End of Semester 1, 2019

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MKTG3007 Retail Marketing and Distribution
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School of Marketing

EXAMINATION
End of Semester 1, 2019

MKTG3007 Retail Marketing and Distribution

This paper is for Bentley Campus, Bentley Campus (External), Miri Sarawak Campus and Singapore
students

This is a CLOSED BOOK examination

Examination paper IS NOT to be released to student

Examination Duration 2 hours

For Examiner Use Only
Reading Time 10 minutes
Q Mark
Students may write notes in the margins of the exam paper during reading time
1

Total Marks 35 2

Supplied by the University 3

4
1 x 16 page answer book
5
Supplied by the Student
6
Materials
7
None
8
Calculator
9

A non-programmable calculator is permitted in this exam 10

Instructions to Students 11

12

13

14

15

16

17

18
Examination Cover Sheet

Total ________
 End of Semester 1, 2019
MKTG3007 Retail Marketing and Distribution

SECTION A: Case study (5 Marks for each question = 15 Marks)

Case study: Envision the future

Note: Following are findings from a study encompassing an industrywide retailer survey and
interviews by Meridian-NorthStar Partners and Progressive Grocer; a similar supplier survey and
interviews; a Web-based survey of 1,000 shoppers across age groups by Carbonview Research, a
division of Stagnito Business Information + Edgell Communications; a review of industry learning;
and incorporation of "real-world" in-market experience.

Winning in today's environment demands more, given the blurring of channels, both
physical and virtual; the need to focus on not just consumer needs but also shopper
needs; the retailers' needs to address these in a compelling way; and a shift in the
industry's perceived “moment of truth”, from when a shopper is in front of a shelf with
products to a much earlier point when the shopper considers which channel/retailer
to shop.

The 2Es are critical today as differentiators – to excite and engage shoppers, and
address the retailer need for a differentiated image and relevance. Excitement:
When shoppers walk by a section of the store, does it create a “wow”? An emotional
connection? Does it make them need to enter and check it out? Does it provide a
compelling alternative to specialty outlets? Engagement: The tactic of promotion
focuses on communication to the shopper, but engagement focuses on dialog
originating from the shopper. To compete with restaurant takeout, for example,
where shoppers often use a mobile device to call ahead, is the same option available
for your prepared food section? With other sections of the store, is there opportunity
for dialogue before, in, and after the store?

Only 50 percent of shoppers indicated that they're “fully or pretty loyal” to their
primary grocery store; only 51 percent said that they have "high or somewhat high
enjoyment" in the shopping experience; 41 percent said that it's “not organized to the
way I shop”; and 30 percent said “I don't think they focus on shopper needs when
organizing products”. The 2Es have the potential to change the game. The "treasure
hunt" of club stores and the “fun/excitement” in many specialty stores, noted in
various studies, provide a helpful reference point. In our study, more than three
quarters of shoppers indicated that they'd be likely to shift “back” to their regular
store if it offered a more engaging shopping experience.

In a very different business environment, it's also instructive to revisit industry “truths”
in two areas. The first is perceptions of the perimeter and the centre store. The
perimeter has unique elements, but also several others that can be broadly applied,
such as category integration, visual appeal, information/news, “stations”, and more.

The second is perception of a “common look” across the store. “Common look can
be more weakness than strength”, another retailer asserted. “Why should the pet
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 End of Semester 1, 2019
MKTG3007 Retail Marketing and Distribution

aisle look the same as household cleaning or snacks? These sections need to
connect with shoppers, not just provide products. A pet is a family member.
Beverages provide purity, variety, enjoyment”. Creating a more exciting, engaging
retail experience must take a broader approach than trying to solve centre store
problems with centre store tactics, or maintaining a common look across the store.

Look at a top-five grocery retailer to illustrate certain opportunities, but observations

and implications also apply to other channels. The store has a typical perimeter, and
the centre store has 24 aisles. There's a numbered sign at the end of each aisle that
lists seven to eight product types found in that aisle, or almost 200 categories. Signs
are the same shape and colour, and aisles generally use the same “fixturing” and
other elements. Certain product types (e.g., beverages) occupy three entire aisles,
but aren't next to one another. Other product types (e.g., pet, general merchandise)
are typically their own aisles. End-aisle displays are used, often for items that
typically don't align with the product types stocked in the aisles adjacent to them.

Questions: Answer ALL 3 questions

1. Explain why the 2Es are so important for forward looking retail planning. (5
marks)

2. As a shopper, do you want the retailer to engage with you? Based on your
answer, what should the retailer do to cultivate your continuing business? (5
marks)

3. What are the pros and cons of a supermarket radically redesigning its store
interior and layout? (5 marks)

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MKTG3007 Retail Marketing and Distribution

SECTION B: Short answer questions

Answer any 2 questions (10 Marks each = 20 Marks)

Question 1

(a) Describe the greatest similarities and differences in the organization

structures of small independents, chain retailers, and diversified retailers. (5
marks)

(b) If you were a retail store manager, what steps might you take to empower
your workers? (5 marks)

Question 2

(a) What is the purpose of experiential merchandising, and where would you see
it? (5 marks)

(b) Why is it sometimes difficult for a retailer to convey its image to consumers?
Give an example of a restaurant with a fuzzy image. (5 marks)

Question 3

(a) What is trading-area overlap? Are there any advantages to a chain retailer’s
having some overlap among its various stores? Why or why not? (5 marks)

(b) How could a parasite store increase the size of its trading area? (5 marks)

Question 4

(a) Distinguish between market skimming and market penetration, and provide
examples of each. (5 marks)

(b) Why is it important for retailers to understand the concept of price elasticity
even if they are unable to compute it? (5 marks)

END OF EXAMINATION

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