Quiz 12: Retailers, Wholesalers, and Their Strategy Planning
HVC fits the description of a limited line store - that specializes in lines of related products. It might be considered a specialty shop - a type of limited-line store. These types of retail outlets typically offer a limited assortment and high levels of service. As the marketing plan notes, HVC currently does not have its own website. A website could be a useful source of information for customers. There could be links to other resources on pet care. HVC might develop an e-newsletter that could be posted on its website - and linked to e-mails sent to interested customers. This could remind customers about annual pet care needs - for example, the need for refills of heartworm prevention medications. The addition of kennel services to HVC's product offering should be pursued with care. There are clearly operational issues, but from a marketing standpoint it would be extremely important that the kennel services be consistent with the clinic's current positioning (which focuses on "compassionate care"). This could require more service and staff than many kennels now provide - and that could raise costs and prices. As long as HVC feels there is a large enough local target market that is less price sensitive and more interested in service, the kennel could be a success.
The target market for the performance bike is the youth who are keen on biking and who make informed purchases. The customers of the online bike retailer are likely to be aware of their needs and various features of the bikes' parts available in the stock. Realistic information, indication of price, delivery period and customers' experience with the product are critical in the buying decisions. The online merchant must carry the required inventory and must ship within the indicated period. The customer can order the parts online and can receive goods at their place of choice. A traditional bike retailer generally sells assembled bikes of various brands, and the customer will get the delivery of the bike immediately on payment. The recommendations of the retail seller are vital for the purchase decisions. The product range, pricing, and after sales service of the bike retailer is critical for the buyers' decisions and are different from that of the performance bike (online part seller). The bike retailer may have to carry inventory of major bicycle brands meant for all ages and different purposes.
In marketing, the product offered to the final consumer undergoes a series of chain which starts from the manufacturer and ends up to final consumer. The series of chain includes participants like manufacturer, wholesaler, retailer and customer. Retailers are the mediators between the wholesalers and the customers who actually distribute the product to the customers. Retailers engage in all the activities required for the sale of a product. Retailers operates in two ways i.e. either from the stores or without a store using online method. The retailers offered the product to the customers in many ways depends upon the target market. The type of offerings include supermarkets, general store, specialty store, convenience store and online stores. Online offering of products is the latest strategy adopted by retailers. Specialty stores are one of the type of retail store which provides a specific product to the customers. Specialty stores is also a retailing strategy focuses on a particular type of customers. The retailers have the full knowledge about the preferences of the customers on a specified product. Specialty stores offers the type of products which are unique for the customers in terms of quality, availability or brand. The products are purchased less frequently and compare with the alternative products in the market. Customers has to make a plan before purchasing the products from the specialty stores. Thus the kind of products offered by the specialty stores are also refer as the shopping products. Shopping products include mobiles, computers, cameras, clothing, furniture, sports equipment's, washing machines etc. The manufacturers also take the advantage of specialty stores by launching a new product in small quantity to the specialty stores. Manufacturers face less risk in producing the product in smaller quantities and offered to the customers before distributing to the large stores. Specialty stores helps in providing the feedback to the manufacturers for the new product line. By offering a particular product to the consumers, the specialty stores also make an image of exclusivity in the market. Retail chains includes supermarkets and departmental stores where almost all the products are available for the customers. Specialty shops offer only a particular type or brand of products to the customers. The chain of specialty shops refer to the different stores located at different location offering the same special product to customers. The success of chain of specialty shops depends upon the showroom display, community to be served and the ability to attract the customers. The method of offering the product should be same in all the chains of the specialty shop. The chain of specialty stores should obtain products from wholesalers so that timely demand of customers can be fulfilled. The specialty shops should be organized in such a way so that customers get attracted and approach easily for the product.