July 1, 2011
3.1 & 5.1
Discuss the possible marketing implications of the recent trend toward supercenters, which combine a supermarket and a full line discount store.
Supercenter combine a full line of groceries and general merchandise with a wide range of services, including pharmacy, dry cleaning, portrait studios, photo finishing, hair salons, optical shops and restaurants all in one locations. These superstores make it more difficult for the local stores as there are more services under one roof and the products are most likely cheaper at the superstores. Marketing of superstores focus on the mobility of the population and all that comes with that, for example traffic conditions and infrastructure. What the working population looks like in terms of demographics and psychographics, what the living and storage spaces look like and of course the size of the city, the larger the city is, the more companies and alternatives are available. Superstores use price as an effective marketing mechanism in order to attract customers.
1. Product offering: Everything under one roof, need to be convenient, customer friendly hours open, good merchandise mix, Example Target sells brand name clothes cheap, Target offers a credit card
2. Place: location is a top draw, need high traffic area
3. Promotion: Circulars
4. Price: Price is critical, Superstores use price as an effective marketing mechanism in order to attract customers. Use sales to attract customers and price matching and rebates.
5. Presentation: Don’t want it to feel like a warehouse
What advantages does franchising provide to franchisors as well as franchisees?
When you buy a franchise, you are buying an established concept that has been successful. Statistics show that franchisees stand a much better chance of success than people who start independent businesses; independent businesses stand a 70 to 80 percent chance of NOT surviving the first