MKTG30006 : Retail Management
31 Jul 2015
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Document Summary
Supermarket mainstay of grocery retailing for decades, but currently experiencing decline self service stored non food items 10 25% located in cities and urban neighbourhoods facing intense competition from other grocery formats not particularly profitable small margin for fresh foods (between 1 3%) for something like shampoo making profit margin of upwards 30% Attractiveness of a particular sector/market to new entrants dependant on: market profitability, how long will it be until we turn a profit, barriers to entry, capital requirements, how much cash, marketing costs, how loyal are the customers, economies of scale, to make a profit need to expand quickly what are the barriers to that, access to customers or availability of sites, differentiation, brand identity & store loyalty, expected retaliation, access to supply & distribution. Implement crm programs: collect customer data, customer database, customer transactions: product, price, date, margin, promo activity, customer contacts: record of interactions between customer & retailer, customer preferences: sizes, etc. b.
