In This Chapter, We Will Address the Following Questions 1 ) 3 “ ‘What major pes of marketing itermedlaries occupy hs sector? ‘What marketing decisions do these marketing intrmadlares make? What are the major trends with marketing intermediaries? hat does the future ldo privat abel ands? Coa sn of atu asin offen pla an leet, ‘ashy cagntrt nd tn ie ierManaging Retailing, Wholesaling, and Logistics {In the provious chapter, we examined marketing intermediaries from the wpoit of mantactures who wane oul and manage matting charms. tischaptr, we vew ese memelares—raabr,wnaesles, and esa ergunzat—as et and fgg ow markt sates naa changing wor. intermediaries lo sive {oc maretingexcebonce ard can eap th benef Ike any ate typeof company. Sli tal Lined, stir of Tata Sons, ented the consume canes abies retaing segment witha chain of shops unde the tran name Cama in 2006-2 tie when tadtonal tales wee stugalng fo cope wih changing consumer prefreoes and increasing marke compe thanks to a wide range of product extaguis, brands, and models. The change in cansumerpetrenes stemmed om th wie range of atin sa ow rie, base mods oi ie, sophia rmoets—avbe, elated y te recut an exe ty nwa oth 2008 lta eearaic _makaown.Casuners gant sesk mae tan mere gps ute oping fr ecroncs—they sought a super stopping emeronce The Comaphesopy of "Weep ov Buy" waste wt) arse exgettons. With abou 73 etal ota e mars and maori, each agsip rama stare oles 10,000 200005. 11 of shopping space with planned lyut and designs, which kas _stoig fr consumer leon curable apleswabie expsriece, The sales peop, desma assole avr, ae weed on rout knowledge and are capable of ging buyers in making Informed chaces—en important sil fom consumes’ prspectie ‘see technaloy complex and vant causes che ones Wo atout 6,000 products across 8 categorie, rama iste tst lage fomat consumer ecronis crabe tale wth 2pan-aa preserve. Retailing ‘While innovative retail formats like was nse sires ar Bi azar nia, tational ears the Zappos i the ‘Uo Sates, HM fom Swede, and Zara ant Mango from Spain hae rived in recent years, others sot as Suita ‘in na, ap, Home Depo, nd Kart have food decline. The ‘roe secs termed we slap amin, chanced Intrmaton systems, and soptisioated marking tos. They segment ther makes, improve their market targeting and prsning, and aggressively pursue matt expension and ‘Gvrsicaon stoi. nis chapter, we consider marketing excelent, ws, ant ois. Retating ince ll the ace in sling goods o services diet 1 final consumes for ‘erondl nonbusnes te. A ear seta store ay busine enterprise whos as olume mee primar eng “hy rginizton sling to nal consumers—mbther iss manuficurer, wholesaler, of setae doing retaling Kt doesn't mater how the god of services are sold (a perso, by ‘na topos vending machine, oon the Ineet) oF where (na toe onthe tet orn he Consumer hoe) “Ae ein the diferent ype fries andthe ne retail mating environment we rami te meting deo eaer k The ling ato example of nova ral nnn ht hae enperiencel mht sucess et Yes‘Te MobileStor i onestop ‘ston or dengan eo Innovative Retail Organizations Latsra] Panera Bread. Th $25 bllon Pasa reat estavant cain ape “oed pone ho underlntardespond to fod se on he vege of at" by stn tes “ea ‘ond-nd of warm besd—at ol pes tat custome ae ae tan wr a ay. An npeteiusstoepere—no table sce, but mo ne Int—encourages customers ge. The bran ise saree uta schist n appeing contin af tesh cstomeate, caver, rd atta The Mobilestoe, The Noise, wit 3,200 les aces 200s i, prone ep pr soos Each sr, eda 150 150 2 nat oa compari pro ame, tad and nla sare St wo ui cones acinar ene, mpage evi. as mn ‘mnsnersegntatn:Busess—POA ard sat tons, ema da ane Lyon he a ec Fcc MONEYBACK. ferucecik ilny—esloon oa Spats ss Odyssey. Started in the summer of 1995 in eran LP caren coer 100 pet tay ot Dozean Choi Hlirgs Lined—now nas 50, tes n 13 ces, ech wih arond 250,00 sa "etal spaze, which is design fr consumers ere thresh sree, Peskin uke eat thas rece fn across sr pe, en fram populate, arf, caput, saleby, Pay, reagent an din, a a, andrei citer sbi, gv cusamers radi sage cho fa, Naso as a goed nit nase, res muted, sacs, a gs, Because oe ees clectin and arg, tho ca ees or rll kts vy er Oral, OS as tine et try a bon ars paras ut a0 a net stp fr al ur reeds. eles proving an undsurbes psa sappng eereoe os oatomesina owed abe 2s ech store rosso ea uni nnn xen we cok, tata ‘a spaces. ale ening deg and gs oun stop, The canoes of potrg asta on spaces someting it cy stg bees iA seagate ne nk sect, ply en fr as, a Itong consoles cutest sen oe tare acs ble tay th some ct at-nsohepcusoers ey ents. Neta-Porter._Londr-ase Nes-Pore anon lary cing and accessors rear hse We se ombires esl fasten mapane wih bet of stoping tachi ge Srey alcstoners a outerste asin vo, Net 2 Por seks ae 00 ana trad, sc es Jy Coo, Alstanter Mee, Se Meaney, vert, Mae Jabs, and ‘tr The apa ships i170 cures an oes sed dln and and Maat, te aeae oe © $280. ‘Types of Retailers mer oy ans fr rode nd evict rete notre eaerdel Stow SSTORE RETAILERS the most import epes of major sore eas are summarized in [© Table 151, Dillzet formats of sore reer el have diferent compete snd price Corporate ehin soe woe mere cues ome ar antl, eno antl nga ert, an ain Sees of machandse Ge, Pty Ban, lance Mat. onary cai: oka sporsrd pou of nde etal nga in tuk bir a cmon can, reper ces ance 9A). etal cooperative: kina els una a cena br ranean ant ronan ‘Mos Asseebd Gus, ACE axon, Consumer cooperative: eal moar ys umes Mente Orit nae p60 tar oun str, lot pues, lt gp marae and coe den, Loca xpos Ine goosy ste can be found many sts, Super Sz Franchise organization: Cras ssocatin beter ancl ad aris, popular 8 | ruber af po and say, Pa Mu J Lite, 7, TZ. Merchandlsing conglomerate: cotratn ts cores ea cei etn nas nd fomstder ial ounecip wi se rsgate af drut ard anagem, Fedral Dparment Stes ena et aoe best srg ears May's but evr ta tear si as Bonringil’. The Ft Grup ns hel tans Paiors, Ct, fi aa, Fo Baer ez, an ene Town alsin i alo),MANAGING RETAILING, WHOLESALING, AND LOGISTICS “Tee” Marketing Insight, Organized Retailing in India ‘The nan scr has ton eigenen ast fe years. ba 10 psn of the GOP and eos 40 ln peri repreoing sb pera of te tat ern. Curent, 1s the secod eres egos aftr tate ‘has the ges real densty ah wr, wth bau 15 lion ‘al ut. igi Fag, wth ely pect tte ‘ats wh xg tan 500, pae, and on 8 pret of the ta ‘terns sor. Into year 2010, hese of en el mat ws etrted ‘to be $46 ion abut 20 hc) wh te shar of xara ‘etal bgt 7 potato is urbe. Thelndan al mari oes jected or att $585 lon bt 27k cae) 2013, Inthe hare of ence el ing10pa By 2020, hb ‘aro nec reals expec tea abut 20 pres “hae ar iret yes of retain oma nha oanind sect, ea cataing othe are rquements of custome. Caneriene stores fhe Sper’) cay mae asin a po- vide ferent seppra pec to castonos,conpetrg wih rt ‘ana stressor re sch he Marios Mart chin fre prio prt at ver ces. Sue marks Io Mae are lzpearatshop wt wie vary of pds, cating othe nore quent of ctor, Oxparmet ses he Sapp: ‘op an peat ke ig Baza, Hyper, elao> Mat ‘sesame te ober eras ganze air, ‘Sorel actors have canted othe grow of eget etal: creek, rth in drsbl rare; or, fue, yun, and ain pop, partes nun nds teeny of pe domestic snes nes such 3 Race, Aya aN Led Bhar, a! he Mahindra ae! ho pening up Foren Det knee 9 sngetrand ta There ove ‘nll FD, wth mae fan 5% peat omer, oman a ret Have ae apt fom Be renin sear fe sae lg cl paras epson do ois kay gal ‘te nearing act ard omy, none, Facts infor of oering p FI r-rel + ing mu nde inestnet incest sage, tans rato, an rocesng astra, rag roc the ure ‘esa fl inst. (5 estate Mat shut €200 len ‘er edo nds ee et, +R irom te seo aren th ie pl tye a crue tous lian unecesa remedari, lingo te ie vata engoyet e gong ner of ced ou, + til ep ime te dsbuton acess an tiny ot ‘te unaanod sect ala trou eat rey Honor, king in mind the importance ow eal sector in tem of serpent xen, cron a GP, an spats sens, olomatrs mayo cutis sation wth su Clery ovis. errs tn Faas: naar na” ‘itn semua scar hy p's anew eases (piu rome 2 {rhc on ran, eeu elt yon incase tft ox a a Se ity loa communis and eonitions, ad the enormous purchasing power of big 2 fan ‘ht ranches Benefit frm buying nt Besnesr wth wal nove and accepted brand ‘ne, They desis oor money fot bosns fom Financ intatons, and tey {cv appt nares aging fom marking a advertsng ot slecton and tang. ranches do wal fin lie between ndepende snd loathe facia. Some fan csr ae piv th ranches een to tun thi own pean, rm pesonling sore ‘mes to adjusting fering and price. ‘The New Retail Environment ‘Theft changing macro- and micro enronment, conser eects and compete pes ‘ae hve reed inser change nde etal sector Is the United Sates he set of eesion Ino waea mao rigger for hangs Ini, the growth of erbniton, th sie fhe Youth ‘tke wit high dispel income and enon ieraation has supported fete row of ‘ranged etal tas lence several hangs in the etal aking environment Here ‘eon that are changing the way consumers By and manufactres sod rts compete (Gee Table 153 fora suman), ‘New Retail Forms and Combination. To bee sty estomer need for convenience, 2 ‘rey of ew etal forms have emerged Boottres etre colle shops Gx staoasinlue Tod sores Shopping mall and bur end in ston have pele’ atin hl ae,Now al oms arc eatnaters Groth oft competion Canpeton etveen se bsod ant rns bse eng rom o grt eas Decine of ik-markt retlers Grong neste inte oa proto mar tars Gon of sore math | eters ae ao experimenting with mite ime “pop-ap” stores hate etn promote brands to nenonal shoppers fs ew werksn bay are ad crest bee [Growhoftnertype Competition. Deparment tots ca worry bout other department ‘orer—dscount chins och Walmart an Tesco areeandig ino rod sts sch lothing heath, bry. and det planes, Dfleret types of Sores —dicoua sor, ‘atalog showrooms department sores compete for the sie consumes by caring the ‘ane ype ofrmerchandse Competition betwen Store Based and Nonstore- Bad Retling, Consus no rcive ‘css through det mailers pelos, levine phones ad he ner ‘The nonstove based tetas ming hee lle ar ling busines say om oe are ‘tales Store bse ears have eaponde by presi their Web penenee an nding erent ws o sel oming nclaing hough tr on Web ste, ar wel ar resting mare invovng ard engaging expences fn trove, Sure bed rear wet thet ores tote deinains where cone enjoy vc experience that captivate al he sees Sopa gting se of propre ment, nd ining intimate designe se al ng ineensnly employe Growth of Giant Reales. Through thir superior information stems gist stems, land buying power, gant reer suchas Walmart ate bl to lve good serie aad immense vlames of dict o mae of consumers at appeding pits. Tey ae crowding ‘ut smaller manutitrers that canna ever enough gant and of diate othe mst ‘porerfl maufactrers what ome, howto pie and promt, whe ad ho op, {nd even ow to improve production and management. Manicures ned these acount ‘teri they woul lose 1 percent o30 percent of the markt Some pant reales re ‘gr illest concent on one dat caer. bers are eae tat combine rca tems wih shige elation of nonlood merchandve Decline of Middle Maret Retailers. tn developed economies, retail markets today can be carctraed a hourglsordag-bone shaped: Grown seems ob cnteed eth fp ad 1th atom. Homer Inds nd other enering mart the mises s shoving ‘bust growth athe mie dat consimer—ith higher dipole income i spending fm many categories of products Ar dicount tetas pov thst Quy a ng Consumers hae ben wing trade down “Growing vetment i Tehnolegy Altos al les now oe technology to produce eter forecasts, conte inventory cos nd order scone om supe Techology ita afeting what happens nie the tor In-store pogranting on asa TV ct uh Continal demonstrations or pomtionl meses. Mer encountering potens mesing Soret pan down ale GPS on boppag cats di wok bea onsamers ended to bandon thir ats a ties daring eps and thermal imaging could’ tl the cieence Ieee keys and babies daring tt biiectionalinared sensor iting om sre shes ve bees accel introduced Eeazeni sh labting elle rales change price lee instantaneous aay ie ofthe day o eck Rear are ao intrxing fates: top caster hey shop. Some supermarket ae employing "mat shoping as ot ‘able phone that pcre loses in the Hore, find ot SO ale and peaoffers and pay or items moe easly. As exciting as these ne techs re the cast nd ‘nproseneteciensn many ies concrete icant dav + Gaal Profile of Major Retailers Rees with sige mat ad rong brad postoing tne inaenngly appentigin ther counts, US. tale sch the Gap ba bce ly Promina Walmart operat be 3400 sores outde te US wher doe 2 percent of te Basins Dutch tae Ald and Ban etaer Delica lest two tid ond foe ih of hale, rape ondemesi markt Among oe bardbl alr inthe Unie tats la Benton Sede'sTKEA home fais sore and pes UUNIQLO cars apparel aner and Yaoan sperma + Growth of Shoper Martin, Buoy by resnchsggetng hata mich 4 70 pent 0 ‘See detainee et oer engin iSpy and ll con bw sian eon alks® More communication pone ‘vale ough in-store averting nuh at Walnut TV? Sone ey gage eves that cord what tr ctores ee by peeing effaced beam ai te eae ction, ‘One nding ws a ny shoppetgnred peoduct at eyeevel~the opis lation wat tetecn mat and ct ee” Marketing Decisions Wh ne eal evicament at bckop we wl exe li? mating decks a the ea oft era anak pole rtm, proce pens ante ‘tomer, tte ce snd petra commana ed rate, We dca leper top ofp ee bw tnt sens ‘TARGET MARKET Unt it defines and profes the target markt the rear ant make omsstent dacins abot product asorent, ore decor, avetsingmemperand medic, Yashon and You an olne Sneed uion nd You, the online etl pot har found succes by oferinghigh end ion alors brands at dacounted pecs oi custorer saan buyers of Sager ie Fashion and You. ssticn an yeu, an cus ole fshon etl paral anced in 2010, ‘pod a rico mat segment ht was to pacts ‘ui sper metarconbpers wth i sh, Tar rans aes tion apr accesses, vat, wakes, owl, fanned, an ese epetins,a ole rice les eestor testran, Teese go ere at 1:00 ‘avs rerirg 2 st he ays on ae. a anced desaper rts tas much 3 80 peent sar. grantees he here fey pes Dae he metas ces an eer emacs, akeeed spre rote. hoghrentesip ‘fe, eis excise hoping cu sty ination Sta, thas ‘elle on word of rout pubic a sci media such ot ard Wook, it amare an 1.5 nga members, has aes, bits ens vey month Ris now egg never len ‘ae te ya Mistakes in choosing or switching target markets can be costly When hstoially mass-market jeweler Zales decided to ‘hose upale estmers ft repleed one thd of te merchandie, oping inexpensive, low-quality diamond jewelry for high ‘marin, honable 1 art gold and serps and shin its ‘eampign nthe process The move wa ater Zale est many stistadonalcsomers wt wining ene stones‘blade reaches indian zed initial bers trikes ungue ete ‘tern touch male ‘anal “Toei ther targets retarding the markt it erie spent ad intocing in of orto expo niche mats with more eleva ering Channels ‘Based on a argt matteo and other considerations we eviewed ia Chapter 4 eters ‘must decide whch canna cploy to each hr cater Ince he newer skip ‘han, Spl sels trogh tational etal channel, x diet respons terete, via ‘nll and thousands of lk on fits ‘A Chaper 4 explained, annel should be designe to work ober fective. Centry od depute store cain Renney aes that Interne, toe a ealog Dainese ‘efi intertvined- Ise avast arity of goods online has made Ineroe ces avaible ‘ie 380 checkout eaters tallow an shopper ok up an tur onder a ores {nd check which ote aren tock thre Those steaeias well the intodution of ah. {yl ine of woes doting hate ped give JCPenney Young mote useage Pains has ocesfally wan ner niche approach ofa tres he nent andi alee the band Fabindia Fats, stich was sup 11960 gor ratinal en wees and gamers, row cts reals, rn, ad insane sls to ernace FROME csr each a rt eprint, Dy to 50 yas, es end is raat ‘ange nin arent acess, one furisigs, ovo odus, ric os, personal carpus nao gamers. Teg neta of 141 rea ses Inia and oe each in Dba a, an Neal anda reaches oto induc oto. has (dct sutra aos tar of pressor oar produc cistron ad ine est ‘orhrtoge ot, ests andes uss emus egos un 2s wal 2s ames ears and rar nv 38 counts. olga spcal exert clin wae, chs {Showcase atte ndan Hendra art Gis Fr, ew Dah in sping aan, sess Tay recognized Fabia as one of a's tp mats 2008 2000 was iri a ooo te ‘ane chargrs y sesso. Ta Fabel od! was adie ae of the st nova by 2 enit-Buses Tony sue occ sss sty i 2010 Frese ess ysis oy pte aPRODUCT ASSORTMENT ‘theretarsproducasortment mst match ther she’s shopping expectation in bait and depth Arstarant can ole nro and sallow aso ‘pent oma lanch countess aro and degpatortment (dest), «broad ad slow ‘ortmen (eter), or abroad and dep asortment (rge rasan). Henin the ng prc sorment can be pial changing fst moving nde sch a techno or fabio. The el challenge bie afr deing the store's prod aso. ment an that ito develop a rodt-ierentiation sey, To Bt diferenie temo {nd generate conse interes ome iy eters te raking the sore and merchande more “avid: Chane has expanded is "ural goods including 250 aigator bg, whe esrig an mpl sop oases” hat are consent strong sles" Hereare some te oss estar env national brands ha ar ot rable at competing eller Sala might face rgs to cnr the reco wel Known interatona Seine Wis Lie is added Wil Lauri expres eat range and is contemplating aching an lnteatonl eallon offal women’s wet rail y the Manse desis hose FD + enture motly private-label merchandee. Benton and Gap desig most ofthe tes ‘red thei stores Many sapere ed drug chai ety peat abel mechani + Feature blockbuster distinctive merchandise events. Sloomingdsk’s ran» month-long ‘clean forthe abi dels Sth anne in Mach 2008 + Renu rrp or everchenging merchandise. Wenhouse ora srpieasortment of ‘por super ot 20 percent fob prent coat to sta new young bayer. + Foture the latest or newest merchant. Zar exciin an profits ng Hs 1 Itt wth appeting new looks and xg The same tr for Shopper Sp. + Offer merchandlse-custmising service. Harrods of London will make citom-red sus shirts andes for axomets in adiion tread menswear + Ofer a high gt aoriment. Revlon Clahing Pt. Lid pine the concept of ued lio snd tageting women wh wane ala ak without bothering aout Phe per igre PROCUREMENT fer decting on he produtassomen stat the retaer must sabish ‘merchandise sores pls, nd practices Inthe copoate edgar of spermarkt chin ‘pecs byes (sometimes called merendse managers) ate sponsible fo devoping brand ‘Sozment nd lsteing salespersons presentations Reale ae apy proving te els demand areca, erchandie etn, tock onl pce location and dpe. They ti compuesto tack vestry, compute compre ‘ler quintiy order ode and amped sent on vendors nd produce, Supermarket ‘hain caer dat to manage thee mechani mi on a store by tre ‘Some sore are experimenting with ran frequency senifenton (REID) yen made wp of ‘sat tags—mictchips tached ot rao atennas—and electronic readers The sar a «i be embed rods or ick on abel nd he the ag i ese ede, an ‘nigue Meniing number its compute tube. The use af RFDs hs bee steal ines Ing Ccs-Cala abd Get use them to monitor inventory and rack goods in el ie they ove om factories to supe to shoping basket. ‘When eters do study the ena buying ad sling india prodact they pial find st third of ther quate forge tied pin rodat that ont make an conompoit {oem (rit sine ancl). Aes dyna aint prcntentrns tha break cen. The fil thir ofthe pace crests the vant may ofthe eno od yet any etree saa which hire fh proce generate > Stores ae using diet product proisbilty(DPP) to measure a product's handing cos loscving, moving to storas paperwot,eeting checking losing and apse cor from the time reaches the warehouse uni cisomer buy inthe ret tre They arn othe "pie thatthe gon mga on prod often eas te elation othe det proc profit. Some high-olame products ny have such high handing cous that hey ae es profile and devel self space than oe taame produ PRICES Price are ey pusoning factor and must be et i eonship othe target mak, products avortnent mit and compton" Al ets wou he high ts cas {high lames an igh rom mri) bu eo don sal go gee Mat tral toWestie ere comic ip ge wih aod. the high. marapowersnume pro Eine oe) othe ow ma, iets roy lrnsrmercandiee nd dicount stores} Within ech ofthe roup ae are dso How ‘er me soresincloing Wes ave combine hip image with afordble price ter an trate vale proposton 1 consumers u) Westside was, oats yt atone Trt Li 2 ang tal hai ego 5 ste at aftr ces, tea nasa Wn warn snd Yo. aioe st wa cw in ats oe esis niin. | Te se ae pte of cistron 2g wth aly, eae se ad ass hei opines Te dees dno eiansn eso en Fo Wess use prota ene neg Waly ans We st two ora milan nents, Cbs lot pogan, ees ch ste bes. esse as mesa nwo su) a Cl rd St arene sre: re ‘an an oer rng a cas, oe e arele epe ‘gk a’ sys c—tare” Most retailers wl pat ie pies on sme ens to eve ali bude rls ede oF signal th pcng ples" They wil un toreie ale Thy wl psn markdowns on sewer. ‘oving merchandne Shoe rete, for example, expect sl 50 percent of thr hoe at he oval mary 25 percent at 40 pect mark and the emsning 25 peta ct ‘A Chapter 3 note ome eas uch ar Walmart ve sbandoned els pring” nor of sry ow cng (EDL). EDLP ean ea to lowe averting cots preser pricing aby, 3 ‘rong image of fares and els, and haher eal prot. Sopermarket chins pain, “ay ow pcg cn be more role than hse racing how se ping ut on ‘SERVICES Rete mt decide on the evo miso offer case: + Preparchase services ince seceting clephone and al onder, averting, window and interior dpa iting roms, hopping hour hon sho, and rade + Postprcse eves ince hip nd every, it wrapping adjsment and rer, heatins and aor, intalatons tnd egrvag + Anca services ince ener nrmaton, check cating, pking retrain, inerie decorating cet, ret roms, nd baby tenant serie Another deers nerrng elle cstome sevice water ce ofc ars phone lien orvionlne cht. Whee tes do snkanc comer sei, hy mt erp WomenMANAGING RETAILING, WHOLESALING, AND Losismies | cwPTER IS 619 in min, Wome consi sina enya the marketing stn thy by large range of Products and service nite the buying proves of howe! pod abd infence rod and rand hoes Buyers i Ini, oth men and women, ae ale nereasngh looking fo a more etn! shoppingexpeiene, STORE ATMOSPHERE rmophare is aother element inthe tore ase. ery sor hs ‘ok and phos ayut that mast hard or nyt move wound (ee Marhetng Meme Habping torso St" ests ms os lh sense in sping the cstomers experince Varying the emp of aac vragen nd le pent nthe sperma. Sony Se ores ae ene with "lean and mandarin rage gras, and every ufc, ftom cameos panting Scupet ae touche Hong's reenter darmowe inthe aby store sant lon he baling use sin ge and cinaron a peek STORE ACTIVITIES AND EXPERIENCES.‘ roth ofe-commetceh force tional ei and morta ete torespond. In addon ther tur aang ich ay pros that shoppers cam actly se toch and st elie castor servi and no dle Inge fot no purchases stores abo provide shopping eperiene aa strong dein Marketing Memo TAF apo sb ewes re ei Bae a ‘earns or way» ee sap ener. Pas Un agra nor eal na Eel es cs nae eso’, Sua, ee aid. Bohs nen, Gn BUDS "ig C18, an tae Us acnbran fe wo eg ‘edna sel aN skag say SD OD pee ca YR ay op. to eng se err ey al ae: + tsps nd ep enn te tee ena ot ‘Supa gen nas pater fe srg atime Ino rch ey bu Tors 9nng Se, h ‘Sap sf ane gcse 3 themvajoan wh for aren arch cnet les oes hate, ob an eee oa Be "arotn 2” On enor ae, pet san ‘oun stats ins ey ly brag fat mnt pat se, rerun, Cs ‘eyo a ar, de ae ewe a ‘fp, ro otros ne. he retard nn ote Avi oes. Se se, ot ks ara, ag, ‘Sued mac coe es oh (Ub a ar pea ok Ba Cpa pa cana sey etm ‘a ow sr ep rari Gebel ‘raps 10 satin Pe aeoenPalpee e no. Corn rea by Semor a rae Sexpes bok noe Drones canes eee a poate opps teat eee ate mates ee ech sd uh ha 9 rege he pros canes frds Ascot ‘eras, cast sve os tl sper ca ah been poate pen ee te ts tz. tie ware pe ol bs: Ta 8 thos erase seein seri os felon Ao pe rea nt en toma serpmepractisimakoty ener feat mn kts aye at te tne ef ass ae rary in, a thomas ei ty Mc "he ang wie gs aac a cen ck lp el to ror on, fn st hk rage ater nan ad ae Aco. i om, free ay yon ere ies a, Sie rer ancora a eg ae 08 Ate isu ea. Be ax whe ert ip rag gos rx cash gees say eu sper, Psp be by Candy Pye ou 5 a eth, Sevres Pa Cot A heat Shy ho Se Sint, 06 Fe nM BT Sar of Bo San Sut 9S a ave Sey sen oD Bao 2,205. 1B Pa, "sal eo ‘ns 201 20 7B, ae Ao, 6 Son Be, “ting Pe Ma Oe el Ey Se, Suk‘Thestrestmeephere shold match shoppe basi otvains fester at ily to en «ata orgtd and fonction mind-set en simple, more estnnedin-ste environment may {fe beter On the ther hand some retailer of expel prods re rating in-store ctr ‘ainment tata casomer who want fun and exciteeat> Fr example brands sch Sony tn Panasonic often offer spec dsigatd nes within ors, whevecstmers can expen ‘th uly ofhigh-end ome thester sens and sia prod, COMMUNICATIONS Retailers use a wie ange of communion tlt generate ec nd purchases. They plac aru spl als ste money-saving coupons, an un eqn shopperrevard programs in-store fod sampling and coupons on seo at checkout point ‘They work wt nutter to ds pono se materials tht rect Doth the ages ‘Upurea place sl al pape an magi ach Vag, Uay Pin on Bare and cateflly rain salspeope to get astomer, interpre the ned and bale compat Ort price tas wllarange tho merchant promote rains ad svinge, he conser Ingen seve and ls astane Reta ae ao wing iterative ad soil media paso {afoation a crest comunii rund hl bande LOCATION ‘The thre keys to real ses are oe sid to be “leton, losin, and oct." Department store chun ol eompanes, and is oe fanciers exec eat ea selecting regions ofthe coun in which o open ube, hen particular te, and hen parce Sts Reales can place stores i thelowing oan: + Genial busines arcs, The et and mos heavily wicked cy aes fen known “downtown” + Regional hoping centers Large sburbun mals contin 401060 tors wth ew wel ‘non chains ie MeDonal’, Westie, Fubndiv anda numberof ching, ote, ine, ‘ted consume eens ore + Community shopping centers. Souler mals with one anchor store and 2016 smaller {Shopping strip: csr of ors way sone long bung serving goood eda for grocer eda, unde, shoe ea, and dry cleaning +A location hin a larger store. Cerin well own eaert~ McDonald's, tacks Danka Donut late now, smaller uni ar onceion space wih age treo ope Yon, sch av airports cools or department ste + Stand-alone tore. Some retailers sch Rlance Mart aod Spence’ avoid mal and Shopping cenesto ate new stores feestandingsteson set othe ae pot connected Siety other eal tors, Inview ofthe elatonship tween high afc and high ets reales mus die onthe most shantageous cations forthe ots sig ta counts suveysof consumer shopping hai, {nd ans f compettve cations. Private Labels A private bel brand (alo called esl, sore, howe or dissibutor bran) i brand that ‘eters sd wholeers develop Benetton, The Body Shop, and Mala & Spence carry mo ‘rabrend merchandise Ia grocery sore in Europe and Canada sore brads scout fo 3 ‘ck ar 40 percent of the ems sold In Bean te largest food cans, roughly bal of wht ‘Snsbury and Tesco sel stor label poss, or many manutacarery, etalers are both collbortors an competitor According to the Privat Tabel Manure Asiciton, sore brands now cont fr one of eer four ens sold in US supermarkets dap chains, and mass merchandise, up fom 19 percent i199 In tne sty seren often shoes bleed he pte bel products they bought wee god a Ifnot beter than, thet national brand Sting side beverage, piace abs account for ugh 0 erent of al fod served in US. home, and vial every howachol purchaues private bel Ivands om ie tine Prat abd ep unig scence in way that has many mance of ame ands running scare, Some sper blr thou that 0 percent ithe tral itor volume[MANAGING RETAILING, WHOLESALING, AND LoaisTiCs | civeTEA 15 of private abs to cary Because (1) consumes prefer certain national bands nd (2) many product categories ae not ese or attractive om a private basi” Pia bel Brands onsite 10 pcent to 1 percent ofthe ales organ wean Ind Private bes comple more than 7 peret ofthe tock at Tent, Relonee and Pants, but et han 20 percent a Shoppes Stop and Spence” Role of Private Labels Why o intermediaries sponsor thei on bran Fin these rand canbe more proiabs Insermedianes seach for manatactares wh exes capacity tat wl pode vata goods tlow cost Other costs, sucha eseuch and development, adversing, ales promotio, end Ply dtubution ae also moch lowe, opiate abs can generat higher profit margin. Reta ao develop exclave store brand a difeentate themes rom competitor, Many Prlcesenaive concer prefer sore bran ceria caer, These peer ive alert Freese barging power ih marketers of national ran Private bel or sore band shou be dinguied rom generic, Gene re unbande, ny package, les expensive verstans of emmon product sch paghet pape towel hd ‘rand pce They efor standard or ler quality ot pic that maybe at much 20 pce {a0 prcent owe than aatonally averted rans and 10 ecet 20 erent ower tan the ‘exiles peat bel brads: Thelawes price ism pos by lower-cost abing and pacha Ingand mini avetsng, and sometimes lowe quality ingredients, Generics canbe found vee rage offen products even medicines Generic Drugs Generic crugs have become tig business. Brandes up sales acunly cen oe rst nen 208, By making koclats aseand in ager uantes sels Tem as econ the word's bape eric cugmake wth eee ot $14, Pharma gant Novartis one fhe wares op he makes of branded gs, wa such successes as Doran for ght pesire and Gee for cara, uti as iso benme the words sz gest maka erercdgs flowing is acuson of Sanz, HEXAL, Eon Labs, and otets. Othe pharmaceutal ‘campaes such as Sant-Avents and laxoSmiKie Nave etre gear yar on te id Sates tut ‘emai mara East Epo, La Ane, ae aia, wer sone creer cana afd aversive brant. ae gs but wry bat curt cow quay gs. Tse consuner a wing gy atest sal perm foraduy backs by 2 ts company © Private-Label Success Factors Tn the contontation beteen rufus? aed pate power Beas sh pce ir sxc, many sopra: ‘area ating or acepting ee ean 9 cover he ‘os fling and wocking Reta ai charge a ‘pay par and instore averting pce. Tey pally ‘Bere prominent dy to theron brands and make ‘ute they ae well tock "Rear aeDng beer quay i he torn. Supemart etaes readag re nim stop tens ihe organi or ceting new prods witout competition, sch hee minatemsrowavablesack pss They aes emphasing tra nna packaging ‘Although ears ot re forthe sacs of pte bl, he rowing peer of ore bran ‘sab benef om the weakening of tonal Brande Many consumers have ecm ore Pit ‘stv nf the continue barrage of coupons td price sein ta aie ener des have become Sa ere! alt cae cnt“TATA” Marketing Insight Manufacturer's Response to the Private Label Threat To mala thr matopace por, ing brand martes aro Inet sitar RAD bir ctw ans, ne ets, fees, ard csty noroeneis oy as ahead the to trae Thay are a nesting in stong “pul” 20s peas to mana nigh canner brand recrretin and prtrece an ercame testa marketing adage that palates can Top trand seers sexing ar wth a mass ‘driers in a jot search for petal enone and compet ates tat produce savings fb sts. Cutig a umes) Cos lows pte tran coneard a pcs premium, mg an exied teva pectin of carsunes Unvery of Nath Ctl’ dar-onedet EM. Stonarp tne London Business Sctun's Naja Kura of or step reoonmesions er rulings ears clubs whee abs, + gh soci where manacturrs can win agaist pata labs art a er cera, eas, ad shal. ‘Mis pcaly were he rant oe ow theca 0 cecing apemismncha aston, Prd & Gant atoning 1 patios ot varius a such ss Suny Dele ee ste pean bt, ad Creo sarin np 0 Ht incentate on svengtening Hs 20+ brands wth mare tan olan ins, Parr fect by soking wri elatonships wth ees ‘though svg tt cole he ese’ patel eto Laur crea ou tans Anorean Bea, Ft, Good Sin, and Grasso exc fx Kh’ to hp there enor volun ard rte is more presto bands ne Broes: Marte sig teh ar cores sh as Ua al lhe irreasd sls yncg row utr wa hae ot pres ough band + tote iy th ne procs to ip beat rat bs. Carns acting inceneral new padi Kees the error trans es butt nus opal laser ew pots and pote tec posto bras Wr ut suber pate lanes ok es ans wera ret as mc as posible + Gast rg ae papastos by bung nts wth sybc nagar a5 woes ncn uty ta bests pate bes. “Too mary manuace ras have tote bls x ard emotes tte ta on rete uly ato, the ning valve propeston, mts nee to manitr rcng nd nau protest pr pre. ‘Sheen waren Rese er ‘Sei mle ees Sa ee Jonny 2 0 versa Sere we a 1 pecration to by on pie. Competing manutd tnd reall op and dupe ‘he quality and fetes ofthe bast brands in neo reducing phys product ferentiation Moreover by eating martin communication bad ome Bs have nae hare 0 ete ‘ny ingen in brad image A steady stream of brand exes nd ine exes fated brand entity ine and edt config amount of prodact paieration Bucking thee tens many manufctrer mations brands are Spting back. "Marketing Insight: Manatarster's Respond to the Prite Label Tet" dece the states ad ats ingen cmpete more lective with prt able Wholesaling ‘Whence al he activities in sling ood o sri t those wh buy for esl of snes int techs manicures and mer Benet ae engeged prin prod ‘on anditexlades reales. The major pes of whalers are deserbed in 62 Table 13. ‘Whole (ao ald disburar)difer from retailers ns numberof ways. Fest, whole slap les aston to pomtio, somber, and oetion Beate they are eng eit “sine estmers ater han al consumers. Second, woes asactons ae sal rg Shan rn ranactions, nd whalers sal coer age ade ate than eae. Thi he sovernment desist whalers and eat diferent ems of kl eulations and aes.MANAGING RETAILING, WHOLESALING, AND LoaisTICS | CHAPTER 15 at7 vane Ine Taya even ni se, rbd, i wp ous | "Fen wll ay strk nana soe, oe it ee ris oe | raener sare Woene carn pay Se ea ate | ove oon cary rr on scarps a otro Sardar apo a re ey. Uta sre lei: it ary sab ii nin Simalcatosictan ttweciarsod aoa’ sintaseontectn ss | Seams, pay sos x tetris Ges stone oka a) ‘Scouts uma hasan earn ee soc | ‘tos ftom gy le rd ewe Dey rls San, icc prey ya hp a eso | Recut uP ceyes ont ren con ea ras ar | coro cep ea ain seer cnn des ao | ala nw orc | "iran get abun a on on oes of 2p ta gone SSnpcate tetris wah weeny posine wre’ ype. Bey Soper tera enn yay ey eng mk | res, este overs, nxn broke. ger repre besser ona mae | pemarn tsi Most manuacures! agers sal buses felled salespeople: ‘Sng apne ve cot ahorty a rence’ ware cu prtaig ser ake pres ers ae afin eae, spc. varus, ant sp mersande, ‘Sms mactars ke ysl session of cs nd mga sae | Maqtacurrs’ and rtallr'branches and ofes: Wks operons cnt sles | oroyer tenets raer han braun ioperden wise Sr trance a oes are | shakes ocr. any reais eo pcr sin not nar cer. | Specialized wholesalers ruta aszmblers fy he apes cut of mary ams pet | usin and termina ence ouput may wel sn auton compares tao | ca aquent et, io dels ad oer uses. Why do manures ot sl dt to tle onl consimen? Why are whalers used staf Inger wheal ae mor eliiin performing one or more ofthe llwing actions “Selina promoting, Whole skes forces help manures each any eal bust est tomer a lately lowcost They have mote contac, an byes fen ts them or than they rasta distant mente + Buying and etriment building. Wholoses ate able st tems and build the aso ments thi tomers nec sng them conierabe work, + Balk breaking, Wholelers chew svng fr ti usomes by buying age ala lat nd behing the blk nto sale nits Warconsng. Wooler bol investor, thereby reducing ventory cost and rks “Tampertation,Whcalersin often provide quicker eer to buyers because hey are Svea the bayer Financing. Wholtlers nance customers by granting credit, and Gnance suppliers by onerng ea paying bills on ie + Mish bearing, Wholesalers sun some sk by aking le and bearing the cost of thet hangs soa, and obolexcene + Marke information Wholesaler sal information to supplies and customers resring onpettor cts, ew procs pie development and 090 Management services and counting, Wholeslers olen ep rears improve their ‘peratons by tring sles rk, eng with ore aout st dspays abl Sting wp ‘unig nd aventry-contol yee They may help ind cstomers by fering, ‘ening and ei sev‘Trends in Wholesaling © Wholesaler distributors have faced mounting pests i recent year rm new sources of competition, demanding cstomers, new tecologi, and more ier buying prora yage Indra uionar and seta buyers, Manufacturer major complains guint wholes re They dont ggrenivly promote the manufacturers prod! ie and they at more ike ‘onder takers they don't cary enough inventory and heeore don't il exstomes ofr st nog they dn’ supply the manlaturer ith po dae markt, custmer, and competitive Information; hey don't atzact ighalber manager to ring own thei own cos bd thy charg too much for this ‘Sty wholes avril tothe challenge and adapt ther series to mest tiple? nda estore chaning need: Tey recone tht hy tt ad ie othe chanel ‘ens, nl sans ne btm compe an compu OO tis, Kaas ‘5a supply chara arr fr mae tan 900 supers ad 125 000 orga xumant Imanfacurers, creat muff cormetcal istresough a ba natok 6 310 ctor nt courtesan toes. Wh ge cott manners buying more prts det tem supptrs, destin sich 3s ow re ong squad et, To beter care, ‘rons brace ais. eng oe ern anogHer prs ching stare, ‘and chi parang. Secs hepd quale Aw tre rie fv ers, and tho copay xproacod $15 bien nse n 2008. = Hy Arrow Electronics aror ecres aga prove of atu, “Whee have worked to ines ast productivity by managing vento andrecbles tater. Theyre als reducing operating cox by ivesing in moe adranced materia hanig ‘ecology informtion tens andthe lotrel hey improving the state dein ‘out argt ares, prodt seinen andere rice cmmunicaons and distin "Nersand Andesonftrvwed lang nde dtbutor denied four ways hey suenghened thee elioships wath manucarers 1. They sought ear agreement wih het masters abou ter expect functions inthe rmukting cane 2 They gained sight ino dhe manure esirementsy ving tr plans and sted Ingmulactre association convention sn rade show ‘Thy fled tes eomsnsitments tthe mance by mosting the volume args, pying ‘sls pomp, nd eding bck casomer information thelr menue 4 They denied and offered yal added erst th supple ‘The olealingndastryremin vlnabe tone oft ond eee resance to peice ices nd the winnoing oto sips as on cot aa uly. The tend oad ‘era nea, nich mantcrertrycontl or ova th item, tl trong Market Logisties Physical sesbuonstarts at the facory Manages choose asetof washout poi) and transportation is that wil delve the gods tial destinations inthe dase ae o a the Toy tl ont Phys dtbution har now been expe nt the onder concept of sappy hain management (SCM). Supply chain management starts lore pyle tation means strata procurig the ight inputs (mater omponents and epee, converting them fice no Sn prods snd dpa them othe fia estat “An ren broader penpetive looks st how the copays thers abian haps “The soppy hun especie can «company Went superior supplies and dsators and hep ther improne producti and reduce cons. Consumer gods mance amid for heir sop chin mangement dade PA, Kral General Mila Pepi, and Ness oe ‘worthy reales inde Walmart, Target Publ, Coen Kroger, an MeleMANAGING RETAILING, WHOLESALING, AND Logistics | cweTEN 1S 12 Fmeare sho striving tolmpove th vitonmealimpsctand sina oft in by svn hi carbon fort nd sng eye packaging Jobon Joon owiched ‘0 ore Sewadcp Coane (FSC)-crtBl pra forts BAND-AID brad boxes. A one ‘ect ees Tien & Jobnet opersting compan ae psn make pepe and chap proremen dein ht nd help inne sponsble est anit Market lots clades planing the infarct oma demand then implementing ond contol he physical ows of materi and Bl gods ome point origin to os oF ws ‘net custome olen at prof Markt logic planing hs ou sep 1. Destngon the company vale props tts castomes. (What onside sand ‘should we offer Wha eves chk we atin orders ad bing acute?) 2 Sdktng he best chanel devin and network strategy fr eching the customers, (Should the company set tomers Gest or thrgh needs’ What products shoud we usc on which manftrng ati? Ho many wazchose should we malta and where should elect the?) 2 Developing operational exclence in sls forcing, warehouse management transport ‘ion mangement snd tris management 44 Implementing aan thie estntoemaion sens upc, pices and proces Staying mart lots eds manages to find the mast ecient way to diver value. For xampleatofoare company might tadtonal price and package sofware dik and mans, ‘hip then to holler, ic ship thers totale, wich sel then fo aso ho bring. {hem home to download onthe PCs Math! lng offers wo nero dtvery stems. The Fate th cstomerdowslead ihe soiree ento ht or her computer. The sean allows the compet manufac to dowalond the sofware onto is prc, Bath ston innate the ned for printing packaging hipping and tckng milo of sand mans Integrated Logisties Systems Thematic cls inogee lage) ich ne atom Semen alow yee a sel ion sel nfm thology 1Slnmaion sens ply ciel lin manegig sucht lg, pec va compu, point as trmindy norm product ber ede se ing ct a rhage {ibis deo an ani (EF), ee decopment are shred the ode Sine devel or, ecto, nd pve pore cnr af operins They ‘rs compan to roma "ihe pot wl Best ck 0 toro” aad cron that rai Pints gic ecompa se sts The isk reciting te ofc thc company hee ron pees and trey kc reaction ps nde {heme he pcan dperitet mt onde The ti are oe noon {Saupe coer tings, al sed seater every Ra ae {Me comertd into ished gd Fn ventry eek teen ante res Sn mamuctring at Cros enc ro wes Be ods ety ean Suturing cy bi yp Fait gots ow of he sc nea pus gh ‘clay inant washing. spping-toom procs outowndsanrporaon, Bd Tag and ccna daey nf tei Watch name srr se her of rat gic ich an out tpminth 30 cto he rod on Ie US psy one aa oF “in aft 8 erat 0 prt pe pd ong $2 ton sanyo ei ‘ith poser tae So Sop lela ce ct ed apy cn nd eed ‘Sut thes of apie oxo man of rd pa Wes ag ‘Sesupematet chan cts by snes ling oer 830 liad cian 0 oon arate es impinge son tes eon, st 2 enrol od ey act poor seperti, snd poeanginastcte Mayer cl arog the at er ct conor an ens dtr mined ong sone tot ofthe tesa eared 1 poet {Us GDP, 20 th arf dropped tao 10 pee Lower are ogi con Sipe lower pestis ptm or bth though hc ak age scant igh wel ped pop con rapt ol compete ngMany sare embracing lean manfaturing orgy pioneered by Japanese ms sch as ‘Toros to produce gods with minima ase of ne, materia, ad money Le mansctring ‘mam be implemented thought and monte cls. Toye cet ei in prod sy tha rented in ertemive proc cal hs ben fired in ut othe facta some ape of the lean manuficuringapptoad>—lininting evap by sing common pars ein cou ipl prof ine ad edcing te mambo eps a prone prin att aan ‘kee when qusiy-onrol sues ase Market-Logisties Objectives Many companies ute thi mattis obj eing he ht aot the ih ow oe ons ye ea ot Catenin de fete feoio tue peek ‘ian No ten cn dno macnn we tad minnie ato {Sat Mason cron sre npr gives eum eprom ‘riche al chic ir marie gate ‘orci cmpany alee mar ots cney by ekng exch mate ois manaer taining cone Mate gut cn nent and wee eae ‘nel ores 1 The rl manager oor shipment vers shpment cae rl cnt es, Homeves, ees the rari arse a shipment es up working ctl longer, dys tet payset and might cause castes oy frm compton who ofl ater serie. + Theskipping depart oe chesp container to minima shipping cn Cheyper contin: erlang tof ama ode nd custome il +The inventory manag ioe fw ventric. This incase taku, bak ores paper or sei prodocton un and hih- wrong “The ultmate answer ocanyingnt-z entry to ba for order, na fr tock Sony «ast SOMO, "Sel one me one” Del's inventory sate for er at been ge te it ‘omer onde copter and py fr itis advance. Then Dell te the cstomer's money 0 suppliers to ship the ncsary component slang ax cuter do not net the em ed tly everyone ean sve money Some etaler ae loading excess inventory om ay whee by uti ut te tadionl ido midleman, hey exe 6 oH cents onthe dol opposed to IDcent.® TRANSPORTATION Transporation choice act product png on-time dvey pe foxmance andthe condition oh good when they artvl of whch ait tomer ston, Inshippng gonds ot ares desler and eastomers the company cn choose, tual watery, pipeline. Shipper conidr mach criteria aspen, depend, ‘aaby, ava tracey, and co or ped, ra and tk ae the pie contend {be gal lw cos then the oc ister or pipe ‘Shippers ze increaingly combining tw or mor nspotation mode, thank to conti ‘ation Containerization ins of pting the godin Bots ote are yo rer ‘ecwen two trnsportion modes Ppa esrb the we of alla Wack yack ter and tracks ain, water and al ahd rr alr and ad Ech coordinated mode ors ‘Specie advantages For empl pggbuck cheaper lan teching alone ye provide exity Shippers can choose pte, conto common ase the shipper oma ito rc ‘ov ir ett becomes print ca. conta air independant oration sing Predetermined pot on schedsed bass andi ase all shippers standard “oreduer oy handing areal sme ms are puting tes no sel ey Pckaging > they dn’ need tobe unpacked fom abo an placed ona el nity. ure PAG ass | he elo stem to ached dle of at and low-moving ods bulky ead ‘Seal ems in the ont ent wy redace damagein shiping, the ne, welt ely of thet must be elted in the cating eshniq usd the nay ofa ching ee” Organizational Lessons Maret ager mt be dere fom bun ag er han se cont >Zara Spain's Zara has become Europe's leading apparel ‘etal, proving consumers wit curent, high fashion ‘yas at reasonable prices. With over $8.7 bilon in sles land more than 1,500 stores, the company's auccees has ‘come from breaking vitusly every tradonal rl in to retaling industry The fist Zara store opened in 1975, By the 1880s, Zara's founder, Amancio Ortega, was werking with Computer programmes to develop a new dstbution ‘model that woud revolutoniza the clothing incstny, ‘This new moda takes several statogle sts to reduce tha lead time fom design to cstrauton to [ust two \woas—a sgnticans dflrence fom the nau average Of sito nine ments. As rut, the company makes ‘pproxmatoy 20,000 dren ems a year about le ‘hal Gap or HM mskeina yar, By reducing eatimesto 2 racton ofits compotitrs, Zara has been abot provide “at fasion ors Consurers at aordaole peas. The company’ sucoeas lee wth four ky statage elements: Design and Production. Zara employs runceeds ‘of designers atts headquaror in Spain. Thus, ett ables are constant being crosted ee pt Into production whe othors ae tweaked wth raw Colors or patterns. The frm enor the speed at which it puts those Gags into production by lcating hats production fei nearby Spain, Portugal, and Morooco. Zara produces ony ‘smal quatiy f each colecton ands wling to ‘xporence occasional shortages to preserve an image of ext. Clthes with alonger shat Ho, ke Tits, are cutscurced to lower-cost suppl in Asia red Tukey. With tight corte on ts ‘manufacturing process, Zara can move more p\dh Takke @ postion: Manufactures should fel feo to ell pate labels asa source of revenue versus National man Utactuers should never got involved wth private abel Marketing Discussion Retail Customer Loyalty ‘Think of your favorte stores. What do they do that fencourages your loyalty? What do you Ike about the store experience? What rer Improvements cou thy make? ‘han any ofits compstors and continues to deve tes sve tots stores ovary wosk Lagistes. Zara dstrbute alls merchandise, rogardess Of origin, tom Spain. is dstrbution process ¢ designed so that he time rom receipt of {an order to dlvery inthe store averages 24 hours in rope ancl 48 ours nthe United Sates and Aa, Having 60 pacent of ts precucton facies nearby Iskey to the success of this mod l Zara stores rmoaive new shigments twice a week, andthe smal ‘uanttes ofeach colton not ony brig consumers back nto Zara stores ovr and over ut ako tion thom to make purchases more qui Wri an _everage shopperin Span vats ahigh soot or main ‘tet sto three times a year, shoppers average 17 ps to Zara stores. Some Zara fans know exactly when new shipments aie and show up eat hat ay 0. heft line for tho latest tashone, “Taso practices keap ses strong thoughout he yea’ and help the company se more products at {ul pice—85 percent of ts merchandse wrsus the Incisty average of 60 percent. CGstomes. Eventing revokes around Zara custom fo. The ear ract a customers charging need trends, and tastes with daly reper rom Zara shop managers about wich products an sys Fave sold tnd nth havent. With upto 70 poent of at sal "es coming fem commission, managers have a 80 "Reentve o stay on op of tings. Zara’ designers dont Fa to pret what fasion vende val be ue. “They ea fo customer eda —goed and bac— di something fle, te nos wthawn remeioy ara cuss ossos an the impact isin sto ‘he ow quanites of each syle prod, Stores.Zara has never run an advertising campaign ‘The stores, 80 percent of which towns, ae the key advertsing olomnt ard ae lecated in prestiious gti locations aroun the world. Zara spendsMANAGING RETAILING, WHOLESALING, AND LoaisTiCS ‘Signifcart time an eto regulary changing store ‘werdons to ep customers In comparison to (ther retalrs, which spend percent to 4 percont ff reerves on big bxad-bukng campaigns, Za spends ust 0.3 percnt “The company’s success comes rom having completa contol over all the parts ofits businoss—cesign, production, and dstbution, Lous Vutio's fashion ‘rector, Dane! Piette, described Zara a "poset the ‘most innovative and devastating real in the wo.” Now, a8 Zara contruos to expand into now rrarkats and courtiers losing some ofits speed and wil have {to work hard to contnue proving the same "nevness” fal ver the word that tee so wat in Europa, also ‘making @ somewhat beled major push onine tat vil need to work within is sing busiwss modo, Questions 1. Would Zara's model work for other retalers? Why or yet? 2. How's Zara going to expand suncestly al ovr the ‘wei ith samo oval of spond and instant ation? ‘Seuss nner Aun oe (Sewn newt a yc ees ‘Rowan enews ne Someones ha Sean rah Excellence >>Best Buy ‘est Buy isthe words largest consumer electrics rela, with 8942 bilon i sls n fscal 2008, Sales ‘Doomed in the 1960s as Best Su expanded natonay and made some risky business desions, tke puting 1s sales staff on salary insted of commission pay. Ths ‘ection created a more consumer ancy, a pessu0 Shopeing atmesphore and resutod In an instar sks in overall reveruns. Inthe 1000s, Best Suy ramped Up its compute product ofeings and, by 1885, was the Digest sole of home PCs, a poweril postion during {he vretbcom ‘At tho tun of the centuy, Best Buy faced now competitors ike Costco and Weimar, which stated Famping up thelr electronics. dvsions and product Oferngs. Best Puy belied the best ay to aifeerto toa was to crease its focus on customer sonic by alr product werantss and offing personal saves tke etalon and at-home dvr. tspurchase of Gock ‘Squad a 24-nour computer sevice company, proved fextemely poftebie and siaogic as home and smal bce nelwerks became more complex and the need {or pasonal computing atenton ereased. By 2004, Bet Buy had paced 8 Gook Squad saton In each of its sero, roving consuers wy personal comput senicesin tho stores, oni, onthe phone, and at home. “Today, Bost Buy has adopted 2 corporate strateny it cals Clsterer Cent. has sogmented ts broad customer base toa Paral of spect targets such a5 ths afurt tech geek, the busy suburban mom, the young gadget enthusiast, and the price-concius fam Wy ded. New, uses exterave esearch ard analysis fo dlterine which segments ao the mest abundant and Irate roach markt aly, congue ts stores ‘and tana ls employees to target those shoppers and {courage them to keep coming back again and again. For example, siores targeting affluent tech geeks have seperate home theatre departments with knonledgeable alepeope who can spend tine discussing all the de Gent procul options. Stores wih a igh vue of sub ‘ban mam shoppers offer personal shopping assistants to halp mom get and out as quickly as possi wth the ‘exact tems she needs ‘Sometimes a store wil experience a new type of lucrative shopper. nthe coastal tovn of Baytown, Texas, the local Bost Buy observed frequent vist from Eastern European workers coming of cargo ships and al ankors. “These men and women wero ust thi precious ree te {orave over to Best Buy and search the css for Apol's ‘Pode and apope, wtih are cheaper no United Sates ‘han in Europe To cater to this unique conser, the local ‘Best Buy rearanged its store, moved iPods, MacBooks, ‘and thar accessories om the back ofthe store to the ‘font, and added signage in simp Englsh. Tho recut sas from these Euopaan worker increased 67 percent This local ingenuity paired with the ably to calsr to oach market and sogment’s noods have helped Best Buy sunive the dectonics storm while competes ike CGorGUSA and Crit Cry have fad, Tho business is ‘ough, with tin oft margins and coninuousy evoing products. However, with over 1,900 stores, including Iecatians in Canada, Mac, Cina and Turkey, Best Buy has a 19 percent make share and a tsted, consumer ‘tency brand Questions 1. What are the keys to Best Buy's sucess? What are the isks going ferward? 2, How ose can Best Buy compete aginst new com- pettrs ke Walmart anc arine companies?