Professional Documents
Culture Documents
L1 - Examples of Retail Mix
L1 - Examples of Retail Mix
McGraw-Hill/Irwin
Retailing Management,
1-2
The World of Retailing
Content 4:4:Customer
Content Customer Buying Behavior
Buying Behavior
1-3
Questions
1. What is retailing?
2. What are the roles of retailers in our society?
3. Do retailers add value?
4. What career and entrepreneurial opportunities
does retailing offer?
5. What types of decisions do retail managers
make?
1-4
1. What is Retailing?
1-5
Examples of Retailers
n Retailers:
BigC, thegioididong,
Guardian, Target, Macy’s,
Walmart, Amazon.com,
Avon…
Distribution Price
Promotion
1-7
Distribution Channel
1-8
Typical Supply Chain Network
Customers
Suppliers Plants
retailers
Distribution
Centers
2. What are the roles of retailers in our
society?
1-10
Manufacturing, Wholesaling and Retailing
1-12
Why Not Get Rid of the Middlemen?
§Better services to
customers
§More efficient
1-14
Example: Music Industry Channel
Composer Record
Publisher Music Retailer
Lyricist Company
Artist Distributor
1-15
Cost for CD
Retailer $5.00
Record Company • 4 out of 5 CDs fail to
Manufacturing .75 make a profit
Distribution 1.50
Marketing 2.00 • $300,000 cost to
Coop advertising 1.00 prepare a CD for
Artist/Repertoire 1.00 release
Artist royalty 1.25
Lyricist .75 • 30,000 recording
Overhead/Profit 2.00
artists
Total 15.25
1-16
How Retailers Add Value?
■ Provide Assortment
Buy other products
at the same time
■ Break Bulk
Buy it in quantities
customers want
■ Hold Inventory
Buy it at a
convenient place
when you want it
■ Offer Services
See it before you
buy; get credit;
layaway
Ryan McVay/Getty Images
1-17
How Retailers Add Value?
Bicycle is featured
on floor display
Bicycle is offered in
convenient locations
in quantities of one
Bicycle is
developed in
several styles
Bicycle is developed
at manufacturer
1-18
Examples: How Retailers Add Values
n BagBorrowerSteal.com
n jewelry and bag rental; Get (not buy, but borrow) exactly what you
want
n Home Depot
n DIYer (Do-it-yourselfer); Learn how to do it yourself with in-store
clinics and online workshops
1-19
World’s 20 Largest Retailers in 2015
Rank Company 2015 Retail Sales (000)
1 Wal-Mart Stores $353,108,000
Source:
2 The Kroger Co. $103,878,000
https://nrf.co
3 Costco $83,545,000 m/resources/
4 The Home Depot $79,297,000 annual-
retailer-
5 Walgreens Boots Alliance * $76,604,000
lists/top-100-
6 Target $73,226,000 retailers/stor
7 CVS Health $72,151,000 es-top-
8 Amazon.com $61,619,000 retailers-
2016
9 Albertsons $58,443,000
10 Lowe’s Companies $57,486,000
11 McDonald’s $35,837,000
12 Best Buy $35,148,000
13 Apple Stores / iTunes $34,949,000
14 Publix Super Markets $32,633,000
15 Macy’s $27,002,000 1-20
Nature of Retail Industry is Changing
To Today’s Retailer
1-21
Retailing is a High Tech Industry
1-22
Retailers are a Business Like
Manufacturers
Accounting Finance
Marketing
MIS
Operations
Human Resources
1-23
What career and entrepreneurial
opportunities does retailing offer?
n Purchase
n Accounting
1-24
Types of Jobs in Retailing
Retail Management
Decision Process
1-26
Retail Strategy
■ Identifying customers
§ What are the significant
demographic and life-style
trends
§ Who are your target
customers
1-27
Retail Strategy
1-28
JC Penney’s Strategic Evolution(1)
1-29
JC Penney’s Strategic Evolution(2)
1-30
Wal-Mart’s Strategic Evolution
1-31
Sears’ Strategic Evolution
1-32
Whole Foods Implementation
1-33
Decision Variables for Retailers
Customer Service
Communication
Mix
1-34
Examples of Retail Mix
1. Walmart
2. Claire
3. Macy
4. Target
1-35
1) Wal-Mart’s Retail Mix
Customer Location
Service
Communication Pricing
Mix
1-36
1) Wal-Mart’s Retail Mix
Location Strategy
Free-standing Stores
Customer
Service
Communication
Mix Pricing
1-37
1) Wal-Mart’s Retail Mix
Assortment Strategy
Customer
Service Location
Large Number
Store Design
and Display
of Categories
Few Items
Communication
Mix Pricing
in Each Category
1-38
1) Wal-Mart’s Retail Mix
Location
Pricing Strategy
Customer
Merchandise
Service
Assortment
Store Design
and Display
Communication
Mix Low, EDLP
1-39
1) Wal-Mart’s Retail Mix
Customer
Service Location
Communication Mix
Store Design Merchandise
and Display Assortment
Pricing
TV and Newspaper
Insert Ads
1-40
1) Wal-Mart’s Retail Mix
Customer
Service Location
Basic, Special
Merchandise
Displays Assortments
for Products
Communication
Mix Pricing
1-41
1) Wal-Mart’s Retail Mix
Customer Service
Limited
Location
Merchandise
Assortment
Store Design
and Display Pricing
Communication
Mix
1-42
2) Claire’s Retail Mix
1-43
2) Claire’s Retail Mix
Location Strategy
Enclosed malls
mer
Custo
e
Servic
s play
Stor e D i
er ch andise
M
nd Design r t ment
A A s s o
n
unicatio
m
Com
Mix g
Pricin
1-44
2) Claire’s Retail Mix
Assortment Strategy
r
t o me
Cu
s
c ation
e Lo
e rvic
S
e sign Jewelry, accessories and
re D
Sto s play
D i
and cosmetics for tweens and teens
c ation
m uni
m
Co Mix g
r icin
P
1-45
2) Claire’s Retail Mix
Location
Pricing Strategy
Customer Merchandise
Service Assortment
Store Design
and Display
Communication
Mix Modest with Sales
1-46
2) Claire’s Retail Mix
Customer
Service Location
Pricing
1-47
2) Claire’s Retail Mix
Customer
Service Location
Communication
Pricing
Mix
1-48
2) Claire’s Retail Mix
Customer Service
Modest
Location
Merchandise
Assortment
Store Design
& Display Pricing
Communication
Mix
1-49
3) Macy’s Retail Mix
Pricing
Communication Mix
1-50
3) Macy’s Retail Mix
Location Strategy
Enclosed Malls
Customer
Service
Communication
Pricing
Mix
1-51
3) Macy’s Retail Mix
Assortment Strategy
Customer
Service
Location
Communication
Mix Pricing
1-52
3) Macy’s Retail Mix
Store Design
& Display
1-53
3) Macy’s Retail Mix
Customer
Service Location
Pricing
1-54
3) Macy’s Retail Mix
Customer
Service Location
Merchandise
Racetrack with Displays
Assortments
Communication
Mix Pricing
1-55
3) Macy’s Retail Mix
Customer Service
Modest
Location
Merchandise
Assortment
Store Design
& Display Pricing
Communication
Mix
1-56
4) Target’s Retail Mix
1-57
4) Target’s Retail Mix
Location Strategy
Free-standing Stores
Customer
Service
Store Display
Merchandise
& Design
Assortment
m unication
Com
Mix Pricing
1-58
4) Target’s Retail Mix
Assortment Strategy
Customer
Service
Location
Large Number of Categories
Store Design
Private Labels
& Display
Few Items in Each Category
nic ation
mu
Com
Mix Pricing
1-59
4) Target’s Retail Mix
Store Design
& Display
Communication
Low to Modest
Mix
1-60
4) Target’s Retail Mix
Customer
Service Location
Store Design
Communication Mix Merchandise
& Display
Assortment
Pricing
TV and Newspaper
Insert Ads
1-61
4) Target’s Retail Mix
Customer
Service Location
1-62
4) Target’s Retail Mix
Customer Service
Limited
on
Locati
a n dise
ch
Mer
r t m ent
Asso
&
e sign
t o re D ing
S Pric
isp lay
D
ic ation
m un
Com
Mix
1-63
Ethical Situations for a Retail Manager
1-64
Checklist for Making Ethical Decisions
1-65