. Under
Ahold's management, the company successfully launched the Plaza Vea
hypermarket format. At the beginning of 2003, Ahold made the decision to sell its
operations in South America.

4
On December 11, 2003, the Interbank financial group acquired all of the shares of
Supermercados Santa Isabel, providing the company with the financial support
and prestige necessary for a now 100% Peruvian chain to continue with the
expansion process initiated by Ahold. During the years 2004 and 2005, the
company's strategy was based on the definition and consolidation of its formats,
culminating with the launch of the new Vivanda brand, the transformation of the
Minisol stores to Mass and a profound improvement in quality and services. See
Plaza.

In March 2004, the General Shareholders' Meeting approved changing the

corporate name of Supermercados Santa Isabel SA to SUPERMERCADOS
PERUANOS SA
Since 2006, Supermercados Peruanos is having constant growth, a result of its
expansion plan, through the construction of new stores both in Lima and in the
Provinces, it seeks to serve new segments and in some cases remodeling existing
stores in order to satisfy better meet the needs of your clients.

The collaborators of Peruvian Supermarkets amount to more than 13,000 people,

who are distributed in more than 65 stores nationwide of different formats, the
Collection Centers and the Central Administration
The Discount Store Format began in April 2001 with the Chosica location. This
format is characterized by being focused on specific, low-priced and quick
purchases of a small number of items, which compete with warehouses and
neighborhood markets. It is an austere format but always concerned about serving
its customers, for this reason and To please them, in 2006 the own brand Mass
was introduced, which allows us to offer quality products at lower prices than the
competition.

Company description

In 1994, a group of Peruvian businessmen acquired Banco Internacional del Perú,

with the vision of turning it into a leading financial entity in personal banking,
serving all Peruvians. Given the first step, the great change began by establishing
the Interbank Culture, a new way of seeing the banking business seeking to be the
best bank by having the best people.

This solid Peruvian business group is making a difference in areas as diverse as

supermarkets, with Plaza Vea, Vivanda and Mass, life and accident insurance with
5
Interseguro, hotels with Casa Andina and entertainment with Cineplanet, the most
important fast food chain in Peru. , Bembos and in pharmacies, the recently
acquired Inkafarma, among others. Supermercados Peruanos is a Peruvian
company that owns several supermarket chains, being one of the few with 100%
Peruvian capital. Its presence in the market under that name dates back to 2003 ,
when the consortium formed by Interbank , Interseguro and Compass Capital
Partners Corp., bought the Santa Isabel supermarket chain from the transnational
Ahold .

Peruvian Supermarkets SA

Guy business

Industry Retail

Foundation 2004

Founder Carlos Rodríguez-Pastor

Campus Jr. Morelli 181 San Borja , Lima , Peru

Operation area Peru

Brands Plaza Vea , Vivanda , Mass, Minisol, Economax , Market

San Jorge

Owner Intercorp

Source Wikipedia Peruvian Supermarkets

Market

According to the latest 2019 results report, the Peruvian company InRetail Perú
Corp. continues to open new stores.

At the beginning of the year, Mass had 326 stores, that means that 79 opened,
adding at the end of 2019 a total of 405 commercial premises.

In this way, Mass, a hard discount brand, has approximately 4,800 square meters
of commercial space distributed in Metropolitan Lima.

6
It is important to indicate that Mass is a format that allows us to satisfy the needs
of clients of different socioeconomic levels in the Peruvian capital.

Meanwhile, the Plaza Vea supermarket chain has 108 stores to date and its
wholesale store chain Economax only has 5. This is according to the final report
for the fourth quarter 2019.

Historical review

Supermercados Peruanos SA ("Supermercados Peruanos" or "SPSA") was

created in 2004. Later the company acquired the Mass and Top Market store
chains, thereby increasing the number of stores in operation.
In 1998 the Dutch multinational supermarket company Koninklijke Ahold N.V.
("Ahold"), through Disco Ahold International Holding NV, took control of the
supermarket chains Santa Isabel in Chile (and with it its subsidiary in Peru),
Disco in Argentina and Stock in Paraguay.
On October 1, 2001, the name change of the company to "Plaza Vea" was
approved, within a global strategy of the new owners, related to the change of
image as well as the development of new formats called "Supermarkets
Peruanos SA", the latter operating on January 1, 2004.
In April 2003, Ahold announced its decision to sell its stake in the
supermarket chains it owned in Asia and in Chile, Argentina, Paraguay, Brazil
and Peru. In the Peruvian case, on December 11, 2003, the process of selling
100% of the shares of Supermercados Santa Isabel Perú SA was concluded,
which became the property of companies linked to Intercorp.
In August 2012, as part of Intercorp's corporate reorganization process,
99.98% of the shares of Supermercados Peruanos SA were transferred to the
subsidiary InRetail.

Organization chart.

The platform of formats that Supermercados Peruanos has, adapts to the types
of consumers in the country, intended to cover their needs for price, proximity
and characteristics that they look for when making their purchases.
7
 For this reason, the formats it has are divided into Hypermarket, Supermarket
and Hard Discount.

Peruvian Supermarkets operates a self-service network under four formats:

• Hypermarkets; with the Plaza Vea Hiper brand.

• Supermarkets; with the Plaza Vea Super, Vivanda and Market San Jorge
brands.

• Discount stores; with the Plaza Vea Express, Mass and Minisol brands.

• Cash and carry; with the Economax brand.

GENERAL MANAGER: Francisco De La Roza

COMMERCIAL DIRECTOR: José Sejas

DIRECTOR OF ADMINISTRATION AND FINANCE: Gonzalo Rosell

DIRECTOR OF HUMAN MANAGEMENT AND SUSTAINABILITY: Mariela Prado

DIRECTOR OF OPERATIONS: Sergio Agnello

SUPPLY CHAIN DIRECTOR: Eduardo Gonzalez De Boado

MARKETING DIRECTOR: Adelberto Muller

MASS MANAGER: José Luis Rossi.

1.3. Background of Planning or Strategic Management of the Company.

Refer whether or not the company has a strategic plan

If you have it, mention what number

PE it's found

How the company formally carries out strategic planning

Penetrate the provincial market

Expand the catalog of own brand products
Promote omnichannel in Plaza Vea and Vivanda
Create strategic alliance with GV Producciones to
develop gastronomic projects with Plaza Vea
Create strategic alliance with Movistar TV to develop
gastronomic projects with Vivanda format

8
 Expand the offer and diversity of non-food products offered in stores
Create the format of wholesale stores to compete in that market
Create the Plaza Vea mini-market store format in Lima and provinces
Create the format of convenience stores in Lima
Develop new eco-friendly products that replace
the current ones offered based on plastic
Achieve strategic alliances with transportation providers to optimize the
distribution network with potential cost reduction
Open new stores, with the Mass format according to the target area
Penetrate modern channel through the transformation of some Mass stores
into Plaza Vea minimarket or convenience stores
Strengthen the Plaza Vea and Mass brands
Outsource online order distribution
Create a strategic alliance with the Fahrenheit advertising agency
Create a strategic alliance with JDA (software provider) to improve the
distribution process in Lima and the provinces.

With what model or methodology have they developed it?

THE MIXED STRATEGY

The strategy of the discount stores aims to have private and white brands that sell

under their brand - in the case of Mass, there are Bell's and Mass products - with an

austere format, low operating cost per square meter and with the exhibition of your

products even in the manufacturer's original packaging unit.

"This has two objectives, one is to lower its operating cost, but it also sends a

message to the market that 'look, prices are low here,'" explains De Greift.

That said, Mass's target is not exclusively low economic levels, considering that this

year it located new stores in districts such as Lurín, Chorrillos, Villa El Salvador and

Villa María del Triunfo.

"The highest SES will go for some categories - such as detergents or toilet paper - to

discount stores and for other more sophisticated products they go to more premium

stores. "I would not rule out that there is a particular mix of people in NSE who go to

Mass stores," he explains, since some high-income people are not interested in the

brand or a shopping experience in certain categories.

9
Thus, the discount store format competes with convenience stores and traditional

bodegas, in an intermediate format between these formats and supermarkets, adds

Ernesto Aramburú.

who participates in the process

GREATER SYNERGIES

A week ago, Christopher Mejía, director of Initiatives at the Center for Transportation

and Logistics (CTL) at the Massachusetts Institute of Technology (MIT), told this

newspaper that supermarkets are the true competitors of convenience stores, as

both compete for an audience. upper-middle or high-income, with higher prices than

traditional wineries, but with the advantage that stores like Tambo+ pay for smaller,

more efficient plots of land per square meter.

In this sense, Supermercados Peruanos' commitment to Mass confronts

convenience stores; while, in 2017, the company only opened two new stores

belonging to the Hiper and Super format.

The trend is for them to marginalize less and position themselves as the cheapest
shopping alternative, says Aramburú, taking advantage of the supply chain.
“The construction and opening times in these formats are much shorter [than that of
supermarkets] and access to land because they are smaller is easier and lower
cost,” says Aramburú.
According to calculations cited by the specialist, the average sales efficiency level
per square meter of supermarkets is US$423; while those of convenience stores
range between US$1,200 and US$2,000 per square meter.
Due to the low land costs that these formats take advantage of, De Grieft sees it as
difficult for Mass to enter areas such as Miraflores and San Isidro, despite the fact
that there is demand.
“But it would not be surprising to see clients from San Isidro come to Surquillo or
Lince, even if the purchase is made to order,” he points out.

what is your level of progress

2017 was the year of consolidation of the modern channel formats in Lima. Although

the Tambo+ convenience store is positioned in the lead, with 199 stores at the end

of the year, an actor that has strongly expanded its format and is positioned as the

10
 second largest in the market is Supermercados Peruanos , with the discount stores

Mass , which closed the year with 161 stores.

According to the company's annual report, the number of Mass stores has grown

from 19 stores in 2015, to 59 stores in 2016, and then opened 102 new stores in

2017 alone. This brand, however, is not a new one. It is a remodeled and relaunched

format at the beginning of 2006; Since 2015, Inretail is committed to further

expansion of the brand.

In addition to Mass, Supermercados Peruanos, part of Inretail, includes

Hipermercados Plaza Vea , Supermercados Plaza Vea Súper, Plaza Vea Express,

and Supermercados Vivanda in its brand portfolio.

For this reason, Supermercados Peruanos' commitment to Mass stores starting in

2015 is part of the company's development route, according to Ernesto Aramburú,

Managing Director of Araval Investments and Consultancies.

"First it was taking over the supermarket market as long as it was less complex to

find the land. Then it went from supermarkets to hypermarkets, later to the concept

of low prices. This evolution has been the pattern in all markets as a line or

development route," he comments and gives as an example the service center

stores that recently opened stand-alone stores.

Along these lines, Christophe DeGreift, Managing Director of the business

consultancy Real Time Management, adds that Supermercados Peruanos "has

taken time to find the format and formula to be more successful", ruling out that prior

to the expansion of Mass the market Peruvian has not been ready for this format.

"What market is not ready for low prices," he asks.

CHAPTER II

2. FORMULATION OF THE COMPANY'S STRATEGIC PLAN

2.1. CURRENT VISION

“To be the first purchasing option for all Peruvians”

11
 CURRENT VISION ANALYSIS:

ITEMS YEAH NO
Panorama
from the

future
Competitive
framework

Fundamental
objectives

Sources of
competitive

advantage

2.2. PROPOSED VISION

By 2025, remain the first supermarket chain in sales within Peru, recognized for
providing the best price-quality service ratio in the industry and for its efficient
processes with high standards in environmental care and good social practices.

2.3. CURRENT MISSION

“Generate excellent shopping experiences so that our customers return and have a
better quality of life”

CURRENT MISSION ANALYSIS:

COMPONENTS YEAH NO

Customers

Products or services

Markets

12
 Technologies

Survival, growth and
profitability 
Philosophy

Self-definition

Interest in employees

Concern for public image


2.4. PROPOSED MISSION

Generate excellent shopping experiences by offering a wide variety of products with

the best price-quality service ratio among the supermarket chains present in Peru,
through our different points of sale and formats. For this, we will have efficient
processes in our logistics chain and we will keep the stores in optimal conditions to
guarantee the quality and safety of the products offered, also promoting the care and
preservation of the environment. In addition, we are focused on developing our
collaborators technically, promoting our values in order to positively impact the places
where we work and creating value for our stakeholders.

2.5. CURRENT OBJECTIVES AND GOALS

GOALS CURRENT GOALS

Position yourself as the leading *Improve customer loyalty strategy.

company in the market *Improve the company's positioning strategy.

Achieve greater market share *Increase market share by 10% in the next 4
months.

Be a recognized brand in the market * Increase the visibility of the company

“MASS” on the Internet by increasing the

13
 channels.
Outperform and increase sales *Improve sales by 10% in the next 3 months.

Increase income * Sell 10,000 products from our store in the

first year.
Generate higher profits *optimize resources and minimize costs.

Sources: based on an interview with the administrator of the mass company

2.6. PROPOSED OBJECTIVES AND GOALS

GOALS PROPOSED GOALS

Implement marketing strategy based *Improve product presentation.
on: product Plaza, promotion. *Improve communication channels “social
networks, advertising” with the client.
Obtain greater commitment and sense * Develop an incentive plan for the sales
of belonging in the sales force team.
(salespeople)
Reconcile as a leading company in the * Develop products that satisfy new needs.
sector
Separate the competition in visibility * Improve the distributions and design of
and sales spaces in different locations.
Exceed company sales (MASS) * For the next 3 months, Increase the
amount of sales by 10% compared to the
same period last year.
Source: self made.

2.6. CURRENT STRATEGIES

 Tiendas mass develops a generic differentiation strategy focused on the quality of

the products it offers, given that it takes advantage of the exclusivity of the
products they sell under their brand “Bell's and Mass” with an austere format, with
low operating costs.

 The competitive strategy developed by Tiendas Mass is to become a leading

company, since it competes with conviviality stores and traditional wineries,
capturing some characteristics of both, with an inclusive trend and in which they
seek to position themselves as the cheapest alternative of buys.

 The growth strategy adopted by Tiendas Mass plans to have approximately 500
14
 stores, as part of its aggressive expansion plan. In this way, Mass continues to
double its number of stores.

 One of the main strategies of mass stores is virtual sales, which also offers store
products through delivery service.

 Tiendas mass has price as its main strategy. "In this model, no additional services
are offered and the user pays in cash, in addition to not having a wide range of
products and having a large presence of own brands."

 Mass stores apply the broad low-cost strategy, since they target a massive target
audience, especially those from SES B and C, and they also reduce their costs to
offer products at low prices.

CONCLUSIONS

List of the main conclusions reached as a result of carrying out the work. It is not a
summary of the results. They must be numbered.
Adopt the philosophy of considering our employees as “Internal Customers”
Motivate collaborators

RECOMMENDATIONS

 It is recommended that Tiendas mass develop job satisfaction surveys so that they can
receive feedback from their collaborators regarding how they feel about various aspects
of the work environment and also give them the opportunity to propose new ideas for
improvement. In addition, they are important for detecting problems or conflicts early,
which helps the company take corrective measures proactively and avoid serious
consequences.

 It is recommended to carry out a group profit sharing program. Goals can be assigned
by area and the percentage received will depend on the degree of compliance with
them. Likewise, the area that exceeds its goals by the highest percentage will receive
an extra amount. In this way, teamwork and better communication will be encouraged.
This incentive will be granted each end of the year. As a consequence, workers will feel
motivated, more productive and committed to continuing with the company.

 During the analysis, the problem related to the strategic planning of mass stores
includes economic and non-economic aspects with the purpose of motivating and
retaining employees in the long term. With this, it is expected to reduce the high staff
turnover rate. On the one hand, we recommend a salary adjustment based on the
performance demonstrated by employees and indirect compensation such as profit
sharing and rewards for customer service. On the other hand, regarding non-monetary
compensation, we believe that it is necessary to implement a recreation area to
improve workplace well-being and organize olympics to develop a harmonious and
collaborative work environment.

 Mass stores have to exceed their customers' expectations, if they do so they will

15
 always come back, they must give them what they want and a little more. They have to
feel that the company appreciates them, trying to take advantage of all their mistakes
and not presenting justifications. You must apologize and take responsibility for
everything you do, remember that the two most important words for the customer to
return are “satisfaction and guarantee.”

INFORMATION SOURCES

1. Agencia Perú Archived October 13, 2008 at the Wayback Machine. Ahold sells
Santa Isabel to Interbank
2. ↑ «Peruvian Supermarkets: Our Stores: Plaza Vea» . Archived from the original
on May 12, 2019. Consulted in 2009.
3. ↑ «Page in gestion.pe».
4. ↑ [1] Plaza Vea opens supermarket N°99 in Ventanilla
5. ↑ «Page in gestion.pe». Archived from the original on September 8, 2014.
Accessed September 8, 2014.
6. ↑ Oblitas, Leslie Salas (March 7, 2016). "Why did Peruvian Supermarkets revive
its Mass store?" Trade. Accessed October 10, 2018.
7. ↑ «Mass already has 180 stores in the Peruvian market» . News from the retail
sector and commercial channels from all over Latin America. Find specialized
training and advice. July 16, 2018. Accessed October 10, 2018.
8. ↑ «Infomarketing page». News about stores mass a new format to compete with
tambo.
9. ↑ «Page in Peru retail». Learn about Peruvian Supermarkets' strategy to increase
its presence in ecommerce. Archived from the original on June 28, 2019.
Consulted in 2019.
10. ↑ «Page in commerce». Mass and his strategy to compete against Tambo.
Archived from the original on March 19, 2018. Consulted in 2017.
11. ↑ «Peruvian supermarkets: We are a company».
12. ↑ «Page in economipedia» Strategic plan. Archived from the original on June 8,
2019.

APPENDICES OR ANNEXES
Tables, graphs and other material that supports and supports the work are presented,
relevant for the understanding or expansion of what is stated. They may also include a
small glossary. They should avoid putting “filler information”.

It is recommended to be careful to differentiate your own contribution (from the team) from
material extracted from other sources or authors, using for each case the bibliographic
citation with its corresponding footer.

The date of delivery and presentation of the work will be announced by the teacher in
class.

For any questions or queries you may have, do not hesitate to write to my email account:
gtatajes@usmp.pe

PRESENTATION OF THE WRITTEN REPORT

It will be presented in a ring, with the paste in transparent plastic. It should not exceed 20
printed pages and should consider the following aspects:
16
 1. Drafting. The language will be formal and in the third person; avoid using the personal
self (first person).
2. Paper and size. It is presented on white paper (bond), size A-4.
Margins. The right, bottom and top margins are 2.5 cm. and the left margin is 3 cm.
3. Line spacing. It will be 1.5.
4. Letters. Use Arial 11. Smaller sizes may be used only in annexes, illustrations and
tables. Do not use italics, except for words in a language other than Spanish or
scientific names.
5. Abbreviations. Avoid abbreviations in the title and summary.
6. Boards. They are numbered according to the order in which they appear in the text, a
brief title will be assigned to each one, at the top outside the table.
7. Figures. They are numbered according to the order in which they appear in the text,
with a brief legend at the bottom outside the figure.
8. Layout of the text. The following rules must be followed : start each chapter on a
new page, print only on one side of the page and use one to five levels of headings,
as follows:

to) Use of capital letters in the titles of the preliminary pages. Example:

INDEX
INTRODUCTION
CHAPTER I. PRESENTATION AND BACKGROUND OF
THE COMPANY
1.1 Company's presentation
1.2 Company Background
1.3 Background of planning or strategic management of the company

CHAPTER II. FORMULATION OF THE COMPANY'S

STRATEGIC PLAN
2.1 Current vision and proposal
2.2 Current and proposed mission
……

CONCLUSIONS
RECOMMENDATIONS
SOURCES OF INFORMATION
ANNEXES

17