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Retailing
Retailing includes
all the activities
involved in selling
products
or services
directly to final
consumers for
their personal,
non-business use.
Retailer
-Sales come primarily from retailing
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Shopper marketing
• . using point-of-sale promotions and advertising to extend brand equity to “the last mile” and encourage favorable in-store purchase decisions.
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Convenience Stores
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Sheetz positions itself as more than just a convenience store. Driven by its Total Customer Focus mission and the motto, “Feel the Love,” Sheetz aims to provide “convenience without compromise”
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What are the types of Retailers
Wal-mart
Tiffany
Sears
Carry a narrow product line with a deep Carry a narrow product line with a deep assortment (single-line, limited line, or assortment (single-line, limited line, or superspecialty store); Category Killerssuperspecialty store); Category Killers
Carry several product lines, with each line Carry several product lines, with each line operated as a separate department managed operated as a separate department managed by specialist buyers or merchandisersby specialist buyers or merchandisers
A relatively large, low cost self-service A relatively large, low cost self-service operation; grocery and household products; operation; grocery and household products; highest frequency (Out-of home- cooking)highest frequency (Out-of home- cooking)
Small stores open 7 days long hours carryig Small stores open 7 days long hours carryig limited line of high-turnover convenience limited line of high-turnover convenience products at higher priceproducts at higher price
Very large stores for routinely purchased Very large stores for routinely purchased food and non-food itemsfood and non-food items
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Types of Retailers (continued)
1. Independents off-price outlet (retail group or single shop)
2. Factory Outlet
3. Warehouse clubs
1.Corporate Chain
2.Contractual Associations
e.g. Franchise (40% US retail)
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Retail Targeting and Positioning
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By positioning itself strongly away from Wal-Mart and other discounters, Whole Foods has made itself one of the nation’s fastest-growing and more profitable food retailers Whole Foods Market focuses on selling high-quality natural and organic foods
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Why Successful? Differentiation
ProductProduct: Food,: Food,Price:Price: Low Low
-Global sourcing, Global sourcing, -small suppliers, small suppliers,
-no shelf-space rental fee,no shelf-space rental fee,-Promotion:Promotion: word-of-mouth word-of-mouth
-Distribution Distribution -(store atmosphere)(store atmosphere)
-Wet market, housing estate,Wet market, housing estate,-Bright and SimpleBright and Simple
ProductProduct: Food,: Food,Price:Price: Low Low
-Global sourcing, Global sourcing, -small suppliers, small suppliers,
-no shelf-space rental fee,no shelf-space rental fee,-Promotion:Promotion: word-of-mouth word-of-mouth
-Distribution Distribution -(store atmosphere)(store atmosphere)
-Wet market, housing estate,Wet market, housing estate,-Bright and SimpleBright and Simple
-ProductProduct: Food, : Food, grocery grocery
and life-style productsand life-style products-Price:Price: “Everyday low price” “Everyday low price”
-““High-low” pricing High-low” pricing -Promotion:Promotion: TV + ads TV + ads
-Distribution Distribution -(store atmosphere)(store atmosphere)
-Clean, well-organized, Clean, well-organized, -SpatialSpatial
-international, organicinternational, organic
-ProductProduct: Food, : Food, grocery grocery
and life-style productsand life-style products-Price:Price: “Everyday low price” “Everyday low price”
-““High-low” pricing High-low” pricing -Promotion:Promotion: TV + ads TV + ads
-Distribution Distribution -(store atmosphere)(store atmosphere)
-Clean, well-organized, Clean, well-organized, -SpatialSpatial
-international, organicinternational, organic
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Shopping Centers Today
• Today’s shopping centers are more about creating places to be rather than just places to buy
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Global Retailing Trends and Developments
Trend #1: New retail forms, shortening retail life cycles,
and retail convergence
(Department store 100 year to reach maturity; Warehouse
store 10 years)
- Wheel-of-retailing
many new types of retailing forms begin as low‑margin,
low‑price, low‑status operations, upgrade services, increase price,
become conventional retails, cycle begins.
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Trend #2: Slow Economy
Trend #2: A slowed economy and tighter consumer spending
Postrecession Economy - “Pay-Less”; Target, McDonald
- Add Value
Home Depot: “You can do it. We can help.” “More saving. More doing.”
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Trend #3: Green Retailing
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Green: Stores, products, and consumer decisions
e.g. McDonald’s new eco-friendly restaurants are designed from the bottom up with a whole new eco-attitude
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Trend #5
• Growing importance of retail technologye.g. touch-screen kiosks, customer-loyalty cards,
electronic shelf labels and signs and self-scanning checkout systems.
• Global expansion of major retailers
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Growth of Direct and Online Retailing
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The Internet has spawned a whole new breed of shoppers – people who just can’t buy anything unless they first look it up online and get the lowdown