..................................................... 8 2.1 Concept of Supply Chain Management.......................................................... 8 2.2 Elements of the Supply Chain......................................................................... 9 2.3 Three levels of Supply Chain Management.....................................................11 2.4 Supply Chain Management Technology…….................................................. 13 III. The supply chain solution for Multinational giant Retailers in China................. 13 3.1 Wal-Mart’s development in China............................................................. 14 3.1.1 When Wal-Mart first came into China............................................. 14 3.1.2 Challenges Wal-Mart met in China.................................................. 17 3.1.3 Wal-Mart’s supply chain solution in China....................................... 17 3.3 Carrefour’s development in China ............................................................. 17 3.2.1 Introduction of Carrefour ............................................................ 19 3.2.2 Learn from Taiwan’s experience entering into China....................... 19 3.2.3 Supply chain...
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...Traditionally, Wal-Mart has essentially had a low-cost, high volume strategy. The strategy aims at customer satisfaction through low prices and relatively good customer service. Here are the basic details. • Low cost: Wal-Mart has lower operating expenses than the industry average. The primary cost advantage is Wal-Mart’s superior distribution capability (location of stores, inside-out growth patterns, cross-docking, superior information management). Quantitative details on cost advantage are set forth in Section 3 below. • High Volume: Industry analysts watch Wal-Mart’s growth of sales figure very closely. Wal-Mart’s prices are low by the industry standard, which, combined with its lower costs, indicates a strategy that aims at growth in volume through grabbing increased market share (cf. Dell). • Customer Satisfaction: Low prices, advanced data management and extremely motivated employees (“10 ft rule”, “sundown rule”) means a better customer experience than at other discount retailers, even though Wal-Mart remains a self-service retailer. In addition, the large size of the traditional Wal-Mart stores adds convenience by offering a one-stop solution by offering a wide range of products. In the words of Sam Walton, “Wal-Mart’s aims at creating a loyal customer base by lowering their cost of living through offering quality and other products at significantly lower prices, while surprising them on the convenience and service level side.” It’s worth mentioning that Wal-Mart acquired...
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...relationships with these customers. Primarily, the company has worked on improving its customer relationship management (CRM) which “enables companies to provide excellent real-time customer service through the effective use of individual account information.” (Kotler & Keller, 2009). In 1999 Hershey put in place a $112 million enterprise resource planning (ERP) and CRM system. The new technology was meant to bring the company’s business practices up to date and provide across-the-board automation that would span the process from order-taking to truck-loading. Unfortunately, due to initial problems in getting customer orders into the new system and transmitting the correct details of those orders to warehouse for shipping, Hershey got behind on their delivery and consequently lost over $100 million (Turk & Bligh, 2004). In an effort to repair damaged customer relationships stemming from the serious failures the year before, in 2000 Hershey implemented a new strategy that focused on fulfillment speed and agility. The company understood better than ever its key U.S. customers’ needs: efficient, customer-driven processes able to flex with the changing market requirements (Hoffman, 2001). Hershey placed a major emphasis on collecting information from its core set of customers such as Target, McLane, Wal-Mart and CVS. The company used a logistics team as well as other corporate resources in marketing and planning to put together a view of these customers’ expectations for the...
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...Emerging Trends in Modern Retail Formats & Customer Shopping Behavior in Indian Scenario: A Meta Analysis & Review “If at first the Idea is not absurd, then there is no hope for it.” -Albert Einstein Aditya P. Tripathi* Abstract The Indian retail sector is going through a transformation and this emerging market is witnessing a significant change in its growth and investment pattern. Both existing and new players are experimenting with new retail formats. Currently two popular formats hypermarkets and supermarkets are growing at a rapid pace. Apart from the brick –mortar formats, brick -click and click-click formats are also increasingly functional on the Indian retail landscape. Consumer dynamics in India is also changing and the retailers need to take note of this and formulate their strategies and tactics to deliver the exact expected value to the customer. In the backdrop of all these developments the present paper makes an attempt to: Explain the emerging trends in the development of Modern Retail formats in Indian Context and Highlights the emerging Rural Retail Landscape and also, Reveals the Consumer Shopping Behavior (Across the Country) among the Modern Retail Formats with special reference to Delhi & NCR. The empirical data has been collected with the help of Primary as well as secondary resources. Key Words: Hypermarket, Convenience Store, Retailing, Malls, Shoppers Introduction India has witnessed a frenetic pace of retail development over the past...
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...organized environment easier for customers to choose and find the desired item themselves. They will put these mini markets strategically positioned in close proximity to residential areas and neighborhood customers to facilitate their daily expenditure. Nowadays 99 Speedmart supported by three distribution centers with a size of 80,000 square feet, 65,000 square feet and the third distribution center with size of more than 100,000 quare feet. 99 Speedmart able to achieve economies of scale in bulk purchasing of goods, thus helping to improve efficiency and reduce costs. At 99 Speedmart, they always offer low prices every day and saving can be delivered to all customers. This store started in 1987 as a small grocery store and up to now have more than 300 branches throughout Malaysia. 99 SPEEDMART’ HISTORY Starting at year 1987, 99 Speedmart with form of a traditional “mom and pop” sundry mart called Pasar Raya Hiap Hoe by Mr. Lee Thiam Wah in Tepi Sungai Klang. Mr.Lee starts a business with very humble beginning and only through personal interaction with suppliers and customers. After doing business for 5 years, which is in 1992, the first store of that name 99 opened in KlangUtama. Pasar Mini 99 named by Mr. Lee with a move for realizing the vision to build an integrated chain. Selection of number 99 symbolizes longevity and continuity in Chinese is the underpinning philosophy behind his vision. With sheer dedication and hard work, Mr. Lee expands Pasar Mini 99 to eight other...
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...her holdings from time to time when the company sold stock for what she felt was a reasonable valuation, and up to that time she did not sell any of her shares. Having watched Costco grow from 265 warehouses to 365 worldwide, and from sales revenue of $21.8 billion to $34.1 billion, she wondered what factors led to such successful growth. She also wanted to determine whether those factors would hold consistent going forward. At this point, Costco was one of a special breed of retailers called wholesale clubs. Unlike other retailers, wholesale clubs required that customers purchase annual memberships in order to shop at their stores. Costco operated a chain of warehouses that sold food and general merchandise at large discounts to member customers. The company was able to maintain low margins by selling items in bulk, keeping operating expenses to a minimum, and turning inventory over rapidly. Costco’s closest competitors were SAM’S Club (a division of Wal-Mart) and BJ’s Wholesale, which both operated as wholesale clubs. Other competitors included general discounters (such as Wal-Mart), general retailers (such as Sears), grocery store chains (such as Safeway), and specialty discounters (such as Best Buy). Torres first considered investing in Costco because she herself was a member. She was impressed by the company’s low prices and noticed in particular that her local Costco was always crowded. She decided to research the company and started, as always, with their annual...
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...Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated losses of around $200–300 million per annum in Germany over the five-year period. According to analysts, the main reason for Wal-Mart’s losses was its failure to understand German culture and the shopping habits of Germans. Though Wal-Mart was famous the world over for its Every Day Low Pricing (EDLP),3 which turned it into the world’s No. 1 retailer, it could not make an impact in...
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...[pic] SUMMER TRAINING REPORT ON CATCHMENT STUDY OF FOOD BAZAAR [pic] IILM INSTITUTE FOR HIGHER EDUCATION GURGAON IN THE PARTIAL FULFILMENT FOR THE AWARD OF POST GRADUATE PROGRAMME IN RETAIL MANAGEMENT SUBMITTED BY DEEPAK KUMAR PGPRM 2006-08 CATCHMENT STUDY OF FOOD BAZAAR [pic] DECLARATION This project is my original work done on behalf of IILM INSTITUTE FOR HIGHER EDUCATION under the guidance of Mr.Amit kumar, Food bazaar category head north zone and college mentors Mrs. Swaran Kanta and Mrs. Smita shelly, Faculty IILM. As well as with the great help of Food bazaar category team north zone. The material provided in this report is original and has not been submitted anywhere for any other diploma or degree. This data is completely confidential, hence the findings and analysis would not be shared in this document and outside too . so should not be share with any other places or organization. Signature of student Name : Deepak Kumar Date PREFACE I am Deepak Kumar doing post graduate program in retail management (PGPRM) student of Integrated Institute of Learning Management (IILM), Gurgaon, Haryana. undergone summer training program at Zonal office (North Zone) with Future group in Gurgaon. I have been assigned a task to do the ‘CATCHMENT STUDY OF FOOD BAZAARS IN NORTH ZONE”. In this topic there...
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...Lecture 1 – Chapters 1 and 2 Chap 1 Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return * Deal with customers, satisfying customers’ needs * Attract new customers by promising superior value * Keep and grow current customers by delivering satisfaction Marketing Process Understand the marketplace and customer needs and wants * Customer needs, wants and demands * Needs: status of felt deprivation, Maslow hierarchy of needs (Physiological, Safety, Belonging – Love, Self-esteem, Self-actualisation) * Wants: form that human needs take as they are shaped by culture and individual personality * Demands: humans wants that are backed by buying power * Conduct consumer research and analyse the large amount of data * Marketing offerings * Combination of products, services, information or experiences offered to a market to satisfy a need or want * Marketing myopia: mistake of sellers paying more attention to the specific products offered by a company rather than to the benefits and experiences produced by these products ~ focus on existing wants and lose sight of the underlying needs * Value and satisfaction * Satisfied customers will make repeated purchases and tell others about their good experience * Dissatisfied customers will switch to competitors and disparage the product to others ...
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...1 March 30, 2003 To the reader: You are enrolled in a principles of marketing course. This publication is intended to supplement your lecture materials. As you read through the text, note that it is keyed to illustrations used in class. The course is divided into three sections. Section one covers introduction to marketing, consumer behavior, industrial buyer behavior, the marketing environment, where marketing fits into the organization, market segmentation, and product differentiation. Section two covers product and pricing. Section three covers promotion (sales) and distribution. As you read the book, consider that it is organized as follows: marketing and its environment (consumer behavior, industrial buyer behavior, marketing environment), product, pricing, promotion, and distribution. So, coverage begins with introductory concepts and proceeds into the marketing mix elements (product, price, promotion and place). You may wonder whether this book covers all aspects of marketing. No, it does not cover all aspects of marketing. You will find only basic concepts herein. If you seek specific, contemporary examples of marketing concepts, check out a traditional textbook from the library or purchase a recent edition from a used book store. Try the Perreault and McCarthy textbook (14th edition) or the Kotler and Armstrong textbook. Section I: Concepts of Marketing A. Who is a Marketer? Consider first that marketing is driven by people and their needs. It is people driven...
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...Contents Entering the retail sector in Central Europe Tesco’s expansion into the Czech Republic International Marketing 2006 Séverine Delaporte Ilona Juřenová Lizhu Ren David Towers MIB 21a Entering the retail sector in Central Europe 0 of 25 Contents 1 Contents 1 2 3 4 5 6 7 8 Contents Abstract Introduction to the Central and Eastern European market Trends in the retail industry 4.1 Retail in CEE countries 4.2 Reasons to expand retail abroad 4.3 CEE countries – retailers’ paradise Tesco’s market entry strategy 5.1 Entry modes 5.2 Tesco’s marketing strategy in the Czech Republic 5.2.1 Focusing on customers needs and wants without losing identity 5.2.2 A multi-format strategy: an adapted distribution policy 5.2.3 Local products that fit customers’ tastes 5.2.4 Aggressive pricing strategy 5.2.5 Adapted communication 5.2.6 Adding value through service 5.2.7 Adapting to changes in the macro-environment 5.3 Evaluation of Tesco’s success within the Czech Republic 5.3.1 The Czech success 5.3.2 Problems within the Czech market 5.3.3 The future within the Czech Republic 5.4 Consumer perceptions of Tesco from the UK and the Czech Republic Conclusion Appendix 7.1 Czech Republic Questionnaires 7.2 UK Questionnaires Bibliography Entering the retail sector in Central Europe 1 2 3 5 5 5 6 8 8 9 10 10 11 11 12 12 12 13 13 14 15 15 17 18 18 21 23 1 of 25 Abstract 2 ...
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...INTRODUCTION TO MARKETING Background Marketing. Several definitions have been proposed for the term marketing. Each tends to emphasize different issues. Memorizing a definition is unlikely to be useful; ultimately, it makes more sense to thinking of ways to benefit from creating customer value in the most effective way, subject to ethical and other constraints that one may have. The 2006 and 2007 definitions offered by the American Marketing Association are relatively similar, with the 2007 appearing a bit more concise. Note that the definitions make several points: * A main objective of marketing is to create customer value. * Marketing usually involves an exchange between buyers and sellers or between other parties. * Marketing has an impact on the firm, its suppliers, its customers, and others affected by the firm’s choices. * Marketing frequently involves enduring relationships between buyers, sellers, and other parties. * Processes involved include “creating, communicating, delivering, and exchanging offerings.” Delivering customer value. The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture worthwhile considering opportunity costs. Value can be created in a number of different ways. Some firms manufacture basic products (e.g., bricks) but provide relatively little value above...
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...[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | INTRODUCTION TO MARKETING [pic] [pic] | | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | |[pic] | | | |[pic] |[pic] | Lars Perner, Ph.D. Assistant Professor of Clinical Marketing Department of Marketing Marshall School of Business University of Southern California Los Angeles, CA 90089-0443, USA (213) 740-7127 INTRODUCTION TO MARKETING Background Marketing. Several definitions have been proposed for the term marketing. Each tends to emphasize different issues. Memorizing a definition is unlikely to be useful; ultimately, it makes more sense to thinking...
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...Introduction to Retail Retail comes from the French word retailler, which refers to "cutting off my hands, clip and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, off my toes paring".[2] Like the French, the word retail in both Dutch and German (detailhandel and Einzelhandel respectively), also refers to the sale of small quantities of items. Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser.[1] Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for...
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...efficiently. Everyone’s maxing out, but it seems like there’s molasses in the works. Sound familiar? Sooner or later, it hits you in the face. Imagine you are meeting up with a senior analyst whose opinion counts with some of your company’s biggest investors. You think you’re on safe ground—after all, your company is doing better than the competition. But the analyst is in full gimlet-eyed, illusion-killing mode. “That’s nothing to crow about,” she says. “Yeah, you’ve got reasonable growth, but it’s nothing exceptional. You’re a safe bet, nothing more. Okay, I might tell my mom to buy, but 3 The Momentum Effect then she’s happy with inflation plus one. The way we see it, you’re really grinding it out. We reckon the strain’s getting harder, too. There’s no impetus—no momentum.” Words like that can really take the gloss off a day. The next time you gather your team, you don’t congratulate them on beating their targets—you want more. Sure, our results are up, you say, but that’s not enough—where’s the impetus? When are we going to do something exceptional? With all the resources at your disposal, when are you going to start building some momentum? The team members look at their papers. Then Paul, an anxious member of your team, looks up and says: “Okay. Got any ideas about how?” What are you going to say?...
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