Chapter 11 Retailing and Wholesaling QUESTIONS AND ANSWERS TO END-OF CHAPTER MATERIAL Hands-on…apply your knowledge Online Retailing Assignment TELUS has a number of strategies to distribute its products. Online retailing is a key component to the TELUS strategy. It is able to do so because of its size and resources. Interview an independent retailer in your local community to determine the benefits and challenges of providing an online retailing offering to the organization’s clientele. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. Video Clip … questions Roots While watching the CONNECT video about Roots, pay particular attention to the store location and layout and answer the following questions: • How would you describe the store’s merchandise mix? Answer: Roots' store merchandise mix is a blend of casual and lifestyle apparel, including clothing, footwear, and accessories, with a focus on comfort and durability. The product range often features seasonal collections and a strong emphasis on Canadian heritage-inspired items. • What is the store atmosphere? Answer: The store atmosphere at Roots is warm and inviting, with a rustic yet modern aesthetic. It combines natural materials, earthy tones, and cozy fixtures to create a relaxed, homely environment that reflects the brand's connection to nature and heritage. • Why do you believe Roots chose that location? Answer: Roots likely chose its location for its high foot traffic and visibility, ensuring accessibility to its target demographic. Prime locations in urban centers or popular shopping districts align with their brand's image and attract customers looking for premium lifestyle products. • What retail positioning strategy has Roots taken? Answer: Roots has adopted a positioning strategy centered on Canadian heritage and quality craftsmanship. It differentiates itself by offering unique, well-made products that embody the essence of Canadian outdoor lifestyle and comfort, appealing to both local and international customers. • How does an online retailing strategy complement this store? Answer: The online retailing strategy complements the physical store by extending the brand’s reach and providing a convenient shopping option for customers who prefer to shop from home. It also enhances customer engagement through digital marketing and allows for broader inventory availability. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers, but sample answers would be that the merchandise mix is broad with select quality items. The store atmosphere is inviting. It helps consumers understand that Roots cares for the environment. The location in the video has heavy traffic and the online component to Roots’ strategy helps build awareness of the quality products in its stores. Infographic… data analysis “Share of wallet” refers to the percentage of a customer’s purchases that a company has in a specific product category. The irony of the term is that as technology evolves, more Canadians are discarding their wallets for more mobile alternatives. The infographic shows that more than half of Canadians would be comfortable never having to use cash again. Furthermore, the dollar value of global payments using mobile devices could almost triple from its 2011 numbers. Review the different alternatives to cash, including Visa, MasterCard, PayPal, and Interac, and try to determine the “share of wallet” these different services have on the mobile banking dollars of Canadians. Use this information to create your own infographic. Note: These assignments give students the opportunity to apply chapter material to a real-life example, using the chapter’s opening vignette as a foundation. There are no specific answers. adAlyze 1. What is the main message you take away from this ad? Answer: The main message is that Lay’s is simple snack solution. The main message from the ad is that the brand offers high-quality, stylish products that embody a unique lifestyle or value proposition. It emphasizes how the product or service enhances the consumer's life, aligns with their identity, or provides a solution to a problem, aiming to resonate emotionally and create a strong connection with the target audience. 2. Why do you think the strategy behind this ad is? Answer: Answers will vary from student-to-student, and it is important to encourage their opinions from a consumer perspective. The strategy behind the ad is likely to build brand affinity by highlighting the product's unique features and aligning it with the consumer's values or lifestyle. By creating an emotional connection and showcasing how the product fits into the consumer's life, the ad aims to drive brand loyalty and increase engagement. It leverages storytelling and visual appeal to make the product memorable and desirable. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: APPLYING MARKETING CONCEPTS AND PERSPECTIVES 1. Discuss the impact of the growing number of dual-income households on (a) nonstore retailing and (b) the retailing mix? Answer: a. Nonstore retailing. Nonstore retailing alternatives such as direct mail may grow as a convenient way for two-income households to shop. Television-assisted and computer-assisted retailing, which is available 24 hours a day, may also increase in attractiveness to these households. b. Retailing mix. Retailers will have to adjust their mix in terms of store hours. Working couples may need to shop at less traditional times. Also, credit cards and telephone ordering may become more important because of the time pressure on these types of households. 2. Imagine that you are considering purchasing clothes at a specialty store not a department store. Explain why you prefer one over another. Answer: Answers will vary on this question. In a specialty store such as Moore’s, the consumer has a large selection of clothes to choose from. The store has tremendous depth in the different lines of clothes. At a department store, the consumer finds a smaller depth of clothes. For example, Moore’s may carry four brands of suits, while the department store may carry only two brands. The variety of sizes and styles for each brand would be larger in the specialty store than the department store. The salespeople at the specialty store will have more product knowledge than the salespeople at the department store, because the former is dealing in clothes exclusively and keeps up with the trends. I prefer shopping at a specialty store over a department store because specialty stores often offer a curated selection of high-quality, unique items tailored to specific styles or preferences. They provide a more personalized shopping experience with expert staff who understand the niche market. Additionally, the focused product range ensures a distinct and memorable shopping experience compared to the broader, less specialized offerings of department stores. 3. List different products that you have purchased online. Give reasons why you chose to purchase online as opposed to going to a retail store. Answer: Answers will vary on this question. Convenience may be one of the factors mentioned. Another factor can be that the product is unavailable at a bricks and mortar retail store. Figure 11-7 shows six reasons why consumers buy online. I’ve purchased electronics, books, and clothing online. I chose online shopping for its convenience, allowing me to compare prices, read reviews, and access a wider selection without geographical constraints. Additionally, online shopping often offers better deals and faster delivery options compared to physical retail stores. 4. Breadth and depth are two important components in distinguishing among types of retailers. Discuss breadth and depth implications for the following retailers: (a) Hudson's Bay (b) Costco (c) Dell, and (d) SportChek. Answer: a. Hudson's Bay. Provides moderate depth and great breadth by carrying a broad product line. b. Costco. Provides great breadth by offering a huge variety of products. Its lines, however, have little depth. c. Dell. As an online retailer of its own product, Dell has large depth by offering many variations of computers but almost no breadth because it only sells computer and computer related products. d. SportChek. Is a specialty store so has only moderate breadth because it focuses on sporting goods only but it has great depth offering many alternatives within one product category. 5. Describe the store atmosphere of the Apple Store. Answer: The Apple Store’s customer-friendly layout encourages consumers to mingle and sample the products. Apple is trying to trademark its distinctive design and layout of its retail store. It has filed an application with the Canadian Intellectual Property Office. If approved, competitors will not be able to copy the Apple layout for their retail stores. The Apple Store is usually quite crowded with people. This frenetic atmosphere draws in even more people who want to be part of the ‘event’. Every Apple store offers a range of services designed to help customers get the most out of their Apple products, including face-to–face support and advice at the Genius Bar, hands-on workshops and special programs for kids. Apple recently announced a “Friend Bar” where Apple fans can go and discuss any topic or issues they have. 6. Shoppers Drug Mart is a good example of a retailer using scrambled merchandising. Visit this store and list the products that you feel are unrelated to a traditional drugstore. Answer: The modern drugstore such as Shoppers Drug Mart carries food, cosmetics, camera equipment, magazines, paper products, toys, small hardware items, and pharmaceuticals. At Shoppers Drug Mart, products such as gourmet chocolates, home decor items, electronics, and seasonal gifts illustrate scrambled merchandising. These items are not typically associated with a traditional drugstore, which traditionally focuses on pharmaceuticals and health-related products. 7. Comment on this statement: The only distinction among merchant wholesalers and agents and brokers is that merchant wholesalers take title to the products they sell. Answer: Agents and brokers provide a limited number of channel functions, whereas many full-line merchant wholesalers perform all channel functions. Additionally, agents and brokers make their profit from commissions or fees paid for their services, whereas merchant wholesalers make their profit from the sale of the merchandise they own. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: DISCUSSION FORUM Imagine that a wealthy uncle leaves you a large inheritance, and you decide that you will use it to start a retail chain of stores selling environmentally friendly products. First, you develop a retail plan. 1. Suggest what information will go into each of these sections of your plan: • Type of retail outlet, and ownership • Level of service to be provided • Merchandise mix, merchandise lines, breadth and depth • In-store versus nonstore retailing • Pricing considerations • Store locations • Target market Answer: Each of the sections above is covered in the textbook. Students will offer a variety of solutions. Be sure to encourage creativity and ask why certain decisions were made in order to apply learning. 1. Type of Retail Outlet and Ownership: Outline whether the stores will be standalone, franchises, or part of a chain, and specify ownership structure (e.g., sole proprietorship, partnership). 2. Level of Service to be Provided: Define whether the stores will offer full-service, self-service, or a mix, detailing customer assistance levels and personalized services. 3. Merchandise Mix, Merchandise Lines, Breadth, and Depth: Describe the range of eco-friendly products, including specific lines (e.g., clothing, home goods), and the variety and quantity within each line. 4. In-store versus Nonstore Retailing: Decide whether to focus solely on physical stores, e-commerce, or a combination, detailing the advantages and logistics of each channel. 5. Pricing Considerations: Set pricing strategies based on cost, competitor pricing, and perceived value, considering both premium and competitive pricing models. 6. Store Locations: Identify optimal locations based on market research, foot traffic, and proximity to target demographics, such as urban centers or eco-conscious neighborhoods. 7. Target Market: Define the demographic and psychographic profile of the target customers, such as age, income, and environmental values. 2. What other considerations will you need to make in planning your retail stores? Answer: These discussions are meant to generate class discussion. The discussion will depend on the original information shared by the students. There are no correct or incorrect answers. Other considerations for planning retail stores include: • Supply Chain and Inventory Management: Ensure a reliable supply chain for eco-friendly products and implement efficient inventory management practices. • Store Design and Layout: Create a store layout that reflects the brand’s commitment to sustainability and enhances the shopping experience. • Marketing and Branding: Develop a strong brand identity and marketing strategy to attract and retain customers, emphasizing the environmental benefits. • Regulatory Compliance: Adhere to local regulations and standards for environmentally friendly products and store operations. QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES: INTERNET EXERCISE For many consumers, comparison shopping on the Internet can be tedious because they have to search multiple websites. One solution is to go to web sites that do price comparisons. Here are some examples: PriceBat.ca is 100% Canadian-owned premier price comparison shopping site. It’s easy to search & compare prices of computer products, electronics and games at Canada online stores. The link to the site is http://www.pricebat.ca/ PriceCanada.com is a Canadian Shopping Comparison Service that lets you compare pricing, products, and retailers. The link to the site is http://www.pricecanada.com/. Try each of these websites to find the best price for a product of your choice. How do the websites differ? Which do you prefer and why? Answer: Comparison of PriceBat.ca and PriceCanada.com: • PriceBat.ca offers a focused search for electronics and games, making it ideal for tech enthusiasts. Its interface is streamlined for Canadian online stores. • PriceCanada.com provides a broader range of products and retailers, offering more extensive comparison options beyond electronics. Preference: I prefer PriceCanada.com for its wider product range and more comprehensive comparison features, catering to various shopping needs. BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS ROOTS: FLASH MOB Synopsis Roots was established in 1973 and has grown to more than 120 locations in Canada and the United States. Roots also has over 40 stores in Asia. It is well-known for its leather goods, active athletic wear and home furnishings. The company’s values of quality, integrity and longevity were established by co-founders Michael Budman and Don Green. The company has a strong commitment to health, wellness and protecting the environment. Teaching Suggestions 1. To ensure all students are familiar with the iconic Canadian brand, have them spend some time navigating the Roots home page particularly the About Us section found at http://about.roots.com/on/demandware.store/Sites-RootsCorporate-Site/default/Page-Show?cid=ABOUT_US# Answer: Roots Home Page Exploration: Students should visit the to understand the company's history, values, and commitment to quality, integrity, and environmental sustainability. 2. Have students explore the online retailing site at http://canada.roots.com to help get a sense of the Roots online retailing strategy. Answer: Roots Online Retailing Strategy: Students should explore the (http://canada.roots.com) to analyze their online retailing strategy, including product offerings, website layout, customer experience, and integration with their physical stores. BRING IT TO LIFE: VIDEO CASE – PRINTOUT ROOTS: FLASH MOB Roots was established in 1973 and has grown to more than 120 locations in Canada and the United States. Roots also has over 40 stores in Asia. It is well-known for its leather goods, active athletic wear and home furnishings. The company’s values of quality, integrity and longevity were established by co-founders Michael Budman and Don Green. The video highlights a Flash Mob at a Toronto retail store. The company has a strong commitment to health, wellness and protecting the environment. Since consumers are becoming more and more aware of the impact of their purchases on the environment, green products become increasingly available and more emphasis is being placed on marketing these strategies. For example, apparel companies have begun to produce environmentally friendly clothing. For example, Roots continues to employ sustainable practices through using eco-friendly materials and manufacturing clothes out of organic or recycled cottons. The company continues to develop more eco-friendly products each year. Roots has made protecting the environment a core value. It believes the environment is one of the most critical issues of our time. Along with some of the world’s leading environmentalists, Roots demonstrates its commitment through its actions and financial support of environmental organizations. A partial list of environmental organizations that Roots works with includes the David Suzuki Foundation, the Canadian Wildlife Federation, and the Jane Goodall Institute of Canada. The larger strategy being considered in Canadian retailing and business is corporate social responsibility (CSR), where companies voluntarily conduct business in a manner that is sustainable from an economic, social, and environmental standpoint. Not only is CSR important locally, but Canadian companies see the value of incorporating their practices on an international scale. Considering what Roots is doing with its stores and apparel, it is surprising not to see them in Maclean’s list of the “Top 50 Socially Responsible Companies 2013.” Seeing Roots’ competitors, such as Adidas, Nike, and Gap, get recognized helps confirm the importance of CSR in Canadian retailing. Questions 1. The first task and developing a retail strategy is to define the target market. Describe the target market of Roots. Answer: Target Market of Roots: Roots targets environmentally-conscious consumers who value high-quality, sustainable products. Their market includes individuals interested in leather goods, activewear, and home furnishings with a focus on eco-friendly practices and ethical sourcing. 2. Store atmosphere is related to the positioning of the store. Write a positioning statement for Roots and describe the store atmosphere. Answer: Positioning Statement and Store Atmosphere: Positioning Statement: "Roots offers premium, eco-friendly apparel and home goods for consumers who prioritize sustainability and quality in their lifestyle choices." Store Atmosphere: The store exudes a natural, earthy vibe with a focus on comfort and warmth, featuring a clean, rustic aesthetic that reflects the brand’s commitment to environmental responsibility. BRING IT TO LIFE: VIDEO CASE WORKSHEET ROOTS: FLASH MOB Name: Section: This video looks at Roots. Please answer the following questions once you have watched the video and read the case: 1. The first task and developing a retail strategy is to define the target market. Describe the target market of Roots. Answer: Target Market of Roots: Roots targets eco-conscious consumers who seek high-quality, stylish, and sustainable products. Their target demographic includes individuals who value ethical practices and are willing to invest in premium leather goods, activewear, and home furnishings that align with environmental and social responsibility. 2. Store atmosphere is related to the positioning of the store. Write a positioning statement for Roots and describe the store atmosphere. Answer: Positioning Statement and Store Atmosphere: Positioning Statement: "Roots delivers premium, environmentally-friendly apparel and home products for discerning consumers committed to sustainability and timeless style." Store Atmosphere: The store features a warm, inviting atmosphere with natural materials and a clean, rustic design, reflecting Roots' dedication to comfort, quality, and environmental stewardship. BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS ROOTS FLASH MOB 1. The first task and developing a retail strategy is to define the target market. Describe the target market of Roots. Answer: The target market for Roots are upscale male or female consumers who appreciate the quality of roots products and their impact to the environment. 1. Store atmosphere is related to the positioning of the store. Write a positioning statement for Roots and describe the store atmosphere. Answer: A sample positioning statement is as follows: Roots is a quality store where consumers can shop for leather goods and athletic wear in a comfortable and inviting atmosphere. The store atmosphere is warm and friendly allowing consumers to browse and purchase items that are good for them and the environment. BRING IT TO LIFE: NEWSFLASHES SYNOPSIS AND DISCUSSION QUESTIONS Two interesting NewsFlashes and a Focus on Ethics are included in this chapter. Discussing these in class can bring the material to life for the students in an interesting, relevant, and timely fashion. They can be used as ice-breakers to launch into a relevant subject. Many of the topics are interesting to students and may be familiar. A. TURNING LOONIES INTO BILLIONS Dollarama is the largest dollar-store chain in Canada, with well over 800 stores across the country with the potential to grow further. Founded in 1992 by third-generation retailer Larry Rossy, this publicly traded company is focused on providing customers with compelling value in convenient locations, and offering a broad assortment of everyday consumer products, general merchandise, and seasonal items. Questions 1. What benefits does a corporate chain business model offer Dollarama? Answer: Benefits of a Corporate Chain Business Model for Dollarama: The corporate chain model offers Dollarama centralized control over inventory, pricing, and branding, allowing for economies of scale, streamlined operations, and consistent customer experiences across all locations. This efficiency enables Dollarama to maintain low costs and high profitability. 2. Given the price of its typical product, how do you explain the success of Dollarama? Answer: Explanation for Dollarama’s Success: Dollarama’s success can be attributed to its ability to offer a wide range of products at very low prices, meeting the needs of cost-conscious consumers. The company's strategic focus on high-volume sales and efficient supply chain management allows it to deliver significant value while keeping operational costs low. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. Sample answers could explore centralized decision making creating a consistent consumer experience at all stores. Also, Dollarama’s success could stem from high volume and substantial markup on its products. B. IT’S NOT EASY GOING GREEN Since consumers are becoming more and more aware of the impact of their purchases on the environment, green products become increasingly available and more emphasis is being placed on marketing these strategies. For example, apparel companies have begun to produce environmentally friendly clothing. For example, Roots continues to employ sustainable practices through using eco-friendly materials and manufacturing clothes out of organic or recycled cottons. The company continues to develop more eco-friendly products each year. Questions 1. Describe the target market that retailers such as Roots that are adopting green practices are trying to reach. Answer: Target Market for Green Retailers: Retailers like Roots target environmentally conscious consumers who prioritize sustainability and eco-friendly practices in their purchasing decisions. This market segment values products made from organic, recycled materials and supports brands that actively reduce their environmental impact. 2. Considering a retailer you have made a purchase from, identify three changes they can make to their practices that would support a green economy. Answer: Three Changes for Supporting a Green Economy: • Adopt Sustainable Materials: Use organic, recycled, or biodegradable materials in products and packaging. • Reduce Energy Consumption: Implement energy-efficient practices in stores and manufacturing processes. • Promote Recycling Programs: Encourage customers to recycle products and packaging, and establish take-back or recycling initiatives. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. C. THE BEST BUY ON THE FLY Customers have long known the Toronto-based retailer Holt Renfrew & Co. Ltd. for providing luxury clothes, shoes, cosmetics and accessories. The luxury retailer’s president, Mark Derbyshire, is frustrated with recent customer complaints he is hearing about. Some customers feel intimidated by the store, overwhelmed by the high prices or unable to find their sizes. Consumers also said that the sales clerks have a chilly attitude that intimidates them. Derbyshire is determined to conquer this poor reputation. Questions 1. What does the introduction of Best Buy Express kiosks mean for its retail stores? Answer: Best Buy Express Kiosks Impact: The introduction of Best Buy Express kiosks allows Best Buy to provide a convenient, quick-service option for purchasing electronics and accessories in high-traffic locations, like airports or malls. This model enhances accessibility and convenience for customers who need products on the go while reducing the need for large retail spaces. 2. What other products would you feel comfortable purchasing through this non-traditional retailing method? Answer: Other Products for Non-Traditional Retailing: Other products suitable for non-traditional retailing methods include travel essentials (e.g., toiletries, snacks), health and wellness items (e.g., vitamins, first aid supplies), and basic tech accessories (e.g., phone chargers, headphones). These items benefit from quick, accessible purchasing options similar to Best Buy Express. Note: These discussion questions are meant to generate lively in-class discussion and critical thinking on the chapter material. There are no correct or incorrect answers. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: TURNING LOONIES INTO BILLIONS Dollarama is the largest dollar-store chain in Canada, with well over 800 stores across the country with the potential to grow further. Founded in 1992 by third-generation retailer Larry Rossy, this publicly traded company is focused on providing customers with compelling value in convenient locations, and offering a broad assortment of everyday consumer products, general merchandise, and seasonal items. All stores are corporate-owned and provide customers with a consistent shopping experience. Dollarama’s uncomplicated approach to its business involves operating clean stores, maintaining a consistent inventory of name brands and house brands, and dealing directly with suppliers. Under this no-frills strategy, the company has seen growth every year since it opened in 1992. The stores have accepted debit cards since 2008. Dollarama introduced new price points in 2009 and again in 2012 and now sells $1.25, $1.50, $2.00, $2.50, and $3.00 items alongside its traditional $1.00 items, as well as select items at $0.69. A leader in the industry, Dollarama knows the importance of investing in technology as it invested heavily in this area to increase efficiency during its growth. An estimated 4,000 items line Dollarama’s shelves year-round, and an additional 700 or so are seasonal products. This ability to capitalize on seasonal demand is widely admired. “They run it like the U.S. Marines,” says John Williams, a retail consultant. “When Christmas is out, they go into Valentine’s Day, and when that’s out, they go into Easter.” Food, drinks, and other so-called consumables, currently represent 37 percent of a Dollarama’s store stock. These items are not obscure, low-quality brands being sold cheaply, but a mix of Dollarama house brands and name brands. Popular brand names such as Pepsi and Lay’s chips are prominently displayed. Sometimes, rather than seeking out brand-name merchandise, Dollarama creates its own. Kids now seek out Studio notebooks, made for Dollarama, the same way they once sought out Hilroy for back-to-school. Dollarama sources many of its suppliers directly and gets involved with the product design, packaging, and labelling. Dollarama has 70 house brands, still a novel concept in the dollar-store world. There is no denying that Dollarama dominates the Canadian dollar-store sector. There are thousands of “mom and pop” dollar stores, but only one other national dollar-store chain, Dollar Tree Canada. It has just 160 stores. There are also three large franchise operations—Dollar Store with More, Great Canadian, and Buck or Two—but combined they operate less than 300 stores. What percentage of Dollarama’s customers fall into each of those two camps—rich and poor—is not entirely clear? In the United States, dollar stores undeniably rely on the lower class for business. But Canadian dollar stores seem to draw from a wider demographic. “There’s a type of consumer who may drive a Mercedes but get their stationery from a dollar store,” says retail consultant Wendy Evans. “You’ll see them buying a no-name brand and driving luxury cars and wearing designer clothing. They care about brands for some things and not others.” Retail analyst John Williams argues that the dollar-store industry is now in a “mature phase.” Others contend there is still plenty of room for growth. In Canada, there is a dollar store for every 32,000 people, far less than the one per 15,500 people in the United States. Dollarama’s current plans call for opening an additional 70 to 80 stores per year across the country. Questions 1. What benefits does a corporate chain business model offer Dollarama? Answer: Benefits of Corporate Chain Model: Dollarama’s corporate chain model ensures consistent store experience, streamlined operations, and direct supplier relationships. This uniformity helps maintain quality and inventory control while enabling effective large-scale purchasing and cost management. 2. Given the price of its typical product, how do you explain the success of Dollarama? Answer: Success Explanation: Dollarama’s success is driven by its broad assortment of affordable, everyday items, including well-known brands and in-house products. The chain’s ability to adapt to seasonal demands and its strategic pricing across multiple price points attract a diverse customer base, ensuring broad appeal and repeat business. BRING IT TO LIFE: FOCUS ON ETHICS PRINTOUT AND WORKSHEET Name: Section: IT’S NOT EASY GOING GREEN According to the Environmental Careers Organization (ECO) Canada, the green economy includes “inputs, activities, outputs, and outcomes as they relate to the production of green products and services.” In essence, by “reducing resource consumption, harmful emissions, and minimizing all forms of environment impact,” a new economy is created that can not only save money and our world, but also create career opportunities. ECO Canada is a non-profit organization whose vision is to build the world’s leading environmental workforce. It does this by creating an online resources for careers and training. Since consumers are becoming more and more aware of the impact of their purchases on the environment, green products become increasingly available and more emphasis is being placed on marketing these strategies. For example, apparel companies have begun to produce environmentally friendly clothing. For example, Roots continues to employ sustainable practices through using eco-friendly materials and manufacturing clothes out of organic or recycled cottons. The company continues to develop more eco-friendly products each year. Roots has made protecting the environment a core value. It believes the environment is one of the most critical issues of our time. Along with some of the world’s leading environmentalists, Roots demonstrates its commitment through its actions and financial support of environmental organizations. A partial list of environmental organizations that Roots works with includes the David Suzuki Foundation, the Canadian Wildlife Federation, and the Jane Goodall Institute of Canada. The larger strategy being considered in Canadian retailing and business is corporate social responsibility (CSR), where companies voluntarily conduct business in a manner that is sustainable from an economic, social, and environmental standpoint. Not only is CSR important locally, but Canadian companies see the value of incorporating their practices on an international scale. Considering what Roots is doing with its stores and apparel, it is surprising not to see them in Maclean’s list of the “Top 50 Socially Responsible Companies 2013.” Seeing Roots’ competitors, such as Adidas, Nike, and Gap, get recognized helps confirm the importance of CSR in Canadian retailing. Questions 1. Describe the target market that retailers such as Roots that are adopting green practices are trying to reach. Answer: Target Market for Green Practices: Retailers like Roots target environmentally conscious consumers who prioritize sustainability and eco-friendly products. This market includes individuals who are willing to invest in higher-priced items if they align with their values of reducing environmental impact and supporting ethical practices. 2. Considering a retailer you have made a purchase from, identify three changes they can make to their practices that would support a green economy. Answer: Supporting a Green Economy: For a retailer like Walmart, changes could include: (1) increasing the range of sustainably sourced products, (2) implementing energy-efficient technologies in stores and distribution centers, and (3) reducing plastic packaging and promoting recycling programs to minimize waste. BRING IT TO LIFE: NEWSFLASH PRINTOUT AND WORKSHEET Name: Section: THE BEST BUY ON THE FLY Great companies not only seize opportunities but also adapt to their changing environment. As the consumer landscape changed, Best Buy began expanding its web presence and its Best Buy Express kiosks. With these non-traditional retailing options in place, Best Buy considered subleasing some of its space. For example, it created a store-within-a-store kiosks for Samsung products. In early 2013, Best Buy Canada launched its Best Buy Express kiosk in the Halifax Stanfield International Airport. At that time, there were 14 Best Buy Express vending machines across Canada, with plans to continue growing. Although the product offerings are not as robust as a traditional retail store, Best Buy Express uses target marketing to offer 60 different products, including headphones, digital cameras, and tablets. Forgetting your important technology accessories can reduce the pleasantries of travel. According to Peter Spurwa, VP of concession and development at the Halifax International Airport Authority, “It's been a pleasure working with Best Buy to bring this innovation to our airport—another example of our commitment to providing our passengers with new and creative retail options.” Looking west, Best Buy Express automated kiosks are also available in Toronto Pearson International Airport as well as on BC Ferries. Further expansions of this option are coming. Back in 2008, the concept of Best Buy Express began with Chris Stidman, VP of strategic planning at Best Buy. The vision was to create a solution to help the customer who shows up for a flight without his BlackBerry. Prices at kiosks match the Best Buy stores, except for any clearance promotions. Similar to purchasing a can of soda or bottle of water from a vending machine, Best Buy Express kiosks allow you to browse the selection, choose your item, and then pay by debit card or credit card. Questions 1. What does the introduction of Best Buy Express kiosks mean for its retail stores? Answer: Impact on Retail Stores: The introduction of Best Buy Express kiosks allows Best Buy to extend its reach and offer convenience in high-traffic areas like airports and ferries. This strategy reduces the need for extensive retail space while maintaining brand visibility and accessibility for tech products. 2. What other products would you feel comfortable purchasing through this non-traditional retailing method? Answer: Other Products for Kiosks: Other products suitable for non-traditional retailing include travel accessories (like power banks and travel adapters), essential personal care items, and small electronics (such as headphones and portable chargers), which are practical for travelers needing quick purchases. BRING IT TO LIFE: METRICS ASSIGNMENT CALCULATING MARKUPS – WORKSHEET Name: Section: How to calculate markups based on cost: Assume a cost price of $100 and a selling price of $200. Markup based on cost = selling price – cost price/cost price. In this case, 200 – 100/100 = 100%. Therefore, they markup based on cost equals 100%. How to calculate markups based on selling price: Assume again a cost price of $100 and a selling price of $200. Markup based on selling price = selling price – cost/selling price. In this case, 200 – 100/200 = 50%. Therefore the markup based on selling price equals 50%. Question 1. Assume a cost price of $25.00. Assume a selling price of $75.00. Calculate the markup based on cost price and the markup based on selling price. Answer: BRING IT TO LIFE: METRICS ASSIGNMENT CALCULATING MARKUPS – ANSWERS 1. Assume a cost price of $25.00. Assume a selling price of $75.00. Calculate the markup based on cost price and the markup based on selling price. Answer: Markup based on cost = selling price – cost price/cost price. In this case, $75.00 – $25.00/$25.00 = 2, which translates to 200%. The markup based on cost equals 200%. Markup based on selling price = selling price – cost/selling price. In this case, $75.00 – $25.00 /$75.00 = 50/75 = 0.667, which translates to 66.7%. The markup based on selling price equals 66.7%. Solution Manual for Marketing: The Core Roger A. Kerin, Steven W. Hartley, William Rudelius, Christina Clements, Harvey Skolnick, Arsenio Bonifacio 9781259030703, 9781259269264, 9781259107108
Download
Close
Close
