Marketing Mix: Placement: Retailing & Wholesaling Price: It All Depends On Where To

Marketing Mix Placement: Retailing & Wholesaling Price: It all depends on where to find products! Marketing Fundamentals Antonio Mesa Torres, Professor Universidad del Rosario

Placement / Distribution Channels: chain demand management http://www.revistapym.com.co/destacados/donde-hacen-mercado-colombianos-2016

Higher area = lack of service = higher number of lines = Lower intensive distribution= lower prices

Self-Service Retailers 1. Large Departments Stores / Hypermarkets: Retail organization that carries a wide variety of product lines; typically clothing, home furnishing and household goods; each line is operated as separate department. Lowest intensive distribution. http://www.exito.com/ http://www.tiendasjumbo.co/

2. Supermarkets: Large size, low-medium cost, low margin, high volume that carry a wide variety of food, laundry, and household products. Lower intensive distribution. http://www.carulla.com/

3. Small Wholesalers: Medium size , Higher intensive distribution. Good service and good variety of food, laundry and household products http://www.olimpica.com/ http://www.olimpica.com/nuestras-tiendas/ http://www.surtimax.com.co/

4. Neighbourhood Stores: Highest service level, lowest influence in purchase decision making process by customer http://rcientificas.uninorte.edu.co/index.php/pensamiento/article/viewFile/3982/2801 http://www.revistapym.com.co/destacados/estudio-tiendas-latinoamerica-indica-comoganar-canal-tradicional

5. Convenience Stores : Small Store located near a residential area, open long hours 7 days a week, and carrying limited line of high-turnover convenience goods http://www.oxxo.com/quienes-somos/historia.php

6. Specialty Stores: Carries a narrow line of products with a deep assortment within that line http://www.ktronix.com/ http://www.farmatodo.com.co/

7. Discount Stores: A retail institution that sells standard merchandise at the lowest prices by accepting lower margins an selling high or small volume. http://www.makrovirtual.com/cumara/ http://www.tiendasd1.com/empresa

Gondola Retail Shelving on Isles

Hot and Cold areas

Vertical & Horizontal Analysis ESTRATO 3 Y 4

$ / gramos Marcas (Precio Unitario) Canales de Distribución

Ubicación

Grandes Superficies

Gansito

Ponky

Pipiolo

Chocobarra

Éxito Calle 170

$ 493,33

$ 441.66

$ 514

$ 470

Supermercado

Éxito Súper Carrera 78 calle 8 A bis

$ 493,33

$ 441.66

$ 514

$ 470

Mercado de Barrio

Cooratiendas Calle 167 # 54-37

$ 500

$ 433,33

$ 500

$ 400

Tienda de Conveniencia

On the run Carrera 55 A # 169-39

$ 500

NO HAY

NO HAY

$ 500

Tienda de Barrio

Carrera 78 calle 8 a bis

$ 600

$ 600

$ 500

$ 450

ESTRATO 5 Y 6 $ / gramos Canales de Distribución

Marcas (Precio Unitario) Ubicación Gansito

Ponky

Pipiolo

Chocobarra

Grandes Superficies

Carrera 52 # 125 A- 59

$ 626

$662.5

$ 526

$ 488

Supermercado

Carulla Calle 76 Carrera 11

$ 556,66

$ 478,33

$ 562

$ 502

Mercado de Barrio

Quick Max Carrera 58 # 129-46

$ 700

NO HAY

$ 550

$ 600

Tienda de Conveniencia

Oxxo Calle 74 Carrera 11

$ 600

$ 700

$ 500

$ 500

Tienda de Barrio

Kampala Av Suba 128 A # 58

$ 700

NO HAY

NO HAY

$ 700

• 4. Manufacturers integrating with retailing and wholesaling: Types of retailing and wholesaler strategies High

Low Wholesaling and retailing Manufacturer -owned Store Corners & Shop in Shop

Market

Market

Coverage

Flagship Stores

Coverage

Franchise

Factory Outlets

Manufacturer -owned Store Low

Internet

Pop-up stores

High Low

Commercial Activities Control level

High

High

Two facts are essential: • Quality relation between manufacturer and retailer • Branding process developing posibilities

Focus

Low

Corners: Manufacturer managed using wholesaler infrastructure (Goldola corner, in this case)

Shop in Shop: Department Store´s proposal , taking advantage of clients flow attracted by brand´s blend.

Franchise: Contractual association between manufacturer, wholesaler (the franchisor) and independent business people (Franchisees) buy the right to operate business units.

Flagship Store: retailer's primary location, a store in a prominent location, a chain's largest store, a retailer's most well-known location, a chain's first retail outlet, a store location with decor or merchandise mix that is distinctly different from the rest of the chain. http://www.totto.com/co/totto/noticia/compa%C3%B1ia/tott o-abre-el-primer-flagship-store-en-colombia http://www.totto.com/co/totto/videos-totto

Manufacturer – owned store

Factory Outlets: Off Price retailing operation that are owned and operated by manufacturers and that normally carry the manufacturer´s surplus, discounted and irregurlar godos.

Pop Up Shops: retail space that “pops up” one day and disappears over time. sharp marketers who have new products or a completely new business will lease short term space specifically to test their market, products or business concept

5.Personal direct sales relation with clients The key differentiation from Internet sales, is the human team that facilitate customer relations, through personal connection. The presence of the seller must: • Conveys the brand image • Cater to the needs and basic consumer questions • Actively participates in the "social shopping". Assumes an advisory role, acting as a partner of consumers seeking their benefit and satisfaction. • Transmits institutional company values: trust, respect, innovation etc. It is not only selling a product but an entire brand concept. • It is necessary to implement clear processes of selection, training and vendor management, seeking stability. High turnover among vendors.

6. Differentiation Retail distribution subject to tension between competitors in price and concept development (brand) differentiated High and immediate consumer´s accessibility product comparison The retail sale must develop their differentiation based on: • Development of differentiated range: unique, not accessible to the competition become the brand shopping destination and generate loyalty. • Building brand image: Generate associations in the minds of consumers, affecting the perception of value, facilitates recognition and conveys confidence. • Development of shopping experience: The store becomes the main vehicle of communication and creating customer experiences. Brand positioning based on a differentiated attribute