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The World of Retailing

Introduction to Retailing

Types of Retailers

Multi-Channel Retailing

Customer Buying Behavior

PPT 2-1

Types of Retailers
• Retailers Use Different Retail Mixes -merchandise: variety (breadth) / assortment (depth) -services -store design, visual merchandising -location -pricing

• Infinite Variations
• Survival of the Fitness – Some combination ofretail mixes satisfy the needs of significant segments and persist over time.
PPT 2-2

Merchandise Offering
• Variety (breadth of merchandise) - The number of merchandise categories

Assortment (depth of merchandise) -the number of items in a category (SKUs)

PPT 2-3

Types of Retailers
General Merchandise Retailers
Department Stores Specialty Stores Discount Stores Category SpecialistsOff-Price Retailers Warehouse Clubs

Food Retailers
Mom and Pop Stores Convenience Stores Supermarkets Supercenters

PPT 2-4

Food Retailers
Mom and Pops – Supermarkets
-Cars, highways and TV to build brands
-Knowledgeable customers – self service -Perishable vs. packaged goods

Big Box Retailers
-Warehouse Clubs -Supercenters -Hypermarkets - Hard Discounts stores.

ConvenienceStores
PPT 2-5

Types of Food Retailers

PPT 2-6

Issues in Food Retailing
Competition from Discount Stores
Efficient Distribution

Lower Costs

Lower Prices

Changing Consumption Patterns
Time Pressure Eating Out More Meal Solutions

PPT 2-7

Types of General Merchandise Retailers


• Specialty Stores
• Category Specialists • Home Improvement Centers • Department Stores •Drugstores • Off-Price retailers • Value Retailers
PPT 2-8

Characteristics of General Merchandise Retailers

PPT 2-9

Issues in Discount Store Retailing
• Only Big Three Left – Wal-Mart, Kmart, Target • Wal-Mart’s Dominance • Differentiate Strategy -Wal-Mart = Low Price and Good value -Target = More Fashionable Apparel • Competition from Category Specialists -Toys-R-Us, Circuit City,Sports Authority
PPT 2-10

Y MAMA LUCHA ¿?

Issues in Specialty Store Retailing
Mall-Based Apparel Retailers: Decline in Mall Shopping and Apparel Sales -Lack of New Fashions

-Less Interest in Fashion
-Increase Price Consciousness Lifestyle Formats – Banana Republic and Hot Topics

PPT 2-11

Category Specialists ( KILLER´S)
Deep and Narrow Assortments – Destination Stores Low Priceand Service Wholesaling to Business Customers and Retailing to Consumers Incredible Growth Increased Competition with National Expansion and Consolidation

PPT 2-12

Issues in Department Store Retailing
• Competition
-Discount Stores on Price

-Specialty Stores on Service, Depth of Assortment

• Lower Cost by Reducing Services (?)
-Centralized Cash Wraps

• More Sales (?)-Customers Wait for Sale

• Focus on Apparel and Soft Home • Develop Private Labels and Exclusive Brands • MEXICO ENFOCADAS A SEGMENTOS MUY DIFERENTES.
PPT 2-13

Issues in Drug Store Retailing
Consolidation – Walgreens, CVS, Rite-Aid, Eckerds Competition from Supermarkets and Discount Stores – Pharmaceuticals

Evolution to a New Format
-Stand Alone Sites with Drive Thru Windows -Convenient StoreFront End

PPT 2-14

Issues in Off-Price Retailing
• Opportunistic Buying
• Hurt By Sales in Department Stores • Buying First Line Merchandise

PPT 2-15

Issues in Value Retailing
Target Lower Income Families

Low Cost
-Low Cost Location -Limited Services

Low Prices

One of the Fastest Growing Retail Segments

PPT 2-16

Summary

Many New Types retailers, Increased ManyNew Types ofof retailers, Increased Diversity to Meet Diverse Needs Diversity to Meet Diverse Needs

Most People Shop at All Types Depending on Situations – Growth in Cross-Shopping

PPT 2-17

Non-store Retail Formats
Electronic Retailing Catalog and Direct Mail Direct Selling Television Home Shopping Vending Machines
PPT 2-18

Types of Nonstore Retailers

PPT 2-19

Sales by...
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