chap001 retailing

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PPT 1-2 Consumer Behavior Ignacio J. Vázquez E. © 2007 McG

raw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Introduction to theIntroduction to theWorld of RetailingWorld of Retailing

Chapter 1Chapter 1



PPT 1-3 Consumer Behavior Ignacio J. Vázquez E. © 2007

Retailing ± a set of business activities thatadds value to the products and services sold to

consumers for their personal or family use.

A retailer is a business that sells products

and/or services to consumers for personal or family use.

What is Retailing?




Examples of Retailers

Retailers:

-Sears, Holiday Inn, McDonalds, Amazon.com, JiffyLube, AMC Theaters, American Eagle Outfitter, F AOSchwartz, Kroger

Firms that are retailers and wholesalers that

sell to other business as well as consumers:-Office Depot, The Home Depot, United Airlines, Bankof America, Sams Clubs




How Retailers Add Value

Breaking Bulk

-Buy it in quantities customers want

Holding Inventory-Buy it at a convenient place when you want it

Providing Assortment

-Buy other products at the same time

Offering Services

-See it before you buy, get credit, layaway




Manufacturer¶s Perspective

The Four P¶s of Marketing

Distribution

Retailers are part of the

distribution channel

Retailers are part of the

distribution channel

Product

Price

Promotion




Distribution Channel

D istribu tion C hanne lPPT 1-4




Accounting Finance

MISOperations

Marketing

Human Resources

Retailers are a Business Like Manufacturers




Decision Variables for Retailers

Customer Service

Store Designand Display

MerchandiseAssortment

CommunicationMix

LocationPricing

Retail

Strategy




Economic Significance of Retailing

Over $2.5 trillion in annual U.S. sales

-greater than medical care, housing, recreation combine

Employs 17% of population

-about the same as manufacturing and growing

Management training opportunities

Entrepreneurial opportunities




Nature of Retail Industry is Changing

Mom and Pop Store

To Today¶s Retailer




Globalization of Retailing

Source Merchandise From Around the World

Wal-Mart Operates in U.S., China, Mexico, UK, Germany

Carrefour has Stores in 25 Countries




Retail Environment Differs Across the Globe

US JapanConcentration High Medium

Store Size Big Small

Role of Low High

Wholesaling

Efficiency High Low




JC Penney¶s Strategic Evolution

Main Street private label soft goods retailer

Changes in environment -- increased disposableincome, growth of suburbs, interstate highway

program

Emulate Sears in enclosed suburban malls

Focus on soft goods -- drop automotive, sporting

goods, hardware

Develop catalog, develop electronic retailing

Future (?)




Sears¶ Strategic Evolution

Large number of merchandise categories --

appliances, hardware, apparel

Malls evolved into places for buying soft goods,hard goods sold at category killers

The Softer Side of Sears

Refocused on value -- Testing carts in stores Acquired Lands¶ End

Reviewed training program for new managers




Whole Foods Implementation

Strategy - organic and naturalfoods supermarket chain

Assortment beyond

organic/natural foods

Private labels - WholeFood, 360 Day Value

Love, trust, and employeeempowerment

Equality in compensation




Hot Topic¶s Retail Mix

Enclosed malls

Customer Service

Merchandise Assortment

PricingCommunicationMix

Store Display And Design

Location Strategy





Location

PricingCommunication

Mix


Customer

Service

Many DifferentHot Band

T-shirts and

Accessories

Assortment Strategy





Location

CommunicationMix


Customer Service


Modest with Sales

Pricing Strategy





Communication Mix

TV andMagazine Ads

Store Design And Display

Customer Service Location


Pricing





Store Design and Display

Heavy Metal,

Gothic Look


Merchandise

Assortments


Mix





Customer Service

Modest

Location


Pricing

CommunicationMix





Macy¶s Retail Mix

Retail Strategy

Customer Service

Location



Store DesignAnd Display




Macy¶s Retail Mix

Enclosed Malls

Customer Service




Location Strategy




Macy¶s Retail Mix

Location


Mix


Customer

Service

Many Items inApparel and

Soft Home

Assortment Strategy




Macy¶s Retail Mix

Communication Mix

TV, Newspaper Adsand Special Events

Store Design And Display Merchandise

Assortment

Pricing





Macy¶s Retail Mix


Ring with Displays


Merchandise

Assortments


Mix




Macy¶s Retail Mix

Customer Service

Modest

Location


Pricing

CommunicationMix





Wal-Mart¶s Retail Mix

Retail Strategy

Customer Service

Location



Store DesignAnd Display





Free-standing Stores

Customer Service



Mix


Location Strategy





Location


Mix


Customer

Service

Large Number of Categories

Few Items

in Each Category

Assortment Strategy





Communication Mix

TV and Newspaper Insert Ads

Location

Pricing


Customer Service







Basic, SpecialDisplays

for Products


Merchandise A

ssortments


Mix





Customer Service

Limited

Location


Pricing

CommunicationMix


C O t iti i R t ili




Career Opportunities in RetailingStart Your Own Business

Walton Family (Wal-Mart)

Fisher (The Gap)

Wexner (Limited)

Menard (Menard¶s)

Marcus, Blank (The Home Depot)

Kellogg (Kohl¶s)

Schulze (Best Buy)

Levine (Family Dollar)

Gold (99Cent Only)

List of Retail Entrepreneurs onForbes 400 Richest Americans




Misconceptions About Careers in Retailing

Don¶t need college

Low pay

Long hours

Boring

Dead-end job

No benefits

Everyone is part-time Unstable environment




Why You Should Consider Retailing

Entry level management positions

-Department manager or assistant buyer/planner

-Manage and have P&L responsibility on your first job Starting pay average with great benefits

- Some retailers pay graduate school

No two days are alike

Buying for financially oriented people

Management for people people




Types of Jobs in Retailing

Most entry level jobs are instore management or buying, but«

retailers also have staff specialists:--accounting and finance

--real estate

--human resource management--supply chain management

--advertising

--public affairs



PPT 1 44 Consumer Behavior Ignacio J Vázquez E © 2007

Centro de Comercio Detallsita

www.gda.itesm.mx/ccd ADMINISTRACIÓN DE MERCANCÍAS / PRECIOS: Aprenderás el manejo de compras,

resurtidos e inventarios que realizan las empresas de comercio al detalle.Analizarás la tecnología que está revolucionando el retail y estudiarás laadministración y el establecimiento de precios, así como el desarrollo ypresentación de líneas de producto, dando especial atención a las relacionescomprador-proveedor.

INTER

NSHIP I Y II: Aplicarás tus conocimientos dentro de una empresa detallista.en el verano trabajarás 7hrs. diarias por 5 semanas en una empresa de comercio aldetalle, en donde conocerás las diferentes áreas de la empresa y tendrás laoportunidad de resolver algún problema o realizar un proyecto específico.

ADMINISTRACIÓN DE LA TIENDA Y SERVICIO AL CLIENTE: Analizarás losprocesos en el manejo y administración de una tienda. Aprenderás temasrelacionados con sistemas de información, recursos humanos, imagen y diseño dela tienda (visual merchandising ), servicio al cliente y CRM (Customer Relationship

Management ), entre otros. ESTRATEGIA DE COMERCIO DETALLISTA MULTICANAL: Conocerás las

estrategias que siguen los principales detallistas y su implicación en las ventas.Comprenderás la metodología para la ubicación de puntos de venta. Aplicarás lasestrategias de publicidad y promoción que se utilizan en el comercio detallista.Además, aprenderás la nueva tendencia en el retail de administración por categorías.

chap001 retailing

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