Retailing and OmniChannel

Drug Stores

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

Share of Wallet

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

Department stores

larger stores that are organized into many separate departments and offer many product lines

category specialists/ big box retailers/ category killers

offer a narrow but deep assortment of merchandise. (IKEA, Home Depot)

Off-price retailers

offer an inconsistent assortment of brand name merchandise at low prices

Channel Structure

-degree of vertical integration -manufacturers brand -power of manufacturer and retailer

Extreme Value Retailers

A general merchandise discount store found in lower-income urban or rural areas. (Dollar store)

Speciality Stores

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

Customer Expectations

Retailers should also know customer preferences regarding manufacturers. Manufacturers, in contrast, need to know where their target market customers expect to find their products and those of their competitors.

Factors for Establishing a Relationship with Retailers

Choosing retailing partners, identifying types of retailers, developing a retail strategy, and managing a multichannel strategy.

Merchandise Retailers

Department Stores Specialty Stores Discount Stores Category Specialists Off-Price Retailers Warehouse Clubs Value Retailers

Intensive Distribution

Designed to place products in as many outlets as possible.

Integrated CRM

Effective omnichannel operations require an integrated CRM (customer relationship management) system with a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer, regardless of whether the sale occurred in a store, on the Internet, or on the telephone

Type of Retailers

Food, General merchandise, service

Full-Line Discount Stores

Retailers that offer low prices, limited service, and a broad variety of merchandise. (Walmart, Target)

Limited Assortment Supermarkets/ Extreme Value

Retailers that offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower costs and prices. 1500 SKU

Exclusive Distribution

Giving a limited number of dealers the exclusive right to distribute the company's products in their territories (luxury brands)

Supermarket

Large self-service grocery store selling groceries and dairy products and household goods. 30,000 SKU

Supercenters

Large stores combining full-line discount stores with supermarkets in one place. 185K SKU

Warehouse clubs

Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing. 100 to 150k SKU

Convenience Stores

Limited variety and assortment of merchandise at a convenient location with speedy checkout. 3000-5SKU

Choosing Retail Partners

Most manufacturers create relationship with retailers that create value by pulling together all the actions necessary

Selective Distribution

Relies on a few selected retail customers in a territory to sell products.

Channel Member Characteristics

The larger and more sophisticated the channel member, the less likely that it will use supply chain intermediaries

Distribution Intensity

The number of supply chain members to use at each level of the supply chain

Retailing

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