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Department
Geography
Course
GGR252H5
Professor
J.Leydon
Semester
Winter

Description
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
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