Marketing 475Retailing Management

Week I: 2002• Introductions• Ground rules• IRI exercises• Retail overview• Handout case 1

Introductions/Announcements

• Roll/registration: any problems?• Food Industry Certificate at PSU• Scholarships

Index Cards

• Name• Phone # for messages

•email address• Employer (if applicable)• Major; grad year• What is your goal upon graduating?

(specific)

Retailing!

• Scope• Retailers• Suppliers • Hangers-on

Mktg. 475 Objectives

• IRI Analyzer software tool basic navigation, report writing and analysis

• Basics of branding and retail packaged goods marketing

• Category management and variety/duplication concepts

• Overview of the retailing industry and retail financial basics

• Compelling presentations of data using PowerPoint

IRI Analyzer

• Software used throughout the course• Basis for learning analytical skills• Widely used in retailing and packaged

goods industry

Grading

Final Project

• Project Outline: (Due Week 5), includes targeted data sources and references you will use for industry information.

Integrate the course material to help solve a real business issue

• Demonstrate understanding of key concepts

Case Analyses

Case Analyses

• Data to support conclusions must be used in the body of the paper and must be shown in attachments (from Analyzer reports)

Attendance/Participation

• Mktg 475 is a discussion class; everyone is expected to contribute

• Miss 3 or more classes and receive 0 credit for attendance

• Level of thought, regular participation and listening skills will be basis for grade in participation

IRI Exercises

• Lab session

IRI Analyzer Basics

• What it is• Dimensions• Starting• Navigation

Dimensions

Geography Measures

Time Products

Marketing 475Retailing Management

Week 2: 2002

• IRI exercises Mod 1-5; 6-9 • Retailing basics Ch. 2 • Retailing strategy Ch. 6

IRI Exercises

• Mods• Practice Case 1

Retailing Basics

• Functions of retail: break bulk, hold inventory, provide services, add value

• 20% of US industrial employment • Some of the largest firms worldwide are

retailers– Kroger– Wal-Mart– Carrefour– Home Depot

• Career opportunities

Food Retailing

• C-Stores: <4 tsf• Conventional supermarket: <20 tsf• Superstores; combination stores: 20 -

100 tsf• Warehouse/box stores• Natural foods• Specialty

Creating and Implementing Retail

Strategy• Target the market• Identify the format• Develop long-term sustainable competitive

advantage– Customer loyalty– Competitive position

• Provide appropriate merchandise and services

The Retail Mix

LocationStore design

Assortments Pricing, advertising and promotion

Selling and service

Start of Week 3

Assortments

• Variety (breadth) vs. duplication• Breadth vs. depth

Category Management

• A “roadmap” to better marketing planning and execution

• Recognizes and involves all parties in the supply chain

Category Management: an Outgrowth of ECR

• Efficient Consumer Response: grocery industry initiative

• goal is to drive out inefficiencies• ... in grocery channel

Efficient Consumer Response

Supplier DistributorRetailStore

ConsumerHousehold

Timely, accurate paperless information flow

Smooth, continual product flow matched to consumption

ECR: 10% of the Retail Dollar Represents Supply Chain

“Waste”Strategy Objectives Key Capability Opportunity

($bil)

Efficient StoreAssortments

optimize space CategoryManagement

4.2

EfficientReplenishment

minimize timeand inventory

ContinuousReplenishment/forecasting

11.4

EfficientPromotion

maximize systemefficiency oftrade promo

CategoryManagement

11.9

EfficientProductIntroductions

Efficient newproduct activities

CategoryManagement/product devel.

2.5

Category Management Defined:

“A collaborative process of managingcategories as strategic business units...byfocusing on consumer value.”

» ECR Best Practices Committee on Category Management 1994

Category Management Major Elements

InformationTechnology

Scorecard

OrganizationCapabilities

CollaborativeRelationships

Strategy &

Business Process

S tep 4C ateg ory S corecard

S tep 3C ateg ory A ssessm en t

S tep 2C ateg ory R o le

S tep 1C ateg ory D efin it ion

S tep 8R eview R esu ltsS h are G row thP ro fit G row th

S tep 7Im p lem en t P lan

S tep 6C ateg ory Tac tics

S tep 5C ateg ory S tra teg ies