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Marketing Basics - Kotler Philip

Offered product range

SUGGESTED PRODUCT RANGE . The first classification parameter for retail outlets is the product mix they offer. There are grocery, gastronomic, wine, furniture stores, etc. In a broader sense, we can talk about the breadth and richness of the assortment, highlighting the main types of stores by these signs. The most important are specialized stores, department stores, supermarkets, convenience stores and general stores.

Specialized shops. A specialized store offers a narrow range of goods of significant saturation. Examples of specialized retail enterprises include clothing stores, sporting goods, furniture, flower and bookstores. Specialized stores can be further subdivided according to the degree of narrowness of the offered assortment. Clothing stores are a full range assorted store , a men's clothing store is a limited range store, and a store selling men's shirts that are custom-made is a highly specialized store. According to some experts, the number of highly specialized stores that will take advantage of market segmentation, choice of target segments and product specialization will grow most rapidly in the future. There are already stores that sell only sports shoes, only clothes for tall men (mostly jeans), or only calculators.

Recently, the proliferation of specialized stores has been associated with a boom in shopping centers, usually consisting of one or two department stores and many specialized stores. These stores often account for 60 - 70% of the total area of ​​the shopping center. Most specialized stores are still owned by independent merchants, but the number of specialized retail chains is growing rapidly. The most successful specialized stores focus on fully meeting the needs of specific target markets.

Limited shop specializes in the sale of fashionable clothes for women aged 18 to 35 years who are willing to pay a little more, just to look as it should. The goods are presented to customers in the form of carefully selected sets. The store employees are dressed in the latest fashion. They are the same age as the representatives of the target market, and the store itself is permeated with the spirit of modernity. Having precisely defined its target market, Limited can study the requests of women of fashion from 18 to 35 years old, conduct preliminary tests of fashion novelties, give these new products an uniqueness image, precisely target advertisements and distribute these news to shopping centers.

However, a specialized store may be in an unpleasant situation if the goods of its assortment lose popularity. One such example is described in Box 31.

Box 31. A Fading Stereo Boom

In the 70s, stereo equipment stores were booming. Shops like Tech Hi-Fi, Pacific Stereo and Playback have grown into profitable chains that sell only stereo equipment. Most buyers are young people, primarily college students. However, today many of these stores have either closed or are suffering heavy financial losses.

The reasons for the decline in sales of stereo equipment are explained by changes both in the economy and in electronic technology. Today, young people tend to have less free money than they did ten years ago. But perhaps one of the immediate causes of the collapse of stereo boom was the emergence of a large number of electronic products available to everyone who can afford them. College students are equally likely to spend their money both on the purchase of video equipment or personal computers, and on the purchase of stereo equipment.

Among the stereo equipment stores, only those survived that expanded their product range and changed their marketing strategies. In stores of the company Tim Central, Inc., headquartered in Minneapolis, in addition to stereo equipment, they now sell household computers, video equipment and telephones. Instead of focusing its advertising on college students, the company focuses on older people - owners of their own homes. The New York-based company Crazy Eddy, Inc. also expanded its product range to include other types of electronic products.

Unfortunately, video equipment and computers pose a number of new challenges for retailers. Due to the fact that over the past few years, prices for video equipment have fallen sharply, many retailers are forced to resort to price competition. While retail mark-ups for stereo equipment reach 30 - 35%, on video equipment they make up only 10 - 15%. At the same time, merchants offering a variety of electronic products are faced with fierce competition from the pear of new stores that specialize only in the sale of computers. Computer shops can offer customers a wider choice, as they deal with only one type of product. And lower prices. The sale of telephones provides some comfort to retailers, since the retail margin on them is higher than on other products.

Today it’s not enough to sell only stereo equipment. Retailers are forced to either turn their stores into “electronic supermarkets,” or leave the stage.

Department Stores. The department store offers several assortment groups of goods - usually clothes, household items, household goods. Each assortment group is engaged in a special department store department, headed by its purchasers or traders.

Some experts believe that the department store grew on the foundation of a mixed goods store (since it sells goods of several assortment groups). According to others, the department store is the heir to the textile store (since many of the founders of the department stores had previously owned textile stores). The first department store in history is considered to be the Bon March, founded in Paris in 1852.6 He introduced four innovative principles into the practice of trade: 1) low margins and accelerated circulation of goods, 2) indicating and publicizing the prices of goods, 3) promotion buyers for a quiet inspection of goods without any pressure on them or the obligation to make a purchase; 4) a liberal attitude to the examination of complaints.

Among the first American department stores were Jordan March, Macy, Vanameaker, and Stuart. They were housed in huge stately buildings in the fashionable neighborhoods of urban centers and professed the concept of “shopping for joy.” This was a huge step forward compared to specialized stores of the time, in which little was displayed and which did not encourage the practice of inspecting goods by customers.

In the first years after World War II, the share of department stores in retail decreased, and their profitability declined. Many then believed that department stores, as retailers, entered a phase of decline in their life cycle. Experts pointed to: 1) increased competition between department stores, which caused increased costs, 2) increased competition from other types of retail enterprises, especially discount stores, specialty chains and retail warehouse stores, and 3) heavy traffic, lack of space for parking and degeneration of urban centers, which is why shopping in the business part of the city has lost its attractiveness.

As a result, some department stores closed and some merged. Nevertheless, department stores are fighting for their "return." Many of them opened their branches in the shopping centers of the suburbs with their growing population, growing incomes and better parking conditions. Some department stores have set up “basements for bargain shopping” to counter the threat from discount stores. Others were engaged in reconstruction until the alteration of part of the premises under "fashion shops". Some are experimenting in the field of post-trade and telephone trading. A number of department stores - including Dayton Hudson - have expanded their business to include, in particular, discount stores and specialty stores. Some department stores reduce the number of employees, the number of assortment groups of goods and the number of services for customers such as delivery of purchases and sales on credit. However, such an approach may undermine their main attractiveness, namely, the ability to get better services.

Supermarkets. Supermarket is a relatively large self-service enterprise with a low level of cost, a low degree of specific profitability and a large sales volume, “designed to fully satisfy the consumer's needs for food, washing and detergents, and home care products” 7. A supermarket can also be located in privately owned, although most of them are part of networks. According to the data for 1981, the largest supermarket chains are Seyfay with a turnover of $ 16.5 billion, Kroger - 11.2, Lucky Stars - 7.2, American Stars - 7.1 , A&P - 6.8, Wynn-Dixy - 6.2 and Jewel - $ 5.1 billion.

The origin of the supermarket can be attributed to two sources - the opening in 1912 by John Hartford of the Great Atlantic and Pacific tee company (A&P) of food stores that sold only for cash and did not deliver purchases to their homes and shops “Piggly-Wiggly” owned by Clarence Saunders, in which self-service first appeared in 1916, turnstiles for customer access and settlement units. However, supermarkets reached great popularity only in the 30s. It is believed that the first truly prosperous supermarket was a store opened in 1930 by Michael Cullen. It was a grocery and gastronomic self-service store that traded in cash, did not deliver home purchases and had a sales area of ​​about 560 square meters. m. in contrast to the usual for shops of those times areas of about 75 square meters. m. Cullen achieved a sufficiently large turnover to profitably trade with a gross profit of 9-10% of the total sales, which amounted to only half of the gross profit of food stores of that time. Over the next two years, 300 supermarkets were opened, and by 1939 their number had grown to approximately 5,000 and they accounted for 20% of the total trade in grocery and gastronomic goods. Today there are more than 37 thousand supermarkets, and their share in the trade in grocery and gastronomic goods is 76%.

The success of supermarkets in the 30s was facilitated by several factors. The Great Depression made consumers think about prices, and entrepreneurs were given the opportunity to buy goods cheaply from suppliers in distress and rent large premises for a minimal fee. The massive proliferation of private cars pushed the distance problem into the background and promoted the habit of shopping once a week, which weakened the need for the services of small local shops. Progress in the production of refrigerators has allowed both supermarkets and consumers to store perishable foods for longer. The new packaging technology made it possible to offer consumers food "convenient for storing containers and packaging (jars and boxes), rather than displaying them in bulk store packaging (barrels or boxes). All this stimulated the sale of branded goods through advertising, which led to a decrease in the number of sellers needed in the store. Finally, the unification of grocery and meat products departments and agricultural products departments under one roof made it possible to make all purchases in one place and began to attract buyers from afar, which provided supermarkets with the volume of goods needed for successful operations.

To further increase sales, supermarkets took steps in several directions. Shops have become larger and now have retail space of about 1700 square meters. m, not II00 sq. m, as in the mid-50s. Today, most chains consist of fewer, but larger stores. Supermarkets sell a wide variety of goods. In 1946, a typical supermarket offered 300 different products, and today about 8,000. The number of non-food items — over-the-counter medicines, cosmetics, household supplies, magazines, books, toys, which today account for the largest share — has grown. 8% of the total turnover of supermarkets. The “assortment pile” continues, and many supermarkets start selling prescription drugs, household goods, records, sporting goods, hardware, garden tools and even cameras, trying to find highly profitable products to increase their profitability. In addition, supermarkets improve their capabilities by choosing more prestigious locations, building more spacious car parks, more thoughtful architectural design and interior design, lengthening working hours and work on Sundays, and also by offering a wide range of services for customers, such as collection of checks, arrangement of lounges, broadcasting of music programs. Mutual competition between supermarkets in the field of propaganda activities has also intensified due to intensive advertising, issuing set-off coupons, and gambling devices. And in order to be less dependent on national brands and increase their share of profits, supermarkets switched mainly to selling goods under private labels. At the same time, the number of supermarkets in the states of the Sun belt is growing, where the economic growth rate is higher8.

Consumer goods stores. A convenience store is relatively small in size, located in the immediate vicinity of the residential area, is open until late all seven days a week and offers a limited range of high-demand everyday goods. As an example, you can refer to the stores "Seven Ileven" and "White hent pantriz." The duration of these stores and their use by consumers mainly for making purchases with the goal of "filling gaps" make them establishments with relatively high prices. However, they satisfy one of the essential consumer needs, and people seem willing to pay for the convenience created for them. The number of convenience stores increased from about 2 thousand in 1957 to 37.8 thousand in 1981. And their turnover in the same 1981 amounted to 14.1 billion dollars.9

In the field of retail trade in consumer goods, the so-called “food gas stations” have recently appeared. At a service station, a client can buy about a hundred consumer goods, such as bread, milk, cigarettes, coffee, soft drinks, paying for them with a credit card issued by an oil company.

Combined supermarkets, general supermarkets and shopping malls. At the other end of the retail spectrum, there are three types of stores that are larger than ordinary supermarkets. Combined supermarket is a variety of supermarket with an assortment expanded by including free-selling drugs and prescription drugs. The combined supermarket and pharmacy have a total sales area of ​​an average of about 5100 square meters. m. Three basic schemes of building such enterprises are used. On the Kroger chain, supermarkets and discounted drug stores called Super X are located side by side. Each of these establishments can operate as an independent trading enterprise. The Jewell Company prefers to have a store under one roof - with medicines at one end and groceries at the other, which makes it easier to access goods and creates additional convenience for consumers, and at the same time, a higher overall trading effect is achieved than when positioned side by side. At Borman stores in Detroit, drugs are displayed among foodstuffs to stimulate more combined purchases and create a higher overall trading effect.

In terms of the size of the retail space, supermarkets are larger than ordinary supermarkets (about 2800 sq. M instead of the usual 1700 sq. M) and strive to fully satisfy consumer needs for commonly purchased food and non-food products. General-purpose supermarkets often offer services such as laundry, dry cleaning, shoe repair, collection of checks, payment of bills, cheap buffet10. В универсамах широкого профиля именно из-за расширенного ассортимента цены зачастую на 5 - 6% выше, чем в обычных универсамах. Концепцию универсама широкого профиля начинают воспринимать многие ведущие магазинные сети. Например, фирма «Крогер» планирует построить 114 универсамов широкого профиля, каждый со средней торговой площадью порядка 2800 кв. m

Торговый комплекс превышает своими размерами даже универсамы широкого профиля, занимая торговую площадь от 7500 до 19 500 кв. м. Торговый комплекс (термин, не употребляющийся в США, но широко распространенный в Европе) включает в себя универсам, магазин сниженных цен и розничный склад-магазин. Его ассортимент выходит за пределы обычно покупаемых товаров и включает в себя мебель, тяжелые и легкие электробытовые приборы, одежду и множество других изделий. По сравнению с уровнем цен, обычных для универсамов широкого профиля, торговые комплексы практикуют цены со скидкой. Многие товары поступают в торговый комплекс в том же виде, как и на склад, прямо от производителей - упакованными в проволочные «корзины», и выкладываются на пятиярусные металлические стеллажи штабелями высотой 3,5 - 4,5 м. Пополнение запасов осуществляется с помощью вилочных погрузчиков, которые ездят по широким проходам торгового зала прямо в часы его работы. Основной принцип - массовая выкладка товара навалом с минимальными усилиями со стороны торгового персонала комплекса. Покупателям, согласным самостоятельно забрать из магазина тяжелые бытовые приборы и мебель, предоставляется скидка. Первый торговый комплекс был открыт в 1963 г. фирмой «Каррефур» в одном из пригородов Парижа и сразу же завоевал успех. Однако подлинный бум произошел в конце 60-х - начале 70-х годов в первую очередь во Франции и ФРГ, где сегодня действует уже несколько сотен торговых комплексов. Американские сети ведут себя осторожно, предпочитая открывать новые универсамы широкого профиля, хотя некоторые принципы деятельности торговых комплексов уже восприняты рядом торговых предприятий, таких, как магазины «Трежери» сети «Дж. К. Пенни» и магазины «Гранд базар» фирмы «Джуэл».

Розничные предприятия услуг. Остановимся вкратце на коммерческих предприятиях, «товарный ассортимент» которых состоит не из изделий, а из услуг. Розничные предприятия услуг - это гостиницы, мотели, банки, авиакомпании, колледжи, больницы, кинотеатры, теннисные клубы, кегельбаны, рестораны, ремонтные службы и различные заведения по оказанию личных услуг, такие, как парикмахерские и косметические салоны, химчистки и похоронные бюро. Число розничных предприятий услуг в США растет быстрее, чем число розничных торговцев товарами. Банки заняты поисками путей более эффективного распространения своих услуг, включай использование автоматических «кассиров» и организацию со временем оплаты счетов по телефону. Организации здравоохранения коренным образом пересматривают методы получения и оплаты медицинского обслуживания. Индустрия развлечений породил» комплекс «Дисней уорлд» и его подражателей. Фирма «X. энд Р. Блок» создала сеть держателей привилегий из бухгалтеров и специалистов по налогам, готовых помочь клиентам заплатить «дяде Сэму» как можно меньше.