Chapter 13 Retailing and Omnichannel Marketing PDF

Chapter 13 Retailing and Omnichannel Marketing © 2023 McGraw Hill Limited 13-1  Chapter 13: Retailing and Multichannel Marketing LEARNING OBJECTIVES LO1 Outline the considerations associated with choosing retail...

Chapter 13 Retailing and Omnichannel Marketing © 2023 McGraw Hill Limited 13-1  Chapter 13: Retailing and Multichannel Marketing LEARNING OBJECTIVES LO1 Outline the considerations associated with choosing retail partners LO2 Identify what types of retailers are available to distribute products LO3 Describe the components of a retail strategy building on the four P’s to create value for consumers LO4 Identify the benefits and challenges of omnichannel retailing © 2023 McGraw Hill Limited 13-2  Retailing & Omnichannel Marketing  Established in 1971  Filed for creditor protection in 2020 due to losing $80 million between 2017 and 2020  Rebranded as Mountain Equipment Company  Going back to their roots, the company is on track to once again to recognized © 2023 McGraw Hill Limited 13-3  Retailing Sits at the end of the supply chain Marketing meets the consumer Fulfilling customer expectations Set of business activities that add value Even non-profit organizations such as The Salvation Army have retail operations. Stores, catalogues, Internet © 2023 McGraw Hill Limited 13-4 Factors For Establishing A Relationship With Retailers © 2023 McGraw Hill Limited 13-5  Choosing Retail Partners Channel Structure Vertical integration Manufacturer strong brand in marketplace Power of the manufacturer & retailer Moores Clothing for Men creates value by helping its customers put it all together. Its wardrobe consultants provide fashion advice, and their tailors make sure everything fits properly. © 2023 McGraw Hill Limited 13-6  Choosing Retail Partners Customer Expectations Retailers - Who do customers buy from? Manufacturers – target market expect to find products & those of competitors Coach partners with retailers to help conveniently deliver its products to satisfied customers. © 2023 McGraw Hill Limited 13-7 Channel Member Characteristics Larger firms Less likely to use supply chain intermediaries Can gain more control, be more efficient, and save money © 2023 McGraw Hill Limited 13-8  Identifying Types of Retailers Food Retailers Conventional Supermarket Big Box Retailer Convenience store Instacart lets customers place online grocery orders for delivery to their homes. © 2023 McGraw Hill Limited 13-9  Food Retailers Category Description Examples Conventio Offers groceries, meat, and Safeway is a popular nal produce with limited sales of supermarket in Western Canada; supermar nonfood items, such as health Sobeys is common in Central ket and beauty aids and general Canada and on the East Coast. merchandise, in a self-service format. Big-box Comes in three types: Supercentres and warehouse food supercentres, hypermarkets, and clubs are popular in Canada, retailer warehouse clubs. Larger than whereas hypermarkets tend to conventional supermarkets, they flourish in Europe and South carry both food and nonfood America. Hypermarkets items. (Carrefour) and warehouse clubs (Costco) generally carry a greater percentage of food. Convenien Provides a limited number of Stores such as 7-Eleven ce store items at convenient locations in generally charge higher prices small stores with speedy than most other types of food checkout. stores. Most convenience stores also sell gasoline, which accounts © 2023 McGraw Hill Limited 13- for more than 55 percent of their  Identifying types of retailers General Merchandise Retailers Discount store Specialty store Category specialists Department store Drugstore Off-price retailers People love to shop at Giant Tiger stores because their merchandise is inexpensive, the stores are conveniently located and easy to shop in, and treasures are found every day among the Services Retailers basics. © 2023 McGraw Hill Limited 13-  General merchandise retailers Category Description Discount a broad variety, limited service, low prices Stores Specialty limited number of complementary Stores merchandise in a relatively small store Category a narrow variety but a deep assortment of Specialists merchandise Department broad variety, deep assortment, some store customer service, organized into separate departments Drugstores specialty store, health & personal grooming products, pharmaceuticals Off-Price inconsistent assortment of merchandise, low retailer prices Services primarily sell services rather than retailer merchandise © 2023 McGraw Hill Limited 13-  Developing a Retail Strategy When developing a retail strategy retailers must: develop market segments develop the retail mix which includes: product pricing promotion place personnel presentation © 2023 McGraw Hill Limited 13- Product (Merchandise Assortment) Many retailers have developed private-label brands to differentiate their merchandise. © 2023 McGraw Hill Limited 13-  Price Costco attracts people of all ages and income brackets as consumers shift to value retailers. © 2023 McGraw Hill Limited 13-  Promotion  Retailers use a wide variety of promotions, both within their retail environment and through mass media The Canadian Tire app lets customers easily shop from mobile devices. © 2023 McGraw Hill Limited 13-  Presentation (Store Design & Display)  Promote & showcase what the store has to offer  Displays are an important type of promotion  Unusual & exciting A Shelfgram photo of a Sobeys planogram (bottom) and heatmap (top) to indicate where store atmospheres consumers’ eyes are drawn.  The goal is to improve ‘shopability’ © 2023 McGraw Hill Limited 13- The Wheel of Retailing McDonald’s Websites © 2023 McGraw Hill Limited Hong-Kong & Canada13-  Personnel Personal selling & customer service representatives are also part of the overall promotional package Services: easy to buy & use products Retail associates provide information, facilitate the sale Apple’s personnel is a key factor in its stores’ success. The salespeople and Apple Geniuses are very knowledgeable. Augmented by technology: in-store kiosks, Internet, self- checkout lanes Provide more value to their best customers © 2023 McGraw Hill Limited 13-  Place Convenience is a key ingredient to success To offer more convenience, some Shoppers Drug Mart stores are open 24 hours a day so customers can pick up prescriptions or other items at any time. © 2023 McGraw Hill Limited 13-  The Internet and Omnichannel Retailing Omnichannel Strategy A strategy that creates a consistent experience for consumers across all distribution channels. © 2023 McGraw Hill Limited 13-  The Internet and Omnichannel Retailing Consumers who shop at omnichannel retailers—retailers that sell merchandise in more than one retail channel (such as a catalogue (right), the Internet (centre) or a Canadian Tire store (left)—typically buy more than those who shop in only one retail channel. © 2023 McGraw Hill Limited 13- Benefit Of The Internet Channels – for Retailers Potential to offer a greater selection of products Provide customers with more personalized information Retailers can collect information about consumer shopping behaviour Retailers can enter new markets economically © 2023 McGraw Hill Limited 13- Effective Omnichannel Retailing Integra ted CRM Effective Supply Omnichan Brand chain nel Image Retailing Pricing © 2023 McGraw Hill Limited 13-