Kotler on Marketing

1
Retail Strategic Management
2

• Successful go-to-market strategies require
  integrating retailer, wholesaler, and logistical
  organization
• ????????????????????????????????????????????
  ??????????? ?????????? ???????????????????????????
  ??????????????

3
Retailer A
S U P P L I E R
Trade Marketing
Retail Marketing
C O N S U M E R
Retailer B
Relationship Marketing
Retail Marketing
Retailer C
Trade Marketing
Retail Marketing
Retailer D
Relationship Marketing
Retail Marketing
CONSUMER MARKETING
4
Consumer Marketing Channel
1 Level
3 Level
0 Level
2 Level
???????
???????
???????
??????????
????????
?????????
??????
Supecenter Hypermart
???????????
???????
?????????
?????????
?????????
?????????
5
???????
???? ????? ?????? ??????? ?????? ???????
40
?????????
60
???????
80
?????????
100
6
3 Level
1 Level
2 Level
0 Level
???????
???????
???????
??????????
40
40
40
40
15
20
????????
?????????
15
?
60
??????
20
10
???????????
Supecenter Hypermart
???????
20
20
20
?????????
?????????
?????????
?????????
100
100
100
100
7
??????????????????
8
?????????????????????? (1)
Independent Store ????????????????
?????????? ???????? ???????
Corporate Chain Store ????????????????????
Franchise Store??????????????????????
Consumer Cooperative ????????????????????
Voluntary Chain Store?????????????????????????????
??????????????????????????
Merchandising Conglomerate????????????????????????
???????????????????????
9
?????????????????????? (2)
????????????
?????????? ????????????????
???????????????
10
????????????????????????????
Vending machine Direct sale Direct marketing
11
?????????????????????? (3)
???????????????????General Merchandise Department
Store
??????????
??????????????????? ?????????
???????????????????Food Supermarket, Minimart,
Convenience store
????????????????? 2 ?????? Supercenter, Hypermart
12
??????????????????????? General Merchandise

• 1.Luxury Department store
• Central , Emporium, ZEN
• 2.Department store
• Robinson, The Mall ,Klang Plaza
• 3.Discount store
• Wal Mart, Target, K Mart

13
??????????????????????? General Merchandise
4.Specialty Store 4.1.Category Dominant
Store Powerbuy Super sport B2S, Home Pro
4.2. Category Niche Store Watson, Se
Ed, A II Z1, J-mart 4.3 Product Niche Store
Baby store, Maternity Store 4.4.
Category Killer ?????????????
14
B 2 S
Book Music
Stationary
Se-Ed Book Dok Ya
Mang Pong
Category Niche Store
Specialty Niche Store
DVD Shop
Magazine Cartoon
15
??????????????????????? General Merchandise
5.Discount Retailer 5.1 Discount Store 5.2.
Off-Price Retailer -Factory Outlets
-Independent Off-Price retailer
-Warehouse Clubs -Discount Convenience
Store ???????
16
??????????????????????? Food Grocery
1. Gourmet Food store 2. Supermarket 3. Food
Category store 4. Hard discount grocery store
5. Convenience store / minimart
17
??????????????????????? General Merchandise
Food Grocery
Supercenter (American Type) Hypermart
(European Type) Superstore (Japanese Type)
18
Merchandise and Service Continuum
Wholesale club
Supermarket
Category Specialist
Specialty/ Department Store
All Goods No Service
Optical Center
Restaurant
Airline
Bank/ University
All Service No Goods
19
????????????
- ???????????????????????????????????
?????????? - ?????????????????????????
?????????????????
20
???????????
??????????????????????? ??????????????????????????
???
21
Level of Service
Wholesale club
Supermarket
Category Specialist
Specialty/ Department Store
All Goods No Service
Optical Center
Restaurant
Airline
Bank/ University
All Service No Goods
Full Service
Pre-Selection
Self Selection
Self Service
22
?????????????????? ??????? ???????????
???????????????? ??????-?????
???????????????????? ???????-?????????
23
(No Transcript)
24
Changing in Retail Industry from 1993 to 2010
25
Changing Retail Industry (1993)
1. THE INNOVATION OF DISCOUNT HOUSE 2. GROWTH OF
SMALL, CONVENIENCE TYPE STORE 3. INCREASE IN
CHAIN-STORE 4. NATIONAL BRAND VS PRIVATE BRAND 5.
GROUP BUYING OR PURCHASING POOL
June 1993
26
Trend in Retailing (1997)
1. Demand Shift from products to service 2.
Increase in chain 3. Retail Polarization 4.
Internationalization
May 1997
27
Retail Competitive Factors in 2001

• Convenience
• Merchandise
• Customer Service
• Price
• Low Cost of Operation

June 2000
28
What Will Be The Trend of Retailing

• ..Up To 2006...

January 2003
29
Trend in Retail Non-Food store

• 1. ???????????????????????????????????????
  ? ??????????????????? ??????? ?????????????
• 2. ????????????????? ???? ?????????? B2S
  ??????????????????????????????????????????
• 3. ???????????????????????????????????????
  ??????????????????????????????????????????????????
  ????????
• ???????????????????? SME ???????????????????
• ?????????????????????????????? (soft line)
  ???????? ??????? ?????????????????????????????????
  ?
• 6 ???????????????????????????????????????
  ?????????????????
• 
  Jan 2003

30
Food Merchandise Stores
Supermarket 120
Supercenter Hypermart 132
Convenient Store/Mimimart 7500
10,000 6,000
3,000 500
100 sqm sqm
sqm
sqm sqm
31
Trend in Retail Food store

• 1. Supercenter/Hypermart
  ?????????????????????????????????????
• Supercenter ??????????? 10,000 ???. ?????? 6,000
  ??? ??????????????????????????????? ?????????
• 3. ??????????????????????????????????????
  ?? ?????????????????????????????????????????
• 4. ?????????????-?????????? 100-500
  ???. ????????????????????????????????????????
  ?????????????????????????????
• ??????????????????????????????????????????????????
  ??????????????????????????????????????????????
• ??????????????????????????????????????????????
  ??????????????????????????????????????????????????
  ??? ????????????????? ????????????????????????????
  ?? ???????????????????????????????????
• 
  
  

32
A
B
A
B
C
Trade Area Theory
33
A
B
C
A
B
C
Trade Area Theory
34
What Will Be The Trend of Retailing

• ..Up To 2010...

35
Trends for Retail 2010

1. No more one size fit all
2. Incoming Community/Lifestyle Mall (Weekend vs
   Weekday Shopping Location)
3. Multichannel Retailing
4. Multiformats
5. Changing Roles of Suppliers and Retailer
6. TechnologyM Commerce

36
Questions ?
37

• Retail Business
• Concept

38
??????? 5 ??????????????????????????????
39
??????? 5 ??????????????????????????2004

• 1. ???????????????????????????
• 2. ???????????????????????????????????
• 3. ?????????????????????????????????????
• ?????? ??????????????
• 4. ???????????????????????????????
• 5. ???????????????????????????

40
1.???????????????????????????
41
???????????????????????????
1. Customers always go where they get
good value ?????????????????????????????????
????????????? 2. Customers always go where they
are treated well ???????????????????
????????????????????????? 3. When the value
isnt obvious ,the customers slips away.
????????????????????????????????????????
???, ?????? ???????????????????????????????
????
42
???????????????????????????

• Number of walk pass your store for day/week
• Number of walk in your store for day/week
• Number of buyer (Transaction) per day/week
• Total sale per day/week
• Average Baht sale per buyer(Transaction)
• Who is your buyers today ? Gender, age, where,
  when, why
• Who should be your customers tomorrow ?

43
2. ???????????????????????????????????
44
???????????????????????????????????

• Every Business has a Market Position and Image
• How you place yourself in
• the mind of the customer
• is most important

45
???????????????????????????????????

• To Position Effectively
• You Must Be Different, Stand out,
• and Memorable

46
???????????????????????????????????

• Product
• Price
• Ease of accessibility
• value-added services
• customer experience

47
???????????????????????????????????

• Less for much less (Southwest Airlines)
• The same for less (Wal-Mart)
• The same for the same
• More for the same
• More for more

48
3. ??????????????????????????????????????????
??????????????
49
???????????????????????????????????

• 1. Management Information
• 2. Customer Information
• 3. Financial Information
• 4. Productivity and Efficiency
• Information

50
1. Management Information

• 1. Transaction Average / Transaction Count
• 2. Gross Profit(?) VS Gross Margin()
• 3. Inventory Value
• 4. Inventory day
• 5. Operating Expense (OPEX)
• 6. Net Profit

51
2. Customer Information

• 1. How would you define your customer using
  demographic
• characteristic ?
• 2. How many customer walk through your front
  door every
• day/every month ?
• 3. How many customer make purchase
  everyday/every
• month
• 4. How much does your average customer spend
  with you
• each visit?
• 5. What of your customer live within
  1KM/3KM/5KM
• 6. What are the ten most popular products or
  services
• your customer buy from you ?
• ???

52
2. Customer Information

• From the Research showed that
• 1. Some 30 will shop from 8.00 to 17.00
• Monday through Friday
• 2. Another 30 will shop from17.00 to 22.00
• Monday through Friday
• 3. The remaining 40 will shop on
• Weekend

53
3. Financial Information

• 1. Profit Loss Statement
• ????????????
• 2. Balance Sheet Statement
• ?????
• 3. Cash Flow Statement
• ???????????

54
4. Productivity and Efficiency Information

• 1. Sales per square meter
• 2. Sales per square meter by department
• 3. Sale per employee
• 4. Sales per hour/day/week/month
• 5. Gross margin return on space (GMROS)
• 6. Gross margin return on labor (GMROL)
• 7. Gross margin return on Inventory (GMROI)

55
4. ?????????????????????????????????????
56
4. ?????????????????????????????????????

• Waste is worse than Loss
• ??????????/?????????
• ????????????????????
• Thomas Edison

57
5. ???????????????????????????????
58
THE RETAIL MIX
59
The Retail Mix

• 1. Store Location
• 2. Merchandise Selection
• 3. Store Atmosphere and Layout
• 4. Merchandise Replenishment
• 5. Stock Management
• 6. Retail Promotion
• 7. Personal Selling

60
Strategic and Technology only deliver promise

• People and Process deliver result

61
?????????????????????????

• 1. ??????????????????? ?
• 2. ?????????? ? ?????? ??????????
• 3. ???????????????????????? ? ??????? ????
  ??????
• 4. ????????????????????????????????????? ?
• 5. ?????????????????????????????????? ?
• 6. ???????? ??????? ?????????????????? ???????

62
Location

• Location..Location..Location

63
Location
???????????

• ?????????? (Trade Area)
• ????????????? (Site Selection)

64
???????????????????????????
65
Business ConceptvsLocation
Business Condept ?????????? Location ????
66
Business Concept.?

• Store Concept
• Customer Profile
• Location Acquire
• Merchandising
• Layout Design
• Operation Process
• System
• Financing

67
?????????????????????????? Location
68
?????????????????????????? Location
?????????? ??????? ????????????????????????????
??????????????????????? ????????? ????? ????
????? ?????????????? ????????????????????????????
?????????????? ??????????????????????????????????
?
69
?????????????????????????? Location
?????????????? ??????? ?????????????????????
????????????????? ???????????????????????????????
????????? ????????????????????????????????????????
??????????????????????????????????????????????????
??????????
1 / 13
70
?????????????????????????? Location
?????????????????? ??????????????????????? ??????
??????????????????????
71
?????????????????????????? Location
??????????????????????? ?? 6 ???????????

1. ??????????????????????????????????????????????????
   ???
2. ????????????????????????????????????????????????
3. ??????????????????????
4. ???????????????????????????????
5. ???????????????????????????????????
6. ???????????????

72
?????????????????????????? Location
??????????????? ??????????????????
1. ??????????????? ????????????????????????????
????????????????????????????? ????????????????????
??????????????????????????????????????????????????
????? ????????????????????????????????????????????
????????????????????????? ???????????????????????
?????
???????????????????
? ?????????????????????????????????????????????
???????????????????
73
?????????????????????????? Location
2. ???????????????????????????????????????????????
??? ????????????????????????????????????????????
???????, ????????????
????????
??????????
????????,????????
?????????????????,?????????????????
?????????
74
?????????????????????????? Location
????????????????????????????????????
?????????????????????????????????????????????????
?????????? ??????????????????????????????????????
?
75
?????????????????????????? Location
3. ????????????????????????????????????
??????????????????????????????????????????????????
???????????????????????? ?????????????????????
???????????????????????????? ?????????????????????
???????????????????????????? ?????????????????????
??????????????????????????????
76
?????????????????????????? Location
4. ?????????????????????
????????????????????????????????
?????????????????????????????????????????
????????????????? Traffic Count
?????????????????????????????????????????????????
?
77
?????????????????????????? Location
5. ???????????????????????????????????????
?????????????
?????????????????????????????? ???????????????????
????????????????????????????????????????????????
??????????????????????????????????????????????????
??????????????????????????????
78
??????????????????????????????????????

• ??????????-???????
• ?????????????????????
• ????????????-???????
• ??????????-??????????
• ????????????????
• ????????????????????
• ??????? ????

79
?????????????????????????? Location
?????????????? ?????????????????????????
????????????????????????? ???????????????????????
??????????????????????
80
??????? ??? ?? 50,000 ???

• ???????.??? !!!

81
?????????? !!!!!!!!!!!!!!!!!

• ???????.. ??????
• ????????????????????

82
??????
100 80 70 60 50 20 30
40 50 ??????? 4 6 8
10 ??????? 4-10 ?????? ????
1/5 ??????????????
??
????????????
???????????
??
???????????????????
????/??????
???????
83
??????
??
????????????
????????????? ?????????????????????? ??????? ????
?????????????? ????????????
???????????
??
???????????????????
????/??????
???????
84
??????????????? ?????? ?????????? ????
85
?????????????????????????? Location
????????????????????? ????????????????????????????
?????????????????
?????????????? ?????????????????????????
????????????????????????? ???????????????????????
?????????????????????????
86
???????????????????????????????????
87
(No Transcript)
88
(No Transcript)
89
Trading Zone Analysis (Four Factors)
90
Catchment or Trade Area Analysis

• Population Coverage
• Day Time Population Dimension
• Traffic - Transportation Pattern
• Traffic Origin Tricker
• Traffic Destination Tricker

91
Product Factors

• Major Anchor
• Minor Anchor
• Floor Plan , Layout
• Design Glimmick
• Facilities
• Marketing Activities
• Dead End Elimination

92
Competitor Factors
93
Accessibility Factors

• Traffic Facility
• Traffic Flow
• Traffic Barrier
• Exit Entrance Access
• etc.

94
Catchment Factor
Competitor Factor
Product Factor
Accessibility Factor
How to Manage ????
95
Not INVEST
INVEST
Rental
Depreciation
96
INCOME
LEASE RENTAL
SERVICE
97
EXPENSE
DEPRECIATION
OPERATION EXPENSE
98
(No Transcript)
99
Merchandise Management
100
Retail Strategic Management
Retail Positioning
Retail Cost Advantage
By Prof. Dr. Douglas Tigert
101
Retail Positioning

• Location

- Layout
- Convenience

• Product

- Assortment
- Quality

• Value

- Price VS Quality
- Convenient in time and location
- Fun to shop

• Communication

- Image VS Product

• People Service

- Staff
- Shopping Environment
- Service Security
102
Retail Cost Advantage

• Logistics

• Technology

• Vendor Relation

103
8 ???????-??????????????????????????????
???????
- ??????????? - ???? - ?????????/??????
??????
???? (MIS)
?????????????????
- ??????????? - ???????????? - ?????/??????
- Concept ??????? - ???????? - ?????????????
??????
????????? ??????
??????
???????
- ???? - ??????
- ?????? - ??????? - ????????
104
Retail Significant Factors
Margins
Space
GMROS
GMROI
Inventory
People
GMROF
105
For a Retailer to reduce GP, it must also find
a way to reduce expense. Otherwise.
106
THE PRODUCTIVITY LOOP
Superior Execution
Lower Cost Structure
Higher Sales
Lower Prices
Adapted from Mandel, Jr., Stephen F. A
Competitive Challenge How Supermarkets Can Get
Into the Productivity Loop, International
Trends in Retailing, Vol.. 8 No. 1 (Spring,
1991), p. 40 Used with permission
107
Key Competition in 21st Century
Retailer
Better Faster Cheaper
Closer
consumer ??????
Supplier ??????
Supply Chain Management
Demand Management
Enable Technology
108
Key Competition in 21st Century
Enable Technology
Supply Chain Management
Demand Management
Supplier ??????
consumer ??????
Category Management
109
Merchandise Management
110
Merchandise is the Total Value offer to the
Customer Is the Basis of Profitability
111
Merchandising Management means to build sale and
improve efficiencies of profit through
merchandising process or .. Category
Management ????????????????????
????????????????????? ????????????????
??????????????????????????????????????????????????
?????????????????????? ?????????????????????????
?
112
How can we defined Merchandising Concept?

• Store Concept

• Who will target customer ?

• What will they buy ?

• When will they buy ?

• How will they buy ?

• Why will they buy ?

113
Level of Service
Wholesale club
Supermarket
Category Specialist
Specialty/ Department Store
All Goods No Service
Optical Center
Restaurant
Airline
Bank/ University
All Service No Goods
Full Service
Pre-Selection
Self Selection
Self Service
114
Merchandising Concept

• Product Mix

• Price Mix

• Place

• Promotion Mix

• People

• Profit

115
Retail Positioning by Product Range
(Product range Assortment)

• Customers must be given reason why shop with one
  retailer rather than another
• The product range helps to position a retailer
  against its competitors
• The range may be geared towards high quality,
  strong fashion, product selection, or offering
  value for money
• If price is the main motivator, the product range
  must represent the best price value around

116
Contrasting wide and deep Assortment Strategies
117
Competitive Advantage Assortment

• Dominant Assortment

• Velocity Assortment

• Competitive Assortment

• Opportunistic Assortment

118
Product Selection
????????????????????????????????

• Fit into concept

• Fill in the Merchandise
• Assortment

• Quantity / Reliability

• Method of Delivery

• Stock Turnover

• Space Management

119
Product Mix

• Traffic Builder VS Profit Builder

• Variety VS Assortment

• 80/20 Rule

120
Place

• Store Layout

• Product Presentation

• Space Management

121
Profit

• Profit Mix

• Maximize Turnover

• GMROI

122
GMROI (Gross Margin Return to Inventory)

• Stock 0.5 Month ROI 24
• Stock 1.0 Month ROI 12
• Stock 1.5 Month ROI 8
• Stock 2.0 Month ROI 6
• Stock 2.5 Month ROI 4.8
• Stock 3.0 Month ROI 4
• Stock 4.0 Month ROI 3

123
GMROI (Gross Margin Return to Inventory)
124
Apply GMROI for Buying

• ????????????????????????
• ??????????????????????????????????????????????
  ? ?????????????? ??? ??? ????????????????? ???
  ???????????? ???????????? ??? ??? ?????????? ???
  ???????????????????? ??? ???
• ??????? ????? ???????????????

????????????????????????? ??? ???
?????????????????? ?? ?????? ??????????????? ???
??????
125
Whats Choice We TAKE
126
Space-allocation (Product Profit VS Sales)
Profit Builder Restrict amount of space, but
allocate best quality in order to boost volume
Star Performance Allocate large amounts of good
quality space
High
Product Profit
Space Wasters Consider eliminating
Traffic Builder Use to pull customer through
the store
Low
Low
High
Sale
127
Pricing is an art ..

• The art is to make the
• highest possible margin,
• and
• still look reasonably priced in the eyes of your
  shoppers

128
Price

• Setting Retail Price Policy
• EDLP VS High Low
• Price range VS Product Display
• -good better best

129
Pricing Policy

• 1. ???????????????????
• ?????? ?????????? ????2.
  ??????????????
• ??????????? ???? ???????
• 3. ????????????????
• 4. ?????????? ?????????

130
Pricing Mix Method

• ??????????????

?????-????????
?????????
???????-??????
131
Pricing Mix Method

• ?????? ???? ???????
• Pamper Size S 400 10 440
• Pamper Size M 450 10 495
• Pamper Size L 500 10 550
• Pamper Size XL 550 10 605
• 1900
  2090

132
Pricing Mix Method

• ?????? ???? ???????
• Pamper Size S 400 20 480
• Pamper Size M 450 10 495
• Pamper Size L 500 8 525
• Pamper Size XL 550 15 630
• 1900
  2130

133
???? ?????????????????????????????????? ??????????
???????? ??? ??????????????????????????????????
???????????????? Price setting is may be the
most important and the least understood aspect
of retail mix
134
SALES VOL. 80
20
PRODUCT
15
40
5
40
?? 80 / 20
135
Questions ?
136
Store Layout Principles
137
Wants, Needs, Impulse, Promotion

• Wants
• Needs
• Impulse
• Promotion

138
Wants, Needs, Impulse, Promotion

• Needs ????????????????
• (???????????)
• Wants ?????????????????
• (?????????????????
  ?????????????????????)
• Impulse ???????????????????
• Promotion ??????????????????

139
Store Layout
140
Store Layout Grid
141
Store Layout Exposure Opportunity
Negative
20
10
3
25
15
5
10
10
2
142
Store Layout Exposure Opportunity
143
Useful Space
Useful Space
144
Useful Space
145
Store Layout Grid
Stock
Need
Want
Want
Need
Promotion
Impulse
Need
Want
Service
146
Wants, Needs, Impulse, Service
147
?????? ??? ??????????
148

• ????????????????????????????
• ????????????????????
• ????????
• ?????????????

149

• ???????????????
• ??????????????
• ???????????
• ??????????????????
• ??????????

150

• ???????????????????
• ???????????????
• ???????????

151

• ??????????????....
• ?????
• ???????????????????

152

• ???????????
• ??????? ????????????????????
• ?????
• ???????????? ????????
• ????????????????
• ???????????????????????

153
??????????????????????????????