4ps of 759 Store

There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JB Hi-Fi and Harvey Norman both of the companies belong to retail industry that mainly focus on selling of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers. For instance, the same LG refrigerator costing $2500 at Harvey Norman – is available to American consumers from Amazon for just under US$1500. (Keane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I just wanted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement

turnover, which is made possible by low prices and limited product selection. This business model is appealing for them and has many benefits. Firstly, by setting up the business approach to rapidly

Macy’s Inc. ratio was .02 and JC Penny Co. Inc. was .00. To improve this ratio, both companies need to improve on their net income. If JC Penny doesn’t continue to improve its net income, then this ratio will begin to lean negative, signaling the company is losing money for every dollar is sales and may not be good investment. Macy’s Inc. still has room before it hits .00, however, if their net income continues to fall, they soon too may have the same profit margin ratio as JC Penny Co. Inc. Shutting down unsatisfactory stores – as each company is doing – may help improve this ratio as well. With less funding going to these stores, such as salary’s, rent, and wasted inventory, they will be able to improve their net income value.

Low product differentiation and economies of scale: There isn’t much product differentiation at play in the retail industry as there are well known manufacturers whose products are offered for sale, which leaves price to compete on. Current well established retailers with thousands of stores enjoy the economies of scale to control their cost that a new entrant might not be able to replicate after immediately entering the industry.

If the Japanese consumer didn 't like products offered in that fashion, then the store would not

The 10% price cut for the mass merchandiser could hurt their reputation with all of their current suppliers. Cutting the price 10% for one type of retail outlet will cause all other stores to want the same treatment. This would be a disruptive change to Fe’nix’s business and their overall profit.

Since the company is entering a new market with an old product they don’t have took much price freed. Their current retailers relatively control their current price that they can sell online. A combination of price penetration and status quo pricing would be the best pricing strategy for A Couple of Squares, because looking at their current price; it is tough to tell that they are in the same market as Eleni’s New York cookies. They could double their retail price and still be at a penetrating pricing when compared to their top

The main objective of a low-cost provider is to achieve a lower overall cost than its main competitors and rivals by means of underpricing (Gamble, 93). This is also known as price advantage in order to attract customers. Companies that use this strategy will achieve high sales volumes while striving for low cost margins. For example, Wal-Mart is known to have considerable low prices that attract a broad spectrum of customers. People who shop at Wal-Mart are familiar with their “Rollback Prices” which focus on the idea of everyday low prices that are sold at a far cheaper rate than its main competitors. They are able to sustain these prices because of a successful supply chain market. Many of the products they sell are from foreign and domestic markets that focus on a lower price demand. This allows Wal-Mart to sell their products at lower prices at a high volume. Basically, they buy a huge quantity in volume in order to achieve a lower price to gain a higher profit.

759 STORE established in year 2010, is the retail business of the CEC Group [1] that was set up with reference to the consumer culture of living areas in Japan. It mainly sells snacks, beverages, food and other packaged food and cosmetics which imported from Japan and other regions of the world. In the year, 759 STORE gradually introduced characteristic domestic goods including kitchen supplies and household goods mainly from Japan. Running with high inventory turnover rate, 759 STORE aimed to gJuly 30, 20157/30/2015ive desirable service to vast local Hong Kong residents, providing a relaxing shopping environment with wide range of products for 759 store’s customers to choose.

The last alternative could be to create a better marketing about their products, to compare their brand with the competition so the market can understand that the differences between prices is because of the good quality, the brand name, the knowledge, and that they are the only ones, the expert ones on those kind of products.

The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the

It is also important to note that Top Shop offers products at usually a very low price even as low as three times comparative to the competitors. But because the customers get access to the latest fashion only here, the revenues at Top Shop are only positively affected. More so,

Mydin offers varieties of similar range products as their competitors where they are still able to undercut prices by reasonable percentages. Mydin’s pricing strategy is low price strategy where this strategy emphasizes on low price products as well as maintaining the quality of their products. It also focuses on reducing the cost from their operation to produce lower price products yet good quality. Besides that, Mydin used low price strategy to attract lower and medium income group in across Malaysia. Therefore, lower and medium income families are willing to purchase at lower price and high quality products at Mydin. Nevertheless, Mydin able to sustain its customers for long period of time and it will increase customer loyalty through their low price strategy. In addition, this low price strategy may attract small wholesalers and petty traders in getting cheaper supplies from Mydin. “It has also contributed to the business expansion and is reflected by an increase in number of wholesalers and petty traders who have registered as their frequent buyers (Armum, N.D)”. Furthermore, Mydin also emphasize in bulk buying and bulk selling to enjoy lower prices. Thus, Mydin selling in bulk enable to cut cost as well as sustains lower price for its wholesaler, bulk purchasers and end user. Therefore, Mydin was encouraging people to buy in bulk in order to save more. In addition, Mydin purchase raw materials in bulk in order to save more cost. “Mydin sources merchandise both locally and from other countries including Bangladesh, China, France, Hong Kong, India, Indonesia and some more” (Armum,

According to this case, and concerning about the strategy that Best Buy has created, retailers can similarly create a retailer-led product strategy to leverage their customer knowledge for product differentiation and to understand what the needs of the customers are; they must discover what satisfies the customer and what not. In addition, the retailer can seek for news partnerships, new stores, new countries and new categories and services in order to increase their net sales and their share market. It’s very important invest in marketing study aiming to discover what the other companies are doing. Besides, with the time, the smaller retailer can increase significantly even more than the

In future maintain 5% of stores as mini-supermarkets in her development target. 759 STORE did its best to conduct “lower margin with high turnover” policy. Through this 3 years effort on active developing direct import model, it was grateful that 759 STORE had not only built up supplies with food distributors and manufacturers of Japan and other countries, but also a smooth import operation with substantial procurement scale. To avoid any conflict on product price setting with traditional market players, the Group would take further step to increase the proportion of direct import and much fully exclude the supply of local suppliers who were difficult to have price negotiation with and did not allow 759 STORE to set product prices independently. Exploring new products in all angles and without limitation, our procurement team continued to source wide varieties of import product for Hong Kong residents’ enjoyment, where around 80% of them was food products and 20% of them was household and other products, hoping that our