Retail and omnichannel marketing summary
Lecture 1: Introduction to Retail & Omnichannel Marketing (Noordhoff)
Strategic and tactical retailing are the topics.
Explain decisions, literature, solve cases,
practice, communicate in a professional
manner and use data to support.
Channel choice, where do we come across
out customers. App, website of physical
store and combine.
Consumer decision making, what does it
look like, is queuing a problem, pay more
with quicker alternative? Etc.
Retail mix decisions and green choice
(sustainability).
This year lesser literature, 16 instead of 24
articles. Chapters from book?
Article: different factors that can affect
whether companies can benefit from online
or offline integration or that there is more
competition when the two come together?
Response by firms and responses by
consumers, all tap into the factors from the
article.
Retail is the sale of different goods and
services to customers with the intention to
make a profit. Always interacting with a
customer and its always profit first.
,19th century, first real signs of retail. Time where we used
machines to make physical work easier. Willem Albert was
big in potatoes, set up the factory, realizes it could be used
for many applications. Diversify, first international
company, one of the godfathers of internationalization and
industrializations. Second, Porenbeurs, grain traded there
(vismarkt). Grain could grow here well, also export via sea.
Rise to money making and retailing back in the days. Third,
straw cardboard, sustainable product, made out of stamps
of grain. Used to package the textiles made here.
During this time first retail chain, also first cashier. De
Gruyter it was.
Introduction first department store, winkel van sinkel, sold
anything.. Also first confection store, C&A.
Then industrial revolution with mass production. Bike,
lemonade, tobacco and confection. Mass production, before
people worked in homes, now scale up to mass in the
factory. Also more clothes available for everyone for
example.
During this time, we saw the first upscale
warehouse. Hirsch, moved from BE to NL to start.
Then the V&D also, had their own store both,
merged it and started the first in Amsterdam.
Verkade, biscuits. First franchise store, buy part of
the store, sell, and share in revenues (start stores
then). Developing loyalty programs they did very
good, connecting with the customer. Still most
important thing, to relate to the customer. Hema,
stands for unity prices. Everything sold would cost 25 ct. or 50 ct. Know what it would cost when
entering. Merchandise was accessible.
,Then we had the agrarian, industrial, now the services
revolution. Goods to mass, then top off with services.
Many self service concepts, visible in these industries. In
travelling, entertainment, food and restaurants.
Retail developments, self services concepts and data
marketing: V&D discovered custom media, advertisements
that show how to use the products, they discovered the
magazine as a loyalty tool. Used for inspiration, increase
the basket, idea what to cook (AH), made easy to go in and
out of the store. Also emergence of vending machines like
FEBO. AH adopting baskets (US approach). Dirk, travel
agency, if we have those picture albums and have the
magazine, then we want something else. For every amount
then voucher and when spent so much you can go on a
cheaper holiday. Kruidvat was born in 75, cheap and
surprising. Bakker Bart, ready made sandwiches and Praxis
with do it yourself stores.
Then, information an network revolution. Online is
competitor to offline, only one of the two will exist (Bezos).
Entertainment part Netflix for example. Also Fashion,
online and offline merged quite well, great online and still
enough physical stores. Music also taken over, travelling
agencies as well.
Pinduoduo, Chinese platform that brings e commerce and
social commerce together. Bezos way: working direct with
manufacturer as the customer. More people interested in
the product, the better the manufacturer knows how much
is needed and price down. Also waste down.
Watson benefit from the 2 channels and strengthen.
Spend more, more loyal when the two come together.
Online and offline integration: Barrel wine for
instance, taste and then online next time. Seamless
experience specially in fashion. More examples on the
slide.
, one characteristic is retail environment to ecosystem. NL: we
have multiple ones. China more one platform with WeChat.
Integrate physical with digital: Alibaba, 36 ecosystem that
makes sure the customer has good experience.
Wrap up: tail of retail, new technologies gives birth to
economic revolutions and this shifts the value. Everything
that happened in history happens now still, integrate it all for
smooth customer journey. Figure out how to do this.
