Question: A local grocery retailer with multiple stores has been facing many problems for some years with the variability of customer demand for items like pasta

A local grocery retailer with multiple stores has been facing many problems for some

years with the variability of customer demand for items like pasta sauces, cereals, and bread and has

now approached a consulting firm for advice. After research and discussion, the consulting firm has

advised this grocery retailer to away with their periodic price promotions and use an Everyday

Low Price (EDLP) strategy instead.

Discuss why periodic promotions have been discouraged in favour of the EDLP strategy? Identify

the potential risks of implementing EDLP strategy by the grocery retailer and explain why?

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