J & J Philippines -Case

One of the pricing strategies that was heavily used around the store, as well as almost all competitors, was odd-even pricing. It was difficult to find a product at any of the stores I visited to find a price that did not end in .99. The company was also using price lining, or selling a line of products of the same functionality with differing levels of quality at different price points. A good example was their line of speaker wire, which came in several

A department store (NAICS 45211) is a retail establishment that offers the customers a wide range of consumers goods in different product categories known as departments. This industry is engaged in selling apparel, appliances, home furniture, and diverse items such as paint, cosmetics, furniture, toys, and sporting goods. In this industry, merchandises are separated by departments. Major companies in this industry are Dillard’s, JCPenney, Macy’s and Sears. According to Hoovers.com the department store sales have been strongest in Europe, Japan and the US, also the US department stores comprises about 20 companies that operates about 3,250 stores with a combine revenue around $55 billion. The Global department store market is forecast to grow at an annual rate of 5.4% between 2015 and 2020. The profitability of the retail companies depends on the effective merchandising, marketing and high customer traffic (Hoover.com), also the department stores sales are highly seasonal increasing during holiday shopping. The department stores sales have been decline in the past decade due to competition with discount stores, specialty stores and the internet are making shopping so much easier. The industry is highly concentrate.

In early 1960 Dayton Department Store Company decides to launch a new discount chain store. They announced that “the new store, will combine the best of the fashion world with the best of the discount world, a quality store with quality merchandise at discount prices, and a discount supermarket… 75 departments in all.” (Target, 2016)

seven percent was sold for fresh milk purposes (fluid milk) and 63% for was making dairy products

Retail: The sale of goods to the public in relatively small quantities for use or consumption rather than for resale.

They were able to go to stores within stores that sold all sorts of brands.

Richard Ivey School of Business Foundation prohibits any form of reproduction. storage or transmission without its written

Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written

11. How did companies and stores expand? Which industries suffered at the expense of expanding retailers?

Most firms in the supermarket industry operate as retail outlets, comprising of supermarkets and discount stores. Most of these supermarkets operate on very little profit margins, and mostly get their ideas from their customers for their product developments. Supermarkets generate revenue by being determined to meet the needs of their customers’ lifestyle. By so doing they end up creating value for their products and making profits at the same time. Through bulk purchases, they also achieve their economies of scale at cheaper prices and then end up selling at cheaper prices to their customers.

Canada’s department stores experienced significant success despite entering the retail market much after stores in Great Britain, France and the United States. After being established in the 1880’s and 90’s, they experienced rapid growth and eventually surpassed major international stores such as Macys, Fields and Wanamaker in sales and store size. This national market domination was far more prominent than anywhere elsewhere in the world (44). Their quick fortune was driven by the innovative use of catalogues and the opening of numerous branches during their heyday in the early 1900’s. This put primarily Eaton’s, but also Simpson’s and HBC, in the spotlight as globally recognized Canadian department stores. These great retail stores had a momentous effect on the Canadian

each channel and the deliveries to each channel. You find that the retail channel accounts for 70%

Years earlier, Sol Price had experimented with discount retailing at a San Diego store called Fed-Mart. Jim Sinegal got his start in retailing there at the age of 18, loading mattresses for $1.25 an hour while attending San Diego Community College. When Sol Price sold Fed-Mart, Sinegal left with Price to help him start the San Diego Price Club store; within a few years, Sol Price’s Price Club emerged as the unchallenged leader in member warehouse retailing, with stores operating primarily on the West Coast. Although he originally conceived Price Club as a place where small local businesses could obtain needed merchandise at economical prices, Sol Price soon concluded that his fledgling operation could achieve far greater sales volumes and gain buying clout with suppliers by also granting membership to individuals—a conclusion that launched the deepdiscount warehouse club industry on a steep growth curve. When Sinegal was 26, Sol Price made him the manager of the original San Diego store, which had become unprofitable. Price saw that Sinegal had a special knack for discount retailing and for spotting what a store was doing wrong (usually either not being in the right merchandise categories or not selling items at the right price points)—the very things that Sol Price was good at and that were at the root of the Price Club’s growing success in

Distribution: Specialized distributors that can increase awareness of target audience at a lower variable cost than generalist wholesaler; specialized stores are significant influencers of target customer’s behaviors

each channel and the deliveries to each channel. You find that the retail channel accounts for 70%