BA 370 CH 17 SDSU

retailing

the set of business activities that add value to products and services sold to consumers for their personal or family use

four factors to establish retailing strategy

1) choose retail partners

2) identify types of partners

3) develop a retail strategy

4) manage an omnichannel strategy

omnichannel strategy

involves selling in more than one channel

Intensive Distribution

designed to place products in as many outlets as possible

Exclusive Distribution

grant exclusive geographic territories to one or very few retail customers so that no other retailers in the territory can sell a particular brand

Selective Distribution

relies on a few selected retail customers in a territory to sell products

conventional supermarket

large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items such as health and beauty aids and general merchandise

limited assortment supermarket

stock only about 1,500 SKUs

- aka extreme value food retailers

supercenters

are large stores that combine a supermarket with a full-line discount store

warehouse clubs

large retailers that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses

convenience stores

provide a limited variety and assortment of merchandise at a convenient location in 3,000- to 5,000-square-foot stores with speedy checkout

department stores

retailers that carry a broad variety and deep assortment of merchandise, offer customer services, and organize their stores into distinct departments for displaying merchandise

full line discount stores

retailers that offer a broad variety of merchandise, limited service, and low prices

specialty stores

concentrate on a limited number of complementary merchandise categories targeted toward very specific market segments by offering deep but narrow assortments and sales associate expertise

drugstores

specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise

category killers

offer a narrow but deep assortment of merchandise

- Most category specialists use a predominantly self-service approach, but they offer assistance to customers in some areas of the stores

off price retailers

offer an inconsistent assortment of brand-name merchandise at a significant discount from the manufacturer's suggested retail price

service retailers

firms that primarily sell services rather than merchandise

private label brands

products developed and marketed by a retailer and available only from that retailer

cooperative advertising

an agreement to pay all or a portion of the advertising's production and media costs

share of wallet

the percentage of the customer's purchases made from a particular retailer