Marketing

Week 8:3/26/2014
Whats Happening
Thought for the Day
Smile
Just Do It!
Blog
Exercise: Best Retailer
A review of the key retailers
Key Developments/Issues
What do you like/not like?




Thought for Today
A life spent making mistakes is
not only more honorable but
more useful than a life spent
doing nothing.
-- George Bernard Shaw
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Just Do It!
Complete reading: Chapters 1-12
Video: Home Depot
Complete Quizzes: 1-8/Extra Credit
Post to your/course blog (at least weekly)
Post your responses to the discussion forums
(week 8)
Work on the Marketing Plan: SWOT Analysis
Exercise
Identify the best retailer (bricks)
What are the characteristics that make them
the best?
Product Mix
Merchandising
Pricing
Locations
Customer Service
Exercise
On a scale of 1-10, with 10 being the best, rate
the following retailers
Best Buy vs. HH Gregg
Walmart vs Target vs K Mart
McDonalds vs Wendys vs Chick-Fil-A
Starbucks vs Panera
JC Penney vs. Macys vs Kohls


Walmart serves customers more than 200
million times per week at more than 11,000
retail units in 27 countries
WalMart employs 2.1 million associates
globally, including almost 1.4 million in the
United States.
Walmart is one of the largest private employers
in the U.S., the largest in Mexico and one of
the largest in Canada as well.
21
Wal-Mart Financials
22
Wal*mart Formats
Source: A.C. Nielsen Channel Service
Over 75% of Walmart Supercenter volume is being captured from
retailers in other major channels.
Each new Walmart Supercenter
averages $1.7million in sales per week
(roughly $900,000 in supermarket item
volume).
If Walmart takes 5% to 7% of the $710
billion grocery industry in 2012, Walmart
will add $35 - $50 billion
Supercenter
Source of Volume
33%
All
Other
32%
Grocery
Chains
22%
Walmart
Discount
Stores
13%
Other
Mass
29
69 different banners
through out the World
30
Walmart Innovations
Experimenting with grocery home delivery
San Jose, San Francisco, Chicago.
Offering same-day deliveries via internet
Partnership with American Express Cards
Self Check out Video
31
Great Britain
Africa
Mexico
Japan
India
Costa Rica
Argentina
Brazil
Canada
Wegmans
41
Wegmans
42
Whole Foods
43
Whole Foods
The list of new leases includes locations in Brea, Calif.,
Charlotte, N.C., Frisco, Texas, Huntsville, Ala., Kennesaw,
Ga., Lexington, Ky., New York (Bryant Park), San Diego,
Schererville, Ind., Tacoma, Wash., Vancouver, B.C., Canada,
Wall, N.J., Wauwatosa, Wis., and Winter Park, Fla. It also
includes acquired leases for seven Greater Chicago locations,
formerly operated as Dominicks stores. Those stores will be
in Edgewater, Elmhurst, Evanston, Lincoln Park,
Streeterville, West Loop and Willowbrook.
Whole Foods Market operates 373 stores and has a total of
107 stores in development.
Whole Foods
Whole Foods
Whole Foods
Whole Foods
Whole Foods
Whole Foods
Whole Foods
Which Retailer?
52
Walgreens
53
Walgreens
54
Walgreens
55
Wawa
Wawa Florida
Wawa
Target
462/200 stores P Fresh
5% Redcards Rewards
Move into Canada
City Target: Chicago,
NY, Seattle, SF, LA
Shopping on the GO
5% of profits to back to
communities
59
Target Move to Food
60
Tesco
61
Lost $1 billion +
Trader Joes
370 stores
$8.5 Billion sales
4,000 skus
$1750 sales/per sq foot
Eclectic mix/Treasure
Hunt
Hawaiian Shirts
Great Customer Service
62
63
Costco

Costco
Costco
Costco
Costco
Costco
Costco
Costco
Costco
Costco
Costco
Costco
Dollar Stores
76
77
Farmers Markets
2012: 7,864
78
Gilt Group
79
Gilt Taste
American Wagyu Steak Duo
American wagyu used to be
considered a pale imitation of
Japanese "Kobe" beef. But that's
changing. By carefully breeding
Angus and wagyu cattle,
Mishima's beef keeps the
incredible richness of wagyu, but
adds the minerally flavor of a
great American steak. This four
steak set proves it.

Additional information
$199.00 Two 6 oz Tenderloin,
Two 14 oz Ribeye

80

Gourmet On the Go:
Good Food Goes Trucking
82
Food Comes to U!
83
The Pop-Up Restaurant
84
The Pop Up Food Store
85

Everyone wants a piece
of your business!

86
Future Issues
87
Social Media
88
89
Social Connections
90
Social media marketing is going to blow the shingles off
the roof once people really figure out how to use it
Megan OConnor, Levi Strauss
E Commerce Retailers
91
Next Generation of Shopping
Try on clothes in 3D, share photos with friends, and store wish-listed items on smart phones
92
Self Checkout
93
Self Checkout
94
Scan-Bag-Go!
95
IBM Checkout Lines
96
Robot Shopping
97
Next Generation of Shopping
98
Ipad/Tablet Changes the World
99
QR Quick Response Barcode
100
A QR code (abbreviation for Quick Response
code) is a specific matrix barcode (or two-
dimensional code) that is readable by
dedicated QR barcode readers and camera
phones.
Virtual Stores
101
Automatic Shelf Replenishment
102
Edeka/Witron:
Germany
Drive Through: Europe
103
Drive Through: Auchan
104
Augment
Why it's
revolutionary: Augment cre
ates instant, 3D models of
products people want to buy
and helps them determine if
it's what they really want.
The company has an
app which allows customers
to visualize how large items
like furniture would look in
their homes.
Michael Kors
revolutionary: Through
difficult economic times,
the brand has
excelled because it has
stayed focused
on the market's sweet
spotpeople with money
who aren't rich yet. Michael
Kors recently surpassed
Ralph Lauren in value and
has inspired collections
from brands like Tory
Burch and Coach.


Storenvy
While big-budget
companies can afford
to make e-commerce
sites special, smaller
businesses often don't
have that luxury.
Storenvy creates a
more level playing
field by allowing its
75,000 vendors to
personalize their
online stores.


RetailMeNot
is the largest digital coupon site in
the world. In the past year, the
company updated its app to include
location-based offers for retailers
ranging from Sephora to Target.
RetailMeNot is expected to grow
to include even more companies
since launching its successful IPO
last summer.


The Container Store
The Container Store offers
unusually good benefits to
workers, and it shows. The
store's customer service is
considered to be among the
best in the retail industry.
The company also works to
make sure that the in-store
experience can't be
replicated online.
Niman Ranch
Niman Ranch has been at the
forefront of the movement
toward free-range, antibiotic-
free meat in the U.S. for the
last four decades. The
company, known for its
quality and taste, supplies
pork and beef to high-end
chefs and large restaurant
chains including Chipotle and
Chopt.


















Nanotechnology
128
Contamination Sensors Pesticide Reduction
Anti microbial Packaging Tracking, Tracing, Brand Protection
Improved Food Storage Texture
Enhanced Nutrient Delivery Flavor
Green Packaging Bacteria Identification and Elimination
129
RF-ID
Alive and well!!
Developments:
Eliminate the check out
process at the store
Improve inventory
management
Reduce mistakes unloading
products inbound/outbound
Monitor temperatures
throughout supply chain
Minimize paperwork


Substitution: Big Box for Small
Digital for Both
130
Future Growth
131
WalMart Growth
Format Actual Projected Projected
2012 2013
Large
Format
>60,000
sq.ft.
153* 120 130
Medium/
Small
<60,000
sq.ft.
1 30 90
Sams Club 9 9 15
Total 163 159 235
132
*43 remodels to Supercenters
Worlds Largest E-Commerce Co
133

Which Food Store?
135
Walgreens
136
Walgreens
137
138
Amazon.com
Sales: $34 Billion
55% North America
45% International
Profits: $1.15
Billion
Inventory Turnover
11/33 days
Accounts Payable 72
days
More e-books than
hardcover and
paperback
Wide variety of
products: clothing,
shoes, sporting
goods, FOOD!
139
140
141
Farmers Markets
2011: 7,175
142
New Players
As one of the largest natural food
retailers in the nation, Earth Fare
makes healthy eating convenient,
affordable, fun and of course
delicious! Louisville, Columbus
Division of Delhaize. 46 stores,
moving into Youngstown,
Cleveland

Publix: One of the finest food
retailers in the US. Took Atlanta in
12 years. Nashville, Tennessee

TJs: Opened in Louisville.
Lexington 2012: 10 stores
On Line Food Sales
143
Consumer Reports May, 2009
ACSI: Consumer Satisfaction
Company/
YEAR
2006 2007 2008 2009 2010 2011 Baseline
Publix 83 83 82 86 84 84 82
Whole
Foods
73 75 76 79 80 78
Kroger 76 75 77 78 78 79 78
Safeway 74 72 75 72 74 75 72
Supervalu 74 74 74 77 74 74 77
WalMart 69 71 68 71 71 69 70
145
Best of the Best
Kantar Retail 2011 Power Rankings
Peapod/Philly
147
Manufacturers Competition
148
Everyone wants a piece
of your business!
A View on Taxes
Whole Foods
Big Moves
Shop Rite grows in Baltimore
Harris-Teeter moves into Washington DC
Bottom Dollar to Eastern Ohio
Aldi comes to Houston
Price Chopper Limited/Prepared Foods
Fresh Market opens in California
Couche-Tard acquires Statoil Fuel & Retail
Dollar General: 625 stores/40 DG Market

151
2013 Retail Market Share
Number of
Stores
Dollar Share Annual Millions
Traditional Grocery 40,333 46.8% $480,138
Total C Stores 152,513 15.4% $158,546
Total Non Traditional
Grocery
54,325 37.8%

$387,529

Dollar Stores 23,418 2.1% $21,492
Total All Formats 247,081 100% $1,026,215
Future of Food Retailing, 2011 Willard Bishop
152
Tesco
153
Big Moves
Target goes to Canada: 130+ stores; rolls out;
loses $1 billion; P-fresh format across the US:
436/200+
Wawa goes to Florida: Tampa/Orlando
154
155
Gordon Food Service
Consumer Reports 2012
33% changed primary
store
43% looking for lower
prices
25% poor selection, long
lines
17% employee rudeness
Not enough checkouts
Wegmans 88
Trader Joes 86
Publix 85
Fareway 84
Costco 83
Harris Teeter 83
Raleys 82
Hy Vee 82
Stater Bros 81
Winco 81
Whole Foods 81
156
Whole Foods