Marketing 475Retailing Management
Week I: 2002• Introductions• Ground rules• IRI exercises• Retail overview• Handout case 1
Introductions/Announcements
• Roll/registration: any problems?• Food Industry Certificate at PSU• Scholarships
Index Cards
• Name• Phone # for messages
•email address• Employer (if applicable)• Major; grad year• What is your goal upon graduating?
(specific)
Retailing!
• Scope• Retailers• Suppliers • Hangers-on
Mktg. 475 Objectives
• IRI Analyzer software tool basic navigation, report writing and analysis
• Basics of branding and retail packaged goods marketing
• Category management and variety/duplication concepts
• Overview of the retailing industry and retail financial basics
• Compelling presentations of data using PowerPoint
IRI Analyzer
• Software used throughout the course• Basis for learning analytical skills• Widely used in retailing and packaged
goods industry
Grading
Final Project
• Project Outline: (Due Week 5), includes targeted data sources and references you will use for industry information.
Integrate the course material to help solve a real business issue
• Demonstrate understanding of key concepts
Case Analyses
Case Analyses
• Data to support conclusions must be used in the body of the paper and must be shown in attachments (from Analyzer reports)
Attendance/Participation
• Mktg 475 is a discussion class; everyone is expected to contribute
• Miss 3 or more classes and receive 0 credit for attendance
• Level of thought, regular participation and listening skills will be basis for grade in participation
IRI Exercises
• Lab session
IRI Analyzer Basics
• What it is• Dimensions• Starting• Navigation
Dimensions
Geography Measures
Time Products
Marketing 475Retailing Management
Week 2: 2002
• IRI exercises Mod 1-5; 6-9 • Retailing basics Ch. 2 • Retailing strategy Ch. 6
IRI Exercises
• Mods• Practice Case 1
Retailing Basics
• Functions of retail: break bulk, hold inventory, provide services, add value
• 20% of US industrial employment • Some of the largest firms worldwide are
retailers– Kroger– Wal-Mart– Carrefour– Home Depot
• Career opportunities
Food Retailing
• C-Stores: <4 tsf• Conventional supermarket: <20 tsf• Superstores; combination stores: 20 -
100 tsf• Warehouse/box stores• Natural foods• Specialty
Creating and Implementing Retail
Strategy• Target the market• Identify the format• Develop long-term sustainable competitive
advantage– Customer loyalty– Competitive position
• Provide appropriate merchandise and services
The Retail Mix
LocationStore design
Assortments Pricing, advertising and promotion
Selling and service
Start of Week 3
Assortments
• Variety (breadth) vs. duplication• Breadth vs. depth
Category Management
• A “roadmap” to better marketing planning and execution
• Recognizes and involves all parties in the supply chain
Category Management: an Outgrowth of ECR
• Efficient Consumer Response: grocery industry initiative
• goal is to drive out inefficiencies• ... in grocery channel
Efficient Consumer Response
Supplier DistributorRetailStore
ConsumerHousehold
Timely, accurate paperless information flow
Smooth, continual product flow matched to consumption
ECR: 10% of the Retail Dollar Represents Supply Chain
“Waste”Strategy Objectives Key Capability Opportunity
($bil)
Efficient StoreAssortments
optimize space CategoryManagement
4.2
EfficientReplenishment
minimize timeand inventory
ContinuousReplenishment/forecasting
11.4
EfficientPromotion
maximize systemefficiency oftrade promo
CategoryManagement
11.9
EfficientProductIntroductions
Efficient newproduct activities
CategoryManagement/product devel.
2.5
Category Management Defined:
“A collaborative process of managingcategories as strategic business units...byfocusing on consumer value.”
» ECR Best Practices Committee on Category Management 1994
Category Management Major Elements
InformationTechnology
Scorecard
OrganizationCapabilities
CollaborativeRelationships
Strategy &
Business Process
S tep 4C ateg ory S corecard
S tep 3C ateg ory A ssessm en t
S tep 2C ateg ory R o le
S tep 1C ateg ory D efin it ion
S tep 8R eview R esu ltsS h are G row thP ro fit G row th
S tep 7Im p lem en t P lan
S tep 6C ateg ory Tac tics
S tep 5C ateg ory S tra teg ies