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Choosing Retail Partners Channel Structure Degree of vertical integration Manufacturers brand Power of manufacturer and retailer 15-1.

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Presentation on theme: "Choosing Retail Partners Channel Structure Degree of vertical integration Manufacturers brand Power of manufacturer and retailer 15-1."— Presentation transcript:

1 Choosing Retail Partners Channel Structure Degree of vertical integration Manufacturers brand Power of manufacturer and retailer 15-1

2 Choosing Retail Partners Customer Expectations 15-2

3 Choosing Retail Partners Distribution Intensity SelectiveExclusiveIntensive 15-3 Few selected customers in a territory. Manufacturers grant exclusive geographic territories to one or very few retail customers so no other customers in the territory can sell a particular brand. Products into as many outlets as possible.

4 Food Retailers 15-4

5 General Merchandise Retailers Broad variety and deep assortment Department Stores Broad variety at low prices Full-line Discount Limited merchandise with service in small store Specialty Specialty for pharmaceutical and heath Drugstores Discount with narrow but deep assortment Category Specialist Full line, limited, very low prices Extreme value Inconsistent assortment of brand name at low prices Off-Price 15-5

6 Developing a Retail Strategy Using the Four P’s: Product Providing the right mix of merchandise and services

7 Price Price defines the value of both the merchandise and the service provided Price defines the value of both the merchandise and the service provided

8 Promotion Retailers use a wide variety of promotions, both within their retail environment and through mass media

9 Place Convenience is a key ingredient to success

10 Benefits of Stores for Consumers Browsing Touching and FeelingPersonal ServiceCash and CreditEntertainment and Social InteractionInstant GratificationRisk Reduction 15-10

11 Benefits of the Internet and Multichannel Retailing Deeper and Broader SelectionPersonalization Gain Insights into Consumer Shopping Behavior Increase Customer Satisfaction and Loyalty Expand Market Presence 15-11

12 What Information Can an Internet Site Provide?

13 Capabilities for Multichannel Retailing Disintermediation 15-13


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