marketing gdo

Retail Marketing

Riccardo Banella - Genoa - Italy - Workshop GDO

Why are we here?


Because the world is changing

Our work of retail manager is always more competitive

The customer is more and more aware of the value of its

choice

Operating profit, for each finished good, is decreasing

So, what can we do today?


We can speak about us and our

C u s t o m e r s

How are the customers changing?


• The expectations of service for thecustomers are risen continuously

• The Customers have more knowledgeon own rights to the quality

• The customers have the right and thepossibility to choose the store andtherefore, this chosen may cause theeconomic growth of a store and thefailure of an other.

Look at the next slides and then think it over!


DEVELOPMENT POINTS OF SALE

1996 2004 2005 2006

Traditional retail 615186 648000 654000 664000

No food 408513 467000 475000 487000

Food 206673 181000 179000 177000

Pedlar 107144 121000 126000 128000

No food 72798 90000 95000 98000

Food 34346 31000 31000 30000

Large-scale retail trade 15469 19957 20368 21136

No food 1659 2228 2339 2656

Department Store 980 732 746 710

Large Specialist Store 679 1496 1593 1946

Food 13810 17729 18029 18480

Hypermarket (> 2500 m²) 173 297 334 355

Supermarket (400-2500 m²) 6126 8012 8171 8410

Superettes (200-400 m²) 5500 6585 6587 6495

Hard Discount (< 1000 m²) 2011 2835 2937 3220

Sources: Istat, Ministero Attività Produttive Italia, other


Competitors development in No Food Retail - Italy


More competitors in the market but with the same (or smaller) number of

customers and an extraordinary variety of the demand : this is the situation in Italy but also in other industrial Countries in the world.

What is the magic “word” for exceed this difficulty, for increase our

customers portfolio?

We must improve the quality.


What do we mean for Quality?

We want that our customers are happy, delighted, to buy our

product or service because one happy customer makes large gains

to the our company!

And the customer can reach the happiness with the high quality of the organization, service, people of

the retail company.


Quality is the customer loyalty.

Because “only one” loyal customer is worth a lot of “not loyal” customers, according to different international

customer research.

On average, the purchases of a loyal customer can be 70-80% on total turnover of the retail company!*

So we understand because we “must” have loyal customers!

Sources: International Research Company, 2006Riccardo Banella - Genoa - Italy - Workshop GDO

To development a customer loyaltywe must consider four essentialaspects:

1. the service which we offer is arelation

2. it is an activity, not an object

3. supplying and use of the servicecarry out at the same time

4. the customer is involvepersonally


The manager must plan four phasesto realize a quality project:

1. expected service: it is therequirements list of the expectedquality from the customer;

2. perceived service: it is themeasurement of the perceivedquality vs. customer

3. supplied service: it is thesupplying, really, of the service

4. projected service: it is the projectof a new service on the grounds ofthe previous measurements


These phases represent the plan for Customer Management and must be

developed in different timing.

The measurement must include the comparison with other competitors so that

the cost of quality is coherent with competitive environment.

The retail company, infact, must satisfy the highest level of quality, but it can have a “tolerance zone” in which the customer accepts a certain level of dissatisfaction

before to change the supplier.


Customer

Competitors

Retail Company

Customer Management

Customer management

planning

Benchmarking

Performance supplied tothe customer

Customer expectations

Customer perceptions


Customer Satisfaction Level

Satisfied customer “tolerance zone"

Customer more satisfied

Desired level

Unsatisfied customerInsufficient level

Right level

Right level


But what do the manager make to

realize a Quality Plan?


The manager must be taken as a “model” of communication,

relationship and professionalism for all the members of his team: there is not quality without a manager who makes

quality himself.

The manager serves the customers between the staff.

So in the quality plan we must consider also “the people satisfaction” where the manager must measure the one’s

quality towards the staff.


But remember: to have a happy customer (external or internal) we

must also communicate that

we “can” smile

In this actual world the information is global and we think, really, by

internet, that to make friends with the people is easy

Instead, a lot of people is alone and only one smile, in our store,can be an important giftto give with our service


I hope that this brief conversationis been useful or, at least, curiousfor you.

I thank you for your attention but Iwant to give you a last suggestion


S M I L E!


marketing gdo

Marketing

italy workshop gdoinvolve

customer loyalty

quality plan

expected quality

quality project

perceived quality

happy customer external

cost of quality