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The Eight Ways To Win In Retailing The Pentagon & The Triangle

B UILDING COMPETITIVE ADVANTAGE IN RETAILING The Eight Ways to Win! Lawrence J. Ring, Chancellor Professor & John S. Strong, CSX Professor of Finance & Economics Mason School of Business The College of William and Mary, Williamsburg, Virginia USA john.strong@mason.wm.edu (1)757-221-2864.

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The Eight Ways To Win In Retailing The Pentagon & The Triangle

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  1. BUILDING COMPETITIVE ADVANTAGE IN RETAILINGThe Eight Ways to Win!Lawrence J. Ring, Chancellor Professor&John S. Strong, CSX Professor of Finance & EconomicsMason School of BusinessThe College of William and Mary, Williamsburg, Virginia USAjohn.strong@mason.wm.edu (1)757-221-2864

  2. The Eight Ways To Win In Retailing The Pentagon & The Triangle PLACE SYSTEMS COMMUNICATION PRODUCT SUPPLIERS LOGISTICS PEOPLE VALUE

  3. Do we win? By how much? (a little or a lot?) Is it getting better or worse? (direction) Does anybody care? Is it sustainable? Five Key Questionsfor Each Pentagon Corner

  4. Pentagon Concepts 8 Ways 2 Win Size PLACE Location

  5. Notion of Inside Vs. Outside Draw 9 miles 6 miles 3 miles UPD = 1,000 persons/sq.m.

  6. Pentagon Concepts 8 Ways 2 Win Size PLACE Location Layout & Design

  7. Pentagon Concepts 8 Ways 2 Win PLACE Intensity PRODUCT Assortment

  8. Merchandise Intensity and Sales Sales/Sq Ft Inventory/Sq Ft

  9. Convenience Assortments Competitive Assortments Velocity Assortments Opportunistic Assortments Differentiated (Focused) Assortments Dominant (Power) Assortments A Strategic Approach to Inventory Management Old Game New Games

  10. Pentagon Concepts 8 Ways 2 Win PLACE Intensity PRODUCT Assortment Style & Fashion

  11. Fashion versus Value

  12. Pentagon Concepts 8 Ways 2 Win PLACE PRODUCT Price EDLPv Hi Lo VALUE Quality

  13. Price x Quality = Value

  14. Pentagon Concepts 8 Ways 2 Win PLACE PRODUCT Service Knowledge PEOPLE VALUE Climate

  15. Pentagon Concepts 8 Ways 2 Win PLACE COMMUNICATION Brand PRODUCT Positional Promotional VALUE PEOPLE

  16. SYSTEMS Triangle Concepts 8 Ways 2 Win Provide the mechanisms for controlling flows and operations ... Essential for managing categories item by item, store by store, market by market. LOGISTICS SUPPLIERS Physical movement of goods from vendors to stores ... A major frontier for improving asset management and reducing costs throughout the channels of distribution. Partners in marketing and distribution ... Effectiveness of the relationships determine both the rate and cost of sale, and the ability to implement some of the key triangle activities.

  17. Triangle Activities Quick Response and Automatic Replenishment • EDI Software [Electronic Data Interchange] • UPC/Barcode [Universal Product Code] • CL [Carton Labelling] • PSS [Planogram Software System] • Programmed Supply Relationships • Information Sharing • Perpetual Inventory and VMI • ECR [Efficient Consumer Response] • CPFR [Collaborative Planning, Forecasting, and Replenishment] • RFID • JIT and LTO Replacement of Labor by Technology • Front-End Scanning • Labor Scheduling Systems • Workforce Optimization • Electronic Shelf Stickers • Automated Warehouse/DC • Self-Scanning and Checkout • Automated Picking Lines • Store Security Systems • Environmental Controls Supply Chain and Logistics Merchandising and Space Management • Greening of the Supply Chain • Global is here to stay • RFID Continues to Grow • Focus on Risk Management • Supply Chain Vendor Consolidation • Voice Technology in Distribution Grows • SKU Data Capture • DPP [Direct Product Profitability] • Rapid Intensification and Delisting • Modularization in Store Design • Price Optimization Software

  18. New Triangle Technologies Open Systems • Rapid Technological Advances • Niche Vendors • Mergers & Acquisitions • Outside Data Client Server • End User Empowerment GUI [Graphical User Interfaces] • Walk Up & Use • Touch Screen Multimedia • Interactive Training [scheduled &JIT] • Customer Self-Service Sales/Marketing Kiosks • Services Delivered To The Home Data Manipulation Technology • Data Base Management Systems • On-Line Transaction Processing • Decision Support Systems [Inventory Flow] • Knowledge Processing [Promotions] Object Oriented Technologies • Wireless Technologies • RF ID [EAS & Multi-Bit] • Produce Identification

  19. The Eight Ways To Win In Retailing The Pentagon & The Triangle Size PLACE Location Layout & Design SYSTEMS Style & Fashion PRODUCT COMMUNICATION Intensity Positional Assortment Promotional Service SUPPLIERS LOGISTICS Knowledge Price PEOPLE Climate VALUE Quality

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