GGR252 NOTES-good.docx

21 Pages
Unlock Document


GGR252 DEFINING THE MARKET Sept.7.2011 Lecture#1: ORGANIZATION AND THEMES Why study Marketing Retailing? • economic change: growth of services • urbanized society • personal income and consumption Understanding Geography • Spatial discipline • Multi-disciplinary • Importance of location reasoning behind location • Spatial expressions/spatial connections Geography and Retail Marketing • Understanding the consume -population location ethnicity, age groups -socio-economic characteristic a) lifecycle: tracks your life through different stages ( early life parents pick for you, teen you buy everything, post uni obligations and more people to take care of b) lifelevel: income, how much money you can make c) lifestyle: types of cars, house, everyday goods • Location and retail facilities -Type of retail a) Strips, shopping centers, power centers b) Ownership c) Changes in retail structures Retail Strips • Need to be more open, nature friendly so people get out of cars, walk and purchase Planned Retail • Are organized and maintained now more greener space, less parking “village atmosphere” to spend time and money, and diff structure GGR252 DEFINING THE MARKET Sept.21.2011 Lecture#2: DEFINING THE MARKET: DEMAND SIDE Defining the Market • Focus-Toronto Market o Population concentration o Growth in population o Growth in income o Population variation • From the data graphs… o CMA census metropolitan data o Avg household income : - Highest income=closest to downtown area *** More retail diversity at downtown core - Lower income = suburban area *** Less retail diversity • Type of Goods o Convenience Goods: what you need (clothing, food)  Buy close to home o Shopping Goods: big ticket items, travel greater distance to buy (flat screen tv, laptop)  Market Range wont travel far distance for a convenience good  Shift Toward shopping goodmore influenced by advertising than a need for a product *** retail enviro changes to reflect the above Market Segmentation/Socio economic variable • Income o Growth/decline in market income: are people confident about the future? o Purchasing power: recession people buy less (more scared to spend money)  Recession means that shopping goods decrease, convenience goods stay put  However even c.goods tend to see a change spend on necessity foods o Spatial variations in income: impact on store type and product mix  Lower income families spend more on shelter, food and basic needs have decrease for shopping goods o Income and accessibility  Difference between loblaws superstore vs local store • Low income package foods, little fresh food (price is Discretion between expensive) the rich and the o ** sold separately b/c mode of trans would be bus poor o ***lower shopping range • High income expsensive items, fresh food (price is less) o **sold in bulk b/c mode of trans is their car o *** higher shopping range • Age and Household composition o Family size: families are getting smaller (more money to go around with few members) o Lifecycle: GGR252 DEFINING THE MARKET Sept.21.2011 o Aging population: • Variations in family/size o Impacts expenditure: o Impacts product selection o Impacts store type/product mix • Lifestyle o Occupational diff: o Societal pressures: o Marketing: o Individuality: o Ethnicity/Culture GGR252 DEFINING THE MARKET Sept.21.2011 GGR252 DEFINING THE MARKET Sept.28.2011 Lecture#3: UNDERSTANDING CONSUMER BEHAVIOUR Influences (ppl go to closest location is not necessary true) • Travel Patterns o Ppl traveling to school, work etc  retail incorporated into pattern of travel • Household change o Designated shopping roles: before parents(mom) used to buy clothes/food ***they were the one making consumer decisions and so advertisements were directed to role of person buying o Changing family structures: multiple wage earners, families are getting smaller o Family income and distribution: so many people bringing $ into family and so many people purchasing people have choice (before ppl used to eat 2gether but now ppl have diff schedules. *** ppl have choice between foods/clothes/ect. • Past experiences o Location: shop around designated routes/convenient/accessible to us o Influenced by price: more expensive go far o Quality: buy items with good quality and return o Personnel: ppl in store important(treat customers right need to know when to provide service and when to step back • Advertising and rewards GGR252 STRUCTURE OF RETAILING Oct.12.2011 Lecture #4: Retail Structure (The shopping Center/mall) Suburban Associations • Land Uses o Require a lot of land space cost of land very important *** look for land that is relatively cheap • Distance o Not located beside houses o They are accessible near major highways where ppl not walking driving • Planned Retail Enviro o Controlled by developers Shopping Mall Types - 2 things determine type • Size neighbourhood vs. community o N: convenience/service, within suburban development, trade area radius=1.5 miles o C: convenience/ shopping, intersection of 2 main route, tar=1-3 miles • Focus regional vs. super regional o R: shopping goods, expressway and main roads, tar= 3-7 miles o SR: shopping goods, intersection of expressways, tar= 10 miles + -To consider: • Period of Construction • Function and Market Focus • Store Types and Trade Area Design and Spatial Organization • Anchor Tenants o Include major department stores (Zellers, Bay, Sears) • Controlled Traffic Flows o # entrance/exit points restriction for consumers (ex. Come in one way and leave one way) • Structure of pathways o Curved vs. Straight  Curved= more displace space + attract more  Straight= attract less because focus attention straight o Difference  Speed at which ppl move through it if curve=slow down and look at wall display • Segregation of stores/customers o Level: higher up = more expensive store, better lighting, seating Lower down= more clustered=diff ambience o Music you play attract diff groups o Segregation for age male vs. female *** segregate diff consumer groups diff groups do not get along GGR252 STRUCTURE OF RETAILING Oct.12.2011 Advantages • Predictable Traffic Flows o Determines sales • Mitigation of planning issues o Don’t have to worry about cleaning/lighting already there • Cooperation among stores o Competition with other outside centres not stores within Limitations • Market Growth o Built for specific market once reached market limit, can’t change=expensive ***when capacity reach=build new center rather than build on new one • Competition o External competition, retailers leaving losing rent • Ability to React o Huge institution= slow to reach to change Post 1990’s Development • Problems with department stores o Being all things for all people (used to work but not anymore) reduce what 2 sell *** become more boutique like • New Anchors o Have more specialized stores instead of department stores o Narrow niche may not attract as many • Competition from alternative formats • Costs and Tenants dissatisfaction • Age and Ambience o Malls aging rebuild=really expensive • Hybrid o Power center and shopping mall combo= provide duality of both worlds GGR252 STRUCTURE OF RETAILING Oct.19.2011 Lecture #5: Structure of Canadian Retailing Structure of Canadian Retailing • Level of Concentration • Change in format, location o 30 years ago retail economy was controlled by i.dent retailers (mom/dads store) o Now its big retail strips/retail niches o D.ment stores are more organized o *** shopping centers becoming less important, power centers becoming more important Independent Stores • General Decline o Great difficulty in competing in the retail economy  Big retailers have resources to advertise, offer low prices  Corporate control • Exceptions o Specialization  These will continue to survive (small in #)  ex. When you go into leons would be hard to find furniture for older neighbourhoods (*** specialized lighting and furniture) o Ethnic  Embedded with the ethnic community-service local pop base  In suburban area targeted to ethnic pop  In urban target isn’t to ethnic pop b/c there is diverse community  ***when ethnic pop move away=stores don’t have much business 2 give • Locational Issues o Urban  Market specialization (entertainment, restaurant) o Suburban  Existing Ethnic population Department Stores Organized by departments (trying to be all things to all people) • Key Developments o Changes in Location  Expansion into the suburbs (locational change taking place)  Until the 1960’s ppl went to the downtown core to do their shopping  *** as fewer ppl were moving away need to bring d.ment stores to the other areas of the city o Arrival of American Retailers  late 1960’s American retail took hold of American marketCanadian stores had to implement (sears, k-mart) • Restructuring 1980’s-90’s GGR252 STRUCTURE OF RETAILING Oct.19.2011 o Acquisition, Arrivals and departures(remove competition and increase market share)  Bay acquires Simpsons, walmart and k-mart  Walmart acquires woolcoshut down any unionized retailers because they would have to pay more  Eatons bankruptcy • Competition and market focus: from Wal-Mart • Profitability: they didn’t figure out what their market was • Acquisitions by bay and sears: taken out competition=inc market share • Sears to the eaton chain: to get access to prime urban locations • Implications of Restructuring o Rationalization  Decline in the # of stores and reorganization of leases • Future of D.ment Stores o Declining Significance(not going to disappear but are losing importance)  New Formats • Closing of departments • Focus on fashion: have own brand name • Big box formats outside mall: furnishing etc.  Interest from U.S department stores • Value of the CAN$ less attractive market b/c they have to pay more • ***don’t have enough wealthy ppl in CAN Retail Chains  Multiple # of stores owned by the same organization • Specialized o Market Niche: most of the retail chains focus on fashion o Economies of scale: advertising (they advertise for all Bay stores in CAN) • Concentration of ownership o To increase your market share and get rid of competition • Locational Characteristics o Associated with shopping malls and power centers • Future o Some retail chains have gone out of business because of large costs Franchises They are showing capital risk on the individual • Product and Trade name o Business Format: determines what you sell, how you sell, attractive o Franchise agreement: o Adv/Disadv  Very expensive  Tied into this • They determine the suppliers • They determine the advertising GGR252 STRUCTURE OF RETAILING Oct.19.2011 • They take a portion of the net sale o Trends: the growth area in the economy because everyone wants to be their own boss Lecture #6: Retail Retail Principles • Must meet the requirements of the local population o Ppl aren’t going to travel far distances to shop • It must attract consumers from outside the community o Needs to bring revenue from outside the area • It must provide an ambience that retains consumers and helps to create a strong sense of community o Create an area where ppl want to stay and spend time and shop GGR252 STRUCTURE OF RETAILING Oct.19.2011 Lecture #7: Big Box Formats, Category Killers, Power/Smart Centers Definition and Strategies • Big box/category killers o Fairly recent, get rid of many of the small businesses they sell more than one thing • Tracking technology, sales, purchasing volume o Sell to a certain income group o If you can control the volume of sale then they can better offer products Categories/Formats • Food Superstores o first one was loblaws (category killers)Walmart came and tried to take over Loblaws but Loblaws opened superstores • Fashion/factory outlets to retail chains o selling seasonal clothing (moved into these power centers=cheaper) • Automotive o C.Tire is the only big box store which specializes in automotive (walmart was a competition) • Entertainment power centers o Have to be accessible by car • Other o Hardware (RONA), craft (MICHAELS), book (CHAPTER) Location Characteristics • Land costs, car accessiblity o Located around highways • Greenfield o Used for farming and agriculture • Brownfield (rezoning) o Cheaper lands • Spill over/generative effects o one thing appears in that area and other things start to come in to (Pizza pizza and boston pizzaestablished market so consumers will go to either) Impact of power/smart centers • I/dent stores/retail strips o they have become ethnic based and specialized • Shopping malls/department stores o Lower rent and no common space • Entertainment facilities o Future shop and best buy multiple screen show a variety of movies GGR252 STRUCTURE OF RETAILING Oct.19.2011 Reaction to power centres/ smart centres • department stores fight back – new formats o The bay has created new formats outside of the bay itself ex. Bed bath beyond o Sherway gardens – power centres surround sherway gardens o Reorganizing – anchor tenants = sports che
More Less

Related notes for GGR252H5

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.