An increasing concentration of retailers has led to producers becoming
more dependent.
or
As a result of the increasing concentration of retailers, producers bate become more dependent.
Cause
Effect
1 Retailers group together to negotiate purchases
producers have to reduce sales force
2 Retailers employ highly trained purchasers
producers have to employ highly trained salesmen
3 Retailers develop own generic brands
producers have to compete with retailers
4 Retailers develop sophisticated logistics
producers now deal with fewer delivery points
5 The development of self-service
products need to sell themselves
6 Failure to keep pace with competition
reduction in the number of retail outlets
7 Customers have direct contact with products
growing importance of merchandising
8 The spread of the automobile
retailers locate on the outskirts of town
Part II Marketing Unit 6 Retailing and merchandising
6.I.C
Vocabulary
Fill in the blanks
Fill in each blank with an appropriate term from the following list:
retail chains
central purchasing offices
shelf space
counter
signposting
check-out desk
aisles
display racks
trolley
DIY
1 are used at strategic points in order to diversify the presentation and stimulate sales.
2 It can be a long and expensive process to win in a hypermarket.
3 Marks and Spencer is one of Britain's largest.
4 Please pay at the.
5 At a supermarket you put your shopping in a.
6 You can find nails and screws in our section.
7 Producers no longer deal with individual retailers but with powerful.
8 An efficient system of in the main encourages the flow of customers.
9 Buying goods over the will soon be a thing of the past.
6.I.D
Listening
The layout of a supermarket
1 Listen to a supermarket manager describe the layout of his supermarket. Label the numbered areas on Figure 12.
2 In which way does the layout of this supermarket help to:
• optimise sales?
• simplify restocking the shelves?
• minimise cash desk irregularities?
Merchandising
Figure 12:
The layout of a supermarket
3 In pairs, choose one of the following rows or counters and list all the products you would expect to find there:
• cleaning products
• fish counter
• savoury snacks e dairy products
• crockery.
4 Discuss with a partner the following questions:
Is there a natural progression from one product to another in this supermarket? Would you make any changes in the layout?
5 What other factors are important to customers that might affect their loyalty to the shop?
Part II Marketing Unit 6 Retailing and merchandising
Section 2
Giving a presentation
6.2.A
Discussion
Guidelines for public speaking
I In small groups rank the following guidelines for speaking in public in order of importance. Be prepared to justify your choice and to offer any related advice.
1 Use short sentences.
2 Ask rhetorical questions.
3 Avoid negatives.
4 Present information visually.
5 Speak clearly and correctly.
6 Vary your rhythm.
7 Modulate your intonation.
8 Pause frequently.
9 Look at your audience.
10 Look interested.
11 Express yourself with your hands and face.
12 Don't dance; don't stand on one leg.
13 Refer to your notes as little as possible.
14 Don't cover your face.
15 Outline what you are going to say.
16 Summarise the main points.
17 Respect the time limit.
2 Widen your advice and construct a list of 'do's' and 'don't's' under the following headings:
• quantity of information
• structuring information
• timing
• repetition and emphasis
• examples
• visuals and handouts
• anticipating the needs of your audience
• establishing authority and credibility.
6.2.B
Presenting skills
Presenting a short talk
In small groups, present a short talk (maximum of ten minutes) based on the following study which you have carried out in advance.
The methodology is as follows:
1 Choose a brand from one of the following product families:
• confectionery
• condiments
• soap and cosmetics
• rice and pasta.
2 Visit a local supermarket, hypermarket or large store where your product is sold.
3 Fill in the following information sheet.
4 Prepare and present your short talk.
Giving a presentation
Information sheet for Exercise 6.2.B
Name of store
Size (m2):
Product (name of product plus short description):
Floor space for product family (m):
Total shelf space for product family (m):
Total shelf space for product (m):
Location within store:
Plan of shelves where product located:
Comments and observations:
Recommendations for improving sales of product:
Part II Marketing Unit 6 Retailing and merchandising
6.2.C
Analysis
Retailing trends
In small groups, study Figures 13 to 17. Choose one point of interest, develop it and present it to the class in a short talk (maximum three minutes). Remember to give your talk a title and to respect the guidelines on page 78.
Figure 13:
Sales figures for the biggest retailers in the US, Britain, France, Italy, Germany and Spain (1991)
Country
Retailer
£ billion
USA
Wall-Mart
18.7
Kmart
18.4
Sears Roebuck
18.3
American Stores
12.7
Kroger Co
11.6
JC Penney
9.4
Safeway
8.5
Dayton Hudson
8.4
A + P
6.5
May
5.8
France
Leclerc
10.0
Intermarché
9.6
Carrefour
7.6
Promodès
5.8
Sucres et Denrées
4.7
Casino
4.5
Auchan
4.0
Cora
3.5
Pinault
3.3
Système U
3.2
Germany
Metro
10.3
Rewe
9.2
Aldi
8.1
Asko-Schaper-Coop
5.3
Kandstadt
5.3
Tengelmann
5.1
Spar
4.3
Hertie
2.3
Lidl + Schwartz
2.0
Allkauf
1.8
Country
Retailer
£ billion
GB
Sainsbury
7.3
Marks and Spencer
5.5
Tesco
5.4
Argyll
4.1
Asda
3.5
Boots
3.4
Kingfisher
2.9
GUS
2.7
Sears
2.1
Kwik Save
1.5
Italy
Coop Italia
3.5
Vege
1.9
La Rinascente
1.9
Crai
1.7
Standa
1.7
Despar
1.6
Cid
1.5
Conad
1.4
A + O Selex
1.3
SME
1.2
Spain
Pryca
1.6
Continente
1.2
Alcampo
1.0
Mercadona
0.8
Hiperco
0.5
Giving a presentation
Figure 14:
European market share for Europe's top 10 retailers (1991)
Carrefour
F S
4.2%
Aldi
G N D F GB
3.9%
Ledere
F
3.8%
=
Intermarché
F
3.8%
=
Promodès
F S P G I
3.8%
Sainsbury
GB
2.9%
Rewe Leibrand
G
2.8%
Tengelmann
G
2.5%
Tesco
GB Ire
2.4%
Auchan
F S
2.3%
The following abbreviations have been used in this table:
F:
France
GB:
Great Britain
S:
Spain
G:
Germany
P:
Portugal
N:
Netherlands
I:
Italy
D:
Denmark
Ire:
Ireland
B:
Belgium
Figure 15:
Food retailers in the EC (1991)
Number of retail outlets: 514,000
Sales: £209 billion
Former West
Germany
Other countries
Netherland 4.5
Belgium 3.5
Denmark 2.5
Greece 1.8
Ireland 1.4
Portugal 1.0
Other countries
Portugal 8.3
Greece 5.0
Belgium 2.7
Netherland 1.7
Ireland 1.7
Denmark 1.0
Figure 16:
5,750
Hypermarket yield in £ per m2 for total European operations
Figure 17:
European market share for Europe's top 10 retailers
25.0%
26.8%
31.4%
Part II Marketing Unit 6 Retailing and merchandising
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