copyright © 2007 pearson education canada 13-1 wholesaling the buying or handling of merchandise...
TRANSCRIPT
Copyright © 2007 Pearson Education Canada 13-1
Wholesaling
The buying or handling of merchandise and
subsequently reselling it to organizational users,
other wholesalers, and retailers.
Copyright © 2007 Pearson Education Canada 13-2
Wholesaling Functions
ManufacturerManufacturer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Market Coverage
Holding Inventory
Order Processing
Market Intelligence
Sales Support
Assortment
Breaking Bulk
Copyright © 2007 Pearson Education Canada 13-3
Types of Wholesalers
1. Manufacturer Wholesalers
2. Merchant Wholesalers
3. Agents and Brokers
4. Commission Merchants
5. Auction Companies
Copyright © 2007 Pearson Education Canada 13-4
Retailing
Activities related to the sale of goods to final
consumers, for personal, family, and
household use.
Sport Chek
Sears
Old Navy
Copyright © 2007 Pearson Education Canada 13-5
Retailing Functions
ManufacturerManufacturer
WholesalerWholesaler
RetailerRetailer
ConsumerConsumer
Sorting
Inventory
Marketing
Merchandising
Credit and Services
Copyright © 2007 Pearson Education Canada 13-6
Retail by Ownership
ChainsChains
IndependentsIndependents
FranchisesFranchises
Operate 4 or more stores in same business
Operate 1 to 3 stores
Operate stores based on contractual agreement
Copyright © 2007 Pearson Education Canada 13-7
Franchising
A retailer operating in an identical manner in all locations.
Piggybacking and co-branding are now popular among franchise retailers.
Pizza Hut, KFC and Taco Bell under one roof.
Copyright © 2007 Pearson Education Canada 13-8
Retail by Product Strategy
Stores are classified by products offered for sale.
SpecialtySpecialty
Limited LineLimited Line
“Big Box”“Big Box”
General Merch. General Merch.
Old Navy, Bluenotes
Aldo, La Senza
Staples Business Depot
Sears, Bay
Copyright © 2007 Pearson Education Canada 13-9
Retail by Service Strategy
Stores are classified by the extent of services offered.
Fill ServeFill Serve
Limited ServeLimited Serve
Self ServeSelf Serve
Harry Rosen, Sears
Wal-Mart
Costco
Copyright © 2007 Pearson Education Canada 13-10
Non-Store Retailing
Vending and Automated Merchandising
Direct Selling
Direct Home Retailing
Catalogue Marketing
Temporary Displays and Kiosks
Copyright © 2007 Pearson Education Canada 13-11
E-Tailing
Time-pressed consumers are looking at convenient alternatives.
1. Only 1% of retail sales occur online but there is significant potential.
2. 2.8 million Canadian households have bought online.
3. Customer service and fast delivery are important with online marketing.
Copyright © 2007 Pearson Education Canada 13-12
Elements of Retail Planning
The retail marketing mix involves decisions in six key areas.
1. Location
2. Brand Identity
3. Atmosphere
4. Merchandise Assortment
5. Merchandise Control
6. Marketing Communications Strategy
Copyright © 2007 Pearson Education Canada 13-13
Location
Location!
Location!
Location!
Location!
Location!
Location!
•Central Business Area
•Suburban mall
•Outlet Mall
•Mega-Mall
•Power Mall
•Lifestyle Mall
•Strip mall
•Standalone Store
Copyright © 2007 Pearson Education Canada 13-14
Brand Identity
Branding strategies influence consumers’ perceptions of a store.
Harry RosenHarry RosenQuality, contemporary fashion and personal service (a cut above).
La SenzaLa SenzaRacy and exotic (male view); pretty and comfortable (female view).
Copyright © 2007 Pearson Education Canada 13-15
Brand Image
The bedroom atmosphere of La Senza stores helps create a desired image.
Copyright © 2007 Pearson Education Canada 13-16
Atmosphere
The physical characteristics of the store also influence consumers’ perceptions.
Appearance(inside/outside)
Store Layout
Displays
Appearance(inside/outside)
Store Layout
Displays
Wal-Mart has bins, sale signs and industrial style shelves.
La Senza has an elegant bedroom-style environment
Copyright © 2007 Pearson Education Canada 13-17
Display Concepts
To differentiate and improve the shopping experience, new concepts are tried.
Specialty boutiques within stores
Demonstration centres
Minimalist approach to displays
Copyright © 2007 Pearson Education Canada 13-18
Merchandise Assortment
The assortment of merchandise is described as breadth of selection and depth of selection.
BreadthBreadth
DepthDepth
The number of classifications of goods.
The number of brands and styles in each classification.
Copyright © 2007 Pearson Education Canada 13-19
Product Mix Strategy
Retailers opt for consistency of product but some add unrelated product to the mix.
1. Assortment Consistency
2. Scrambled Merchandising
3. Stock Balance
Copyright © 2007 Pearson Education Canada 13-20
Merchandise Control
Inventory turnover is a key measure of retail success and control.
InventoryTurnover
SalesAverage Inventory=
If sales are $1,000,000 and the average inventory is $200,000, the inventory turnover would be 5.
Copyright © 2007 Pearson Education Canada 13-21
Marketing Communications
Communications is needed to attract attention and drive customers to the stores.
Promote store much like a brand
Think brand but act retail
Get emotional with the message
Need effective visual merchandising in store.
Canadian Tire: “It all starts here.”