By fully understanding customer needs, they are able to maximize profits and provide a commercially viable range of merchandise at competitive prices. Some tasks included as a buyer are regularly reviewing performance indicators, such as sales and discount levels, managing plans for stock levels, reacting to changes in demand and logistics, meeting suppliers, plan advertisements and promotional sales and negotiating terms of contract and getting feedback from customers (Buyers (Retail
It is an approach that gives more value to the customers by satisfying their expectations on key quality/service/features/performance attributes while exceed their price expectations by providing at low costs. Companies that offer products/services relatively at low prices and offer substantial differentiation on
From the viewpoint of the customer, there are some advantages of buying a product under oligopolistic market. Firstly, customers may have many choices. Oligopolies sell various branded goods because of the characteristics of imperfect competition. One of the characteristics of oligopoly is non-price competition. It is a less risky strategy.
Kmart’s supply chain includes organizations, resources, people, activities and information or moving products from supplier to end customer. It involves ordering to suppliers, transportation of products, storage of products in warehouse, moving products to Kmart stores and finally providing products to customers. Kmart supply chain takes care of entire flow from manufacturing to warehouse till stores. General merchandise and apparel products for Kmart are produced directly by factories located in Bangladesh, China, India, Cambodia and Indonesia. Illustration of Kmart using Porter’s Model: The Porter’s model was created by Michael Porter in 1979.
In a low-cost strategy, focus is on low pricing and efficiency (Parnell, 2008). Companies that operate with a low-cost strategy typically offer basic products and services that appeal to a mass market of bargain-price minded consumers. Most businesses using this strategy are large and established and focus on low-operating costs, low initial investments, basic-quality low-cost items, and high operating and distribution efficiency. Challenges of the low-cost strategy are high price competition, product and leadership imitation, and technological obsolescence. In a differentiation strategy, focus is on products or services that can be readily distinguished from its competitors (Parnell, 2008).
Market Extension Merger: Market Extension Merger is a kind where the companies selling same or similar product lines but in different market sectors. The main idea for market extension merger is to gain access to a wide market area which in turn increases the customer base. Example: Amazon and Alibaba 4. Product Extension Merger: A type of merger that combines the companies which sells the related or similar products in the same market segments. This merger allows companies to combine their products and gives access to a wide set of customers which implies to earn huge profits.
The main ideas of this theory are: People want convenient, cheaply priced goods when shopping; businesses aim to get more profit by attracting the most customers; consumers aim to travel short distances to by goods as it costs less. Settlements with larger populations are available to support more functions. Lower order goods which are those that are needed every day – are more easily available and come in larger quantities There are four main concepts that link up with this theory, these are: Central place: an urban settlement that provides goods to the area around it Threshold population: the amount of customers to keep the business running The Sphere of influence: the area that a business’s customers come from The range of goods: the distance that people are willing to travel to get the product. •
ALDI supermarkets, a well-known retailer in business, focused on retaining and gaining customer’s loyalty on those who were already familiar with the ALDI brand. ALDI’s main objective is getting its message across which is offering the best quality products at the lowest price possible. One of ALDI’s marketing strategies is the ‘Like brands’ by which ALDI created high quality products similar to those products of a well-known brand and competitors, but with a lower price. ALDI created blind tastes of these ‘like brands’ where people can taste ALDI’s brands and the national brand to see if they can make a
One way to get competitive advantage is through Cost Leadership. This means that one can gain advantage by simply selling a product or a service at a reasonably low price, a price that you can handle. Information System can help a business gain this advantage easily. As Dr-Othman Alsalloum , who Working at King Saud University, stated, “Use information systems to achieve the lowest operational costs and the lowest prices.” Wal-Mart is an example of this competitive advantage; it has lower prices than any other market. The reason behind this is that they use Information Systems to maintain efficiency in their supply chain.
In addition companies need to deliver their products while keeping cost effectiveness in consideration. If they understand the perceived benefits of their target audience and are able to engage with them on a personal level, they can attain customer satisfaction and ultimately can have increased sales. In conclusion, conveying Unique Value proposition clearly to the customers could be a complete win/win for any business. Brand equity Formal Definition: The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. Alternative Definition: Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.