The five types of gaps that exist between the buyer and the seller are namely: space gap, time gap, information gap, ownership gap and value gap (Cant & Van Heerden, 2010).
The space gap can be described as the actual physical distance between the manufacturer and consumer (Cant & Van Heerden, 2010). Woolworths successfully bridges the space gap by means of store numbers and locations. Most retailers, typically approach production houses, like Albany or Nestle to buy their products and re-sell them, however, Woolworths is a brand of producer in itself. If consumers seek out their goods and services then no middleman is required; the company caters for easy customer access. As a producer of goods (not a retailer), Woolworths transports their retail products from their production/distribution warehouses, via road (trucking), to bridge the existing geographical gap.
The time gap comprises of seasonal or perishable goods, Woolworths
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• The primary marketing activity: the primary marketing activity is transport (Cant & Van Heerden, 2010).The purpose of this is to deliver the product to the consumer in the fastest and safest way (Cant & Van Heerden, 2010).Woolworths transport their retail products from their production/distribution warehouses, via road (trucking), to bridge the existing geographical gap. Woolworths also use reusable plastic lugs to transport their product to and from stores, rather than cardboard boxes , which are recyclable and reduce consumption of natural paper-based resources; and also use transit packaging that are used to protect clothes during transport, as well as hangers being collected by stores and sent back to the distribution centre’s for recycling. Woolworths Primary Fre...
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...customers in both these areas and is well placed to benefit from the growth in the number and spend of these customers.
Competitors: Woolworths is a perfect competition, it has unlimited competitors and its products are homogenous; Woolworth’s biggest competitors are Edgar’s on clothing and pick n pay on food. Foreign retailers such as Walmart, Zara and Top Shop are finding South Africa an attractive investment opportunity, with a relatively high return and a gateway to the rest of Africa. Competition is expected to intensify, with more global entrants delivering more fashion relevance and choice at reasonable values. Local retailers all have sourcing and speed-to-market initiatives to balance margin and customer demand. Woolworths has shifted and consolidated a significant percentage of its sourcing offshore, but still remains one of the largest local procurers.
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
...will have a better chance of bringing in new long-term customers because they have presented the information fairly and honestly.
b. They meet the needs of their target market by building their stores in closer proximity.
The apparel industry is among the most volatile sectors in the market today. Subject to overnight changes in trends and fashion, the industry leaders must be accurate with their predictions and quick to accommodate changes. Because of these fluctuations, it is very hard to assign a competitive advantage to one company over another. While Jones Apparel Group seems to have a comparative advantage in profitability and leverage, Liz Claiborne has been historically more effective at generating revenue from its assets. While Liz is surging to eclipse Jones’ ROE numbers as of late, Jones Apparel Group holds a historical comparative advantage in return on equity and overall financial health.
The main rivals among the merchandising companies are Wal-Mart, Kohls, Family Dollar and Target among many more. Wal-Mart and Target are their main rivals, this is because Wal-Mart is known for their niche as having the lowest prices and Target is known for their fashions and home furnishings both of these items Kmart tries to compete against. Also buyers see Kmart as a discount store which doesn¡¦t stand when other competitors have lower prices. Kmart¡¦s customer service and available products are two other items that Kmart fails to be a strong competitor in against these rivals. Therefore, the rivalry among the merchandising stores is a strong competitive force in this market. Another external force that affects the market is substitutes.
The competitive rivalry is high as the industry is comprises of many clothing retailers. For instance, ASDA’s brands George and Matalan, which provide not only quality garments but also sell them in a low price. Primark may lose a significant number of customers due to the intense
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
One of Wal-Mart’s main competitors would be Franklin, which is currently struggling at this time. (I better get my Wal-Mart set up quick.) Many of the Australian retailers such as Aldi, Tesco, and Ahold, who previously relied on specials, would be forced to reduce their daily prices to compete with Wal-Mart’s everyday low price strategy. Low-Prices are the foundation of Wal-Mart’s ideas and strategy and could surely beat out Australia’s smaller end retailers. Another are in which Wal-Mart would prosper is with tourists,. Wal-Mart is well known and trusted , and in high tourism cities such as Sydney, travelers would be more likely to shop at a place they know and trust. Its inevitable that while on vacation for example, people forget to pack or run out of necessities such as toothpaste, shampoo, and deodorant, etc. Why not go to Wal-Mart and get all these things and pick up the few extra goodies you didn’t realize you needed.
Deriving most of their customer basis from Low, Middle and fixed income earners. With under-serviced rural and urban neighbourhoods being the bench mark of their locations.
The Frito-Lay product distribution location strategy is to sell in grocery stores, convenience stores and gas stations. Frito-Lay’s distribution strategy is from manufacturer to retailer and from retailer to customer, thus the retailers offer the company a location to sell their products and allows for intensive distribution ("P7distributioncasestudy - Fritolay"). Frito-Lay products are sold in the snacks area. Frito-Lay aims local customers in the countries in which they distribute their packed
This report contains dividing the key processes of Woolworths Supermarkets division and identifying and measuring and prioritizing the key risks to each process of the business. As a retailer Woolworths key process were identified as purchase and selling and distribution. Each risked faced by the organization at each phase of operations has been defined and suitable measures to mitigate those risks has been suggested under the heading “Response”. Risks with high Impact has been given priority in the listing and the compliance or the standards that is to follow in response is specified under the Benchmark Column against the risks.
The fashion industry has changed over a period of time due to the growth of boundaries. This is attributed to the varying dynamics of the industry; declining mass production, altered structural aspects in the supply chain, need for more affordable cost and quality. This shows that fashion retailers are able to acquire a competitive power in the market through making sure through which they get their products to the market for the consumers (McAfee, Dessain, & Sjoman, 2007). Consumers are hence able to get product easy and of high quality. Fast fashion has been able to meet the needs of consumers while trying to acquire major merchandize turnover to retailers than local rivals. The Zara case study reported sales $8.15 billion to its competitors Hennes & Mauritz 0f $7.87 billion (Dutta, 2002). This was the consumer’s one stop shop due to the quality products offered both globally and locally.
Woolworths has distribution centres in different geographical places in Australia. Products manufactured from different suppliers driven into distribution centre in the specified state or province. According to the ordering data, these products are assembled and distributed from distribution centres and moved forward to the prescribed retail stores.
Wal-Mart started out as a five and dime store by Sam Walton back in the 1950’s in Rogers, Arkansas. From those humble beginnings, Wal-Mart is now the world’s largest corporation passing the likes of U.S. Steel & GM with over $256 Billion in sales for one year announced at an annual stockholders meeting. What makes Wal-Mart so successful? The rise of technology and the explosion of the global economy, coupled with the effort of keeping prices as low as possible has propelled the conglomerate into becoming the world leader in logistics. They were one of the first to understand the power of the barcode. They also shifted the industry from ‘Push’ to ‘Pull’ production, meaning retailers would decide what and how much a manufacturer should produce. Due to the power possessed by Wal-Mart, other companies and suppliers have set up satellite offices around their corporate headquarters in Bentonville, Arkansas.
In other words, their purchasing power is more focused on their need, health, and efficiency and cost effective. It is with this in mind, this writer would say that there lies a possibility for a company to cater to both its best interest and that of the consumer conjointly. Without customers, there would not be any company; therefore, a secure partnership between the company and customers would be more beneficial for both parties, in that the customers would be loyal to the company based on if they feel valued and if their needs are being met by the company. The company can foster this partnership by building a strong customer relationship management – where they have a customer-centric model in which they learn ways to enhance their product and service through feedback received from the customers. Here, both interests of the company and the customer will be