Retailing (Professor Mathur)

Sameer Mathur Assistant Professor (Marketing) www.smathur.com:

Sameer Mathur Assistant Professor (Marketing) www.smathur.com Retailing

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2 FREE TEACHING RESOURCES ON MARKETING MANAGEMENT at www.smathur.com/teaching.php Over 100,000 views by Management students and business professionals from over 90 different countries These presentations are part of Sameer Mathur's teaching portfolio. They are free to view or download for non-profit, academic use. Disclaimer: These teaching materials have been compiled from multiple, non-credited sources for non-profit, academic use. Copyright is retained by the original content creators. Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : sameer.mathur@mcgill.ca Twitter: @ProfessorMathur Facebook: Click Here

Retailing:

Retailing 3

Retailing in the USA:

Retailing in the USA Source: walmart.com, target.com, kmart.com; Business 2.0, June 2003 4

Retailing in the USA:

Retailing in the USA Company 1 st Store Goal Wal-Mart Rogers, Ark. July 1962 Slash prices. Makeup difference in volume Target Roseville, MN May 1962 Discount retailer with strong sense of value Kmart Garden City, MI March 1962 Bring discount store concept to suburban malls Source: walmart.com, target.com, kmart.com; Business 2.0, June 2003 5

Top 5 Retailers:

Top 5 Retailers Source: walmart.com, target.com, kmart.com; Business 2.0, June 2003 6

Next 5 Retailers:

Next 5 Retailers 7

Canadian Retail Sales by Sector :

Canadian Retail Sales by Sector 8

Retail Saales by Province/Territory:

Retail Saales by Province/Territory 9

Types of Retailers:

Types of Retailers 10

Retail Life Cycle:

Retail Life Cycle 11

Retailer Classification:

Retailer Classification Amount of service Product lines Relative prices Organizational approach Self-service retailers Customers are willing to self-serve to save money Convenience stores and fast moving shopping goods Limited-service retailers Most department stores Full-service retailers Salespeople assist customers in every aspect of shopping experience High-end department stores and specialty stores Retailers Are Classified By: 12

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Chapter 13 Version 6e 13 Full Service Self Service Discount stores Exclusive stores Factory outlets Warehouse clubs Level of Service

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Chapter 13 Version 6e 14 Type of Retailer Department Store Specialty Store Supermarket Convenience Store Drugstore Full-line Discounter Specialty Discounter Warehouse Clubs Off-price Retailer Restaurant Service Level Mod Hi-High High Low Low Low-Mod Mod-Low Mod-Low Low Low Low-High Assort- ment Price Gross Margin Broad Narrow Broad Med-Narrow Medium Med-Broad Med-Broad Broad Med-Narrow Med-Narrow Mod-High Mod-High Moderate Mod High Moderate Mod Low Mod Lo-low Low-lower Low Low-High Mod High High Low Mod High Low Mod Low Mod Low Low Low Low-High

Retailer Classification:

Retailer Classification Amount of service Product lines Relative prices Organizational approach Specialty stores Narrow product lines with deep assortments Department stores Wide variety of product lines Supermarkets Convenience stores Limited line Superstores Food, nonfood, and services Retailers Are Classified By: 15

Breadth versus Depth:

Breadth versus Depth 16

Retail Positioning Matrix:

Retail Positioning Matrix 17

Retailer Classification:

Retailer Classification Amount of service Product lines Relative prices Organizational approach Discount stores Low margins are offset by high volume Off-price retailers Independent off-price retailers TJ Maxx, Marshall’s Factory outlets Levi Strauss, Reebok Warehouse clubs Sam’s Club, Costco Retailers Are Classified By: 18

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Currently has over 1500 stores Also sells products designed specifically for Target. defensible niche with middle and upper-end customers with low price but high style. Source: Datamonitor 19

Factory Outlets:

Factory Outlets 20

Retailer Classification:

Retailer Classification Amount of service Product lines Relative prices Organizational approach Corporate chain stores Commonly owned / controlled Retailer cooperatives Groups of independent retailers who buy in bulk Franchise organizations Based on something unique Retailers Are Classified By: 21

Ownership:

Chapter 13 Version 6e 22 Independent Retailers Chain Stores Franchises Classification of Ownership Ownership

Retail Marketing Strategy:

Develop the “Six P’s” Define & Select a Target Market Key Tasks in Strategic Retailing Retail Marketing Strategy

Target Market:

24 STEP 1: Segment the Market Demographics Geographics Psychographics Target Market

Retailing Mix:

Chapter 13 Version 6e STEP 2: Choose the Retailing Mix Product Price Promotion Place Personnel Presentation Retailing Mix

Retailing Mix:

Chapter 13 Version 6e 26 Target Market Product Price Promotion Place Personnel Presentation Retailing Mix

Product Offering:

27 The mix of products offered to the consumer by the retailer; also called the product assortment or merchandise mix. Product Offering

Retail Promotion Strategy:

Chapter 13 Version 6e 28 Retail Promotion Strategy Advertising Public Relations Publicity Sales Promotion Retail Promotion Strategy

Location:

Location Large, long-term commitment of resources Location will affect future growth Local environment may change over time

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Chapter 13 Version 6e 30 Freestanding Store Shopping Center Mall Location Decisions

Price:

Price Chapter 13 Version 6e 31 Quality Image High Price Low Price Good Value

Presentation of Store:

Chapter 13 Version 6e 32 Employee Type & Density Merchandise Type & Density Fixture Type & Density Sound Odors Visual Factors Factors in Creation of a Store’s Atmosphere Presentation of Store

Personal and Customer Service:

Personal and Customer Service

Retailing Mix:

Chapter 13 Version 6e 34 Target Market Product Price Promotion Place Personnel Presentation Retailing Mix

Retailing:

Retailing 35

Readings P396, 5. Retailing P398, The Value and Scope of Retailing P398, Form of Ownership P399, Classifying Retail Outlets P401, Level of Service; Merchandise Line P403, Nonstore Retailing; Automatic Vending P404, Direct Mail and Catalogues P404, Television Home Shopping; Online Retailing P405, Telemarketing P406, Retailing Strategy P406, Positioning a Retail Store P408, Retailing Mix P412, The Changing Nature of Retailing P415, Challenges Canadian Retailers Face… :

Readings P396, 5. Retailing P398, The Value and Scope of Retailing P398, Form of Ownership P399, Classifying Retail Outlets P401, Level of Service; Merchandise Line P403, Nonstore Retailing; Automatic Vending P404, Direct Mail and Catalogues P404, Television Home Shopping; Online Retailing P405, Telemarketing P406, Retailing Strategy P406, Positioning a Retail Store P408, Retailing Mix P412, The Changing Nature of Retailing P415, Challenges Canadian Retailers Face… 36

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37 FREE TEACHING RESOURCES ON MARKETING MANAGEMENT at www.smathur.com/teaching.php Over 100,000 views by Management students and business professionals from over 90 different countries These presentations are part of Sameer Mathur's teaching portfolio. They are free to view or download for non-profit, academic use. Disclaimer: These teaching materials have been compiled from multiple, non-credited sources for non-profit, academic use. Copyright is retained by the original content creators. Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : sameer.mathur@mcgill.ca Twitter: @ProfessorMathur Facebook: Click Here

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38 Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : sameer.mathur@mcgill.ca Twitter: @ProfessorMathur Facebook: Click Here RELATED SLIDES CLICK BELOW TO LEARN ABOUT: 1. How China Influences Retailing 2. Integrated Marketing Communications POPULAR SLIDES CLICK BELOW TO LEARN ABOUT: 1. Segmentation and Targeting 2. Positioning, Perceptual Maps