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