BUSI 406 PRINCIPLES OF MARKETING: RETAILERS, WHOLESALERS, AND THEIR STRATEGY PLANNINGMarketing Strategy Planning for Retailers and WholesalersToday’s GoalsWhat is a Retailer?Planning a Retailing StrategySlide 6Retail Began with General Stores…Types of RetailersRetail Today: Department Stores & Specialty ShopsRetail Today: Mass-MerchandisersRetail Today: Convenience Outlets (Stores, Vending Machines, QVC, Catalogs)Retail: Looking to the FutureWhat Is A Wholesaler?Today’s Take-AwaysPowerPoint PresentationBUSI 406PRINCIPLES OF MARKETING:RETAILERS, WHOLESALERS, AND THEIRSTRATEGY PLANNINGMarketing Strategy Planning for Retailers and WholesalersCH 12: Retailers, Wholesalers & Their Strategy Planning Strategy planning for retailersCH 10: Place and Development of Channel SystemsNature of retailingFuture of retailing and wholesalingCH 11: Distribution Customer Service & LogisticsStrategy planning for wholesalersToday’s GoalsWholesaling and Retailing strategiesTypes of retailersTypes of wholesalersLots of change and competition - what will happen in the future?What is a Retailer?All of the activities involved in the sale of products to final consumersConsumers spend trillions of dollars a year buying goods and services from US retailersStrategy begins with segmentation and positioning to select a target market(s)Must select marketing mix carefullyPlanning a Retailing StrategyConvenienceConvenienceProduct SelectionProduct SelectionFairness in DealingsFairness in DealingsHelpful InformationHelpful InformationPricesPricesSocial ImageSocial ImageConvenienceConvenienceProduct SelectionProduct SelectionFairness in DealingsFairness in DealingsHelpful InformationHelpful InformationPricesPricesSocial ImageSocial ImageKey Features Affecting Consumers’ Retail ChoiceShopping AtmosphereShopping AtmospherePlanning a Retailing StrategyTargetMarket•Advertising•Publicity•Salespeople (number and training) •Helpful information (demonstrations, displays, online videos, reviews)•Advertising•Publicity•Salespeople (number and training) •Helpful information (demonstrations, displays, online videos, reviews)•Credit cards – whether to offer a store card•Discount policies•Frequency and level of sale prices•Charge (or not) for delivery or other services•Credit cards – whether to offer a store card•Discount policies•Frequency and level of sale prices•Charge (or not) for delivery or other services•Physical stores and/or sales over the internet•Number and location of stores•Shopping atmosphere (comfort, safety)•Store size, layout and design•Store hours•Physical stores and/or sales over the internet•Number and location of stores•Shopping atmosphere (comfort, safety)•Store size, layout and design•Store hours•Product selection (width and depth of assortment, brands, quality)•After-sale service•Special services (special orders, entertainment, gift wrap)•Product selection (width and depth of assortment, brands, quality)•After-sale service•Special services (special orders, entertainment, gift wrap)Retail Began with General Stores…Types of RetailersSupermarkets,disc. houses,mass merch., super-, club-storesSupermarkets,disc. houses,mass merch., super-, club-storesSafeway, IKEA, Home Depot, CostcoC-stores, vending, door-to-door, phone,mail, some e-tailC-stores, vending, door-to-door, phone,mail, some e-tail7-11, Pepsi vending,Avon, Lands’ End, QVCInternetInterneteBay, Amazon, Zappos, Netflix, DellConventionalOfferingsConventionalOfferingsSingle- &limited-line storesSingle- &limited-line storesSpecialtyshops &dept. storesSpecialtyshops &dept. storesRitz Camera, Coach, Gap, Macy’sExpandedassortment& serviceExpandedassortment&/or reducedmargins & serviceAdded conv., higher margins,reduced assortmentExpandedassortment,reducedmargins, moreinformationRetail Today:Department Stores & Specialty ShopsRetail Today: Mass-MerchandisersMass-merchandising concept: retailers should offer low prices to get faster turnover and greater sales volume.Different strategy than conventional retailers who try to “buy low and sell high”SupermarketsMass-merchandisersLarge self-service stores with many departments that emphasize “soft goods” and staples, with low prices and lower margins to get faster turnoverSupercenter/hypermarketsCarry all goods and services that the consumer purchases routinelyCategory KillerCarry large assortments of a specific product category$444+B$67+Bwww.businessinsider.com/crazy-facts-about-walmart-2012-11www.bestbuy.comRetail Today: Convenience Outlets (Stores, Vending Machines, QVC, Catalogs)Retail: Looking to the FutureInternetInformation, Convenience, Integration with Brick & MortarEconomies of ScaleCorporate Chain (Ex. Best Buy)Cooperative Chain (Ex. True Value Company)Voluntary Chain (Ex. SuperValu)Franchise Operations (ex. Subway) www.entrepreneur.com/franchise500 Global GrowthNew retail ideas spread, new markets, adaptation of marketing strategies, online retailWhat Is A Wholesaler?WholesalingActivities of persons or establishments (wholesalers) that sell to retailers, other merchants, business users or institutional users, but do not sell in large amounts to final consumersWholesaling is changing with the timesTechnologies and the Internet are making it easier for producers and consumer to connect without using a wholesaler – “disintermediation”Not all wholesalers are progressive; need to adapt or will go out of businesswww.merchantsdistributors.com www.usfoods.com www.sysco.comToday’s Take-AwaysRetailing and wholesaling are both evolving and changing.Retailing includes all of the activities involved in the sale of products to final consumers.Wholesaling includes all activities of persons or establishments (wholesalers) that sell to retailers, other merchants, business users or institutional users, but do not sell in large amounts to final consumers.Competition is increasing - technologies and the Internet are making it easier for producers and customers to connect without using a wholesaler.Monday, October 27: Guest SpeakerDave AlpernSr. VP of MarketingJoe Gibbs