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 par...

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 as an industry leader. © 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 Stores, catalogues, Even non-profit organizations such as The Salvation Army have retail operations. 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 Conventional Offers groceries, meat, and produce with Safeway is a popular supermarket in supermarket limited sales of nonfood items, such as Western Canada; Sobeys is common in health and beauty aids and general Central Canada and on the East Coast. merchandise, in a self-service format. Big-box food Comes in three types: supercentres, Supercentres and warehouse clubs are retailer hypermarkets, and warehouse clubs. popular in Canada, whereas Larger than conventional supermarkets, hypermarkets tend to flourish in Europe they carry both food and nonfood items. and South America. Hypermarkets (Carrefour) and warehouse clubs (Costco) generally carry a greater percentage of food. Convenience Provides a limited number of items at Stores such as 7-Eleven generally charge store convenient locations in small stores with higher prices than most other types of speedy checkout. food stores. Most convenience stores also sell gasoline, which accounts for more than 55 percent of their annual sales. © 2023 McGraw Hill Limited 13-10  Identifying types of retailers General Merchandise Retailers Discount store Specialty store Category specialists Department store Drugstore Off-price retailers Services 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 basics. © 2023 McGraw Hill Limited 13-11  General merchandise retailers Category Description Discount Stores a broad variety, limited service, low prices Specialty Stores limited number of complementary merchandise in a relatively small store Category Specialists a narrow variety but a deep assortment of merchandise Department store broad variety, deep assortment, some customer service, organized into separate departments Drugstores specialty store, health & personal grooming products, pharmaceuticals Off-Price retailer inconsistent assortment of merchandise, low prices Services retailer primarily sell services rather than merchandise © 2023 McGraw Hill Limited 13-12  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 13-13 Product (Merchandise Assortment) Many retailers have developed private-label brands to differentiate their merchandise. © 2023 McGraw Hill Limited 13-14  Price Costco attracts people of all ages and income brackets as consumers shift to value retailers. © 2023 McGraw Hill Limited 13-15  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 13-16  Presentation (Store Design & Display) ⚫ Promote & showcase what the store has to offer ⚫ Displays are an important type of promotion ⚫ Unusual & exciting store atmospheres ⚫ The goal is to improve A Shelfgram photo of a Sobeys planogram (bottom) and heatmap (top) to indicate where consumers’ eyes are drawn. ‘shopability’ © 2023 McGraw Hill Limited 13-17 The Wheel of Retailing McDonald’s Websites Europe & Canada © 2023 McGraw Hill Limited 13-18  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 Augmented by technology: in-store kiosks, Internet, self-checkout lanes Apple’s personnel is a key factor in its stores’ success. The salespeople and Apple Geniuses are very knowledgeable. Provide more value to their best customers © 2023 McGraw Hill Limited 13-19  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 13-20  The Internet and Omnichannel Retailing Omnichannel Strategy A strategy that creates a consistent experience for consumers across all distribution channels. © 2023 McGraw Hill Limited 13-21  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 13-22 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 13-23 Effective Omnichannel Retailing Integrated CRM Effective Supply Brand Omnichannel chain Image Retailing Pricing © 2023 McGraw Hill Limited 13-24