Types of Retailers
What is the opportunity?
Environmental Factors: “Story of Stuff” (on blog) Macro- Environment Competitors Customers Micro- Environment Technology S...
Describing Different Types of Retailers (Retail Mix) Customer Service Store Design & Display Location Communications Mix M...
General Trends in Retailing <ul><li>New Types of Retailers </li></ul><ul><li>Increased Concentration </li></ul><ul><li>Glo...
Describing Different Types of Retailers (Retail Mix) Customer Service Store Design & Display Location Communications Mix M...
A Critical Decision Variety Assortment Services Pricing
“ Blockbuster was not concerned about Netflix because its research showed more than 90% of video renters decide on the vid...
Environmental Factors Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal I...
Oops...
Now this?
Apple Looking Less Shiny? Look Again. Text &quot;When Steve came to us with this idea, it was a no-brainer,&quot; says Jim...
Apple’s Strategy: Adding “Transformative”  Service Variety Assortment Services Pricing
Characteristics of Food Retailers
Group Activity Variety Assortment Services Pricing
<ul><li>What online services do each of these retailers offer? </li></ul><ul><li>What value do they add? </li></ul><ul><li...
<ul><li>FOOD RETAILERS </li></ul><ul><ul><li>Safeway (Supermarket):  http://shop.safeway.com / </li></ul></ul><ul><ul><li>...
<ul><li>Food Retailers </li></ul><ul><li>Primary Shopping Format for Food Sales Growth Rates by Retail Format </li></ul>
<ul><li>Fresh perishables </li></ul><ul><li>Health-conscious & ethnic </li></ul><ul><li>In-store experience </li></ul><ul>...
<ul><li>Department Stores </li></ul><ul><li>Specialty Stores </li></ul><ul><li>Category Specialists </li></ul><ul><li>Home...
Department stores in an eroding market <ul><li>Attempting to increase the amount of exclusive merchandise they sell </li><...
Why Sears Must Engineer Its Own Makeover Text “ With a potential recession on the horizon, retail experts say it is now cl...
Issues in Discount Store Retailing <ul><li>Only Big Three Left </li></ul><ul><li>Wal-Mart, Kmart, Target </li></ul><ul><li...
<ul><li>Decline in Mall Shopping and Apparel Sales </li></ul><ul><li>-Lack of New Fashions </li></ul><ul><li>-Less Interes...
<ul><li>Consolidation  – Walgreens, CVS, Rite-Aid </li></ul><ul><li>Competition from Supermarkets, discount Stores and mai...
<ul><li>Deep and Narrow Assortments  Destination Stores </li></ul><ul><li>Low Price and Service </li></ul><ul><li>Wholesal...
Services vs. Merchandise Retailers Intangibility   -Problems in Evaluating Service Quality   -Performance of Service Provi...
Article Summary Assignment #1: Write a two-page paper that addresses these issues <ul><li>Find an article in a business pu...
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Bus425 Chapter2

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  • Bus425 Chapter2

    1. 1. Types of Retailers
    2. 2. What is the opportunity?
    3. 3. Environmental Factors: “Story of Stuff” (on blog) Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political Issues Environmental Issues RETAILER
    4. 4. Describing Different Types of Retailers (Retail Mix) Customer Service Store Design & Display Location Communications Mix Merchandise Assortments Pricing Retail Strategy
    5. 5. General Trends in Retailing <ul><li>New Types of Retailers </li></ul><ul><li>Increased Concentration </li></ul><ul><li>Globalization </li></ul><ul><li>Growth In Services Retailer </li></ul><ul><li>Demise of Pure Electronic Retailers (Webvan, eToys, etc) </li></ul><ul><li>Growth in Use of Multi-Channel Retailing by Traditional Retailers </li></ul><ul><li>Increase Use of Technology to Reduce Cost, Increase Value Delivered </li></ul><ul><li>New Types of Retailers </li></ul>
    6. 6. Describing Different Types of Retailers (Retail Mix) Customer Service Store Design & Display Location Communications Mix Merchandise Assortments Pricing Retail Strategy Type of Merchandise Variety and Assortment
    7. 7. A Critical Decision Variety Assortment Services Pricing
    8. 8. “ Blockbuster was not concerned about Netflix because its research showed more than 90% of video renters decide on the videos they want to watch the same day they rent them.”
    9. 9. Environmental Factors Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political & Economic Issues Environmental Issues RETAILER
    10. 10. Oops...
    11. 11. Now this?
    12. 12. Apple Looking Less Shiny? Look Again. Text &quot;When Steve came to us with this idea, it was a no-brainer,&quot; says Jim Gianopolus, CEO of News Corp.'s (NWS) 20th Century Fox. While he admits there are many other ways to get movies, he thinks Apple can cut through the clutter. &quot;I think this will be a transformative version of the rental model,&quot; Gianopolus says. Holders of Blockbuster (BBI) shares appear to concur. The company's shares plunged 17% amid concern Apple will eat into its film-rental business. January 16, 2008
    13. 13. Apple’s Strategy: Adding “Transformative” Service Variety Assortment Services Pricing
    14. 14. Characteristics of Food Retailers
    15. 15. Group Activity Variety Assortment Services Pricing
    16. 16. <ul><li>What online services do each of these retailers offer? </li></ul><ul><li>What value do they add? </li></ul><ul><li>What do they imply about the other elements of the marketing mix for this retailer? </li></ul><ul><li>As a class - how do services offered vary within each main group (Food & Gen. Merchandise? Do any seem to be “standard”? </li></ul>Group Activity Online Services
    17. 17. <ul><li>FOOD RETAILERS </li></ul><ul><ul><li>Safeway (Supermarket): http://shop.safeway.com / </li></ul></ul><ul><ul><li>Target (Super Center): http://www.target.com / </li></ul></ul><ul><ul><li>Costco (Warehouse Club): http://www.costco.com / </li></ul></ul><ul><li>GENERAL MERCHANDISE RETAILERS </li></ul><ul><ul><li>Sears (Dept. Store): http://www.sears.com </li></ul></ul><ul><ul><li>Abercrombie & Fitch (Specialty Store): http://www.abercrombie.com / </li></ul></ul><ul><ul><li>Home Depot (Category Specialist): http://www.homedepot.com/ </li></ul></ul>Group Activity Online Services
    18. 18. <ul><li>Food Retailers </li></ul><ul><li>Primary Shopping Format for Food Sales Growth Rates by Retail Format </li></ul>
    19. 19. <ul><li>Fresh perishables </li></ul><ul><li>Health-conscious & ethnic </li></ul><ul><li>In-store experience </li></ul><ul><li>Private brand labels </li></ul>How supermarkets are competing
    20. 20. <ul><li>Department Stores </li></ul><ul><li>Specialty Stores </li></ul><ul><li>Category Specialists </li></ul><ul><li>Home Improvement Centers </li></ul><ul><li>Discount Stores </li></ul><ul><li>Drugstores </li></ul><ul><li>Off-Price retailers </li></ul><ul><li>Extreme Value Retailers </li></ul>Types of General Merchandise Retailers
    21. 21. Department stores in an eroding market <ul><li>Attempting to increase the amount of exclusive merchandise they sell </li></ul><ul><li>Undertaking marketing campaigns to develop strong images for their stores and brands </li></ul><ul><li>Building better relationships with their key customers </li></ul>Royalty-Free/CORBIS
    22. 22. Why Sears Must Engineer Its Own Makeover Text “ With a potential recession on the horizon, retail experts say it is now clear Chairman Edward S. Lampert must engineer a radical makeover of the 121-year-old retailer to prove it can thrive alongside bigger rivals. To halt the sales and profit declines, the company's Sears and Kmart stores must forge new roles for themselves that will distinguish them in customers' eyes from competitors such as Kohl's Corp., J.C. Penney Co., Target Corp. and Wal-Mart Stores Inc. January 16, 2008
    23. 23. Issues in Discount Store Retailing <ul><li>Only Big Three Left </li></ul><ul><li>Wal-Mart, Kmart, Target </li></ul><ul><li>Wal-Mart’s Dominance </li></ul><ul><li>Differentiate Strategy </li></ul><ul><li>Wal-Mart = Low Price and Good value </li></ul><ul><li>Target = More Fashionable Apparel </li></ul><ul><li>Competition from Category Specialists </li></ul><ul><li>Toys-R-Us, Circuit City, Sports Authority </li></ul>McGraw-Hill Companies, Inc./Gary He, photographer
    24. 24. <ul><li>Decline in Mall Shopping and Apparel Sales </li></ul><ul><li>-Lack of New Fashions </li></ul><ul><li>-Less Interest in Fashion </li></ul><ul><li>-Increase Price Consciousness </li></ul><ul><li>Lifestyle Formats – Abercrombie and Fitch and Hot Topics </li></ul>Issues in Specialty Store Retailing McGraw-Hill Companies, Inc./Gary He, photographer
    25. 25. <ul><li>Consolidation – Walgreens, CVS, Rite-Aid </li></ul><ul><li>Competition from Supermarkets, discount Stores and mail-in orders </li></ul><ul><li>Evolution to a New Format </li></ul><ul><li>Stand Alone Sites with Drive Thru Windows </li></ul><ul><li>Offering more frequent purchase food items </li></ul><ul><li>Improved systems provide personalized service in the pharmacy </li></ul>Issues in Drug Store Retailing
    26. 26. <ul><li>Deep and Narrow Assortments Destination Stores </li></ul><ul><li>Low Price and Service </li></ul><ul><li>Wholesaling to Business Customers and Retailing to Consumers </li></ul><ul><li>Incredible Growth </li></ul>Category Specialists Ryan McVay/Getty Images
    27. 27. Services vs. Merchandise Retailers Intangibility -Problems in Evaluating Service Quality -Performance of Service Provider Simultaneous Production and Delivery -Importance of Service Provider Perishability -No Inventory, Must Fill Capacity Inconsistency of the Offering -Importance of HR Management
    28. 28. Article Summary Assignment #1: Write a two-page paper that addresses these issues <ul><li>Find an article in a business publication about a retailer changing their retail strategy </li></ul><ul><li>What strategic elements are they changing? Customer Service? Pricing? </li></ul><ul><li>What factors within their macro-environment are the catalyst for this change? </li></ul><ul><li>What changes have occurred in their micro-environment ? </li></ul><ul><li>What effect do they hope this will have on their customers behavior and/or perceptions </li></ul><ul><li>Do you think this will work? Why or why not? What are the risks? </li></ul>Customer Service Retail Strategy Store Design & Display Location Communications Mix Merchandise Assortments Pricing Macro- Environment Competitors Customers Micro- Environment Technology Social Issues Ethical/Legal Issues Political & Economic Issues Environmental Issues RETAILER
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