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Thus he is a merchant middleman between the wholesaler and the consumer. The basic feature of the retail trade is that the retailer purchases the goods from a wholesaler and resells them in small quantities to different consumers. The retailer studies the requirements of the consumers, their likes and dislikes and accordingly stocks or replenishes the goods in his shop. He pays personal attention to customers, pleases them in many respects and is also very polite relative to other members of the distribution channel. It is the retailers who have to stick to the principle of right goods, right quality, right quantity, etc with a prompt after-sales service. Prompt and proper service to customers is the meaning in brief to retailing
1.1a Retailing
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store or kiosk, or by post, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery.
Purchasers may be individuals or businesses. In commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or mall, but are mostly found in the central business district. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. In the U.S., retailers often provided boardwalks in front of their stores to protect customers from the mud. Online retailing, also known as ecommerce is the latest form of non-shop retailing (cf. mail order). Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase.
1.1b Retail pricing The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount (or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.
1.1c Retail Services Behind the scenes at retail there is another factor at work. Coporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nation's largest retailers spend millions every year on instore marketing programs that correspond to season and promotional changes. As products change, so will a retail landscape. 1.1d Etymology Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring". Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small quantities of items.
Non-traditional exterior of a super target store. Los Angels- USA. Local shops can be known as brick and mortar stores in the United States. Many shops are part of a chain: a number of similar shops with the same name selling the same products in different locations. The shops may be owned by one company, or there may be a franchising company that has franchising agreements with the shop owners (see also restaurant chain) Some shops sell second-hand goods. In other cases, especially in the case of a nonprofit shop, the public donates goods to the shop to be sold (see also thrift store). In give-away shops goods can be taken for free. There are also 'consignment' shops, which are where a person can place an item in a store, and if it sells the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers. The term retailer is also applied where a service provider services the needs of a large number of individuals, such as with telephone or electric power.
One of the theories is the Wheel of retailing. This theory states that new types of retailers appear /enter the market as low status, low margin and low price operators. This is the entry phase and allows the retailers to compete effectively and take market share away from more traditional retailers. These new retailers gradually acquire more sophisticated and elaborate facilities as they meet with success, thereby becoming less efficient in the trading phase. This results in higher operating costs and investments. Hence they will raise prices and margins as they are entering the vulnerable phase. In the process they become vulnerable to the new low price, low margin new retailers. This appears to be the case with many outlet malls. Also the imperfect merchandise of the manufacturers or excess merchandise of the manufacturers cause extra expenditure for the retailer to make things more attractive with fancy lighting and whatnotgenerous return policies, private dressing room etc. . Now as an intermediary the retailer has to forge his own marketing strategy. Some retailers exercise dominance on the manufactures while others employ strategic marketing plans and sophisticated tools for effective retail management. All depend on the nature of product, demand, consumers behavior, market segmentation etc. They even measure performance more on return on investment basis than on profit-margin basis.
The word retail is derived from the French word retaillier meaning cut a piece off or break the bulk. It simply means first hand transaction with the customer. It is actually a direct interface with the customer and coordination of activities right from the concept and design of a product till it is delivered to the end consumer followed by the post delivery services to the customer. The retail industry has contributed a lot to the economic progress of many countries and has created a large potential for employment. Retailing concept of course is undergoing fast changes today.
Retailing is an important part of marketing and the marketing mix consists of elements like product, place, price, people, presentation and promotion. Place represents distribution and in retailing it is the different locations of the store where products are available. Normally for any manufacturer selling through intermediaries, it is the retailer who introduces the product to the customer. Organizations sell their services and products through the retail outlets and get feed back on the performance of the products and customers expectations and suggestions from or through the retailers only.
General description
EVEA (Estonian Association of SME-s) is a non-governmental, nonprofit association of SME-s and self-employed performing a representative, advocacy and lobbying function for small and mediumsized businesses as a social group. The main goal of EVEA is to create a favourable entrepreneurial environment in Estonia as the basis for economic growth and social stability. Serving as an interface between the Estonian SME community from one side and the policy decision-makers, international organisations and various social partners from the other side, EVEA provides information about the situation in the SME sector, its problems, economic legislation, business opportunities and business-related infrastructure in Estonia. EVEA membership is open to any Estonian SME and currently includes 180 companies and self-employed. Most of the members are businesses with less than 50 employees.
EVEA activities in the frames of the RENET project are focussed on the South-Estonian area, which covers five counties. This part of Estonia is chosen due to the fact that that area is problematic in the Estonian state equilibrated development model. Nevertheless the territory of Estonia has small enterprises and incomes differ in regions in industrial regions in North- and Northeast Estonia income and salaries are higher, purchase capacity is bigger, and population density is higher than in the agriculture and forestry regions in South-Estonia. The attraction centre for the people from South-Estonia is the city of Tartu with 100,000 inhabitants, where the development model for the year 2030 is being worked out. The vision of Tartu 2030: The city of active, creative and happy people Tartu is the intellectual capital of Estonia and the centre for promoting development in the whole of Southern Estonia: it is a university town with traditions, a city of youth where creativeness and open reasoning support development activity and innovation in enterpreneurship; a city with modern urban environment, safe, developing sustainable way of life and an actively cooperating Estonian city.
1.2d Planned RENET related activities The second aim after the study is carried through to involve councillors of all five counties in October 2007 into the retail network development prognostication development for planning together ways of retail development. They should take into consideration the presumed area specific problems of South-Estonia as a partitioned landscape, thinly populated area etc. Third aim was to form a representative organization with an own visual identity and Internet homepage for better solving problems standing between retailers of SouthEstonia. That representative organisation, the Association of Small Retailers and Service Providers NGO (MT VKTL) was established in 2006 and officially registered in March 2007. The development of the association will go on in three directions.
1.2.e RETAIL INDUSTRY TRANSFORMATION India has emerged as the most attractive destination for retailers in 2007. According to the latest AT Kearney study, for the third year in a row, India leads the annual list of most attractive emerging markets for retail investment followed by Russia and China. Retail has proved to be one of India's largest industries, and has presently emerged as one of the most dynamic and fast paced industries with multitude of players entering the market. Accounting for over 10 % of the country's GDP and around 8% of the employment retailing in India is gradually inching its way towards becoming the next boom industry.
DECISIONS
As retail is evolving, so are the relationships between marketers and the companies helping them to leverage the medium. Project based relationships are giving way to strategic relationships that are broader in scope, longer term in nature and evaluated on the basis of defined and measurable performance goals. These strategic relationships are helping marketers to respond to the pressure to more effectively create, manage and continuously improve their retail programs. To understand why, it is important to understand the factors that are necessitating the change to the client/supplier relationship; (1) the growth and importance of the retail medium, and (2), incessant bottom line pressure.
1.3 a
Never before has the importance of the in-store environment been so elevated in the minds of brand marketers and retailers. The proliferation of communications channels has diluted the ability of traditional media to hit the target, bringing increasing attention on the retail store as the surest point of contact. Growing recognition by retailers that they themselves are a brand has raised awareness of the need to manage and distinguish their environments and the experience of shopping within their stores. Brand companies are looking to the in-store environment as a more important and integral component in their marketing mix. Brand equity is becoming the last vestige of competitive advantage and brand marketers are recognizing the retail store as a point of tangible contact between their brand and their target consumer. There is increasing emphasis on the creation of in-store programs that deliver a more fulfilling brand experience.
A long term strategic supplier is in a better position to identify cost saving opportunities than a one-program supplier. A partner with a view of the total supply chain can respond to the expectation to optimize efficiencies and to continuously improve processes, where a supplier given only a limited view of specific activities can not. Within the context of a defined partnership, speed to market is accelerated as the learning curve is diminished and the impact of awkward hand-offs is eliminated. Finally, a marketers internal capacity is improved, as a streamlined process allows them to focus on their core business while their partners focus on the creation and management of their retail presence. Retail is changing for the better. One shot deals no longer make economic sense, and activities can no longer be viewed in isolation. Building a retail presence requires planning and collaboration, and managing profitability requires a long term view. As the relationships between marketers and their agencies improve, so will the potential of retail as a high performance marketing tool. The retail environment offers a great deal of customer convenience in so far as it tries to provide for consumer needs precisely and on time throughout the country. It is a vital element in triggering consumer spends. The growth in retailing will generate tremendous employment opportunities for both professionals and non-professionals- say in different levels. In fact maximum number of people with most minimum qualifications can be employed in the front line operations. Of course a bit of training will be an added advantage
A many fold effect on GDP is possible because of retailing. It first of all generates employment directly and indirectly through supply chain. The outsourcing by retailers can contribute to the growth of many small and medium industries. The contribution of retailers to tiny and cottage industries along with huge industries is astonishing.Organised retailing can bring about a telling change in the supply chain of agriculture and other rural products. Retailing can remove inefficiencies in the distribution of consumer goods. A well organized retail store can give better products, variety of products, better ambience and convenience, better prices or competitive pricesall at the same time. It gives an overall satisfaction to the customer or his family and friends who visit the store. While we attach so much importance to organized retailing, opening the doors to international giants directly or indirectly, it should not be at the cost of local family run small retail set-ups or the kirana shops. However we have to adopt to the new system for providing convenience and economy to customers and also to meet their changing needs and behaviors.
In organized sector retailing is very highly customer centric, with continuous thrust on innovations in products, designs, services, benefits, processes, store planning modifications, categorizations, displacement and replacement to break monotony, pleasant ambience, better and more beneficial application of IT, more convenient methods and processes for customer retention as well as relations etc Organized retailing strongly believes that customer is the king and hence the necessity for user friendly application of internet, intranet, web ,erp, tracking, data ware housing etc. all professionalized. The nuclear families are on the increase, working women are on the increase, increased pressure of work for men and women inadequacy of time for commuting, backlog or overload of work etc has all forced priority to convenience and speed for consumers in developing countries including India. People wanted an easy access to goods and also to get everything under one roof. This has offered an excellent opportunity for retail business to become more and more organized. Inspite of the huge potential for growth, the Indian retail business in organized sector forms around 2% only. In fact a recent survey shows that most modern stores account for only about 0.6% There are at least two major factors that the growth of organized Indian retail market- lower prices and the benefits hitherto not obtained. Economies of scale are the major contributor for this. The retail business in India in 2000 is around Rs. 400,000 crores .But it is around 10,000 crores in 2007. This pace of growth is phenomenal supported by a one billion population consisting of 30% of BPL and 70% 0f paltry income holders. The contribution of organized sector was Rs 20,000 crores in the year 2000 and it is Rs.200000 crore in 2007.( report of CMIE). The organized sector has attracted many gigantic foreign retailers like Marks and Spencer, Samsonite, Wallmart, KFC, Macdonalds, Campell, Dominos. Goenkas, Swarovsky etc. Also TATA, BIRLA, RELIANCE, PIRAMAL etc have greatly invested in most professional retailing. The Indian mind is fast catching the value for money concept and this is an impetus to retail growth in an organized way. Big bazaar, Subhikha, Margin free, more etc is the evidence for such expansion.
1.6.2. UNORGANIZED SECTOR India is an example for unorganized sector of retail trade. It is estimated that there are about 14 million retail outlets of various sizes and formats in India. About 96% of the retail outlets have less than 500 sq.ft. size. The per capita retail space in India is 2 sq.ft. whereas it is 18 sq.ft. in US. It can be commented that India has the lowest per capita retail space in the world. (Kurt salmon associates). India has an average 10 outlets for every 1000 people. Thus India has the largest number of retail outlets and they contribute to 96% of the retail sales. These retail outlets are all independent. Most of the stores are kirana shops, family owned shops, single man shop, portable shops on carts or bicycles, door to door manual carriers etc. not providing much values and benefits to customers. Most of the shops sold whatever they had than marketing what the consumers wanted at a reasonable price, place and time. Retail and whole sale took place weekly or bimonthly both in rural and urban areas even today, that too at particular places only earmarked for that purpose. Limited choice was a big hurdle in unorganized retailing. The quality, durability, value for money, replacement, buys back arrangement, modifications, goods return etc were simply impossible in unorganized retailing.
2.2 b The Indian Retail Scenario The Charm of Novelty battles it out with the Charm of Simplicity
So now our metros are definitely getting overcrowded with new retail formats. If all of India has a 3-4% organized retail percentage figure in metros, its probably close to 30-40% (or more). Grocery, Apparel, Books & Music, now even Medicines, are now all seeing huge sales via the spanking new stores (they used to be called shops when they were mom and pop now you cant call them anything but stores J ). But I think the phenomenon that has overwhelmed us Indians is the mallification of our metros.
In fact, when Crossroads, one of the very first malls in Mumbai, India; was opened, the crowds became so unmanageable that they had to restrict entry --- only people with cell phones (in those days, mobile penetration was much lower than it is now) were allowed in
I actually love these malls I like to window shop as much as the next person, I think the lesser crowded malls make for nice weekend jaunts for the kids where you combine your necessity shopping with fun and food. Every major retailer is gunning for a scale that gives them sleepless nights
The important trend today is that retailers decide the type of products, categorization, services to be rendered, differentiation of services, the very format etc. These are the super markets, departmental stores and specialty stores. The next important trend is the retailers carve a niche for themselves, become a specialist product category, unusual services followed by strategic pricing. This differentiation results in intensified competition for products and services. The offer becomes standardized and price becomes the most significant selling point. This ends up in the formation of the so called discount stores. The next trend is the formation of hyper markets when a wide variety of goods and services are offered at the most competitive prices. Of course they normally lack product depth and extra services. Apart from the above consumers are also influenced by factors like migration of formats, cross-border movement and mergers and acquisitions of firms. By migration of formats what is meant is that many retailers are adopting formats of super markets, hyper markets, departmental stores, mail order stores, telemarketers, web-enabled marketers etc. Thus Tesco in Briton operates super markets, hyper markets, neighbourhood stores, convenient stores, departmental stores, mail order stores etc. These are applicable to many retailers like Bata stores, Spencers, More, Reliance etc.
Frequent leisure time shoppers spend an average of $113.33 per shopping trip, making this segment of consumers one of most profitable and informed. According to Anne Howe, SVP, Market Intelligence & Insights at MARS, frequent leisure time shoppers, "are more relaxed and have either researched their planned purchases online or rely on instore personnel or point-of-sale material as information sources before purchasing."
Average Age -- 31 Want to relax and get away from the house -- 61.3% Bought apparel on last leisure shopping trip -- 40.2% Made Purchases at Discount Stores -- 32.0% Have cell phones -- 86.0% Have text messaging on their cell phone -- 56.0% Wander up and down aisles when leisure shopping -- 38.0%
Providing an informative and engaging in-store environment could result in incremental sales from this shopper segment," Howe suggested. "This shopper is way more likely to respond to a myriad of in-store influencers, and not as likely to say that traditional media messages are influencing their purchase behavior. This is good news for marketers who have been using effective in-store messaging as part of promotion programs. And it reinforces the message to retailers that consumers are looking at more than price while in the aisles." The following references are given so that you may go to those web-sites and get more information on latest retail trends
"A number of trends are continuing and intensifying some that dramatically affect the way we think, live, and shop," Wesely-Clough says. "Of course, countertrends emerge, preventing society from becoming static, although a culture may share an overriding belief that directs its path democracy, for example, which carries with it freedoms to be, do, have and express. And those freedoms offer lots of opportunity for people to jump on bandwagons."
The second presentation, "Olfaction and the Retailing Environment" (Terence A. Shimp, Pam Scholder Ellen and Paula Fitzgerald Bone), gave examples of how olfactory stimuli are being used in the retail environment, along with a discussion of the theoretical explanations for the observed effects of such stimuli. The primary response to olfactory stimuli was said to be approach/avoidance behavior. Evidence was presented that olfactory stimuli have the potential to attract attention and motivate processing, enhance mood states, and affect salesperson/customer interactions. Potential moderators and mediators of olfactory effects were also discussed.
The final presentation, "The Impact of Atmospheric Music and Retail Density on Retail Crowding Perceptions and Their Consequences: Does Song Augment the Throng?" (Karen A. Machleit, James J. Kellaris and Sevgin A. Eroglu), discussed the results of a laboratory experiment which manipulated both retail density and music loudness. The results indicated that both loudness of music and customer density increase subjects' perceptions of retail crowding; however, these independent variables did not directly affect other customer responses. Rather, outcome responses such as the feelings experienced while shopping and store satisfaction are influenced by the level of crowding experienced by the shopper.
The session discussant, Meryl P. Gardner, provided insightful comments with respect to all three presentations. Of particular note was her observation that retailers make store changes on a number of dimensions and then measure the impact on variables such as store traffic patterns and sales. To contrast, academic researchers study only one or two aspects of the environment at a time, often in artificial settings which, unfortunately, is the only realistic option available to most researchers.
In conclusion, this session intended to contribute to consumer research by identifying opportunities for research in the area of person-environment relationships in marketing contexts. Although practitioners and environmental psychologists have long been aware of the impact of environmental stimuli on human behavior, consumer research has lagged behind in this field
Shari Waters
Shari Waters began her journey in retail more than 25 years ago when she agreed to work Saturdays in a sporting goods store for a family friend. Since then, she has worked her way up through the retail ranks from sales clerk to store manager, on to shop owner.
Experience
Shari's background includes working in various sectors of the retail industry and her roles have ranged from cashier to store manager. She has participated as a member of several retail round-table discussions with the National Association of College Stores and served as an officer of the Marketing/Management Advisory Committee at Ogeechee Technical College. Besides operating the specialty retail business she and her husband began, Shari also works as a freelance writer and consultant for other retailers and small-business startups.
1. Dirty Bathrooms
This customer pet peeve clearly deserves the number one spot on this list. Retail store restrooms should always be sparkling clean, whether they are open for public use or not. Make sure to stock the bathrooms with plenty of paper products, soap, trash receptacles and clean it daily. 2. Messy Dressing Rooms Keeping the dressing room area free of discarded hangers, tags and empty packaging goes beyond creating a neat store appearance, it is also a good step towards loss prevention. Take a quick look for out of place items after each customer uses the dressing room. 3. Loud Music Playing music in a retail store can help create a certain atmosphere for our shoppers. Music that is too loud, inappropriate or of poor quality can run a positive shopping experience.
4. Handwritten Signs In this era of technology, there is no excuse for displaying handwritten signage. It is too simple to print a sign from our computers or use pre-printed signs. Printed signs simply look more professional and signs with hard-to-read handwriting can be a customer turn-off.
5. Stained Floor or Ceiling Tiles It is true, accidents happen. However, our customers don't have to see them. Dirty carpet, stained flooring and ugly ceiling tiles can turn off many shoppers. Sweeping, vacuuming and mopping should be done on a regular basis. Consider hiring a professional cleaning crew to polish tile floors. Replace stained portions of carpet and ceiling tiles where possible.
6. Burned-out or Poor Lighting Replace any burned out light bulbs as soon as possible. Make sure all customer areas of the store have ample lighting and take into consideration shoppers with aging or less than perfect eyesight. Your store should be well illuminated for all customers
7. Offensive Odors
Customers understand if they visit a lawn and garden center they will have to deal with the smell of fertilizer. The same goes for shoppers of a feed supply store. Certain odors are understandable and may even appeal to the customer's sense of smell. However, shoppers don't want to smell an employee's lunch drifting across the store. Use neutralizers to combat any offensive odors.
8. Crowded Aisles
Consumers like a selection but not if it means sacrificing comfort while shopping. Be sure your store is designed to allow adequate space between aisles and keep walkways free of merchandise. Cramped spaces can ruin a shopping experience and turn off a customer.
9. Disorganized Checkout Counters A stack of hangers, returned merchandise and sloppy work areas behind the checkout is a huge customer turn-off. This particular area where a customers financial transaction is taking place should not show any signs of disorganization. Like messy dressing rooms, a disorganized checkout counter can lead to theft. Keep those register areas neat and tidy.
10. Lack of Shopping Carts/Baskets Your type of retail shop may not require a shopping cart or your store may be too small, but there's not a single type of retailer that wouldn't need at least some sort of shopping basket. If you hope for your customer to purchase more than one item in your store, be sure to have an adequate supply of shopping carts or baskets on hand
1. Consumer choice- The location is dependent on the decision of the consumer where to shop. It implies that a fair knowledge of the consumer behaviour of the area is a must. 2. Since the location has strategic importance, the retailer has to weigh the pros and cons for a long term competitive advantage to be derived out of the best location. 3. Consideration of trends: Any changes in the social structure or trends has to be a factor people taking more interest in out of shopping experience, motor car usages increase, power of retailer brands, whether new regional shopping areas are there, rate of growth of multiple retailers etc 4. Investment requirementwhether it is high,very high or affordable with the present expected turnover, rental costs time period to recover the costs are to be considered. 5. Property assetsselection of the property in a site has long term implications in that the value of the property in the days to come may surpass even the business turnover. 6. There are restrictions due to governmental rules on the availability of sites. The opportunities for planning permission are also politically controlled
An important feature of store planning as earlier said is the location planning which can be followed by selection. It is the method of selecting the right location and an appropriate site for the store with the catchment definition for each store. The rollout plan defines the types of location selected on the basis of the retail store format.
Types of locations
High street location. Very busy with customer traffic. Has an array of retail stores in small sizes. Has stores that are generally found in clusters based on product categories. High real-estate rentals
The Internet is in a state of constant growth. With that growth has come many social, legal, cultural and political issues: privacy, censorship, intellectual property, affordability and accessibility, to name a few. Some of these issues will be dealt with here, as it has become obvious that Information Management is the key to effective use of the Internet and for the administration of any form of information technology. Technological growth is now so immense, and so embedded in our society, that it is not possible to talk about it as simply one subject. Rather, it is now a whole range of subset of subjects. This chapter will then look at some trends from four perspectives:
how technology and people are merging and integrating as a new entity in society; electronic commerce (as governments are now moving into electronic transactions); information management and how management of information is becoming crucial in order to be an effective administrator in a high tech world; the potential social implications emerging as a result of current technological innovations and evolution within our society.
There were even some who thought that any technological revolution within government was still decades in the future. The consistent implementation of new technologies presents both many challenges and problems to governments and private sector organizations alike.
Current research indicates that we are still very much at an interim stage of technological growth and use. . For example, through the course of any day we might possibly
pass through a video surveillance camera; witness a scanning device at a retail outlet (which will be sending information on the sale to a central database); have our name recorded in a computer through a transaction over the phone; make a deposit or withdrawal using an automated teller card; go online to check our bank account; possibly pass someone who has an electronic bracelet as part of a bail process or parole condition (but we would never know it); get into a fully computerized car; or enter a security code number to get into our home or office.
At the same time, this growing electronic umbrella is creating an enormous amount of potential for abuse.
Germany is essentially a paternalistic society. Its citizens expect their government to legislate all aspects of their lives. It is this cultural heritage which allows them to legislate morality on the Internet without any outrage in Germany.
In the U.S., provisions of the Communication Decency Act had created a criminal offence for access to sexually explicit material on the Net in certain circumstances. This was struck down by both a Federal Court and, ultimately, the Supreme Court, as striking at the heart of freedom of speech and freedom of expression as guaranteed in the American Constitution.
It is a medium that has paved the way for electronic commerce, for both government and business alike. Nicholas Negroponte, writing in the July 1997, edition of Forbes magazine, predicted that this will become a trillion dollar industry for business by early in the next century.
The chartered banks in Canada are also using the Web to supply information about all their services and software technology. It is given free to their customers, where they can have instantaneous access to their account, make transfers between accounts, get updates and program their account for payments for their bills to be automatically withdrawn on the dates specified by the customer. Many businesses are taking advantage. For example, it is now possible to go online and book a trip anywhere in the world. The user can use the Web, or other areas of the Internet, and book the entire trip. One can find the best possible hotel or accommodation package in any given country in the world (where the Web is being used). The consumer can book his/her whole trip, including airline, train or bus travel and a limousine to the airport. This change means tougher competition for travel agencies as the consumer becomes his/her own travel agent. From this we can expect a decline of travel agencies in the next decade. While such activity is not being done in the tens of millions yet, it is nevertheless occurring at a significant rate to assist both the traveler and the travel industry in general.
Commerce on the Net is going to be the area of single most growth in the next few years. The Web is a medium used for three central activities by business, according to Negroponte: subscription, advertising and business transaction (and the latter is going to be the main activity of government very soon). For example, www.hollywood.com is a high tech, glitzy site and attracts millions of visitors a year. It helps to promote all the latest movies, gives the buzz on the activities of the current stars and provides weekly updates for visitors who want to be kept informed.
As to business transactions, there is much evidence of its growth but, as Negroponte points out, it is still combined with other technologies, especially the phone, fax and mail. He goes on to speculate on the types of businesses that could emerge and how consumers could well use this medium to their advantage. As technologies become more sophisticated in the stores it is possible one could use a terminal on the shop floor to browse and then go to the precise range of products that appeal to him/her. These are in use in the huge outlets like Wal-Mart and Super Kmart that are arising around North America.
Negroponte goes on to describe some innovative ways consumers might use online transactions, which will benefit both the consumer and the retailer and result in significant shifts in the marketplace and business world overall.
"With the help of computer agents you will be able to find the least expensive, fastest-delivered and longest-warrantied item, with no more than a few clicks or keystrokes. The folks at the Yellow pages didn't know just how much you could let 'your fingers do the walking.' Just think what that does to consumer economics. "Don't be surprised if 21 consumers get together and demand a fleet discount from a Taurus dealer. The dealer won't be displeased, because the small margins will be offset by volume, and the deal puts him in a good light with the manufacturer.
The last is a salient point as it illustrates, in just one small example, the ways in which the new information and communication technologies are changing not only the world of commerce but also the very way we conduct our lives. The change will only escalate but with this change will come serious social issues (discussed below in this chapter). At the end of the day, the Web is a publishing medium that offers you access to millions and millions of bits of information around the world. Because of the rise of the Digital world, the place of bits and bytes that can move information and knowledge around the world at the flick of a keystroke, Negroponte sees a significant shift in the world of business that will impact heavily on multinationals.
"In fact, we don't care if we have one customer in every town with a population of more than 10,000 people or if we have 10,000 customers at one location. We don't care about customs (the kind that impose duties). Our marginal cost to make more product is zero. We have no inventory. In short, our unit costs aren't a lot higher than those of the corporate agents."
This is but one example which Negroponte gives to make the very relevant point that this medium is very much poised to move businesses into new areas for entrepreneurs and anyone who wants to do business. The growth potential is strong. Everything from tracking and buying stocks online, being your own travel agent, to surfing the web to get the best deal, or having a site that offers an exclusive product, is now becoming possible. While Negroponte and many others are enthusiastic about electronic commerce and its potential, the Economist magazine in the UK takes a rather more conservative view. It sees growth potential but foresees this much further down the line.
However, what is clear is that much of the confusion over shopping online will be handled by software technologies that will find a choice of products the consumer is seeking. One example came in the summer of 1997, with the release of new software, called Jango. This software does the search for the client (through a company that offers this service). It gets from the client what he/she is looking for, then goes out over the Net in search of the item.
The Economist makes the point that many surveys fail to take into account the most lucrative of online business activities - that of business to business dealings. This makes sense if, for example, the FedEx web site is used as an example. It is geared for businesses, to facilitate and make it easy for their customers to get their packages prepared for delivery and picked up with the least fuss.
This latter fact is revealing in itself, mirroring the rapid state of change that these technologies bring. Call Centers are the epitome of cost saving measures. They could be located anywhere, in a rural area of one's country or abroad, in areas where wages and taxes were lower and the quality of life better..
Reading the Negroponte article (waxing enthusiastic) and the Economist (guarded, conservative), there is no doubt that Electronic Commerce is a phenomenon that is here to stay, will continue to grow and change as more technologies evolve, as more consumers come online and as the tastes and needs of society itself change. The single most important factor which will lead to the true growth of business on the Net, will be not only the millions of new users who will come online in the next few years but what the new super literate technology generation will do with these technologies. How this up and coming generation will use these technologies will mean more social shifts.
Connected consumers are increasingly taking advantage of the mobility and transparency of this type of information at POP. The question for retailers is how to take advantage of these types of capabilities. Automating the delivery of coupons and product info to mobile devices as well as having a mobile Internet shopping capability are obvious ways (either directly or through the types of services discussed above). These ensure that where you have the best price, you remain competitive.
Building on those capabilities, there is also an opportunity to use mobile services to drive customized offerings to high-value customers at POP (your POP or your competitor's). This is the key to changing the value proposition from a purely pricebased commodity. To do this, you need to understand who your best (most profitable) customers are, what they care about, and create offerings based on their long-term value, as opposed to just the value of the current transaction. Whether your best customers are top athletes or just average shoppers, creating differentiation in experiences that result in loyalty is all about treating your best customers better than anyone else
MANUFACTURER AND RETAILER BRANDS IN FOOD RETAIL ASSORTMENTS Notes from a shopping trip across Europe
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RETAILERS AS BRANDS
At the same time, retailers compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner 1993). In doing so, they may sell some of their own brands. In fact, in industries like apparel, one can find several examples of retailers who carry only their own private label products, e.g., GAP, Brooks Brothers, and Talbots. Private label products may have their own unique brand names or be branded under the name of the retailer. They allow the retailer to differentiate its offerings from competing retailers, although often without the support afforded manufacturers brands.
Understanding how a retailer should be positioned and how the brand assortment sold by the retailer is related to its image are thus of critical importance. Some retailers have managed their brands more effectively than others, as is evident in their performance.
Researchers have studied a multitude of retailer attributes that influence overall image, e.g., the variety and quality of products, services, and brands sold; the physical store appearance; the appearance, behavior and service quality of employees; the price levels, depth and frequency of promotions; and so on. Lindquist (1974) and Mazursky and Jacoby (1986) categorized these attributes into a smaller set of location, merchandise, service, and store atmosphere related dimensions.
Access The location of a store and the distance that the consumer must travel to shop there are basic criteria in their store choice decisions. Beginning with gravity models (e.g., Huff 1964) store choice and the optimization of retail site location attracted a lot of research attention in the eighties (e.g., Achabal, Gorr, and Mahajan 1982; Ghosh and Craig 1983; Donthu and Rust 1989). Consistent with this trend, Bell, Ho, and Tang (1998) find that location no longer explains most of the variance in store choice decisions. however, that location is unimportant. Consumers store choice may be based on different criteria depending upon the nature of the trip. In summary, although location no longer explains a major portion of the variance in consumers choice of stores, it is a key component in consumers assessment of total shopping costs and is still important for retailers who wish to get a substantial share of wallet from fill-in trips and small basket shoppers.
Store Atmosphere
Mehrabian and Russell (1974) note that the response that atmosphere elicits from consumers varies along three main dimensions of pleasantness, arousal, and dominance. This response, in turn, influences behavior, with greater likelihood of purchase in more pleasant settings and in settings of intermediate arousal level. Different elements of a retailers in-store environment, e.g., color, music, and crowding, can influence consumers perceptions of a stores atmosphere, whether or not they visit a store, how much time they spend in it, and how much money they spend there
induced
store
The third research area studies whether retailer price promotions result in store switching by consumers. Kumar and Leone (1988) and Walters (1991) find a significant impact of promotions on store switching/traffic.
Cross-Category Assortment
Consumers perception of the breadth of different products and services offered by a retailer under one roof significantly influence store image. The benefits of a wide assortment are clear. First, the greater the breadth of product assortment, the greater the range of different situations in which the retailer is recalled and considered by the consumer, and therefore the stronger its salience.
Within-Category Assortment
Consumers perceptions of the depth of a retailers assortment within a product category are an important dimension of store image and a key driver of store choice. As the perceived assortment of brands, flavors, and sizes increases, variety seeking consumers will perceive greater utility (McAlister and Pessemier 1982; Kahn and Wansink 2004), consumers with uncertain future preferences will believe they have more flexibility in their choices (Kahn and Lehmann 1991),
BRAND ASSORTMENT
One specific aspect of the retailers assortment strategy, brand assortment, has become particularly important in the last decade as a tool for retailers to influence their image and develop their own brand name. Most retailers carry manufacturer brands, but, increasingly, they also offer private label products. One motivation for offering private labels is the higher percent margins that they provide to retailers (Hoch and Banerji 1993); another is the negotiating leverage they provide over manufacturers (Narasimhan and Wilcox 1998); and a third is the implicit assumption that providing a private label brand engenders loyalty to the retailer (Steenkamp and Dekimpe 1997). The growth in private labels has spawned much research on who buys private label products, whether and how private labels provide leverage to retailers, and the category and market determinants of private label share. We review the main findings from this research and summarize the implications for retail branding.
Architecture as Brand
Architectural design conceived as part of an overall brand strategy can effectively demonstrate the promise behind a brand [B]randing [i]s the chemical reaction in the back of your head that happens when you are exposed to a brand. For instance, when Im exposed to Volvo, I think of safety. Physical space in a building speaks to you the way branding does. Architecture is a form of branding; it is more than making a place functional. It can affect emotions and decisions, just like great marketing does.
Brand Architecture:
A Method to the Madness GM has 33 brand names. BMW has one. Both are valid brand architectures. Answering the question "What to brand?" is a complex challenge for companies of every size. The key is to create clarity the trick is to leverage the brand without diluting it. A Branding Strategy Discussion
Intro: As companies merge and morph to position themselves and their products for success in the new economy, branding has become more important than ever. The speeds at which markets shift, corporations merge, and new products come to market and subsequently become obsolete are ever increasing. While the dynamics of our high-speed economy are indeed causing corporations and brand managers to rethink who, what, when, where and why they brand, much of the tried-and-true lessons of positioning for shelf space still apply to companies positioning in cyberspace.
Types of brands displayed or dealt with also contribtes to brand architectural strength.
A number of different types of brands are recognized. A "premium brand" typically costs more than other products in the category. An "economy brand" is a brand targeted to a high price elasticity market segment. A "fighting brand" is a brand created specifically to counter a competitive threat. When a company's name is used as a product brand name, this is referred to as corporate branding. When one brand name is used for several related products, this is referred to as family branding. When all a company's products are given different brand names, this is referred to as individual branding. When a company uses the brand equity associated with an existing brand name to introduce a new product or product line, this is referred to as "brand leveraging. " When large retailers buy products in bulk from manufacturers and put their own brand name on them, this is called private branding, store brand, white labelling, private label or own brand (UK). Private brands can be differentiated from "manufacturers' brands" (also referred to as "national brands"). When two or more brands work together to market their products, this is referred to as "co-branding". When a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area, this is referred to as "brand licensing." An "employment brand" is created when a company wants to build awareness with potential candidates.
Brand Architecture
The different brands owned by a company are related to each other via brand architecture. In product brand architecture, the company supports many different product brands each having its own name and style of expression but the company itself remains invisible to consumers. Procter & Gamble, considered by many to have created product branding, is a choice example with its many unrelated consumer brands such as Tide, Pampers, Ivory and Pantene. With endorsed brand architecture, a mother brand is tied to product brands, such as The Courtyard Hotels (product brand name) by Marriott (mother brand name). Endorsed brands benefit from the standing of their mother brand and thus save a company some marketing expense by virtue promoting all the linked brands whenever the mother brand is advertised.. In the third model only the mother brand is used and all products carry this name and all advertising speaks with the same voice. A good example of this brand architecture, most often known as corporate branding, is the UK-based conglomerate Virgin. Virgin brands all its businesses with its name (e.g., Virgin Megastore, Virgin Atlantic, Virgin Brides) and uses one style and logo to support each of them.
Techniques
Companies sometimes want to reduce the number of brands that they market. This process is known as "Brand rationalization." Some companies tend to create more brands and product variations within a brand than economies of scale would indicate..
Challenges
There are several challenges associated with setting objectives for a brand or product category. Brand managers sometimes limit themselves to setting financial and market performance objectives. They may not question strategic objectives if they feel this is the responsibility of senior management. Most product level or brand managers limit themselves to setting short term objectives because their compensation packages are designed to reward short term behaviour. Short term objectives should be seen as milestones towards long term objectives. Often product level managers are not given enough information to construct strategic objectives. It is sometimes difficult to translate corporate level objectives into brand or product level objectives. Changes in shareholders' equity are easy for a company to calculate. It is not so easy to calculate the change in shareholders' equity that can be attributed to a product or category. More complex metrics like changes in the net present value of shareholders' equity are even more difficult for the product manager to assess. Brand managers sometimes set objectives that optimize the performance of their unit rather than optimize overall corporate performance. This is particularly true where compensation is based primarily on unit performance. Managers tend to ignore potential synergies and inter-unit joint processes.
8. Designer image/status.
Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it.
Brand personality. Much of the theory and practice of branding deals with intangibles how marketers can transcend their physical products or service specifications to create more value. One important brand intangible is brand personality the human characteristics or traits that can be attributed to a brand. One widely accepted brand personality scale is composed of five factors (Aaker 1996): 1) Sincerity (e.g., down-to-earth, honest, wholesome, and cheerful), 2) Excitement (e.g., daring, spirited, imaginative, and up-to-date), 3) Competence (e.g., reliable, intelligent, and successful), 4) Sophistication (e.g., upper class and charming), and 5) Ruggedness (e.g., outdoorsy and tough). But, how applicable are these brand personality dimensions to retail brands? Do other dimensions emerge? Which retailer attributes affect which dimensions of retailer brand personality and how does this vary across market segments? Experiential marketing. An important trend in marketing is experiential marketing company-sponsored activities and programs designed to create daily or special brand-related interactions. Schmitt (1999, 2003) has developed the concept of Customer Experience Management (CEM) which he defines as the process of strategically managing a customers entire experience with a product or company. Brand architecture. Brand architecture involves defining both brand boundaries and brand relationships. The role of brand architecture is twofold: 1) to clarify all product and service offerings and improve brand awareness with consumers and 2) to motivate consumer purchase by enhancing the brand image of products and services. In general, there are three key brand architecture tasks:
Role of Private Labels in Building Retailer Brand Equity Although researchers have discussed optimal private label introduction, quality, pricing, and positioning strategies from the perspective of private label sales or category profit maximization, there is little work, either normative or descriptive, that links these strategic decisions to building the retailers brand equity. We discuss below some issues that are particularly important from the perspective of retail branding.
Private label tiers and retailer brand positioning. There are at least four tiers of private label products, ranging from low quality, no-name generics to cheap, medium quality own labels to somewhat less expensive, comparable quality private labels, to premium quality, high value added private labels that are not priced lower than national brands (Laaksonen and Reynolds 1994). In
Private label branding strategy. Many retailers give their own name to their private label, whereas others use different names for their private label products. For instance, CVS puts the CVS name on all its private label products while Kmart does not. Aldi, a German hard discounter who is becoming a major force in European retailing, also does not put its own name on any of the products it sells even though only private labels are sold in its stores. Extending private labels. One of the major benefits of brand equity is the option it provides for extending the brand name to other market segments within the category or to other product categories. Although some retailers with premium private labels sell those private labels through other retail outlets (e.g., Starbucks), it is not yet common for North American packaged goods retailers to do so -- they do not yet seem to have that kind of equity. Manufacturer response. Manufacturers have responded to the rise of private labels in a number of different ways: decreasing costs, cutting prices, increasing R & D expenditures, increasing promotions, introducing discount "fighter" brands, and supplying private label makers. Hoch (1996) and Dunne and Narasimhan (1999) discuss how manufacturers should think about private labels and what issues they should consider in deciding whether to supply private label products. Ailawadi, Gedenk, and Neslin (2001) show that although there is a segment of value conscious consumers who buy private labels and manufacturer brands when the latter are promoted, there are also two separate and sizeable segments that buy one but not the other.
3. RISK AND SEARCH COST REDUCER- The brand reduces the time and energy for searching the brand that can satisfy their needs and gives assurance on performance without risks. 4. PROMISE,BOND ,PACT WITH THE MAKER- The name represents all the benefits promises committed through ads, it must be capable of establishing a bond affectionately, sensitively and emotionally so that it results in sort of a pact or agreement with the customer. 5. SYMBOLIC DEVICE AND SIGNAL OF QUALITY- It immediately sounds quality and work as a special device in customers mind. 6. Rresulting in brand loyalty- The name must hence develop brand loyalty i.e. the customer repeatedly buys the same brand,longs for the same brand or the store. 7. Bbrands get positioned strongly In this way the name gets established strongly in the minds of customers i.e. get a strong position in customers mind.
Professionals agree that these are the top 10 characteristics of a good brand name
1. Short, sweet and easily pronounced The ideal name for customers to remember, and for you to use to cut through 2. Unique within its industry Your name doesn't need to be weird or clunky, but it does need to not sound like all the rest of your direct competitors. HotJobs.com, BAJobs.com, Careers.com, CareerJunction.com, LocalJobs.com are all easily lost in the crowd.
3 Legally available and defensible Your lawyers think this should be item one of course. Regardless, what is the point of starting any company or marketing campaign if you cannot have full rights in the name? Your best defense is always a magic - which only can be issued by the USPTO (or equivalent agency in other countries). If the USPTO won't issue a registration certificate because they judge it to be generic, then you have problem (2) above anyway. Common law trademark searches are also critically important 4 Good alliteration, especially if a longer name Sometimes a longer name does have a place in marketing. After all, the most famous brand in the world, Coca Cola, is four syllables. But notice how smoothly it rolls off the tongue. Linguists will tell you it has good alliteration. 5 Does not lend itself to abbreviations
If you have a long descriptive name, people will abbreviate it quickly. OK, we know it worked for IBM, AT&T, CBS etc., but how many years and how many branding dollars do you have? For a small company, this means you quickly become YASI (Yet Another Set of Initials) and drown in the initial bit bucket. At least make sure the trademark part (brand part) of your tradename is a name and not initials. E.g. Ford is the trademark for Ford Motor Car Company. Leave FMCC etc. to the legal documents only. But who or what are AMA, CCI, etc.?
Too many people try to describe their company rather than name it. Copyland, Copydata, Copyshop, QuickCopy all define what they do - and are barely distinguishable from one another. Linguistically clean
What are the root origins of the name? How is it pronounced by a Spanish, Italian, Japanese, Portuguese or French native speaker? What does it mean in these languages? 8 Will not age quickly
Is your name hip and topical? If you are in the fashion trend business this might be fine. But otherwise, be very careful of "in" words or expressions. Embraces company personality Two competitors, entering the same market at the same time with directly competing products, will pick different names because every company
At the same time, retailers compete with manufacturers for consumer pull to increase their relative market power and their share of the total channel profit pie (Steiner 1993). Researchers have studied a multitude of retailer attributes that influence overall image, e.g., the variety and quality of products, services, and brands sold; the physical store appearance; the appearance, behavior and service quality of employees; the price levels, depth and frequency of promotions; and so on. Lindquist (1974) and Mazursky and Jacoby (1986) categorized these attributes into a smaller set of location, merchandise, service, and store atmosphere related dimensions. The five dimensions we use to review past research are: 1) access 2) in-store atmosphere, 3) price & promotion, 4) cross-category product/service assortment 5) within-category brand/item assortment.
Product and Sales Promotion riddles are the trickiest ones. As the right product and sale promotion, brand promotion and rural & urban promotion requires focus on the right segment at the right time, at Relio Quick in India, we do the necessary campaign analysis to measure the success of the promotion.
An advertising agency known for its innovative ideas and great creative with its head office in New Delhi and Regional offices at Mumbai, Bangalore, Chennai, Hyderabad, Lucknow, Bhopal and Pune on PAN India Basis Relio Quick combines carefully selected traditional and new communication techniques according to your requisite promotion needs, including Urban, SemiUrban and Rural Promotions. Our specialized promotion includes Rural & Urban Promotions.
Consumer sales promotion techniques Price deal: A temporary reduction in the price, such as happy hour Loyalty rewards program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased. On-line couponing: Coupons are available on line. Consumers print them out and take them to the store.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.
Sales Promotion
Provides an extra incentive to buy or try Provides an increased incentive to sell Accelerates the sales process/Maximizes volume Is extremely flexible While advertising and public relations appeal to the mind via rational calculations of self-interest, or the emotion, sales promotion appeals more to the pocketbook. Second, sales promotion can increase the incentives for intermediaries such as wholesalers and retailers to deal with a firm's products. A trade allowance or discount provides retailers with financial incentives to stock and promote a manufacturer's products. A trade contest directed at wholesale or retail personnel provides an extra incentive to concentrate on sales of the manufacturer's products. Third, sales promotion acts as an accelerator designed to speed up the selling process and maximize sales volume. By providing incentives, sales promotion techniques can motivate consumers to purchase larger quantities of a brand, or to shorten the purchase cycle by buying more frequently. Finally, sales promotion is flexible. It can be targeted to different levels in the marketing or distribution chain to accomplish various objectives. Generally speaking, two types of sales promotion can be used: Consumer oriented sales promotion, or trade oriented (business-to-business) sales promotion
Basic Objective
The basic objective of consumer oriented sales promotion is to achieve a significant short-term increase in sales. With this objective in mind, marketers can use sales promotion to consumers to accomplish this goal in various ways. For an established brand, the goal might apply to increasing consumption of the brand from current sales levels. For new products, the goal might be to achieve more rapid trial and adoption of the product.
The types of sampling include: In store (on package, demonstration) In home (mail, door-to-door) Three criteria for effective sampling are: The product must have a relatively low unit value, making the costs of a sampling promotion affordable The product must be divisible to permit breaking into smaller units. Providing a "sample" of a car is hard, but a sample size of a shampoo is of course easy to manage. The purchase cycle for the product must be relatively short.
Consumer Sales Promotion TechniquesCouponing As we discussed in the opening of the chapter, coupons are the oldest and most widely used of the techniques in the U.S. market. Coupons are less used in other parts of the world. Coupons are somewhat selective: They allow extending a price reduction to buyers who are price sensitive without reducing the product's price to all consumers. Coupons can be used for both new and established brands. One problem with the use of coupons is that it is difficult to estimate how many coupons will be redeemed. Only about 2% of all coupons issued are redeemed. Also, coupon implementation can be expensive (costs include printing, distribution, and redemption). Vignette Coupons haven't done as well abroad as in the U.S. One reasons for their relative lack of acceptance in developing countries is the need for a fairly elaborate infrastructure. Store employees must be educated: the store has to store the coupons: then they must be sent somewhere for redemption. So it is somewhat difficult to imagine their universal acceptance. Coupons are distributed in a number of ways newspaper direct mail on-package bounce back cross reference A relatively new phenomenon is the provision of coupons on-line. Catalina Marketing Corp. has pioneered a program to allow shoppers to print their own coupons from the Internet. In exchange for information about your preferences and buying patterns, it will send you a personalized selection of coupons every week via email. Results are encouraging - the redemption rate is about 20%, far higher than the 1% to 5% rate for newspaper inserts.
The Coupon Conversion Model The primary idea of this model is to lead the consumer through a series of steps, with an ever-decreasing sales promotion component, from a free sample to buying at regular price. The steps are: -Free sample -Major coupon, with a significant price reduction -Coupon with a smaller price reduction -Regular price purchases Consumer Sales Promotion Techniques--Premiums The idea here is to offer an item of merchandise or service either free or at a low price. Premiums are of two types Free premiums Self-liquidating premiums
Consumer Sales Promotion Techniques--Bonus Packs Consumer Sales Promotion Techniques--Price Reductions Consumer Sales Promotion Techniques--Event Sponsorships Trade Oriented Sales Promotion Trade Oriented Sales Promotion--Trade Allowances
2. Promotional allowances Allowances or discounts for retailer to perform certain promotional activities.
3. Slotting allowances Discounts or allowances paid to the retailer for shelf space. These allowances may help discourage the appearance of new products, since this is an additional cost of bringing a new product to market. Trade Oriented Sales Promotion--Point of Purchase Displays Displays for retailers to use in stores. Providing the displays themselves helps manufacturers to ensure a high level of in-store merchandising
Trade Oriented Sales Promotion--Sales Training Manufacturers provide sales training for a retailer's sales personnel. This can mean providing classes (including an instructor), or providing training materials.
Targeted to resellers, trade shows provide an opportunity for face-to-face contact with resellers. Trade shows are also a good venue for the introduction of new or revamped products. Importantly, they allow for demonstration of the product without having to visit wholesalers or retailers on a one-by-one basis.
Here the cost of advertising is shared by the manufacturer and the retailer. Cooperative advertising is similar to promotion allowance except that it tends to have greater manufacturer participation such as production of advertising or promotion materials.
Direct Marketing
Among the trends that have made direct marketing more attractive to buyers are time constraints and congestion. The two-income household exhibits severe time pressure, and one way to have more time is to spend less time shopping. Sellers, meanwhile, like direct marketing because of low access costs and databases, which allow precise targeting. Like personal selling, direct marketing allows one-on-one communication with buyers. Unlike personal selling, however, direct marketing allows a "sales call" which is relatively inexpensive on a per-call basis. Direct marketing is much more than direct mail or mail order catalogs, the traditional components of this tool. It now includes a variety of activities such as direct selling, telemarketing, and direct response advertising. A full list is shown in Table 5. As shown, some authors describe electronic commerce as direct marketing. Although this classification is accurate in a strict sense, we consider e-commerce worth special and individual coverage These techniques are exemplified in the U.S. by companies such as Tupperware, Mary Kay Cosmetics, Dell and Gateway Computers, who do not use traditional retail distribution networks. Rather, they depend on direct consumer access to sell to and service their end users.
* Be able to work nights and weekends in a bar/nightlife atmosphere * Be able to submit to and pass a criminal background check and drug screen * Have reliable transportation * Wear required uniform * Attend all mandatory Brand Ambassador trainings * Be able to provide a government issued id providing proof of age. Educational Requirements High school diploma or equivalent Physical Demands The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. While performing the duties of this job, the employee is regularly required to sit. The employee is frequently required to use hands to finger, handle, or touch objects or controls and talk or hear. The employee is regularly required to stand, walk, and reach above shoulders. Specific vision abilities required by this job include close vision. Know someone that would want to work with you? Please forward this information along to any friends or family that might be interested in working this event! Please email a copy of your resume and any additional promotional information to cgramzagmrlive.com for consideration .
As we've reported elsewhere, employees are critically important contributors to the strength and health of a company's brand relationships. (See "The Power of the Fifth P" and "People Who Need People" in the "See Also" area on this page.) They have an impact on customer relationships that can far outweigh the influence not just of your advertising but of the prices you charge and of the convenient locations you painstakingly select.
Many business books attest to the importance of human contact in building customer relationships. And yet, though most companies talk about the crucial role their employees play, survey results continue to point to the woeful experiences that are typical in today's customer encounters. Wharton's annual Baker Retail Initiative survey noted that 1 in 4 shoppers reported being totally ignored by sales associates during their most recent retail store visit. (See "Are Your Customers Dissatisfied?
As if the measurement of brand equity were not hard enough, the measurement of retail brand equity adds its own unique challenges. Brand equity is defined as the marketing effects or outcomes that accrue to the product or service with its brand name as compared to the outcomes if that same product or service did not have the brand name (Keller 1993). Since it is difficult to determine what outcomes would accrue in the hypothetical no brand name situation, researchers often use private labels as the no brand name benchmark (Park and Srinivasan 1994; Sethuraman 2000; Ailawadi, Lehmann, and Neslin 2003). What should be the benchmark for assessing a retailers equity and comparing it with other retailers?
One possibility is the approach developed by Dubin (1998) who uses oligopoly economic theory and a series of simplifying assumptions to derive an analytic expression for the incremental profit that a product would get with its brand name versus if it did not have the brand name. However, although Dubin does not treat the private label directly as a benchmark, it does play a role in his analysis his expression for brand equity is a function of, among other things, the price elasticities of branded and private label products. Another possibility might be to use a cross-retailer hedonic regression type of approach.1 For instance, one could regress retailer revenue or profit on various physical attributes such as location, square footage, store timings, product/service assortment, availability of private label, etc. A retailers residual from this regression, i.e., the portion of its revenue or profit that cannot be explained by physical attributes, can be conceptualized as a measure of its retail brand equity.
CONCLUSION
Our contention is that branding and brand management principles can and should be applied to retail brands. Even though there has not been much academic research on retail branding per se, a lot of work has been done on retailer actions and consumer perceptions of retailer image that has direct relevance to branding. Consumer perceptions of these dimensions of retailer image can help develop strong and unique retail brand associations in the minds of consumers. They also influence the utilitarian and hedonic benefits that consumers feel they gain from retailer patronage and ultimately the price premium consumers will pay, the extra effort they will be willing to expend in order to shop the retailer, and the share of trips, share of requirement, and loyalty that the retailer enjoys. Perhaps because of the lack of explicit focus, however, a number of important retail branding questions and issues are yet to be resolved.
1. Introduction
Managers recognize that a retailers brand image is a critical differentiator in an extremely competitive marketplace. Leading retailers like Ann Taylor, J. Crew and Banana Republic make investments in product assortments, merchandising and marketing communications to establish and reinforce their brand images. Studies across a broad range of retail formats, which includes specialty stores, department stores, and supermarkets, show that such investments can be fruitful (Henderson and Mihas, 2000).
Consumers are found to make more frequent visits, check out larger-than-average shopping baskets or pay price premiums at retailers they perceive to be strong. To manage their retail brand equity, managers rely on metrics. But, developing retail brand equity metrics is challenging for at least two reasons. First, consumer experiences form the building blocks of retail brand equity (Ailawadi and Keller 2004).
There is considerable variation in these experiences among consumers, which makes it desirable to measure retail brand equity at the individual consumer level. A second challenge to measurement is that a retailers brand equity is dynamic and it accrues over time via consumer learning and decision making processes (Erdem et. al. 1999). Managers would like to not only measure current retail brand equity but also monitor the temporal evolution of their retail brand. Current managerial and academic metrics of retail brand equity have not addressed both issues. Industry-leaders such as AC Nielsen (Shopper Trend) and Interbrand measure brand equity at an aggregate level and do not assess dynamics. In academic research, extensive studies have been done to measure brand equity (Green and Srinivasan 1978, Green and Srinivasan 1990, Park and Srinivasan 1994, Kamakura and Russell 1993, Rangaswamy et. al 1993, Sriram et. al. 2007). However, these models do not consider the dynamic brand equity formation process at an individual consumer level.
A person feels positively disposed towards the brand,based upon brand attitudes. A person utilizes the store more than other stores or buy the same brand more frequently . This attitude of course is based on store or brand preference. A person continues to utilize store or brand over time. This is also known as brand allegiance.
The loyalty can be of 5 types 1. Hard core loyals where the consumer buys only the same brand all t he time to satisfy his needs and would even wait for the brand if out of stock. This is strong allegiance and undivided loyalty to the brand. Soft core loyals, where the consumer buys brand A or B depending on availability and moods but loyalty is divided between two competing brands Shifting loyals. Here the consumer shifts his loyalty to two,three or four brands. Brand switchers. Here the consumer shows no loyalty to any brand and simply switches the brand from one to any depending on price or other benefits or deal etc. They may also want variety shopping i.e. different each time they make a purchase.
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BRAND LOYALTY
CUSTOMERS INSIST FOR THE SAME BRAND FOR USE AND RECOMMEND TO OTHERS THE SAME BRAND COME WHAT MAY LOYAL CUSTOMERS CAN NOT EXIST WITHOUT THE BRAND WHEN IN NECESSITY. REPEAT PURCHASES DUE TO CONFIDENCE THAT THE BRAND INQUESTION CAN SATISFY HIS NEEDS MORE THAN ANYBODY . A STRONG ,ADEQUATE ,RELEVANT ASSOCIATION AND RELATIONSHIP MARKS LOYALTY.
BRAND RESONANCE OCCURS WHEN CUSTOMERS MINDS ARE ATTUNED TO THAT OF THE BRAND IN MANY RESPECTS. BEHAVIOURAL LOYALTY,ATTITUDINAL ATTACHMENT,SENSE OF COMMUNITY( A KINSHIP WITH OTHER USERS OF THE BRAND) AND ACTIVE ENGAGEMENT ARE THE HALL MARKS OF BRAND RESONANCE.
Brand Manager
Job Description: Develop Brand strategy in terms of positioning, pricing, distribution and marketing Conceptualize and execute activities for Brand positioning Manage the Profit & Loss of the Brand Job Requirements: Degree holder with 8 years experience in retail brand management in the fashion industry with at least 5 years in a managerial capacity Experience in retail operations, merchandising, inventory control. sales & marketing Excellent interpersonal, communication and presentation skills
Retail Manager
Job Description: To lead a dynamic sales team and to maximize their potential to achieve set targets and objectives Excellent leadership with good interpersonal and communication skills taStrong background and interest in fashion Able to work at retail and long hours Job Requirements: Diploma in Marketing / Retail Minimum 5 years experience in retail store operation with 2 years in a managerial role Previous experience in boutiques or apparels related stores preferred
The Successful Applicant Ideally you will have retail experience but you will need a number of years experience managing inventory of commodity flow and exposure to a sales & marketing orientated company will be useful. Analytically you must be strong and be able develop sound business conclusions from data analysis. An open and collaborative nature will be required to make this role a success. What's on Offer Superb opportunity to join a leading retail business on a temp to perm basis. Initially the role will be paying $45- $50 p/hr with a commensurate package if the role turns permanent. My client is located in the West but free parking is available.
Brand Management
Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This can result from a combination of increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or reduced or more efficent marketing investment. All of these enhancements may improve the profitability of a brand, and thus, "Brand Managers" often carry line-management accountability for a brand's P&L profitability, in contrast to marketing staff manager roles, which are allocated budgets from above, to manage and execute. In this regard, Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone.
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THE AUDITOR SUBMITTS A REPORT ABOUT THE ACCURACY,FAIRNESS AND ACCEPTABILITY OF RECORDS. A MARKETING AUDIT IS A COMPREHENSIVE ,SYSTEMATIC PERIODIC EXAMINATION OF THE MARKETING ENVIRONMENT,OBJECTIVES,STRATEGIES ETC.
THIS ENABLES DETERMINATION OF PROBLEM ARES AND PLAN OF ACTION TO IMPROVE.
10 THE BRAND AUDIT A CONSUMER FOCUSSED EXERCISE TO ASSESS THE HEALTH OF THE BRAND. 11 THE AUDIT UNCOVERS THE SOURCES OF BRAND EQUITY AND SUGGESTS WAYS TO IMPROVE ITS EQUITY. ( BRAND AWARENESS, FAMILIARITY, ASSOCIATIONS, FEELINGS, IMAGE ETC)
12 CONSUMERS PERCEPTIONS, BELIEFS, FEELINGS, IMAGERY, POSITION ARE ALL AUDITED. 13 THE BRAND MEANING STUDIED AS ON DATE. 14 THE AUDIT GIVES A DIRECTION TO THE BRAND. 15 ARE THE CURRENT SOURCES OF BRAND EQUITY SATISFACTORY? 16 DOES THE BRAND LACK UNIQUENESS? 17 ARE THE ASSOCIATIONS PERFECT OR NEED STRENGTHENING? 18 WHAT ARE THE OPPORTUNITIES AND CHALLENGES FOR THE BRAND? 19 REGULAR BRAND AUDITS ALLOW MARKETERS TO FEEL THE PULSE OF THEIR BRANDS. 20 BRAND AUDIT HAS TWO STEPS BRAND INVENTORY AND BRAND EXPLORATORY. 21 CURRENT PROFILE OF THE BRAND ON LOGO, NAME, MARK, SYMBOL, CHARACTER, SLOGAN, PRICING, COMMUNICATION, DISTRIBUTION ETC IS INVENTORY. 22 CUSTOMERS ACTUAL PERCEPTIONS ,FEELINGSASSOCIATIONS ARE EXPLORATORY. 23 SUBMIT A REPORT AND REPOSITION THE BRAND ACCORDINGLY.
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Brand Description
In narrative form, identify your brand and describe its history Explain the product or service your brand represents and identify the corporation that owns it. Include the corporate office location, CEOs name, information about their marketing operations, and similar information. Provide a small graphical representation of your brand for one time use in an educational setting.
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Marketing Mix Product a. b. Discuss whether the brand is a convenience, shopping, specialty, or unsought product Discuss your analysis of where the brand is on the product life cycle (In addition to this description, use the Drawing toolbar of MS Word to draw an example of the product life cycle, such as in Exhibit 10.4, and indicate where your brand is on this graph)
Place Discuss the primary marketing channel or channels for your brand Discuss the major retail outlets for your brand. Provide an analysis of the effectiveness of these retail outlets.
3. Price
Discuss whether the pricing objective is profit-oriented or sales oriented Discuss your analysis of whether the primary price strategy is price skimming, penetration pricing, or status quo pricing Discuss two tactics use by your brand for fine-tuning the base price
4. Promotion
Discuss your analysis of advertising campaigns of the brand. If available, show examples. Discuss the media types used in the advertising. Discuss how the organization uses public relations for the brand. Describe how sales promotion of the brand occurs.
SWOT Analysis Provide your analysis of the strengths, weakness, opportunities and threats associated with your brand.
BRAND LOYALTY
CUSTOMERS INSIST FOR THE SAME BRAND FOR USE AND RECOMMEND TO OTHERS THE SAME BRAND COME WHAT MAY LOYAL CUSTOMERS CAN NOT EXIST WITHOUT THE BRAND WHEN IN NECESSITY
REPEAT PURCHASES DUE TO CONFIDENCE THAT THE BRAND INQUESTION CAN SATISFY HIS NEEDS MORE THAN ANYBODY . A STRONG ,ADEQUATE ,RELEVANT ASSOCIATION AND RELATIONSHIP MARKS LOYALTY
BRAND RESONANCE OCCURS WHEN CUSTOMERS MINDS ARE ATTUNED TO THAT OF THE BRAND IN MANY RESPECTS. BEHAVIOURAL LOYALTY,ATTITUDINAL ATTACHMENT,SENSE OF COMMUNITY( A KINSHIP WITH OTHER USERS OF THE BRAND) AND ACTIVE ENGAGEMENT ARE THE HALL MARKS OF BRAND RESONANCE.