Chapter 5. Describe –Wheel of Retailing –Scrambled Merchandising –Retail Life Cycle Discuss...
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Transcript of Chapter 5. Describe –Wheel of Retailing –Scrambled Merchandising –Retail Life Cycle Discuss...
Chapter 5
• Describe– Wheel of Retailing– Scrambled Merchandising– Retail Life Cycle
• Discuss Retail Strategy Evolution• Examine Store-Based Retail Strategies
– Food-Oriented– General Merchandise
• Location• Operating Procedures• Goods/Services Offered• Pricing Tactics• Atmospherics• Customer Services• Promotional Methods
• Be Price-Oriented and Cost-Efficient• Be Upscale• Be Convenient• Offer Dominant Assortment• Offer Superior Customer Service• Be Innovative or Exclusive• Provide A Unique Way of Operating
Low-End Strategy• Low Prices• Limited Facilities and Services• Price Sensitive Consumers
Medium Strategy• Moderate Prices• Improved Facilities• Broader Base of Value- and Service- Conscious Consumers
High-Ended Strategy• High Prices• Excellent Facilities and Services• Upscale Customers
Low-Ended Strategy High-Ended Strategy
No Services or Services Chargedat Additional Fee (or Services May Be Limited to Credit and Returns
Elaborate Services Available Included in Price, Such As: Credit Decorating Delivery Gift Wrapping Alterations Layaway
Spartan Fixtures and Displays Elaborate Fixtures and Displays
Simple Retail Personnel Organization Elaborate Retail PersonnelOrganization
Price Emphasis in Promotion No Price Emphasis in Promotion
Self-Service or High Sales per StorePersonnel Ratio
Product Demonstrations, Low Sales Per Store Personnel Ratio
Crowded Store Interior Spacious Store Interior
Most Merchandise Visible Most Merchandise in Backroom
Low Rental location -- Side Street High Rental Shopping Center orCentral Business District Location
OriginalMerchandise
Mix
Shoes
Shoe PolishSandals
Slippers
ScrambledMerchandise
Mix
Shoes
Shoe PolishSandals
Slippers
Handbags
Glo
ves
Belts
Socks
Innovation Maturity DeclineAcceleratedDevelopment
MaturityInnovation DeclineAcceleratedDevelopment
Number of Competitors
Very Few Very Few Moderate Many Direct Moderate Direct Moderate Indirect Many Indirect
L
MaturityInnovation DeclineAcceleratedDevelopment
Growth/Profitability/Duration
Very Few Very Rapid Rapid Moderate to Slow Slow or Negative Low to Moderate High Moderate Very Low 3-5 Years 8 Years Indefinite Indefinite
L
MaturityInnovation DeclineAcceleratedDevelopment
Investment/Growth/Risk Decisions
Very Few Investment Min Investment High Tightly Controlled Growth Marginal Capital High Risk to Sustain in Untapped Markets Expenditures, & Accepted Growth Only if Necessary
L
MaturityInnovation DeclineAcceleratedDevelopment
Central Management Concerns
Very FewConcept Refinement Establishing a Excess Capacity & Engaging in aThrough Adjustment Preemptive Overstoring; Prolonging Run-Out & Experimenting Market Position Maturity & Revising the Strategy Business Concept
MaturityInnovation DeclineAcceleratedDevelopment
Use of Management Control Techniques
Very Few Minimal Moderate Extensive Moderate
MaturityInnovation DeclineAcceleratedDevelopment
Most Successful Management Style
Very Few Entrepreneurial Centralized Professional Caretaker
• Mergers• Diversification• Downsizing• Cost Containment• Value-Driven Retailing
• Convenience Store• Conventional Supermarket• Food-Based Superstore• Combination Store
– Supercenter– Hypermart
• Box (Limited-Line) Store• Warehouse Store
• Specialty– Category Killer
• Traditional Department Store
• Full-Line Discount Store• Variety Store• Off-Price Chain• Factory Outlet• Membership Club• Flea Market
• How the Wheel of Retailing, Scrambled Merchandising, and Retail Life Cycle Help Explain Performance
• The Evolution of Retail Strategy Mix• The Nature of Store-Based Retailers
– Food-Oriented– General Merchandise
Questions?