2. Retailers and retailing:
Goals of the Retailer:
is to select the best location, attract its customers
to come to the store, get them to ‘shop’ the
store, get them to buy the ‘best mix’ (most
profitable items) in the store, and finally to get
them to come back again.
Building up it’s customer base through aggressive
advertising and promotion, refining
its messaging and targeting as it learns more about
the catchment area of the store.
3. Attractive window displays or good
visibility of its most attractive products
(which is why grocers always put fresh
fruit and vegetables at the entrance of
their stores).
Draw customers further in and around the
store by smart layout and merchandising.
How to Get Customer to return to the store
By Loyalty programs and quality of service
and competitive prices
5. Online Retailing
-in the case of online retailing, increase opening
hours to 24/7, making themselves available
whenever the customer wants to buy, without the
attendant cost
in store and payroll costs
-increase reach in terms of being accessible to any
customer in the world with a phone or online
computer, without needing to establish anything
more substantial than a local language website.
6. Challenges of drawing the customer to
your online store:
1-you must have an established retailing brand.
2- the costs of maintaining are top-of-mind
awareness
3-making the online shopping experience as easy
and intuitive
4- the challenge of up-selling and cross-selling
customers to buy more than the specific product
they have come online to buy
5-the inability to answer immediate questions or
handle objections
7. The retail business model:
The retailer’s business is all about volumes.The
more products it can sell out of its stores, the more
times it will earn a margin and the more productive
will be its space and its employees. And with high
volumes it will be able to turn to its suppliers and
demand higher margins
The main goal of retail business model: isTo grow,
retailers ,add stores and aim to increase their sales
per store
8. Requires of increasing sales per store:
1- Fine-tuning of category mix
2-Good selection of product lines
3-Merchandising
4- Effective marketing
5-Tight management.
9. HOW BUSINESS MODEL WORKS
PRODUCTIVITY OF SPACE MEASURES FOR
DIFFERENT TYPES OF RETAILERS
10. Earn and Turn:
referring to the need to maximize the margin (earn)
and the number of times they can earn that margin
Retailers often describe their entire business model
in terms of ‘earn and turn’
we can classify all retailers as tending towards one
of these
two models: high earn and low turn; or low earn
and high turn
11. Mapping of types of retailer in terms of their
typical ‘earn’ and
‘turn’ characteristics
12. Layout and planning
-Retailers think of products as needing to earn their
place on the shelves in their stores.
-In any store there are several areas that can
generate especially high rates of sale because of
their visibility and the proportion of the in-store
traffic that passes them.
-These are typically the areas around the check-out
or cash point and queuing lines , in open areas
towards the front of the store and near the
entrances and exits.
13. These special locations
can be used in different ways, to put the
spotlight on:
1-products currently under promotion or supported by a
current advertising campaign
2- fast-moving products, which can be in both their
normal/category location and in these high attention
zones to ensure there is sufficient product on display
3- high-margin accessories or impulse-purchase items
that can benefit from catching the customer’s eye
4- solutions or combinations of products 1- products
currently under promotion or supported that go
together logically to make a set, supported by display
panels
14. Ranging and merchandising:
Once the retailer has decided how to lay out its stores,
where to put categories
and how to set them out, it has to decide how much
space to allocate
to each category and how many SKUs
Large retailers and major brands can afford to do
the consumer research that provides the insight
they need to understand how to lay out the
category.
