Marketing 13 Retailing

RETAILING -- 13 Types Classification Non-store retailing Franchising Retail Strategy Global considerations 13.1

RETAILING DEFINITION (p. 436) To ultimate consumer Classification based on: Ownership Independent; Chain; Franchise Level of Service Full/High  None Product Assortment Specialty vs. Full Line Price Retail  Discount & Off-Price 13.2

Major Types of Retail Operations Department Stores Organization National Chain Federated, Mays, Nordstrom Declining Growth & Changing merchandise 13.3

Major Types of Retail Operations Specialty stores Size Convenience & Selection Growth 13.4

Major Types of Retail Operations Supermarkets Spending 60% of food $ One stop shopping Loyalty programs Diversify Scrambled (Wide Variety of Products) Gas Ethnic 13.5

Major Types of Retail Operations Drugstores OTC & + Convenience store products Convenience stores Neighborhood Convenience items Restaurants Chain Ethnic Specialty 13.6

Major Types of Retail Operations Discount stores Full line discounters Ltd service; assortment “hard goods” (housewares, toys, auto, hardware, sports, garden, clothing, bedding…) Wal-Mart Super centers Grocery + general merchandise + Services (Rx, dry cleaning, portrait, photo, hair, optical, restaurant…) Wal-Mart Super Center Specialty Discount Stores Nearly complete, single line (sports, electronic, auto, office suppliers). Category killers Warehouse/membership clubs Costco, BJ’s, Sam’s Off price retailers TJ Maxx, Ross, Marshall’s, Tuesday Morning 13.7

Non-store Retailing Automatic Vending Direct Retailing Soft drinks & Snack foods = 85% of $40 Billion/yr. Direct Retailing Avon, Mary Kay, Cutco Direct Marketing direct mail, catalogs Electronic Retailing QVC, online BA Vending Machines 13.8

FRANCHISING Important part of retailing Product and trade name Business format Cost Risk/Reward 13.9

Retail Marketing Strategy Targeting, & Positioning Marketing Research & Analysis Product Environmental Scanning & Analysis Customers Price Service, Operations & Channel Partnerships Location Integrated Marketing Communication 13.10

Six P’s of Retailing Product Place Promotion Price Presentation Personnel

RETAIL MIX Product Offering Product assortment or Merchandise Mix Width and depth Efficient Consumer Response Need to manage inventory Electronic Data Interchange Cut price on slow movers Private Brands Kenmore, Craftsman, Die Hard 13.11

RETAIL MIX Location Free Standing: Destination Stores Shopping Center Neighborhood: AKA Strip Centers Community: One or two anchors Regional Malls: ‘nuff said. Lifestyle Centers: Open air, Yuppified 13.12

RETAIL MIX Pricing Key in positioning Everyday low pricing 13.13

RETAIL MIX Presentation – Atmosphere Employees Merchandise Fixtures Sound Odors Visuals 13.14

New Developments in Retailing Interactivity Increase customer involvement Entertainment Guests Fishing at LL Bean, climbing at REI M-commerce Cell phones, PDA Buy a Coke by phone

EXERCISE Select a discount retailer and a specialty retailer. For each describe their retail mix. Refer to the previous five slides. 13.15