Ch13 Review

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6Ps of Retailing (aka The Retail Mix) Product mix => Quantity (Breadth & Depth) + Private labels Price => Price range + Price matching + Loyalty Promotion => Pull (flyers) +Push (salespeople) + Cooperative advertising Place => Retail gravitational models Presentation => Visual Merchandising => Store design / Planograms => Retail atmospherics => Enhancing and immersive experience using augmented reality Personnel => Selling => Educating => Visual Merchandising => Stock Keeping >>Big-Box Food Retailer Comes in three types: supercentres, hypermarkets, and warehouse clubs. Larger than conventional supermarkets, they carry both food and nonfood items. Ex) Supercentres and warehouse clubs are popular in Canada, whereas hypermarkets tend to flourish in Europe and South America. Hypermarkets (Carrefour) and warehouse clubs (Costco) generally carry a greater percentage of food. (Identifying Types of Retailers - Food Retailers) >>Challenges in Omnichannel Retailing - Privacy issues because providing an omnichannel experience requires tracking customers
- Pricing issues because firms end up charging different prices to customers depending on the channel of ordering/buying (e.g., online vs. in-store) - Inventory management and supply chain issues - Customer relationship management issues - How consistent is customer experience across different touchpoints? - Brand image consistency challenges >>Channel Member Characteristics - Size of retailer (large vs. small) - Online vs In-store (Choosing a Retail Partner) >>Channel Structure - Degree of vertical integration - Manufacturer brand equity among retailers and consumers - Power in the marketplace (Choosing a Retail Partner) >>Choosing a Retail Partners > Channel Structure > Customer Expectations > Channel Member Characteristics >>Considerations in Developing a Retail Strategy 1. Choosing Retail Partners 2. Identifying Types of Retailers 3. Developing a Retail Strategy 4. Managing a Multichannel Strategy >>Convenience store Provides a limited number of items at convenient locations in small stores with a speedy checkout. Ex) Stores such as 7-Eleven generally charge higher prices than most other types of food stores. Most convenience stores also sell gasoline, which accounts for more than 55 percent of their annual sales.
(Identifying Types of Retailers - Food Retailers) >>Conventional Supermarket Offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format. Ex) Safeway is a popular supermarket in Western Canada; Sobeys is common in Central Canada and on the East Coast. (Identifying Types of Retailers - Food Retailers) >>Customer Expectations - Target market preferences - Target market buying behaviour - Target market's need or expectation of the experience (Choosing a Retail Partner) >>Food Retailers Conventional Supermarket Big-Box Food Retailer Convenience Store (Identifying Types of Retailers) >>General Merchandising Retailers Discount - a broad variety, limited service, low prices (e.g., Walmart) Specialty - limited number of complementary merchandise in a relatively small store (e.g., Sephora) Category - a narrow variety but a deep assortment of merchandise (e.g., Ikea) Department store - broad variety, deep assortment, some customer service, organized into separate departments (e.g., Hudson's Bay) Drugstore - specialty store, health & personal grooming products, pharmaceuticals (e.g., Rexall) Off-Price Retailer
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