contemp retail managment Flashcards
• How retailers add value
o Offer Services
o Hold inventory
o Provide assortments
o Break bulk
• Retailers role in the supply chain
Retailers are the final place where the customers get lined to the manufacturers
Vertical Integration
o When a comp preforms more then one set of activates in the channel
Backward integration
o when the retailer also preforms distribution and manufacturing activates
♣ Jcpenny
Forward integration
o manufactures undertake retailing activates… selling direct. Manufactures that are also retailers.
♣ Ralph Lauren operates its own store
♣ Large retailers engage in both wholesaling and retailing
Strategic vs tactical decisions
o Stratigic decisions are focusing on the long term
o Tactical is how you are implicating or doing it.
Retail stragety
o Need to identify the the compition
o Identifying the customers
Compition
♣ Inratype comp: Dillards vs JCPennys
♣ Intertype Comp: Allways some kinda of overlap. Dillards vs Wal-Mart
General trends in retailing
o New types of retailers… online
o Globalization
o Growth in services retailing
o Growth in omini shopping by traditional retailers
o Increased use of technology to reduce cost, increase value delivered
Types of retailers
General Trends Types of Retailers Retail Mix Assortment Services General Merchandising Retailers Careers
retail mixes
o Variety- breth of merch… number of cataglories
o Assortment – depth of merch… number of skus
Omniretailer
The Multichannel Retailer
benefits of stores
♣ Touching and feeling merch ♣ Personal service ♣ Risk reduction browsing ♣ Immediate gratification ♣ Cash payments
benefits of catalogs
♣ Safety ♣ Convenience ♣ Ease of use ♣ Think about what you are doing ♣ Places away from malls
benefits of catalogs
♣ Safety ♣ Convenience ♣ Broad and Deep Selections ♣ Extensive and timely information ♣ Personalization
benifits of multichannle
- low cost
- increassd assortment
- current information
• Elements in Retail Strategy
o Target Market
o Retail Format
- Sustainable Competitive
Advantage
• Criteria in selecting a target market
o Want it to be large and growing
o Little competition
o More profits
o Consistent with competitive advantage
• Sources of Sustainable Completive Advantage
♣ location ♣ customer loyalty ♣ customer service ♣ exclusive merch ♣ low-cost supply chain ♣ information systems ♣ buying power with vendors ♣ committed employees
Less sustainable competitive advantage
♣ Better computer’s ♣ More employees ♣ More merch ♣ Greater assortment ♣ Lower prices ♣ More advertising ♣ More promotions ♣ Cleaner stores
• Customer Loyalty
o Way to keep the customers coming back and keeping the attention on them
♣ Points
♣ Credit card
• Branding
o Can create emotional attachments
o Positioning is ensuring that they think of the brand first
• Vendor Relationships
o Low cost- efficiency through coordination ♣ Electronic data interchange ♣ Collaborative planning o Exclusive sale of desirable o Special treatment
• Human Resources
o Strategies to recruit and retain employees
