Omni-Channel and Logistics Test

The effect of stock outs is

Customers will not return because items are not in inventory

Assortment

Depth of merchandise: (deep vs. shallow) -Looks at the number of items in a category (SKUs)

How does the ADA affect store design?

Disabled individuals need reasonable access to merchandise and services built before 1993.

National Retail Federation

the world's largest retail trade association that shows retail's impact by state

Largest Logistics Employers (recognizable)

American Airlines, Fedex Ground, Charlotte Douglas Airport

Challenges of Omnichannel Retailing

-Supply Chain and Information Systems integration is difficult -Integrated Shopping Experience with legacy systems for seamless customer interface can be a challenge (for instance pricing must be the same across all channels regardless of age of system)

Why is break even important?

Helps businesses determine cost structure, number of units needed to cover cost or generate a profit

Top Distribution Centers

Amazon, Target Corp., USPS

Why Integrated Marketing Communications

- multiple media - multiple messages - multiple audiences - multiple goals/objectives reaching all consumers with similar message

Everyday Low Pricing (EDLP) (Walmart) Pros/Cons

-Assures customers low prices -Reduces advertising and operating expense -Better supply chain management/fewer stockouts/inventory needs to be more stable

Why is Pricing Important?

-Customers have alternatives to choose from and are more informed than ever before -Customers are in a position to seek good value -Value=Perceived Benefits/Price **Retailers can increase value and stimulate sales by increasing benefits or reducing price

Returns

-Function well in most establishments online and in store contrary to popular belief

High Low Pricing (Bi-Lo) Pros/Cons

-High Profits -More Excitement -Builds short term sales -Inventory Turnovers are volatile

Importance of Mobile Channel

-Portable, on the go -Location Sensitive -Notifications

Color in the Store Should

-Produce emotion (Warm colors produce vibrant active responses, Cool Colors relax the customer) **Companies should understand culturally certain groups react differently (French Canadians respond to warm colors while Anglo Canadians respond to cool)

Controllable Factors Affecting Sales Projections

-promotions -store locations -merchandise placement -cannibalization

Uncontrollable Factors Affecting Sales Projections

-seasonality -weather -competitive activity -product availability -economic conditions

How will Blockchain change Marketing Mix?

1) Brands will be able to better target customers 2) Malicious ads will grow 3) Privacy Concerns will be resolved and advertiser trust will increase 4) Decentralization will remove the middleman

What are the four highways near Charlotte Douglas?

40, 77, 85, 485

Charlotte Douglas Airport is the (blank) busiest airport in the world

6th

What is Omni-Channel?

A multichannel sales approach that provides the customer with an integrated shopping experience; the customer can be shopping online from a desktop or mobile device, or by telephone, or in a bricks and mortar store and the experience would be seamless.

What is Retailing?

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

Advantages to Business in Charlotte

Access, Talent, Affordability, Quality of Life

Google Micromoments

Be there when the customer turns to their phone to make a decision or shape a preference

Variety

Breadth of Merchandise (wide vs narrow) -Looks at the number of merchandise categories

53% of the US population is within 2 hours by plane or 12 hours by truck of what location

Charlotte Douglas Airport

Staple Merchandise Categories

Continuous demand over an extended time period Limited number of new product introductions Hosiery, basic casual apparel Easy to forecast demand Continuous replenishment

Music should

Control the pace of traffic in the store, create an image, attract customer's attention

Sales Promotions Advantages

Coupons- stimulate demand, allow for tracing sales Rebates-stimulate demand, increase value perception Premiums- Build goodwill, increase value perception Samples- encourage trial, offer direct involvement POP Displays- Provide high visibility, encourage brand trial Special Events-General Excitement and Traffic Pop Up Stores- Generate customer interest and open new market segments

Why do retailers use multiple channels to interact with customers?

Customers want what they want, when they want it and want new ways to engage with the retailer

Unique Benefits of Internet Shopping

Deeper and broader selection, more tools for evaluating merchandise, personalization, virtual communities

National (Manufacturer) Brands

Designed, produced, and marketed by a vendor and sold by many retailers (i.e. Nike)

Private Label Brands

Developed by a retailer and only sold in the retailer's outlets (i.e. Victoria's Secret)

Direct Marketing

Essential because Emails or Direct Mail can be tailored directly to the consumer and is growing because of analytics

During Sales Forecasts its important to

Focus on the present and future sales

Lighting in the Store Should

Highlight merchandise, capture mood, be energy efficient

Primary Objective of Store Design is

Implement retailer's overall strategy Also -Meet needs of target market -Build a competitive advantage Displays the store's image Can save money

Fashion Merchandise Categories

In demand for a relatively short period of time Continuous introductions of new products, making existing products obsolete Athletic shoes, laptop computers, women's apparel

How Blockchain is changing logistics?

Information is stored across a system of computers so there is no middleman. It is decentralized to prevent corruptions and is an ever growing list of transactions that are verified, and linked together chronologically...essentially this enables faster and safer communication

Logistics

Involves the planning, carrying out and management of goods, services, and information from the point of origin to the point of consumption. The timelier the job, the higher the productivity and savings

Opportunities in Retailing

Management opportunities Entrepreneurial opportunities

Public Relations

Managing communications and relationships to achieve various purposes, maintaining a positive image in good and bad times (Cowfish good example)

Distribution Channel Process

Manufacturing to Wholesalers to Retailers to Consumers

The Consumer Buying Process

Need recognition, information search, alternative evaluation, purchase, post purchase

General Trends in Retailing

New types of retailers Globalization Growth in services retailing Growth in omnishopping by traditional retailers Increase use of technology to reduce cost; Increase value delivered

NAICS Codes

North American Industrial Classification System codes that use numerical values to identify statistical data related to the US Economy based on industry

Issues Around Site Location

Parking, Ingress/Egress, Traffic Patterns and flows, Visibility

Roads/Railways from Charlotte lead to which Ports?

Port of Charleston, Port of Wilmington, The Norfolk Southern Crescent Rail Corridor connects to New York and New Orleans

How Can Store Design Build Loyalty?

Provides benefits by enabling customers to locate and purchase products quickly, and potentially in an enjoyable fashion (Dicks Sporting Goods)

Markdowns

Reduction in price for clearance items or promotional items

How Price Can Influence Consumer

Retailers can increase value and stimulate sales by increasing benefits or reducing price

Key to Logistics

Right People, Right Place, Right Time

Why is the Panama Canal important to Charlotte?

Saves time and money for goods to reach Charlotte=lower prices

Social Factors in Buying Process

Social Class Influence, Reference Groups, Family, Culture

Alamo Drafthouse

Specialty movie service that immerses users in the experience (serves food that matches movie, provides unique viewing experience, strict no talking or texting policy)

Scents have a

Strong emotional impact on consumers in store

Price Sensitivity, Competition, Cost, and Legal Constraints all affect

The Retail Price

Reverse Logistics

The area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.

Space Management

The space within stores and on the stores' shelves are fixtures is a scare resource The allocation of store space to merchandise categories and brands The location of departments or merchandise categories in the store

Unique Benefits of Brick and Mortar Stores

Touching and feeling, personal service, cash payment, social interaction, immediate gratification

(T/F) Fast fashion puts pressure on the supply chain

True

(T/F) If Customers are frustrated by Store Design they are less likely to purchase more

True

(T/F) More than 8% of the US GDP comes from retailing

True

(T/F) Retail supports more than 1/4 of all US Jobs

True

(T/F) 82% of smart phone shoppers use their device to help them shop while they are in the store and 92% of retail sales happen in stores

True, this shows the growing importance of mobile devices

Developing a Sales Forecast

Understanding the nature of the product life cycle Collecting data on sales of product and comparable products Using statistical techniques to project sales Work with vendors to coordinate manufacturing and merchandise delivery with forecasted demand (CPFR) Science and Art are needed to forecast correctly

The leader in effective supply chains

Wal-Mart

Largest Retailers Include

Wal-Mart, Kroger, Best Buy, Apple Itunes, 7/11, Family Dollar

Online Marketing is broken down into

Websites, Blogs, Mobile Communication, and Social Media

Cross Shopping

When a customer purchases a wide variety of products in an array of brands from any number of providers, such as a flea market, Walmart, or a designer boutique like Chanel

Whole Foods

Works in teams and uses its employees in the hiring process to create a company culture

Retailer

a business that sells products and services to consumers for their personal or family use

Principle of Cumulative Attraction

a cluster of similar and complementary retailing activities will have greater drawing power

Sales cannibalization

a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer

Showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item (shows how omni channel works together)