Chapter 13 - Retailing Strategy

Chapter 13 - Retailing Strategy - Drugstore.com Groupon.com...

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RETAILING STRATEGY
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o Retailing Innovations o Polarity of Retailing o o Retail Revenue Streams o Retail Cost Efficiencies o Retailing Stories
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Industry Period Innovation Department 1880’s Urban Growth Store Supermarket 1930’s Depression Discounter 1950’s Affluence Specialty 1980’s Breakup of Mass   Market Internet  2000’s Internet Technology Retailers
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  Department stores have broad  product and service mixes. They  traditionally compete using high  markups.
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Macy Neiman-Marcus Sears Nordstrom
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  Supermarkets carry food and  non-food product, and use  extensive self-service.
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Supermarket Market Share 2000        2006           2008 Kroger 26% 29% 26% Randall 17% 8% 7% HEB 12% 13% 15% WalMart 3% 26% 29%
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  Discount stores compete heavily  on price, with limited assortments  of size and color.
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WalMart Costco Target Sam’s
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SUN’S CLUB IN HOUSTON BOX  STORE Major Asian Target Markets   Chinese Vietnamese South Korean
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 Specialty retailers focus on a  specific area, and stock products  in depth
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Home Depot Petco Best Buy Container Store Office Depot
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INTERNET RETAILERS
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Unformatted text preview: Drugstore.com Groupon.com 1-800-Flowers.com TripAdvisor.com WEB-BASED STRATEGIES List Everywhere Do social Networking Use Real Estate Sites Create Video Tours Use Texting The polarity of retailing concept says that there are two bipolar strategies for retailers today. On one end is the discount stores who compete with both volume and cheaper prices. On the other polar end, the specialty retailers emphasize specific product areas. Real Estate agents Insurance Agents Stock Brokers Sale of product Credit add-on Service add-on Insurance add-on Warranty add-on Activities Cost Savings Self-Service Eliminates sales employees Supply Chain Reduces logistic costs Models Internet Retail Reduces channel costs Successes Marriott Post Office Check-in at Airport Redbox Chipotle Mexican Grill Barnes and Noble Zappos Mommie Helens Mens Wearhouse...
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This note was uploaded on 05/07/2011 for the course MARKETING 3336 taught by Professor Wyatt during the Spring '10 term at University of Houston.

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Chapter 13 - Retailing Strategy - Drugstore.com Groupon.com...

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