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Chapter 5. Describe –Wheel of Retailing –Scrambled Merchandising –Retail Life Cycle Discuss Retail Strategy Evolution Examine Store-Based Retail Strategies.

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Presentation on theme: "Chapter 5. Describe –Wheel of Retailing –Scrambled Merchandising –Retail Life Cycle Discuss Retail Strategy Evolution Examine Store-Based Retail Strategies."— Presentation transcript:

1 Chapter 5

2 Describe –Wheel of Retailing –Scrambled Merchandising –Retail Life Cycle Discuss Retail Strategy Evolution Examine Store-Based Retail Strategies –Food-Oriented –General Merchandise

3 Location Operating Procedures Goods/Services Offered Pricing Tactics Atmospherics Customer Services Promotional Methods

4 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

5 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

6 Low-Ended StrategyHigh-Ended Strategy No Services or Services Charged at 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 DisplaysElaborate Fixtures and Displays Simple Retail Personnel OrganizationElaborate Retail Personnel Organization Price Emphasis in PromotionNo Price Emphasis in Promotion Self-Service or High Sales per Store Personnel Ratio Product Demonstrations, Low Sales Per Store Personnel Ratio Crowded Store InteriorSpacious Store Interior Most Merchandise VisibleMost Merchandise in Backroom Low Rental location -- Side StreetHigh Rental Shopping Center or Central Business District Location

7 Original Merchandise Mix Shoes Shoe Polish Sandals Slippers

8 Scrambled Merchandise Mix Shoes Shoe Polish Sandals Slippers Handbags Gloves Belts Socks

9 Innovation Maturity Decline Accelerated Development

10 Maturity InnovationDecline Accelerated Development Number of Competitors Very Few Very Few Moderate Many Direct Moderate Direct Moderate Indirect Many Indirect

11 L Maturity InnovationDecline Accelerated Development 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

12 L Maturity InnovationDecline Accelerated Development 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

13 L Maturity InnovationDecline Accelerated Development Central Management Concerns Very Few Concept Refinement Establishing a Excess Capacity & Engaging in a Through Adjustment Preemptive Overstoring; Prolonging Run-Out & Experimenting Market Position Maturity & Revising the Strategy Business Concept

14 Maturity InnovationDecline Accelerated Development Use of Management Control Techniques Very Few Minimal Moderate Extensive Moderate

15 Maturity InnovationDecline Accelerated Development Most Successful Management Style Very Few Entrepreneurial Centralized Professional Caretaker

16 Mergers Diversification Downsizing Cost Containment Value-Driven Retailing

17 Convenience Store Conventional Supermarket Food-Based Superstore Combination Store –Supercenter –Hypermart Box (Limited-Line) Store Warehouse Store

18

19 Specialty –Category Killer Traditional Department Store Full-Line Discount Store Variety Store Off-Price Chain Factory Outlet Membership Club Flea Market

20 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

21 Questions?


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