1243013504_Chap005(2) - 5-1Market PenetrationAttract...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 5-1Market PenetrationAttract customers from target market Walgreens on every cornerGet current customer to visit store more often or buy on each visitCross Selling sales associates in one department sell complimentary merchandise from other departmentsExample: Manicurist sells services plus hand lotion or nail polishExample: Salesperson sells leaf blower directs customer to electricaldepartment to purchase a 100 foot extension cord.5-2Market ExpansionMarket expansion growth opportunity involves using the existing retail format in new market segmentsDunkin Donuts new stores (and at gas stations) outside northeasternAbercrombie & Fitch (for college students) opens lower-priced chain Hollister Co. for high school students 5-3Retail Format DevelopmentDevelops a new retail format with a different retail mix for the same target marketMulti-channel retailingUK based TESCO:Tesco Express: small stores located close to where customers live and workTesco Metro: bring convenience to city center location by specializing in ready-to-eat mealsTesco Superstores: traditional storesTesco Extra: one-stop destination with the widest range of food and non-food products5-4DiversificationIntroduces a new retail format toward a market segment that is not currently served by the retailerRelated diversificationUnrelated diversificationVertical integration into wholesaling or manufacturing5-5Global Growth OpportunitiesSteve Cole/Getty ImagesSpecialty store retailers with strong brand and unique merchandise? McDonaldsStarbucksZaraH & MDiscount and food retailers with deep assortments and low prices?Wal-MartCarrefourRoyal AholdMetro AGWho Is Successful and Who Isnt?5-6IKEAOperates 254 stores in 35 countriesUnique, well-designed, functional furniture at low prices for consumers who have sophisticated tastes, but have no intention to spend a lot You do our part. We do our part. Together, we save money.5-7Why Do Category Killers and Supercenters Succeed Globally?Developed operating expensesScale economies for buying merchandise globallyUnique systems and standardization formats which facilitate control over multiple storesUnderstand that consumers are willing to forego service for lower pricesRyan McVay/Getty Images5-8Key to Success in Global RetailingGlobally sustainable competitive advantageLow cost, efficient operations - Wal-Mart, CarrefourStrong private label brands: Starbucks, KFCFashion Reputation - The Gap, Zara,...
View Full Document

This note was uploaded on 01/09/2010 for the course MKT 4324 taught by Professor Trappey during the Spring '09 term at National Taiwan University.

Page1 / 33

1243013504_Chap005(2) - 5-1Market PenetrationAttract...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online