Retail Buying

3298 WordsMar 6, 201414 Pages
Harper Adams University College And Beijing University of Agriculture Food Quality and Retail Management Module Title: Retail Buying Assignment Title: The application of modern management concepts to Retail Buying and their use in developing a Competitive Advantage. Module Tutor: Richard Taylor HAUCID: 11221900 Year 3 Date: 10th December 2013 Word Count: 2485 without references Content Summary In today’s highly competitive markets retailers evaluate all opportunities and possibilities to present the right product at the right price with the right promotional support in the right place. Category Management (CM), Efficient Consumer Response (ECR) and Consumer Relationship Management (CRM) are concepts…show more content…
In addition, CM also enables the organization to respond better to their customers’ demands, desires and aspirations, and link these to supply-chain possibilities. For example, it could increase retailer’s benefits and profits because CM can satisfy consumer needs due to the mixing of brands that creates more choices compared with traditional brand management. Retailers can also acquire large amounts of data which enables them to evaluate new products in order to create customer value and enhance competitiveness for retailers. On the supply side, suppliers can find out more about consumers’ buying habits and obtain material for new products developed through brand evaluation. However, the main benefit is that CM strategy improves the collaboration in the relationship between retailer and supplier. Based on data sharing, retailer and supplier can focus on the target customer and satisfy their need better in order to obtain greater profits (O 'Brien, 2009). 2.3.2 Limitations of CM Despite the obvious benefits, there are also barriers to successful implementation of CM; these include large-scale re-organization, cost and lack of consideration for the consumer experience (Varley, 2001). A further limitation of CM is the threat to small suppliers. The practice of setting category captains in order to improve the entire product category’s performance may run the risk of putting larger suppliers in a position where they may abuse their power
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